danny came on in january and had to pull himself up to speed. many of you have seen his bullet points to all the offices. he did an outstanding job breaking down a complex plan in a way everyone can understand. i want to recognize all of the many hours that he's put in over the last couple of weekends and nights to get this ready for today. but, colleagues, i really do appreciate this discussion. i think it's a very important discussion to have. it actually makes me very excited that we can have a conversation around the planning of our city, which impacts our economy and enforce our growth. as i asked before, i would love your support on the plan today. thank you. >> thank you, supervisor. unless there are any other comments, madam clerk, let's take the roll. >> on items 19 through 22, supervisor kim? kim aye. supervisor mar? mar aye. supervisor tang? tang aye. supervisor wiener? wiener no. supervisor yee? yee aye. supervisor avalos? avalos aye. supervisor breed? breed aye.

supervisor campos? campos aye. supervisor chiu? chiu aye. supervisor cohen? cohen aye. supervisor farrell? farrell aye. there are 10 ayes and one no. >> the ordinance is passed on first read. colleagues, we have one 2:30 special accommodation. i'd like to acknowledge supervisor mar. >> thank you, president chiu. colleagues, i wanted to ask if an incredible teacher parent organization could come up and join us up here at the podium. we have the principal of argon elementary school [speaker not understood] and noah is here i believe and a number of great parent leaders from argon elementary school on 18th avenue and cabrillo in the richmond district. i say it's an incredible pto, parent teacher organization, because they've been dreaming not only their school, but their whole neighborhood. not only educating the students and parents, but all of our residents in the richmond

district. and about two years ago i stood with our dpw director mohammed nuru and neighbors and parents as we announced in a major greater green project in the city that was hopefully a model for other neighborhoods as well as argon parents and community transformed ugly concrete into something really beautiful and a great teaching tool as well. there is an edible garden there now, a great mural, and they haven't stopped there. they've continued to green their school and the neighborhood is involved people in this process. most specifically the greater green program enabled parents, teachers and students to transform their neighborhood into a more environmentally conscious community and school. the progress also continues with a community challenge grant that they were awarded and working with the department of public works to install a

lively garden on cabrillo street filled with native plants for everyone to enjoy. they have an edible school yard. they are working -- i was playing on their recent play structure. grown ups aren't supposed to do that, but i had the honor of joining a few kids. i know as kids learn to play safer on the structure, it's really an important learning process as well. they also have a great project -- oh, i forgot to mention that the greater green project removed another part of it will remove a portion of their blacktop which is concrete from their school's yard and replace it with plants and solar panels for the 438 students to better understand green energy and clean energy in san francisco and its role in sustainable future for our city and our society. furthermore, the organization is now working with the presida

eyes muralist in bernal heights who helped beautify our city with murals all over the city and public art as well. and the parents and students and community are creating a new mural on the campus that will give the history the natural and hopefully sustainable history of the richmond district and our city. it's really incredible, it includes small businesses to some of our big icons from the richmond district all over, but especially a history and a beautiful telling of the story by third graders like noah and other students and all the parents that nurture them as well. really, the mural will help exemplify the rich culture and diversity of the richmond district and our city. with that said, i just wanted to now recognize argon elementary school parent teacher organizations as an excellent symbol of greening our school yards, connecting with our neighborhood, our city departments, and really promoting a model of greening

for our entire city. so, i'll introduce tina [speaker not understood] who is one of the leaders of the parents who is here with her son noah and she shares the green argon school committee. ~ chairs also the principal of argon and the parents here with them. so, tina? can we get the microphone? >> it's live. >> it's live? okay. well, supervisor eric mar and esteemed members of the board of supervisors, on behalf of all of us at argon elementary school, i want to fares our deepest appreciation for the honor to come before you today. i remember nine years ago the last time i was in this room testifying, i was pregnant with noah, and he's here with me again today to hear the story of how we got to this place. about four years ago when noah was admitted to argon, the school yard was a vast expanse of asphalt. i envisioned something

different for noah and thinks classmates. a garden with earth worms, bees and poppies. at the time the state of california and san francisco unified were facing the largest budget cuts in their history. so, how were we going to get our garden? it took two years of intensive community organizing, reaching out to our staff and parent community, and seeking allies around the city to finally get a major break. argon was invited to become a democrat on -- demonstration site for the city. we received our first community challenge grant. 3-1/2 years later we are part of an incredible community that has worked tremendously hard to raise money from grants and put in countless volunteer hours to transform our public school. together we built the california native sidewalk garden, an edible vegetable garden and just broke ground for a small fruit orchard and

peace garden. at the corners of our school yard. ~ argon kids are no longer apprehensive of pulling a stalk of broccoli and00 muching on it or watching a bee pollinating, but rather are inspired by what they're learning in their outside classroom. the san francisco community challenge grant program has made it possible for us to exceed our expectations in just a few short years, and this april my son noah and his sister leila will be joined by argon's 4 36 other students to create a community mural that celebrates not only the history ~, but also the very richness of our rich mopped community, our neighborhood that we call home. we're deeply indebted to our many, many allies and partners, including supervisor mar who believes the public school program deserves not only

quality education in the classroom, but an enriching learning and play environment that inspires them every day. thank you very much. and i'd now like to introduce an inspiring leader and a partner from our school principal, tammy [speaker not understood]. >> supervisor mar and the san francisco board of supervisors, [speaker not understood] argon elementary, it is a tremendous honor to accept your commendation. the vision of creating outdoor learning spaces, our staff's commitment to project-based learning, along with the city's generous support of our school made these projects possible. visiting argon elementary, you discover that our students are not only learning within the classroom setting, but they are connecting and applying new learning outside the classroom in our gardens, and with the mural design process. math measurement lessons begin

to make sense when students discuss volume and length when creating and caring for container gardens, with new beet and chard seedling. they are moved to write poetry as they use all five senses as they experience their garden spaces. studying the life cycle of local insects increases environmental stewardship as students seek to protect these little creatures. and san francisco history takes on new meaning when designing a mural that highlights both city and neighborhood significance, significance protecting popular locales such as sutro, green apple books and, of course, joe's ice cream shop. ultimately our gardens and mural inspired our students a sense of pride in our school and the learning it represents. it is this pride that extends to the greater community and

truly celebrates the unique and meaningful opportunities and experiences a public school offers. we are so grateful for your support of argon. (applause) >> thank you, supervisor mar. colleagues, why don't we go to our 3:00 p.m. special item around cpmc and let's start first by calling item number 30 from the adoption calendar.

>> time 30 is a motion directing the board of supervisors to hold a public hearing on march 12, 2013 at 3:00 p.m. with the board sitting as a committee of the whole to consider adopting a resolution endorsing a term sheet for revisions to a proposed development agreement for the long range development plan for the california pacific medical center. >> colleagues, this is the item simply to allow us to sit at 3:00 p.m. to consider this as a committee of the whole. let me ask if there are any members of the public that wish to speak with regards to simply the motion of whether we should sit. okay. seeing none, public comment is closed. madam clerk, if you could call the roll on this motion. >> on item 30, supervisor kim? kim aye. supervisor mar? mar aye. supervisor tang? tang aye. supervisor wiener? wiener aye. supervisor yee? yee aye. supervisor avalos? avalos aye. supervisor breed? >> what are we -- >> on item 30, a motion to sit as a committee of the whole. breed aye.

supervisor campos in campos aye. supervisor chiu? chiu aye. supervisor cohen? cohen aye. supervisor farrell? farrell aye. there are 11 ayes. >> motion passes. and with that, madam clerk, could you call the 3:00 p.m. special order items 23, 24. >> item 23 and 24 are the board of supervisors sitting as a committee of the whole for a hearing of persons interested in the proposed resolution endorsing a term sheet and revisions to the proposed development agreement with the california pacific medical center long range development plan, including the new hospital at the cathedral hill and st. luke's campuses with any final development agreement subject to the approval of the planning commission's municipal transportation agency and the board of supervisors. item 24 is a resolution endorsing a term sheet for revisions to a proposed development agreement with the california pacific medical center for the long-range development plan. >> thank you, madam clerk. colleagues, this is what i would propose as far as the

agenda for this hearing. first if there are any colleagues who would like any -- like to make opening remarks. we'd like to entertain that and then we will ask ken rich from the administration to give the staff presentation on the term sheet. we will then also hear briefly part from project sponsor from warren brenner and there will be an opportunity, colleagues, if you have questions to city staff on this topic. at that time we will then take public comment, and then we will proceed with disposing of the item that we have in front of us. so, unless there are any questions, the only thing i'd like to state at the outset, colleagues, last week, supervisors farrell campos and i described her during roll call some of the high-level points of this deal, but we look forward to hearing much more fuller explanation from ken rich. ~ i just want to state again a hearty thanks for everyone who got us to where we are today. someone who i do not think is with us today, but who is incredibly responsible for where we got was the mediator,

lou gerardo who very a adroitly worked with all of us to move us forward. again, want to thank supervisors farrell and campos for all the time they put in, ken rich has spent an incredible amount of time over the last few years as will be apparent from his presentation. also want to thank dr. bronner, my cohort from cpmc center. i also want to take a moment to acknowledge the coalitions that came together under san franciscans for housing, health care, jobs and justice. there were three coalitions that joined together representing over 50 community organizations and unions. and i want to take a moment just to thank kevin walsh from chu-chu, [speaker not understood], [speaker not understood] from bernal heights neighborhood center, emilie lee from cpa, james tracy why from community housing partnership, paul kumar from nuhw, bob prentiss who was a member of the blue ribbon panel, [speaker

not understood] former health commissioner and also another member of the blue ribbon panel, ken barnes, st. lukes doctor, also blue ribbon panel. professor hair aston at the [speaker not understood]. [speaker not understood] from cna. as well as michael lion from gray pantherses. and i mention them in part because all of you ~ were really truly instrumental in the last few years at helping us understand issues from the community perspective. i probably missed some names and i apologize for that, but i just want to give my deep felt thanks to all of you in the community who worked hard to get us to where we are today. we still, regardless of what happens today, have a long ways to go and the conversations will continue. but i just wanted to acknowledge folks up at the start. and with that, supervisor campos. >> thank you, mr. president. i want to echo your remarks around the community of partners that have been working on this for so many years. and, you know, there have been so many people that have been

involved and i would be remiss if i didn't mention also the work of former colleagues including supervisor now assembly member tom ammiano who worked very hard to protect st. lukes as well as supervisor machaela alioto-pier. i know we're going to hear from folk today, but i do think this is in many respects a victory to this community that organized around this issue. and i also want to take this opportunity to thank cpmc and i know we're going to hear from them. but the reality is there are many people at cpmc including dr. bronner and his team who helped to make this happen and i especially want to acknowledge my co-help who i think was really instrumental in this process. i don't think that we'd be here without his participation. the last thing that i would say is, you know, as was noted by the three of us who worked on

this project with the mayor's office, i'm very supportive of this, of this deal and i think it's a very good deal for the city and county of san francisco. but i also think that separate and apart from that, that it's really important for all of us collectively to come together and the fact remains that there are still some outstanding issues. and i really encourage the parties to make sure that those issues are resolved. you know, we cannot, i think, sit here and be completely happy and thrilled about where we are unless we know that we're taking care of everyone who is a part of this system. and that includes the workers. and i especially want to acknowledge the work of california nurses association because they are largely responsible like all the workers at cpmc for the success of this system. and i want to make sure of that, and i'm hopeful that at some point there will be a resolution of those issues. i think that all of us as a city will benefit once that

resolution takes place. thank you. >> supervisor farrell. >> thank you, president chiu. and just to follow-up in echoing your comments, i see the cpmc folks here, particularly dr. bronner and my michael hill, thank you guys so much for your support. we can't talk enough about lou girard owe who helped this project get to where we are today. i think a person who will take a lot of time on the mic now, particularly want to call ken rich. colleagues, you need to know ken was with us every step of the way, every hour of the way when we were working on this project. kudos to you, ken, thank you for your hard work on this issue and look forward to the dialogue here. >> so, colleagues, unless there are any opening comments, let me ask ken rich who i know has circulated a written presentation. if you could walk through the presentation. >> good afternoon, supervisors. ~ i'm ken rich with the office of economic and work force development. i'm very happy to be here today

and pretty sure it will go better than the last time. we are here to present to you the results of several months of intense, but ultimately fruitful discussions that took place between supervisors chiu, campos and farrell, the mayor's office and mike co-hill and [speaker not understood] of cpmc. they were moderate bid lou gerardo. without him i don't think we would be here today as has already been acknowledged. these discussions youthv ma thely resulted in a new physical proposal [ultimately dash~ and a new term sheet both of which will be presented here today. as you know this project was heard in the middle of this year as indicated on this slide. ~ here are the relevant physical dimensions describing the previous project as compared to the currently proposed project. you can see the new proposed ka shoe doctoral hill hospital is significantly reduced in number of beds and overall building size. st. luke's hospital is now

proposed at 50% larger, 120 beds instead of 80 beds. per the agreement, cpmc may build space in the new cathedral hill hospital for an additional 30 beds bringing it up to 304, but may not put these into use until st. luke's hospital is at 75% utilization of beds. so, that is the overall change in the physical dimensions of the project. just to follow-up on that, the new proposed project reflects a smaller city-wide bed total for cpmc in the future, 524 under the new proposal as compared with 76 5 under the old proposal. note that both of these numbers include 130-bed dailies as exist now and will continue to exist. this is a good point -- at this point to introduce warren bronner from cpmc who will talk briefly about cpmc's revised plan of operation within the city after he does that, i'll

come back and run through the rest of the term sheet. >> thanks, ken. good to be back, president chiu, members of the board. i apologize i have to wear my glasses because this is far away. as you all know, after several months of rather intense negotiations we're here today to present an agreement we hope will ensure quality health care for san francisco's future. as we move forward today, we are moving closer to opening two new hospitals with 400 earthquake-safe beds. cpmc is proud of the quality health care we've been delivering to san franciscans for the past 150 years, and we're delighted that this plan puts us on the path for another 150 years. all the same reasons apply today as to why building two new earthquake-safe hospitals is so important as they have for several years. first, of course, it's required

by state law, equally important it's the right thing for us to do, to build and prepare our hospitals now. in the interim, san francisco has not moved magically further away from the san andreas or hayward faults. in the next big earthquake is really another question of if, but a question of when. second, while the health care landscape changes consistently, those coming in the next few years will be especially profound. for example, the affordable care act means 4 million more californians will have access to insurance through the california health benefits exchange and the expansion of the medi-cal program. in addition, the future of health care must emphasize prevention, outpatient and community services, and a comprehensive network of care. our health care delivery systems must focus on managing patient needs across many setting, from primary care to

outpatient, inpatient, from routine to urgent, to emergency. our proposed facilities do differ from those for the plans that we developed several years ago, the more modest plans for cathedral hill also reflect our concerns about the affordability of our project due in part to delays that you are all familiar with. what is in front of you today supports cpmc's projected ability to take care of our patients. this plan includes 2 74 beds at the cathedral hill campus, and 120 beds at st. luke's. and as you heard, this represents a 50% reduction at cathedral hill and a 50% increase at st. luke's. the cathedral hill campus which will be our largest campus will be centrally located at the corner of geary and van ness and will continue to be the home for most of our tertiary

and quaternary demographics. more and more people are and will living and working south of market. our revised plan with a larger hospital on the st. luke's campus reflects those changes. in addition, the plans for medical office buildings at cathedral hill, st. luke's and davies will provide space for our doctors and caregivers. we are eager to get going. indeed, being able to start our projects before the economy finishes its recovery has allowed us to provide substantial community benefit. beyond those building two new hospitals in the areas of health care, affordable housing, transportation, neighborhood improvements, and work force development. as you've heard, we could not have can you have to this place today without the willingness of the mayor's office, especially ken, and supervisors chiu, campos, and farrell to engage in countless hours of negotiations under the leadership and mentor ship of lou gerardo.

now that we've reached agreement on a term sheet, we hope the board will vote to move this project forward, thus enabling us to build these two new world class hospitals. we look forward to moving quickly toward beginning construction and getting shovels into the ground. thank you. >> thank you, dr. bronner. back to mr. rich. >> some general points about the term sheet as we start to go through it. the resolution before you is a nonbinding endorsement of the term sheet that we've negotiated with cpmc. it directs staff to go back and complete or revise development agreement based on these terms. today is not a final approval from the board. the project under the development agreement must still go back to the planning commission and then come back to the board of supervisors, and i'll show a schedule for that at the end. so, these are the key points of the new agreement.

first, a significantly larger st. luke's hospital, 120 versus 80 beds, and a significantly smaller cathedral hill hospital, 2 74, up to 304 beds versus 555. st. luke's hospital will be an integral part of the cpmc system 25% of the bed in the city. cpmc will be obligate today continue providing specified level of charity care to the needy san franciscans with no reference to cpmc's financial conditions or projections. and last, about 80 million in cash for community benefits is part of the agreement related to health care, transportation, work force training, affordable housing and pedestrian safety. so, starting with st. luke's, which has always been the center point of this whole agreement, st. luke's will be a 120-bed general acute care hospital with an emergency department. cpmc must open st. luke's hospital within a specified

number of months after opening the new cathedral hill hospital. instead of the previous 80 beds st. luke's hospital with a 20-year operating covenant, st. luke's at 120 beds is a more sustainable and comprises almost 25% of cpmc's beds in the city. st. luke's will be required to have service of excellence in senior and community health with services specified in the development agreement. and st. luke's will be required to provide all the standard services found in general acute care hospital as specified under state law. moving on to the st. luke's medical office building, a medical office building at st. luke's is entitled as part of this process. cpmc is obligated under the term sheet and the development agreement within five years at the latest to begin construction of a new medical office building on the site of the old hospital. or offer the site to the city for the purpose of constructing such a facility. and this is essentially the

same as in the previous agreement. like st. luke's, provision of baseline care for the poor and under served is a central part of this agreement. this time around we have negotiated a new and we think better way of defining this obligation. instead of using a dollar amount subject to inflation and link to cpmc's financial performance, we have negotiated a set number of patients. either charity care or medi-cal with cpmc must care for every year. this is defined as the average number of patients cared for in the last three years and is approximately 30,000 patients a year. in addition to -- for this 30,000 patients per year, cpmc is obligate today provide $8 million per year in cash for services to the poor and under served. and again, just to reiterate, these commitments are absolute and do not depend on any external circumstances.

going on to the new medi-cal [speaker not understood], you will remember in the last agreement cpmc was responsible for being the hospital partner for a number of new -- of net new medi-cal beneficiaries. this is over and above the baseline commitment discussed on the last slide. this means that cpmc will work with primary health care providers and provide care for medi-cal patients when they need hospitalization. the obligation and the term sheet is 5400 beneficiaries for 10 years, at least 1500 of which must come through a provider that serves the tenderloin. expenditures for this are capped at 5 million per year, increasing each year. and i do want to note before moving on to the next subject that this is sort of an arcane health care issue and if anyone has questions on what we mean by the medi-cal [speaker not understood], we have myself and staff from public health here to answer those.