>> items acted upon today will be on the board of supervisors agenda unless otherwise stated. >> okay. we have a relatively long agenda but hopefully we can get through the items quickly and joined by supervisor eric mar. can you call number 22 up.

>> item two authorizing the mayor's office to the successor housing agency to into a 99 year ground lease titling $43,065,000 with 1100 ocean avenue. >> good morning supervisors, chair farrell. thank you for having me this morning. i am from the mayor's office and community development. thank you for letting me present this resolution and would authorize the mayor's office and community development as the successor agency to the successor housing agency to enter into a long-term ground lease with the 1100 ocean avenue limited partnership. that is between mercy cal west and the housing corporation for the development and operation of 71 units of affordable housing at 1100 ocean avenue. initial term of the lease is 70 years and contemplates option of 29

years for total term of 99 years. the project will be home to 45 units of housing and while 25 of the units are set aside for transition age youth and 18 to 24 and from foster care or at risk of not making a successful transition to adulthood and requested approval and in 2009 selected this team and since then the mercy team has got awards and enabled them to come into construction in mid-to late august this year. the lease is integral for the success of 1100 ocean avenue and look

forward to answering any questions you have. >> colleague colleague any questions? any public comment? seeing none public comment is closed. we have a recommendation to move it to the full board. we can do without opposition. mr. clerk can you call item one. >> item one a resolution for a contract to replace hhp holm powerhouse unit 1 with a contract not to exceed $521,465. >> okay. welcome back. >> thank you. general manager for the puc. we are here to talk about this mercy contract and a small contract for delta star and

work on transformers and like buildings like this. we haven't been able to make amount until we have the emergency ratified by the board of supervisors and we are here today to support to pass this resolution. >> okay. thank you very much. colleagues any questions for there carlin? okay. much appreciated. mr. rose can we go to your report for item one. >> mr. chair as a committee you previous admitted this legislation per our recommendation that we made to you. we recommend that you approve this legislation. >> okay. thank you mr. rose. colleagues any other questions, comments? we will move to public comment. seeing none public comment is closed. can i a motion to move this item forward? so moved. okay. we can do so without opposition. mr. clerk can you call item two. >> item two authorizing the

general manager of the ethics commission to enter into a contract with oliver de silva. >> okay thank you. i know that we have mr. updike here and the puc as well. >> thanks. john up dike and we are representatives here as well as community advocates and the tenant here to address about questions you have about timeing. >> okay. thank you. colleagues any questions at this point? okay. mr. rose can we go to your report on item two. >> mr. chair i summarized this report last time and i can respond to questions and otherwise i ask that you approve the resolution. >> colleagues, any questions for mr. rose or staff? all right. at this point i will open it up

for public comment and even if i don't call your name please feel free to come line up against the wall and speak. [calling speaker names] so if i called your name and anyone else that wishes to speak. everyone is going to have two minutes and if you already heard your name called line up and we will run in the order you were called. >> thank you. my name is peter galin. i'm the program director for biological diversity and one of the group's co-founders. we been involved with the oliver de silva community and a series of accords and lead us here and want to speak in passage of the resolution in front of the board right now. there is a whole host of conservation projects that are dependent on the city moving forward with its process and those include damn removal,

a series of damn removals that will open up dozens of miles of the alameda creek system to steel head for decades where it was closed off due to passage problems. there is a series of payments that oliver de silva company is making that will purchase endangeroused species habitat in the area. part of the package is funded to be regranted for en dangered habitat and this is contingent of the city moving forward on the agreement to approve the measure in front of it at this time and i guess i want to say in the years i of involved in this, the 25 years or so, oliver de silva and company has gone above and beyond what they needed to do and has embraced the environmental and community

concerns which were something we worked on for a number of years pain steakingly and we speak in approval of this measure and given the large number of positive things contingent on the city moving forward on the process at this time. thank you very much for the opportunity to speak to you. >> thank you very much. next speaker please. >> my name is jim laugh lynn and i am vice president of save our sunol and the largest group in the community. we have been working with oliver de silva discussing this project. last time you heard from us was a number of years ago where we actually spent time opposing the quarry. this time we are glad to be part that we have excellent working working relationship and found oliver de silva to be sensitive to the

community and supportive of the community in proposing for a community improvement fund which will allow the community to focus on specific needs within their boundaries, and also they have agreed to provide funding for our cert program, our emergency response program. we are somewhat isolated and concerned about what kind of response we can get in terms of a serious emergency. they have agreed to give us at this time this permit is approved a $20,000 grant to continue our cert efforts which will provide equipment and emergency supplies for the community in addition to that which we have already accumulated. we also find this is an excellent project from an environmental point of view, and it will greatly improve -- has already improved the quarry property that we're referring to, and it has long-term

implications for improving the environment within the sunol region and the town of sunol. the projects that that the center for biological diversity and others are critical to improve the environment in our area. we are extremely concerned and we have been working on this for a long time. our local advisory committee to alameda county has been working on processes for -- identifying local projects for community improvement and we would like to be able to have some assurance we're going to move ahead with that. there are questions as to why things are taking so long, and so we are really at a point we're at a stand still to implement the things we're able to do once this project is approved so on behalf of the community i would request that

whatever can be done to facilitate this project moving forward be done so that we will be able to move ahead with some of our projects, even as small as they seem compared to other things you deal with. thank you very much. >> thank you very much. next speaker please. >> yes, i am mervtiesen. i am sides of sunol and also on the board of save our sunol, sos, and i would like to move i would hope this would move towards approval of this because as the previous speaker mentioned we have been negotiated for about four years, so that we could have the resources to do a lot of projects within the community of sunol and we had a great expectation that after we

finally signed an agreement with oliver de silva that there might be some action and that's been over a year ago, so i would stress that you approve the smp-30 and allow for the town of sunol to proceed with what they have already planned. okay? thank you. >> thank you very much. next speaker please. >> good morning members of the committee. my name is jim summers vice president with oliver de silva. it's been seven years we have been working on this project. during that time we worked diligently with the local community, with alameda county, and the local environmental concerns to make sure that we addressed all their concerns and put together a package they think everybody can be very proud of. we had schedules that we had to keep. we d we got this project approved in a quick time frame through alameda county and we have been waiting for a year to

get from alameda county to the approval of the s sf puc and the board of supervisors and stand ready to present the community groups with the agreements that we have agreed to and to move those forward. i know they're anxious to get those moving forward. it's been a long time coming, and i think that you see that we have the assignmental support and the community support. >> >> and i really wish that you would move this forward today so that we have no further delays. it's impacting our operation and the sooner we get this done the faster to get the environmental accomplishments that we worked hard to achieve and the community accomplishments as well and i hope that you move this forward. thank you very much. >> thank you very much. any other members of the public that wish to comment on this item? all right. seeing none public comment is closed. supervisor avalos.

>> thank you chair want i am prepared to this this item today. i apologize for the delay and i appreciate people coming here today to talk about the importance of the project and the history of work done and the relationships built so i will be voting to approve this project. i had concerns about processes within the puc is why i held it up but i will move it forward. i do see the great benefits this project provides in sunol. thank you. >> thank you very much. supervisor mar. >> i wanted to thank the budget and legislative analyst for their analysis and i am going to be supportive as well. i wanted to thank the friends from sunol to come out. i hope to visit some time to see the work being done. i wanted to congratulate also the contractor for reaching out to the environmental community and thank you for the center for biological diversity

and others coming to speak and how you're protecting the environment with working with the contractor as well so i will be supportive as well. >> thank you supervisor mar. all right colleagues any other questions or comments? if we have a motion to move this to the board without without opposition. we can do out without objection. we're going to skip over item three and for the audience we're going to take a break at 1130 for approximately 15 minutes to have a signing ceremony for this year's budget so mr. clerk can you call item four and we will do item three after the break. >> item four resolution authorizing director of public works execute an amendment to the design agreement with the construction of a new public safety building under the earthquake safety emergency response bond program for approximately $19 million. >> good morning supervisors. i am sam [inaudible] manager

responsible for the public safety building. as you recall the public safety building will house the future police headquarters. the station relocated on [inaudible] street and fire station. the project is seeking approval for the amendment to the master contract for [inaudible] for $1.8 million and the not to exceed amount of $17.2 million which was approved by the board in 2010. since that time there were four modifications to the agreement and under the threshold and requires approval of the board by resolution. modification five includes costs for design development, construction, documentation, and construction administration for additional requests -- service requests by the city and the work due to unforeseen conditions. the project is on track to be delivered within the budget and

we're on target to open in november 2014. with that if you have any questions i am happy to answer them. >> thank you very much. colleagues any questions first off? okay. mr. rose can we go to your budget analyst report please? >> yes on page 25 of the report we note the not to exceed amount of the agreement between public works and them of the proposed amount of $19,018,639.91 is within the mission day project budget for the architectural and design services and that was a little over $25 million. table four on page 26 of the report contains a description of the components of the proposed modification for the needed architectural and design services work which totals over $1 million. we recommend that you do approve this legislation.

>> thank you mr. rose. colleagues any questions for staff or mr. rose? thank you very much. we will move on to public comment for item four? any member of the public wish to comment? seeing none public comment is closed. colleagues can i have a motion to move this item forward? we can do so without opposition. mr. clerk can you call item five. >> item five and for the sheriff's department enter into a agreement for ara mark and not to exceed 19.$6 million. >> okay. we're supposed to have a member of the sheriff's staff here and i don't believe i see brie, so why don't we skip over this item? mr. clerk can you call item six. >> item number six resolution retroactively approving agreement between the california

department health care services and community behavorial health services to provide specialty mental health services. >> good morning. anna [inaudible] department of public health. this is the state contract for mental health services especially for san francisco county residents. this item is coming to the board as a resolution since the state california department of health services requires a board resolution for this contract. >> okay. thank you. colleagues any questions? okay. we don't have a budget analyst report for number six so we will open it up for public comment. anyone wish to comment on item six? if not public comment is closed. >> i will move recommendation. >> okay we have a motion and second to move this item to the full board. we can do so without opposition and we will go back to item five and the sheriff's department is here to speak on this item.

>> supervisors, chair farrell i am brie mortar, from the sheriff's department. i am here to provide you with the contract for ara mark to provide food for inmates and staff in the jails. the contract is with the current vendor ara mark and represents $30,000 savings over the prior contract. in addition to the savings we have also negotiated an expansion of the culinary vocational program. under that expansion ara mark is providing a formal certificate that is recognized by food providers around the country so inmates that work in the kitchen and participate in this process will be able to work in professional

kitchens once they leave jail. in addition ara mark is giving a $20,000 grant to support the vocational program. we will also be enhancing our operations by doing a quarterly review with them to confirm that operations are running smoothly and the kitchen is maintained properly. in the area of food we implemented a healthy heart menu to help combat some of the inmate obesity issues we're seeing due to a overly caloric meal with a sedentary lifestyle. for the deputies we improved their meals and added a la carte meals and they can choose what they want to eat for the staff meals and in order to bring more fresh produce to the inmates while they are incarcerated ara mark and the sheriff's department are moving forward

with negotiations for ara mark to use produce from the garden project which is a vocational program that occurs at cj5 and at risk youth do gardening services and the budget analyst did a report and they recommend approval. if you have questions i am happy to answer them. >> colleagues any questions or comments? thank you. mr. rose can we go to your report please. >> yes mr. chairman on page 29 of the report we report that the proposed agreement is a total of $19,659,606 for five years and that is in table two. we recommend that you do amend this resolution to specify that the agreement is ret to active and

you approve the resolution as amended. >> okay. colleagues any questions for mr. roases? okay thank you very much. >> thank you supervisors. >> we will open it up for public comment on item five? anyone wish to comment? seeing none public comment is closed. all right. we have budget analyst -- >> i move the recommendation of the budget analyst. >> we can do that without opposition. can we move that forward without opposition? okay. so moved. we will move on to item seven please. >> item number seven resolution authorizing the office of economic and workforce development to retroactively spend in-kind gift for the development of the web base enterprise zone hiring tax credit application. >> okay. thanks. we have todd here from owd here. >> this is a retroactive for

in-kind gift value at $16,000 for a web base application for the enterprise zone program. this is the total cost for developing the project. this is web base software to replace the paper system for the program. i am happy to answer any questions. >> colleagues any questions? we don't have a budget analyst report so we will open it up for public comment? seeing none public comment is closed. colleagues can we move this forward without opposition? so moved. mr. clerk can you call item eight please. >> item eight resolution approving the contract for united airlines for plots 16 and 16b. >> okay. thanks. we have kathy here from the airport to speak on this item. >> good morning chair farrell, members of the committee. i am with the airport. the airport is requesting your approval to

amend the existing ground lease for approximately 130 acres at the maintenance center with united airlines. the proposed amendment would extend the lease and increase the base rent. the subject lease between united and the airport was for originally for 20 years and had two 10 years options to extend and the recent one expired in 2013. in addition to extending the lease at the operations center the airport would like to reclaim approximately 5 acres of leased land for operationalises including a potential convenience store and green energy gas station. united has requested that the extension include language that would give them the language to relinquish up to 30% of the property at a future date. under the proposed amendment they would pay the

airport $93,000 per acre per year for a total annual rent of approximately $12 million for fiscal year 13-14. the rent will remain fixed at this level for three years and at which time it will increase to reflect the cpi that is capped at 3% annually. the budget analyst recommends approval and i am happy to answer any questions you may have. >> thank you very much. colleagues any questions? okay. thank you very much. mr. rose, could we go to your budget analyst report for item number eight? >> yes mr. chairman and members of the committee. table one on page 33 of your report shows that the lease premises will decrease by by acreage and 3.8% decrease. the rent per acre increases by $10,000 or 12.5%

so total rent of 8.3% after adjusting for the change in acreage. we also note mr. chairman and members of the committee on page 33 that the proposed rent of $93,000 per acre is $46.96 less than the fair market value based on the third party appraisal conducted by cbre so that results in reduced rent over 10 years of $6 million. however, the airport and the united airlines as reported to us by the airport negotiated the reduceed rent per acre because it represents 18% increase over the current rate which was far greater than united projected or budgeted and certainly equally as important the airport wants to maintain a

long standing relationship between one of their major tenants, united airlines, and we think that is reasonable, and we recommend that you approve the legislation. >> thank you very much mr. rose. colleagues any questions or comments? okay. we will move on to public comment for item eight. anyone wish to publicly comment on this item? seeing none public comment is closed. colleagues we have one amendment recommended by mr. rose. can we take that amendment -- >> actually we just recommend a straight approval on this one. >> isn't there a retroactively -- >> excuse me, absolutely. that's correct. >> okay. so we have been recommendation. can we take that without opposition? and the other item as amended and can we take that without opposition? so moved. mr. clerk can you call item nine. >> item nine approving the lease agreement with china eastern

airlines and scandinavian airlines of north america incorporated and acting through and by the airport commission. >> sorry, go ahead. >> chair farrell, members of the committee kathy whiner with the san francisco airport. the item requests approval for niece lease with china eastern airlines ask scandinavian airlines for seven years and 10 months. this is through china eastern airlines and them signing on to the use and lease agreement. the terms are identical to the previous approved 43 leases, 43 previous airlines that signed on to the agreement. in addition to setting landing fees and providing for ticket and counter space at the airport the agreement is also the mechanism that ensuring the annual payment from the airport to the city through