$13,500,000 for hauling biosolids sludgee and grit, pursuant to charter, section 9.118 bb. public utilities commissionn. >> item number 4 resolution extending an agreement between the city and county of san francisco and s & s trucking corporation from december 20, 2013, through december 19, 2015, and increasing the estimated cumulative contract amount from $9,000,000 to $13,500,000 for hauling biosolids sludgee and grit, pursuant to charter, section 9.118 bb. public utilities commissionn. >> i know we have agreement that this item will be continued for one week until our next meeting. so unless -- is there anyone from the pc that wish to comment? we don't need it. we're all in agreement. we'll skip the budget analyst report. we have to open up to public comment. anyone wish to comment. seeing none, public comment is closed. colleagues can we have a motion to continue in one week. we can do so without opposition. clerk, please call item number 5. >> item number 5 resolution retroactively authorizing the sheriff's department to amend the existing contract with global tel*link for inmate telephone services, which will result in an anticipated commission to the inmate welfare fund of more than $10,000,000 over a four-year period from june 1, 2010, through may 31, 2014, with a one-year >> item number 5 resolution retroactively authorizing the

sheriff's department to amend the existing contract with global tel*link for inmate telephone services, which will result in an anticipated commission to the inmate welfare fund of more than $10,000,000 over a four-year period from june 1, 2010, through may 31, 2014, with a one-year option to extend the term. >> we were supposed to have bree, maybe they aren't here yet. mr. clerk, can you go forward and can we call item number 6. >> item number 6 resolution authorizing the execution, sale, and delivery of a multifamily housing revenue note in an aggregate principal amount not to exceed $22,000,000 for the purpose of providing financing for the acquisition and rehabilitation of a 175-unit affordable multifamily residential rental housing project known as tenderloin family housing; approving the form of and authorizing the execution of a funding loan agreement and a borrower loan agreement; providing the terms and conditions of the note and authorizing the execution and delivery thereof; approving the form of and authorizing the execution of a regulatory agreement and declaration of restrictive covenants; authorizing the collection of certain fees; approving modifications, changes and additions to the documents; granting general authority to city officials to take actions necessary to implement this resolution; and ratifying and approving any action heretofore taken in connection with the note and project as defined hereinn. >> item number 6 resolution authorizing the execution, sale, and delivery of a multifamily housing revenue note in an aggregate principal amount not to exceed $22,000,000 for the purpose of providing financing for the acquisition and rehabilitation of a 175-unit affordable multifamily residential rental housing project known as tenderloin family housing; approving the form of and authorizing the execution of a funding loan agreement and a borrower loan agreement; providing the terms and conditions of the note and authorizing the execution and delivery thereof; approving the form of and authorizing the execution of a regulatory agreement and declaration of

restrictive covenants; authorizing the collection of certain fees; approving modifications, changes and additions to the documents; granting general authority to city officials to take actions necessary to implement this resolution; and ratifying and approving any action heretofore taken in connection with the note and project as defined hereinn. >> thank you. we have the mayor's office. >> join with the mayor's office of housing and community development. good afternoon, supervisors. the resolution before you will authorize the issuance of proceeds to pay for rehabilitation at tenderloin family housing located at 201 church street. the sponsoring team including china town community development center as the owner and general partner with union bank as the construction lender purchaser of tax credits and limited partner. union bank has finally approved the transaction and will pay $15 million in equity in exchange for the tax credits. with proceeds from this foet and other sources, c cd c will complete capital work which is reroofing and water proofing the exterior and upgrading the elevator and painting and improving common spaces and select units. tenderloin family housing is 174 units that has 12 studios and 42 bedrooms and 37 three bedrooms so it's a family development.

the building is approximately 20 years old and contains one manager unit. eligible households must earn below 50 percent and 60 percent area median income per tax year credits which is consistent with the regulatory agreement that was put on 20 years ago by the development agency. for a person, this is an maximum income $43,000. for a family of four, the maximum would be $61,700. at the 60 percent limit, a single person must earn below $50,000. continuing the use of the slightly higher t tax limits as oppose to the cmi will allow the owner

realizing slightly higher revenue on all units except 53 units that's serving households that earn no more than 46 percent ami. existing households will not see a rent increase due to this refinancing. the non state restricted rent will remain in place until the next annual rent increase which will allow rent to be changed according to the percent change in ami, which is most stand policy. the state restricted units have a different calculation for setting rent and based on the projects need which would have been under three percent. the repayment of the note is solely subject to project revenue and does not impact the city's budget. we anticipate closing all construction financing within the next three weeks. the project is slated to begin

construction shortly there after and complete construction in 2014. we have shannon dodge who is a project manager at china town community development center and she and i are both available if you have any questions. thank you. >> thank you very much. colleagues, any questions on item number 6. okay. we don't have a budget analyst report. no public comment. public comment is closed. colleagues can we have a motion to move forward and we can do so without opposition. thank you very much. why don't we go back. we already called item 5, so we'll go back to that item, please.

>> go ahead. >> members of the board, my name is bree and i'm the ceo the sheriff's department. our existing contract for inmate phone services which is with a company called gtl needs to be extended for one year. gtl provides phone service for

inmates paid by the inmates. from this revenue 60 percent is reduced from the revenue and deposited in the fund and used for the benefit of the inmate. and in addition gtl pays $100,000 into the fund each year. gtl was selected through an rsp since 2009 and has been our contractor to 2010. this would be the first of two possible extensions and the extension will run from june 1, 2013 to 2014. as apart of extending the term of this agreement, we would increase the rate of the commission from 60 to 65 percent which would result in an additional $60,000 being deposited into the inmate welfare fund and this is used for the benefit of the inmates under our care. in addition in preparing for today's hearing,

i noticed that the title of the resolution did not reflect the most current draft that we sent to the clerk, so if you could supervisor farrel, the title should read resolution should read to have telephone inmate services from june 2013 to may 2014 with a one option to extend the term. i'm here for questions. >> colleagues, questions. seeing none. we'll get to the city attorney in a second. mr. rose, can we go to your budget analyst report, please. >> yes, mr. chairman. on bottom of the page 6, the sheriff's department received $2 million in net revenues from the inmate telephone service agreement with gtl. in our

report we put global tel link and that's two annual payments and that period was from june 1 to 2010 to may 31, 2013 and that's on page 17 on the table in our report. on page 18 in the fiscal impact section, we point out that the sheriff's department estimates that as the sheriff's department just represented that the increase from 60 to 65 percent of gross telephone revenues is a result in an estimated 60,965 in annual revenues. on page 19 of our report, you notice table $19 of our report, you notice table two, there is $1.99 million in the fund as fiscal year 2013. we have two

recommendations, supervisors, for your consideration. they're on page 20. we recommend you amend the resolution. let me give you background. there's another contractor prices which was a source contract which never came before the board of supervisors. under that contract required a waiver which was not obtained but as we understand that, the sheriff's is obtaining that waiver now. that contract has automatic one year approval so it goes on forever the way it's written right now. so our recommendation, number one is we recommend that you amend the proposed resolution to urge the sheriff's to amend it to have a date specific. by the way, the purpose of that contract was to audit and collect the telephone

revenues. that's what that contractor does. separate and aside from the gtl contract. secondly, as i noted, there's a large amount in that fund and in fact expenditures in that fund -- revenues in that fund exceeded expenditures consistently for the last three years so our recommendation is that you amend the proposed revolution to have the sheriff's budget expenditures in 2014 and in the future to have inmate beb fits and we recommend that you approve this. i'll be happy to respond to any questions. >> colleagues, any questions for mr. rose. president mar. >> i was asking to ask if we agree with the recommendations? >> we do. >> supervisor avalos. >> yes, just a couple of

questions about the inmate welfare fund and what types of services it provides. >> this fiscal year, one section is budgets to provide services through cbo. in fiscal year 2013-14, we were using it to pay for one family and that program provides parenting education at cj 13 which is the downtown jail and 2 which is a women's jail and cj 5 and they provide parent child visiting and those two services are closely linked because we want our parent child visiting to be more than a contact visit between parents and their children. we want it to be a learning opportunity for parents to learn to be better parents and to build their relationships with their children because studies show that strong familiar

relationships reduce recidivism. we fund case management pods and that's a pod devoted to veterans. >> thank you. and then. one of the recommendations is that we expend the welfare fund with what we have in the fund and wondering what will the sheriff's department will be looking for. >> we have a $1 million fund balance and that was from under budgeting the revenues that came in, so for the last four to five years, revenued exceeded what we budge etded so although we expended everything, this fund is built year after year. there has been fluctuated. we have to budget conservatively because it depends on the number of

inmates drives the call value and that drives that into the welfare inmate fund. since we have a large fund balance, we're looking to budget a portion of that balance, but we have to be careful about the way we budget because it's a one time source. if we budget for something in fiscal year 14-15, that money will be gone. so the sheriff's would like to divide it into three on four chunks so we can provide the same amount of funds for the next three to five years and provide mental health or substance abuse which are three of the sheriff's priorities for programming in the jail. >> okay. and have you thought of any one time uses as well the budget funds? you might have capital needs or equipment needs or literature or anything like that? has that been a consideration as well.

>> one thing that we considered is the tv is a great distraction while you're in jail and you have limited opportunity to entertain yourself and some of our tv's need to be replaced to we've contemplated with the funds doing a system wide. >> that's great because you can show reruns. >> or the board of supervisors. >> what drives the cost of phone calls in the jails. i've heard that in prisons and jails the costs of making phone calls is much grater than for the general public for similar calls that are made to family members and if you could talk about that. >> sure. so the inmate -- the price of inmate calls is really driven by three things. at the

federal level, the fc krks regulates in trust state calling. if an inmate calls someone out of state, the fcc identifies a ceiling above which rates can not go. calls s made within california, will be regulated. the third thing that dictates inmate calling rate is the contract the city and county has with the phone caller and the rates were set that occurred in 2009. the sheriff's thinks that the rates are far too high and that inmate calls need to be provided as a price that is more in line with what his expectations are. >> is there a way to adjust the inmate welfare fund to reduce the price of calls.

>> from a technical perspective, what happens is inmates purchase phone cards, and those phone cards are -- just like any other debit card you would use at any store in the outside world, so each inmate gets a phone call of $20, they plug in their pin number into their telephone and the calls are debited off so the revenue goes directly to gtl. what the department could contemplate is guy phone cards that can be distributed to inmates on a fair basis. that's the way that that could be achieved. >> it's important that the sheriff's has flexibility but that could be considered. phone calls are high and inmates are calling family peoples and that's one of your policies to make sure there's

strong relationships between the inmates and families and that seems to be useful. >> i'm take that under advisement when we budget. >> supervisor mar. >> i want to give a shout out to the collaboration partnership. it's a great organization -- i know middle schools have spread in different ways and you mentioned the funds going to inmates with children, but how many inmates have children in our jails? >> that is a great question that i don't know the answer to, but i can find out. we provide visiting in the downtown jail one day a week. we provide visiting on weekends at cj 5. so the number of contact visits -- i don't want to speak out of turn, so let me check our performance metric examine and get back to you.

>> it's great that family and children service is here. that's interest of me how we support women and men and make sure they have regular support with their children. we're talking about an item in the last meeting called orange is the new black, i would hope the $1 million expands access to the families. i did visit with the chiefs examine also the 7th street facility and i could see how challenging it is at the 7th street bryant facility verses bruno that has better access. i'm hoping we put effort into that and that would be helpful for me to know the

demographics of inmates with family members and how we're accommodating them and helping them stay in contact with their family. >> this year throughout r section p process we generated funds to support this program. that's how important it is to the sheriff's office even when people are incarcerated. >> okay. colleagues, any further questions? okay. we went into our budget analyst report. any further questions for the staff. we'll open up to public comment. anyone wish to comment. seeing none, public comment is close. to our city attorney, the proposed title change, does that work with you and we have to continue this for a week to

change? >> that's correct, deputy attorney john. one additional piece, the clerk's office general entitles says that the contract reflects the total amount, so perhaps you can amend the title and the clerk's office can work with the sheriff's department to make sure the right number goes into that title so it's noted next week. >> two sets of recommendation, the budget analyst recommendation that the sheriff's department agreed on. so moved and the amendment to the title and we can work on the final amount. continue this item as amended until next week. we can do that without objection. thank you very much. mr. clerk, can you call item number 7. >> item number 7 ordinance amending the business and tax regulations code to provide additional penalty relief for payroll expense tax and gross receipts tax payments; to require combined reporting of the payroll expense tax by related taxpayers; and to clarify that fees and special assessments are administered according to the common administrative provisions

applicable to other business taxes. >> item number 7 ordinance amending the business and tax regulations code to provide additional penalty relief for payroll expense tax and gross receipts tax payments; to require combined reporting of the payroll expense tax by related taxpayers; and to clarify that fees and special assessments are administered according to the common administrative provisions applicable to other business taxes. >> okay. thank you. we have our treasure tax office here and greg thank you for being here. >> good afternoon. has the short title explained, this legislation has three things. and they're all add -- administrative. what this does is allow the tax payers to avoid penalties and interest if they make a minimum quarterly installment paument and if they make an under payment and an overpayment in one tax, our office by this legislation is empowered to settle that up so

we don't have an overpayment in one and an overpayment in one when they make their final filing. if addition, it does require related entities. those are businesses that are considered unitary for the purpose of the franchise tax board and will file all one gross receipt tax returns and a business registration. this will require them to file jointly for their payroll expense, this will allow our office to create while one filing experience for those businesses so they can go through and file the payroll expense and the gross receipts at the same time. there is an administrative change that's different from our implementation. it clarifies that business and property improvement assessments are to be administered the same as other taxes are and with the tax business code. and with that i'm available for

questions. >> colleagues, any questions. >> seeing none. we don't have a budget analyst. moving to public comment. seeing none. public comment is closed. can i move this item. >> so moved. >> mr. clerk, can you call item number 8. >> item number 8 resolution authorizing the execution and performance of an agreement of purchase and sale for real estate between the city and county of san francisco and tenderloin neighborhood development corporation, a california nonprofit public benefit corporation, for the purchase of real property located at 201-229 eddy street, san francisco, in the amount of $4,200,000 for the rehabilitation of 105 units of affordable housing for low and very low income persons; authorizing the execution and performance of a ground lease between the city and county of san francisco and franciscan tower associates, l.p., a california limited partnership; adopting findings under the california environmental quality act; and adopting findings that the conveyance is consistent with the city's general plan, and eight priority policies of city planning code, section 101.1. >> item number 8 resolution authorizing the execution and performance of an agreement of purchase and sale for real estate between the city and county of san francisco and tenderloin neighborhood development corporation, a california nonprofit public benefit corporation, for the purchase of real property located at 201-229 eddy street, san francisco, in the amount of $4,200,000 for the rehabilitation of 105 units of affordable housing for low and very low income persons; authorizing the execution and

performance of a ground lease between the city and county of san francisco and franciscan tower associates, l.p., a california limited partnership; adopting findings under the california environmental quality act; and adopting findings that the conveyance is consistent with the city's general plan, and eight priority policies of city planning code, section 101.1. >> thank you supervisor avalos. this is an item that i sponsored. mostly in spot for supervisor jan kim who i expect will be put her name on the cosponsor at some point. but this is a project that is sponsored by the neighborhood development corporation, tndc and represents tndc are here as well and we have an over view. mr. uptight. >> thank you supervisor. thanks for your sponsorship as well. i appreciate it very much. chair farrel and members. the property today we're talking about is at 201-229 eddie street. it has been owned and operated by affordable housing process by the neighborhood development corporation as supervisor mentioned. they're joining us if you have technical questions if you like to ask about the questions. that has been operated since 1989. the

agency supported this. in april of 2011 the property suffered from a major fire which required displacement and relocation of all 127 resident. the property is under going a major rehabilitation and that's why we're here which is wide safety upgrades and green elements is required under the code and beyond. and it will yield 105 units of affordable units upon completion. all the displaced resident have an option to return after the rehabilitation. they estimate 50 households are return and the remainders will stay housed it is tnc assets. to preserve the affordability of the site, city is prepared to acquire the

land for a purchase price of $4.2 million. how we structured this is the purchase price which is substantiated by an appraisal we have reviewed and approved is paid by the forgiveness of $4.2 million in debt owed to the city for previous loans on the project. the city will lease the property to tn cd partnership through a 75 year lease with a 24 year extension for a total of 99 years available under the lease for use as affordable housing. in addition the city wrote down the interest only owed on the existing amount of $1.7 million and that's to make this project financial feasible from a tks credit perspective. writing down the debt, the city will not be asked to invest new money into the action. it will raise tax equity in only to

finance the project. the partnership -- >> that ^ debits debts structure is on page 23. what is remained after the transaction. the loans will be for a 55 year period. and repayable with what are known as residual receipts and those are detailed in great detail in the budget analyst report as to how those calculations arrived at. the project, assuming approval, we assume the completion in july of 2015. move in connecting interest after and we're anticipating 80

percent of move in. we're happy to answer any questions that you might have. >> any questions. can we go to the budget report. >> mr. uptight stated the mayor's office will forgive the principal outstanding loans of 4.2 million in exchange for the purchase of the land at 201 eddy street and forgive $1,000,700 of interest. on page 27 of our report, the report that based on the mayor's office of housing community development projected operating income and expenses from the 201-229 eddy street is shown on page 6 on page 27. the mayor's office will receive

estimated grand lease annual residual rent of $101,000 in the first year of the operation and according to the tenderloin non profit 20 year cash flow projections, the building will have cash for the first 13 years of operation with total estimated residual, rent payments of 756, 470. i would note of course those residual payments are dependent upon revenues exceeded expenses. we do recommend approval of this legislation based on prior policy decisions of the board of supervisors. >> thank you very much mr. rose. colleagues, any questions. okay. seeing none, we'll open up to public comment. anybody wish to publicly comment. seeing none. public comment is closed. we can move forward without opposition. mr. clerk,