point of privilege, to share a communication that i received from the hunters point developer, lennar. i have received notice that cheryl smith, who is the director of their community affairs, many of you know her from her deep work. she comes from the bayview. her tireless work of the last six years. certainly she will be missed. she's created a deep bench there in order to carry on her work. but really, i think the shipyard, it stands where it does today in large part to her personal commitment and her work on behalf of her neighborhood bayview and all san franciscans. she certainly will be missed and we wish her well. but they certainly do have a deep bench to carry it on. but i did want to draw your attention to that. that concludes my director's report. >> thank you very much. we will be sad to see cheryl go, yes, she will definitely be missed. not that she's like, you know, not in the community any more, but not

lennar. madam secretary, please call the next item. >> the next order of business is item 9, commissioners' questions and matters. madam chair. >> thank you. any questions or matters? no? excellent. next item. >> the next order of business is item 10, closed session. >> thank you very much. we will be adjourning for just a moment to clear the room of anyone who is not involved in this closed session's item. >> please call the next item. >> the next item of business is adjournment. madam chair. >> thank you very much. we are adjourned at 2:53. [gavel]

>> there are kids and families ever were. it is really an extraordinary playground. it has got a little something for everyone. it is aesthetically billion. it is completely accessible. you can see how excited people are for this playground. it is very special.

>> on opening day in the brand- new helen diller playground at north park, children can be seen swinging, gliding, swinging, exploring, digging, hanging, jumping, and even making drumming sounds. this major renovation was possible with the generous donation of more than $1.5 million from the mercer fund in honor of san francisco bay area philanthropist helen diller. together with the clean and safe neighborhood parks fund and the city's general fund. >> 4. 3. 2. 1. [applause] >> the playground is broken into three general areas. one for the preschool set, another for older children, and a sand area designed for kids of all ages. unlike the old playground, the new one is accessible to people with disabilities.

this brand-new playground has several unique and exciting features. two slides, including one 45- foot super slide with an elevation change of nearly 30 feet. climbing ropes and walls, including one made of granite. 88 suspension bridge. recycling, traditional swing, plus a therapeutics win for children with disabilities, and even a sand garden with chines and drums. >> it is a visionary $3.5 million world class playground in the heart of san francisco. this is just really a big, community win and a celebration for us all. >> to learn more about the helen diller playground in dolores park, go to sfrecpark.org.

>> good morning everyone. welcome to the san francisco board of supervisors budget and finance committee meeting for wednesday december 4, 2013. my name is supervisor farrell. i will be chairing this committee and joined by eric mar the vice chair and joined by john avalos. i would like to thank the clerk of the meeting and sfgtv covering this meeting. there clerk do we have any announcements? >> yes. please silence all cell phones and speaker cards and documents to be part of the file should be submitted to the clerk and acting today will a appear on the december 13, agenda of the board of supervisors unless otherwise stated. >> all right. can you call item number one. >> item number one and contract modification guardsmark, llc - security services for the

allege to extend the term by two months for a revised period of week in a modified amount of $21,226,260. >> okay. thank you very much. this was continued from the last meeting. thanks for being here. >> dave curto human services and again we have the modification for the guardsmark contract for an extension to january 31 and i wanted to thank the committee and the budget analyst office to allow us to fine tune the numbers and make sure we have the authority to make it through the extension period and we anticipate to come back at the earliest meeting in january for award of these services. >> okay. thank you very much. colleagues any questions. thank you. mr. rose can we go to your budget analyst report.

>> yes mr. chairman and members of the committee and we project that the need for the increase in security services is shown in table one and that's on page four of our report and we report our office reviewed the weekly expenditure estimates by hsa and find that the estimates combined with the proposed contingency funding should pride sufficient contractual contract to pay for this amount and provide a contingency in the amount of 113,440 and result in the asking increase in the contract or authorization through january 31, 2013. we recommend that you do approve this resolution. >> okay. thank you very much mr. rose. any questions? okay. much appreciated. we will open up item one to public comment. anyone wish to comment on this

item? seeing none public comment is closed. >> so i would like to move the recommendation. >> okay. we have a recommendation and we can take that without opposition. >> thank you. >> mr. clerk can you please call item two. >> item two a resolution urging the restart of greenfinancesf and supporting the mayor, the department of the environment and the office of public finance to enable city residents to finance the energy and renewal capital improvement improvement and take other action necessary thereof. >> thank you mr. clerk. this item colleagues is a resolution i introduced and sponsored with the mayor with the revitaltation of greenfinancesf and that we support the office of the department and to take the appropriate steps to get greenfinancesf up and running. i want to thank all my cosponsors for their

cosponsorship. in particular i want to thank supervisor mar for his early leadership on the issue. when the program was first put for thed and stalled in 2010 and with ground work with stakeholders from all of the communities and last tuesday the mayor and i announced to kick start greenfinancesf and continue san francisco's tradition of combating climate change, push out city down the path of reducing greenhouse gas emission goals and put san franciscans to in the neighborhoods and finance projects in their home. this program for residential properties of our units or less is referred to as pace so financing structure that will enable san francisco at no cost to the city to fund energy

efficiency and upgrades for property owners and this will overcome market bear barriers and -- over the life of the improvement. this special form of financing allows property owners to do the upgrade through text assessments each each with favorable terms and competitive interest rates. the capital will be provided by private entities and no financial risk or exposure to san francisco. everyday we witness the birth of innovation and models with the clean economy and the -- excuse me, with the green collar jobs that come with that. we know that the green energy economy can have a market transformation as the it1 we are experiencing here in san francisco but in order to do that we as a city must provide strong demand for energy efficiency and renewable

products. that catalyst is greenfinancesf. we have seen other parts of the state of california that have adopted residential programs to great effect recently most notably sonoma and others. and we now know the stories of individuals that have chosen to participate in these respected pace programs and seen the successes that they have encountered. we know these upgrades can save money not only on repair costs and energy services and also monthly energy bills to the tunes of thousands of dollars saved per household. from the beginning we wanted to insure this policy and finance tool have a strong work force component tied to it that put residents to work in this thrg. we can be partners in the labor to begin the discussion of what the work force would look like and training for these jobs in san francisco is key to getting

jobs and keeping them employed today and key to find meaningful careers and help them stay in san francisco for years to come. we know the potential a clean energy economy has in store and we want the local workers to take part in that industry and provide the opportunities for upward mobility. we're going to continue working with the partners to have a work force agreement ensure that local residents are working with contractors on projects and keep money flowing inside of san francisco and boost our local economy so that members of the various community groups and labor organizations that stood with us last week can be trained for the jobs in the 21st century and despite the agency's concerns over this project and program which ultimately stymied the program years ago we are confident the program can move forward now and be successful.

again we have seen other programs in california move forward with success and because of their concerns we're doing all that we can to protect property owners and give them the security they need to papt in greenfinancesf. our governor jerry brown funded a program to address their concerns and freddie mac and fannie mae will not be impacted by this. san francisco will be participating in the reserve fund so we're protect. and greenfinancesf will cement our role as a national leader in climate change and make it easy for property owners to make these changes and create jobs on local projects. we have more work to do with this program to make it successful and make

sure everyone joins together to restart greenfinancesf. i have a number of people i want to thank and mayor lee, the department of finance, the commission on the environment and my staff and jess for his efforts on this project and we have a few speakers today so i will ask them to come up. i believe rich chin is here who is a program manager for greenfinancesf and within the department of the environment. >> chair farrell can i make a couple of comments? >> absolutely. >>i want to thank all of you supervisor farrell and bringing this newly fine tuned program forward. i did want to say after our pace program was knocked out a few years ago we were looking at sonoma county and i was talking to shirlee zane one of the

supervisors there and i see that this as a potential catalyst that other cities will look at this model. i know sonoma is putting significant resources in as a government entity and my hope is that the private model that the supervisor mentioned is another one we use on the local level to move this forward. i wanted to say i am still strongly supportive of of the programs and cleanpowersf and others in the city but this is a really great program and i applaud the city, and the department of the environment and the mayor's office and supervisor farrell for bringing this forward but i can work with other alleys on cleanpowersf and other projects in the city as well so thank you for bringing

this forward chair farrell. >> thank you. richard. >> good morning supervisors chair ferel supervisor mar. good to see you again. i am rich chin with the department of the environment and manage the greenfinancesf program. i have been here in the past and wanted to speak on behalf of the program on this exciting next phase for the program. i think chair farrell's comments covered the gist of how we got to where we are now pretty well so i will skip over the things i was going to say. quickly just how the pace program is envisioned to work is interested property owners work directly with private contractors and apply for financing. the program reviews the application and either approves or denies on specific under writing criteria and usually property criteria and mortgage and tax payment history, the equity and property value. if the funds are

dispersed for the work and the current property owner pays installment on the regular property tax bill. to be successful the program must be easy to understand for the consumer. and so we're lucky that we're in this situation now after hitting a roadblock a few years ago with the agency. the governor put funds aside to mitigate any risk to fannie and freddie so we're comfortable moving ahead with this program and buildings are responsible for 56% of the greenhouse gas emissions and residential is one fiveth of that total and this program will allow a affordable way to reduce energy consumption and the city gets back a powerful tool to meet the sustainability goals and with

other programs and sf energy watch and upgrade programs we intend to leverage as much -- which we intend to leverage as much as possible in this program. restarting pace will help us increase the amount of efficiency under the grid and create local jobs and economic investment that can't be out sourced and we are excited to work with everyone to bring this program back to the market. thank you very much and i am happy to take any additional questions. thank you. >> thank you mr. chin. much appreciated it and for all of your continued hard work on this. if no other questions at this point let's call up josh harsy and commission of the environment here in san francisco. >> thanks supervisor farrell, supervisor mar. i am really excited from the moment that supervisor farrell made the call and said i am thinking to

restart greenfinancesf, and then got the call from roger, the mayor's office, that said we're going to work with supervisor farrell to do this and i remember sitting down with supervisor farrell and talking about the work that supervisor mar had done to get the program before the feds stepped in and said no, and one of the things if i can speak to the work force development piece that i think one of the highlight briefly i remember sitting with supervisor farrell saying i want to do this. i want to put local folks on the projects, get local contractors. i really want to do this. where do we start? and i remember we pulled out thes are liewgz before. this is where we got before and we can move forward and supervisor farrell says let's do it and get community folks and there say sense of excitement that will this take off. there is a lot of work to be done and as far as work force we are crafting an approach to qualify the

contractors which is critical because we're doing it early at the beginning. qualifying contractors -- not just on the ability to disifer deliver for san franciscans and i know it's something we tried for years with go solar sf and never got there as a solution and using state certified apprenticeship programs and is the conversation right now and how we do that and that is good because some contractors might not doing finance projects all the time. they might be doing other work and other aspects of construction and not always engaging the local work force that is built into the values of this program with the relaunch

of greenfinancesf and supervisor farrell and the mayor have indicated where they want to go with this but it means when you do this work and you participate with the program, with pace, with greenfinancesf you can make the call to an apprenticeship program, i need one" and they send someone out and builds in a community partnership that i think can be groundbreaking and both programs year and beyond so we're excited about t i hope i hit the right pointings and i want to thank you supervisor farrell, mayor lee and supervisor kim and supervisor mar for starting this years ago and a chance to go back into residential because you have unlocked the puzzle supervisor farrell and just want to thank my colleagues at the commission. i know he spent time and he is excited too. i saw him last

night and said "i wish i could be there. please thank supervisor farrell." that's it. >> thank you commissioner and and thank him for his support. i want to thank commissioner arsay and pat mulligan from the labor perspective and had huge input to what we're doing and not only mayor lee and roger kim who has done amazing work on this and last call up jean cutter who is one of the local contractors here in san francisco. >> good morning supervisors. i am jeanine cotter and i cofounded in 2004 in the sunset district since 2004 we have been designing and installing solar electric and solar hot water systems in the san francisco bay area and we have installed more systems in san francisco than

any other company. we are based in san francisco. i live in san francisco and we hire san franciscans and we benefited from go solar sf. that has been an amazing program but one thing that program doesn't aggress is the issue of energy efficiency, water conservation, transportation, the off loading of natural gas as a fossil fuel that we use to heat our homes and it also doesn't address how to pay for solar electric systems and solar water systems over the life of those systems and that's an impediment and right now the vehicle for that is third party ownership and investors group and wallstreet owns the systems on people's homes and only addresses the solar electric system and not

how we reduce the natural gas usage, how we reduce hour water usage and how we decarbonize our transportation and those three issues are actually major issues with respect to climate change and how we respond to that, so we have a huge opportunity to respond to climate change and by engaging a local work force to do that work and skill people up. we have many old buildings in san francisco. many old buildings that would benefit from the upgrade of those buildings to be more efficient so people can spend their money other than on their utility bills. right now the barrier to that is being able to pay for that. paying for that over the lifetime of the system so that you can pay it with the savings that you have for those systems is just a

very elegant response, and the right response. the other thing is that we also have a lot of young men and women in particular that reentering the work force and there is not enough jobs for those individuals. go solar sf is a wonderful program. it's provided many opportunities for entrance into the work force and skilling people up, so that they can work in the clean energy field or in other fields because they have gotten the skills that are necessary in terms of hard and soft skills in terms of working so this is a really great opportunity for san francisco to be a leader and do the right thing, so thank you very much and i am looking forward to participating in it. >> thank you. much appreciated. supervisor mar any comments or

questions? to all the speakers if you have any other comments and again mr. chin or commissioner arsy if you want to come back up and any other questions or comments otherwise we will wrap it up. >> thanks supervisor. just one thing i wanted to say and you mentioned city build on the work force side we are exciting about city build and the role pat mulligan can play and the department of the environment and we have them here and there is capacity and infrastructure with cal and rich at the department to be really supportive so i wanted to add that component and everything is set and ready to go and we're excited about the potential moving forward with the program. >> supervisor mar. >> i did want to ask if rich can elaborate more on how this is legally defensible given the changes at the federal and new

changes at the state level and how this is privately financed as well? >> sure supervisor mar. so as i mentioned and supervisor farrell also alluded to this, the statements from 2010 from the federal financing agency were statements of concern, and since those statements were released most residential pace programs including ours in san francisco basically suspended because there was some question as to what was really behind those statements. as supervisor farrell mentioned a number of residential pace programs have continued to operate even in light of that regulatory uncertainty and they actually have been quite successful and to everyone's knowledge none of those federal agencies have actually acted upon any of those statements that they had made in 2010. >> if they acted upon that

means there was a fear a few years ago they might challenge different programs but they haven't done that over three years? >> correct. their position basically remains the same but their actions have not really followed up on anything they have said in those statements. for example in western riverside county of governments -- council of governments residential pace program has been operating for over two years and has done nearly $100 million in financing and none of those actions had actually occurred down there at the federal housing finance agency had intimated in their statements so in addition the key thing for us in san francisco now governor brown as put money on the table to mitigate any remaining risk to fannie and freddie and offered to them to basically make them

whole if there was a case of a default on a pace assessment for a home that was -- where the first was either a fannie and freddie mortgage or later to be sold to fannie and freddie. >> governor jerry brown's action reduces the risk to projects in san francisco that may move forward? >> exactly. and we're conforming to the state program and the rules that are plomb gaited from the state agency responsible for that. >> is there a simple way to say how our program differs from sonoma county? >> sure. they have been using pace for five years using primarily their county treasury funds as a source of financing so what we're contemplating and most other programs including the one in riverside county that i mentioned is work