do we support the nonprofit service providers? and as you've so wisely commented today, do we support the arts? both of these groups are vital to this community. so, we fully support this proposal. we look forward to continuing working with the task force. we thank you for your attention to this. >> thank you. next speaker, please. thank you, debby lerman from the san francisco [speaker not understood]. we support this measure. i want to express our appreciation once again to supervisor kim and president chiu and to brian chu for your hard work on this toshibationv. if you look at the affordable space report it looks like it was written yesterday. it gives a good starting point for the solution. what we need is a portfolio for both short and long-term solutions.

this supplemental focuses on the most immediate needs and we already have many organizations in dire straits. the bla report highlights the 2001 grant and puts out possible models for criteria for prioritization for what kind of an application process we would have. and [speaker not understood] going on reserve while the task force does its hard work and comes up with its recommendations for the best and most fair way to allocate these funds and what kind of an application process should exist. and we want to ensure that this limited pot of money is used in the best possible fashion. i do want to actually respond to supervisor mar's question about the loss of nonprofits in the city. the october report that the budget and legislative analyst did noted about 7500 san francisco an nonprofits two

years if go and now there are 6,000. we lost 20% of our nonprofits. we don't want to go any further. ~ so, thank you in advance for both of your approval of this supplemental and your efforts to increase it. >> thanks very much. anybody else want to publicly comment on this item? okay, seeing none, public comment is closed. [gavel] >> colleagues, any discussion on amendments and so forth. president chiu. >> i think my suggestion is if could continue this to the budget committee meeting february 21st if there is availability on that calendar. >> we can have a motion to continue this till the meeting on wednesday, february 26th. >> can we amend that, please? my amendment would be to increase the amount from the general fund reserve, the source of funding by $2 million. it will be $4,515,000.

and we'll continue the item and then in the meantime i will come work with groups in the nonprofitization group and proposal, [speaker not understood]. if it's something less than and find out we have a program we want to put together. i just believe it's really important to also look at in particular the arts sector. that is really hurting right now in this economy. it's a big part of what makes san francisco great as the art and cultural community groups. let's help it out and the intent behind the increase is. continue to the first meeting after the 21st. >> supervisor mar? >> can i just clarify intent? i know that smaller community based nonprofit arts organizations might be facing

more of the injures than larger arts organization s, but i'm just wondering are you suggesting more of a general allocation to arts groups? because it might help if you prioritize smaller community based arts groups through the arts [speaker not understood] as opposed to larger organizationses that might be stable. >> [speaker not understood] really smaller arts groups. >> i'm in support of that and second the motion. >> motion by supervisor avalos and second by supervisor mar. and we can -- mr. city attorney, are we clear on the motion? okay, all right, we can take that motion without objection. [gavel] >> and then, colleagues, i have a suggestion we continue this to the call of the chair with the intent we'll do this on the 26th if for some reason there is additional dialogue, we can have it at that time. motion to continue this item to the call of the chair. take that without opposition. okay, so moved. [gavel] >> madam clerk, can you please

call item number 5? >> item number 5 is resolution retroactively authorizing the general manager of the recreation and park department to execute a five-year lease from february 1, 2014, through january 31, 2019, with one three-year option to extend, for an initial annual base rent of $662,400 with coit tower, llc, for the operation and management of coit tower, and reaffirming the commitment of the board of supervisors to protect and preserve coit tower and its murals in accordance with proposition b, passed by voters on june 5, 2012. ~ court title: >> thank you very much. we have [speaker not understood] from rec and park. president chiu, do you want to talk first? >> thank you; i appreciate your recognition for this resolution. it is one of san francisco's most icon i can structures. i want to offer my great thanks to the many community leaders and constituents from my district who live near coit tower and have spent a ton of time and energy over the recent years to get to this day. i also want to take a moment to thank the park and rec department and the arts commission for their work with the community on this. the resolution that we had in front of us would improve a

concession lisa for coit tower, completing a process that began five years ago. ~ lease it will better protect the stunning murals created during the great depression by the works administration. the lease also represents a response to the voters of san francisco who approved a policy statement in june of 2012 in proposition b. the statement said that we should prioritize revenues generated at coit tower to preserve and maintain the tower and its murals. and i am very grateful to be able to work with the mayor and our very city departments to have already made a $1.7 million investment toward the current restoration project which i do believe fulfills the policy goal that was outlined in park b. [speaker not understood] at an amount equivalent to 1% of the fund generated. subject to our annual budget process, prop b also called for

strictly limiting private events at coit tower and this is a lease that prohibits private events. so, with that, like to invite up mike kenos ~ mc kenzie from rec and park and then look forward to hearing public comment on this item. >> good afternoon, supervisors. mike kenzie, park and rec. thank you for your introduction. the park has been working diligently with the community towards implementing a new lease at coit tower. we have sought their feedback and what should be included in the least and i think we're really happy to present to the board a lease that really ensures that for the first time the city is going to be treating coit tower as a museum that it is. so, with that i'll give you a little bit of background on this. in october of 2011 the department issued an rfp for the management and concession of the coit tower concessions.

the rfp included years of input from various community groups including the pioneer park project and the tower dwarf hill dwellers. the coit tower concession principals and goals. the vast majority of those principalses and goals were incorporated into the department's rfp particularly the concept that we should rather than a gift store reate a high quality bookstore featuring items related to coit tower, related murals in san francisco, [speaker not understood] in the main gallery and also implementing a mural protection plan for the concessioner. in response to that rfp the department received three proposals. ultimately the department -- the recreation and park commission selected terry graham, the operator of coit tower llc of the selected responding. mr. graham is a local entrepreneur and has started numerous family businesses here in the bay area including the

ankle "owester bar and [speaker not understood] in northern sonoma. and his proposal included -- met the department's requirements about operating a high-quality concession and also included interestingly to the department a proposal to operate a docent program that will help educate the public about the murals and also serve as stewards of those murals helping to protect them from damage. so, the proposed lease terms are a five-year lease with a potential three-year extension. the permitted use is operation of the elevated missions. and then also managing the gift store, a docent program, and the audio tour program. as president chiu mentioned, the lease does not provide for or allow for special events to be held at coit tower.

it -- the annual minimum rent is $662,400 with annual cpi increases. the tenant or the lessee would pay the greater of that rent or the aggregate of the following percentages of the respective revenue streams. those percentages are 90% of admissions receipts, 20% of bookstore gross receipts, 10% of audio tourseses and bin objecttion la rentals. and 10% of the docent led tours. the lessee will be making $75,000 in tenant improvements to the building ~ mainly improvements to the bookstore space to create, we think, a feel that is much more akin to a museum that you might find if you visited the academy rather

than a gift store that was the previous atmosphere of that concession. so, again, these are the activities that the lessee will conduct. here is a breakdown of the improvement, mainly painting the tower viewing area, installing a security system on-site to help us be aware of any -- protect against vandalism on-site, storing shelving and lighting in the bookstore, and painting the bookstore interior, and other smaller improvements to help clean up coit tower as the department finishes the $1.7 million renovation project that president chiu mentioned. under the terms of this lease, the department expects to

receive significantly more money than we had under the previous lease. for the past five years the department has received an average of $7 48,000 per year from the coit tower concession. under the terms of the proposed lease and with the soon to be completed renovation project and the restoration project, the department anticipates receiving an average of $1.3 million per year over the five-year term of this lease. that's an increase of $5 63,000 per year, over $2.2 mill over the five-year term,v with that, if there are any question the supervisors have? >> supervisor avalos? >> the hearing we have coming up soon is [speaker not understood] is meeting rlb requirements, business local

enterprise will be doing the concessionses in elevator for coit tower, is that correct, for the museum store in the elevator? >> my understanding of lb requirements those extend predominantly to contracts, not to leases. they are required to meet all of our requirements around nondiscrimination and the like for hiring. but as a lessee, those subcontracting goals do not apply under my understanding to leases. but the question is better directed toward the contract monitoring division. >> okay. how about answering in terms of the spirit of the law? do we have a lessee that is a local business enterprise? are you aware? >> well, we have a lessee that does operate local businesses, absolutely. that is one of the businesses that the gentleman runs with his wife. also runs businesses in sonoma,

previously ran [speaker not understood] imports in sonoma. you know, as far as subcontracting, the lessee is going to be the proprietor that will be hiring staff. we will work with them to make sure they are hiring local san francisco staff. these are positionses that can readily be filled with san francisco residents so we'll work with them to accomplish that. for subcontracting, i think it will be a great extent to that. >> okay, thank you. >> supervisor mar. >> thank you. i wanted to say it looks like the vendor that was chosen scored quite a bit higher than the other two vendors. and you had a 5% selection committee that included at least one community member. i know that had come up in some past leases, but it looks like thises was a really good process you already mentioned

especially given how much community support there is for the project. i just wanted to verify, i know richard rothman who is a richmond district docent that goes to coit tower and a lot of tours that have been doing the tour of the new coit tower. they'll hire new employee, but they'll cope the set up as the docent, is that right? >> two time per week the public can register and then go on a tour of the murals, including murals that are inaccessible to the public that are on the second floor of the tower. what we're talking about is continuing those tours that are i believe the luxury city guyedx program, but also enhancing that to on top of that, we would be daily operating tour. we'll be adding to the viable work i think they have already shown there is significant

demand for and significant interest in. >> thank you, i really love coit tower and really envy president chiu for having it in his district. but it sounds like this will really make the experience better for everyone. thank you. >> supervisor avalos. >> thank you. i also wanted to talk about how excited i am about this lease and how i see coit tower to be shown -- how it should be shown as a museum, the amazing murals that are there, the great history of san francisco. they serve a wpa program in san francisco. and also i told [speaker not understood] the other day in district 11, one of the murals has a mural on alemany street, the mural will be preserved in that building for whoever will own it in the future. so, just has a lot of great history. we're actually able to preserve

with this lease and i just want to say thank you for your work. >> okay, colleagues, any further questions? okay. mr. rose, we have a budget analyst report, please? >> yes, mr. chairman, members of the committee, president chiu. on page 14 of our report we note that according to the rpd coit tower llc is estimated to pay percentage rent to rpd, a million 2 24,500. that would be in the first year of operation. and that is ~ 3 28,43 2 or 26.8% more than the renovate [speaker not understood] paid in 12-13 under the prior lease ~. revenues projected to increase 1,508,272 in the fifth and final year of the lease agreement and that's shown in table 5 on page 14. so, you'll note on table 5 over the five-year term of the lease of the initial term of the

lease, the projected total revenues are 6,5 58,87 2. on page 15 of our report, we state that because the city is responsible for maintenance of coit tower under the proposed lease, we recommend that you amend the proposed resolution to state that the maintenance needs of coit tower will be included in the city's ten-year capital plan. we recommend that you approve the proposed resolution as amended. and again, i'd be happy to respond to questions. >> president chiu? >> colleagues, i just want to let you know i circulated the amendment to the resolution to address what mr. rose has just mentioned on page 5. i would propose when it's time to consider the resolution that we add a further resolve clause that says the board recognizes the importance of providing for future capital needs at coit tower and the board intend to take the maintenance needs at coit tower in consideration when adopting the next ten-year capital plan. so, hopefully that addresses what mr. rose has raised.

>> okay. so, we have an amendment by president chiu on the floor. colleagues, any questions? motion to accept those amendments? >> so moved. >> okay. we can take that without opposition. [gavel] >> and the underlying item as a midctionveded -- >> you need to do public comment -- >> i didn't do public comment. my apologies. it's been five hours almost. we'll open up to public comment. anybody wish to comment on item number 5, please step forward? and anybody else who is not up first, please line up against the far wall. everyone has two minutes. thanks for being here. [inaudible]. >> stay there, stay there. good afternoon, my name is sandra sears and i'm here to represent [speaker not understood]. we are fully supportive of this measure and we'd like it to move forward. we actually operate [speaker not understood].

we have a family run business and we've been operating over 30 years and every day we have customers come in and inquire about coit tower and are interested in doing museum tour. we think it would be fantastic to know we could send our customers there. they would be part of a museum like experience. with a substantial program, they will be educated by knowledgeable information, accurate information about the art historical gem in the coit tower. we can do this process all along and we support it and hope it moves forward. thank you so much. >> thank you. next speaker, please. good afternoon, my name is davey crockett. i'm a san francisco realtor and i've known terry brim for about 15 year. i've had the opportunity to

experience his high-level hospitality at both the anchor and ken wood inn. and i can only say what he sets his mind to, he he does a very high quality job in term of visitor experience. and i'm all for it. so, thank you very much. good afternoon, i'm ann [speaker not understood], long-time resident of telegraph hill and involved in working at coit tower various times over the year including trying to improve the concessions for the last 5 to 10 years and i'm really delighted that the department has been able to put this forward and [speaker not understood] and delighted that terry grim is the person who is going to be responsible for it because i think he is the kind of person who can make this happen well. as you know, coit tower is not only a monument, but it's also a park. and, so, those of us who are in

the neighborhood use that park regularly and we rely upon the management of that building to work with the pork as well as. that makes a big difference to the neighbors as well as the visitors and the city. i urge you to move along this long thought concession agreement and hope it will come to fruition soon. >> ms. hall stead, one question. actually, mihal stead, could i ask you if [speaker not understood] has been part of the discussions ~? because i know it's right down the hill and i know that the families and the teachers that are there, are they a part of the pioneer park? >> i think i'm going to let julie christian son answer that. she's going to follow me. i have not been talking to the [speaker not understood]. i can't answer that question adequately. thank you. love the school. >> i would say i think it would be good for the new vendor to build good neighbor policies to reach out to not only the

neighbors, but also the many families. we did the pioneer park renovation in 2001 and worked with the school on a number of parts of that project. but i don't know what's happening right now. thank you. >> thank you. next speaker, please. do you want me to answer that question before the clock starts? garfield familieses tend to be more focused on the play grounds down the hill than they are the tower. the tower tend to get used more by seniors and single adults than by family because of the terrain. there have been improvements in the park, but their focus has been on joe di maggio playground and north beach library. my name is julie christian here. i'm here to ask your support for the lease [speaker not understood]. i'm one of the founding members of the park project. we were founded 19 years ago

this month. we are pro bono engineerses and volunteers, figured out how to make the tower ada accessible and ada compliant without making changes to the structure. it is now one of the prettiest places at the tower, erosion control, pedestrian safety. we continue to work with the department. at the time of the 2001 project we helped raise over 2-1/2 million dollars towards that renovation. in the last three years we continued to supply as much as $3 million [speaker not understood]. the one thing that has eluded us is an adequate concessioner, someone up to the task and equal to the importance and demands of the building. we believe mr. grim is that person. we are lucky to have him and we thank the department particularly cassandra costello

for pushing this rock over the hill. and to ann hall stead's point, a reminder that this tower is surrounded by a park that's actually 60 years older than the tower. and by the laws of physics it needs the same kind of attention that the tower does to be adequately maintained. thank you. my amazement at your stamina today. >> thank you very much. next speaker, please. my name is ken may lee and i'm here to express my surprise that it's not taken as long as i thought it would to get to this point. i'm sure you all are very familiar with how long it takes between community concern and city departments, but we are at a crucial point and i'm very happy to see this lease come before the committee and i'm hopeful it will go before the board with your recommendation. >> thank you very much. next speaker, please. hi, my name is umberto

[speaker not understood]. i have been a tourist at the coit tower and i have taken a bunch of friends to visit the coit tower so i am familiar with the beauty and intoerctiontionv of the tower and also i'm familiar with the services the tower used to offer. and i have known terry grim for about 20 years. i've seen him do a lot of things during this time from restoring beautiful cars to restoring old houses to improving hotels and [speaker not understood], and i'm sure they will do the same great job with the coit tower. thank you. >> thank you very much. next speaker, please. thank you very much, mr. president. and honorable members of the board of supervisors. my name is ben, and i'm a staff person at japanese tea garden in golden gate park. [speaker not understood] was

unable to a tedv today and she asked me and requested me to make this statement. we the japanese tea garden are a proud partner of the city and operation and management of the japanese tea garden's tea house and gift shop in september of 2009. we have seen how investments in the property have greatly enhanced your overall ontoerctiontionv to this cultural site in the city of san francisco. carol and the team have invested over $450,000 in upgrade to the tea house and to the gift shop. in partnering with the recreation park department, [speaker not understood] to make the tea garden fully enjoyable to all visitors. since taking over management of the concession, and the japanese tea garden, figures show that the revenues increased almost 40%.

we provide a welcome tea house experience serving a variety of japanese teas and japanese confessions, high quality, and unique japanese type gift item at the gift short, and a highly professional run operation ~. we frequently have guests to local residents who express positiveness and their repeat visits to the japanese tea garden. we are confident that the coit tower llc will present a similar positive experience to coit tower. with the proposal, improvements for the concession, educational meal tours, high quality book shop, and a professionally run operation. thank you very much for allowing this time. >> thank you very much. are there any other members of the public who wish to comment on this item? okay, seeing none, public comment is closed. [gavel] >> colleague, first before any comments, could i have a motion

to rescind the prior vote on those amendmentses? motion by supervisor mar. we can that without objection now. [gavel] >> president chiu? >> just one final comment. again, i want to thank all the members of my district and the community that worked on this. like many things in san francisco, particularly in the northeast neighborhoods, this has not been without controversy, but i'm very happy that we are where we are today and i appreciate everyone's patience both today and recent years. with that as i mentioned colleague, i'd like to ask the members of the committee to address mr. rose's point then move this forward with full recommendation. >> thank you, president chiu. supervisor avalos. >> yes, i can make that motion to make the amendment. first i want to say when it comes to buying my california t-shirts and my license plate cover, i'll go to fisherman's wharf and not coit tower. i make the motion to accept the

budget analyst recommendations and forward the underlying -- >> to be clear, president chiu's recommend,s? >> yes, to make the amendments that i have circulated. >> correct, okay, supervisor mar. >> so, those amendments have been seconded already? >> yes, i'm supportive. since the public comment brought it up, i wanted to thank the lowe family for over 20 years of running the concession stand at the site and i totally agree with mr. mccatch im about that size. my hope is the new vendors are sensitive not only to garfield school, but the historic significance of the site. i've always had a good experience there, but i see this will make the site so much better as well. i just wanted to make those comments. >> okay, supervisor mar. so, we have a motion on the floor that's been seconded to accept president chiu's amendments. we