tuesday, february 4th, 2014, this is the special meeting of the building inspection commission. i would like to remind everyone to please turn off all electronic devices. the first item on the agenda is roll call. >> president mccarthy? >> here. >> mar. >> here. >> clinch? >> here. >> lee. >> here. >> mccray. >> present. >> melgar. >> here. >> commissioner walker? >> here. >> we have a quorum and the next item is item two, discussion and possible action

on the proposed budget of the department of building inspection for fiscal years 14, 15, and 15, 16. in order to pass, it will have to have a vote of five out of the seven. >> good morning, my name is gale and i am the acting chief financial officer for dbi and i made the presentation of the budget at the last meeting. i am happy to say that i have not made any changes to. and the only question that i have received between the two meetings was whether or not we had any funds available for promotional activities related to the 25th anniversary of the earthquake, we don't have anything specifically for that event but we do have funds for promotional activities in the department as a whole. and we can definitely do something with the existing funds that are in the budget. but that is the only request that i have received in the

last 2 weeks. i do except some minor changes to work orders and i thaneds one of the work orderses is going to go up a little bit and the hsa worker is going to be down and they all come out in the wash and minor charges over all and i have nothing else to present at this time. >> i think that this might be the quickest meeting, and i just wanted to obviously take you again and the one thing that and we did talk about this last week and more and more the expansion plans and the office, and i know that it is director has talked about a numerous occasions the key for me and you have, and i forgot the dollar amount but i think that it is over a million dollars that you for to do the investigation and how to expand the space and all of that? >> and so in this current

fiscal year we have $400,000 to do a facility master plan and so we have partnered with the department of public works and they have hired a consultant and they have looked at our existing staff and space and come back with a recommendation that we need more space and the question now is there is fine tuning that is going to happen with how many people do you think that bewill grow to the near term and how many conference rooms do we need and we are going to expand that analysis a little bit into, once we determine exactly how much space we need and what spaces or what are our options and that is going to happen this year with the money that is already budgeted. so if we decide that we need the current building is 66,000 square feet, if we decide that we need roughly 95,000 square feet, these are very ballpark numbers, then they will say okay, if you need 95,000 square feet you can add on to your building at this cost, you

could move into a building in the civic center plaza which would be about this cost or we can build a new building and it would be about this cost so next year i suspect that they will finish all of that type of analysis and we will be moving forward with whatever option and the consultation with us and the mayor's office and there are a lot of people that will be involved so we will take the next step next year and starting over towards whatever resolution seems best, so all parties involved. so what we did since we don't really have an idea of what that resolution is going to be, at this time, we put a half a million in next year's budget for general planning for whatever it is that we decide that we want to do and then we know whatever that is going to cost money. and so we put in another million in the following year, a million and a half between the two years. as you guys know, that we have to and you have to approve the budget today, hopefully and, then it goes to the mayor's office at the end of february

and the mayor does not actually present the budget to the board until june first and some time between now and june first if they have a better idea they may change those numbers and may say we have this perfect building at the corner of market and van ness and give the exact amount of space for x, money and then we might change what is in the proposal that the mayor will put forward to the board, but we don't really know, so the money in the budget is a place holder. >> commissioner walker, so they will do that without us approving it or having any say about it? >> i will expect to come back to you guys to have a say. >> that would be good. >> yes. and my understanding is that you guys need to have a say, the mayor's office, well obviously will have a say and so will the capitol planning committee and we have been clear that all players need to have a say before we spend what is likely to be a significant amount of money. >> great. >> is there a time line when the mayor has to get back to us about any changes, for example,

if they get the budget in february, do they have to come back to us before by april or march. >> they don't have to come back to this body at all and so they can make changes all the way up to the week before they present the budget in june. and they generally do that in consultation with me and the director. but, it does not necessarily come back to this body. and any large changes we will communicate back to the body but we may not know when they are and may happen at the last minute. >> but we do as a commission have an opportunity to go to the budget hearings and voice our concerns. >> you always have that opportunity. >> i guess that the big thing and what i am hearing is, even if we were to hire more people, now, which we look like we are going to be constantly building here, we don't have anywhere to put these people, it is not a hiring problem that we have right now, the bigger problem is a space problem. >> that is true. we could add a few more people into the existing space, but we could not add a significant

number of people to the existing space. the other part of the discussion that we have been having recently with the department of real estate and the mayor's office is could we do a satellite office? is there another office in the close vicinity to dbi that we could rent for more space? and that is still in discussion and one option that was given to us was too far away and so they are looking for an option that is a little closer as a possibility for hiring more staff. >> all right. okay. i think that will be our big challenge, when we first, twoiers ago we were trying to get on it three years ago trying to get back on a mode of hiring people now we are catching up now and the next problem is to keep that flow of nutrition, and of good people coming aboard over the years, where are we going to put them. i think that this should be a big focus on that. so, but otherwise, congratulations, well done. >> thank you. >> and hopefully they will not give you too hard of a time at the supervisors, and the budget committee may i say. >> is there any more questions? i see none, and it looks like

we can call the motion. >> okay. >> is there public comment on this item? >> seeing none, is there a motion? >> i move to approve the budget. >> i second. >> a motion, and a second. so the roll call vote. president mccarthy? >> yes. >> vice president mar? >> yes. >> commissioner clinch? >> yes. >> commissioner lee. >> yes. >> commissioner mccray. >> yes. >> commissioner melgar. >> yes. >> commissioner walker? >> yes. >> the budget is approved and passes unanimously. >> and as a reminder, our next regular meeting is on february 19th. >> okay. >> and the next item is adjournment. is there a motion to adjourn? >> move to adjourn. >> second. >> thank you. >> all in favor?

>> aye. >> aye. >> aye. >> aye. >> closed and adjourned. >> thank you commissioners for coming in. good morning and happy new year. >> happy new year. go 9ers. all right. (clapping) well, thank you all for km i know there are symso many

departments ease our newly scorn or sworn in actually 4 times sworn in and our fire department and mary from treasure island and our commissioners that have been sworn in and about to be sworn in. today is a great day where we've got 44 appointees people who are upping upism in taking open this fantastic responsibility in representing our city in being what i have also said we need con did you notice to run this fantastic city. so i want to say thank you your recreation and parks department some 16 different bodies for our city and county of san francisco. and let's say it runs the

gambling bit of how we manage a great city like san francisco. you've got people joining in the arts community and people joining in our bay adversities committee representing a community that i think we have to pay attention to and we'll up the ante on ourselves to do more. you've got people in building inspection you've got folks that are going to top responsibility in fiscal entities, you've got advisory council committees and preference and people that are going to help us entertain more of our adversity and resident whether in the arts or treatment we've got folks for the oversight for the puck promise

when they provide for money important the bonds we see that the projects get down, health care and housing, local business which is a big farther of ours because we want to promote more of the success of a local business we've got people coming into help us and small business owner, of course, is treasure island. this is running the gambling bit of responsibilities our city has taken on i want to personally thank alleyway all 44 of you joining me not only will you help share in the from successes but the flag we get from the public and i need more people to share in that responsibility (laughter) but i also say thank god thank you too because f this is one of

the greatest cities in the world and for you to take up personal time, personal effect and sacrificing sometimes with family and a friends is credible. this is what makes our city special. you look at all the city's and great cities it depend upon their citizenry to bring out the best of our resident to hear and be those effective conduits. i'm going to ask you to pay attention to the responsibility you occur in our bodies of work but pay attention to issues looish like affordability and housing and people being hurt or the folks on the streets or the need to produce a better health plan and health care. all the things that make our

city great no matter if you sit on entertainment or arts paying attention to the quality of life for everyone is important. for me it's about collaborating and you be thinking freely. this need not be your issue but if you pay attention you'll find of the conduits whether you're fire or local business you'll find the conduits that make the collaboration better. thank you for thinking outside the box and thank you for being responsible citizens that take up the cause for all of us. let's go and precede and if i can i would like you all to stand. and when you raise our right hand i would like you to repeat

individually each of our names and the entities upon which you are about to enter for this fantastic responsibility. so i ask you to please join and raise our right hand after i please repeat your name and the committee or body you'll be joining. i >> i state your name. >> thank you likelihood and clearly. >> repeating.

>> ed. >> jamie hope and citizens committee. >> (inaudible). steven adams soft story commission >> loudly. >> paul. >> ken arts division. >> harland kelly regional finance. >> leslie. >> lee row housing authority commission. or not advisory council. >> bond oversight.

(inaudible). faye >> be (inaudible). rubin santana advisors >> joan i didn't advisory committee and a rebecca ryan's sense oversight bond. >> entertainment commission. >> bayview citizens advisory committee. >> (inaudible). theodore miller >> james mccray junior building inspection commission. >> all right. >> do solemnly swear. that i will support and defend

the constitution of the united states and the constitution of the state of california against all enemies foreign and domestic that i will bear true faith and alliance to the constitution of the united states and the constitution of the state of california that i take this obligation freely without any mental restoration or purpose of evaluation and i will well, and faithfully discharge the duties about which i'm about to enter and during the time as i hold the office of for the city and

county of san francisco. congratulations and thank you very much >> happy new year everyone. thank you (clapping)good afternoon and welcome to the special meeting of the

joint city and school district select committee. first of all we would like to thank the staff at sfgtv that record our meetings and make the transcripts available on line. and a special thanks and our clerk today and are there any announcements? >> there are none. >> thank you. and i will have a motion to excuse supervisor avalos who couldn't be here at today's meeting. we have a motion and i want to recognize that we have supervisor farrell as well as president fewer, commissioner wynns and commissioner norton and happy new and it's great to be here and i am looking forward to chairing the process again this

year. madam clerk can you call the first item. >> thank you. this is a hearing on the unified school district surplus property portfolio and sponsored by you. >> thank you madam clerk. so this say hearing that our office had last year working with commissioner mendoza and i worked on many years ago at the board of education when we examined the list of surplus property from the school district and started to look at what are ways that we could utilize district district property in a way that benefits the school district. we had a achievement a couple of months ago. i know the commissioners worked on a resolution which included a swap with the city and county of san francisco to

build affordable housing on 1950 mission as well as 1101 connecticut. am i getting that address correct? for sf hope strategy in exchange for the parking lot site on 555 franklin and the school district can develop and has a lease for as well so this is an overall strategy around surplus property to learn a little more about t the mayor of san francisco has made a commitment to see what we could do on the city's end and how we strategize our surplus property as well and we david golden from the school district here today and i would like to open up the presentation to him. welcome. >> good afternoon commissioners and supervisors. actually i'm impressed how i draw audiences

these days so clearly the word was out that i was speaking today. so this is not the first time that the school district has certainly talked about surplus property. two or three grand juries later, a whole lot of school board presentations, a lot of public interest and comment over the eight or nine years that i have served as the chief facility officer for the district and we have been working diligently on this issue and other property related issues for a long time, and i want to walk you sort of where we are and what we're up to. i think we've had a particularly successful last one or two years after 25 years of general inaction so i think things are

finally coming together for a fairly successful strategy. one of the things you should know is the district has a very active real estate working group which is comprised of deputy superintendent lee, chris armtrout, our general counsel, don davis, myself and our business officer joe grasoy and we meet every week and discuss issues of real property and transactions so there is a continued on going presence regarding leveraging surplus property, generating revenue for the district and trying to make the best possible business decisions we can for some of the finest -- actually property portfolio in san francisco. so to go to the first slide, and i don't know if he's going to call it up on the tv screen, on the

projector. can you do that? >> [inaudible] >> okay. so san francisco for those of you that are not familiar -- i know supervisor kim certainly is very familiar. we have over 155 of the finest real estate in our portfolio in san francisco. over 9 million square feet, thousands of classrooms. once upon a time we served over 90,000 students and today we serve about 55,000 but the number of programs and things going on in our schools has expanded exponentially. there is a perception in the community and in the city that we have lots and lots of empty buildings, and the reality is that's simply not true.

currently there are only three sites with structures that are vacant and not in use. 200 middle point road, 1950 mission and the former site on 42nd avenue. we only own two sites with no buildings on it, seventh and loton and on connecticut so part of the messe that the school district is trying to get out to the community, particularly for instance from charter schools who think we have an abundance of empty buildings we actually have vibrant school communities in the buildings and even if the population of those schools is lower we have expanding special needs, expanding child care, we have pre-k and programs filling up these classrooms. for those

of you that ausknow the education code makes it hard to sell school property and that's on proper because in the 50's and the 60's school boards popped up and we can have a fire sale and raise money and send it on whatever we want and no one knew what happened and those people were voted out of office so the education code changed the way you can sell property. they make you go through an incredibly elaborate process to identify surplus to have a committee hear that, to go to the community and hear public comment and have the school board declare what is surplus and what is not and there are defined and difficult steps that one has to go through to finally dispense with a piece

of property. in the end that is because our land is actually the heritage of the school district. it's our trust with the students of san francisco and we have no way of knowing 10 years from now whether we will need new schools, whether we need less schools, whether there will be more or fewer children so this is our legacy that we need to pass from generation to generation and be extremely careful how we leverage it and sell it and to that end fundamentally for the most part the district has developed a over riding strategy better to make long-term ground lease business transactions on our property, retain the ownership of our property, generate long-term and regular revenue that can hit the general fund

rather than sell a piece of property, generate one time dollars, and then have no longer that asset in our portfolio, and you will see as we go on that's been our general policy and there have been a couple of specific exceptions to the policy because of other over riding concerns. okay. if you look at the properties that we lease we lease about 11 properties and we generate almost $6 million in revenue a year. all of that revenue can hit the general fund -- excuse me, hire teachers, buy books, do whatever the district would like. the total revenue about 5.9 million and that counts the two and a half million coming online this year with the acquisition of 1235 mission where the city's health and human service department is which is a building that we took ownership this year generates

almost $6 million. we take in another 1.3 for short time permits and the district is generating over $7 million a year just from the properties and the three biggest you can see are 1235 mission, 1440 harrison, also leased to the city and the fifth and market property which is where nordstroms is. okay. in may of 2007 the board of education asked that we convene a surplus property commission that went through all of its steps, and -- i apologize, about six months prior, and in may the board of education declared certain properties actually as surplus at that time, and gave certain flexibility of up to 20% of the