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>> good afternoon. welcome to

let board of supervisors of tuesday, march 18, 2014, madam clerk, call the roll. >> supervisor avalos. supervisor london breed. supervisor campos. president chiu. supervisor cowen. supervisor farrell. supervisor kim. supervisor mar. supervisor tang. supervisor wiener. supervisor yee mr. president, all members are present >> thank you ladies and gentlemen, could you please join us in the pledge of allegiance. and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all.

clearances we have our february 11th board of meeting minutes motion by supervisor mar without objection those are approved >> are there any compulsions. >> no one. consent calendar 1 through 8 those are the items to be severed if any member obtains >> roll call on consent calendar. >> supervisor breed. supervisor campos. supervisor chiu. supervisor cowen. supervisor farrell. supervisor kim. supervisor mar. supervisor tang. supervisor wiener. supervisor yee.

supervisor avalos. there are 11 i's. next item. an ordinance to amend the administrative code for the public utilities commission are considered local in the local hiring policy projects located within 70 miles of the jurisdictions of san francisco >> colleagues, same house, same call? . this ordinance is finally passed. next item and item 10 to accept the maintenance of shore alley approving an encroachment permit for the construction deferring a portion of occupancy and adapting the recite finding >> same house, same call? this ordinance is finally passed item 11 and is an ordinance to

appropriate approximately 4.5 million from the general reserve to the nonprofit program and plaguing those items on budget and financial reserve from the work group. president chiu >> todaycy i ask for a fund to assist the nonprofit that have been experiencing high rents public utilities we all know there's an urgent need to address this mriebt. last october a budget analyst report that was requested by the supervisor kim found between 2011 and 2013 average commercial rents increased by 53 dollars per square feet and vacancy rents decreases. he i've proposed an additional

special that is funded by the cities projected income the benefits that our city has received the hope is that that be used to help supplement the migrate of the nonprofits. this increase is based on the revenue combroethd so likely to actually be a larger amount as additional construction projects are completed. supervisor avalos in our budget committee asked for $2 million for struggling arts nonprofit organization in the area i'm happy to support. this is one piece of a collaborative effort to address the needs of nonprofits organizations that provide vitality services to our residents the mayor's office of housing of development and the inspires recommend policy

solutions. the appropriation will be directed to the artists group for the recommendations which could be grants for rent be subsidies and capital improvements and real property acquisition they won't list their recommendation but those funds will be placed through reserve. i know the working group already has a draft report and will be giving the recommendations i ask we approve this recommendation today so the funding will be available so their recommending we perspire intents the various needs in the community. i also want to announce the survey to obtain more data of the nonprofits in the area and has found that a quarter of the

90 organizations have inspiring i expiring leases and more have technical needs as well. we all know tenants in commercial buildings or affordable housing rent control housing have been impacted it's incumbent to act now i also want to thank supervisor kim and staff and supervisor avalos and supervisor mar for their sponsorship as well as and supervisor kim. thank you chair. first of all, i want to appreciate supervisor chiu p in working on this important issue facing our nonprofit organizations that provide organization and, of course, the cult of arts. when you're office first called for a non-displacement back in the fall we asked forbid a group that met on an annual period as

well as the mayor's office to help to support the nonprofits squeezed out of the tenderloin and market area. it is great to see there's financial success in the neighborhood but one negative aspect is the commercial rates are going up and it impacts many of the support services that our residents don't think. i want to appreciate that president chiu was thoughtful f in ntd ways to capitalize on this and the additional taxes we've received since the mid-market corridor and to address the nptsz who are displaced by the commercial rising rents. i'm supportive of this as one solution to support our nonprofit organizations. it's important to appreciate this it - appropriate this today

to get the money out the door of organizations that are facing those needs. they have a survey to that 3 hundred organizations and received responses from 85 of them describing their needs. 22 of those organizations have leases expiring this year and will need substance. those 22 organizations will be located throughout the city not only in our district. those organizations need immediate help and this funding will perspire intents those organizations to bridge short-term capital needs related to unexpected rent increases. this is one of the impacts that is fueling the demand for more office space. as i said when we first passed the tenderloin tax exclusion we

would be account to our community to make sure that no one is left behind. as a committee we agreed to have this item on budget refers until it has cleared the perimeters i do think it's important for the group so have direction in terms of what they're to do to stabilize the nonprofits i expect the work group to finalize their report so it can begin as early as may. i will add there are concerns about why appropriating those funds today, the organizations are depending on the fund to be available by may. many of them have leases that need to be renegotiated so i'm anticipating what this outcome will be. so also i think there was a

question about why not have this be part of our regular budget allocation process this is a one-time allocation it's not reoccurring in our budget process and the work group processes can address this issue. you can continue to work through the budget process once we have outcomes for the non-stabilization program if you have any questions, i'll be happy to answer them but looking forward to your support i'm passing this today >> supervisor wiener. thank you, mr. chair. i have quite a few of the questions about this measure. and i'll purpose this by saying i'm supportive of the expect of providing basic emergency assistance to our nonprofits. i have i can't count the number

of nonprofits i've heard about or come to me saying either our landlords have doublgd the rent we can't find the appropriate space in the city and i know nonprofits have moved to oakland. this is a crisis and i'm supportive of the city to trying to find a way to help. my concern and is that this supplemental from what i can tell has notolysis there's no definition around it. i don't know what's going to happen after we adapt this and i'm a little uncomfortable so this is an initial matter i don't know to address this to supervisor kim >> through the chair. >> yes. through the chair the

first is that the supplemental does not specific the geography of the good times who can access it. nor the subject matter. and so my question i keep hearing talk about nonprofits in mid-market being able to access this and different subject matters as nonprofits. and so my question is why are are we talking about mid-market in connection with this when it's not in the legislation and when we know that their nonprofits all over the city who are being priced out >> so to answer the question this fund will be available citywide. the work groups we've initiated

back in the fatal came from examinations from nonprofits in district 6 squeezed by the commercial rent you read in the budget analyst report that harvey roses office put together the rate is 2 percent in the market area, however, the funds will be available citywide the commercial rates are going up all over >> in terms of the process thank you for that. in terms of the process i know there are various city departments that are mentioned between the commission and mayor's office of housing how is this going to be administered and who's going to decide ultimately we're past the appropriation but the departments administer and what

criteria >> commissioner. >> i don't see anyone. >> this was looked to the work group as written by president chiu the 2 million will be allocated to the commission. both issues they need funds for but are they're looking at nonprofits costs and figuring out ways to find pro bono services but we'll have director mccain i didn't >> just so you know we're calling the mayor's office of housing to send someone here. >> that's great. >> so we have the director of the arts commission.

>> yes. so the arts commission has been working with the mayor's office of housing and community development in regards with the working group. so the supplementals are being discussions we're looking at a recommendation that is universally aligned. there are aspects of the arts and cultural solutions one is the trust that's an existing model that's helped acquire the cultural center and the building on turk street but we are looking at preliminary recommendation to issue an rfp that could respond to the needs of the nonprofits? a timely fashion. there are 3 buckets we're looking at in terms of support there is immediate technical assistance both for pro bono and

real estate existence for the discontinued lease. we will look at possible bridge grants and extend their lease or found temporary space. we're looking at space sharing models and nonprofits can share space so that intermediatey would work with the work force development to see where a nonprofit can relocate to >> supervisor wiener. >> so this started out at the 2.5 million and the committee added 2 million for arts so the other 2 and a half million is that through the chair to supervisor kim is that money eligible for basically any

nonprofit for the subject matter. >> supervisor wiener president chiu had something to add. >> i hope the mayor's office will be here soon but the general funds would be subject to a competitive rfp process that will be managed through his office it will be managed that way. >> mow low administer it but in terms of the subject matter for the other 2 and a half million stiletto chair to supervisor kim is that any subject matter any nonprofit in any subject matter other than arts and we've not limited the scope. >> but 2 million almost half of it is for arts. >> that was made by supervisor

avalos. >> i'm supportive supporting our arts organizations that are really struggling but i'm not - i don't know totally understand why half of the provision go to one organization while other youth organizations that are also struggling. and then just two final things one question when this comes back from budget reserve will that go to the 5 percent budget committee or the 2 percent >> that is a question for supervisor farrell. >> and then my final question is i'm wondering and understand it would be inappropriate for us to decide whether to sustained spend it on conditions of the

organizations that would be an appropriate thing but wondering why we're countering this before we have more detail in terms of the rfp process will be and the criteria will be. right now it's very general the b l a report says there's an rfp process but i'm wondering why now instead of determine whether to do this knowing the structure and criteria will be i know it's time sensitive but it's a large amount of money >> is there anyone who can answer that. >> supervisor kim. >> yes, i'm happy to respond. just to give history behind the

money 2.15 million is the tax increment we'll gained due to the revitalization so all the companies moving there with the highest vacancy rate now the lowest in the city. many nonprofits are excited to see this and feeling the squeeze so in many ways the economic growth should go directly back into the negative growth the displacement that's how the 2.5 million was developed it came through supervisor chiu and working with the controller's office. how the 2 million was actually come up with i'll let supervisor avalos address that we didn't come up with that number. this is our comen