>> good afternoon, welcome to the san francisco board of supervisors meeting of tuesday, july the 15th, 2014. madam clerk, could you please kale the roll? >> supervisor avalos? avalos present. supervisor breed? breed present. supervisor campos? campos absent. president chiu? chiu present. supervisor cohen? cohen absent. supervisor farrell? farrell not present. supervisor kim? supervisor kim? kim present. supervisor mar? mar present. supervisor tang? tang present. supervisor wiener? wiener present. supervisor yee? yee present. mr. president, you have a quorum. >> thank you. ladies and gentlemen, please

join us in the pledge of allegiance. i pledge allegiance to the flag of the united states of america, and to the republic for which it stands; one nation under god, indivisible, with liberty and justice for all. >> colleagues, we have our june 10th, 2014 board meeting minutes as well as the june 11, 2014 special meeting minutes of the rules committee. could i have a motion to approve those minutes? motion by supervisor mar, seconded by supervisor breed. without objection, those meeting minutes are approved. [gavel] >> and with that, madam clerk, are there any communications? >> there are no communication, mr. president. >> and could you read our 2:00 p.m. special order? >> the first item of the business is the policy discussion between the honorable mayor edwin lee and members of the board of supervisors. this week representing the odd districts, specifically districts 1, 3 and 11, the mayor may address the board initially for up to five minutes.

the president will recognize the supervisor who will present their own question to the mayor and follow-up questions are in order as long as the entire discussion does not exceed five minutes per supervisor. >> mr. mayor, welcome back to the board chamber. >> thank you, president chiu. good afternoon, supervisors, and welcome to the audience. thank you for joining us. even though it is summer, we are certainly not slowing down here in city hall and just last week i joined all 11 of you supervisors to introduce the children's and family charter amendment in order to assure our children and our youth and our families still thrive in the city. with this unanimously supported legislation and the support of our residents, san francisco will continue to prepare our children for their future and our city's future success. for the last few years we've made historic investments in our school district, with more resources being provided than any other time in our city's history. and as a result, today we have

one of the most top performing urban school districts in california, and by any measures in the nation. we launched programs like summer jobs plus and my middle school initiative, leadership initiative, making sure our youth have access to the latest and greatest technology to help them succeed in the 21st century. we've also worked together to provide fee muni for youth and we have world class parks and sports programs to keep our city's youth and families healthy this summer. but we know we have to do more and we have to make sure our investments lead to outcomes our cities deserve -- our city deserve and our kids deserve. that's why i'm looking forward to working with all of you on bringing this measure forward to join our efforts to improve the lives of residents, including a 500 million dollars transportation bond, my housing measure, and raising the minimum wage. thank you for your support and i know we have a lot of hard work ahead of us to make sure

we create an even better city, a city for the 100%. now let's get to your questions. thank you. >> first question will be by our district 1 colleague, supervisor mar. >> thank you, president chiu. thank you for being here, mayor lee. mr. mayor, we are all excited to have an opportunity to raise our city's minimum wage this november, and i'd like to thank you and your leadership on this issue. unfortunately, even with this potential increase on the horizon for many low-wage workers, many our workers face significant barriers to achieving economic stability and economic justice. chain stores also known as formula retail establishments are a major employment base for san francisco. there are approximately 1250 formula retail establishments in the city, accounting for about 12% of all of our retailers. the city has a strong interest in ensuring that the jobs created by these formula retail establishments are jobs that allow worker to meet basic needs and achieve economic

security. however, these employers have increasingly moved to scheduling practices that relegate their workers to involuntary part-time status and leave these workers with unpredictable and unstable work schedules, which contribute to the economic insecurity of low-wage workers. this unpredictable and fib stability in work schedules makes it extremely difficult for employees to plan a weekly budget, arrange for child care, take on a second job, pursue job training, arrange for transportation to and from work, or attend classes. these schedules significantly undermine workers' efforts to achieve economic security for them self-and their families. i'd like to thank president chiu for convening the task force that he's working with on many similar issues. giving part-time employees the opportunity to work more hours when the work is available advances the interests of the city as a whole by creating jobs that keep workers and their families out of poverty, and will help these worker meet

basic needs and avoid economic hardship. i am currently working on a proposal that would help achieve these goals. can i count on your support in helping this sector of our workforce? >> thank you for the question, supervisor mar. i would be happy to learn more about your proposal whenever you're ready to have it shared with us. i know that many of our constituents are having a hard time balancing jobs, kids, transportation, all the while trying to earn enough money to put food on the table and pay the rent. anything that we can do to make san francisco more livable and more affordable is a step in the right direction. that's why i've been so focused on job creation and supporting broad-based economic recovery for our city. and thanks to our economic resurgence, our city's unemployment rate that's dropped to 4.4%, with tens of thousands of residents back to work. i'm glad you mentioned the minimum wage increase that we are all supporting on the

november ballot. increasing pay for the first rung on the economic ladder is exactly one of those policies that help our city become affordable for people at all income levels. i definitely want to thank the board for its collaboration as we crafted this measure. i our elected leaders, private businesses organized laker and nonprofits came around this important goal and once again san francisco is showing the nation how it's done. this phased-in minimum wage hike will mean real tangible improvements to take-home pay for thousands of san franciscans. but i agree that increasing the minimum wage as important as it is will not in and of itself solve all of the economic anxiety that many of our residents are facing. i know that president chiu authored legislation last year that will hopefully lead to a more predictable and flexible work schedules for employees in the private sector. i think these kinds of meaningful policies can help

alleviate some of the stress of trying to work a full-time job while parenting, or taking care of a sick child. and as you craft your proposal, supervisor, i hope to work with you to identify economic principles that we want to protect. making sure people's work schedules aren't manipulated is important. and, so is creating as many quality jobs as we can for moderate income people. so, i hope we can work in a collaborative way to strike a balance. again, supervisor, i look forward to learning more about your proposal as you develop it. >> thank you. >> mr. mayor, i have the next question. as you know, last month supervisor kim and several colleagues introduced a ballot measure that would limit production of market rate housing based on the total percentage of affordable housing in our city. you and others have argued that such a measure is counterproductive and in response you introduced your building housing now about measure, which is a statement of support for construction of housing at all levels with language that would invalidate

key provisions of supervisor kim's measure. given our ongoing housing affordability crisis in san francisco, i believe we must move beyond a divisive november ballot fight that would actually not build new housing and instead focus on ideas such as a 2015 affordable housing bond and a right of first purchase for tenants. under what circumstances could we move beyond doing ballot measures and work together to meet the housing needs for all of our residents? >> supervisor kim, thank you for your question. the need to build more housing in san francisco is certainly one of the most important topics we can discuss right now. i crafted my building now measure because i believe san francisco should set ambitious goals for housing production and then work as hard as we can to meet those goals. our measure calls for 30,000 new housing units by 2020, a goal i proposed in my state of the city speech earlier this year.

but i'll pause here because i have to be mindful of the rules that limit discussions about current ballot measures, measures i may support, and measures i may oppose while here at the board chambers. i'll just say that i think there is broad consensus here at city hall that we need more affordable housing, affordable to people at all income levels. and i think that there is broad consensus that we need to direct additional resource ~s toward this goal. not just high end high-rises. my plan calls for 50% of this new housing to be affordable to low-income and middle income san franciscans. we need to stay focused on rebuilding the housing authority portfolio. we need to start producing housing at moderate income levels much more rapidly than we have in years past. what's stopping us from building affordable housing? i don't think we have a process problem, supervisor. we have a resource problem.

what we need is more funding for housing goals. and unfortunately, i don't see major cash infusionses from the state or federal government coming any time soon. instead, as a city we have risen to meet our own challenge and made significant progress in doing so. i have to thank the voters who approved a $1.3 billion housing trust fund for the construction and preservation of affordable housing. in fact, the budget you will review today includes an investment of more than $96 million over the next two years for this purpose. this major cash infusion is precisely what we need to tackle the housing shortage, more resources. let us not forget about some of the most vulnerable families in san francisco, those who live in the housing authority properties. my plan to reenvision public housing will improve the living standards for some of the lowest income, most at-risk people in san francisco.

and, again, these steps forward take resources. that's been my focus, and i'll continue it to be my focus, finding money to build and rebuild housing. i released a 7-point plan to stabilize and protect existing housing, streamline the creation of new market rate and affordable housing. because, supervisors, i believe there is a direct link between new market rate housing and new on-site and off-site inclusionary housing and land site control. we have to develop new units at all levels to ensure we have adequate low and moderate income housing to meet growing demand. supervisor chiu, i am deeply commit today this issue and i will support any proposal that includes public housing, affordable housing, and stabilization strategies. again, we need to focus on revenue strategies in the coming years. that's the only way we can build more housing that's affordable to more families and keeps san francisco affordable to the 100%.

i hope we can all work together on the common goals that we all share. thank you for your question. >> thank you, mr. mayor. and our final question for the day will be asked by our district 11 colleague, supervisor avalos. >> welcome, mr. mayor. in april of 2013, the board of supervisors unanimously passed my resolution urging the retirement board to divest from fossil fuels. in february of this year, the retirement board initiated level 1 passive shareholder engagement with fossil fuel companies, but they have yet to take any steps to divest from fossil fuels or limit the retirement fund's exposure to the financial riskses posed by climate change. in april of this year on kqed's forum program, [speaker not understood] and several other

experts who explained how the retirement board could responsibly divest from fossil fuels while maintaining their fiduciary duty to protect and grow our retirement funds. mr. mayor, how do you propose we work together with the retirement board to divest from fossil fuel companies and reinvest in less financially risky sectors of the [speaker not understood] and create local jobs? >> thank you for raising this issue, supervisor avalos. let me begin by saying that i'm always willing to work together to support our local economy and create local jobs. as a prime example, i'm excite that had we could bring additional funding to go solar s.f. through in year's budget to do just that. our commitment of a 4, $5 million a year to go solar s.f. will continue to create local green collar jobs and has contributed the creation of locally produced 100% green energy. these are the kinds of meaningful investments that actually deploy dollars,

creates jobs, and moves the needle on green energy. but the point of your question, supervisor avalos, i understand that last year the board of supervisors passed a nonbinding resolution urging the retirement board to divest from the top 200 publicly traded fossil fuel companies. i also know that the san francisco employees retirement system under the very professional leadership of executive director jay housh, and retirement president victor [speaker not understood] has been actively working on this issue. also, i have already reached out to your board of supervisors' representative on the retirement board, supervisor malia cohen to discuss fossil fuel divestment. i suggest that you continue to support her work to be the eyes, ears and voice of this elected body at our retirement system. when you are dealing with a retirement system that manages over $19 billion for more than 60,000 current and former

employees, you can't simply divest from half a billion dollars in one sector without fully understanding the consequences and alternatives. the san francisco employees retirement system apps rules clearly state that in no event neither social investment policy take precedent over the fiduciary responsibility of producing investment returns for our city's retirees. so, what options are we left with? as you mentioned in your question, the refirethv board took a step in february to initiate shareholder engagement by enacting social and investment policy under level 1. i do know that the commission is analyzing the feasibility and impacts of their engagement with fossil fuel companies to level 2, which is a more active position to promote social rights and interests. the retirement board underwent a long education process about the various levels of engagement, and ultimately they need to decide which of the levels is most effective to accomplish our goals.

i know the commission does seriously consider the fiscal consequences of divestment, and sometimes they decide the benefits outweigh the costs. for example, the commission has in the past divested from big tobacco, apartheid south africa, and sudan. i am supportive of targeted divestment, but it needs to be done responsibly, both for society and for the retirement systems' members. i trust the retirement board and staff to make the right decisions in this regard ~. thank you for your question. >> that concludes today's question time. thank you, mr. mayor. colleagues, why don't we now go to our consent agenda. madam clerk, can you read items 2 through 7? >> items 2 through 7 the consent calendar is considered routine. if a member objects an item may be removed and considered separately. >> colleagues, would anyone like to sever any of these items? roll call vote. >> on items 2 through 7, supervisor farrell?

farrell aye. supervisor kim? kim aye. supervisor mar? mar aye. supervisor tang? tang aye. supervisor wiener? wiener aye. supervisor yee? yee aye. supervisor avalos? avalos aye. supervisor breed? breed aye. supervisor campos? campos aye. supervisor chiu? chiu aye. supervisor cohen? cohen aye. there are 11 ayes. >> these items are approved. [gavel] >> why don't we call item number 8. >> item 8 is an ordinance calling for providing a special election to be held in the city and county of san francisco on tuesday, november 4, 2014, for the purpose of submitting to san francisco voters a proposition to incur the following bonded debt of the city and county; $500,000,000 to finance the construction, acquisition, and improvement of certain transportation and transit related improvements.

~ chapter 37. >> colleagues, can we take this item same house same call? without objection this ordinance is finally passed. [gavel] >> and if you could call items 9 through 38 related to the budget. >> item 9 through 38 are the annual appropriations salary and associated fee ordinances and grant resolutions. item 9 is the annual budget and appropriation ordinance appropriating all estimated receipts and all estimated expenditures for selected departments of the city and county of san francisco as of june 2, 2014, for the fiscal years ending june 30, 2015, and june 30, 2016. ~ selected departments. item 10 is the annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fiscal years ending june 30, 2015, and june 30, 2016, continuing, creating, or establishing these positions; enumerating and including therein all positions created by charter or state law for which compensations are paid from city and county funds and appropriated in the annual appropriation ordinance; authorizing appointments or continuation of appointments thereto; specifying and fixing the compensations and work schedules thereof; and authorizing appointments to temporary positions and fixing compensations therefore. ~ 2016. item 11 is the ordinance amending the administrative code to adjust the fees for county clerk services for fiscal year 2014-2015; to remove fees for obsolete services; and to authorize annual automatic adjustment of municipal id card fees to reflect changes in the consumer price index. ~ id cards. item 12 is the ordinance amending the administrative code to eliminate the mayor's office of housing and community development escrow account

administration fee. ~ community development. item 13, ordinance amending the building code to reduce all fees for staff services by 7% for a 6-month period and affirming the planning department's determination under the california environmental quality act. ~ 6-month period. item 14, ordinance amending the planning code to eliminate 4 fees, including the installment agreement processing fee, the refund processing fee, the fee for information analysis request for information technology, and the reactivation fee foreclosed cases; making environmental findings, and findings of consistency with the general plan, and the eight priority policies of planning code, section 101.1. ~ closed cases. item 10 is the ordinance amending the subdivision code to adopt a fee to set survey monuments and affirming the planning department's determination under the california environmental quality act. item 16 is an ordinance amending the administrative code to define "art enrichment"; to allow aggregation of art enrichment funds for use on any city property rather than only the funding department's property; to allow the arts commission to reserve up to 10% of the art enrichment budget for maintenance and conservation; to allow art enrichment funds to be used exclusively for maintenance and conservation under limited circumstances; and to clarify references to the arts commission's jurisdiction over works of art consistent with the charter; and making environmental findings. ~ public art. item 17, ordinance adopting the neighborhood beautification and graffiti clean-up fund tax designation ceiling for tax year 2014. item 18, ordinance amending the building code to authorize use of the repair and demolition fund specified in building code, section 102a.13, to address costs associated with private property owner responsibility to stabilize telegraph hill, as part of the rock slope improvement project, and affirming the planning

department's determination under the california environmental quality act. ~ improvement project. item 19, ordinance amending the health code to set patient rates and other services provided by the department of public health, effective july 1, 2014, and making environmental findings. item 20, ordinance appropriating an additional $14,496,012 for the veterans building seismic upgrade and improvement project of the department of war memorial for fiscal year 2014-2015, and placing the total appropriation of $14,496,012 on controller's reserve. item 21, ordinance amending the park code to require the controller to increase the berthing license fees for the west harbor of the san francisco marina small craft harbor each year by 3% or the annual increase in the consumer price index, whichever is higher, until september 1, 2043; and making environmental findings. ~ consumer price index. item 22, resolution amending the city's ten-year capital expenditure plan for fiscal years 2013-2014 through fiscal year 2022-2023 to increase to $500,000,000 the proposed transportation and road improvement bond. ~ 500 million. item 23 is resolution concurring with the controller's establishment of the consumer price index for 2014, and adjusting the access line tax by the same rate.

item 24, resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by city and county employees, for the following services: budget analyst (board of supervisors); lgbt anti-violence education and outreach program (district attorney); city-wide custodial services (excluding city hall), city-wide security services, central shops security, convention facilities management, and security services west south of market (general services agency-city administrator); mainframe system support (general services agency-technology); security services (human services agency); food services for jail inmates (sheriff); assembly of vote-by-mail envelopes (department of elections); security services-1680 mission street and security services-30 van ness avenue (general services agency-public works). ~ certain services. item 25, resolution authorizing the acceptance and expenditure of state grant funds by the san francisco department of health for fiscal year 2014-2015. item 26, resolution authorizing the execution and delivery, from time to time, of tax-exempt and/or taxable commercial paper notes in an aggregate principal amount not to exceed $41,000,000 to provide financing for the costs of the acquisition of furniture, fixtures, and equipment for the san francisco general hospital and trauma center project and authorizing other related actions. ~ center project. item 27, resolution approving the fiscal years 2014-2015 and 2015-2016 expenditure plans for the human services care fund. item 28, resolution approving a waiver of the payment in lieu of taxes for fiscal years 2014-2015 and 2015-2016 from the housing authority of the city and county of san francisco. ~ housing authority. item 29, resolution approving

expenditures from the budget savings incentive fund for one-time purposes in fiscal years 2014-2015 and 2015-2016. item 30 is a resolution approving the budget of the office of community investment and infrastructure, operating as the successor agency to the san francisco redevelopment agency for fiscal year 2014-2015. item 31 is a resolution approving the san francisco children and families commission expenditure plan for the public education enrichment fund for fiscal year 2014-2015. item 32, resolution approving the san francisco unified school district expenditure plan for the public education enrichment fund for fiscal year 2014-2015. item 33 is a resolution approving the budget of the treasure island development authority for fiscal years 2014-2015 and 2015-2016. item 34 is a resolution authorizing the execution and delivery, from time to time, of tax-exempt and/or taxable commercial paper notes in an aggregate principal amount not to exceed $14,500,000 to provide interim financing for the costs of seismic upgrade of and improvements to war memorial project and authorizing other related actions. ~ war memorial project.

item 35, resolution retroactively authorizing the department of public health to accept and expend a grant in the amount of $166,446 from public health foundation enterprises, inc., to participate in a program entitled san francisco bay clinical trials unit for the period of december 10, 2013, through november 30, 2014. ~ clinical trials unit. item 36, resolution retroactively authorizing the department of public health to accept and expend a grant in the amount of $162,313 from the national institutes of health to participate in a program entitled "a probability-based survey of hiv risk among transmen using a novel sampling method" for the period april 1, 2014, through march 31, 2015. ~ transmen. item 37 is a resolution retroactively authorizing the department of public health to accept and expend a grant in the amount of $322,645 from the health resource he and services administration to participate in a program entitled ryan white part c outpatient eis program for the period may 1, 2014 through april 30, 2015, and waiving indirect costs. ~ outpatient program. and item 38 is a resolution retroactively authorizing the department of public health to accept and expend a grant in the amount of $556,874 from the centers for disease control and prevention to participate in a program entitled "medical monitoring project" for the period of june 1, 2014 through may 31, 2015. >> thank you, madam clerk.

supervisor farrell, the budget chair. >> thank you, president chiu, and thank you, madam clerk, for reading all those items. so, colleagues, with our budget this year, very pleased we were able to come to a unanimous vote at our budget committee again this year, and in record time, to pass out our 14-15 and fiscal year 15-16 budget out of committee. as we all know, giving the diversity of opinions and political perspectives on our board, this is easier said than done, but i think that we're proving that we can do it and in fact work together. i really want to thank my fellow committee members, supervisor wiener, supervisor breed, supervisor mar, and supervisor avalos and in particular supervisor avalos for once again his leadership during the budget process this year that cannot go understated. compared to a roughly $585 million budget deficit the first year that our class of supervisors came into office, thing e