>> thank you. next speaker, please. >> good afternoon. my name is lyell a, i'm speaking in support of the park. i moved to san francisco from the midwest 15 years ago. the first thing i was struck by was all the criss cross wires so much holding a city down, a city i thought would be so green. the opportunity before you, before us to create an open space beautiful narcotics -- park that the entire city enjoys is very important to me. i encourage the board of supervisors to approve this motion. >> thank you very much, next speaker, please. >> good afternoon, my name is andy chiu with the downtown

ymca. chuck collins our present ceo has written a letter in support of this. we are looking forward to this new park. my experience in working with the families in the neighborhoods, chinatown doesn't have a lot of open space. this is what's needed and i thank you for bringing all the children to this brand new park. thank you. >> thank you very much. are there any other members of the public who wish to speak on item no. 2? seeing none. public comment is closed. colleagues, i want to thank you for sitting through this item and as all the public comment and as has been mentioned this is a project that's been talked about for decades, six plus years and through my office with a lot of work and the parks and recreation department and puc. i appreciate your hearing

involvement from all the community and a lot of people have taken a lot of pride on what's happened and excited for the future. i want to thank you for your support and specifically margo kelly from my office. we would not be here today without her help and dedication to this project. our budget analyst has recommended a few items. colleagues unless there are any other comments can i entertain a motion to accept the budget analyst recommendations? >> can we take that without objection? and colleagues i would like to entertain a motion to send this forward to the full board with positive recommendation. >> i so move. i want to thank you for all of your work on this project and the many people in this community who also made it happen. i know from my experience in knowey valley this requires many years and enormous amount of effort. i know there has been

a discussion about equity and the project and that will do, i think this fits in very nicely. this is a citywide park and all parks that this park in particular and it's going to be an amazing addition to our park system oovm thank you we have a recommendation to send this forward without objection? okay. so moved. [ applause ] >> madam clerk, can you call item 3. city clerk: item no. 3. interim treasure island development authority budget. resolution approving the interim budget of the treasure island development authority. >> we have our ports planning

division. thanks for being here. go ahead. >> good afternoon supervisors. i'm megan wallet from the port of san francisco i'm here to request support for the port for artwork for the $200,000 from the james art committee which is a 501 c 3 charitable organization. the item is in the lobby of the terminal on pier 27. the installation was designed by the collective identified by the help of auto desk from the tenant that is in the residency program. james r herman was an important figure in history and i would like to invite john farly from the international foreman union

to give a brief background on mr. herman. >> good afternoon. i wanted to first quickly note that i come from jimmy's local. jimmy became president in 1964 by the local w 34. he became a true san francisco. minnie silver is part of the committee. an honorary member is democratic leader pelosi. jimmy hadden credible values. it was the propensity to reach out to individuals and raise up everybody. you noticed that with his cooperation and work with delancey stleet. he wanted to have a vision of the people in san francisco where everybody

had equal access, where immigrants, people of color, etc, really had a second chance to do things. after jimmy became president of local 34, he went on to be the second international president of the union. and he succeeded larry bridges, a legendary figure. shortly before he became president for the board commission and served in that capacity for 10 years. you can see he very much very much became a true san franciscans. it's fantastic if you know the truly model terminal is named after him and to my knowledge is the only labor leader and

activist that has a public building named for him in that way. i really wanted to say thank you to the cosponsors, the mayor. representative chiu and representative avalos. thank you very much. i found out the other day that you are part of the family and grow up with us and understand the values. so thank you for your sponsorship. >> to the picnic at peck park ever july 5th. >> you know us well. you are welcomed to our july 5th anytime you want to come. in closing, fantastic man. i didn't personally know him, but working on this committee, i'm probably minority. i list everyone who knew him and they all said phenomenal things. a short story. one guy driving jimmy to the airport and when

he was going to the airport he made him stop and reach into his pocket and pulled out $200 and said to the man, "you need help, right?" that's who he was. >> thank you. any public comment? seeing none, public comment is closed. colleagues can i send this forward with a recommendation? we can make that without objection. we are going to call the next item. i'm going to say we have a number of people for a larger hearing and discussion around our soda tax on item 16. we are going to pile through until 12:30 at which point we will call item 16. if you are in jeopardy of not making that cutoff, i apologize. please feel free to come back. i know there are a number of people coming before this. madam

clerk, can you call item no. 4. city clerk: item no. 4 a russian approving the budget of the treasure development authority. >> we have brand benson from the port. >> good afternoon, members of the committee. director of special projects for the port. >> can you call item 5 with this. >> city clerk: item no. 5, a resolution of an agreement to purchase a yard of the northeast corner of north 22nd street from pg & e for $63 dollars $63 or approximately $8.3 million. >> thank you. here to present a project. the agreement

before a license from the port and pg & e to submerge the property and an option agreement to acquire some pg & e own land near the ports pier 70. you heard this item in january. it's substantially the same along with the recommendations of the budget analyst. i'm going to breeze through this fairly quickly. if i can turn to the overhead project or, please. okay, san francisco's current system in the city includes 100 kv system and 230 kv system which is shown in light blue here. that's the system that served downtown san francisco. the two lines serving that system run over areas of the city

that are subject to liquefaction. that's the reason for this project is to provide redundant service to downtown in the case for a major seismic event. the rational was studied by the california public studies commission. they recognize a major seismic risk that one or both cables can be severed over the next 30 years for the next seismic event and these cables would be sound. fl were no power after an earthquake there would be loses. the direct losses would be up to $3 billion. you will see here the downtown area lined in red the embarcadero substation north of mission creek including south beach and south of market. this is the

route for the proposed facility. this would run and enter the bay at that location. traps it south about three 1/2 miles and come back on shore around 23rd street. at the foot of portrero hill. the cables would connect to a new 230 kv bus station right jace enter to the embarcadero substation and in the portrero area, to a new 230 kv gis enclosed substation. as part of this agreement, we've been talking a lot with pg & e about their properties at the foot of portrero. there are a lot of uses that got a switch yard that aligns in red with

an open switch yard and they have an industrial use for dirt recycling near the ports property. we have done something about those uses that would house mixed use development on the east shoreline. this is an open to the east bay station is what you have in the industrial areas. you will note in mixed use neighborhoods these types of facilities are enclosed. in terms of the license terms between the port and pg & e they will be licensing for submerging property for a 26 -year option. they will be paying the port $23 million between now and january 2015

the system would have the right to relocate the line subject to certain conditions. i showed you that switch yard, the open air switch yard, the city would have the right to prefer to be screened or encloseded in the building. we'll work with the planning department. this is a major investment. you will see from the left here some examples of the utility streeng and on the right you see what a station looks like. much better for development. in terms of the option agreement, the dirt recycling facility on three 3 acres north of 22nd street is going to be an entrance to the mixed use development. you are going to hear about that in the next item. we have negotiated for the city to buy that property for $23 million

or a little over $63 per square foot. the pg & e will have to find a new location to support the utility operations in the city. we talked last time about some environmental conditions on the property. we've negotiated a plan to clean up the property and make sure that uses are appropriate to that type of background contamination. the goal into purchasing the property is to rezone it. planning department would work with the port on that rezoning effort. it would be subject to the boards approval. department of real estate will have a transferable option and it would go through a competitive process after it's rezoned and we have net estimated the proceeds from that work to be greater than $20 million

which will go to the portrero an nex housing project. ceqa is complete, ports recommended the license to the board of supervisors. if the board approves the agreement, it will go to bcdd the water engineers for in water construction. pg & e is getting ready to go. they want to start construction in august of this year and the cable would be in service by april of 2016. thank you very much for your attention. i'm available to answer any questions. >> thank you, mr. benson, let's go to the budget and legislative analyst for the report. mr. rhodes? >> yes, members of the committee on page 32 we report that the proposed ln to be issued by the port pg & e, pg & e will prepay rent for the initial 30 -year tim $2,

275,000. on page 33, we report that under the proposed agreement the real estate division would have the option to purchase the yard for $63.67 per square foot for a total cost. based on the prior decisions we do recommend that you approve both of these resolutions. >> thank you. mr. rhodes. we have no questions from colleagues. is there any public comment? seeing none, public comment is closed: colleagues we have items 4 and 5 before us. can we do that without objection for items for and 5. thank you. next item. we should call items 6

and 7 and 8 together. city clerk: item no. 6 is authorizing a resolution and directing the sale of not to exceed $24 million aggregate principal amount of city and county taxable again obligation bonds. item no. 7. ordinance appropriating $24 million of city and county of san francisco taxable again obligation bonds. item 8. lease agreement historic buildings at 400-600, 20th street. for a term of 66 years following board approval. thank you. supervisors

again. i'm taking items 6, 7, 8 together. city staff and office of public financing and housing and community development. we'll try to be brief. this is related to pier 70 which is a project that we've been working on for many years. we have done a master process for including parks including industrial and ship repair, new development and in this case historic preservation, amazing buildings through pier 70, there are some of these buildings in question. they have been involved in ship repair in the 80s. these particular buildings especially in world war i and two era. they have fallen into disrepair and the port was struggling with what to do

with this area and also given their age. there is serious conditions that need to be addressed in each of these buildings. we ran a solicitation project and development a work and development. and since then have been working on a project with development. they are proposing a project that would return for office uses to modern industrial uses and adding a powerhouse that would be a restaurant and public plaza that would be an industrial staging area, the industrial character of this area but invite the dog patch and the residented into the navenltd -- neighborhood. it's this leasehold area of the premises. i have ln gone through the project's description. a project that i

would characterize as heavy repair but given the age and size of these buildings estimated cost of $76 million. the port is putting money for direct capital funds put in and the city has supported this project. $21 million seismic loan which i will talk about more and the developer has secured over $41 million of capital to make this happen. talking about the seismic safety program established by the voters in 1992 and can be used for the reinforced masonry program in machine shop. it's structured, secured by the leasehold as the second loan. the developer has secured and gone through the moa cd loan process

approved in may and also approved by cpc. it needs to be supported by $24 million by geo bonds. the two items in front of you. the lease is a fully participating lease. for 20 years will receive no, and the port equity will payback each with the return that we'll split the proceeds 50/50. on the current pro form, the city will start receiving payment in 2024 to $300,000 a year ramping to almost $700,000 a year over 10 years. the net present value is about $17 million. here is our projection of events that

would flow to the port over that timeframe. i have covered the important lease terms already. another things i want to point out there is infrastructure needs for this area and it's currently a closed area. there are important things to need to happen which include sidewalk improvement and removal of transformers and electricity to the shipyard next door and park amenities. there are a number of park benefits that i will in the interest of time i will give if you acquire and a number of us are available for questions if the supervisors so choose. >> thank you. colleagues. do we have any questions? >> great. mr. rhodes, can we go ahead -- get your report.

>> yes, mr. chairman, on page 38, regarding items 6 and 7. we report that the office of public finances estimates the annual debt service in the bonds is approximately 1, million, $791 and $13, 34,000 on the bonds estimate at 5.1 percent. the combined debt of interest over 20 years of the bond is $828,000. on page 8 of the report for the property tax would be maintained below the 2005, 2006 rate. so that is the estimate. and on page

40, we do recommend that you approve this legislation. regarding item 8 on page 56 of our report, we note that in 2012. the budget and legislative analyst made a finding of fiscal fees ability for the proposed historic buildings project to rehabilitate the building to 20th street as pier 70 and we did at the time the board of supervisors endorse the project. since that time the total estimated the cost of the project has increased by $18 million, from $58.5 million to $76.5 million. it's due to the port over the 66 -year lease term has also increased to $17 million. an

increase of $1.3 million. we also report that other changes made to the term sheets since the board of supervisors endorsement 2012 include that the port will contribute $1, 750,000 to the project which is an increase of $250,000 due to the california cultural equity endowment granted. -- grant. we do recommend you approve the resolution. we have made a recommendation of fiscal feasible. we recommend you approve this legislation. >> okay. thank you. any questions, for mr. rhodes. if not, we'll open this up for public comment. anyone want to comment on items 6, 7 or 8? please step forward.

>> good afternoon supervisors. i'm a chair of the port of the advisory group. i have sent you a letter. i'm not going to repeat anything. we've worked with the port on more than 70 years of the master plan. we are very excited that that they are able to take on this challenge hopefully before these buildings fall down completely. we think it's a great use of the program. we are very excited about that we want this approved. thank you. >> thank you very much for all of your leadership. are there anymore public comments? okay. seeing none, public comment is closed. colleagues we have a recommendation from our budget analyst to send these items forward. can i have a motion to send these

items forward without ovenlgs we are going to skip to item 16. city clerk: item 16. an ordinance regarding sugar sweetened beverage. >> thank you very much for hearing this item again. colleagues this is the third hearing we have held at the budget and finance committee on our proposed soda tax. i want to thank supervisors mar, avalos, chiu and campos for this measure. we held three hearings at the budget

meeting and several hearings in different subject matters in other committees. this is a significant public health measure. we want to make sure that it is fully vetted in all of it's complexity and all the different policies that implicated before sending it to the voters. i appreciate the time and resources this committee has invested in this measure. colleagues as you recall from previous hearings, this public health measure will make san francisco hopefully berkeley as well as they are also going to the ballot on this issue and first in the country to adopt this measure which will help us to reduce couples of soda -- consumption and other soda as that are contributing to diabetes and

other health risks caused by this product. this will generate 10s of millions of dollars that will be legally dedicated because it's a special tax, legally dedicated to nutrition programs with 26 percent of the funds goes to the san francisco unified school district to support the lunch school program, physical ed and the like, 25 percent will go to our parks and recreation department for the sole purpose of expanding active physical recreation in the parks, expanding rec's center hours and 25 percent to our department of public health for programs such as oral health programs, food access programs and so forth and 10 percent of the funds into a grant making program for community based organizations that are doing work around nutrition, physical activity and