to go a may 14 study commissioned by the council collaborate i've of asian american nonprofits, philipinos have among the highest high school dropout rates in san francisco with an alarming and steady increase since 2009 to 3.8 percent as of 2012, which is more than half the san francisco average of 7 percent. that same study also shows that san francisco has one of the highest asian american poverty rates in the nation practically equal to that of los angeles and new york cities. west bay philipinos proposed college prep program will help address those two key findings in that study and as a fairly recent immigrant myself i am very aware of the challenges new philipinos face. we are unable to immediately adapt to demands of life in our new

country. that can be addressed by providing culturally sensitive pathways to college. within the context of philipino culture youth will receive college degrees and are able to maximize their earnings potential within the work force, can help lift their own immediate family out of poverty as well as start their even few fuer families on the right foot, thereby breaking the cycle of poverty that's prevalent in our community and well in the city. as you are already aware, san francisco is one of the worst income and social inequality gaps in the country today. we urge you to fund our college prep program to help our community and of course the city. thank you. >> next speaker, please. >> morning, everyone. my name is robert, abut, i am the

father of micah abut. i want michael to go to college, i believe west bay philipino will help her stay in school. even now her foundation for success in life is being set. without w*eft bay philipino help it will be difficult for me and my wife to raise micah and give her the best opportunities in life. thank you. >> thank you, next speaker please. >> thank you, my name is chris foley and i'm working with the up, i've been working with the up for about 5 years. i've been in soma working with neighborhood organizations since 1990. i've been working cross roads for a long time and i also helped homeless prenatal identify and acquire their property on potrero about 10 years ago. when i first worked with up they said they had a dream of

buying a building. i'm a real estate guy, i'm a market building, i'm doing the market on the twitter building. so we did a transaction that made sense. they are not signing the loan payment, i am. we were able to raise a million dollars in 12 months. i am personally guaranteing the loan with john hammond john hammond is a hero, he's selling this building below market, he's probably 80 years old. thank you for being here. >> hello, supervisors, thank you for having us here today. this is very exciting moment not only for united players but for yuelgt -- youth across san francisco. in the early 90's san francisco attempted a

community center so this has been a dream of the city for a long time. united players are honored and blessed to be able to serve the people of san francisco the way we do and to be able to do it for 20 years now. we really urge you to please support us in this project and in the expenditure not only for us but for west bay college prep program. san francisco is changing faster than i think any of us can keep up with and nowhere is changing more than soma, which is why we really hope to add the amendment that if we choose to relocate to a building that may be bigger, suits our needs better or if we have to follow our population somewhere in soma we would be able to do so in a fairly easy manner. of course we would work with emily and cdc to get their approval. in 2010 a study was done about the cost of homicide or major crime on society and the cost

of one homicide is 17.25 million dollars. so in terms of what we're talking about here with prevention, prevention services are so much more cost effective than the alternative. so it's exciting, young people will have a safe place in san francisco forever. thank you. >> thanks, next speaker, please. >> thank you, supervisors, for allowing me to speak. i want to thank everybody who has came before me that's in support of what we're trying to do. we also want to support west bay and their endeavors to help out also the community. i wanted to introduce you to a group of remarkable men and women back here who every day puts their life on the line, on the front line, on ground zero. sometimes nobody sees or recognizes but you're looking

at a group of people right here who's been doing it for damn near 20 years now, two decades, not just in the south of market but all over san francisco and even beyond san francisco that we been touching lives and so by supporting this resolution to try to get us a foundation that's going to be in the south of market where everybody knows is the most development that's happening in san francisco is a win for the whole city. so we want y'all to support this resolution. i ain't got to explain what we do, y'all know what we do. a picture tells a thousand words. thank you. >> thanks, everyone. anybody else wish to comment on item no. 6? >> just wanted to add really quickly if there were any questions about the specifics around the financials of the deal chris and our director of operations carolyn caldwell

are here to answer any questions. >> any other public comment? seeing none, public comment is closed. supervisor avalos. >> thank you, jeff. i want to probably do something that is more like threading a needle between our recommendation and the one that has been worked out with united players and supervisor kim's office and the office of

economic work force development or mayor's office of community development. i'd like to first of all we could accept the clauses, the amendment that came from supervisor kim, that the city has no liability for the loan between united players and mr. john hammond and i believe that's the first recommendation that comes from mr. rose as well so there's complete alignment on that one. the second resolve clause, do i need to read that into the record if it was already -- it's the one i would like to move forward -- thank you -- i would like to move forward from supervisor jane kim's office. the second part of the amendment from mr. rose i think there's some language in there that still is important to keep in and deputy city attorney john gifford can give you a hand with that. i think it makes sense that we have in the resolution if there is a default or a foreclosure that the proceeds from the sale of that property come back to the city. i think that's something that makes a lot of sense. i

know a lot of this language is probably going to be in the grant agreement as well but you can help me massage out that amendment it would be great. >> deputy city attorney john givner. the resolve clause says that if united players enters into a contract to sell the howard street building and acquire another building for the same purpose it can use the equity under certain conditions and one of the additional conditions i think under your proposal would be that if the sale of the property is due to default or foreclosure of the loan secured by the property that the united players could not use the equity to purchase the new building. >> good, thank you. i'd like to make that motion. >> okay, supervisor avalos has made a consolidated motion, if you will, seconded by supervisor mar. we can take that motion without objection. >> and the motion to approve the underlying resolution. >> supervisor mar, did you want to speak? >> i wanted to thank april from jane kim's office for the hard work on this. i know over the past couple of days to

draft something that is really come paltable with supporting the community but also protecting the city as well. i wanted to thank rudy, misha and the whole united players crew that came out today. your work is incredibly inspiring and hopefully it spreads throughout the city, the spirit you bring into the chambers today. i think the dream people talked about for a safe space and secure home for philipino people and low income people of color in general is a dream for many and this is an example of how the city can really support that for the future and to the cac and the stablization fund folks that have spoken, it's really a great example from the west bay work to housing justice in this horrible crisis of displacement that's going on around us, but it's an inspiration and thank you so

much for bringing that into the chambers today and i would like to be added as a cosponsor of this as well. >> supervisor avalos has a motion to accept the underlying item as amended. we can take that without objection. >> mr. chair, before that i would like to request that the department provide the clerk's office with the amended legislation before 9:00 am tomorrow morning. >> okay, we will make sure that is communicated to them, thank you. >> item no. 7 is an ordinance amend being the business and text regulation code article 7 to increase the daily extension amount from $30 to $40 and to require future review by the controller of the daily or weekly exemption amount. >> goerp, my name is lisa pagan with the office and work

force developmentment today i would like to introduce technical amendments to the ordinance to amend the business and tax regulation code article 7, tax on transient occupancy of hotel rooms before you for your consideration today. the existing tax on transient occupancy of hotel rooms, also known as tot or the hotel tax, currently exempts from the hotel tax the rent paid for short term stays that do not qualify for the permanent resident exemption when the rent paid falls below the exemption rate. this section was first adopted in 1961 with a daily exemption rate of $2 at that time. the exemption rates have periodically been increased over the years by the board of supervisors. the exemption rate was last increased in 1998 when the daily exemption rate was increased to less than a rate of $30 a day and the weekly amount was increased to $100 a week.

the proposed ordinance if approved would increase the existing exemption where the hotel rent is less than at the rate of $30 a day to where the rent is less than at the rate of $40 a day. the ordinance also requires future review by the controller of the daily and weekly tot exemption rates in 3 to 5 years. the technical amendments being introduced today include replacing the word amount with the word rate on page 1, line 4 , and on page 2, line 2, deleting the word daily from page 1, line 4, page 2, line 2, adding the words less than and a day to clarify the existing in our proposed amended tot exemption rate lists on page 1, line 5 and page 2, line 2. as the office and economic and work force development project manager that works directly with and in support of the tourism and hospitality sector in san francisco, i worked on

this legislation with a group of hostels who requested an exemption in order for them to keep up with inflation and cost increases since 1998. based on an ample sis of the consumer price index cpi from 1998 to 2013, we believe the request for an increase in the exemption, the tot exemption, from where the rent is less than at the rate of $30 a day to where the rate is less than at the rate of $40 a day is justified and based on our research and discussions with the treasurer and tax collector's office we do not believe the city would lose any additional tax revenue as a result of this policy change. please let me know if you have any specific questions about this proposed ordinance and i believe there are some representatives from the hostel community today to also speak during public comment. >> supervisor avalos. >> i hope they are not

hostile. we are very touchy here sometimes. >> you mentioned the impact on the city revenue which is nil or nothing, but it's going to be the impact on the actual availability on housing and nsro transit occupancy hotel rooms? are we going to see anything change in terms of availability or the price cost that's going to hit people who are renting space in these hotels? >> currently the exemption of a hotel charging less than $30 a day. currently they are exempted from paying tax. this would increase that to $40. we would assume the group of hostels charging less than 30 a day may increase it to less than 40 a day if they want to stay within the exemption rate. all hotels and hostels that charge currently over 30 and above pay hotel tax so this

would be increasing the exemption rate $10. >> so transient occupancy hotel rooms, is that just hostels or are there other -- what are some of the ways they appear in our hotel stock? >> any hotel that doesn't qualify for the residential exemption, so they are renting for less than 31 days, i believe it is, is subject to hotel tax and they receive, you know, regular bills for hotel tax. so they have to declare whether or not they have rented rooms to transients. so that could be any kind of hotel in san francisco. but the weekly exemption rate is currently $100. we're not proposing changing that. so most, it's our understanding based on our research that many of the sro hotels charge by the week so we're not proposing --. >> sro's so it's transient occupancy. is it just going to be hostels, though?

>> any hotel. any hotel subject to hotel tax currently falls under the current exemption rate and would fall under the revised exemption rate. >> thank you. >> did i answer that? >> uh-huh. >> we don't have any budget analyst report. we will open this up to public comment. anyone wish to comment on item 7? >> good morning, supervisors, my name is darren overby, i am been the owner of pacific trade winds hospital on nearly 22 years. this morning we have representatives from 8 san francisco youth hostels which makes up the sf youth hostel coalition. may i ask the coalition supporters to stand? there are of course many other supporters that were not able

to attend because they are either running our hostels or running the small businesses located in the neighborhoods where our hostels are located. for example my business has 4 employees who were not able to attend and there were 4 business owners who expressed interest in attending if they could. san francisco international, the usa hostels.

hostels are entirely different than hotels in their basic premise in that the facilities are designed to facilitate interaction and discussion between guests from all over the world. on a personal note i discovered hostels 25 years ago while serving in the navy and during my service i recognized how urgently we need diplomacy and understanding between citizens of the world. hostels if affordable will allow young world citizens to meet and form friendships with other people in parts of the world when these people become leaders of communities and countries they are less likely to have harmful acts whether environmentally as they are leading their corporations or militarily if they have friends in those countries. thank you for your time and consideration in this matter. we hope to have your support. >> next speaker, please.

>> first of all i want to say thank you for giving me the opportunity to speak in front of everyone. my name is dylan gallagher, i am the manager at adelaide hostel. we are on duncan street, we have 15 employees, 120 beds per night and about 35,000 people who walk through our doors every single year. the typical person that comes through you can sort of look at myself is someone that might not be from san francisco, maybe a different part of the u.s., a different part of the world, and they want to see what makes, why san francisco is so famous, why we see it in the movies. so it might be someone from korea, australia, new zealand, europe, south africa, and what hostels do is give you an opportunity for someone such as a single female traveler to go to a safe place in a large city and see that city and

eventually learn and support that city and maybe possibly be the biggest have an jellist to a city like san francisco. so we represent that safe spot in the city. but what's happening in union square specifically and san francisco is outlawed businesses are becoming priced out. we've seen a lot of hostels close -- we've seen a couple hostels close down and what's going to happen is we're going to raise our prices and if we can raise that tax to $40 then we'll be able to pass on the savings to those travelers who eventually will be sitting in these seats and maybe create businesses that will bring more money to san francisco. so if you guys would, please raise that tax rate as someone in that community i support it as well. so thank you very much. >> what was your hostel called? >> the adelaide hostel. and

if you have any questions please feel free to ask me. >> good morning, supervisors, thank you so much for taking up this matter and giving us the opportunity to speak in support of this increase. my name is jan gilbert, i work with hosteling international formerly of the downtown location, right around the corner from union square. we have 3 facilities and about 62 employees in san francisco itself. we serve about 68,000 guests a year in our 3 san francisco locations. this is in addition to about 100 international students who stay with us while they study english at the english immersion language school. in addition to being able to host these budget travelers, hostels are also more environmentally friendly than hotels and other types of accommodation because hostelers choose to share the resources they use such as floor space, electricity, heating, et cetera. as mentioned by the other speakers we are asking

for this hotel tax exemption increase so that we can generate the revenue needed to ensure our facilities remain some of the best, cleanest and safest youth hostels in the country. for both hostelers and employees alike. as dylan mentioned since we pass those savings on to our guests it helps infuse more dollars towards local businesses. so this is really the best means for us to keep up with the rising costs of doing business in the city while also keeping travelers in san francisco. san francisco is a world class city that welcomes all people regardless of their ability to spend money. so youth hostels play a vital role in allowing budget travelers to have accommodations within the city itself so we really urge you to support this measure and thank you so much for your time and we really do hope to have your support on this. >> thank you, next speaker please. >> hello, my name is eric and

i'm the operations manager for blazing saddles. we are a tourism company here in san francisco and by supporting this you will be helping the company i work for as well as many, many other companies in san francisco and the bay area. thank you. >> thank you. anybody else wish to comment on item no. 7? all right, seeing none, public comment is closed. i know supervisor avalos had some comments. supervisor mar. >> i just wanted to thank the quote, unquote, community of hostels and i think you are a great example of a real sharing economy and the green businesses that you run, the employees, and how you help promote san francisco's benefits to young people that will bring it back all over the world. but i just wanted to thank you. i did see on the web sites that it looks like some of the

rooms cost significantly more than $40 but it sounds like this exemption is going up to an amount that i guess has been worked out so it's really in support of you but i know that some of the hostel rooms are more than $40 a night. is that right, miss pagan >> that's correct. and any room above the exemption rate would have to pay hotel tax according to our current --. >> but i'm very supportive and have been educated here today, but especially the great presentations of people who have come before us today. thank you. >> supervisor avalos. >> i am actually fine. motion to approve. >> okay, motion to approve this item, we can take that without objection. >> excuse me, mr. chair, i believe miss pagan submitted technical amendments for this item. >> motion to rescind that vote

on item 7. >> motion to approve the amendment of the whole and to accept the amendment of the whole and to approve the underlying ordinance. >> we have a motion by supervisor avalos. the second can take that without objection. okay, item 8. >> eye tell 8 is a resolution declaring the sbebt of the city to reimburse certain expenditures from proceeds of future bond indebtedness, authorizing the director of the mayor's office of housing and community develop. to submit an application and related documents to the california debt limit allocation committee to submit a mortgage revenue bond in an aggregate revenue bond not to exceed $65 million for 588 mission street north. >> we have the mayor's office of housing to speak on this item. (brief pause in captioning).