off people even with the change of the supervisor who will support this according to the reds that was passed last year just i understand the concerns about process but just process for increasing the cola is in process for that 15 years if not more, more every year we get to cola as part of the budget process and it happens to be in the mayor's office budget office in the mayor's office so there's been years we've actually had a hearing mid year to talk about how to get the cola into the budget process when the budget comes before the board of supervisors we actually have been programming reprogramming or doing add backside from 15 to $20 million over the past years and the co-la a 5 to $6 million

is not it is eased to get into and add that process is only able to move other than 15 to $20 million i know we're part of the process and the process is ongoing for forever we want to make sure this part of the process this constitution we are having right now can form w45i9s happening in the mayor's office to get co-la in the budgeted to program before it comes to the board of supervisors and focus on other things around san francisco affordability crisis thank you to everyone for coming here and your testimony and actually your work providing services for low income struggling as follows i have a lot of friends that worked at evidently wood they worked longer a year and dedication and didn't get paid well but they believe in and

they made a huge difference in people's lives and decisive to get paid well. >> supervisor mar. >> i guess i wanted it thank supervisor tang for her suggestion for me to modify my motion i'll modify you my motion i'm really glad supervisor kim talked about her nonprofit orientation and most of my working for the grassroots nonprofit organizations and supervisor avalos as well i know the stories and the struggles that people expressed and the testimony today the burn out the turnover the neighborhood instability caused by it but especially the defunding of the hard working community-based organizations i'm glad you put a

face on the budget supplemental and appreciative that we're going to be able to move forward with a positive recommendation mountain valley pipeline my hope to with kweep e keep did pressure on city council will city hall with the question of parity thank you to etch i make the motion we move forward without recommendations. >> i'll be supporting the motion to the full board when this came out about last year, i i obviously support a lot of the the colas but the present nature outside of the budget process is dangers and not support 2 i said that last year this is what i said that being said this is

something else we need to address so i'm happy to do that certainly but the process at the end of a budget cycle to say based on the can have if a extra money this is a dangerous precedent can't make that in san francisco if we do so those funds are not going they don't go to other causes only to reduce the deficit so not as if it's free money that went to another project, if you will, but again that being said i think that's the right call we have the discussion again next week. >> supervisor mar made it without recommendations

madam clerk item 7. >> a hearing a presentation from the planning department and the mayor's office of housing and community development on the disbursement for the incongruous for the rincon hill community and the stabilization fund. >> thank you madam clerk that is sponsored by supervisor kim. >> and so supervisor i'm going to turn it over to lead the hearing. >> thank you chair farrell and thank you to the committee for hearing this item in disof last year you've been following the mayor's office of housing and community development discovered 45 thousand dollars plus dollars dedicated to the infrastructure improvement south of market withdrawn from the city account at the area of association of bay area government a bag since discovering the withdrawal that

included $374000 plus of the rincon hill the city attorney's office demanded the return of the fund i believe that two or three weeks ago the fund were sgrurd without proper authorization soon after recorded in the paper it was fraud and by the time of fund rob was arrested and i want to recognize and this thing the good work of city attorney's office the office of public finance and investigation of this matter after discovered by the mayor's office of disabilities and a bag and the finest authority they voted on february 2nd to return those fund in total to the city i did call this public hearing a

little bit prior to all the exciting developments that have come out since we've learned of the missing fund i thought it was important to hold the hearing today to really delve into and have a report back to the board on the missing funds that is in the process of being returned and the projects that have been identified to go n up in the south of market i want to recognize that those fund were held in place for a little bit over three or four years even though they were ready to be spent down for pressing needs throughout the reejdz from rincon hill ranging from south park in a neighborhood that has the highest rate of vehicle pedestrian collisions in the city yet those dollars were not spent down even though there was

a cac clear criminal outcome to the issue that is separate i want to get a good understand how impact feeds are sgrurd and who has the oversight i think what is troubling outside of the criminal aspect with the impact fees i'm troubled by the factored we have those fund in place is as early as 2011 when i was first in office not spent down for my entire term at the board of supervisors because they had noting been spent down it disclosed an opportunity for the fraud and perhaps an opportunity preserved by this employee abused it was almost inviable to the community and our office because we have a

diversity of impact fees through a variety of plans we release we have a vulnerability in the city i want to have a good understanding who the oversight for the funds are and how we can make sure those funds are spent down i do want to recognize i do centuries dlovl both this office there's been there's been triggers put in place previously through the city i know that nadia's office in the office of public finance released an audit with a bag trying to figure out how the withdrawals happened one way or the other without the cities authorization so help us recognize that fairly early on that being said i want to make sure we can prevent something like that from happening again

i have some presenters here first from the housing and urban development and from the statewide i citywide planning said our key members the south of market stable shut up fund have a hard stop at noon and this is 1155 can we ask our chairs to step up first. >> before that i'm sorry i don't know if there's opening comments from the budget members. >> supervisor kim can i say that the gentle council for a bag is here i want to authenticities the finance authority for the corporation mr. clark yes, ma'am bewilder the fund is an 2k5i7b9 and

separate person from a bag there's a separate investigation to insure that nerves happens again mined from the finance from the corporation it is an entity that needs more oversight but it separate from a bag. >> thank you supervisor mar any public comment? supervisor mar and i sit on the a bag as directors i was going to mention the council of a bag and they're here for questions from the budget committee. >> thank you, supervisor kim and supervisors thank you for let's see us get to this thank you, supervisor kim and staff for putting this hearing together and tirelessly workings working to get those fund and

also the staff of the city attorney's office for getting the fund restored and the gentleman from the chronicle and a bag for restoring the fund our biggest thaktsz to the community to have those fund restored to put that mild the money we saw the money was stolen and as steward of those fund with the south of market stakeholder we worked with the community everyday and know the incredible need for investment following the notice those fund will be returned the cac held a meeting with the structural to finalize the projects that were the most immediate need a custom nation of a process where the residents and nonprofit organizations

overwhelming and feedback we've received at supervisor kim alluded to silver is a dangerous and sadly something dangerous neighborhood for pedestrians in reaching a crisis selma is ground zero we recommend those be used for crossroads to intrshgsdz that are particularly dangerous for the youth and citizens in the area and the safety xhochltd in south park a place that serves families in sro's we looked forward to working with the board of supervisors to assure those public safety issues move forward as quickly as possible i'm going to turn it over to my

chair. >> hi members of the board this is definitely an emotional rooster and affordability for the weigh on the cac decision-making process community engagement is only one piece a community process is is lengthy and takes intention and thoughtfulness so moving forward along with tracking the process adu's of the existing program we're planning to identify the projects and align them with quarterly financial updates from staff the projects that came out of the funds are the community projects and we can't wait to get them all started. >> so i don't know if you have a little bit more time i want to

ask about the process when you first learned that the infrastructure feeds 0 when do you first learn about the infrastructure feeds being in existence? >> so in 2013 i believe it was it should be in the presentation the timeline this will be you know unfortunately, i jumped lady of the presentation but we learned about the fund in mid-2013 and at the destruction u instruction of the cac the staff prepared apple update on those and since that time we've been working to schedule meeting with a number of city department liked rec and park to identify the best used for those funds, in fact, we've had south park many of the presenter slated to come in at the time, we learned the fund were missing in middle

2013, the cac had been working to identify the projects in bringing in the various nonprofits and city groups that had a the same thing in those infrastructure projects. >> a year and a half for the fund our offense was aware of the needs for the funds i walked ♪ 2011 so you know one of my kind of big annoyances about the issues we have needs in the community that could have been spent do you think i'm occurs once again the cac learned about the fund how long does it take to disburse those funds >> our process has been to you know once we were alerted to the fund we did an outreach and

invited did agrees and members that have upcoming like rec and park to come to us to let us know the needs of the fund and we did not to my knowledge to my knowledge have anyone any community members or start to let us know about that for instance, there was unfortunately, a lack of quadrants or awareness in the community of the validate of the infrastructure fund those are stabilization fund. >> i know this is not meant to give you a hard time it's not that i've fought about the needs but at the point that the safety finds out about the process what's the disbursement is it 6 months what is the normal practices process the cracking cac goes through to 13e7bd down

the fund that are totally available for the community. >> it's been when it comes down i think it's been more of a priorities what needs are in the community our our knowledge of the availability of fund finding out whether or not there's an expiration date it is more like us prior tigdz the needs that's how the process has been in the beginning. >> did you ask the mayor's office of housing was the priorities they go to services the shoigsdz of the club house and the infrastructure is it the committees that today in terms of or do you direct staff to help to guide you. >> most relevance we've created

those different categories of where we want the fund to go whether in housing or jobs we get approached by community orchards for their needs we try to align them we get update on how much in each category but in terms of spending them quickly what are the needs of like - >> so these needs have been in expiates what's the best process for the cac if you're not hearing we need fund for straightaway streetscape improvement if you're ignited by the community not by mow or the cac what's the best way that the priority.

>> to attend the cac meetings to - an hour and a half or. >> how often did the cac meet. >> once again a month. >> what's the better system because it's either our office doing the outreach for you or not everyone knows that meetings; right? we really need this for south park or that's why you are not hearing any i know those meeting are a priority i was not aware of the fund until december i would have asked for that myself i guess i'm asking what's a better infrastructure in the future for the $2,000 that need to be spent. >> possibly having more community meetings where we can be geenld with what's going on. >> so the cac can do that now to

insure that the community can hear those needs. >> we lights have an open table for the community to address our concerned one of the things to do in the planning especially with the infrastructure projects when we have an idea to hold the meeting during our get to be strategic and plan out the expenditures well in advance of the funding for those monies. >> thank you you volunteer to be on the committee and you have jobs obey an oversight council for those fund and spend them. >> i guess i'll bring up the

mayor's office of housing. >> bryan chu director of community development i'm here with the program manager director of our departmental olsen lee that we have a power point presentation i will try and move through quickly so we thought we'd spend time give a brief background on the structure of the fund it is somewhat confusing structure we'll talk about the strategy plan guiding those fund and more speveng the difference between the fund for the infrastructure conducting those held by the a bag financing authority and the stabilization fund and close for the priorities of the fund and the properties to be used to

distribute those fund in the future i'm sure you're aware of in august of 2005 the rincon hill area plan was to transform the mixed use neighborhood with this development will be impact fees associated where the impact fees can be used for infrastructure improvement of the impact fees are traditionally held by the planning department to offset the impacts on affordable housing community or generally the board established a separate selma fund with an additional fee on the rincon hill development so we have to depth funds that it is source of confusion the additional impact fee for improvement and the additional silver stabilization fee that was imposed and to further complicate the matter

$6 million of the infrastructure fee that is continually managed by the planning department was through this legislation mandatory to be adopted into the silver community shakeabletion fund 0 when we talk about the rincon hill fund part of that was were impact fees and the other the separate community shakeabletion fund that had water eligibility for fund i wasn't involved in 2005 or 6 my understanding was that the members of the board felt they wanted to have it $6 million of infrastructure to be guided by the silver citizens advisory committee a that's why it was split up even though the outdoors sophomore for infrastructure were the same for

the stabilization fund. >> the people wanted it to be altercate with the question i didn't get answered why the rincon hill fund went somewhere else my understanding the fund the a bag fund with the city and county and actually, this is an a bag if it wouldn't have been with a bag this wouldn't have happened actually due to the akdz of a bad affordable those agreement those fund were sfifrd off to a bag. >> that's a great question so the act fees can be paid

directly to the planning department legislation also allows the developer to pay it to the orients of the bond at the present time in 2005 the city had no experience in issuing those kinds of fund so the a bag was the most experienced centuries that time the city has issued money so if that my further development happened in want rincon hill area and they choose it it would be issued and held in city council so this is how it is if we go back this is the rincon hill residential district which is dearrived the impact feeds and here's the 3wr50rd map of the selma area as you've heard a

7 member citizens advisory committee appointed by the board of supervisors two of our members come and speak with you. >> most of the members are new connie ford who many of you know has been on the committee since the beginning and mentioned in 2013 a presentation to the committee members about the possibility use of infrastructure fees previous members were given a presentation on the free portion and all turned offer excerpt for ms. ford so finally here you can see the power point on our desk the two types of fees the impact fee at $10.44 for that grow per

square feet and the separate selma stabilization fee per gross per fiat square feet and the fee can be 35id through melrose their held in a city accountant and a somewhat stabilization fund held in a city accountability the financial department is here they'll talk about their infrastructure fees and later in the presentation we'll diverse a summary 67 what we plan to use in the future that's a brief history and my colleague will talk about more specifically about the infrastructure fund and what it is used for and the a bag falls within the gyp fees and the community stabilization fund what we've puzzled for in the past and close with the

process of how to get the fund out into the future and on to suggestions as to what did you say to improve and expedite that process so i'm going to turn it over to my colleague. >> good afternoon supervisors claudine with the mayor's office of housing and community development i staff the fund and the cac and so i want to take a little bit of time to go into detail about the fund if any time you want to get to specified questions i'll be happy to do that in 2008 we brought a strategic plan that governs pr provides impact or stabilization fees it was approved in 2008 the mission to stabilize

recommends and priority that mitigate the impact of development 4 investment objectives we make all our investment in the those areas housing and job and income and neighborhood communication and physical infrastructure i'll be going over some of the listed of the investment a little bit later the strategic plan designated this population low wage resident including the immigrant and geographically the fund can be spent on this map the entire we only shaded area the cac has identified the children and families zone and the filipino heritage district as priority and investments that are made of those areas are a