authority and in july of 2014 the first supplemental endenture and $5.8 million of which 1.4 was transferred to the supplemental agent in julia supplemental venture that was issued this document is the document that was approved for disbursement of procedures from the disbursement of costs with the approval the a bag financial approval and not a city official this is where the problem started and in august of 2014 is when there's a letter issued to identify the a bag finest 0 authority and the controller's office no evidence of the current balances showing melrose

precedes not in a sub accounted in will december and oewd staff notified in january of 2015 oc d worked to determine when the fund were disbursed i have some specific details we found upon further xhairgs concentration it was issued in 2005 can be amended any a.m. gut and the establishment 69 - 12k3wrur789 the denture was really kind of questionable soy know in the

agenda item it stated there's a disbursement to urban west and silicon valley developers in january we, you know, we took it severely 10ir8 we contacted the city attorney and had several phone calls with the vendors urban west not a disbursement for them we want to make sure that's clear and all the schoots what the headlines ensewed after that in february the a bag board voted are earlier this month to return the fund to the city and county of san francisco from reserve they're working to finalize the terms and agreement we're confident the money is come back they're working on the

final details what will happen when they've other day on the details it goes before the a bag board and comes to the board of supervisors so you'll have another opportunity to look at it and approve that before it's substituted arrest you just want to be sensitive to the time schedule i know some folks may have to leave by 1 o'clock. >> so those are some of the priorities that have been identified by mc d for what they want to do with the fund the first one crossing at first and howard there's a crossing at fulsome to complete the public safety pathway from the park to the gene rubke center and the united players house they've approved the united we learned

about it is funded for design but not construction we're allocated money to for construction and the safety parks were approved we hope you'll schedule that we've talked about bleach seating at the park and additional seating at south park and 7th and all those different costs more than expends the 9 hundred plus we were you couldn't do asked to talk about the general stabilization fund the total expenditure from the stabilization fund is $6.4 million that includes autopsy inclusionary housing study done and community improvement of the affordable units on harrison and $2.4 million in grant mostly for services this is a glimpse at

our current portfolio and that portfolio total $4.3 million that are the one side we have right now i have a if you slides of the past investment if you want to review them later i'd like to call out some of the highlight if i can we provided a down payment on the acquisition the united players club house and purchased it friday we provided the planning for an acquisition on a small site by low income families we created 49 very affordable units on harrison and offered another thirty percent medium income we also have provided funding for several different programs one of which the bill program it provided very important service working with low income folks to find

opportunity for affordable housing this had 83 placements and paraded that their clients participate in the thirty loiters and created the resolving alongside and the council that meets to address issues in the neighborhood and community action grant for small grant to community members like 5 to $10,000 grant and a onsite infrastructure at betsey carmichael and we've also done renovation at community gardener also it's worth will noting we're doing the incapacity building with those nonprofit the item 3wr5u7bd talked about how the nonprofit workers have overworked and burned out

those are projections for the deposits in these each funds those numbers can shift over time based on a formula for square footage and when and the timelines are based on when the certificate of occupancy is expected but this is kind of an estimate of the projections for the stabilization fund as well as the infrastructure fund that will be transferred over and then again to talk about our process moving forward we have two different processes for the infrastructure and for the stabilization funds funds the capital and from career he are will be available in june of 2015 the mc staff worked with.

>> thank you. next speaker, please. >> and rec and park and others to identify the infrastructure in the neighborhood we proposed to present eligible projects to the cac consideration twice a year and projects will then be presented to the board of supervisors for approval the stabilization fund expenditure where we live recently depended upon a rfp cycle currently looking at projects that total $1.6 million they mate not all get approved but back before the board in april we will also work with community partners to identify the co-locating nonprofits and our office has done work and the community is interested in this initiative and this is to

support the properties in selma and going to review the model feasibility for implementation on 6th street in conclusion i think as was talked about mc d w will work to proactively identify the infrastructure infrastructure. >> thank you. i was also, because i don't sit think wants budget committee i realize there's another item after this there is a 1 o'clock p.m. stop so i'll reverse my thoughts is where he we have the various department here and also ken from a bag here as well to answer questions if any from the committee okay. seeing none can i may i ask the chair to open up for

public comment. >> any public comment on item this item okay seeing none, public comment is closed. . >> supervisor kim what you like to to the call of the chair tangible the item. >> i'd like to make a motion to continue this item to the call of the chair now and kind of understanding the time crutch i want to make some closing comments i know there are members of the community were not anticipating the time but i want to thank our various department there are many departments involved in protecting our city fund our sdoofdz office of public finest also the mayor's office of housing i want to recognize a bag here today despite the process i think that a bag has

done everything that any responsibly agency should be doing under those circumstances there were a very, very, very bad actor within the a bag and building tocertify event and for so much nor government workers i have been concerned when i learned of the loss of the fund how those fund had been sitting for a look at and able to get the contract i do reminded when the fund started to dry up i certainly understand how difficult to build a youth center than a contracts on fulsome what's clear we need to

support our citizens advisory committee they're all volunteer and have turn offer so within the mayor's office of disabilities this is kind of the staple kind of entity that guides 0 the cac i hope we can provide them support we need to do a better job of spending down those fund particularly the infrastructure fund that being said the stabilization fund is a success it's meet the needs of the community to stabilize the development in there's a middle-income protecting community south of market and their been impacted by the real estate market how didn't even it is to be here it is great to see things like the acquisition of the united pliers club house

they were able to purchase their club house through those fund and serviced for our youth and senior they got more expensive every year and hopefully holy the infrastructure needs we have as our population grows our parks have more needs and pedestrians so i really am glad this exists i want to recognize the community 3 is not here today who fought for this setting a floor to make sure that our private developers are a part of making our community diverse and stage as the city is so in the highlighted for me you know what we need to do to provide for oversight to make sure we were able it stabilize our community so thank you to

the mayor's office of housing for being here there was complexities but it was helpful for us and the rest of the board. >> supervisor tang. >> i'm glad supervisor kim that you called this hearing as difficult as that was prior to this hearing i met with some of the cac members and met with the staff i want to congratulate the city staff i think that proves our checked work and we were able to discovery this problem in the fire hydrant first place i'd like to continue item 7 to the call of the chair. >> thank you supervisor tang has made a motion. >> supervisor mar. >> i'm supportive of the motion i want to thank supervisor kim and the cac and controller's office for identifying that the loss of the fund and novelist mocd to make sure that the committee was involved we need a

tracking system internally and locally and appreciate the overview of the process we need local processes when funds are not expended i want to emphasize the legal agency and it is independent of a bag not overseen i wanted to thank brad paul from a bag and others for doing everything possible to make the city whole and to seek out with the fbi and others enforcement agsdz the fund that were yes, ma'am bewilder we are do everything we can to make sure that the city is whole and

make sure their systems within a bag and the city so it never happens again, thank you supervisor kim. >> the supervisor has made a motion to continue this to the call of the chair. >> okay. colleagues we have one more item on the calendar that is been requested by supervisor avalos he's not with us at the moment. >> i know our puc is here why not precede where the presentation get moving and let me see in supervisor avalos comes down we have a short window left we'll lose quorum. >> supervisor would i like me to call this item.

>> item 8 here to receive the updates for complaints from the city attorney migrants pg&e has immediately denied the negotiations from the witness the city and the pg&e negotiation and the agreement in 2015 they fail to 234eg9 in good faith. >> commissioner avalos if we could still be brief. >> i called for the hearing it is really at the request of the public utility commission and itself city attorney's office to get some public light only what's happening around the interconnections agreement. >> thank you, michael deputy director manager from the

utilities commission i'll talk about the contract we've had with patrick gas and electric this provides hetch hetchy to our citizens what's the path forward the act passes in 2013 that gave the rights away to the rights of hetch hetchy most people don't royals as part of the agreement was lake elsinore it was built for power production to build hetch hetchy dam a so we've had agreement to bring power to our customers in san francisco going back as far as the 1998 when he generated 0 point of interest but contract

since 9345 and that's the subject of today's discussions and feinstein it exteriors july 1st of 2015 we're talking about the relationship we'll have with pacific gas and protect we don't own the distribution system like hunters point or treasure island but bringing power to this this is pacific gas and electric they own the systems and there's tariffs for the transmission system we've been attempting to negotiate with the new agreement the whole greater world this is a changed tennis or since 987 we asked them for what we call with wholesale service agreement

in november of 2013 we had an impasse on the terms and conditions not arguing over the rates those are set two the regulatory condition but under what conditions to serve the customers in the future it's important to know because of the impasse while at the federal rates in october last year the containment of pacific gas and electric a that's heightened the terms and conditions under which we've serve our customers and they filed in december a interpretation of the interconnection this is part of the procedural matter it means they'd the first time to get the drafts and had some of the terms and conditions we're trying trying to negotiate with what does it mean to the city it means we'll increase the costs at sooipt because the transition

and costs will go up but increased costs to do business the types of facility between us and the district courts system and the types of metering that maybe encompassed and the types of impasse costs this puts us at a competitive disadvantage and it basically has a negative impact on some of the program like street light and renewal generation we want to make sure that the terms and conditions are we can stay in business to attract now customers we want to continue to simply our customers and bring on potential new customers and avoid the systems and requirement that we don't believe are warden

and basically we also asked in our fooiflz let's continue the existing contract rather than trying to get-together to another contract we want to be status quo. >> who determines that it is the california public utilities commission. >> to expend did subdivision agreement until we can come to an agreement on the discuss the. >> so a regulatory commission and that's correct. >> i think i learned that yesterday. >> great thing for popular parties so, anyway that's where we basically are at this time to resolve the dispute with the terms and conditions as we move into the new energy world but

remain status quo to provide gowns it is important you that understand if we have to extend the current contract it is that will come back to you for approval. >> is there any action to make that outcome possibly arranging the escrow. >> it is in the cities mrooetd but if you want to support that position that's something i'll recommend. >> through aries or - >> as a resolution that would be helpful urging us to continue you know to negotiate and to extend the current i a. >> that's would be a port commission wanted to draft that i'll be happy for the sponsor to come through the board we'll be supportive of that. >> we'll be glad to do that. >> i'm finished with high

presentation it's without objection. >> sorry for keeping it short but appreciate you being here today, i building all of united states in the board in closed session say it's a great idea to have this in public. >> supervisor tang. >> you wanted to clarify that under federal law san francisco, california actually continue to operate without building out the new facilities that's the suspect of the agreement. >> that's the takeover we're trying to get classification there's a big clause in the frill law called grandfathering like fire stations and schools we add nor firehouses and schools in san francisco it's our belief this is grandfathered in without meeting the requirement. >> if we can include that

sorry. >> thank you for that information but i i know that we learned a lot in the hearing yesterday my concern would be the potential costs on whether it's the city's general fund to the customers and the huge increases because of this i hope that our board can do our part in helping to resolve this. >> thank you supervisor tang okay supervisor john avalos's. >> just whether it makes sense about the language of new facilities on 2k3wr5rg9d in and good to express that as well. >> tb it is part of our pleadings we'll include that. >> at this point in time open up for public comment seeing none, public comment is closed. supervisor avalos.

>> we can file that. >> we'll take a motion to file. >> so moved arrest we'll take that without objection. madam clerk, any other business before this committee? >> no, mr. chair. >> thanks everyone we're 1yr7bd