>> all right, good morning, everybody. and welcome to the san francisco board of supervisors, budget and finance subcommittee meeting for wednesday, april 29th, 2015, my name is mark farrell and i will be chairing this committee and i am joined by supervisor, tang and i want to thank the members of sfgtv for covering this meeting, and

the clerk, madam clerk do we have announcements. >> silence all cell phones and electronic devices and completed speaker cards and documents to be included as part of the file should be submitted to the clerk, items acted upon today will be on the may, 6th board unless otherwise stated. >> could you call item one? >> ordinance amending the health code to increase patient rates charged from concern mental health services delivered from july 2014, through june of 2016. >> and supervisor tang i would like to entertain a motion to continue this to may the 20th to have is a discussion at that point, but first we will open this up to public comment, anybody want to comment on item one? >> seeing none, public comment is closed. >> all right. i will make that motion to continue to may sorry, 20th. >> okay, thank you very much. we have a motion by sperp tang and take that without objection. >> could you call item two?

>> resolution authority icing the recreation and park department to execute a 15 year lease with glen ridge nursery school for the silver tree building in glen can yn park for the term of june 6 through june 5, 2030. >> okay, thank you very much. >> is there anyone from rec and park here on this item? >> okay. >> good morning, supervisors. my name is jes and i am the park manager with the recreation and parks department and the item before you is the release agreement for the silver tree building for the again ridge nursery school and the building is 3093 square foot building, located in glen canyon park and accessible by a one-third mile park from the nearest street entrance and it is shared the property with the silver tree camp and with the last 44 years and the name sake of the building is the day camp

which has been there for five years, and we are seeking a 15 year lease term and it is a longer term, which is why we are bringing it to you because the nursery school is looking to make a capitol investment into the building for replacing the roof which is a need of $41,400 of which they will receive, rent credit by the department for 50 percent of that cost, in the process of bringing that to you, we took it to the rec and park commission who have recommended it to come to you, and we, because it involved the replacement of a roof, we did a review and we received a cat x, and in that process, and we have reviewed the budget analyst report and we were in agreement with the recommendations and we have the sponsor ship of supervisor scott weiner, on this process. >> thank you. >> okay, thank you very much. >> and i know that we have

sperp weiner's office. >> and good morning, supervisors, sorry that i am late, jeff, with the legislative aid and the supervisor weiner, and i think that jeff, started to cover most of what i going to say and i will say that the supervisors are extremely supportive of this and obviously the school is a tremendous community asset and served the families of san francisco for over 45 years in the same location, and so we are really excited to have both the capitol and investment from the parents which is generous and also the opportunity for them to stay at 15 more years at least and he would encourage you to support this and also he is happy to accept the bla recommendations for review. >> could you give us your report, please? >> yes, mr. chairman, supervisor tang, on the page 7 of our report, we report that according to the recreation and park department, the public lease with glen wood nursery

school was not competitively bid and the reasons are stated on age 7 of our report. and on page at the bottom of page 8 of our report we know that under the proposed lease the nursery school will pay net of rent credits and estimated rent to the recreational park department over a 15 year term of the lease of $452,360 and that is shown in table two on page nine of our report. >> and our recommendations on the bottom of page nine and recommend that you append it to resolve it stating that the board of supervisors finds competitively bidding the subject lease to be impractical or not fees able due to the reasons noted in our report section waiting for the competitive bid for the property and also stated on page 2, lines 23, 25 of the proposed regular lieusing and that is in the whereas clause and we also recommend that you

amend the proposed resolution and state the correct initial base rent to be paid by the nursery school to the city as $26,380 rather than $32,652 as stated in the proposed resolution and we recommend that you approve the legislation as recommended. >> thank you, seeing no questions, why don't we open this up to public comment, anybody wishing to comment on two. >> seeing none, public comment is closed. >> through the chair and so i think that in terms of one of the budget analyst second recommendations reducing the amount from 32,000 to 26,000 in terms of the initial annual base rent and my understanding is that it was the discrepancy was a 42 lease year or 52 week and we are all in agreement which is good and i am happy to make a motion to amend and adopt all of the analyst recommendation and then, pass it on to the full board with a

positive recommendation. >> as amend. >> and we have a motion by supervisor tang. >> without objection. >> okay, madam clerk, could you call three? >> the resolution, of approving the internal revenue code, and by the california enterprise development authority not-to-exceed, $25 million. >> okay we have michelle from the control's office. >> good morning, supervisors, thank you for hearing this item today and also in attendance are diane walters from the urban school and the can council and kristin and to give you a background, the equity and physical responsibility allows the exemption on the debt issued by the joint powers authority and in which san francisco is a member, and the authority is authorized to issue, the forms of endebtedness, to issue the bonds in the basis and the federal law requires the

governing body of the jurisdiction in which the project is located to approve it and the financing and the project, and after previeding of this public hearing and in this case, the jurisdiction itself is not obligated for the payment of the bond. >> and on march 20th, a public hearing was held in the office of public finance on april third and no comment from any member of the public through the public hearing process as mentioned not-to-exceed amount of $25 million. and briefly the urban school, of san francisco, is an independent high school founded in 1966 with an enrollment of 380 students, 75 percent of whoem reside in san francisco. and the purpose of the debt is four fold and the school seeks to get a prepaid loan by first pub bank of an amount of 8 million, 26,000 to finance and

refinance the obligations in 2004 by the finance authority which were used to finance the acquisition and equipment and furnishing of the education alpha celebrities known as the page street property, which are owned or leased by the school by the educational purposes as well as to pay for the cost, and the hedge agreement and in connection with the 2004 bond and second to finance and reimburse the school for expenditures for construction and improvement and equipment in the oak street property and the existing residential building, owned by the arch diocese of san francisco and leased to the school and in its place, the new, 63,000 athletic facility and the third purpose to finance additional capitol improvements to the property and to pay the transization costs, and again, the approval of this legislation has no fiscal impact to the city and

county. >> great, thanks very much. >> no questions at this time we will open it up to public comment, anyone wish to comment on item three? >> seeing none, public comment is closed. >> all right. >> through the chair would i just say that this is very common place for us to do and i would be happy to forward this out with a positive recommendation to the full board. >> okay thank you very much. >> we have a motion by tang and take that one without objection. >> could you call item four? >> four, the resolution authorizing the extension of an existing lease for the space, at 760 harrison street for the use by the department of public health and continuing the original lease through june 30, 2017 for $304,000 rent in the initial year. >> okay tuxer very much. welcome back, and thank you, chair ferrill, and supervisor tang and good morning and so this item is a new lease, with extensions for renewal at 760

harrison street which is our department of public health south of market. mental health services, facility integrated service clinic. and this comes to you, in an unusual fashion, in that the lease itself, currently does not expire until june 30, 2017. and however, when a dph, approach us with the prospect of putting in a significant enhancement to the facility through the tentative improvements over $900,000, in work, we thought that it might be best to seek an extension, of the lease at this time. with the ownership so that we had the certainty of seeing the fruits of that labor of tentative improvements and so that is why the sign is before you today and i think that we have negotiated a favorable transaction for the city and this is about a 13,000 square foot building and it is on har soin and between third and fourth right in the heart of

all of the things that are going on in soma current lease rate is 23.40 a square foot and the property with the secure parking to the rear. and this lease extension holds the current rate until the previous termination dates and so for the next two years, we stay at under two dollars a foot per month. for the space. and then, we bump up and july 1, 2017, to a new rate of 39.22. a square foot. and then annually that increases two percent per year. and we also have secured three, five-year options, at our discretion and those options are not reset at market rate as we would typically bring but, but they are set at simply two percent increases per year so we believe that we can negotiated something that is considerably under market today.

and being at 39 dollars a foot and, seeing the budget analyst report of review of the come parables that we think are appropriate here and going forward even with those modest increases of 2 percent per year and each if there is a market correction and we think that we are going to be in a favorable condition in this critical location, serving soma, the improvements are intended to provide the additional exam rooms in the facility and it will allow the dph to serve the clients on site and to reduce the clients going to the general hospital, emergency rooms and so there is certainly, some inherit efficiencies that this brings to the dph's operations. and as indicated in the budget and legislative analyst report, funding for the tentative improvements is split, $300,000 out of prop 63 funds, and the remainder of the general fund and then we have shown that department of public health has the rental of course, in their

budget, and happy to answer any questions that you might have and i am also joined by dph reps as well flt >> thank you, and supervisor, taning? >> thank you. >> and i don't think if this is a question for a real estate or for dph perhaps and a lot of the improvements are triggered by the requirements under the affordable care act, and so, also since the lease was to expire, june 30th, and there was no option to extend and i was just curious had these requirements not come about was dph planning on actually continuing in this space or was it mostly because they had to build out these new exam rooms etc. and all of the investments made that they are continuing in the space. >> and i am happy to take some of that question, and then perhaps, my colleagues can add to it. but we did do a search for come parable spaces and looking at the option of simply relocating to a new facility. but it will require a build out that might be more robust than what we are in right now but what we are found is that the

rate structures for the come parable facilities and these are the prospective lease and we are close tore 60 dollars per square foot and if we ran those numbers over time and we compared them to the improvements needed at this facility and, fiscally this was the intelligent choice that we felt. >> good morning, and i am michelle, and the director of the operations for dph, and you know, we definitely would have stayed, it is one of our most highly used mental health clinics, and it would be hard to move it anywhere, even if we could find a place and i think that it would be a neighborhood, opposition, issue. and it has been there for years, and we have at least and, we have a great relationship with the land lords and so we definitely would have to great. >> thank you. and so it sounds like all options for explored and you know, i do feel comfortable

with this. >> okay. >> thank you very much. >> and mr. rose, could we do a report please? >> yes, mr. chairman, and supervisor tang on page 12 of our report we note that under the proposed new lease, the landlord will construct the tenant improvements and dph will reimburse the landlord for the cost of the improvement and the estimated cost of the improvements are $191,713. and the dph fiscal year budget which was previously appropriated by the board of supervisors includes, $947,211 for this project. >> okay. >> on page, 14, of our report, under the proposed new lease the dph will pay the proposed rent in the first two years of the lease through june, 2017 and will pay the increased rent of $509856 that begins on july first, 2018. the proposed rental rate of

3922 per square foot per year represents a 67.6 percent increase over the existing rent, of 2340. per square foot per year and however, as mr. up dike has stated, the real estate division reports come parable properties are 27.6 percent more expensive than the proposed rent. the total rent paid by dph over the initial term is 2.6 million and that is shown in table two on page 14 of our report and if dph exercises their option to extend the lease for 3, five year terms, the total rent will be paid by dph over the 22 term of the lease will be 2 million. we recommend that you amend the proposed resolution to correctly state that the resolution is authorizing a new lease and not an extension of an existing lease and we

recommend that you approve it as amended. >> thank you very much. >> why don't we move on to public comment, anybody wish to comment on this item? >> seeing none, the public comment is closed. so we do have budget analyst recommendations. >> all right, through the cherry would like to adopt the budget analyst recommendation that we amend the resolution to correctly state that it is authorizing a new lease and not an existing lease and then adopt the underlying resolutions and send it forward to the full board with a positive recommendation. >> we have a motion and we can take that without objection. >> could you call five? >> resolution, approving a lease agreement between menzies afteration and the city for exclusive use space in westfield cargo building, 632 and related area on plot 9, for a 3 year term with three one year options to extend. >> all right. i don't see miss wagner here why don't you call 6 as well and when she arrives if she does, we can do this together. >> item 6, resolution approving

the termination of the lease agreement between the body shop and the city for the boarding area f and the airport commission to occur following board approval. >> okay >> we will skip over those items right now f she gets here. and madam clerk could you call 7 through ten together? >> 7, resolution approving the community development block grant authorizing mater to apply for and accept the cdbg program under the department of housing and urban development in the amount of approximately $20 million, and item 8, the resolution to approve for the housing opportunities for the persons with aids, and to expand the city's hopwa program, for the housing and development for $7.6 million, and item nine, resolution

approving the home investment partnership program and authorizing the mayor to apply for and accept and expend the city's program of entight.ment for the urban development in the amount of $5.8 million, and ten, approving the grant program and authoritying the mayor to apply for and accept and expend the esg program, for the department of housing and urban development in the amount of 1.5 million. >> thank you and we have ryan from the mayor's office of housing to speak on all of these items. >> good morning, supervisors, director of the community development for the mayor's office of house and development and so each year, we come before you to ask for, your approval for us to accept and extend the hud moneys as the clerk stated we have a full resolution that we want to take together first the community

block grant program and this program funds a variety of social services including such services as the tenant counseling and financial counseling, and foundational competency and the people moving into the workforce, and traditional workforce development and economic development, and a number of other services targeting the city's low and moderate households and we for the emergency grant which focus on services for the people that are currently homeless and for the individuals that are seeking to prevent homelessness and it provides some support for our emergency shelters for some transitional housing programs and for the addiction, and the legal services and the rental assist abs and the moving costs, and we have our home dollars which provides, funding for nuk construction, for our affordable housing and we have our hopwa program, a

program that was previously administered and transferred to us and after the redevelopment was resolved and that provides the funding of the ongoing, operations for the long term care facilities for the chronically ill people, with hiv and aids and prosides funding for the long term rental subsidies, for the individuals living with aids, we in november, issued an rpf for the first year of now, a 3 year funding cycle and we have moved a couple of years ago from the one year funding cycles at the request of a number of the community based orization and it will be the first year and it also aligns with the first year of the five year consolidated plan can the long term planning document which will be submiting to hud on may 15th and so again we come to you to ask for your approval and we need to submit

the application, for the plan on may 15th in order to, to distribute the funding and you also have i think, in your package, just in the last day or so, some clarifying language, which you had received from the clerk, and some language that i think that we worked out with the clerk's office and the city attorney's office just to clarify the scope of your approval and you have attached to your documents the lists of the grants and the list of the funds and i am happy to answer the questions. >> and okay, thank you, much aappreciate and thank you for coming here. >> and just to be clear these are non-submaive. >> that is correct. >> and okay, thank you very much, supervisor tang? >> thank you, mr. chiu, i know that this definitely comes up before us, and i am glad to hear that it is now in a three year funding cycle verses thal location and so i am just wondering i have taken a look at the allocations and the

different service and property fits that are funded and i am just curious if based on this new start with the three year cycle if there are any sort of changes or improvements that have been made because of that you can highlight for us? >> i think there is a few changes, and not surprisingly we were limited in terms of some of our changes because with the decrease in funding, we are not able to expand so much unless we have some shifts and i think that the primary shift that we were able to make was we increased our investments in our access to housing programs, we found that more and more people who are seeking affordable housing needed personal assistance in navigating our systems. and so we did increase our investments in supporting those organizations that had the cultural competence to work with the folks especially with the people with limited english, or for example the

seniors that may not be easily able to navigate our system. and another area where we expanded some of our work was in the foundational section in working with our colleagues that workforce development we found that there is to access our system the people had to be able to be at a certain level of proficientcy and both english and you had to have a driver's license and be able to pass a drug test and that is mostly driven by the department of labor standards because of the workforce investment funds and so we decided to expand our range of service to get people up to that level. and because we are working with the people who i think that have undocumented individuals or the people who have no traditional job skills, and so we expanded our work and we traditionally focusd on traditional aged youth and so we were able to expand to the mono lingual adults and the

adults merging out of homelessness and i would say that those are the two primary areas of shift in response to what we have heard and we did go out and do some extensive series of community meetings and in the past, we have found that the emphasis had been on sort of the jobs, jobs, and jobs, and i think that really now what we are hearing is really more support on the housing side and so that is what we really tried to focus on this time around. >> great, thank you for that overview and again, i am really glad that we are moving to a three year cycle, and i am curious to know, you know, at the end of the cycle, you know, how it has been, more beneficial and i think that obviously from the non-profit side, more stability and predictbility in the funding that they are getting for a three year cycle is helpful to them in how they plan out the work and in terms of metrics for measuring, you know, the out comes of the services that these non-profits are providing, and i know that some, actually a lot of these non-profits received funding

not just from the grants, but also from the other avenues, and so, in terms of measuring out comes and how these services are and obviously they provide the very important services in our community and i am just wondering, how, how it works in terms of the funding that you are providing them, verses the funding that they get from other sources. whether that reporting measures up or how does that interact? >> it is very, and it is an interesting and challenging question and i think that for our own metrics we have shifted probably about the ten years that i have been with the department from a hud based method and which is really the unduplicated number that we serve and shift on to focus more on the outcomes as the output sos that it is not, or was this person represented in an eviction, to the advanced proceeding but was it actually prevented not just with the person training but did the

foundation skills actually increase through some sort of preand post investment and i think that we are getting stronger on that and i would say that for, programs that are funded by multiple departments, while we coordinate around the fiscal monitoring to make sure that we are not double funding the same position, we could probably do a better job of aligning, the different kind of metrics and i think that one of the challenges that we found is that each department has their own strategic plan and their own separate out come and so while we have a departmental committee that coordinates the monitoring on the fiscal side we have discussed the ability to do that on the program side and it has been a challenge because each department has such a different framework. though, we continue to talk about it but we have not quite mastered how to bring that altogether. >> we do, talk to each other more, when there is honestly when there is a problem if

there is an agency that is not performing well we will go to the different departments and find out if there is a extrasgy. >> great, thank you and i think that, in terms of the program, and sort of the measurement across the various departments i think that it is something that i am interested in and i know that i am glad that we do have a fiscal monitoring so that we are not duplicating our funding for the same services and, but that is something that down the line i will probably try to talk with you about, and so in any case, again, i very aware of the grant funding that we usually get and so i am happy to support these. >> and thank you, supervisor tang. >> so, likewise, thanks and i appreciate the questions, supervisor tang and we could entertain a motion to accept the amendments for all four items? and as has been distributed in these technical amendments so we don't have to sit for the sxwaoek then forward each of the items out as amended with recommendation. >> so moved.

>> wre we have a motion. and supervisor, mar and we can take that without objection. >> could we do public comment. >> i think that we might have to do public comment on those items fp >> quickly, we will take that without objection and, we wip open it up to public comment and anybody wish to comment on items 7 to ten, seeing none, public comment is closed. and can we have a repeat of supervisor tang's motion to accept the underlying item and amendments. >> so moved. >> and we can take that without objection. >> thank you very much. >> and madam clerk, could you call item 11. >> resolution, authorizing the mayor's office of housing and community development to accept a grant in the amount of $2 million, in the california of department housing and community development local housing trust fund program. >> okay, thank you very much and we have sophie from the mayor's office of house and community development. >>