grant in the amount of $750,000 to fund a project at the wastewater treatment plant to work on recycle water in use of landscaping and toilet flushing throughout the airport terminals this. is just one piece of a much larger upgrade to the wastewater treatment plant. the larger project includes pipes, pumps, treatment facilities and water storage tanks as well as new linkage to upgrade airport terminal systems. the contract for the larger upgrade project will come before the board of supervisors for your consideration in the fall but this simply asks for your authorization for the airport to accept and expend grant the grant of $750,000. >> thank you. supervisor tang. >> thank you. can you talk about what the total is costing and the balance comes from? >> the larger project is part of the capital plan and this is a small portion of the larger

project, and it comes from airport -- i believe it's bond revenue that will pay for the entire project. >> okay. thank you. >> okay. if no other questions mr. rose can we go to your report. >> mr. chairman and members of the committee on page 6 of our report is shown in table two a total estimated cost of the upgrade is listed amount and the proposed grant of 750,000 or 12.4% is funded from the grant funds and the balance of just over $5 million is paid by airport revenue bonds. we recommend haw approve this resolution. >> thank you mr. rose. if no questions we will open it up for public comment. seeing none. public comment is now closed. [gavel] >> all right. through the chair make a motion to send this forward with a positive

recommendation to the full board. >> okay. we will take that without objection. madam clerk can you call item 4. >> item 4 is accept and expend grant for the public health and 200,000 for public health to participate in a program called "san francisco bay clinical trials unit" for the period of december 1, 2014 through november 30, 2015. >> okay thanks. we have dph to speak here. >> i am sharon and i am representing the department of public health. this is a supplemental grant awarded through a joint program to allow for collaborations between u.s. and brazilian investigators. this budget is funded a project in brazil to learn more about the size of the transgender population in rio deja dareo and prepare for a project in that

city is -- now recommended globally by the world's health organization. however, there is no coordinated program to deliver this to transwomen in the area and the risk of hiv is high. the grant will fund a portion of [inaudible] dr. lou and mcgoldrick fallen for one year between the investigators in brazil. dr. mc fallen will be training the team to measure the size of the trans population in rio. the other doctors have extensive experience in developing protocols for prep demonstration projects and providing that expertise to the

brazilian team. thank you for considering this request to accept and expend grant. >> thank you very much. colleagues any questions. we will move on to public comment. anyone to comment on item 4? seeing none. public comment is now closed. [gavel] >> i move we approve this item and send to the full board with a positive recommendation. >> okay. motion by supervisor mar and take without objection. madam clerk can you call item 5. >> item 5 is a resolution retroactive three for the department of public health for a agreement with health care services to get reimbursement for children enrolled inlet healthy kids program and expend funds in the amount of up to 400,000 to finance the program for the period of january 1, 2015 through june 30, 2015. >> okay. thank you very much. >> thank you good morning chairs and supervisors. my name is stella chow, the director of managed care for the san francisco health network of the department of public health.

i'm asking for the approval of this resolution to retroactively enter into an agreement with the department of health care services to receive reimbursement for eligible for the kids in the healthy kids program and these funds to finance the program. this is a insurance program overseen by the department of public health and offers coverage to children 18 and under and at under the poverty level as listed that don't qualify for other programs. it also includes vision and dental coverage. both of which are vital in providing preventive health care for children. as june 2015 healthy kids enrollment was under 2,000 members. the federal funds are helpful to support healthy kids by contributing towards continued operation and management of the

program and resulting in no cost to the city and county to obtain these funds. as affordable health coverage the health care -- the healthy kids program promotes the health of all san franciscans and the proposed agreement require approval of the resolution by the san francisco board of supervisors. as a new unit we think the department of public health. the managers are organizing and reviewing requirements as stated in multiple managed care agreements it oversees and made aware of the requirements from the department of health care services of approved resolution to accompany its agreement with the city and county. thus we are requesting your retroactive approval to satisfy the

requirements of the agreement and continue with the healthy kids program. i thank you for your consideration and at this point the healthy kids program officer kath lean and myself are happy to address any questions that you have. >> thank you very much. colleagues any questions. okay mr. rose can we. >> to your report on item 5? >> yes mr. chairman. as shown in table two and page 10 of our report the net reimbursement to the county would be 119,443. we recommend that you approve this resolution. >> okay. thank you mr. rose. seeing no other comments i will move this on to public comment. anyone wish to comment on item 5? seeing none. public comment is now closed. [gavel] >> thank you. >> thank you. colleagues do we have a motion to send it forward. >> so moved. >> motion by supervisor tang and take without objection. madam clerk can you call item 6.

>> item 6 is approval of bookstore lease - books inc. and the city and for a five-year term with two one-year options for 575,000 during the first year of the lease. >> thank you. >> thank you. cathy wagner with the san francisco international airport. item number 6 seeks the approval for a new lease with books inc. for a book store comprised of the square footage listed in the airport and has a term through june 2020 and two one year options to extend and minimum annual guarantee rent of $575,000 or a percentage of gross revenues whichever is greater and the result of a competitive process and books inc. receiving the highest store and the budget analyst office

recommends approval and i am happy to answer questions. >> okay. thank you. any questions colleagues? mr. rose report on item 6? >> yes mr. chair on page 13 of the report we note under this lease they're required to pay the airport the greater amount as $575,000 or percentage rent and on page 12 the subject lease will generate guaranteed guarantee revenues payable by books inc. to the airport of at least 2.8 million over the term and that excludes cpi adjustments and we recommend that you approve the resolution. >> thank you mr. rose. anyone wish to comment on public comment? seeing none. public comment is now closed. colleagues can i have a motion to send this forward. >> so moved. >> moved by supervisor mar. we will take this without objection. madam clerk call item 7. >> item 7 is lease agreement

and lease between the hudson group retail in square footage and concession space and minimum annual guarantee of 555,000 for the board. >> colleagues we will continue this item and first we will open it up to public comment. anyone wish to comment on item 7? seeing none. public comment is now closed. [gavel] . can i have a motion to move this item? >> so moved. >> madam clerk can you call item 8. >> item 8 is lease amendment lease bayport concessions and the city and premises and modified lease term and annual guarantee of approximately 130,000. >> okay. ms. wagner item 8.

>> thank you chair farrell members of the committee. i am with the san francisco international airport. the next two items are similar to items you have seen recently where the airport is relocating current concessionaires to accommodate construction projects happening at the airport. this item, number 8, seeks your approval for the second amendment to our existing lease with bay port to relocate two willow creek concessions in terminal one and three. the board approved the first amendment to this lease in january of this year to replace a location in terminal three scheduled for demolition. staff has determined that willow creek's location in terminal one needs to be relocated to accommodate that renovation work and determined that the replacement premise approved in january in terminal three is no longer feasible so there is a

relocation of that space as well. the airport commission approved replacement of these terminals for the willow creek concessions. a new term of the lease and adjusted mag from $127,465 and the space will increase under the proposed amendment and the lease termination date for terminal one, the location in terminal one will be extended by two years and six months. this success treated as an extension of the current lease rather than going through a competitive request for proposal process due to the irregular amount of time that would be involved we would have a hard time getting a new concessionaire to build on such a short lease. the term for the replacement premises for bay port will expire in january 2023 so the budget analyst office

does recommend approval with the suggestion that the resolution be amended to take out any reference to the guarantee guarantee simply because that's not necessarily contemplated in the resolution as much as the change of location so it's a bit complicated but i am happy to answer any questions that you have. >> colleagues any questions? okay. mr. rose how about your report on item 8 please. >> yes mr. chairman and members of the committee on page 17 of the report we report that the airport estimates they will pay a percentage rate to the airport of 407,000-dollar. we do recommend that you amend the resolution and approve the proposed resolution as amended. >> thank you mr. rose. if no other questions we will move on to public comment. anyone to comment on item 8? seeing none. public comment is now closed. [gavel] motion to send this forward. >> through the chair i make a

motion to amend the resolution in reference to the budget analyst recommendation to delete the reference of the new mag and send with positive recommendation to the full board. >> okay. we have a motion by tang tangs. we will take that without objection. madam clerk can you call item 9. >> item 9 resolution for a lease with gotham enterprise and replacement leases for two years and the adjustments to the minimum annual guarantee of approximately 27,000. >> okay. thank you very much. ms. wagner. >> thank you last item. the airport is seeking your approval for an amendment with the current lease with gotham enterprise doing business as petes coffee and tea to authorize replacement premises for the current terminal one location and to extend the lease for this replacement facility through september of 2019. the

terminal one redevelopment program requires the closure of gotham enterprise peter's coffee concessionaire and this terminal location is part of a lease that we have with goth ham that includes three locations. in april of this year the airport commission approved the placement in terminal one and extension of the lease term in the new location. this applies only to this one location, not the other two locations that are part of the lease and they will pay the airport minimum annual guarantee of $26,892 and/or whichever is greater and the airport treated this as an extension of the current lease rather than a new request for

proposal for such a short amount of time and because it doesn't include provisions for the mag the budget analyst office has suggested doing this and if you agree i will get these amended this afternoon. >> okay. thank you ms. wagner. if no questions we will move on to santa rosa. your report on item 9. >> >> yes on page 20 of the report we report that the airport estimates that they will pay the amount listed in percentage rent to the airport in 2015. that is 921,000 more than the 2015 minimum annual guarantee of 126800. we recommend that you approve the resolution to delete adjustment to the reference of the minimum annual guarantee of $26,892 and approve the resolution as amended. >> thank you mr. rose.

colleagues any questions. let's move on to public comment. anyone to comment on item 9? seeing none. public comment is now closed. [gavel] we have an amendment by the budget analyst. >> i move that we accept the amendments by the budget analyst and adopt the item with a positive recommendation as amended. >> okay. motion by supervisor mar. we will take it without objection. call item 10. >> item 10 is approving and the ac sigz of one subsurface easement and one construction easement from kaiser foundation hospitals district for approximately 54,000 for the project known as the regional groundwater storage and recovery project. >> okay. mr. updike. >> good morning chair farrell members of the committee. so this is authorization to get easements from the kaiser foundation hospitals district. these easements will facilitate construction related to the regional groundwater storage and recovery project. that boosts our regional dry water supply

through the installation of groundwater walls and well stations. you have seen agreements at this committee before and there's a few more to come as well. this property is located on el camino real in san francisco. cities requiring a temporary construction easement and permanent telephone and electric easement to support the sfpuc facilities adjacent to the facility. and the cost is listed and pursuant to an appraisal which i approved. the san francisco public utilities commission authorized it which is in the board file and adopted august 12, 2014 and that's all i have on this item. >> okay. thank you mr. updike. no questions mr. rose. can we go to the report on item 10. >> yes mr. chairman, members of the committee. in the report we report that it's shown in table one which is on page 23

of our report but based on 10,455 square feet and the cost of acquiring the easement is listed and funding was appropriated by the board of supervisors under the sfpuc water system improvement program. we recommend that you approve this resolution. >> okay. thank you mr. rose. colleagues any questions? we will move on to public comment. anyone wishing to comment on item 10? okay. seeing none. public comment is now closed. colleagues can i have a motion to move this forward. >> so moved. >> motion by supervisor tang. we can take it without objection. madam clerk call item 11. >> item 11 requisition of the real property at 490 south van ness, the purchase price of $18,500,000. >> okay. we have the mayor's

office of housing here. >> hello. the res before you is approve the acquisition of real property at 490 south van ness from the south van ness limited partnership benicia lake llc and maurice casey collectively referred as the seller for the agreed amount of $18,500,000 and the resolution ask that you adopt ceqa findings and consistent with the general plan under the code. there will be a deduction of transfer tax credited to the city upon closing as noted in the report and the final amount paid as listed and creates 255,000 buildable units for the acquisition of this parcel in the heart of the mission neighborhood. 490 south van ness is currently vacant site zoned urban mix use. its former use was a gas station and now

environmentally remediated and ready for development of the site is titled for a 72 unit multi-family development containing over 90,000 square feet of condition space with ground floor commercial and vehicular parking and ample high school parking. this represents the best efforts of the city and chunt community and recognizeing sites inlet the community and to the mission and if sites are identified and are available they will move with maximum dexterity and urgency to take title of the project as soon as possible to create affordable housing in the neighborhood. this opportunity is unique given the fully entitled nature and have them thoughtfully to respond to the development on an

expedited time line and serve low to moderate income households and 20% set aside for homeless families and with the city's goals of building out 30,000 units and a third being permanently affordable. the acquisition of this property is in addition to the pipeline in the neighborhood and they expect to close the transaction at the end of august and publish requests for proposals to procure a developer winter of this year. i would like to thank the city departments and the sellers and the community for having this transaction take place and reacting to the dynamics to produce desperately needed opportunities for our city and specifically the mission. this concludes my presentation. i am available for questions. i brought a rendering so you have an idea of

what the project looks like now and we hope to build in the new future. >> okay. thank you very much. supervisor mar. yes thank you kevin and the mayor's office of housing and development. this is from a gas station to 72 units of permanent affordable housing and it's great and i know we need to do more but what a great example how the city can address the housing crisis in creative ways. thank you. >> thank you. mr. rose can we go to your report. >> yes mr. chairman and members of the committee. on page 27 we report in june 2015 the real estate division conducted an independent appraisal of the 490 south van ness property and determined the fair marshal value as of -- fair

market value is listed and as the department indicated we report on page 28 of the report that the purchase sale certifies that the purchase price will be reduced by a credit of 462500 the amount of the real estate transfer tax that would otherwise be due on the transaction and pursuant to the city's business and tax regulations code. that section specifically exempts payment of the transfer tax for the purchase of property property of the city and as a result the general fund will not receive the transfer tax revenues for this transaction so our recommendation on page 29 is we recommend that you amend the proposed resolution to specify the purchase price with a credit as listed to reflect the city's exemption of paying the city's

real estate property transfer tax and result in adjusted city cost as listed and we recommend that you approve the proposed resolution as amended. >> okay. thank you mr. rose. colleagues any questions for mr. rose or our team? okay. we will move on to public comment. anyone wish to comment on item 11? seeing none. public comment is now closed. [gavel] colleagues do we have the budget analyst recommendations in front of us and under line item. >> through the chair i make a motion to amend the purchase price reflecting what the budget analyst said for the transfer tax that the city is exempt from and move forward with a positive recommendation to the full board. >> okay. motion by supervisor tang and take that without objection. madam clerk can you call item 12. >> item 12 resolution approving and authorizing the sale of easement on the city's property at corner of 23rd street and potrero avenue to the pacific gas and electric for the price of approximately 11,000. >> okay. welcome back mr.

updike. >> thank you sir. john up dike director of director of real estate and this is to sale of easement at corner of 23rd street and potrero avenue and i was going to bring in something the size of the property but i decided not to. this is by the hospital and with adjustments serving the infrastructure adjustments that are made and this facilitates location of an electrical distribution pole. it's an area of over hang of wireos the city's property extending 5 feet on either side of the wires so that's the subject of the easement before you. the purchase price pursuant to an appraisal which i approved. because this is a sale of a permanent property right board approval is required and i am happy to answer questions. >> thank you mr. mr. updike.

any questions? we will move on to public comment? seeing none. public comment is now closed. [gavel] >> i move that we approve this item. >> motion by supervisor mar. take that without objection. madam clerk can you call item 13. >> item 13 is contract contracts with cotton, shires and associates with arup north america limited and geostabilization international for the telegraph hill rock slope improvement project for stabilization and inn constitution of the northwest face of telegraph hill and not not to exceed the amount listed. >> okay. >> this is a project stabilized telegraph hill. it's an emergency project. there are three contractors involved in this project. two of the contractors are engineering

consultant. initially we declare emergencies in july 2014 for the project for all three contracts, but it had to go through a negotiation process. for the construction contract we solicited nine contractors to look at the project. four of them provided a proposal. we negotiated with the contractor that had the lowest cost and also had 2lbe components to their construction contract. one of the construction consulting engineering contract as a result of an agreement with block 60 lot five and the property that stipulated we were to retain them for engineering support during construction. we notified the board of supervisors in march of 2015 initially and the reason was for that we had to make sure that the scope of the work because

it's a telegraph hill rock slope improvement project a lot of the work was behind vej taifive areas that we are to remove to finalize the scope and then we submitted the documentation in june of 2015 towards the end of the project so i will take any questions. >> okay. colleagues any questions? okay. thank you very much. mr. rose can we go to your report? >> yes mr. chairman and members of committee. on page 33 of our report we have a table one which shows the three original contracts total listed. however all three contractors submitted change orders which were approved by dpw for the revised amount as listed on the actual expenditures that you see in

that table are through june 30, 2015. on page 34 of our report we note that the director of public works declared an emergency in 2014 but the resolution approving the emergency determination was want submitted to the board of supervisors until one year later or specifically 346 days after the emergency was declared, and we note on page 35 that although a board of supervisors recently approved ordinances not yet effective it's significant to note that the proposed resolution was submitted 286 days in sceses excess of the 60 day limit pending before the board of supervisors. our recommendation is on page 35 and amend the proposed resolution to delete the incorrect contract amount as listed with cotton, shires and associates and add

the correct amount as listed. we recommend that you delete the incorrect amount as listed with geostabilization international and add the correct amount as listed. we recommend that you amend the proposed resolution to delete the innot to exceed amount as listed with and add the not to exceed amount as listed and we recommend that you approve the proposed resolution as amended. >> okay. thank you mr. roases. i appreciate that. colleagues any questions for mr. rose? okay we will move on to public comment. anyone wishing to comment? okay. seeing none. public comment is now closed. [gavel] . colleagues we have a number of recommendations from the budget analyst and the underlying item. can i have a motion to approve the items?

>> i move that we approve the amendments and move it forward with a positive recommendation as amended. >> thank you very much supervisor mar. we have a motion and take that without objection. madam clerk can you call item 14. >> item 14 is approximately 4.2 million from permanent salaries and premium pay in the fridge departments in the sheriff's department and police department and public utilities commission and for the projected increases in overtime. >> thank you very much. we have ms. howard to speak on this item. >> good morning chair farrell and members of the committee. this item appropriates 4.2 dollars to over time and the same amount from premium and fringe benefits for the

departments for 2014. i believe the clerk has provided to you an amended version of this legislation for 5.$03 million which is based on final fiscal year 14-15 costs. i believe that the budget analyst report reflects the amended version of this item. the three departments included in the supplemental appropriation and deappropriation need to shift straight time salaries to over time for a variety of reasons and including law enforcement presences required at events this year, over time for deputy sheriffs to complete training requirements and vacancies in the public utilities commission. the action is required as a result of the city's over time ordinance and requires eight departments including these three come before you to request the supplemental appropriation should over time spending in their departments exceed the

budget. there is no general fund impact to this request because departments have sufficient salary premium pay and fringe benefit authorities in the budget. i am happy to answer any questions that you have. >> thank you ms. howard. colleagues any questions? mr. rose if we can go to your report. >> yes mr. chairman and members of the committee. on page 40 we have a chart and shows the funds and the department to be appropriated and use of funds to be reappropriated under the ordinance as listed for the amounts and we recommend that you approve this ordinance. >> okay thank you mr. rose. if no other questions or comments we will go to public comment. anyone wishing to comment on item 14? okay. seeing none. public comment is now closed. [gavel] so colleagues could i have a motion to accept these amendments and then accept the underlying item as amended? >> so moved. >> motion by supervisor mar. we

can take that without objection. [gavel] okay. thank you everybody. we have gotten to the two final items and the two hearings and madam clerk call item 15 first. >> item 15 is hearing between the department of the environment's landfill disposal agreement with recology san francisco for the board resolution no. 171-05 and including discussion of the terms of the agreement and support the zero waste goal and time line and request the department of the environment to report. >> okay thank you madam clerk so i know i see mr. rodriquez here and our director of the department of the environment to speak so this hearing. if there are any members of the public that wish to comment please fill out speaker cards. if not we will open it up when the hearing is concluded.

>> good morning supervisors and we have copies of the powerpoint and the new agreement for your reference. first i would like to thank you supervisor farrell for scheduling this hearing at our request. we wanted to make

sure that we're clear and up front with the board about the change we are making in our contract language for this landfill agreement. i'm going to be speaking at a very high level but i have with me two of my colleagues, so if there's more specific questions if people want to dive in deeper we can certainly do that so i think it's important, and i don't know why there is -- [inaudible] okay. i'm sorry. i think it's important for you to understand when we as a department look at a landfill contract there are three standards that we're looking at no matter who we're awarding the contract to. number one the contract needs to be legally defensible and stand up in court and follow the rules and regulations of the city and seconds must be project of the environment and supportive of the zero waste goal. incredibly important to us as a department

and as a city and thirdly the contract has to be cost effective. we need to protect the ratepayers to make sure they're getting the lowest cost and the best service. looking at the current landfill agreement why are we here today? we are here today because we're notifying you of a small contract change, but there's a much larger issue going on. in 1987 the city entered into a contract with waste management to dispose of our solid waste and at the landfill in alameda county. the contract for was for 15 million tons or 65 years whichever came sooner. we are expected to reach that amount by the end of the calendar year, the beginning of 2016. it's important to note that the cost of a landfill agreement isn't strictly off to the rate payers. we have in san francisco another process which is the rate

process and that landfill amount is build into the overall garbage bill that the residents and businesses in san francisco pay. the important point is there lots of public interaction and public comment and time to weigh in as we look at our zero waste programs so just tracking the history of this landfill agreement. it started in neefn 87 and we started the process in 2007. in 2007 we held five public hearings to determine the guidelines for the process would be. in 2008 we did a competitive rfq process to look for qualified respondents. in 2009 we did a public rfp and got two bids and one from recology and one from waste management. we looked at other environmental

factors which came out fairly evenly, but the thing that was very striking was the difference in cost which would translate to over $100 million for ratepayers over the lifetime of this contract. so recology was selected by the panel. lawsuits were filed. lawsuits were dismissed and over the course of the next four years the board repeatedly took a look at this contract. you held four hearings, two votes and after the hearings and the votes the board unanimously approve the process and said in fact recology was the qualified bidder for the contract. >> supervisor mar. >> i just wanted to ask you to slow down a minute and on the environmental benefits of the recology contract my recollection is the reduction in greenhouse gas emissions because of the green rail but with more