>> good afternoon, everyone. welcome to the its budget & finance committee i'm mark farrell chairing this committee and joined by supervisor katie tang and whether be joined by supervisor eric mar want to

thank leo and joshua for sfgovtv as well as the clerk linda wong madam clerk, any announcements? >> yes. electronic devices. completed speaker cards and documents to be included should be submitted to the clerk. items acted upon today will appear on the october 6th board of supervisors agenda unless otherwise stated all right. madam clerk item one. >> a resolution for the authorization of the juvenile probation immigrant to accept an expend a grant from the board correction for evidence practices training for the term of may 2015 to june 30th, 2016, thank juvenile probation i'm ms. hernandez representing the chief that is a training granted we have applied and received from

the board of correction to provide evidence based train for all the at probation officers and probation counselors in the areas ever trauma informed train for the specialized and evidence based training for the probation officers focused on training. >> thanks very much don't see any questions is there anything more you want to add. >> nope fiduciaries seeing none, we'll open up for public comment anybody wish to comment on item number one. >> yes, sir. a matter ever importance any building of the terminating ending to be. >> this is on item number one, sir. >> okay. anyone else wish to comment seeing none, public comment is closed motion to send this item

forward. >> through the chair that is only a 10 percent matching fund one thousand plus coming out of the general fund so i make a motion to send this forward i move we send it to the full board with a positive recommendation. >> motion by supervisor tang madam clerk item number two. >> item 2 resolution for the authorization of the district 2 to accept and expend a grant in the monument of 5 hundred thousand for the preservation to participate in the program for the monitoring project for the period of june 2016 to 2016 we have dpw here. >> good morning. i'm link soon working with the hiv of the district 2 the medical monitoring project. >> ma'am, could you pull the microphone closer.

>> the medical monitoring project is a supplemental surveillance system with the 2004 institute of madding expressing the need for population based nationally representative data an hiv grktd person collects data in order to gain the detailed information both to local and national level or health care and clinical hiv behaviors we have been conducting the mit since 2006 and are currently collecting our data cycle interviewed almost 2 thousand patient in san francisco is includes hiv participants as well not in kiwi reach someone not ref the hiv

care their referred to the linkage navigation program to help them establish or reestablish appropriate care data collected from m mp is shared in san francisco with hiv care providers go go and the planning council and the hiv plan and the san francisco data is included at the national level for the patience in san francisco are used to inform national policies and initiated for hiv infected person in the united states. >> thanks very much we have no budget analyst report anyone else wish to comment on item number 2. >> punishment for hiv people people that are lost people lost

of soul lost with heaven and soul. >> sir this is on item number 2. >> yes. punishment. >> is there any additional public comment on item two seeing none, public comment is closed. >> all right. through the chair i'd like to make a motion i make a motion to send it to the full board with a positive recommendation. to the full board. >> motion by supervisor tang we'll take that without objection. >> item 3 a resolution retroactively 30 years the district attorney so accept a gift of subscription service valued at 38 thousand for the.org website under 2016. >> okay do we have our da's office here. >> i'm the principle analyst for the district attorney's office we're seeking approval to

accept a in kind from salesforce.org for the program an application for the status of the not in kind but the gift of software for the crime strategies unit to focus on crime drivers to make a significant impact on public safety in san francisco salesforce officers the district attorney's office a one year inspiration to administrators of the salesforce for an unlimited amount of $37,000 at no cost. >> great supervisor tang. >> i appreciate this gift to the city i wanted to find through just like 30th 2016 what the department felt. >> we don't have it we're piloting and if if we continue we'll enter into bidding process. >> so you're able to hold

syndrome the data. >> absolutely that is is this is our data search engine for the data. >> thank you supervisor farrell your sponsoring. >> okay no about budget analyst report to pimping on item number 3. >> crime the the challenges unit no such offender sex offender not good not gangs not good >> , sir any comments sir, do you have any comments on item number 3. >> (inaudible). >> all right. anyone else wish to comment seeing none, public comment is closed. >> through the chair a motion to extend this forward i move we send it to the full board with a positive recommendation. >> motion pie supervisor katie tang we'll take that without objection. >> item 4. >> resolution approving a

second amendment to the lease between the city and proximity development for a northeast corner of octavia boulevard to extend to january 31st and to revise the amendment. >> sponsored but supervisor breed and you stole my first item lazarus i'm with supervisor breed this is currently, the beer garden a tear use this resolution will spend that lease for 5 years i know the the budget analyst mr. rose has recommended a shorter lease but i'm offline recommending the release of mr. rose. >> mr. rose you can comment on his over coat later.

>> the kidnapping the 5 year timeline offices the rfp we will have shoved o sheriff's office in the ground right around when in lease is conducting it is a really nice part of hayes valley the goal to build housing but the 5 year extension allows us to do it a mr. updyke will speak to that. >> thank you, mr. johnson mr. updyke. >> good afternoon, everyone. john updyke director of real estate chair farrell and members of the

committee a brief power point to give the context of the market octavia and where this particular lease fits within that overall context so here today, we're talking about parcel l which is a community space used for several years under a lease we wish to extend for a 5 year period it is situated here the lease he is a depth the proposal will increase the current from 2 thesis delores a month to a little bit over $5,500 a month plus a base rate at the percentage as shown the 5.24 of grow average revenues that is a negotiated amount a credit involved to help the

proximity for some improvements around the fencing that is for irrigation and vegetation around the edges of the property as you can see the annual escalations enclosed up to 2.5 percent the boarder context a reminder we have a slew of parcels moving forward through the development pipeline 22 parcels came to us from the state part of the central, if any, a undertook v and here we are talking about l l-22 a number we've set aside so for affordable housing and maneuvering and in 09 we did the interim it is a slashing success well received by the neighborhood and great activation those kinds of pop up used we want to encourage going forward

so the big question addressing the budget analyst recommendation for the short time leases why 2021 terms date a to continue what is working so it is sort the don't mess with success theory second is he know in the piecemeal we have parcel k next door shown on the map ready to come online in 2021 as you can see the unit mix anticipated there thirdly, we have in the pipeline 5 other maneuvering proposals in r s and t staging and staggering those projects in a way that minimize the disruption to the neighborhood and it also take advantage of continuing increases inland values as well so while there would be a delay in the production of 15 units 5

years out we don't actually see that as a negative it is a positive because it is straelg out in a atheist full fashion with the development of the 22 parcels a few things to brought to your attention as well we have done a market after market octavia all the 22 parcels 9 hundred and 343 units will be produced in total ofs 4 hundred and 92 a affordable a 52 percent affordability rate for the market octavia and a broader context in the budget analyst report a certain walking distance this shows i was it was important to show you how we're focusing on affordability within the central freeway project lastly an amendment we desire to

make and this is simply to add within thirty days a execution of the lease we will provide that to the boards we'll get it to linda later today so that that concludes my remarks and happy to entertain questions we have folks from the office of development and other associated with the activation on this parcel we will address. >> thank you sxhafr. >> just a quick question for mr. updyke parcel l and 15 unit slated for development what percentage or affordable you said of the overall parcels along octavia that area is 52 percent affordable up to 9 hundred and 40 but for parcel l what's the percentage and for parcel l as the current code into the pipeline today, the

mandate would be 2.25 units would be affordable and the remainder will be maneuvering again, just the code provisions today not necessarily what the outcome of on rfp to speak to that physically while the property is leased we can put out the request for proposals for the development of this lot that's exactly what we intend to do in 3 years we will have craft the rfp addressing the affordability levels we seek and building it will take about two years to put shovels in the ground as connor noted a quick transition in the interim activations use to building those units how so it lob about two of the 1 units maybe affordable or at least that amount how 2 we'll reach for

greater. >> and the ice cream and the coffee right adjacent it is similarly this is that amount of affordability as well. >> is that a hundred percent percent affordable project yes, in the ami. >> adjacent is the hundred hundred percent affordable i want to say i love patricia's green and the area around that with the temporary uses from the what did you call them the container structures and the use of temporary space from the beer gasped to the other activities we're looking affordable housing from the hayes valley garden spot to across the street to where those two parcels are but i'm looking forward to hearing mr. rose's suggestion but it is seems like the maximum use of

the temporary space make sense i'm appreciative when supervisor president london breed comments as well. >> thank you. >> okay thanks mr. updyke and mr. rose, can we go to your report. >> yes. mr. chairman, and members of the committee on page 4 of our report as mrucht has already can do the minimum annual rent will increase by 2.5 percent annually with the lease from january fwhithd i 31st one the rent of 3 hundred thousand because over the duration of the lease from 2015 to january 31st of 2011 it is shown in table two on page 2 of our report represent for the city maybe higher as mr. updyke indicated from the annual revenues is the percentage of rents that is higher than the minimal rent on

page 5 of our report towards the bottom of the 22 parcels transferred by the state to the city from the street light freeway demolition parcel l is off the market at this time for a lease the the office of economic workforce development proposes to extend the parcel by 5 years and months rather than precede with a bid process to sell parcel l for market rate housing the board of supervisors should consider approving the short-term lease to allow the city to seal the process and sell the parcel for market rate housing as originally intended sooner 2021 and the high demands for the land to develop the housing to accept it will permit

transportation and bicycle safety improvements and the examination of affordable housing in the development the only comment i'll make mr. updyke stayed there will be continued land prices this is conjunction we know right now that land values are high our recommendation on the page of page 6 we recommend you amend to have a short time lease and the office of economic workforce development should precede with pits sell bid to sell for molesters as overflow room intended we recommend you approve the resolution as amended. >> thank you, mr. rose colleagues and supervisor tang. >> thank you very much i think that this is one of those interesting cases you know the city discussed we would fill the space temporarily with great

uses and the communities and everyone loves it so much it is such a great opportunity to see what that space will look like once activate by i on the other hand, understand it was always intended for inform area to be development into hours mr. updyke i know that. >> kind of glossed offer this i want to see if you can talk more detail about the parcels and the construction work how it in terms of the timing all of the this coming online and how to impacts hayes valley my understanding i think it is good to stranger some of the construction work given the impacts on the neighborhood we're arrested seeing if you could hone in on the details of some of the other developments in the adjacent area that are coming online. >> are you speaking supervisor tang from the office of economic workforce development there kind

of two you know the parcels along the freeway of those we've seen significant development already 6 market rate housing parcels every parcel equip for parcel l is in active negotiation we should see them moving forward with the entitlement and shovels in the ground with completion in 5 years we've already seen about 33 hundred units overall in the market octavia right now so 15 units is a drop in the bucket we expect things to move quibble on the parcels right now hope to close quickly and hope to take advantage the planning exception in the market octavia and get those units online as quickly as possible. >> also i know that pleasant mentioned that earlier but to reiterate the recommendation our

budget analyst has given us shortening the lease to one year so it allows for a rfp process or the bidding process again want to emphasis or confirm on the record entering into a 5 year lease does not preclude the city from moving forward. >> that's right supervisor from two perspectives one we want to be assured the interim use is there and active up until development that provides - from the tenants prospective longer than terms allows them to make long term investment decisions we want to see this and it require capital it provides bro bo both sides between the interim and activation process in 2021.

>> okay. seeing none no other questions that i am on item 4. >> one year lease as compared to 5 year lease section of the function always benefit for people i how, how- how you drive for the condition the lease how you try put- all into that part for the planning but good hope. >> anyone else wish to comment on this item please come on up. >> good morning. i'm robin levitt a 20 plus year residents

of hayes valley i led the campaigns to replace central freeway with octavia boulevard the last ordinances was proposition i in 1999 i handed you copy of and i just want to hand you that to confirm what mr. rose said when proposition i passes in 1949 it called for the development of these parcels and the preys from this sale or lease of those parcels to go ignore transportation in the area of octavia boulevard the reason that parcel l is being used now for the beer gardens is because in 2008, when the market octavia the real estate crashed and the city decided to have temporary used 0 on those parcels until

the real estate market recovered and sell the paralyze for a better rate we've recovered and we desperately need housing in the city hayes valley is grasping with a lot of transportation problems around oovnd and public safety and bicycle safety and so forth we need the funds from the sale of those paralyze to deal with those translation issues i love the beer garden don't get me wrong i love it the proximity to those sites but they were meant to be temporary uses until the market recovered we could sell the parcels for what they were intend to be i suggest i agree with mr. rose a short term lease until the city can get together the

paperwork and all parcel l to sell it is is a better solution in the meantime. >> thank you thank you. >> thank you. next speaker, please. >> i have my card hi 24 years ago i had a store our hayes street and called caltrans about that freeway that got damages it should come down many places have come the sister or mother business to the beer garden has been there for 2 two years now i think douglas at proxy i couldn't remember and time he wasn't there he is a fabulous neighbor and the beer garden has many event a great meeting place right now with 0 so many new places coming online we need

places to be together as a community so i'm in favor of expending the lease and i think that in 4 years that will be worth even more and you'll make even more money thank you. >> thanks very much. >> thank you. next speaker, please. >> hi and sarah i've lived in hayes valley for 18 years and worked on prop i when my kid was in kindergarten he brought a sprout and no where to plant it he asked the beer garden to a plant it aaron and matt nurtured that into a beautiful sunflower and done the same in the communities in the form of a beer garden a rare grandfathering place to meet the neighbors with the massive amount of construction in hayes valley it make sense to hit the

pause bottom and let the other projects be built and we won't be sacrificing but allowing the best possible use of the garden and be able to have a permanent use for the space in the meantime the beer garden is a place we celebrate and gather and it is a environmental use for that parcel it is the best possible use i would think thank you. >> thanks very much. >> thank you. next speaker, please. >> hi, i'm kate a long term residents and thank you for supporting the beer garden i wanted to talk about showing how san francisco, california be a little bit not child friendly the beer garden is child friendly and the only place

walking distance from my house he be with adults and kids at the same time and it is okay and nobody cares your kid cries if that he run off there's a fence owe someone is kooeb their and out and if we want to meet people at table they don't care if you bring in toddler snacks it is a place for little people to be together it is so environmental and important ask them to please continue it thank you. >> thanks very much. >> thank you. next speaker, please. >> i representing the over 80 contingent i've my husband chuck lives and aids home a assistant living facility at hayes and laguna and been there 8 months we happily experienced the beer garden into through e there two

or three times a week the beer garden a second home chuck is in a blower and accommodated when at the goes there we've had great fun and met any new friends and enjoyed the wonderful food and introduced the beer garden to frame members and friends and other residents we just don't know what we'll do without the site i have many letters from the folks that visited the beer garden in interest of time a couple of listens if friends in sonoma the beer garden is an absolutely give me if one wants to understand and appreciate the neighborhood that make up san francisco and hayes valley then the beer garden provides a perfect example and in the ends they say it is a hidden gem

should not be be hidden and thank you. >> thank you. >> thank you. next speaker, please. >> >> good morning. i'm charles i am a hayes valley residents i live on page street octavia with my fiance and own a restaurant in hayes valley on hayes street i'm here to express my unanimous support for in project and it's extension the approximate development and beer garden has been integral if the success of the launch of my own small business and the team that operate that bar in any professional opinion some of the best operators i have come across in any professional experience it is a place that i patron misses with friends and

out of town gift is adds a tremendous tremendous opportunity and draw bringing people from within the city and outside the city to the hayes valley community there incredibly supportive operators and give back so much from my own selfish beer and sausage loving needs as a small business owner as a fellow restaurant operator here to speak out in full support of the extension of this >> (clapping.) thank you. >> thank you. next speaker, please. >> >> hi, i'm jimmy lived in hayes valley for 12 years with any wife we're stronger sports supporters of expectation of the beer garden everything that was said is absolutely true how wonderful as professional

operators and activation oversees and what hadn't been discussed you how much they give back to the community and the charity events they've been amazing while we were integral in developing the concept of the temporary uses this is a perfect example of one that is worked extremely well and it is sort of sent inspiration it out out to other people how to do temporary use well the comments that were made about this is a perfect opportunity to transition and be sure that the site remains active until it's ready to be shovel ready was very good you know get the rfp going and you know 3 years out this site will be complicated it faces parish

screen the shadows issues will be complicated so having enough time to do this properly and have the site remain active is critical and supervisor tang made a good point about the amount of activity and having k and l go in from the at the same time is a blessing to the neighborhood we have incredible amounts of development we've welcomed and having them together more is more manageable so thank you very much thanks very much (clapping.) >> thank you. next speaker, please. >> hi maims and peggy i'm a 21 year residents of hayes valley i'm a small business owner i just want to speak in support of the extension of the lease for the beer garden and i've been there for 21 years count time a they've been there they've been we have very

responsible and friendly and active in the community the beer gardens as served as a space i came from a meeting from parklet we're losing open space and green territory although beer garden didn't qualify we need open space to expending the lease will fill the need in other parcels around them that are dormant for example, the communities gardens has been overwhelmed and people got kicked out and it has remained vacant those can be developed while we get affordable housing in and maintain and develop public and open green spaces. >> (clapping.) >> thank you. next speaker, please. >> hello, i'm i started here 232

years ago in hayes valley sorry and i think you know, i come from a place that has many beer gardens every part of town is important for the whole communities and also for the value of the houses that are standing around it so i think our little part of shaping hayes valley to what it is nowadays should be considered and now just like okay. now it is all nice you know let's develop it you know and make money out of it is not only about money it is really about county to build something from the ground up part of the organic movement and part the farmer's market and beer gardens what the city needs in order to have a civic life it

is not only about two people more who have an apartment there it is more lightning like what do you want your city to be do you want it to be like developed everywhere and have bike lanes and building or like spaces with people in our age group what go with their children and have a great time altogether. >> thank you. >> thank you. next speaker, please hey, i'm speaking for the extension of the beer garden give you a little bit of background i'm jake i'm a native to the bay area originally from marin and owned and operated a juice comment 40 in san francisco is my two brothers and brother's wife i want to speak about the owners i met matt and

aaron independent of the beer garden i remember just couldn't tell you what we talked about but leaving that conversation those are two special people that are compassionate and loving and caring this reflects within the beer garden what they've created you know they have a sense of community and i think from this specific things they over as well how they train their staff and how friendly it is a unique thing they've created with the douglas and others they've created some special especially in the city it is changing rapidly and hard to find those contestant based areas people conjugate what that woman said up here the fact all knows ages is really wonderful on any given day you know you

can really find people lined up around the block the word is out it is a special plays and especially for the 5 year extension on any given day you you know you can talk to the owners you know their mother is literally going to be putting a blanket on your lap if if our cold they should definitely be here to stay. >> thank you very much. >> thank you. next speaker, please. >> hello, i'm eric i'm a big fan the approximate project didn't plan on speaking i thought it was important to speak about community there's a lot that goes on when it get to the green area on any sunny day most days the communities how vibrant it is it is due to what is going on i give full support to the extension you talk to a lot of

business owners and what the beer garden a lot of places it is kind giving the basis any given weekends whether with children or families friends find a vibrant spot if make sense to continue this for the 5 year leased or longer it is something that is wholly lacking in san francisco it is important for the community which again san francisco is unique and thank you. >> thanks very much. >> thank you. next speaker, please. >> hello, i'm jake i'm a native the hails and a tenants i was going to speak to the community and what the beer garden represents to the community that was done so i'll speak to the place the beer garden helps to

insure that hayes valley a designation for people throughout the bay area it is a place that people are excited to visit a mainstay of local communities i support the community the beer garden. >> thanks very much. >> thank you. next speaker, please. >> hi greg hamburger a local hayes valley residents, developer and business owner. >> currently working and developing parcels h, j peculiar v and t with the city ten years ago, i started working in the neighborhood on 55 page street we had to sell over investors in the future of hayes valley and why this would be will a great neighborhood in san francisco it is far exceeded anything we could have imagined 10 years ago

it speaks one of the great san francisco neighborhoods it is also i think kind of arrived to a whole new generation of san franciscans a lot of the locals have been there for a long term they knew that but given the central location the public transportation, the proximity to jobs, the great restaurants, the cultural institutions not everyone knew that i think that now with everything has going on the open space has become even more important with all the various parcels under construction and in different phases of development the neighborhoods in a really bind and i think keeping the beer garden under the approximate it and supporting them it is a vital part of neighborhood aaron

and matt have been wonderful and support hd n a and provide fundraiser for the community they're great with their employees and created a designation i hope we can support them and help them moving go along thank you. >> is there any additional public comment on this item all right. seeing none, public comment is closed supervisor mar. >> thank you. i the president to say that i'm appreciative of mr. and mrs. report i think he raises good issues but to supervisor tang's points to the coordination of the parcels that make sense the extension of the lease i'll be supportive i have questions to sarah and stella on the affordability of the 2009 hundred units only 13 percent are affordable i know with the

parcel k is hundred percent affordable to hundred 20 percent ami fritter homeowners but why only 13 percent of the roughly 3 thousand units in the pipeline affordable mr. updyke mentioned that over 50 percent should be affordable by the time the units are developed. >> to clarify what mr. updyke was saying over 50 percent of the former freeway the parcels we've been speaking about all the development on those friday parcels will, affordable the broader neighborhood was not covered by the neighborhood to inclusionary area caps the affordability at twelve e 12 percent my parcel not subject to city control as those parcel when i add the 50 we're able to

achieve with control of them are parcels underway in hayes valley it gets delatitude the punch line without that the nature of affordability will be different. >> this highlights the hockey's with the rapid displacement and additions we're logging the affordable units to short-term rentals and other effort in the city and we're not this anywhere near enough the affordable units but the parcels on octavia boulevard we doing everything we can but it highlights the issues that working-class families are pushed out the hayes valley residents i'm supportive of the lease it is a tremendous lease with the david best temple it is a great community benefit i wish

people will talk about the displacement rapid displacement in the mission district and how it is challenging us i'm supportive of the lease but brings up the broader issue i know it is coming up in another agenda item today thank you to sarah and mr. updyke for the presentations so i'm not going to be supportive of harvey rose suggestion you in the community benefits to a particular neighborhood but the challenge to build more affordable housing and to look at it every single project that comes before us in that lens as well thank you. >> supervisor tang. >> thank you very much i do also agree with supervisor mar i appreciate the budget analyst recommendation to shorten the lease you, however, at this time i want to honor all the work that has gone into this area and when the site was intended for all along i think

that the 5 year lease will still give the community the opportunity to have the open space and enjoy it while keep going up for the eventual project i want to make a motion to approve the item as is. >> supervisor tang has made a motion quickly before the vote i want to thank everyone for coming out and appreciate the recommendation from the budget analyst that comes down to the quality of life in the neighborhood i've heard from the neighbors in hayes valley and a few bar owners as well those who come out and spoke that is apparent with 3 young kids to have a safe haven it makes sense and supervisor mar said we're balancing the affordable housing with the quality of life as well that is a very good discussion but it is incredible for the neighborhoods we look forward to

seeing this continue i'm happy to support that motion pie supervisor tang. >> through the chair there is a technical amendment posted by mr. updyke what you like to do you want that. >> we can perhaps rice the motion to accept the motion by unemployed and accept the line items we'll take that without objection. madam clerk call item 5. >> item 5 is resolution approving and authorizing the termination of a lease and development agreement with the rehabilitation and the geneva office buildings with the given office building and power house and authorizing the general manager the rec and park department to execute a tremendous termination. >> >> good morning project director and the rec and park

department designed by the reed brothers that designed the complaining hotel the geneva power how is it the last electrical railway it is was a city landmarked and listed on the historical place the receptionist represents acquired the building from muni and the star-spangled bannertion project was completed partnership with the geneva and power housing hours were instrumental in saving the building the vision of the building to create a arts center for job recommended arts transcribing for underserved youth and programming for all communities members from told her to seniors between 2007 and 2015 they got funding for the capital campaign as well as the youth arts in 2013, the given

power house received the categorical from the balboa park central station from the development plan in 2014 to achieve the project developments goal the board of supervisors approved a lease disposition and future lease with the friends the rec and park department project partner for over a decade the renovated carbarn in design will empathize over 20 thousand square feet it is rehabilitation includes a seismic upgrades the modern facilities and ada assess and creative studios a cafe and exhibition place a communicate living room and retail spaces the secretary of interior standards and the treatment of historic places will be applied the building at a minimum will receive legal status bans the final documents the

cost estimate for the project is now approximately $29 million and city funds and tax grants and foundations from individuals given the hi restoration the friends found the funds difficult the difficulty if raising the funds the city said in a study by the wallace group by the office of economic workforce development this purpose of study to investigate ailing alternative approaches to the renovation of the building 0 two-phase phase one just the power house and phase two the office section of the building after considering the proposal a multi agency coalition the rec and park the office of economic workforce development, commissioner avalos office and the san francisco arts commission determined that a phase approach will speed up the

kafgs and generate new renewed interest this is important to know that pursuant to the strategy is just more chiefable for the power house is $8. million under the new approach the city has the responsibilities for the power house and it is part of the office of economic workforce development development in the pilot neighborhood assess activation program unfortunately adopting that termed the - rather than to waiting to terminate after the schedule excuse me. after the termination date and the performance the department of friends will terminate the lbd a early the friends want to continue to be involved in the success and welcome this participation the finances will likely focus

in the future by providing input two the development of the building 31 thousand square feet and the programming vision will be maintained american people inexpensive beautiful place for community events the phase one power house is the simplified project and the improvements are hazmat and seismic stabilizations and landscape improvement a new roof and reversed windows and electrical systems lastly the planning department conducted that the phase one project will not be a substantial modification and that no impact on the determination for the review from the project in 2013 and okay. thank you very much supervisor mar you're on the

roster any questions? ongoing mr. rose, can we go to your report >> yes. mr. chairman, and members of the committee on page 10 of our report based on a design development estimate preempted in july of 2015 the estimated office the carbarn is $29 million plus of which $6 million plus is for the phase one power house project and $22 million plus is for the phase two office building project as shown in table two on page 106 hundred thousand plus previously appropriate by the board of supervisors for phase one and leaving a balance of $6 million plus needed to be secured for phase one of power house project we recommend you approve that resolution. >> okay seeing none, inform other

questions opening it up for public comment anybody wish to comment on this item. >> geneva ci city. >> okay. >> next speaker. >> hello, i'm beth for commissioner avalos office i'm here to support in termination the geneva carbarn is a tremendous building an incredible asset a heavy lift a big building with historic status and needs seismic upgrades that is an expensive project and not possible for a community group to do so we're very excited with our team approach working together with rec and park and nicole has been a tremendous project director on this project for many years and working with amy with the office of economic workforce development and our office the san francisco arts commission

and also with the northern california community fund we feel with this very integrated multi disciplinary team we'll be able to make that happy to get the building activated as quickly as possible to have it as a community benefit but also to show private funders that is a viable project we are excited by the basically approach and look forward to opening the power house and 2011 everybody to participate. >> is there any additional public comment seeing none, public comment is closed i'll say thanks to rec and park and commissioner avalos office i actually was out there meeting with the geneva it is sad not going forward as talked about for quite a while we're in good hands with rec and park happy to see that moving forward as the

city taking overflow room ownership. >> love to entertain a motion to accept this item and motion by supervisor tang we'll take that without objection. madam clerk item 6. >> resolution authorizing the public health to submit a one year application to continue to receive funding for the expensive hiv preservation program for the california massage therapy council and requesting the fund if jan to 2016. >> dpw is here to speak. >> good afternoon. i'm john i'm here to represent the department along with dr. this will be the 5th year of our grants to - from the centers for disease control and prevention

this is reaching the most vulnerable people effected by the hiv sex with men and injection and focuses on people with color the grants supports the risk activities within an emphasis on hiv testing with the organization as well medical settings i want to take this mom to recognize that grant over the directing has had cuts since 2012 and the board of supervisors has been understanding of the needs of the san francisco community and have been making us whole i'm here to talk about any answer any questions about. >> why not move on to public

comment anyone wish to comment on item 6. >> action item number 6 grant application centers for disease control comprehensive preservation programs application the amount of $6 million plus totally totally misuse of tax versus funding it puts it into me it changes it to a better universe. >> anyone else wish to comment on item number 6 seeing none, public comment is closed just want to say thank you for coming forward with this and best of luck with that and certainly hopes it comes through

we'll taken entertain a motion we'll take that without objection. madam clerk if you would call item no. 7. >> item no. 7 hearing on tax collection from enforcement of the short-term rental ordinance with the treasurers office and the office of short term rental administration and enforcement to report. >> okay. thank you madam clerk so this item was sponsored by supervisor campos who is just coming into the chambers i'll i'm going to turn it over to once he catches his breath. >> thank you very much mr. chairman. >> thank you to my colleagues for hearing that item today i'd like to thank kevin guy who is the new head of the office of short-term rentals and landlords

to hearing from him a couple of points i know there are a number of people in the audience on both sides of this issue 18 months ago a short-term rental law that was written in from our prospective in a very close partnership with a multi billion dollars hosting playroom o playroom was passed the so-called airbnb law was by the the same the very planning department staff charged that enforcing that allow e law that law was deemed to be unworkable an urban enforceable we saw a report from the budget and legislative analysis i see mr.

rose and his team are here that confirmed what we were hearing if over planning department staff that this law couldn't be enforced today, we are seeing the consequences of this broken law less than 6 percent of people that are doing short-term rentals in the city and county of san francisco have rent-controlled unit with the city that means that 94 percent of the people engaged in this business have breaking the law here in san francisco we know that based on at the numbers given to us by this agency we know that there are 6 hundred and 687 people that are duly registered as hosts but that we have about 10 thousand listing and actually more than 5 thousand listing from airbnb lee alone those numbers are

unacceptable that means that less than one in 10 hosts are following the law in san francisco and we see so many examples not just simple violations by serious violations taking place the very recently story from the press about the house sitter that put his clients home on airbnb without the owner knowing that was happening i think the owner was at burning man and stories of attendance like susan west fields her landlord evicted her mac $250 a night year-round on apple rent control apartment a place she would for 15 years we're talking about fairness and

affordability and more importantly the issue of the day about housing the impact of short-term rentals on san francisco housing stock has been brutal according to the reports that mr. rose and his team put together airbnb is fascist the loss of between one thousand to 19 hundred entire homes in the city and county of san francisco this is a by way of more than we will be lucky enough to build in prop a passes this november the impact is actually worse in some neighborhoods lake the mission up to 40 percent of vacant units are being airbnb and the hate it is 43 percent in the castro it is 35 percent and the numbers you know go on and on it is staggering

we have a great deal of at stake a couple of months ago by way of a points of reference when the chief environmentalists did a studies on airbnb he indicated even the alleyways loss of one unity of housing is significant in san francisco that the loss of one unit of house of representatives in san francisco costs the city 2 hundred and $50,000 and it eliminates any positive impact that maybe brought forward through a tourist rental now too months ago mayor ed lee announced the creation of a new office the office of short-term rentals it was presented at that time as their solution to this crisis we are facing

and so today, the purpose of that meeting to give mr. guy and his new office the opportunities to present to us on what they're doing i want to have a better understanding how this newly formed office is addressing the issue of enforcement considering that the law that was passed by this board does not enable this office to collect data nor does the law enable that only require that only registered hosts be puts on those websites i also want to note that there is no commission that is overseeing this new agency the office of short-term rentals there is also no commission that oversees the city administrator's office in turn

oversees this agency the only oversight through the board of supervisors that's why we're hosting this hearing today with that, i'd like to again thank kevin guy that provided information to our office the director of this new office for being here today and i want to give him an opportunity to present i know that i have questions for him and i also want to thank our treasurer jose cisneros who couldn't be here today, we have a policy and elective manager amanda that works with us as well to provide information with that, mr. chairman kevin guy. >> thank you for the introduction supervisor campos

so once i'm kevin guy the director off short-term rentals so your office was created for the short-term rentals property that went into effective february 1st of this year to recap the rules the program allows the residents to rent out their units for less than thirty days the most important condition the hosts must be the preliminary residents must live in the occupants our 2 hundred and 75 days out of the year only one unit rent-controlled unit per host no outstanding violations and not a below market rate and not the result of a ellis act eviction a registration from the tax clerk's office and must registration with our office of short-term rentals so once registered the unit may be rented out for not more than 2

hundred and 70 days the owner is not present during that stay maybe rent-controlled unit out for a hosted with a permanent host is in the residents taxes must paid on the rates from guests and they may not collection more than their monthly rent from the folks now shift to the status of our work we are relatively a young officials but all to highlight that sort of daily operations of the office two main function to register eligible individual that wish to host short-term rentals and the second aspect is the enforcement of the properties that are host short-term rentals without registration are in edition or violation of the rules first to summarize our status to date we have rent-controlled unit 6 hundred and 67 applications that

is out of a total of 8 hundred and 66 applications submitted one hundred and 90 were rejected and some currently under review new summarize the enforcement forevers so february 1st of this year we've received hundred and 77 complaints 50 of over and over those complaints were investigated and closed for a variety of reasons either no violation was occurring or the property came in compliance with the issuance working with the office proactively or that we issued a notice of decision we found a violation we assessed the penalties and those penalties were paid so to date 9 of the notices of decision that have resulted in penalties totally one hundred and thousand dollars the enforcement including the assessment of penalties have been conducted

under the enforcement provisions of the code the penalties i mentioned don't represent the entire enforcements are the penalties assessed for short-term rental violation the notice of decision he represent the okay of enforcement on cases investigated in the administrative code where we have a violation found in penalties assessed an ongoing process we continue to investigate cases and bringing them forward to the future meeting and if a violation is fined penalties will be assess current 2 hundred plus from the planning department process 0 hundred and 27 cases are being investigated i should mention the majority of cases have been filed within the last two years the office of short-term rentals coordinates with the planning

department and the city attorney's office and the tax clerks and the department of building inspection and any other offices so the sense that concludes my presentation. but i'll be happy to answer any questions you may have thank you. >> thank you colleagues, i do have a number of questions for mr. guy can i get clarity in terms of the penalties the hundreds and thousands who are those penalties levied against. >> properties where we investigated we had a complaint files either but a member or another agency and over team investigated did find a violation that occurred we held a follower hearing and sdermdz are determined the violation had been occurring that's a mechanism we assess the

penalties. >> have you issued any fines against aaron or any of the hosting platforms. >> no, it is situated around the individual properties in violation and is responsible parties. >> so i want to be clear so my understanding is that there were a hundred and 7 that complaints that were filed that there had an 2 hundred and 36 complaints that were investigated and closed since 2010; is that correct. >> that's correct. >> the case under the old planning enforcements as well as the administrative codes. >> out of those complaints has the city issues a fine against

airbnb are anyone else. >> not to my knowledge none under our office the legislation and the process at least now looked at violations an individual properties and the responsible parties. >> and this is true even though i have only 6 hundred and 67 people registering yet 10 thousand people that are engaged in short-term rentals. >> yes. i've heard various figures the numbers flublt over time some of the number maybe multi listing under the same platforms yes, but prepared 6 hundred and 6 that currently. >> let me begin in terms of the enforcement plan what is your plan in terms of enforcement relative to the 94 percent of people that are engaged in

short-term rentals but not rent-controlled unit with the city is violating the law. >> our priority in terms of enforcement are going after the egresses violators people that have multi units in the same building or across the city and looking at those cases where some of the negative impacts that can be associated with doing short-term rentals wrong can really be most fairly felt looking at again multiple violations across multiply properties the enforcement didn't focus on, on those people are violate because they're not living on the property or a permanent residents it is for those pens are not there to be public active but a deterrent

but they need to come in and talk about their registration and demonstrate they are legal. >> so i thinks what you're saying are you going to go after unregistered hosts. >> yes. we're going after unregistered hosts. >> okay so i don't know what is your estimate how many hosts are out there if in the 10 thousand how many do you think are out there. >> to be honest it is difficult to put an exact figure again, the number of liz fluctuates and the number might not the same platforms with the same individuals across multiple properties i fully acknowledge that number it is changing and hard to pin down in

non-registered non-registration and non-eligible about are taking units off the market are enforcement priorities. >> less is the number of liz we think 10 thousand is too high an estimate for the number of allergies. >> it's higher than the numbers i've heard but i would imagine there is certainly times where interested short-term rental has peaked around holidays and special events. >> how much staff does our agency have right now. >> we're a total depth of 6 we have myself the director and three staff that are essentially on line from the planning department that have been doing the enforcement and registration work taxicab we have several positions we're looking to staff up in the next several weeks. >> right now as of today, i

guess today is wednesday, september 30, 2015, how many employees. >> we currently have 3 employees plus microfilm again, we're conducting interviews actually for the positions and spent to fill those shortly and work with the planning department especially we have cases of kind of overlapping planning issues and the administrative code issues it didn't necessarily represent the sum total of resources at our disposal we have folks if in the the office doing this work familiar with the cases and really set up the from of the progress so the additional hires should make those efforts more robust. >> i'm trying to said with 3 employees even though i have 3 on alone loan from planning how

can you realistically go after the thousands of unlisted hosts. >> i'll point to the fact that statistics i've mends the hundred and 77 since the first of this year 50 have been investigated and closed is it fair to say not necessarily every complaint automatically leads to a violation of penalties there are certainly cases a neighbor another agency may building there's a violation we investigated and no violations occurred over and over those folks come into a compliance i'm characterize those as successes you're referring to as far as the larger number the reality is no as with any law you'll not been able to achieve hundred percent total experience but continuing to ramp up enforcement and

assessing penalties when appropriate putting the message out there, there are real consequences for not following the law serves as a deterrent and someone will demonstrate they can do it right. >> none is asking for a hundred percent compliance but 6 percent compliance that is different than what you expect so you mentioned about the egregious violators and bad actors how do you find out who is an egregious violator or bad actor that you look at this case. >> rights it is a question of priorities we looked at every compliment we receive to make sure a violation is occurring the circumstances that fall under the umbrella of egregious is different we roanoke county an individual not even global

for the program let alone their renting out a unit they don't live in that's kind of a textbook case of what someone takes a long-term residents from san franciscans we're looking at folks that we know potentially are multiple violations on different properties folks who may be renting out blaufrt units or ellis act evictions large properties with sort of a block of units would you tell us going into the specifics of ongoing cases declares a variety in the circumstances and characteristics of each individual case and we want to again, we want to put our resources to best use for the egregious violators but none it above the law to use that phrase

and it is important for everyone that wants to do this activity to do it in the rights way. >> in terms of deciding whether to investigate someone that is might be an egregious elevator or violator is that based on a complaints driven investigation or are you on your own trying to figure out who is an egregious violators. >> it's a little bit of both but it is containment griffin i driven we pick up on multiple violations occurring across different properties maybe the same folks an individual may give us that information why this is an egregious case and people living in conditions are close together and multi units people tends know some of the

information and willing to provide that i should mention that we do receive complaints referred by department of building inspection for instance, if they get a complaints about construction they may go out and find next slide, please an unpermitted construction but that resulted in a creation of short-term rentals that are - those are cases of good enter is agency and it is egregious with multiple violations across codes. >> is there any situation or investigation you have right now that was not complaint driven. >> again, i do want to get into the specifics of ongoing. >> i'm not asking about the specific information it is a general question any investigation you're working on not complaint during which and

we're primer complaint driven but we find other violations and a pro-active follow-up on that specific complaint. >> you're going on record saying you have investigations that didn't arises out of complaint that was filed it was on your own no complaint. >> started with a claimed and through the investigation of that complaint our staff found other information. >> i want to be clear every single investigation that your engaged in right now started with a complaint at some point. >> right we're a complaint driven progress we have to make your capabilities and it is now more be robust. >> for you guys to investigate someone has to report the problem and make a complaint. >> to date that's been the process i will say that those

things go hand in hand oftentimes the notion of someone being a egregious violator those are the units most obvious and subject to complaints. >> you can see why that is a problem rights you can see why you have thousands of unregistered people where you have you only filed 9 you know cases where there's been enforcement action that if i'm someone one of the thousands who those not rent-controlled units i'm looking at the odds the odds that you're going to actually go after them low unless someone is willing to come forward and quite frankly unless someone knows what i'm doing you'll not know about that. >> i want to reiterate again those are 9 decision letters are

recent outcomes of concludes ever hearing undertook the administrative hearing we want to follow the process and before we issue violations make sure the violations are occurring those 9 represent an initial step moving forward of holding additional hearing and assessing the fees appropriate and the 9 letters issues as far pretty substantial penalties don't represent the whole issues prior to the creation of the office of short-term rentals was a violation great the planning code and through the process they've investigated and assessed penalties as appropriate and trying to gets folks both inclines and close those cases. >> can i ask you a general question how you measure going forward the success of our

office let's say in a month from now we're still and same level of inclines in terms of registration how do you begin success. >> supervisor i think you make an excellence point success is we are relatively young again needs to definitely continue with the registration efforts holding outreach efforts in the communities and perhaps evening hours tried during the registration round when the law went into effect and quite successful in getting a lot of people coming in originally and explaining what the rules and get rid of myths and educating the public better will be a success and continue to successfully investigate and

conclude complaints with penalties as appropriate to the case. >> did the mayor give you a target for specific set of goals that he want you to accomplish. >> i have not been necessarily given numbers like that but contrary that the mission of the office from overall and everyone and we're taking this to heart to take, a process that is working a good start and enhance and make more robust capacities and try to find efficiency in expedient cases and make that easy for the public to understand the rules and get registrations. >> so you don't have a target level of compliance 50 percent by the ends of the year or 75 percent bends of the year you don't have those kinds of

targets. >> i wasn't mandated a number again, the mission of the office as i said two prong registration and registration for those who want to follow the rules and enforcement against those who don't and continuing the work and making those processes even betters. >> going back to the 9 cases that were filed with penalties levied in the past 8 months the city has founds 9 violations or any other violations. >> what that means those with were the 9 cases thorlg investigated and where we found violations and penalties assessed didn't mean that those are necessarily the only 9 people in the vast complaints that are in violation it means

that the investigative work is ongoing for the remainder of cases bringing fords those cases and issuing penalties as appropriated. >> so there's a time one hundred and 77 complaints filed and then i see the numbers that you were unable to find fault in h and 68 it that what we're looking at i know if we pursued 9 cases and 9 cases of violation what about the h and 68. >> the hundred will 77 complaints 50 were investigated and closes those those are essentially taken out of the total load of currently active cases since february won those are closed we found no violation occurred property owner are the person of interest contacted us

proactively and brought it into experience before we issues a complaint or assessed the pentsz the penalties were paid intauth be those out one hundred and 27 open cases some are penalties to be paid from the notices of decision and other investigations ongoing so it's not as to those remaining open cases the investigation are going on the perk they taco take longer to investigate and determine what is going on and on an average how long a case to come to a close. >> i don't know that you can put a uniform timeframe each one is different o some of the those conclusion with the complaints that started the complaint was

the first step complaints filed in june or july of this year so relatedly quick turn around for the cases to get done. >> before i go i know that supervisor mar wants to do a quick follow-up on a points you made. >> just mr. guy i don't envy our position given the 90 percent thousands and thousands of unregistered home sharing but on the complaint process how had had publicize people to file a complaint my understanding no information on anothers website how to file a complaint how easy it is shocking there is so few cases we know that word of mouth in the richmond district tons of violations going on how you encourage complaints if at all. >> so for those that are

watching and interested in the issue we have an e-mail and a hotline that can will be contacted on complaints and violation so the address is short-term rentals and sf sfgovtv.org or our number 4155754179 the complaint can be done anonymously and is larger question is about outreach and getting the word how port of part of that by trying to publicize and assess the penalties and given the information what is rules are and how to register the right-of-way right way wear looking at doing this additional registration drive going out into the community and trying to partner with organizations sort of common areas of interest around this issue and letting

the folks know those are straightforward maybe not everyone meets the eligibility and there in lies the problem people are doing did be loiblt but for those people to try to dispel the concerns of the aspects of rules that are not true. >> a clear gel our answer to supervisor campos answer there are not clear goals of a successful office for measurable goals for the unregistrations hosts your identifying even a clear multi lingual complaint on the websites or an educational for a moment the number per month your don't go many any different neighborhoods and communities i'm hearing complaints like crazy and people

not working how to file if your setting goals and you've been up and running for several months a clear one making sure the complaint process is clear on the websites but also in our outreach efforts to allow people to file complainants right now hundred and 7. is outrage that is so few and a lack of goal setting for the officer. >> on that point i want to be clear i wasn't handed a mandate for a percentage or something like that it is clear we want to get more folks rent-controlled units that is absolutely true and not necessarily put a specific number at this point only get the registration up and make sure that the people know there is a process to remedying and a complaints those are great suggestions and in terms of the

webbed we're looking at to enhance our housekeeping in terms of keeping the day about the number of registrations and the kind of data we've been talking about and macro that clear to file a complaint. >> i have a few more i have to say i'm kind of shocked to hear what you're saying i imagine if you're serious about enforcement that the message shouldn't be you know we like people to register and increase the number but the message should be everyone should be following the law hundred percent compliance with what the law requires i mean shouldn't that be the message if our office mr. guy. >> we want to get people to edge this is the determination of people doing that the rights way not just a matter of the

submitting the paperwork it is demon you have eligibility your committed to keeping the registration in good standing by following the proper rules of not rent out more than 90 days unhosted we want to achieve hundred percent and one hundred percent registration those go hand in hand and a core mission to make those efforts continue and make them more cable and robust. >> following up you have it ideally i know the mayor's office didn't give you that start how long to achieve that goal. >> i can't put a timeline around it i'd like to say