>> here we are at the embarcadero. we are standing at one of locations for the street artists. can you tell me about this particular location, the program? >> this location is very significant. this was the very first and only

location granted by the board of supervisors for the street artist when the program began in 1972. how does a person become a street artist? there are two major tenants. you must make the work yourself and you must sell the work yourself. a street artist, the license, then submitting the work to a committee of artists. this committee actually watches them make the work in front of them so that we can verify that it is all their own work. >> what happened during the holiday to make this an exciting location? >> this would be a magic time of year. you would probably see this place is jammed with street artists. as the no, there is a lottery held at 6 in the morning. that is how sought after the spaces are. you might get as many as 150

street artists to show up for 50 spaces. >> what other areas can a licensed street artist go to? >> they can go to the fisherman's wharf area. they can go in and around union square. we have space is now up in the castro, in fact. >> how many are there? >> we have about 420. >> are they here all year round? >> out of the 420, i know 150 to sell all year round. i mean like five-seven days a week. >> are they making their living of of this? >> this is their sole source of income for many. >> how long have you been with this program. how much has it changed? >> i have been with the program since it began 37 and a half

years ago but i have seen changes in the trend. fashion comes and goes. >> i think that you can still find plenty of titis perhaps. >> this is because the 60's is retro for a lot of people. i have seen that come back, yes. >> people still think of this city as the birth of that movement. great, thank you for talking about the background of the program. i'm excited to go shopping. >> i would like you to meet two street artists. this is linda and jeremy. >> night said to me to print them -- nice to meet you. >> can you talk to me about a variety of products that use

cell? >> we have these lovely constructed platters. we make these wonderful powder bowls. they can have a lot of color. >> york also using your license. -- you are also using your license. >> this means that i can register with the city. this makes sure that our family participated in making all of these. >> this comes by licensed artists. the person selling it is the person that made it. there is nothing better than the people that made it. >> i would like you to meet

michael johnson. he has been in the program for over 8 years. >> nice to me you. what inspired your photography? >> i am inspired everything that i see. the greatest thing about being a photographer is being able to show other people what i see. i have mostly worked in cuba and work that i shot here in san francisco. >> what is it about being a street artist that you particularly like? >> i liked it to the first day that i did it. i like talking to mentum people. talking about art or anything that comes to our minds. there is more visibility than i would see in any store front. this would cost us relatively very little.

>> i am so happy to meet you. i wish you all of the best. >> you are the wonderful artist that makes these color coding. >> nice to me to. >> i have been a street artist since 1976. >> how did you decide to be a street artist? >> i was working on union square. on lunch hours, i would be there visiting the artist. it was interesting, exciting, and i have a creative streak in me. it ranges from t-shirts, jackets, hats. what is the day of the life of a street artist? >> they have their 2536 in the morning. by the end of the day, the last people to pack the vehicle

probably get on their own at 7:30 at night. >> nice to me to condemn the -- nice to meet you. >> it was a pleasure to share this with you. i hope that the bay area will descend upon the plaza and go through these arts and crafts and by some holiday gifts. >> that would be amazing. thank you so much for the hard work that you do. >> hi. welcome to san francisco. stay safe and

exploring how you can stay in your home safely after an earthquake. let's look at common earthquake myths. >> we are here at the urban center on mission street in san francisco. we have 3 guest today. we have david constructional engineer and bill harvey. i want to talk about urban myths. what do you think about earthquakes, can you tell if they are coming in advance? >> he's sleeping during those earthquakes? >> have you noticed him take any special? >> no. he sleeps right through them. there is no truth that i'm aware of with harvey that dogs are aware of an impending earthquake. >> you hear the myth all the

time. suppose the dog helps you get up, is it going to help you do something >> i hear they are aware of small vibrations. but yes, i read extensively that dogs cannot realize earthquakes. >> today is a spectacular day in san francisco and sometimes people would say this is earthquake weather. is this earthquake weather? >> no. not that i have heard of. no such thing. >> there is no such thing. >> we are talking about the weather in a daily or weekly cycle. there is no relationship. i have heard it's hot or cold weather or rain. i'm not sure which is the myth. >> how about time of day?

>> yes. it happens when it's least convenient. when it happens people say we were lucky and when they don't. it's terrible timing. it's never a good time for an earthquake. >> but we are going to have one. >> how about the ground swallowing people into the ground? >> like the earth that collapsed? it's not like the tv shows. >> the earth does move and it bumps up and you get a ground fracture but it's not something that opens up and sucks you up into haddes.

>> it's not going anywhere. we are going to have a lot of damage, but this myth that california is going to the ocean is not real. >> southern california is moving north. it's coming up from the south to the north. >> you would have to invest the million year cycle, not weeks or years. maybe millions of years from now, part of los angeles will be in the bay area. >> for better or worse. >> yes. >> this is a tough question. >> those other ones weren't tough. >> this is a really easy challenge. are the smaller ones less stress? >> yes. the amount released in small earthquakes is that they are so small in you need many

of those. >> i think would you probably have to have maybe hundreds of magnitude earthquakes of 4.7. >> so small earthquakes are not making our lives better in the future? >> not anyway that you can count on. >> i have heard that buildings in san francisco are on rollers and isolated? >> it's not true. it's a conventional foundation like almost all the circumstances buildings in san francisco. >> the trans-america was built way before. it's a pretty conventional foundation design. >> i have heard about this thing called the triangle of life and up you are supposed to

go to the edge of your bed to save yourself. is there anything of value to that ? >> yes, if you are in your room. you should drop, cover and hold onto something. if you are in school, same thing, kitchen same thing. if you happen to be in your bed, and you rollover your bed, it's not a bad place to be. >> the reality is when we have a major earthquake the ground shaking so pronounced that you are not going to be able to get up and go anywhere. you are pretty much staying where you are when that earthquake hits. you are not going to be able to stand up and run with gravity. >> you want to get under the door frame but you are not moving to great distances. >> where can i buy a richter scale? >> mr. richter is selling it.

we are going to put a plug in for cold hardware. they are not available. it's a rather complex. >> in fact we don't even use the richter scale anymore. we use a moment magnitude. the richter scale was early technology. >> probably a myth that i hear most often is my building is just fine in the loma prieta earthquake so everything is fine. is that true ? >> loma prieta was different. the ground acceleration here was quite moderate and the duration was moderate. so anyone that believes they survived a big earthquake and their building has been tested is sadly mistaken. >> we are planning for the

bigger earthquake closer to san francisco and a fault totally independent. >> much stronger than the loma prieta earthquake. >> so people who were here in '89 they should say 3 times as strong and twice as long and that will give them more of an occasion of the earthquake we would have. 10 percent isn't really the threshold of damage. when you triple it you cross that line. it's much more damage in earthquake. >> i want to thank you, harvey, thanks pat for as a society we've basically

failed big portion of our population if you think about the basics of food, shelter safety a lot of people don't have any of those i'm mr. cookie can't speak for all the things but i know say, i have ideas how we can address the food issue. >> open the door and walk through that don't just stand looking out. >> as they grew up in in a how would that had access to good food and our parent cooked this is how you feed yours this is not happening in our country this is a huge pleasure i'm david one of the co-founder so about four year ago we worked with the serviced and got to know the kid one of the things

we figured out was that they didn't know how to cook. >> i heard about the cooking school through the larkin academy a. >> their noting no way to feed themselves so they're eating a lot of fast food and i usually eat whatever safeway is near my home a lot of hot food i was excited that i was eating lunch enough instead of what and eat. >> as i was inviting them over teaching them basic ways to fix good food they were so existed. >> particle learning the skills and the food they were really go it it turned into the is charity foundation i ran into my friend we were talking about this this

do you want to run this charity foundations and she said, yes. >> i'm a co-found and executive director for the cooking project our best classes participation for 10 students are monday they're really fun their chief driven classes we have a different guest around the city they're our stand alone cola's we had a series or series still city of attorney's office style of classes our final are night life diners. >> santa barbara shall comes in and helps us show us things and this is one the owners they help us to socialize and i've been here about a year. >> we want to be sure to serve

as many as we can. >> the san francisco cooking school is an amazing amazing partner. >> it is doing that in that space really elevates the space for the kids special for the chief that make it easy for them to come and it really makes the experience pretty special. >> i'm sutro sue set i'm a chief 2, 3, 4 san francisco. >> that's what those classes afford me the opportunity it breakdown the barriers and is this is not scary this is our choice about you many times this is a feel good what it is that you give them is an opportunity you have to make it seem like it's there for them for the taking show them it is their and they can do that. >> hi, i'm antonio the chief

in san francisco. >> the majority of kids at that age in order to get them into food they need to see something simple and the evidence will show and easy to produce i want to make sure that people can do it with a bowl and spoon and burner and one pan. >> i like is the receipts that are simple and not feel like it's a burden to make foods the cohesives show something eased. >> i go for vera toilet so someone can't do it or its way out of their range we only use 6 ingredients i can afford 6 ingredient what good is showing you them something they can't use but the

sovereignties what are you going to do more me you're not successful. >> we made a vegetable stir-fry indicators he'd ginger and onion that is really affordable how to balance it was easy to make the food we present i loved it if i having had access to a kitchen i'd cook more. >> some of us have never had a kitchen not taught how to cookie wasn't taught how to cook. >> i have a great appreciation for programs that teach kids food and cooking it is one of the healthiest positive things you can communicate to people that are very young. >> the more programs like the cooking project in general that

can have a positive impact how our kids eat is really, really important i believe that everybody should venting to utilize the kitchen and meet other kids their age to identify they're not alone and their ways in which to pick yours up and move forward that. >> it is really important to me the opportunity exists and so i do everything in my power to keep it that. >> we'll have our new headquarters in the heart of the tenderloin at taylor and kushlg at the end of this summer 2014 we're really excited. >> a lot of the of the conditions in san francisco they have in the rest of the country so our goal to 257bd or expand out of the san francisco in los

angeles and then after that who know. >> we'd never want to tell people want to do or eat only provide the skills and the tools in case that's something people are 2rrd in doing. >> you can't buy a box of psyche you have to put them in the right vein and direction with the right kids with a right place address time those kids don't have this you have to instill they can do it they're good enough now to finding out figure out and find the future for

>> good afternoon and welcome to the san francisco board of supervisors meeting of every second 2016. mdm. clerk, please call the local >> supervisor avalos, present president breed hur present campos, present. cohen, present. farrell, present. kim , not present mar, present., present., present. tang, present. wiener, present.

, present. and president you have a quorum >> thank you. please join us in the pledge of allegiance. >>[pleage of allegiance] >> all right madam clerk are there any communications? >> none to report today >> can you please read the consent agenda >> items one through 12 comprise the consent agenda. these items are considered routine the member object item may be removed and considered separately. >> see no names on the roster item clerk please call parole >> supervisor mark. >> cameras were to pull item 11? >> okay on the remaining items excluding item number 11 madam

clerk please call the roll >> supervisor mar aye, peskin aye, supervisor tank aye supervisor wiener aye yee aye, avalos, aye, breed, aye, campos, aye. cohen, aye. farrell, aye. kim aye. there are 11 aye >> these are finally passed on the first reading and adopted unanimously >>[gavel] betake please read item number 11. >> item 1111 is urging to establishing a local match commitment to the national housing trust fund. to further support the national housing trust fund with expanded sources of revenue. >> supervisor mar >> i'm urging you to support this resolution that would help us fund and increase funding and preservation of this

housing for low income housing. including homeless people and will also increase homelessness for these very vulnerable households. i want to thank the community housing partnership international coalition is working to match all national housing self funding awarded to the projects in our community. really important to urge our senators and representatives to further support, not only national level support for the national housing trust fund, but also expanded at the local level at as well. as many of you know afford housing in our city is crucial. maybe the most crucial issue that we are addressing in order to ensure all residents can be housed. the federal government has sincerely cut back on its funding for affordable housing and the federal response to homelessness need to include serious recommitment to funding affordable housing. for example, in san francisco our area median income last year for single person was $71,000

for year according to the mayor's office of housing however many of our residents and families are considered by federal definition extremely low income or very low income. that's a household that makes 30% or less of the area median income. iolani household for example in san francisco makes $23,000 or less. a very low income household makes 50% of the area median income or less. these households making equal to or less than $36,000 a year and guess the fair market rent for a two-bedroom apartment in san francisco is about $2000 per month walks in the low income renter households can only afford to pay about $720 per month. so, this is really helps the national housing trust fund is a permanent federal program with dedicated sources of funding not subject to annual appropriations and this resolution puts us on the record in support, but also a

commitment to local matching funds for this. i strongly urge your support. thank you to paul gordon, james tracy, and the community housing partnership and the coalition is pushing for the good i urge your support. t >> thank you. can we take this item, same house can we take that without objection? without objection it's adopted unanimously >>[gavel] >> can you call items 13 and 14 >> item 13 an ordinance to prove the requirements for the project delivery agreement for oryx developed for the design and construction proposed improvement to future city-owned real estate at 555 shelby st. 1975 and 450 told st. to great new facilities for the relocation of the cities central fleet maintenance shop from 1800 gerald st. the total anticipated project of 50 m $5 million in san francisco public utilities commission wastewater enterprise fund and accepting the project from the contacting requirement by waiving certain sections of the minute a chapter 6 and approving of the

project architect in the general contractor without competitive bidding. item 14, and ordinance to appropriate a $62.2 million transfer from the public utilities commission wastewater enterprise fund to the city administrator to implement central shops relocation project in fiscal year 2050-16, 2016-2017 and placing $.5 million on budget and financing committee reserve >> thank you. supervisor cohen >> thank you. this is an important item to me and not just to me personally but also to the bayview community because it said key component on the critical path for the rebuild of the wastewater treatment plant. as many of you know, a percent of our city waste is processed at this particular facility. the facility is currently operating based on 1950s technology, and

has having an adverse effect on the neighborhood every day. particularly, with terrible odors and other environmental injustices that are occurring on a daily basis here. the bayview community has been waiting for approximately 20 years for a new facility to be built. while i don't typically like cold source contacted many of you have voiced her concerns about this in the previous budget committee meeting, and i actually join you in your concerns about sole-source contract, i want to ask that you weigh and consider that we do need to ensure the community does not face any more delays in receiving the much-needed upgrade to this plant,, and i'm asking you to consider, make a special consideration, that, this be a special priority and

we move forward to get the new location percent. would allow the facility to stay in the bayview hunters point community, which is a better option for the one previously considered, which would have moved the facility to brisbane california. additionally, going out to bid would delay the project a minimum of three years and the cost ratepayers of $3 million a month as a result of the escalation. so, all other requirements and obligations are being met. obligations for the contractors that would still be in place, including local hire and our own cities goals. the only exception being asked for today is the sole source. this project is long overdue and colleagues, i do hope you will join me today in supporting this item. thank you. >> thank you supervisor cohen. supervisor peskin >> thank you. i have a number of questions for puc staff if they are here >> we have the director ilan

crowley. mr. kelly we please come for to answer questions? >> thank you mdm. pres. first of all i want to say is a member who worked with then district representative supervisor sophie maxwell, i've been committed to having our sewage treatment plant reach the dawn of the 21st-century for 15 of those 20 years. what is inexplicable to me is that given the long history that all of a sudden this has become a game of hurry up where i think everybody, as you said should be and we are troubled by the sole-source nature. the fact that chapter 29 of the administrative code is not being applied, the fiscal feasibility section of the code, i think is equally troubling. quite frankly, on behalf of the ratepayers, i have concerns that the qc is

paying twice for a piece of property that was arguably paid for by the ratepayers through their sewage charges. so, either series of concerted honestly, we want to see this project move forward, but i like to ask mr. kelly, sorry, sorry-mr. toad, first of all, do you own does the puc own or central shop in possession of all the property that it needs these projects, central relocation and obviously you would have all the land you need for the sewage treatment plant can do have all the land we would need for central shops? can we take that without objection? without objection to make sure i understand the question, >> sorry mr. kelly could you identify yourself, please >> hi lynn valley general manager of the san francisco public utilities commission. to

answer your question, the actual property that the shop presently is occupying was bought by wastewater bonds, but when the puc, or when wastewater was transferred to the puc, that acid was not transferred to the puc. it is still was under the dpw or city administrator. that was a decision that we got from the city attorney's office. the second thing is that we realize that site will be the ideal spot for our digesters. so, we look at other pieces of property to put our digesters, but we wanted our digesters can be furthest away from the community, because as of right now, the digesters are right adjacent to the community and these are floating tops digesters that release gas. so, we've been having emergency contacts to repair that. so,

it's really in the best interest of the puc and the community to move the digesters. as far as the location is concerned, we previously passed the resolution to allow us to acquire the property amount which is in a nearby location and also assume a lease. that will be the site in which we will build the new facility for the center shop facility at that location. so, for us, it's a race against time. we would like to build those facilities and take possession of a site so that we can move quickly to rebuild the digesters that the community has been desperately needing. >> mdm. pres. if you would indulge the supervisor for a few more questions. >> sure supervisor peskin.

>> wasn't central shops going to move to spain recently? with this of all been happening in some orderly fashion? but i don't understand here is how all of the sudden 15-20 years later there's this emergency call this process when this has been a subject of planning for the better part of two decades. how can it all of the sudden be so pressing, and i think the answer is, for some reason, the puc abandoned the idea of relocating central shops to the property that mr. updike was negotiated for him brisbane. i don't understand that but i think from what i can drive, which led to this sole-source contract, chapter 29 and all the rest of it. >> so, again one of the i can go back as part of the hetch hetchy ballot measure, it was

contemplated at the time to include the wastewater portion but at that time they felt that wouldn't be the appropriate vehicle, so that's where we actually dropped answer to do the water system improvement program. since proposition e asked that we look at we need to focus on the wastewater site. so, we had this wastewater or biosolids has forced with the community because at that time the community felt if you're not quick to fix it, move it. so we've been looking at what the cost would be and how would you build with moving the facility. we finally got the community to understand that if we were to rebuild it, it would be $2 million in the community and we will move the digesters and come up with a latest technology. in doing that, we then realized that where is the best place to put the digesters. that, we identified the center shop property is a

possibility because, under ceqa, you can predetermine. you have to come up with some alternatives. that was the preferred alternative. so, we were looking scouring the whole area to look at what property we can purchase. there was another piece of property, and i can have john talk about it, that we were actually placing a bid in and we got outdated. so we started looking around for a property and the one in brisbane became available. but that had some challenges because that had contaminated soil. so, it became really a project that actually was going to be delayed and the puc we started getting nervous. also, it was some question by the mayor's office and board of supervisors to move our facility in brisbane. the

police and the fire department was concerned because of the deadhead time of going to brisbane and back was another problem. then, all of a sudden, this land became available. it became on the market and that's when we jumped in rudely moved quickly to get this piece is a property and piece them together to actually solve the problem. so, that's why we were moving quickly. the other thing i want to mention is that our project is really-this is a critical part of the project now because we have been moving as quickly as possible since we've identified the source system program and identify the alternative. that is actually costing us $3 million a month in escalation if we don't move quickly. so, that is white when we talk about we need more studies, it's costing our ratepayers a lot of money. so, i do feel the current location is probably the best location because it keeps all of those

jobs and all the facility in that area.. that is why it's urgent that we move as quickly as possible. >> then, you indicated mr. kelly, that the central shops purchase was originally purchased with sewer bonds. i assume that those bonds were repaid with sewer fees. is that correct >> i believe so. >> so, if that is the case how is it that a non-enterprise agency is invested with this property that is really been paid for by the rate payers and not by the taxpayers? >> i would defer to the city attorney actually on that finding because it was part of their finding. but, i would say that the delay of this actually would cost the ratepayers more

money because, if you look at the price of the property, which is $11 million, and if we were to stall and wait for months, i just lost $12 million in escalation. so, that's why, for me, it's so important to move this project i had and if there's accounting issue we can deal on the backside i would rather deal with that on the backside. >> well let me ask you this. how long ago did this site with central shops become the preferred alternative? >> the location of the center shops it became about how long ago? the actual location of the digesters at central shops? not the property? i think about two years, when we went through a process to look at

what the preferred location of the digesters, which would be by center shops. >> colleagues, it seems to me two years advance notice, i just personally have deep concerns about waving our competitive bid requirements. i have deep concerns about-and i hear general manager kelly's argument with regard to even if were charging the ratepayers twice, it's justified because of cost escalation, but i'm going to have a lot of trouble voting for this. i always able to get this project done. i am happy and this is not, obviously, my area of expertise to try to make constructive suggestions. i think at 5.3 acres central shops could possibly be as other cities have shown, much more efficient size-wise. perhaps there are ways to keep central to move to

the galvez site. but, i just can't justify waiving competitive bid in this instance. i am speaking for one supervisor. i do have one question i asked initially and maybe mr. updike is best suited to answer it and that is whether or not the city now has site control of all of the properties that it needs on both sides of the steel? >> john updike dir. of properties. supervisor, yes. since the approval to pursue the two acquisitions in the one most recent in december we close the escrow for 555 selby and of possession of that site as a tenant. that tendency will be terminating that's printed 1975 galvez purchase and sale agreement is fully executed entering escrow. they're doing an exchange that will be in an escrow through the end of the month end close and then the

lease for 450: has been fully executed. we position of that site and first mates rental payment. >> thank you, mr. updike. >> supervisor spot spats peskin is that it? >> yes thank you >> supervisor avalos >> thank you madame president can i do question for the qc as well. that is how this contractor was selected for this sole-source contract. like, what i can usually we put out this to bed and i want there to be delays but i also don't want to cut corners. i'm wondering how this contractor was selected to get the munificence of a sole-source contract? >> supervisor avalos, john updike. so, we briefly review the timeline with respect to this current assemblage of three properties. the timing for when we went out to find a developer that could execute

the project. so, in july we had finished the luminary project assessment and deliver that to planning. it actually included the selby and galvez property the contemplated a different beast site than we actually one chose. those negotiations failed to produce a lease at a good price. as of july we thought we had a sense of the project. we were just beginning design. less than 20% design. at that point, given the mandate to move this project along at a very swift pace, we look at alternative means of delivering the project and we had a broker team engaged. who assisted us in getting out in the marketplace and seeking someone who, their outlook, had the bandwidth to be able to handle the project in a very hot market. take yourself back to july. there clearly was the peak of our market. things

decelerated over right now but in july everyone was buying for project. then, for a fairly unique parts. on two different sites to move it for. and the ability to understand the city's walls and regulations and follow the public works code to my and so in doing so, the broker team put us in touch with the current group in front of you now, or ask development and we began discussing with them this concept of a project with no promises, whether that would be delivery of a project to them from a full disclosure. this would be subject to the board's approval because this would be at total variance to our normal delivery of a public works project. engage them to begin to look at pricing and schedule to confirm our assumptions that this was a more efficient delivery of the

project on behalf of the puc and that led us to this point today. we do not get ceqa clearance until october 28. so we are moving as swiftly as we can as we get each milestone required to take that next step. be difficult to enter into a design project until we have ceqa nail down. so you begin to see how those series of maoist owns were compressed to get us to today. >> who were the broker? >> cushman wakefield. >> so the brokers >> because they have the knowledge of the development community, they're keyed indirectly with him. we asked them to go out into the marketplace and see had who have the availability. they made some suggestions to us and those suggested >> how quickly did the brokers by christian wakefield are the ones who give ideas for the city on who to go into contact with?

>> this is unique. there's no question about it. this is not the preferred one normal path of delivering a public project. so, i don't know i can say this is what we always do because this is not we normally do. but, who would return to who has the only standing in the development community and was busy on certain projects and who is not endless skill sets that we have have identified and who doesn't, the brokers community is a natural party to turn to. >> right. i just want to figure out, like what process in consideration did the puc or real estate go through before the broker stepped in and said, this is a good thing to do, rather than go through the typical process. because, you mentioned that everyone was maxed out. other contractors have expertise were maxed out

but how did you assess that? what process did the city go through for that? >> quite frankly of the top 50 developers in the bay area visually only about six that have the capacity to pull off this price. we know those six. we did make contact both before our decision to move forward with this particular team was presented in after to cross check that the agreement we had negotiated and particularly the development fee, was reasonable or better than reasonable as the client, to cross check that with those who do mixed-use or industrial projects. the majority of the large bay area firms, either specialize in residential or office. there are very few who do this kind of a project delivery. furthermore, with respect to the general contractor, we

obviously with our colleagues at the department of public works and puc are well aware of those who have the capacity to block a fairly large project of this nature. were very comfortable with the selection who has done several projects for the city very successfully in the past and demonstrated commitment as well. can we take that without objection? without objection so, what happened with particular context therefore the broker stepped in and suggested- >> brokers had that discussion. i was not engaged directly in that discussion. we had a discussion with this particular team to see if indeed there was a fix their. and took that for. we did not identify in the marketplace anyone else who had this set of skills and availability that this team presented. >> bus we are here today with a sole-source request. that was verified when we checked back

into the marketplace after the holidays once we knew the specific physical metrics of this transaction.. it got the same response. in terms of availability or desire to work on this kind of a project on behalf of the city. those who had that capacity did not have the interest. >> thank you. colleagues, this is typically what we face in terms of false choices or over and over again, either you approve a sole-source contract that didn't go through the competitive bid process, that could potentially give us some cost savings on what the cost of the project is or delaying and costing more money. i don't necessarily think that we have to accept such a false choice. i will be voting against the

sole-source contract. >> thank you supervisor avalos good supervisor campos >> thank you. if i made to the chair i would ask our president and legislative analysts mr. rose, i know you and your team reviewed this transaction. from what supervisor peskin asked our general manager, it seems like, maybe i misunderstood, they sort of started focusing on this property released saw this property as a possible option about two years ago. i'm trying to understand why they have not been able to do a competitive bid good i'm wondering what your review of the facts. i mean, what is your sense why there's no competitive bid here? >> budget analyst tony rose. supervisor campos, members of

the board, we specifically asked that question of supervisor peskin has brought up in on page 24 of our report if i can quote, the proposed ordinance and that his file 15-1226 the competitive bidding were promised in the city's administrative code approved a selection of oryx developer llc and architecture and is seen as project architect as gen. con. the ordinance states due to time constraints coupled with the current extraordinarily competitive real estate market for industrial lands, the director of property in formally approach entities capable of executing the posed project and identified one team reasonably available and being capable of carrying out the proposed project within the time frame required and in the budget developed. this was one

of the reasons, supervisor campos, we need approval of this legislation is a policy matter because, while it is true that a delay of the project can result in escalation cost, that can be said for any major city project. so, therefore, our thinking was that you could say dish not be competitive bidding for any major project because there could be a delay in the competitive bidding and therefore resulting in increasing escalation cost. >> thank you. did either couple more points but i wanted the general manager to add his two cents. >>-kelly general manager of the beef and public utility commission. i want to make sure it's clear the site at which we identified to put the digesters that was two years ago. the property that we've identified, we've identified six months ago. so, i want to make sure

it's clear that six months ago and it's not like two years we had two years to plan for the site. that site became available six months ago when we were still working on the brisbane and that's why we jumped on it because i'm a right now we are being delayed the other thing is, for me, it's not all about the money at the puc. we have environmental justice policy and i feel we owe the people in the community to really deal with her treatment plant and the orders that impact the people in the community. >> if i may, given it was xmas ago i might ask mr. updike, why couldn't you do a competitive bid six months ago when he first became aware of this? >> john updike director a real spirit to answer that question, you have to go back to with a sequence of delivery project is. while we had six months ago

began the discussions for acquisition of two sites and leasing one another but again do not have board authority secured until the summer to actually affect those transactions. parallel to that, we had to do some level of initial design for the project and secure some level of ceqa approval for the project before we could legitimately engage in a bidding process for the project. so, that, as i mentioned, was not concluded until october 28 when the ceqa determination was provided. at that point, the design was optimistically characterized at 15%. we did engage in the department of public works to assist us. they provided the initial design. so we began on a traditional path but recognized that we were going to run out of runway to meet the schedule provided to us if

we continue down that path. >> how long would it take for you to do a competitive bid process? >> so, first of all, we recommended that you do a design build because you can start to construction as soon as possible and in doing that, you can sign a construction contract when the ceqa is done. to actually do a traditional, we would have to hire a designer and then once the designed we would have to hire a contractor. that could be maybe eight months or nine months until we get to this point. so, we felt we wanted to move as quickly as possible, and that is assuming everything goes accordingly to schedule but when you go out with-you know you may have a addendum sent questions. so it could take longer. we felt that this method of design build is the

fastest way especially getting the contractor on board because i'm a as the designer is designing, they can start construction on the foundation work and all the stuff while they identify the finishes and stuff required for the building so we can get this project going as soon as possible. >> if i make a final point i want to ask question. mr. updike, thank you. mr. updike, how many times has your department wave the competitive bid requirements in the last year? >> so, supervisor, john updike director of real estate. this is a waiver under chapter 6 is the real statement the woman

has limited authority in chapter 6. authority is really white safety systems, curtis circulation, elevators things of that nature. in that capacity, we have waived competitive bidding on very rare but emergency exigent circumstances. the other waivers under chapter 6, more akin to this project would have been executed through the department of public works to the board of supervisors >> if i may, i want to just ask the budget and legislative analyst, not asked but to point, i think it would be nice to know how often competitive bidding is being waived either by the department of real estate or to the department of public realistic it so be submitting a motion asking the budget website of analyst to look at that issue. it appears to me that this has become a more common occurrence by the department of real estate and i think getting to the facts around that is really important. i have to say, i

came in here notwithstanding the fact that i have consistently raised the issue of competitive bidding am glad to see other people interested in it, i came in your thinking i was going to support this because i know the importance of this project. i actually feel bad for the residence that your bad for the puc as well to the extent that i feel like this could have and should have handled that handled better. what really bothered me is the way in which mr. update, you have talked about how you approach this. the whole point of competitive bidding is to get away from a scenario where there's two close a relationship between an industry and government, and the idea that you automatically when you look at project no six developers and you know and make a decision as to whether

ability to do a project that bothers me because that's how contract are supposed to work. the reason why you have a formal process so that, as a government agency, you don't make assumptions about who is able or not able to make bid for a project. quite likely, it's because of those assumptions are being made on a number of cases that a lot of companies are left out of these processes. i don't think that subcontracting should work. i don't think it should be based on your understanding of where the market is and the explanation given to the budget and legislative analyst to me, is buried problematic. if the current extraordinarily competitive real estate market for industrial land. what does that mean? according to? whose judgment? so, i really feel given the number of times

this department has come to us with something unusual and out of the ordinary, that we need to step back and beyond this transaction, really look back and see what's going on here. it really bothers me. it really troubles me. especially when we're seeing questions about contracting and whatnot. this is the time that we want to have as much transparency and when we follow the rules, not because they're convenient, not because they are-it's easy but because they are there. so, i really, the more i hear about it in the more for mike here the department of real estate, i'm, okay, i thought i was going to support it but i can't support it right now. it's too bad because i think that the work needs to be done and i would hope whatever happens,

that going forward, that we don't take these shortcuts is the shortcuts end up actually costing more time and in the end they actually hurt the people you're trying to help. >> thank you. supervisor kim >> i have a couple follow-up question. supervisor peskin asked about the appropriate needs of the source of funds between the ratepayers fund versus the general fund. being that we are actually rehabilitating a site that would be used for general fund purposes. the were using ratepayer funds to use them for the purposes of the puc to rebuild on that site. so, if you could clarify the response to that? >> well, hyland kelly general manager of the puc. i can just say that there has been situations where we do and

eminent domain >> is that what we are doing in this case? it is hard for government to do eminent domain. but the same principles apply that they are in a location and normally we go to a process of relocating through eminent domain and actually of like facility. so, that is something that we are providing for several shops. right now, there we are doing what asking them to relocate to a location and so we are actually paying for them to relocate like we would do if it was a business, that they are occupying the lands. that is from the city attorney owned by central shops. >> so, if it was a different business was a city department or city public function, we would have a lease with this entity on the pc site? >> actually, you're talking

about the existing site or the new site? >> what i'm saying is that let's say it wasn't a city department would say it wasn't central shops but we were listening to a private business and we had to move them in the midst of their lease and of course we would pay to move them and potentially even negotiate paying for their tenant group and to the other site was appropriate. in this case, was there a lease that central shops had with the puc on the site? >> well, it was determined that central shops actually owned the property. >> that was really confusing. it was a lot of >> i lost that battle. >> i was finally determined. this is the jurisdictional transfer in exchange for wooing to a different site in purchasing the land and using problem. okay. then, my second

question. i'm trying to find the page i looked at before. before you mention look at all the companies in the bay area that can do this work. if i were a member correctly, oryx is a company that's based in nevada. is that correct? >> john updike director of real estate supervisor. the show llc for the specifically this project, which is typical in the real estate industry to address liability concerns was a nevada corporation, but these are individuals who are in san francisco, working in san francisco, delivering san

francisco project. there simply made a business decision to incorporate this particular llc out of nevada. they are here, if you like to address the question to them but i do want to speak for the business decision on their behalf if you would like >> the company is open about the fact that it's up a shell company in another state to flout some of our existing local laws? is a business decision? i mean that's like a buddy set up a shell in another state because they want to avoid either taxes or regulations that they don't like in the state of california. the city and county of san francisco. >> my name is juan carlos wallace with the works. we are at san francisco company. we were formed in san francisco two years ago. as mr. updike has mentioned, it's a common practice performed entity specific to project in real estate and many of them are formed in delaware. many of them are formed in nevada and other states. we had pay taxes in san francisco and make it a little bit of background about ourselves because sometimes i feel that developers are this unknown entity in the backroom. i have lived in san francisco for 20 years. i formed this company two years ago my

partner john-in the audience took it he lives in san francisco for 20 years. we created a team with many years of background in real estate are so good we got back on development in investing in san francisco for many years. that is-the team was creative i care deeply about our community and i actually have reason to believe that we should be putting a lot of attention to the bayview community that is being affected by this. i personally think it's a very important decision. in addition, the company itself from although it's a separate llc, is employing people in the bay area. i have over a dozen projects in san francisco many of which you know. several of them done for the span of san francisco as a city entity we have three projects in san francisco. probably about a quarter of 1 billions of dollars in value. the architect were

employing has a number of projects in san francisco. so, i don't want to be lost that we are san francisco company and we are employing people both internally within oryx and with our team members in san francisco proper. >> could you explain why we list you as a nevada company? >> the llc that was formed is in in nevada llc >> why is that? >> income tax purposes is a pass-through llc but we pay, any incomes that comes from the llc would come to me as a person. i reside in san francisco and paid san francisco taxi. my portion of that elsie which is 50% would pass-through to me >> why would you need to set up a llc in nevada if you're paying all your taxes in san francisco? i'm sorry i'm not a business owner. excuse my- >> i may have to consult my tax accountant

>> of you nice on a our tax legislation was used up your llc in nevada? >> is primarily for federal tax purposes. >> so you're dating federal taxes not our local >> my name is john i'm also a partner in oryx and the reason for doing a nevada llc versus a california there really is it's our additional tax benefits for nevada versus california. whatsoever because a pass-through entity was to bring our taxes in california. it would only be nevada has very slightly and i can actually enumerate them for the better liability protection than a california entity would. it's actually insignificant and would have to go back to attorney as to why they chose nevada versus california. >> okay. so, mr. wallace,, i appreciate-your main very

active here in san francisco and even politics as i understand. >> welcome i'm involved in local politics yes. you're involved in several different organizations and groups here in the city, to >> correct >> you take position on a number of different issues? my final question is for actually back to the puc or actually not sure who this question is for. this actually came up in my meeting yesterday about the headways or, between brisbane and the bayview. in my experience brisbane is not that much further from san francisco. so, if you could talk a little bit about why this was such an important factor in determining that the central shop at debate in the bayview versus brisbane, and why that matters? if we are fixing buses and trucks what is

the urgency and the additional 20 min. and may take? is our bringing muni buses in and route them right back out onto the street. there are probably in for fairly major maintenance repairs. it's not the expectation that i go straight back out onto a route to say 20 min. what was the reason behind that? >> several reasons. first of all, to have a city central shop that is core to the vehicles that operate in the city, emergency vehicles, that is currently residing in san francisco & i were going to brisbane that is one issue. the second issue is when you look at time that it takes to actually bring a fire truck that needs to be repaired and bring it all the way to brisbane, and then when it's. hugo awfully to brisbane and bring it back, when it was

right off the freeway that you have access to get your facilities, also central shops has a gas where you can fuel your vehicle as were. have multiple purposes. which led to in any way has multiple purposes. so, the other factor i would say, the brisbane site has contaminated soil and actually, that option is actually will take longer, a lot longer, to resolve. that's why, when we found the property that is adjacent to the current property, we felt that the with the union issues because the unions were also concerns about taking their vehicles to brisbane and not right by a freeway that has a fueling facility that you can use for all the city vehicles. so that was some of the reasons why this site became a more appealing site for everyone involved.

we say that soil is contaminated, with a consideration of the cost to clean up soil before we moved the central shops over there? >> john updike. when you're talking about the contamination of the soil you're referencing the brisbane >> brisbane, yes >> the issue is this a mitigation plan that is still not yet approved by the appropriate state revelatory authority. that delay was causing increasing concern by the city as a potential tenant of the property. to this day, i don't believe that is still yet resolved. we do have a mitigation plan. the cost of the litigation were included in a pro forma. so we knew going in what it would likely cost two of the soils contamination mitigated and put a vapor

extraction system in as well. provide adequate protection to our employees. so, we certainly went through that batting prospect we could not get to a point where the regulatory authority said okay, you may go forward with that project. so, we would installed as prospective tenants. we had to wait for that and could not wait any longer. i also want to mention one other concern. it is the limited access to the brisbane site. it was either be a bayshore or the 101 so, in a large size seismic event that was a concern that we would not have a route in and out of there to get back to the city, whereas the selected site is a little more centralized. granted it still southeast but still has multiple access routes and we felt in her emergency situation the better opportunity to serve our feet. >> this is my final question mr. updike. really, i think we

only ask these questions again because this is a sole source contract. again it's a compelling. out of think we would lay as much scrutiny over the selection. and a number of other things. when he said there's only six companies back into a design and build and construct, which we would like to do because of the haste and speed by which we want to fix the sewage treatment plant, just think we all agree has to be done, but said there are roughly 6 companies. so, do we have letters from the five other companies that they were unable to take on this work? so we here on the board know that this is, in fact, the case. no other company would have been able to effectively bid on this contract if we had gone out for a rfp? >> first, to clarify, my point was identified six available companies to be able to have the capacity to do this out of the largest in the bay area. so

that was of the top 50, by volume, in terms of roast revenues could we saw six that had the capacity to pull this off. no, we do not have written responses. conversations with them both before the project was scoped and brought before you and after two that the numbers was done in a confidential basis from those companies. frankly they were more open and honest with me with that proviso at their request. i'm happy to off-line have a discussion with those companies are, although one could then a figure that out. the top six would be but nonetheless, we got much more in depth information from the firms. the jiggly, relative to fee structures on the agreements. it was helpful friendly in our negotiations. >> so, you did get estimates

from the six companies and then, based on what you had seen yourself that you have made the best selection in reaching out for a sole source contract? >> yes, relative to the developer fee which is really the big variable here none the other project was asking the department of public works were waiting to carry out a traditional project. we did have that scoped. that's for the time d mr. kelly has been speaking to came from. with the traditional path. what is the time? we also asked the traditional cost than for design build project with no exceptions competitively build, and that number was approximately $40 million over the number provided to you for the delivery of this project. so there's a considerable savings. that's not the be all and all we did want to do that cross checking exercise to be sure were being competitive is many line items as possible. >> i just want to clarify again because i did think i

misunderstand either yesterday or today. it's not that there is roughly 6 companies that can do this work. there is roughly 6 companies that were available to do this work and of those six, we had reached out and asked for estimates of what the cost to the city would be? >> no. i'm suggesting we believe there were six companies with a capacity, the financial capacity to do this work. not available over the capacity and therefore that's who we reached out to. >> so, of those with the capacity to do this work, how many did you believe were available to do this work? >> none. none? this is the only one. so then i will ask my question again, is there a letter from these six companies that say they are not available to do this work? >> there is not. again, it was a confidential process. >> thank you. >> supervisor kim, is that all?

supervisor yee >> thank you mdm. pres. i wasn't going to pursue this line of questioning and i'm not so sure i see other speakers whether not they want to continue this line of questioning. so, i would like to ask supervisor peskin and supervisor campos and cohen if you want to continue this in pursuit of questioning? if not, i'll make my statements. >> the floor is yours. >> that is fine supervisor yee. >> let me say i appreciate my colleagues one of questioning. it's pretty similar to some of the questions that i propose that the budget committee in particular it would be the sole

source was disturbing to me. then, there was some discussion well it's going to cost the project i forget how much 1.5 million were something like that. $3 million every month or something. so, in listening to the arguments and in listening, there's a little bit of me wondering whether or not how far can i push and say is this really the actual case or not. but, at the end of the day, for me i'm still uneasy with the sole sourcing good as i said at the budget committee, where do we stop because every project is almost the same think it is going to cost us more if we delay the project. at least in this climate. i think what tilted the balance for me was

the issue of environmental justice and that probably was the determining factor for me to pass it out with a positive recommendation. that's why i want to talk to supervisor cohen about this. in looking at the map, it surely seems like an environmental justice issue for me. so, i'm not hearing anything from the arguments that would change me from that position. so i will be supporting this project going forward. >> thank you. supervisor peskin >> thank you mdm. pres. supervisor yee i'm glad you have a little bit of open mind on this. i mean, here is my fundamental concern the concerns actually been exacerbated during this discussion. i believe i heard, maybe mr. updike you can adjust that, rather than the city

pursuing the contractor and architect actually, it's her party on non-city party, the broker was put in that position we have a department of public works that contracts for all kinds of contracts. as a matter fact, the qc uses dpw to buildings. we have a airport that is incredible product project management since when did this municipal corporation start using real estate brokers to hire design build out. that just is-unique is an understatement. i'm also getting increasingly concerned in my seventh week in office am a after i turned all blind i stood up at this board and spoke to the fact that it was without precedent that we were authorized in our department of real estate to purchase real property without the benefit of an appraisal. that and the previous meeting on december 8 we were asked to approve the

sale of a piece of real property that had been, that this board had approved for sale at $87 million amount which the department received a offer at $91 million. yet, this board was being asked to solve for $89. i'm seeing this now in a larger context. finally, what i just heard from the gentleman, mr. wallace, who stood up is that this is a two-year-old company. since when are we doing $55 million deals with two-year-old companies? i don't know what their relationship is with cushman wakefield, but i'm interested not in hearing from them but in hearing from city staff whether it's our general manager of the qc warhead of our department of real estate, what experience that you know

this company in its two-year history has in design build projects of $55 million. through the chair to supervisor yee, i pray that if this board approves this deal that in a year or two years, we are not doing management audits, performance audits, and supplemental appropriations because were doing with a brand-new two-year-old company that somehow got a sole-source contracts three third-party real estate broker. this thing doesn't smell right to this supervisor. which one of you gentlemen would like to answer that question with regard to the experience of this new firm relative to design build contracts? >> john updike director of real estate. i'm not sure exactly what the questioning has been posed bulimic just to address the issues you raise. with respect to who we are hiring, and how we went out to the marketplace, the question of seeking a developer is not

something the department of public works would do. because the department of public works is essentially the developer for the city. so, when we are looking at a project or looking at a different model of delivering the project, that was my charge-look at figuring out how to deliver this project in the timeline and price that is not consistent with the current public works chapter 6 process. the expediter necessary is the developer entity. therefore, it is appropriate to turn to the community that knows developers and that's the brokerage community, and ask them for their expertise. that's what we pay them for. in this case, we do not pay them for that service with the understanding, through the development. when we reach out to them they help us and vice verse. we're an excellent working relationship with the development community. we felt it was appropriate to turn to them to assist us with the developer. with respect to the developers obligations, as mr. wallace noted, he and his

partners are long-standing san franciscans and a project delivery expense in san francisco four years. yes, they are two-year-old company under the current umbrella of warwick's but were hiring just like you make any other hiring decision on the totality of their experience and that's decades of experience. more importantly, the developer is the facilitator and expediter. the crucial, who is the general contractor and who is the architect. do they have the skill sets and the capacity to carry out the project. we are very pleased in that the family that we are bringing forward works as the developer, pankow as the general contractor and fme with a very unique experience that all stack up against any architectural firm, that combination we were very pleased to secure. we have been

working with the department of public works on this project from the beginning. so they are partners on this bench. just because i'm here does not mean i'm an advocate for the post. i'm simply the spokesperson for the project i would make that clear. this is simply charge we were given to deliver a project in a unique fashion. that's what i wanted. what i'm doing out of necessity. we try to do our best to ensure that the taxpayers are protected in that the development agreement is as tight and financially smart as it can possibly be. we have that confidence the development fee of 3.5% in the line items included in a guaranteed maximum price delivery that's before you now. >> i am pleased to know the development of 3.5% is a percent have less than the

bowman fee at the goodwill site another project that's neither here nor there. my specific question, which i didn't hear you are an answer to-i heard that the principles in oryx which is a two-year-old company have decades of experience but this is a question i had, which is whether oryx or as you answer the question, these individuals with her decades of experience have any demonstrated his ein bild experience of this magnitude of $55 million projects. that was the question i do not hear an answer to. >> john updike. director of real estate. supervisor, i think the question has to be asked in the context of the entire team. between the general contractor and the architect in oryx, yes, without question, they have delivered

on similar design build ventures. before the city and for others within the city. and throughout the bay area. with respect to oryx, yes, those individuals involved in oryx or the key project managers if you look at the project delivery agreement there is no ability to swap out project manager. we're really hiring individuals here to deliver this project. and the change requires consent which is our sole and absolute discretion. so were hiring that expertise of individuals of the firm should they also have as mr.-mentioned a quarter of $1 billion worth of projects now. they have a pipeline we have reviewed that similar or greater in scope than what we are proposing here. >> not to point to put a finer point on it on looking at their website, which includes a 120 unit residential product, 44 unit multiunit residential project and a 250 256 residential price. none of these are the kind of design build projects i'm talking about . can you just give me an example of one project that one

of these individuals has worked on that is a designed-build project of this or similar type typology but that's my simple question. it's a yes or no question. i realize there are other-i'm asking at least in relation to oryx? >> rather than me speaking on behalf of the firm i'd appreciate if you run the courtesy of having them answer >> so, specifically >> can you identify yourself >> my name is juan carlos-the principles of oryx. specifically in the san francisco our team has completed three different projects. $20 million historical retrofits here in san francisco. interior retrofit. $35 million project at transbay. my prior work we worked on 181 fremont. my

colleague who be the project corridor of nader's work on projects both in the city and outside of the city for pete's coffee, delivering projects of the san francisco business sense. and here in san francisco were currently welding the projects you mention which about $250 million of development projects. in addition, i think very importantly, we've expense working together with panko are general contractor. fme is an architect we've used for light industrial project. in the south bay. they work together on a number of projects within the city and outside of the city. so, i'm happy to give you this list of projects. we have two dozen here. so we have a lot of experience collectively both within oryx and with our team. so, i do feel that the city is being very well served with the expertise our team brings. i understand that maybe

the board of supervisors would have preferred to go through a competitive bid process. we would've been happy to participate in something like that as well. i think in the context of the schedule and budget the city is trying to meet, the city is also well served by entering into a phase 1 contract essentially with a firm like ours to advance the design advance the project to get it to the point where you can decide you want to move forward with phase 2 delivery of the actual construction of the product. that has been the intent of our structure negotiated structure, with the city. i will add, we have three kinds. we're working with the department of public works. the puc. then, were very much partnering with all three and the central shops is the end user. the role of the developer is enhanced in many ways by managing the different user groups in the city and by user i mean end-user as well as the money that's coming through the puc and the client at the dpw side that we are partners

hand-in-hand in managing the project day-to-day. as well as the contractor and architect. in addition delivering within a tight timeframe and two location. so we feel very comfortable delivering this. i'm happy to sit down with you separately and provide more background on us as a firm as well as our interest. i would say that yuki on two years of experience of the firm. as a firm that is true. my partners and i have been 15 years in the desert get we all have a couple decades of experience in real estate. if you were very well-equipped. if anything i think this is opportunity relatively new san francisco-based company with a lot of experience that the team provides to deliver a project that i think is important for the community. >> if you want to fair and square from the rfp bug that didn't >> thank you supervisor peskin. supervisor campos >> if i may, want to follow up on a couple points. if i may,

through the chair, to budget legislative analyst, i understand this is understand the point that supervisor yee made earlier i know when looking at a competitor process the different options that the department has. you have the option of pursuing a longer, more in-depth process, competitor process that would take a few months but there are also other options that allow you to do a competitor process that doesn't take as long. some wondering if the budget and legislative analyst can talk about that in terms of what the options are for these departments in terms of looking at that through the chair >> harvey rose budget analyst. supervisor, i think you're referring to-there is a what we

call an rfq posted request for qualifications process, and that is where you look at the firm's qualifications to perform the type of object that is needed and that rfq process as opposed to a complete extensive competitive bid process certainly is less formal. is less time-consuming and less extensive than a full competitive bid process. so, it is possible that an rfp process could've been used a couple of years ago, but i would defer to the apartment. i think you should ask that question to the department as to whether or not they consider that if that was a viable option. >> if i made to the chair in the past mr. update about that. i know you decided not to do a competitive bid request for

proposal, but one i do a request for qualification that allows you to do a competitive process not as extensive that would take less time, and if the general manager said this property was identified or came up about six months ago as a possible site, i asked one of to an rfq? b > white a request for qualifications processes available to us for a number of projects there is no form within the context of chapter 6 which is why this item is before you now. it's a deviation from chapter 6 public hiring process. we would still be back before this body with the results of that and it would have taken quite some time to develop a request for qualifications, because it would have to be a one off process specific to this site. specific to our needs. because we don't do rfq's for this type

of work. we did not see a great value and actually saw, perhaps, some risk in having if we rushed it, potential for challenges in that selection process as well. we did not have a lot of winning paths available to us to be quite frank. so, we do not see that as a very viable option because it isn't an established route for securing these types of services. so it would've required quite a bit of work by the city attorney's office and department of public works to assisted about that >> might want to expand on that as well if you'd give him the courtesy >> yes, please >> so, from my understanding when you go to an rfq basket for qualifications. but from the qualification, you don't enter into a contract. normally we do an rfq to identify who is

qualified then we go to another process to select the actual person or the entity. that's why we do typically an rfp process because you have a proposal. so, i don't know, if hardy knows, i'm trying to understand the rfq process because i know in rfq basically based on qualifications and that's how we get the pool of bidders, and then we go through an rfp process to the folks we deemed qualified. i don't know. i think that the things in chapter 6, all the tools in chapter 6 and i don't know-i haven't they been amended a couple times but i'm not understanding if there's an rfq process that you identify and you can make a selection on an rfq process. >> my understanding is that where an rfq comes in is that it may not be the ideal approach

that actually having rfp is probably the most conference of way of ascertaining that someone is providing you the best deal, but to choose between no competitor process at all and an rfq that actually the rfq provides the benefit of at least knowing that you had at least an assessment what the expertise and in the industry is. so that's the benefit. the other thing i was going to say-and i will tell you, i mean, it's kind of sad. the more we hear from the department of real estate the more questions arise. if you don't have an rfq process in place, then you should really figure out how you pursue that going forward because i would rather have you follow an imperfect process than having no process where you simply do a sole source contract. that's one thing. the second point is

it is really troubling to me that you had a company here talk about how they became a nevada company for purposes of liability. i imagine that for purposes of liability means to minimize their own liability.. so, it's a two-way street. if nevada being a nevada corporation makes it so you're protected more,, i'm not sure if an issue liability for the city it makes sense to enter into into a contract with the company that is headquartered in nevada if that means their liability is minimized. i mean that's kind of scary. i hope the city attorney, i'm sure they're looking at that. again, the more that is said, the more questions arise. i would say-i

don't know where people are, but i would hope enough questions have been raised that we reject this. let folks do a competitive bid. we can do it quickly. i don't know if it's an rfp. it is a different process. if it's a short expedited process, but i think that the point here is that we have to strike a balance between moving this forward quickly, but to do it in a way reinsurer this is done in a way that is a good deal for the city and that we are following the rules of fairness that were intended to be in place for a reason. >> thank you. supervisor cohen >> colleagues, i appreciate the spirited conversation. i think one thing we can all agree on is that the apartment of real estate has been put on notice and should be aware that they should not ever bring

anything half-baked to us and expect an approval process. every question that's been raised-not everyone the majority of the questions have been valid. this been a few that were not. specifically, not specifically but two supervisors begins question moving several shops out of san francisco to brisbane brisbane is her neighbor to our self but i did receive many authorizations and e-mails largely from labor we would be exporting a number of jobs out of the city and into another circuit as you can imagine, the concern the natural concern around that. two supervisors yee i just stop by your office as he was earlier this week were late last week just to share with you some candid conversation about my perspective. i want to be very honest with you, colleagues, i am resentful for the position that had been placed in largely from this proposal. i don't

know who to blame either real estate or the puc. i don't know but it is certainly an uncomfortable feeling to be placed here and then have colleagues looked to me and asked me what my opinion is that i would opine and give it direction it so i am asking you to support this. this is important. nonetheless, it's been 20 years. we try to build a wastewater treatment plant twice since 2002 and we've been unsuccessful. i'm extremely uncomfortable with the process that real estate has brought to us from even more comfortable going back to my constituents insane, was in on a technicality were going after delayed rebuild of this wastewater treatment plant. i understand what i'm asking you is something that may make made you feel very uncomfortable and rest assured, i'm just about positive that will never bring a half-baked idea that the puc

will not-will go over and above and beyond doing their due diligence from this moment forward. i surely appreciate supervisor peskin, your expertise in peeling back the layers is absolutely critical and i'm grateful for that voice that you bring to this conversation because i think that it will clean out our process to where it's clean and transparent. i think, in this age of government secrecy, racism, and sexism and all these different things that are circulating in our world, not just inner-city, is absolutely important we do conduct ourselves to the highest standard possible. we have-i believe the message has been sent and received it i appreciate the conversation from the-thank you very much

for your expertise as much as you could opine on this particular matter. so, i will wrap up by remarks again ask that you join me in building this wastewater treatment plant and let's move on. >> thanks. supervisor tang >> i know we spent time talking about this not only in budget committee where i could also bring up the issue about the sole source conversation along with supervisors yee as well as even prior to budget committee. i know there were a lot of questions asked about why did we arrive at the decision the way it is not in my opinion i think a couple things drive this. one really being the marketplace and really trying to secure the land is the best possible for not just what's going on in supervisor cohen's district but also what will have happened to several shops. bernie, that was crucial as well as the fact

that in the last three years, it's minor staining the puc to spend about $60 million in commendation of emergency contacts and maintenance contracts because of the deteriorating conditions of the digesters currently. then, on top of that a personal tidbits to the area. i had the pleasure just visiting those people who live across the street every single day who have to endure what is coming out of that facility. so, with that said i think that, again, supervisor cohen made it clear this is not a preference for how we would like to see things through coming through so quickly but i do think there's a very legitimate need behind this project and i can given the market conditions. so, i will stick with my position at budget committee and support this item. >> thank you. supervisor wiener >> i don't want to repeat a lot of what the last two colleagues have said. i appreciated the conversation and listen to the points made by my colleagues at any and all be supporting this item. i

think it supervisor tang articulated in supervisor cohen before, this is critically important to our southeastern neighborhood and to the people impacted by the current unacceptable situation everyday. so at the time sensitivity. i also want to say, the arguments about this being an out-of-state registered company, colleagues, if we will want to start applying that standard, then boy, were there a lot of scrutiny to do in terms of developers who are working on a variety of topics. out that if we came up with a list of developers who we've entered into agreements with on to medically larger projects than this, were not registered in the state of california, i think we would put this in context and realize that's a complete

red herring and really frankly irrelevant to the debate today. with that, i'll be supporting this item >> thank you. supervisor kim >> i just want to appreciate the comments that supervisor cohen made. i haven't anyone in this chamber does not understand the importance of the sewage treatment plant and i think that's any of our colleagues would say it's not because they don't want to see this project happen by june of 2017 or because they don't think this is important to the community at having everyone knows is incredibly important but so the question about the process that the city undertook to bring this before the board today and is very uncomfortable position because we all know that this has to get done. that it's urgent. we have about a year and five months to make this happen. i really would just say, we can have things

come this way especially when we don't for years that this was going to be in place. to say it's an emergency today, when we've known for years that this has to happen, i just think is disingenuous. finally, because i was a person that brought up the basis of the llc, the reason why i bring that up is because this is where awful, a sole source contract. it cannot go out today. i would not normally bring up the particular of the business that come before us and why certain things are the way they are good so, let's separate that from all the other major development deals the city puts together. also, second, it was a big point made about how this is a bay area company that's been in san francisco for many years. it's employees living. they're going into local hire in its llc based in another state. i would not have brought up the point was made over and over again if this was a san francisco company. it's not. if you do

make that as part of your point why we should support the sole source contract that i think it should be accurate. i think whatever the reasons are underlined the decision, which was not articulated today, then you should not use that as a basis for supporting this sole-source bit. >> thank you. seeing no other names on the roster, but please call the roll >> item 13 and 14, supervisor mar aye, peskin nay tang aye wiener aye yee aye avalos nay campos ngo nay cohen aye farrell aye kim aye there are eight aye and three ngo >> those ordinance pass on the first reading >>[gavel] >> is go to our 2:30 pm

commendations. i'd like to at this time recognize supervisor john avalos >> thank you mdm. pres. other to call up to the podium diamond dave whitaker who i am very pleased to be honoring today we also have an item on imperative agenda to declare today if every second 26 and diamond dave whitaker figured is not quite your birthday. you're going to have to wait your turn though mr. diamond dave. thank you very much. diamond dave whitaker, before us today left minnesota for san francisco in 1957 at age 19 seeking a mythical land of all my parties and free love. diamond dave whitaker is a san

francisco legend. maestro of spoken word and revolutionary rabble-rouser uses language to engage and connect. mr. whitaker has been described as beat before the work be next, get before there were hippies, punk before punk even happens. diamond dave whitaker is cast wide net in life from entering a young dylan in minnesota, what think you turned onto bound for glory, woody guthrie's book and tournament to woody guthrie which is a huge thing for bob dylan fans. to pushing boundaries with the nixon hippies in san francisco to inspiring modern punk and hip-hop musicians. he is on the common thread between many generations of alternative american culture. diamond dave whitaker has been a decades long supporter of activist movement for social justice. he is a pacifist good has always stood by