>> okay ready this it is regular meeting monday, august 22, 2016, seeing called to order at 203 televised in the small business commission and thanks to the self-doubt services i'd like to welcome

everyone to the small business commission meeting of august 22, 2016, and the start time is the small business commission. commission thanks to the services and sfgovtv staff business commission meeting. the meeting can be viewed on sfgov channel 78 or live streamed by sfgovtv.org simply go to our website meeting is limited to 3 minutes per speaker unless otherwise established by the presiding officer of the meeting. plaza spelling of the speakers name for the written record, and please deliver it to the secretary prior to sfgovtv please show our slide we have a reminder that the san francisco small business commission is the only place existing business. office of small business is your first stop when you have a question about what to do next and it is the st. joseph's of the small businesses in the county of san francisco. it is fair to say if you need

assistance start here all right. >> okay item anniversary smadz commissioner dooley commissioner ortiz-cartagena commissioner tour-sarkissian commissioner yee-riley commissioner zouzounis absent mr. president, we have quorum. >> great before we do item 2 i'd like to propose for the benefit ever everybody that is here we swap or we move item 5 to swap in front of item 3 so we can hear what everybody has to say and get along with the day all right. commissions we'll hear first item 2 and item 5 and then three and four. >> item number 2 general public comment

members of the public may address the commission of interest to the public that are within the subject matter jurisdiction of the commission except agenda items. with respect to agenda items, discretion item. >> do we have any members of the public that would like to speak during general public comment seeing none, public comment is closed. item 5 please. >> item 5 applications for replacement on the legacy business and adaptation for the legacy business for the businesses listed neighborhood health center and moby dick and the cafe and the roxie theatre and the studio and gallery and sf gallery and presenter it richard program manager of the legacy business program. >> is he here and regaining

executive director of the office of the small business commission. >> one procedural needed e note i want to read into the record all applications will be considered tonight there's the staff asks different that will be considered at a future agenda meeting. >> public comment. commissioners, i just sent richard aaron starr relay i'll start off and he'll arrive here we go. >> richard we switched items you'll start with the presentation so, yeah letting you know. >> hello commissioners how are you richard the legacy business program manager today, we have power point

presentation for sfgovtv the administrative code section 2a dot 242 b says a legacy business means a business that is nominated by a member of the board of supervisors or is mayor and the office of the small business commission denominators and meets each the following criteria criterion one the business operated in san francisco for thirty years or more with month break exceeding two years. >> business may have operated in more than one location an exemption for businesses between 20 and thirty years old in the business has a risk of displacement criterion two the business has contributed to the history and/or the identity of a particular neighborhood or

community and criterion 3 the business is committed to maintaining the future that define the business with craft and culinary or art programs in the office of the small business commission includes the registry of a legacy business today, we have 10 business businesses coming before you a located others 3166 buchanan street in district two, four b department of education locate on 2575 mission street in district 9, 4 c images conscious on tenth street, and district 6. >> four d mission neighborhood

health center address 4 0 shot street in district 9 and four e moby dick on 18 street and pier cafe in the embarcadero district 3. >> four g roxie theatre at the 716th street street in district 8 and four h the gallery located at noah street in district 8 four i sf parties on post street district 6 and four j twin peaks auto repair on district 7. >> importantly tell drive criterion one have they operated

in san francisco for thirty years with no break in operation sxooed two years and termination for all applicants and criterion two have they contributed in the identity that have a neighborhood or community determination is yes and all applicants were recommended by the historic preservation commission criterion 3 are the applicant to maintain the futures or altercation that define their businesses with extravagantly or culinary art forms the determination is yes for all tenants and staff recommendation is that the smoefks include all and the registry of the legacy businesses i have copies of all the applications in the packet and available online as well. >> and there are 10

resolutions one for each the legacy business registry. >> okay. >> great once again that was and thrill to read through all the bios and the pictures there are businesses i know well and discover a few that will encourage memo me to get out thank you for that presentation commissioner and commissioners. >> i'm honored to have moby dick in the castro so this is like an honor very cool and pier 23 that's like got to be one of the best restaurants in the city and that i'm really, really happy about this just because a cross section of tourists and locals i had friends that live

all over the city we met at the pier 23 and you know what good for us well, we're all great any other comments commissioner open up for public comment two minutes per speaker i think we have speaker cards we'll call them up. >> we do i'll read them 3 at a time first is (calling names). >> great hello, i'm kari the owner of docks for the past 8 years in the 1950s we were a bar

and a dentist bought the bar all of us at docks are part of mission neighborhood we have places for people to come in times of need and celebrations we love to help our neighbors and ready for the if you have any questions, we'll be happy to answer thems to help the firefighters and others our happy hours have benefited many local animal rescues over the past years and the cat and save a bunny and rescues sorry this is a hard topic we have a bargaining night an arts and crafts that bend the groups as well as groups and the art of san francisco docks was the second bar to be recognized as a green business by the city of san francisco we're constantly searching to save energy and

water and the previous owners sold them - we choose to sell it to me i'll continue the vision but were unfortunately my landlords have a different tradition not renewing our lease we have less than one year on the lease and planning to move receiving this in the legacy business officers will help us with the lease and help to cover some of the loss we plan to recreativity create this the important part we'll be bringing the heart of residents that is part of our staff we're honored to reserve this in san francisco thank you. >> thank you. >> just to a reminder that first going on for 30 seconds to go and don't mean to be rude but the second one that one you're

off the stage all right. thank you i'm the executive director of the rocky a resident of city the roxie theatre a fixture of the streets in the film community like the rocky in the mid - a resource by hosting san francisco premium festivals and under seen he's movies you can't see emotionally we continue to be the host of many san francisco film festivals with the san francisco international and docking festive and independent flimdz our audience didn't see spanish language and ran are an and showcase for the work while the rocky has it's ups and downs we are thriving over 42 movie goes we have a great year but as you may know san francisco has lost historic

and movie ignores we rent our facilities our place in the city not assured last year our landlords tried to double our rent we had a rate higher than the previous rate but lower than than the last that lease only has two more years we'll have discussions happening with the theatre approval the legacy business registry will greatly assist us in a be long term lease and allow us to be a cultural fixture in san francisco thank you very much. >> thank you commemoration mine a 2w40e8 company you have not visited it with no idea where it is i'm not sure you'll find it we've been in the business since 1980 i'll assume you have the details i'll

tell you what way main problem it is not rents fortunately i'm my own landlords i'm sympathetic to the people we have problems of rent if i had to may market-rate in the city i'll long be out of the city or out of business here's my business i sell in san francisco and international and nation wide i'm operating in the most expensive labor market isn't world and paying a high rate of taxed when you live in san francisco you pay property tax and payroll receipts taxed operating in this environment i'm basically up against chinese that's what it monuments to we see dock active art and copy wright problems by pricing issues it is difficult to operate a business in san francisco and face the chinese

competition my competitors are utah, vermont and virginia a friendly exert in walnut creek in austin, texas they moved to austin, texas because of the wage situation i wanted to say finally i tell my out of states friends we live by the golden gate park and park and rules prop j i'm grateful you commissioners are doing the will of the san franciscans thank you. >> next few speakers are nancy, rebecca and fernando and the fourth will be eddy

good afternoon commissioner i'm nancy and my husband and i michael and i have operated this gas station we don't feel a connection, however, we've had the honor of running our business over thirty years and our auto care a rent-controlled place for neighbors to stop by and the vufrts of city can stop for direction our sign with the twin peaks is a geography california offering maker so unique and visible it is a directional tool twin peaks location incongress is a neighborhood business makes for an oil legacy business over thirty plus years we've recognize as leaders in the business and pioneers for defining owned gas station more than a business to twin peaks is a visual landmark our booing on

the foggy nights we have we've got a film and a book called oil on the brain book clubs take pictures of our large sign we have our share of customers a large portion from the neighborhood and have remained over thirty years you people are our customers and neighbors and friends we almost lofty of lost our lease 2 would be an honor to be honored as a legacy business to continue our place in the community for decades to come thank you very much. >> thank you. >> good afternoon. i'm rebecca sawyer and here i've been throwing pots at the san francisco for more than thirty years 2w4 prop j passed our salvation our long term landlords had a new lease in mind that almost doubled our

rent over the course of the 10 year period and this was presenting us with a problem the worst problem basically, we're very successful business we have people fill up our classes between 3 minutes of online registration a three to four waiting list to get a locker a studio space but we decided to double our fees if our rent suddenly went up fortunately your landlord agreed to offset if we get a grant by the amount of grant over a 10 year period and saves the character of our business that has been very oriented at scott wagner having a wide range of artists to beginers and real great community spirit and in the castro since 1967 we moved into that space and

establishment her studio there and died and lived there until she died in 1983 a nonprofit in 1987 and since 0 strong so help with the rent will totally save us thank you very much. >> good afternoon, commissioners my name is fefrnd i'm deputy director at the health center i want to mention even though we're a nonprofit organization we understand the mruth they're going through and miss neighborhood has been providing access to medical care primary for low income latino families since second floor 67 and going to be 50 years - we

own one building and we leased two other building the building we own on shot well street is we have some murals that are date back to the 19 san jose and have one that was just a new mural that was just created around four or five years ago the height legacy is multi faceted with the roof in the 1960s civil rights 340e6789s the center was part of economic opportunity and neighborhood center as a demonstration project during the johnson administration we're combfshd by the community for the community since our director of public works is the patient of the clinic for generation after generation served as a training ground for union people and health careers and many of

them were pediatric patient and working with us our legacy is the community health and our response throughout the decades to the social needs like diabetes and obesity thank you for your consideration to this project thank you. >> my name is eddy good afternoon, commissioners and thank you very much for your time the restaurant has been serving food into one a.m. for the last 36 years san francisco is a culinary capital of the united

states of america but after 11 o'clock you can't get food now we serve in the cal hallow neighborhoods the residents royal on the communities that a small neighborhood no sign restaurant can allow that in san francisco many of us meet each other at places back east go to somebody's house but san francisco you go to a bar or restaurant and meet your friends before the evening and the reason is 2 the front poach whatever we want to do but the brazen is that front porch for a very, very long time the brazen is sxhcht and what makes that the fact our employees have been working for us they have a solid place to stay because of that the broornz

and the regular are families to the regulars that come in and everyone not to be recognized and know their name the house of hospitality was based on the good food for all the years we've been around and brazen is trying to continue that take into consideration for the line of questioning commission and attorney-client. >> next up (calling names). >> my name is deborah eddy's sister and 17 years ago i moved from new york city and i got off the plane at the sfo and asked the taxi driver to take me to

the brazen head address he said i know exactly where it is this is a famous restaurant my brother has i went through and didn't have a job my brother gave me a job for a while and then did the book keep and became part of that brazen head family that was so wonderful having a place to be and meet new people especially being so far from new york and the food is great i felt proud to recommend it to any friends i notice that was without the sign everybody knew exactly where it was and begged us not to put a sign because the place they wanted to keep private their own benefit and that didn't work two well and

have to share with many others some a great little place and cozy and keynote speaker and intimate and a great place for firsts like first anniversaries, and it will be a sin not to have it there in the future so with your help that will stay for another thirty years thanks. >> hi good afternoon dan with sf party i wasn't going to speak but everything else is i might as well jump in we're a hundreds-year-old company they sold door-to-door i see things online that i didn't know existed india head lamps and

strange stuff we flash-forward a modern company doing the outlined things like toys and parties decorations i'm a third-generation any dad from u can i my 3 obesity born here a fourth generation washington high got a lot of history and sf is where i grew up the neighborhood as evolved we moved into post street it was very much not the neighborhood now the northern tenderloin it was full of life and all the bad things now amazing who is moving in we've supported that and 17 full-time employees some have worked for me over 20 years and dedicated to the employees

provide 80 percent of medical consider and dental and take care of our people and give them three weeks vacation after 5 years when the minimum wage went up a buck and another buck it wasn't fair to the older employees he raised the minimum wage for everybody to the point it was fair we had last halloween a line outside of the door and you guys are welcome to come forward is that a double beep. >> that's the last big one and we delivered 15 thousand balloons. >> do we have any other speakers all right. any public comment on this item? seeing none, public comment is closed. commissioners comments before a motion >> sf you can rent popcorn and

happy birthday to you machines. >> for someone that didn't want to speak. >> commissioner dooley. >> it was a pleasure to read the stories of all our businesses some i know well and just makes me so happy we can help the legacy registration going and help to save what is truly san francisco and just proud of all you guys and you know good job. >> commissioners, do we have a motion. >> i'd like to motion to approve these 10 businesses for the booeb. >> second. >> second. >> commissioner for a note of technicality i need you, you to motion to approve the 10 resolutions. >> i'd like to make a motion to approve the resolution of brazen head docks clocks and image and

mission neighborhood health center and moby dick and pier 23 cafe the roxie theatre and the gallery, sf party, and twin peaks auto care for placement in the legacy businesses registry. >> second. >> all right. retaining wall or >> all in favor, say i. >> i. >> opposed? >> okay. that that motion carries 7 to zero and. >> (clapping.) >> thanks everybody. >> thank you very much and thanks for all of you for coming out today, i know that is a challenge to get here and appreciate you making it a fun time this afternoon. >> all right. item number 3 please. before we move to number 3 i have a question.

>> yeah. >> to richard. >> i. >> each year we've not officially as long as not about the resolution. >> okay. >> it's up to the president. >> second. >> richard before we go with item 3 a question commission. >> that is asked often for the registry let's say. >> commissioners. >> i'm sorry the registry if someone wants to assess the registry and have information about businesses that have been include in the registry saying that openly on the record how will they do it what's the procedure. >> if they want to assess all the businesses. >> if they want to find out. >> a website we created a necessary web page and they can go to that page all the

businesses are listed and included the website for the businesses and the dates they were included on the registry and we'll probably be adding to that but right now a list but definitely do that. >> that is assessable for the small business commission website. >> small business commission it is sf o s b.org and along the navigation on the right now is the legacy business program and they can go to the registry to see. >> eventually the description of each business. >> like to have a map to click on and business discriminates and bans that a little bit more. >> thank you, thank you. >> all right. item 3. >> item 3 presentation and possible action for article 7 to the planning code reorganization informational proposal to amend the planning code for article 7

and clarify and simplify the code language and others protection riverside the conditional use authorization for the irving carnell and commercial district and the controls for the conditional use authorization for medical cannabis dispensary nearing and for the conditional use authorization services on the second floor in the carville and n judah neighborhood district liveable streets the candles and discussion and possible action aaron starr at the san francisco planning department. >> good afternoon. i'm aaron starr aaron starr, manager, legislative affairs. could i i'll talk about the code reorganization project that is phase two of that project the project was initiated in 2013 seems to restructure the

planning code so it is easier to understand and use this is accomplished by the consistency to the code and the definitions phase one was adopted by the board of supervisors on go february 10th of 2015 and signed by the mayor on february 20th phase two focuses an article 7 of the planning department and fattens an article 8 and initiated after phase two is complete so what is article 7 i'm not sure familiar with the planning code but added in 1980 that's where all the newly created businesses were and gains the neighborhood like north beach and castro and upper market and the transit, etc. and includes over 40 zoning district and has its own set of definitions so

right now there are 4 places section one a 02 and - the first zoning district to use district reregulate by second story and third floor and above and the first zoning district with the interim controls a place to go to find out all the development requirements for a zoning district and all the use allowances and what requires conditional use and go to one spot to see it all. >> does the ordinance is very, very long and excite simple one is all the lease definitions and the other ordinance makes the changes so it is sort of con did he see sections and new tables

into that so updates the article for the article 2 under the phase one approach so again, if you know how to use one section of code you'll be able to use all the sections of the code once complete and deletes the section of 770 and uses the consolidates dpivenz to one and two it will be consistent throughout the code a restaurant is a restaurant a gorgeous will be a grocery store, etc. would one definition of the code another substantial thing it creates a 20 day notice for all variances and map amendments and general mapping this is because we're deleting section 316 a duplication of section 30 six the substantial difference the zoning or the notification

reimbursement in section 3620 days and 306 is 10 days for more public notification and higher date. >> and the last sort of substantive thing that deletes the neighborhood commercial district entirely from the code it is a defunction code for upper market and transit district that is expanded from i believe church all over the place to castro but supervisor wiener lives within 5 hundred feet of the two parcels not included we're clean power it up and deleting the section of the code. >> is that the section i call is zoning to castro and in love i didn't. >> it's upper market commercial district that is a gas station used to be the outlined arco gas station and a liquor store those two parcels

are zoned commercial district yeah. >> as the maker said several changes to the district i referred to the sunset agency our office had been working supervisor tang's and we're not making a difference in changes to any commercial district not intending to do that requires for bars and liquor store on the ground floor and the commercial district can he recall their principally permitted as generally for conditional use as liquor store is it so bringing to making consistent with other neighborhood commercial district and under commissioner wu before supervisor tang she made the mcd

required cerebral hemorrhage under some definition changes there were intentions took that away and so there was interim controls and so this now makes those interim controls permanent requiring a cu for medical cannabis dispensary and also requires cu on the second story in the commercial district and supervisor tang a was concerned about the nefarious acts permitted as service uses turn out they're hard to cast and regulate on the 72 hour 0 requiring a conditional use. >> a little bit about the structure we divided all the uses one and 8 uses in the planning department divided them into agricultural and all and others and industrial

institutional, residential and sales and residential and non-residential so each of these use categories is defined in section 102 if you go to section 102 all talks about all these uses a compliment to that etch use definition identifies a category so for instance, a jewel store a retail service use and that it goes on for the definition is identifies the category and the category defines use it has and then this is how it will work in the table so if you look at here it says entertainment arts and recreation the asterisks is not listed blow the control for the art and recreation listed blow permitted

and below that the entertainment general entertainment and night life entertainment those are regular active with other categories they have their own and industrial uses not permitted in the neighborhood commercial so having not to list them only the category that's pretty much it for a long ordnance i'll be happy to answer any questions you may have. >> commissioners questions commissioner dooley. >> thank you airbnb i knaron s a - it is north beach i nodded it some of the changes and definitions for row 3 specialist reminded restaurants are substantive changes from what we

had before and i personally think there making it a lot nor confusing for example, we now have the proposal saying that a general grocery store may have a limited restaurant or take out use we have the same thing for speciality groceries and limited restaurant says serves ready to eat foods before it said eating and drinking use so a new category take out it it seems to me that adding all the abilities to add a limited restaurant virtually every category is muddying the waters i know from my neighborhood will be a real problem for example, we try very hard to try to have a balance between

food uses and neighborhood serving uses and this kind of opens up the door for things we'll consider to be neighborhood uses like a grocery store or a speciality grocery and now they're going to be allowed to basically be part limit restaurant which is dynamically opposed by our neighborhood so you know, i think you've going done a lot of great work but step back clientele and have other ncds weigh in we're a pro-active ncd but those are points i wanted to make and saying just look a little bit further or the other option are you willing to make exceptions or changes to particular ncds i know you're kind of saying they

should be having the same basic categories and in them but you know they don't one-size-fits-all everyone has a different story in their ncds what they need might be something something else is not applying a step for that ncd i'm urging you to carve out exceptions and make each ncd if requested for them particularly or kind of review some the definitions those are substantive changes in the definitions that's my request. >> do you mind in i respond. >> sure. >> isn't grocery stores and speciality grocery stores are allowed to have adele i didn't use that's what you're referring to with the limit restaurant the

shot hand we put that in there that's basically, what adelely correspondent i've talked with you and others people i understand your plan to go over this in september to massage the definition our more comfortable and perfectly willing to do that but no a substantive changes grocery stores have been able to make sandwiches and what's that's it what a limited restaurant does and only they don't serve alcohol that's basically, what you're allowing take out was in the definition planning code which is still in section one 02 not separate but in fact, a spate use allowed i'll talk with the zoning

administrator and if we need this depiction i personally don't think this is necessary but working with a lot of people in the department to make sure i keep as many or much of the sdrmz as i can and with regards to north beach and you know notice i've agreed to meet with you to make sure we're maintaining them to have consistency throughout and the north beach is very unique and probably the most complicated district in the city as the neighborhood commercial district and controls and a special use district that mirrors the boundary of the commercial district exactly so you have to layers of regulations over one area and while that makes it more complicated it provides more opportunity perhaps taylor it for north beach other avenue that we can look at so - >> i'm bringing up that up to

put it out there for the other ncds maybe not as pro-active with the code like we are and just to do what we've been doing review the whole thing because it is a big bite to go through all of this and you know, i just want to be sure that everybody reviews this and understands what it will or won't have any fact that might be desirable or undesirable at this time. >> commissioner ortiz-cartagena. >> thank you for your presentation i have a question regarding the use categories. >> sure. >> you mentioned that you chained the categories to collapse them into a number of categories; correct? >> 8 of them. >> and just out of curiosities it did you use the guide just give us an idea those are -

>> sure my method is years ago i looked through the code and found ink definition for a code and then he sort of grouped them xhoontd the commonalities they're not 3 different from the categories before. >> what section if you remembered. >> article 2 was divided by use but the structure was completely different than article 7 this makes the structures the same and i don't believe that article 7 had eye categories but definition i won example of the use category i get rid of and it was its own separate use and all services they're basically retail function or like we don't have but a definition like an entertainment kind of recreation

so i looked for the land use impact in general and look at the existing controls if you see a pattern with certain uses they kind of go together in that respect so i don't know 40 industrial uses and down to 12 by looking at the pattern how into different subdivisions. hem >> so you collapsed them into categories and took a large number of sub uses and put them together and added - >> well, i haven't really added uses by like neighborhood commercial directs groupings like general or other entertainment and other entertainment included night clubs and bowling alleys and included gave him arcades and

what i did i took out night clubs from there it is regulated separately and that allows a neighborhood commercial district to regulate a niagara i night club use separate than a bowling alley in some cases it allowed for more commercial district only allows industrial districts i collapsed them in general the uses have the similar impact. >> the final question you mentioned you may have particular application for the certain neighborhoods how do you propose for example, north beach. >> i don't think i proposed the application i'm saying north beach has two layers of controls both suspending and the neighborhood commercial district that offer laptop exactly the same with the special use district district it allows for

a nuanced approach. >> with that neighborhood. >> yep. >> commissioners any other questions. >> thank you aaron opening it up for public comment any public comment on this item? seeing none, public comment is closed. i believe this is just informational yes. >> just informational i agendized an addition item if there's a direction the commission wants to provide. >> thank you aaron peskin appreciate it move on to item 4. >> presentation and possible action for the elements on eating and drinking establishment and informational presentation regarding to amend the commerce and guidelines for specific uses on eating and drinking establishment to rehabilitate the policy statement by removing percentages of eating and

drinking establishment for the photo commercial frontages in a single zoning district the percentage claugdz for eating and drinking will remain unchanged in the planning code discussion and possible action item and the presenter is from the legislative affairs with the san francisco planning department. >> hello actually she's the only other person i met with the same name. >> i've never heard the name before now. >> i'm a legislative planner thank you for having me. the department is youpt one section of the element of the general plan and just as a reminder the adjoin plan is required by the state of california and sets a vision for san francisco the general plan is adopted by

the planning commission and approved by the board not changing the planning code it can only change for a legislative action we think of it as a provision and the planning department and code is how we implement that vision and the general plan is made up of the housing element and one is the industrial element. >> the commerce element is the c n i is the expensive died for the public and private sector in making decisions that impacts the economic activities divided two industrial and maritime and commerce and health and educational services this amendment to the general plan will impact the neighborhoods the element can be found on the website an experience i'll present a

specific language in the c and i element currently this has a percentage of over compensation the balance maybe threatened with the they occupy mora commercial - they include the more likely percentage of larger concentration for restaurants in the neighborhood the planning code section 303 a conditional use also regulations eating and drinking use the concentration of eating and drinking should not exceed the 24 percent of the footage within an immediate area of the site an immediate area is all properties within three hundred feet in the same zones

what did it mean it have two regulations beyond the computations they don't result in more data the conditional use results in a more precise information the general plan looks at the whole district and the general plan is a vision statement and others code should be the implementing tool in this case the calculations is the intent of the general plan so to provide clarity i'm giving two example of the neighborhood district in the sunset let's take an example of a proposed restaurant that either is in the carville ncd n judah is with only one half mile and - 20 percent is different for a zoning district in carville compared to two 20 percent over compensation in carville may not

have a man and woman versus the 20 percent over concentrations like n judah however, the calculation of three hundred linear feet from the subject property not changing provides a more specific and concrete calculation to determine the concentration of eating and drinking restaurants in the area these two calculations is done by planners you, however, the calculations of three hundred feet a planning commission and the public considers because it meets the intent of the general plan the proposed changes will roach new medic xhamths and replaces them with the general plans, however, the xhamths limits for eating and drinking will remain in the planning code a planner

will make before the planning commission needs to make the calculations in a cu and still need to make the finding in the general plan, however, no longer to do the calculations in the entire district so the next steps the department initiated this planning code amendment on june 30th and scheduled on october 6th and met with the golden gate folks and they were supportive and presented to the coalition of san francisco neighborhoods in july and no comments on the property change i'll be happy to answer any questions you may have. >> commissioner ortiz-cartagena. >> did you have a question you are left over on the list i can't cancel (laughter). >> i have a question with the changes will the planning commission be required to apply

those limits when they're looking at say a cu. >> yeah. nothing changes in the cu a planner will have to do the calculations required in the conditional use and a planner will still have to give to the planning commission any of the finding in the general plan still have to talk about the new proposed establishment not providing an over concentration to the district the finding does not change the participate is doing one versus two. >> the planning commission is n.e.ly required to abide. >> they're not necessarily required i read a case in terryville the restaurant was over concentration 50 percent but enough support for the planning commission to approve it the commission has to consider it but the neighborhoods have to support

it. >> commissioners any other questions or comments? okay. all right. thank you very much >> do we have any members of the public that want to comment on this item seeing none, public comment is closed. action on this or - and it's the same. >> i want to say this was a good job thank you. >> thanks for coming out. >> and then note when the planning after the planning department officially introduces the legislation like to come before you this was a good opportunity to get a more thorough presentation on this. >> thank you very much. >> all right. we're on to item number 6. >> number 6 discussion and possible action to make recommendations for proposed rules and regulations to administrative code the legacy business assistants accountant

discussion and possible action. >> all right. commissioners i'm going to move to the diet i mean the platform. >> okay. >> so commissioners before you have a copy of a power point presentation and then in your briernd your copies of the proposed of the proposed application a list of the rolls and application regulations and also a list of things that before we get to finalizing the application rules and regulations and process the

items that you need to take action for us to complete what the rules and regulations are. >> okay. >> so alright for a quick review for the public this is application for the legacy business assistants accountant we're you will calling a legacy business grant as part of historic preservation that was established by jackson playground in 2015 those eligible are on the leg legacy and the grants application filing period is july one to september 31st as stipulated in the prop j the grant amount is up to 5 hundred per full-time employee up to one employees per business the funds are paid to the business based on a fiscal year calendar

and businesses need to annually reapply eligibility requirements as noted earlier they must be on the legacy business registry no amounts owed to the city as the way of penalties they're good on all the - no labor issues outstanding and meet all the requirements as established by the small business commission and so those requirements are what you are going to be hopeful approving today application timeline so one there is a number of full-time employees businesses need to certify their full-time employees as of the immediate procedures up to june 30th and between july one and june 30th is used to complaut the grant

allocation to that business full-time equals a business to add the hours of each employee if july one and divide and routinely up to the in the matter employee that's the specific definition state in prop j and we're going to be asking as part of verification they provide payroll documentation peace officer ably from a payroll service the grant filling off period as prop j is july one to september 30th so but for the fiscal year 2016-2017 because of detailed start with the registry before i we are staff is asking you to approve we extend the filing deadline to december 15th so the businesses that have submitted their applications in the first

round you'll be hearing at the last two meetings have the ability to apply for the preservation grant the grant allocation noted earlier is up to 5 hundred full-time equivalent employees i have a chart for you to kind of so that you and the public fairly clear on what the business assistance grant allocations mean for a business to fully fund it for full-time employees if the business has two full-time employees 5 hundred a year and 5 employees 25 hundred and 9 applies 4 thousand nine hundred and 50 and then so on up to one hundred full-time employee is $50,000 a year just to make sure we're clear on just the amount we will

be a business is eligible for . >> also when the grants sorry the next thing if the account is fully funded the grant filing period is the july one through september 30th that is specific filing period we know exactly what the amount of the number of businesses banks full-time employees that fund request will be so then based the budget allocation that will be approved through the budget through the budget process then we'll be able to take what the allocated for the business assistance grant program and divide that by the number of full-time employees and times you know -

then allot that we note and it states in prop j if there is not enough funds in the business assistants account the offense is able to prorate the anonymous of funding to each business based on whatnot prorate but - if the - if the requests explodes the amount of appropriation divide that but ftes and define it so businesses can be receiving under $500 per full-time employee there's not enough funds staff is recommending that businesses be allowed to apply for funding for a set period of

time and again, if in prop j no 7, 8, 9 limits that a business can apply for the grants and staff is recommending this so as businesses come on to the registry and if we keep on adding and adding and 5 the amount of funds will be smaller and smaller for businesses to have the funding have a particular meaning staff is recommend we put time limits on which a business can apply for the funding we'll go through a little bit later i sent some examples to you and we'll go through what that may look like funding wise over a different period of years what we will need to have in the the business assistants get if we fully fund the projected number

of businesses. >> so that's one of the items we'll be taking our direction and asking you to take action it is time limits so i've gone through the filing period and needing our approval to stoned through this current year 2016-2017 in the filing period to extend it to december 15th then verification this is application the use of funds for that businesses need to state what the funds will be used for inevitable fund must support of continuation of the legacy business and that the commission approve the eligible uses in the binder in the application - so there's

the rent increase the employee salaries increased grandchildren the consumer price index and staff hired not to extend 40 hours per week and the improvement ada improvements, capital improvements and recognize experiences and site marketing and/or promotion, special services like business consultant and other items to support of continuation of legacy business we're asking you to look at the list and if you can add subtract or firmer you think this is an appropriate list of for eligible fund use -

we're asking the commission to verify and take action think establishing ill eligible used for the grant funding and those uses are rent increases less than the consumer price arbitration and the employee experiences and salary experience less than the consumer price index. >> and then i want to note that businesses need to reapply every year and at the reapplication they'd they'll need need to resubmit the documentation to extend their grant fund towards what they said they'll be doing and at this point we don't have a

stipulation you know every year it could be something different their replying for based on the eligibility use not they're making a commitment we haven't made that stimulation making a commitment for whatever the time amount is that will be one particular item for that period of years to be determined but if this is something you want to discuss we're happy to have that discussion with you. >> so also in the application we're going to be asking the applicant to provide some business information what we call a business assessment and that is to help us get a general understanding the financial health and well-being to see other supportive services that are helpful the business to

help them stay in business and/or other programs that we could develop under the legacy business program which is something that is stipulated in the administrative code as the section under the legacy business registry. >> other requirements is that the business to lift other funding sources it receives if the city that will help us track our comprehensive programming and support we have for businesses in the overall effect we are asking businesses to become a city vendor that will help in the easy of paying them but if the not able to be a city vend we'll be working with a noted vendor to - the commission action for the legacy

business assistance program and application one needing to get approval for the grant filing deadline extension of that eligibility uses ineligible uses, time limits for the grants for participation and the approval of the business assistance program before we go into each individual item i want to take the opportunity we may have to use the overhead i have in your binder projections outlays before we get into that any just general questions you have. >> i have a question. >> commissioner ortiz-cartagena. >> what is asked so we can have - we'll have a time limit for legacy businesses to receive funds their eligible whatever

that is and second we lived with those regulations determine the use of those funds whether they under the category that you listed so i have questions if it is the right time to ask them. >> sure maybe what we should do take into account maybe dealing with the eligibility use first so then i can or because i'd like to run through the projection felt financial charts. >> please do. >> so we can talk about the eligibility uses first if you want. >> you run the show. >> i think one of the challenges over time will be you know we have this balancing act where if there are - a lot of

interest in these funds those grants then we will bump up against over subscribing them so the notion of time limits will allow some kind of a renewal here so the idea that the grants are limited not only in dollars but in time suggests a grant needs to go towards the use that will put the business on a better footing in the future not a crutch not something that the business should come to rely on in perpetuity but get through a bump from the road maybe a temporary situation that needs a temporary cash flow extra money or an investment in something

that will either improve our efficiency or give you a new k3w5b89 that will allow you to make more revenue or some economy of scale so our business proposition improves in a way that once the grant goes away your - you can carry on without the grant is there's definitely the notion there needs is to be leverage associated with giving the grant now, one of the challenges going to be is that if we say well, i want to use my grant to sub time my rent the changes of our rent going down is not there you have to ask yourselves a

question supplement my rent i need the grants forever unless over the period i'll have the grant i'll do something to improve any business and when the grants goes away the fact i'm paying nor rent will not sing me; right? because we're just providing a crutch so this is going to be really interesting to see how this plays out i think most you know what we're hearing and heard today was people challenged by really think one of two things their rent is increasing but also the cost of the employing people minimum wage or benefits that are mandatory by the state and the government so raises the rents those are things that don't

change; right? so usually go up so the question is going to be whether grants towards mitigating rent increases or mitigating classes of employment are really grant worthy in this scenario will be the business be able to survive without the grant without the crutch i put that before us >> the question i'll ask about the elements and i want to be more specific that so basically, we're saying you can use the grant for eligible uses and are we saying if that if you rent your rent is less than 2.5 percent you can't use that grant for the rent but other uses so

are we also kind of questions and answers and thought are we saying you're going to have to pick one reason one use out of the many uses because you can for example, for the sake of argument use part of funds towards your rents and part towards our employees are we basically saying if you get into the program to this program and you just can't use part of this money unless it is above a certain increase and have to go to other categories so is that the - what we're thinking about. >> we'll get to that liability uses and decide if you can use it for rent and others are dealt with separately a rent provision

which is separate from if i understand a general use so if you apply foreclosure and approve for rent it goes torrent if you apply for other use they're not able to use it for rent those two are separate then we get to the clarification of other uses we'll get to we're not debating it yet. >> sfgov excuse me - sfgovtv. >> excuse me - commissioner dooley did you - and my list is not updated so commissioner ortiz-cartagena. >> i'm not sure this is the appropriate time but ask first when we eventually decide this and district those funds are we're going to post how much we gave to per grantee or not. >> that will be a concern of mine. >> has to be a part of public

record we're granting taxpayer funds and i believe that provision will be yes this is a matter of public record. >> perfect the other clarification a concern maybe i when i saw this i was reading this i hate to say this nonprofits don't have more employees and they're better organized and meet their deadlines they have bigger staff will they- and they have grant writers. >> that's what i'm seeing. >> month companies don't have grant writers so 50 employees do they get to consume most of grant funded what's the major do we want to say 5 or 10 businesses or one nonprofit consumes everything. >> that is going to be a matter of our discretionary as we see what the population of applicants looks like and also the number of applicants if it

is over subscribed we will either make a decision that we're nothing not going to permitted overprescription we're taking away from those from theirs full share because we'll let more people through the gate than we have seats for, if you will, that and so we'll office building, that with time i don't know what kind of appetite for those once people release we'll see what is available and what are the available uses and regina is going to take us through the proposed uses that one might apply for and maybe acknowledge that someone will bring up a use we've not gotten to. >> the rent increase my question is aren't we are dealing with that by provision when you become a legacy

business that kind of allows you to negotiate with our landlord. >> that's another thing that mark farrell being on the registry is giving people negotiation i don't understand the leverage as a landlord you say great you're a legacy business good on you i'm raising your rent but what the legacy business then has the opportunity to say okay. if you raise my rent i'll apply for some mitigation through the legacy business rent relief fund and will you the landlords take into consideration really this gets into you know the soft side of rent negotiation are you really going to take it to the market or allow you know allow for the fact i've been here a long term and some kind of

calculation for a new tenants improvement. >> i think the dating once our a legacy business you can approach your landlord yeah from the city that is $4.75 a secret it is a minister grant on top of what we have here. >> right. >> i think the rent increases i'm seeing in the market personally and the renegotiation of my own lease and others are seeing incredible increases in rent this fund is not imnot funded to deal with many of the rent increases we're seeing this is small you know incremental vachlt in the rent increases and have a psychological effect we'll see expectation out there this is somehow going to be a

silver bullet for a lot of legacy businesses not enough funds if we deploy it the funds run out as currently funded. >> just before i move on to the projections i want to make sure i address a couple of points so in terms of the we - what's not before you and will be before you the next commission that meeting is the rents stabilization grant that one is to offset the rent going to the property owner so commissioner commissioner ortiz-cartagena in terms of eligibility uses i think you know that is an interesting question and we if you wanted to provide directions direction that the commission says we want you know the business to be able to - staff but and the business to be able to use it more multiple

funds especially a business that might get a higher amount of grants that's direction you you can provide us and commissioner ortiz-cartagena parts of what we'll do after this grant application time you know we get through the grant application as new businesses come into the registry we'll reach out and get an understanding of the ftes and applying for their interest in applying for the next grant cycle for the business assistance grant to get an indication of the amount of businesses and when i say businesses that is the total itself before for profit and nonprofit so we can present this to the mayor and the board of supervisors to let them know kind of what is coming ahead and what is the interest. >> if that makes sense of

applying for this grant so what will be the demand i don't think so that our again with the registry under our direction we want to make the grant pretty as simple as possible but want to understand there is an obligation of sort of tracking the expenditures of the taxpayers dollars and report out on it and being able to look it over time what areas help a business and what areas may not so we can you know have more reporting requirement or more information to report on to provide to you so again, some of those things again are - their subject to our administrative approval if we need to modify or change them

over time we can let me get spot financial elements if i can have the other microphone now. >> so sfgovtv if i ask have the power point i mean the projector. >> i don't know though easy this is for the public to see the first projection i've provided you is based on if we have an average number of one and 50 businesses applying for the grant on a - every year so the first column gives side

fiscal year the projected number of businesses so for 2016-2017 based on just the number of applications we'll there are no get through the grant filing deadline we're to be safe 64 businesses will apply for the grants program which will then be an equivalent of 5 hundred and 76 ftes so that to fully fund that needs $2,088,000. >> 200 and 88 thousand thank you for that correction and move on to the next year 2017-2018 if you add one and 50 businesses to that we'll have a total of two-hundred 64 businesses participating that's 20006 hundred plus full-time employees

jumped up to over one million dollars to fund the program so without going into great detail down the sheet every year adds one and 50 businesses so the column to the left of dark line the amount we'll need to fund the program should the businesses never roll off the program then to the right of that dark line if we have 3 a 3 year be participation then starting in fiscal year 2019, 20 businesses will roll off so that will be the fir first year the l off if we didn't is a role off

$20,013,000,000 a 3 year participation then that granted period will be $200 million plus and if we had a 5 year roll off we didn't have the roll off the amount $3 million plus and then and so on it goes for year 7 and year 10 if you want me to review those numbers. >> so what's the current appropriation for this reminds me the annual appropriation. >> so commissioners we've not come back with a budget we'll do at the next meeting of what we're - right now the grants- what was funded in the program was just a lump sum into the

legacy business program and so we have the ability to announce some - >> what's that amount. >> currently i think we're somewhat project by project around 4 hundred thousand for the first year with the opted lower number. >> sorry i mean, i'm not asking a question annually how much money is set aside the entire program is 1.2, one million dollars plus. >> so not $2 million to allocate to there's $1.2 million total plus the administration fees but plus or minus the $2 million not money available for grants we also have others budgetary items like the materials for the booeb registry if we said bear bones is

$200,000 a year and one million dollars a year so put it in perspective we're talking about numbers 2, 3, 4, $7 million in a program that is currently funded annually with so many dollars. >> correct based on some of the direction you want to provide it let's the mayor and the board of supervisors know in terms of your tintsdz interest in having it funded but again, we reside provide the information they'll deal with the final - >> it is important we got to keep letting people know there is not that much money. >> you know >> everybody that got nominated they assumed they'll quality and like i said,

the nonprofit alone in the neighborhood that's my concern and the public comes back and thinks we're not handling the program right at the least we have to keep - >> you can't give out too many $50,000 grants if you'll be judicious and spread around one million bucks we want to have to be careful we either wanted to show a few very successful executions so we can go say look this is great we need to fund this thing to the tune of 10 or $80 million a year not that we've shown by giving a small number of grant within the limit of one million dollars we have we can produce good relies that will be not in our best interests to say look let's spread it ousted across

all the application we want to you know honor everybody's application so all 64 we'll give you money i'll be more cliebd to say you know what in the applications we saw 10 that we thought role showed some promise that in two or three years time they'll get ahead of the power curve and in except or whatever we've not heard the stories but some compelling stories in 3 years time we've seen the grant expired. >> i'm going to your point how do we come up with the exact criteria and then that's another problem the public preserves we're like who do those people think they are this is a good one and this is not. >> i'll give you an example a

perpetual problem this is a one time thing you're a small business and those are eligibility requirements by my concern you say what is the criterion we'll base this on. >> you can imagine enters or emergencies a boiler blew up i have to replace if i don't have $50,000 a lot of businesses can't i mean like people you get a catastrophic illness our bankrupt this is not an emergency funding we're in a weird place someone comes with that request we're not like you know not here like waiting okay. the emergency assistance fund desk come to us with our

emergencies we here to make more deliberate decisions again look this is a great investment if i had this much money i'll side this rather than if i don't get this money bad things will happen it is challenging and interesting to see what comes up. >> the legacy business there is the rent stabilization we've discuss next week but for you to clarify this millions o million dollars two covers the rent funding as well; correct? >> yeah. >> so the assessment that we made to the money being available for business is not accurate because we'll be using the fund to paying better or

give incentives to owners of real estate to provide better leases to legacy businesses so in fact, that also had been to take into account that one million plus that was my reason to ask to this aspect how things the businesses resolve the financial competency why would we have rent component as to whether 2.6 percent increases higher or lower if welt be helping a business or maybe no renewable and that issue is not an issue and not in terms of they'll not be double dip on other side giving money to the

tenant the business and at the same time reward the landlords that will give us a better deal a than the market. >> right thank you so in a few of the earlier discussions before jackson playground discussion around what would be the appropriate allocation and take a look at the grant program ted egan did come back with an analysis that kind of gave some direction in terms of how rents are increasing and price per square feet so supervisor campos i think was a little bit uncomfortable saying the whole preservation grant will go to the property owner kind of took that dollar amount and divided it in half not equivalent not

all businesses are getting an equivalent half but look at okay we'll do some funding but not a complete increase amount to the property owner but be able to subsidies some of that working with that perspective in a business is trying to offset some of the increase than that's an appropriate use of funds based on what the initial conversation was with the supervisor prior to the ballot being introduced a couple of other things for you to think about awhile right now the one - the $2.5 million that over two year budget cycle in the last budget cycle -

i think - what i want to encourage you to think about for the business assistance a long time it it could change based on what is described as a need and that's put before the board of supervisors and the mayor you could take a look at that business assistance grant and is okay. based on what a business is able to receive we think a 3 year timeframe or a 5 year timeframe provides a meaningful grant assistance for those businesses and therefore then we in fact, can go and present that to the mayor and the board of supervisors in terms of what your recommended intent is and, of course, if it didn't get fully fund we predicament the

funds the best we can. >> i don't think that the time limit is as - we're going to evaluate requests for grants based on what we on the effect will be if someone says i want one time grant with x dollars to do something okay. that's not a one year grant a one time grant if someone says i want x amount of dollars per year we have to consider that a rent assistance that that kind of thing i want x amount of dollars perpetually to help to offset any rents okay and so, yeah we may have to decide that rent entrants for that a certain amount of but about the problem with that okay at the end of 3, 2, 4, 6 years

all of a sudden the legacy business what will happen people will come saying ovj you're pulling the rug anti from under me i depend on on the grants. >> we said it is on this two or three grant and now i'm back i want the grant re-up re-up so again, it is going to - we're going to have challenges we - very clearly all know the stories spend all the money and one hundred times the money on rent assistance because there are businesses facing not thousand of dollars 10 and hundreds of thousand dollars of rents increases per year so this you know- to the question you don't - the other thing not over subscribe so next

week i know i gave you a 3 year grant but only this year i gave. >> bunch of other fujdz that's the definition of ponzi and suddenly you can't pay off it blows up so we'll have to say at some point unless more funding rent assistance is done we can't over subscribe and take away from those. >> my understanding that is a one time grant every time they apply one year and funding again for next year they have to reapply. >> correct but if every single business did that if you look at the 3 is that the adding 200 businesses or three hundred businesses a year i didn't do

for you what that number's looks like if they'll start rolling off the number of businesses that will be applying just remember in terms of how prop j is written and unless we put something in the grant regulations in terms of you have an x number of years that you can apply for that grants then that means every year any business on the registry can apply. >> if a one year sorry but a one year rented assistants grant a - ; right? you can't you'll not say i want to one year assistance grant. >> are we talking about the rent assistance we're talking about general funding application and when they apply we can evaluate whether or not we can fund them based on the resources whether or not we have

the money or based on they still quality. >> based on prop j is it whatever in the fund account and the number of basically number of full-time employees you'll be dividing that by the number of full-time employees if the business has 10 full-time employees they get that pro rated amount so that is why as richard and i have been looking at this we're looking we're providing an goiblth you know some of the uses and could a have that conversation when is appropriate and not appropriate the budgeting purposes regardless of used for is budgeting purposes to be able to have something more concrete especially to be able to tell the future businesses that come on the registry then i think looking at a time year limit to

participate then let's us know sort of what is the maximum amount if we fully fund that particular program so and that isable we're able to i think better agriculture in terms of what dollar amount in the program looking at it be from what is noted and naturals to this not how it is needed not stipulated in prop j. >> to commissioner yee-riley the next year the notion those three hundred companies i want my grant we are have a seat those three hundred and other three hundred and only have a seat the same three hundred except for attrition ms. rapidly out of control we can't do three

hundred this year and 6 hundred and 9 hundred the negotiation to look at the list we have it is more and more apparent using some of the money for rent increase is unrealistic the total legacy funding it spent on things as a limits on them like ada improvements or other improvements things like that and that's something we can get a handle on and we would perhaps someone will say i need one more you know grant to finish any ada. >> one time executives that represent some kind of on improvement. >> a business concretely to say give to every single business can use help with their rents all rents are going up it

is not realistic like a band-aid and i feel like the other types of things on the list are hero realistic you can say well, if i do this capital improvement i'll be making more money for that. >> right. right >> that's the direction we need to be going. >> the perspective in the media this will save you rent. >> i think this is a great perception the answer to eviction; right? the anti eviction silver bullet for legacy businesses >> but. >> that's a challenging preservation. >> to make a deal with the landlord give me 10 for years we're till having in place something that deals with rent. >> uh-huh. yes the rent

assistance side of this whole swaegs we'll allocate some of the funds i guess i agriculture we'll still not have enough money is it so interesting to see what applications we get are we're going to get other than applications for rent you know rent challenges i imagine we will get some for people that want to suggest a facade improvements or ada improvement will benefit them so it will be interesting. >> i'm sorry one thing that should be clear that the law didn't allow us to say first, you have an advantage on the others in terms of you can't limit the fund to those who have applied first you could in my opinion you

could say stay in the fund for awhile say two or three years but not say those who are coming like subsequent years not coming in there are others that are before you. >> we can say not to delay anyone we want if we decide not a let anyone else in to loop the fund to the detriment of those who are participating than that is entirely our discretion to make that note a first come, first serve your discretion to see in the available applicant whether they'll benefit and the taxpayers will get what they thought they'll get out of this. >> we'll verify whether or not we can do that i think the way for us to be able to do that through time limits and but for us to use sort of individual

discretion maybe a little bit risker. >> what does the legislation say about the grant they're not- >> they say a business - to continue to receive the grant. >> right. >> they have to reapply. >> an annual application. >> an annual reapplication. >> you're at risk you're not reapproved. >> that's what i was trying to pout other funding. >> yes. >> we have no control over how much money we'll get from hud every year we so to see who qualities and you may get funding this year but not next year you need a change when you no longer qualify so unless you have multi year candidates

otherwise. >> every year we'll be subject to the increasing number of businesses added to the registry and have some dollar control that you know be able to know exactly the amount of money why we're proposing the limits the reapplication in terms of how prop j states it i am not there are qualifications you need to reverify employee and employees need to be in good standing and adding the requirement to provide the documentation of how you even expend our previous years fund and restate how you'll be expending our next year's grant. >> they cany apply not not guaranteed. >> and be forewarned commissioners this is exactly how this kind of thing gets politicalized we'll get a whole group of people applying and asked to make decisions about

those who are already in the policy and want to re-up their grant and the new grant a lot of pressure about whoever is applying a new whether we'll be saying hoping hey we made obligations to other people or cut those people off and make in the grants to others that will be challenging. >> we're not obligated. >> the way prop j is worded is there eligible to apply that's why we're proposing some eligibility requirements and then if they meet whatever the grant application requirements are then that whatever the allocation will determine how much the business gets in terms of - so - you know unless the

commission is going to say this year it is all grants for this and next year is grants for that it will be hard to say you're not eligible unless they're not good with their standing with the city or have other things are for some reason the staff determines how they expended their funds the previous year didn't meet with the grant previous grant was. >> be able eligible i am not i don't have a problem with establishing the equity criteria make a general statement what is eligible use and then some specific examples we can't anticipate whatever request this is can't be the only request someone will say come forward with something their eligible for an opportunity to evaluate new requests to rule on the

eligibility of a request which we didn't anticipate here and now and. >> and other items of support. >> that's fine if any of the commissioners want to read the list and say something should not be there or adam this is through a process of people making contribution to the list i think that and then i feel like we have to go just. >> see what happens. >> see what happens. >> make that clear that there are not unlimited funds. >> correct. >> it's something maybe a pr thing for us but out there we're not being mean and not discriminating between businesses just a financial realty and, of course, the parts of that money that goes for the giving the landlord a break if

they sign up they renew the list this should be a one time thing that is 10 years we have to figure out how much year will go - and we'll talk about that next week. >> on the participation and time limit motion now on number 4 and then on the final motion legacy businesses may receive business grants up to so many years those should be around 3 years and no longer. >> coming back to the issue it is clear we can't limit the fund to our specific number of eligible - i'm sorry just a second if we have the first year one legible businesses and legacy

businesses we have three hundred of them then whatever funds we have that year is going to be divided according to the law in a prorate basis no way in my opinion reading of the law that should be invested with the city attorney's office and in fact, we can say to the first businesses you'll not continue with the same amount that's impossible the law is that it stipulates how many grants to give; right? up to three hundred or - >> there's no number. >> we (multiple voices). >> 3 applications a year. >> reapply every year. >> that limits it right there. >> it increases and can't take the first graduation of

businesses and then say alu you're going to get the money to the detriment of new ones and the second in their opinion we ought to clear of equity this an our issue if you don't want politics involved you have to have clear standards to come in as a business as a legacy business second as a ceqa fund so we can't just be so vague as to say well we'll decide. >> we're not being vague a list i'm saying there has to be one item one line item in the year that allows for a eligible use we have not considered today because we will gunshot one and can't say below you off in our infinite wisdom a year ago we

distanced what can get funded is on this list. >> it's okay if you're not excluding businesses with a restriction. >> we'll have not been. >> i'm not saying we are i'm stating we should be doing. >> so, i mean. >> i don't think. >> we can't make multi year grants only suggest - we can two things say we will not renew - not consider migrant more than 3 times in a row for exactly the same grant we can't - have to make ever grant assessing you're only getting this year if you want to next year you'll have to come back and reapply we kind of had a fiduciary responsibility to the companies not to make a

grant that requires 3 more installments because you know we can't guarantee that installment will be on a prorate. >> unless the participation time will limits ever business on the registry will employ and meet the eligibility requirements then we then just take whatever in that budget of the business assistance and divide it across the board. >> as the law is written. >> that specifically yep that's how it is written that's why i think from our staff prospective we are saying not granted a grant for 3 years you can apply for a grant for 3 years from the first time you

apply that way we have is rolling those coming in later have a greater chance of applying forgive a grants and be able to get a grantee full amount. >> it prevents us from getting congested by rephil grants filling up the danced cards knowing next year we'll see the same companies they've had it for 1, 2, 3 years or in perpetuity putting a limit on it you know in the end we can relax that limit because of limitation this is ridiculous none will apply and only a couple of people we can say we can keep on giving you money because we have that. >> that will make a business eligible for 3 years but not depend on that if they're in the

system have to get a prorate of what you - you can set it your obstacle not more than 3 years and remain obstacle for 3 years and then cut off. >> and just because you show up next year didn't mean we'll give you that grant we have others that come after the fact that will produce the results we look for . >> not the way i'll put that becoming scenario we have standards you going to have to adopt them equally and then they're in limit the time not take the new crop of applicants you can't come in because we've changed the eligibility

requirements in my opinion so you can limit the time and you say you can remain eligible providing your replying you need the money and once they're in they share equally with the others. >> i have no objection to putting a limit on it the limit comes from this body if we want to change the limit if we feel not serving the intent of the law we can change it. >> thank you if that's the way the law is written we need a limit (multiple voices). >> what we're discussing not arguing but discussing the thing that will happen if it san francisco balls what will happen the limit frankly in year 4 with a request for something; right?

we're saying the limit is on the grant not per say the organization requesting the grant oh, i want to grant for something different. >> staff is proposing we are limiting the number of years the business can participate in the grant program. >> in the grant program - >> to assure that future legacy businesses grant program has meaning. >> can you come back after a supervisor and sit out and come back again. >> i think we could revisit that but our recommendation. >> but for now adopt. >> adopt it as is and see if the grant program is being opportunity at higher - and i think that years is a good time. >> we can expand. >> 3 is less than a mayoral term. >> rick would like to say

something. >> if i could just make an argument and more than 3 years but the 5 years the reason the long term goal we want to look around the year 2020, 4 years from. >> we'll not discuss divided funding. >> okay. great. >> those other things in the purview i'm sorry. >> i was thinking that is give us more time. >> well it is up to the commissioners so i would like to have the commissioner decide 3 years is a reasonable or 5 years a reasonable number i feel starting out a smaller number is probably better we don't know what the demand will be i'll be happy to expand if we're overwhelmed we need a limit or

we'll not serve 0 all the people we want to commend serve and we'll be criticized. >> i agree let's be conservator and then tweak it. >> so the business of today so approve this with any modifications and by plugging in that one number. >> there is 4 things before we get both approving the final program and if any other considerations that you want us to add to the proposed rules and regulations and grants application so the first item is to approve to extend the business assistance grant filing period from in the year 2016-2017 this fiscal year to december 15th. >> yes. >> so that would be great. >> are we motioning on each of those. >> do we have a motion.

>> public comment. >> why not public comment let me reiterate your request for the commission and public comment on the entire and fact motion on each the actions so the public is clear to reiterate we're asking the commission to extend the grant filing period to december 15, 2016, for 2016-2017 that the commission approves an eligibility list okay. >> eligibility use list with what staff proposed or any modifications you want to make to it and approve the ineligible fund list as staff proposes or modifications to it can time limit to participate in the grant program for business to be able to apply for the grants, and then if there's any other

considerations you want us to have otherwise after those 4 items are motions you take action on we'll take action on is final business assistance grant rules and regulations and complaisance awnings a that have the clarification if we decide on this today what is - is the process for amending this or changing it is it having a just a second other things that disrupt the meeting are prohibited. change and voting on it. >> the first so the entire structure we submit to the board of supervisors they have thirty days to amend or allow as is after that the commission has

the authorizations to - unless legislated we need leg latsd changes then if not under our purview to pravk reconsider. >> for example, if the commission decides that today to set a 3 year term and a month from anyhow decides it - after - if we set the limit at 3 signed off by the supervisors and then 6 months from now we decided we want to make that 4 do we make that here at the commission by vote and then to the supervisors again or do we think mark farrell make that change here and it becomes a change ratified by without the needs for the boards approval. >> i'll need to reverify that based on any understanding of prop j we present the proposed rules and regulations to the

board of supervisors once they have responded to it then it is up to you to be able to make those amendments as you see them. >> all right. all right. i'm trying to assess the risk of making a decision today and going home - >> there will be definite flexibility once they legislate it. >> you've now made that part of record. >> and we can have public comment on this any public comment on item this proposal. >> seeing none, public comment is closed. commissioners are there any there any administrations you want to make to any one of those 4 items including the use of number 3 in the two places where the number of years is specified. >> i want to say this is perfect i like the eligibility fund use,

i like the others uses to support of continuation the businesses as a legacy business from the small business commission that opens the door there and eligible fund use whoever put this together we're not here for debt relief and you have the right increases with the consumer price index and the- your covered and i like the 3 years. >> commissioner tour-sarkissian a our residents attorney do you have any changes i'd like to recommend to this as is you. >> i think considering the limited fund we have at this point and the fact we have to spread the money we ought to

consider a reasonable fund you know since we're discussing it i find the years to be reasonable time provided, however, that the business has each time to apply and get funding the 3 years is not an entitlement but out limits. >> is there any commissioner that would like to see anything other than 3 years seeing none, that item is closed any commissioner have an issue they've not seen. >> a question was posed about the eligible list the only question the item number 4 - item number 2 that says employee salaries increased grandchildren the consumer price index just the clarification on the record i think that is necessary to set

these standards but what does that really mean. >> is salary an employee salary something that we consider an inevitable use paying on employee. >> so can i come and ask for a grants here's on easy one one full-time employees comboobl for a $50,000 grants i can hire one more person and want to hire 101 employees. >> will that make our business more successful. >> the only thing increases in salaries of the city bumps the living wages a volunteery act you increase the salaries because you want to or because you want to keep - i don't understand the - >> thank you. >> the retention the blow retention thing

thank you. >> from our assumption meantime the minimum wage goes up that's the masking the business will have to demonstrate based on their previous year the salary payment and then the reason why that - what they're planning on doing and the reason their salary increases through salaries or expenses in terms of their annual increases on behalf of the consumer price percentage. >> this calculation is $500 per fte well, i want to give you a full-time employee a $0.50 raise and the only element that needs clarification is this employee - >> i actually don't think you

can make a grants it is $0.25 an hour if you said i want a grant you can only get a grant of $500 and want that $500 to give any dish washer a raise if they're working full-time $0.25 an hour i'll not give that grant oh, okay. that's makes all the difference in the world to sustain our business. >> having - >> but one question a clarification that the first year they get the grant a legacy business can come for rents and the next year a certification or recognition expenses not have to be the same funding or need.

>> right. >> it can be the eligibility can migrate. >> as proposed it is; correct unless you want to do it for an x number of years. >> and that brings up whether we want to say it is fine to ask for the exact use of money all 3 times whether we want to impose any kind of limits so attention deficit disorder ada or whatever is that appropriate or is that more appropriate for them to ask for - a different item. >> yeah. i don't know. >> i think what we could do we could stipulate in the application under eligible uses that you can use the same use for each year or can change the use based on your need and in

your grant application i'll the business needs to justifies what they're going to be using it for and why they want to use it we can stipulate that we have the option of on and on okay. if i get this full funding for 3 years this x dollars what am i going to do 40 with that and plan or say every year i'll see what my need is. >> this is why i asked staff to give us examples look it didn't make a rocket scientist to look at the numbers if i look at the first three or four items additional employees $500 for each ftes may be one company with one hundred employees can hire 5 hundreds bucks people you divide that before i $15 an hour 33.3 hours less than an hour a

week that you can increase someone's time inconsequential and the salary increase $0.25 an hour unconsequential the salaries will increase the point here is that - you see this an, an eligible use but it is pro produce that the taxpayers had save r they saved that business they gave sometime 45 minutes of work that week and a company the guest to hire one more person in

my mind are not i wouldn't feel good being held to think i gave uaw three hundred grand and sthrp in those categories. >> are you suggesting we eliminate that. >> i'm suggesting that the - the eligible fund uses signals to what people should come and ask for . >> put those on the list; right? it seems weird to me. >> they're not good obligations of the funds and rent there's not come to this side of this education with a rent request we'll talk about that next week that's a separate part of this i am not i guess i'd like to see those first four items struck number one because rent dealt with separately let's not have rent on this side don't come and ask for rents but the other things we'll talk about

next week those next ones are about employee wages i don't think this fund is well, one written in a way that numerators it around a meaningful wage increase to anyone and so i feel like taking those off the list we're in good conscious make those choices. >> i agree when you have those on the list few people - >> say oh, well that's really not going to benefit it sounds like like you know a sweet deal for the business. >> and it really isn't. >> i don't want to set people up to. >> hire (multiple voices). >> oh, my god now i realize what i asked for we say $0.25 an hour what. >> i think that to make sure

the board of supervisors understands those are sexy topics and not adding people to the staff we need to make sure they understand from a small business appreciative. >> it's a practical matter we've been asked to make combrantsz that preserve legacy businesses give them a change for preservation and i'll argue those 3 items you'll had one we're saying we're dealing with rent in a separate but the other 3 those alegitimate to preservea legacy business. >> all the other things mixed in. >> yeah. they're kind of stuff you have to do and it is a one

time hit i don't plan on that. >> and move in the 3. >> i think the funds the rent increase crowds out the this portion of the funds. >> yeah. >> available. >> i think you're right. >> and should be dealt with at the level of former rent stabilization this is a in my opinion kind of leaps out as a necessity and shouldn't be kickoff remove the needs that the businesses may otherwise have but a portion of this fund and we'll discuss next week. >> so just to get it off the table anyone object to not numbered the first eligibility the rent increase. >> i say go forward. >> anyone object.

>> one contaminate and we'll be needing to provide written record if there are additional justifications for removing them you know it is good to have it so we can officially write it in terms of the commissions. >> i suggest we remove the number one, if you will, the rent increase because we're dealing with rent in the rents stabilization fund and this portion of the funding is not rent related. >> great. >> is there a republican for creating the rent stabilization fund segregate and have an offer laptop not detriment of many, many niece of businesses legacy businesses may have. >> and give a chance to the other needs to show that there are a workable tool. >> to graduate.

>> and the eligible use to provide you with a smarg borrowing of what to consider we finally lists this you've given full consideration of every possible potential landscape of what sort of fitsdz within the larger discussion of legacy business without their and/or what is a in the administrative code in prop j. >> yes. by having that list we should number things by having this list of usage we're signaling to the constituents of that legislation this is what they should apply for we should remove that ♪ part and leave it in the rent stabilization we have a rent provision by remove it from this list of eligible fund uses doesn't anybody object >> a second. >> we're editing. >> now the next 3 items would

don't say to deal with them their employee related i propose to you that ploy salaries slash expenses first of all, not expenses because expenses are arbitrary salary i suggest to you that that really only provides such a small potential raise that it is i think consequential and not. >> if i may this was to help the legacy businesses those items may not help the legacy businesses vpdz we should leave a caveat and say prop j specific

talks about salaries and per employee we may have to check back with the responsible person before we dispose of those items we ought to in my opinion, of course, my opinion to dispose of those 3 items and eliminate them subjected subject to getting approval from the city attorney. >> of course that's a good way of putting it before we doing anything through the city attorney does anyone object to removing those if we're not hunter's view if the city attorney has no objection to that. >> may i have make one other sort of what may happen if we do the city attorney may be comfortable with this is that in removing them but if a business

is able to present in a meaningful way is there a large business that could be something under other can be considered. >> yes. the last item allows for someone to come and say hey i have hundred employees and want to hire a grant writer (laughter) so, yeah so i think that again, we get to whether they're having those here's signals in a way that just teasing businesses to come here in that didn't work. >> or whether excluding them someone has a proactively make a case and like invite them or entice them to come and do that. >> i be that is appropriate because like we keep on saying otherwise people will have

unrealistic expectations about what some of the items can do for their business we don't want everybody coming up that is $0.25 an hour over and over and over again, it is better it is a take them out if they come with some amazing and compelling reasons. >> yeah. under the other. >> and consistent with the time limitations those are reconcurring competitions where the other items on the list are open a need basis and limited in time. >> if someone says i want to hire a consultant for x number of months and it falls within the $500 per fte than that is different and in fact, i'll hire a consultant not an employee. >> okay. it is under there so, yes good. >> i'm recommending an idiot to the document to delete the first 4 items under the eligible

uses does anyone object and a motion based on on edited document that dleelts those and puts in the number 3 and number 4. >> say impeding. >> and subject to the motion subject to any objection from the city attorney as to the items we have removed. >> yes. >> okay. >> i don't make motions i just - >> (laughter). it would be preferable to have a motion on the eligible uses so - >> are they taken in order start with the extension ever time and no. you of the motion page you have your motion page i don't 90 the order i have them in the application timeline so extending that approved that so, now we're going looking at

eligible uses and ineligible uses and time limits and the full program. >> so make a motion on each one or approval on. >> make a motion or affirm each step and make a motion. >> make a motion to adopted this. >> i think we need to add. >> with the edited. >> yeah. i prefer to make the motion on the edits and then a full motion on the entire program. >> so someone. >> separate program. >> move we make those edits someone make the motion. >> (laughter). >> (multiple voices). >> you guys know changes to the ineligible use commissioners; correct? or. >> i move that in the eligible

front usage list the first four items be removed from the list. >> okay. >> subject as to 2, 3, 4 and even the four of them to be checked with the as to the removal with the city attorney's office. >> okay. >> i second. >> okay. >> all in favor, say i. >> i. >> thank you your next motion will be final motion. >> well, we didn't someone should make a motion to adopt the 3 years. >> i make the motion we adopt the term up to 3 years on item 4 any business legacy business may receive business assistants grant up to 3 years. >> all in favor, say i. >> i. >> sorry man, i didn't mean to up super our call -

>> so, now at the final motion to approve those rules rules and regulations as edited. >> i move we approve the - >> it includes the thinking eligible. >> i'm sorry. >> you'll have to edited that based on the edits to the eligible. >> correct so we can not. >> destroyed number 3. >> basically be ineligible list will be debt relief. >> yes. >> we'll have to - (multiple voices). >> yes. i think that is right because you can come and make a case rent will be taken off the table and employee salary stuff you'll have to make a case. >> it will be cleaner.

>> do we have a motion to remove the items two and three under ineligible fund. >> i move we strike items two and three from the ineligible fund usage oar i'll second. >> i'll second. >> all in favor, say i. >> i. >> okay. now do we have a motion to approve this document as edited i move. >> second. >> all in favor, say i. >> i. >> okay all right. >> so i feel i ran a marathon. >> thank you, commissioners. >> all right. so we're moving on to item no. 7. >> approval approval of the minutes august 8, 2016, january 11, 2016, and october 2015 and april 2015 all

draft minutes meetings. >> do we need public comment. >> oh, any public comment on this item? item no. 7. >> seeing none, public comment is closed. commissioners do we have a motion to approve the minutes. >> i move. >> all in favor, say i. >> i. >> okay. that that motion carries 7 to zero. >> and number 8 director's report update on the small business commission and update on department and recent announcements from the mayor and new introduced policy matters and updates announcements on small business activities discussion item. >> the last meeting to provide a report for our meeting minutes so just to give you a brief information the individual we

were using for doing the transcription we're not able to use anymore and we had o a great intern alex that was helping us with the meeting minutes we've been able to keep up and have 10 not including the current meeting but 8 meeting minutes from 2015 and 3 meeting minutes from 2016 a total of 11 meeting minutes that we still need to our backlog. >> so we're working on trying to find other solutions for help but we may have to extend our 12 because we may not be able to produce the volume and then the commission heard the legislation of creating the cannabis task force and knowing this is on this

year's ballot i've asked men can to attend the task force meeting to get ahead of the potential implications we may be experiencing i do think with the business assistance center once that starts to it passes i think we will start to see a high influx of people wanting to know what is doable and not doable the task force a lieutenant planning i think we have other things we need to be giving consideration in terms of we're tight on our commissaries and commercial kitchens right now and so i think with the package of passage of this lieu alu what that will do the - we want to

be ahead of considerations before the office and you getting a handle what that maybe and with that, i know i'll leave any report at that since we have an earlier discussion today. >> great any public comment on this item? seeing none, public comment is closed. >> okay director's report i'm sorry. >> commissioner. >> number 9 commissioners report allows the point and vice president to present on small business activities and make announcements of interest. >> i have nothing to report. >> i have one. >> sorry go ahead. >> on the 12 we met with dpw ecology and discussed the dismal

state of cleanliness in our neighborhood commercial districts and that a good round table came up with potentially productive ideas i'll be reporting as we're going forward a lot of new ideas i'd like to pass that on. >> awesome okay. >> great let's make sure we get that on the agenda anyone else yeah. >> commissioner tour-sarkissian. >> i attended a sfmta board meeting and there for two items on o delores that passed unanimously they heard what we suggested and loot small businesses attended and thrilled the out another item we heard here the mission carpeting the transit 14 and i want to thank sfmta and director reiskin he tried his staff did a lot of

outreach and challenges they've done some concessions but not enough so i just want to have that topic still individual we're losing a lot of small businesses really, really rapidly so muni is better that's great but it is at the cost of small businesses and the spirit sometimes sfmta is well - as a community progresses some people have to make sacrifices two minutes for 20 years of a small business. >> i think it is less about steve and speed and more about frequency they say we are doing this to increase the speed of bus by 3 minutes don't leave me standing on the platform or the bus stop and liquor store trading two minutes for 20 years of business you know, i think the trade offs and i think they're working on the wrong

problem so i don't know how we can convey that they march to their own drums so but anyway, commissioner yee-riley you have something public comment on commissioners report seeing none, public comment is closed. last item please. item number ten new business for agenda for the commissioner discussion item. >> maybe a question i'd like to go through the process with the entrants with small businesses like maybe pare me up with a small business owner to see how it is on their end it is different from this end just i don't know if that is possible. >> yeah. i think we'll have that opportunity when we see what the first within the scope of it looks like and you know so

i don't know excuse me - getting involved in the application process where i am not i don't know who how it will go an application; right? >> the part of rules and regulations meaning not stimulated i apologize that is designed for staff to approve the grants we can do during the first process is be able to kind of walk through there is a grant filing period before we make decisions on the grants so we can start coming before you with this is what some of the grants applications look like. >> yeah. let's look at the first application and see there's a window we can ask the applicant hey if you tweak our 2:00 o'clock it too this way and that way so let's wait.

>> i have a comment about the legacy business registry i think that we've talked about the money side of things but a lot of businesses in the city legacy businesses that they want to be legacy businesses because it has some marketing advantage and a lot of them fall into that category and noticed ever hearing with those businesses it is a happy event you know happy. >> a lot of - being a small business commission we ought to think about how we maximize on that and mentioned there is a legacy business registry site and i think there are certain things that should be on the site for example, the business description certainly should be the opportunity to kind of celebrate the fact that they have they're on the registry

good for the city and good for them and the commission. >> so this is a good investment the money side is important we have to deal with 3 carefully but this is crucial from a business point of view and you have signature goodwill and. >> and the funding of registry your point with well-taken promoting the registry in the end one of the benefits is the problems. >> that's - so, now globulin this urban design hurdle and rick brought a pretty good rhythm in dealing with the applicants more importantly so did historic preservation commission and have the rents stabilization and the martha and branding. >> let's agendize the discussion after the rent

stabilization as part 3 to be a discussion of how we're going to maximize the benefits the registry. >> one item i want to piggyback on what you're doing do have a cvd in north beach i want to put this on the agendas for a future meeting some cvds are doing well and some cvds are not keeping the streets clean i share the clean streets is getting worse and areas that have cvds i contacted them their cleaning the streets and they're not cleaning the centers so it is effecting small businesses i have people don't want to come to the castro because upper market is a pigs sty i'll put that out in public and certain people are watch without calling out my name is (laughter)

i didn't i stopped short a pigs sty you call the cvds the city is supposed to be taking care of that and when i talk to the business owners they're saying what we we do i say attend our cvds meeting i'd like to agendize it some neighborhoods are it down to a path and novel is e mask - >> can i add one more thing and add an inquiry into some fees that are facilitated by the efforts street klein for example, the historic retailers have to pay for cleaning up cigarette butts and see where the funding is going firemen's

in terms of street cleaning. >> any other topics. >> may i ask for clarification on a cvd would you like a first review of the different cvds and what their mandates are and then. >> i pretty much know i helped several of them when you call some of the cvds or you're not getting the response i get a better response going on my mobile app and typing 311 that gets taken care of raw and some cvds are doing what their supposed to do just - >> you must have a different 311 than i do (laughter). >> okay. we can maybe. >> - >> all right. so where are we

at. >> public comment. >> public comment. >> seeing none, public comment is closed. >> okay final item adjournment action item. >> do we have a motion to adjourn. >> i'll move second. >> all in favor, say i. >> i. >> we're out three-=legged stool at the

>> please call the roll commissioner president buell commissioner bonilla commissioner harrison commissioner low commissioner mcdonnell