would only begin counting towards another notice period towards a full-blown suspension hearing. does that make any sense to you because a lot of this is off-line. so he found an old section of the code that doesn't necessarily jive with what the commission was doing this evening so in any event, i believe--i mean, the action that was taken tonight was approved and i'd be happy to go back and show you the efficacy of the section that he planned out and it's totally not what you would think it is so i went review that with the city attorney and had to explain why that was probably not the best actionor motion forward and this was probably going to be more effective what we're doing here, okay? >> yes, i would encourage you

to get in touch with the commission staff after the meeting to resolve any questions you might have on that. and i'm sorry for taking things out of water. >> and the thing is they are doing something about it and if they didn't come back like they didn't come back the last meeting because they didn't have the information and then they didn't come back again, then we have some recourse maybe with that.but since they are making the effort and they have the consult you know soundproof saying in order to get it right it takes a few weeks already so in order todo it right we have to give them a little leeway and they are good neighbors so we should talk to the director and get that part

cleared up but i think it sounds a good deal to me. >> that was an agenda item that we've closed we can bring it up later but are there any commissioner comments or questions or other items that were not already covered on the agenda? all right seeing none the meeting is adjourned. >> [gavel] okay. it looks like we're almost there, back on line. all right ladies and gentlemen. good morning. thank you to sf gott tv for assisting us with today's broadcast. i'm malia cohen chair of the budget and finance committee.

i want to acknowledge my colleague to the right is vice chair supervisor norman yee and to my left is katy tang. today we're clerked by john carol and lynda wong will provide technical expertise and backup. any announcements? >> yes, please silence all technical devices and cell phones. items acted upon today will appear on the april 25th board of supervisors agenda unless otherwise stated. >> thank you. call first item. >> clerk: resolution designating those agencies qualified to participant in the 2017 joint tbund raising drive for officers and employees of the city and county. >> i'm joan letter, mesky. we've reviewed all seven applications and find them all to be in compliance with the

administrative code. do you have any questions? >> that was a quick presentation. okay. thank. >> let's see. colleagues, any other questions? >> questions? none? okay. well, sthawrchg. we'll go to public comment. ladies and gentlemen, this is time for public comment where you have two minute totion speak. if anyone would like to speak, please come up. seeing none, public comment is closed. colleagues. >> i'll makes a motion to send item one to the board with recommendation. >> we can that take that without objection next item. >> clerk: resolution ret owe actively authorizing the public health department to accept a monetary gift in the amount of $80,000 from molly fleischner for the gift fund for purchase of equipment and services for

residents at laguna honda who otherwise would not be able to obtain them. >> anyone else to speak on this item? okay, we'll go to public comment. any members of the public to speak on item two? seeing none, public comment is closed. >> i'd like to move that with a positive recommendation. >> we'll take that without objection. next item. >> item three authorizes the fifth amendment between harris and associates and the city for financial consulting and reimbursement and cost allegations in conjunction with mission bay and four and six for the total term of august 15th 2016 through may 11th, 2020 with no additional cost. thank you lori shore. >> i'm barbara moore from the task force.

after exceptive consultant selection progresses in 2006, the city entered into an agreement for harris an associates for consulting and cost allegations for the mission bay project for public infrastructure in community facilities district number four and six. since the development of public infrastructure is expected to continue for the next few years on this 300-acre project we're requesting the board's approval to extend the agreement beyond 10 years with harris and associates stending that agreement to may 2020 with no additional cost to the city. >> thank you miss moi. we'll go ahead and go to public comment. public comment is open. public comment is closed. colleagues, let's see, is there any recommendations? >> i'll make a motion to send forth this item to the board with positive recommendation. >> without objection that motion passes.

next item please. >> clerk: ordinance pro appropriate $122 million in sales proceeds of city property and $322 million of proceeds from certificates of participation to fund the retirement and 2001-a and 2017-a certificates of participation. >> thank you very much. mr. updike is here to present on the item. >> thank you chair cohen. john updyke. we've submitted amended legislation. considered substantive. wield weed' request a continuance to one week on the item. if you would like, i can briefly walk through the amended legislation. but we weren't anticipating a discussion until next week. >> i agree, it's true, but you walked up mic. i wanted to acknowledge you. no problem. absolutely why don't you walk through the brief amendments then we'll take public comment

and take up a motion. >> happy to do so. so before you we've added in both the long title and in the body of the ordinance the destination property site address 1500 mission street. that's one of the more substantive of the changes. additionally, this item to be responsive to the budget an legislative analyst report. now seeks that the -- in the middle of the long title, the additional language regarding that the remaining proceeds of 321-765 would be on controllers reserve and penned both the sales of the buildings, the discretionary actions which will be coming forward to the board of supervisors and those are the approval of a general plan amendment and approval of a planning code amendment.

findings of sikh wit cequa as well as the agreement between the city and related california or llc as noted in the title. really, this -- those are the amendments here and in the body we've add the address 1 1500 mission and happy to answer any questions on that from a process standpoint, if you have any. >> i want to make sure that the amendment language before us actually allows us to vote on the $321 million an $321 million, and $122 million appropriations separately. is that how you presented it? no. we'll turn to the analyst. >> as i understand it, this item is going to be continue, so i

won't review all the details of the report. let me make a comment on this legislation. this amended legislation just submitted. mr. jup dyke says this address the concerns of the budget analyst. this do not any way shape or form address the budget of the legislative analyst. this doses not -- there are two major concerns in our report. one is that will after obtaining an additional 154,000 and that number comes from mr. updyke of additional new space after getting this new building after selling the other buildings, there will be 154,000 more square feet of space exd for years, members of the board of supervisor have expressed serious concerns about the fact that the city leases over 2 million -- i don't know what it million is now, it was over

2 million square feet of space spais in the civic center and rightfully so, the members say we want a new building to reduce our lease spaces. this legislation that you just received in know way shape or form assures the board of supervisors that one square feet of space will be leased. there is no a stheurnses there will be any reduction in lease space and no assurances to the board of supervisors that there will be any lease cost savings to the city number one. number two, it doesn't expression the concerns in our report that when the board of supervisors -- and by the way, you were advised by departments in 2014 that there would be reduction in lease space and you were also advised that the furniture fixtures and equipment and the technology and the moving costs were going to be approximately $12 million.

now they have increased by 139% to $29.4 million. this legislation didn't address that at all. all this legislation does is address the points we made that plier to the board of supervisors approving this legislation, there are certain other actions that have to be taken. this does address that. in terms of the two major concerns to the city, any cost savings to the city, it no way shape or form addresses our concerns. >> thank you very much for the preview for next week. we'll continue the conversation next week. i want to pivot and give the deputy city attorney and opportunity to speak as well. >> just briefly, deputy city attorney to the chair to the committee. one of the motivations for the amendments proposed by mr. updyke today is the previous failure to include the address

the 1500 mission street address. we're thankful that mr. updyke dealt with that in the amendments and given the notice issues, we believe continuance to next week may be appropriate. and the committee feels like it wants to divide the 122 from the 321 or any other potential changes or amendments, the committee is free to do so at that time. >> thank you very much for the clarification. we'll take public comment on this item. any members of the public that want to speak on item four, please come up. seeing none, public comment is closed. supervisor tang. >> thank you, i know we're going to have i more row burst conversation at the next meeting, but i want -- before we get there address mr. rose's first concern which is regarding the amount of lease space it from our other city departments in civic center and the increase we'll get. can you speak to that since you

do have the bird bird's-eye view over all the lease space here? >> sure. supervisor tang. we have either sent or will be sent shortly from the board to all the board of supervisors a report on the lease portfolio can have the city. also diving in a little deeper to the civic center lease hold portfolio which has been reduced significantly. and pivoted to better protect us from future market fluctuations. we're happy to speak to that. at the time this comes forward, happy to address the other issues addressed by budget and legislative analyst at the time this comes forward as well as in may when the board will have the opportunity to take other divining actions on this project. so this is not intended to give short shrift to those concerns.

we fully intend to address them, just not today. >> just a minute mr. rose, supervisor tang. i think at the next hearing, i would like to hear about how with the increase of the 140,000 square feet of space after this transaction occurs, what are we doing with that additional space? it may that be the dments that are going if there need that additional space. maybe not. if you could clarify the whole kind of what is going on, that would be great. >> mr. rose. >> yes, madam chair and members of the committee, supervisor tang, that is what i was going to say. mr. updyke made reference to the fact there has been reduction in lease space. i'm not talking about any reduction in lease space that has been made. i'm talking about a new building that has, as you stated, 154,000 -- results in 154,000

net additional square feet. does the city get any reduction in lease space specifically as a result that have new building? you know, i used to rent -- we used to live in park merced, my wife and i and two daughters. we accumulated enough money to purchase a house. guess what, we terminated the lease where we were living and we moved into the new house. i would like to know specifically as a result of this 154,000 square feet of lease space, will the city show us in writing what reduced lease savings -- what leases are going to be terminated a as a result of this new building? consistent with what the board of supervisors was previously advised in 2014. if we're talking about in the future, right now, the mayor has

indicated that we're in a period now where we have to look out for our finances. because of our projected short false and so forth. if the controller mentioned something we could be facing maybe a downturn in the near future. we shouldn't be talking, in my professional judgment, about new city employees to occupy new space. we should be talking about a reduction in city lease costs as a result of gaining 154,000 square feet of space. this is nothing new. this is the departments who previously advised the board of supervisors, if you do this deal at 12500 mission street, that's what you would get. and so far, that's what we've not seen. all right, let's save some pft fire for next week. mr. updyke, i think you heard

from this committee what weed a like to see and hear in the presentation next week. ladies and gentlemen, what i think i want to do is although you mentioned the amendments today, i think we'll take them all um and deal with everything next week. i'd love to have a motion -- what day is the budget committee next week? >> next budget hearing date for next week is april 20th. >> april 20th -- >> sorry april 20th. >> april 20th 2017 is the next budget committee. may i have a motion to continue. >> i'll make a motion to continue item 2. >> deputy city attorney. >> i apologize for interrupting. deputy city attorney andrew shen. to deal with the notice issues, at a minimum the committee should -- modify it to the 1500 mission street address.

>> supervisor tang do you have any other comments? >> i'll make the motion to adopt the 1500 mission street address. >> supervisor you were speaking to that. >> i'll go ahead and make a motion to continue. >> so we have a notion amend which we'll take without objection and we have a motion to continue next week to april 20th and we'll take that also without objection. >> i apologize. just to clarify, i think at the clerk as office request they'd like to see an amendment to reference the address and section two as well. so instead of potential office building development, it would say 1500 mission street development. >> through the chair, i'll rescind my motion for the amendment earlier. just restate in the long title, it will include 1500 mission street on page one.

on page two section two line 24 add 1500 mission street. >> we'll take that without objection. thank you. >> thank you. >> . p. >> do we still have to make a motion to amend? >> yes. >> i'll make a moment to continue as amended to our april 20th meeting. >> thank you very much. all right, next item, please. >> item number five is an ordinance amending ordinance 26610 authorizing the execution and delivery of taxable certificates of participation for hope sf in an aggregate principle amount not to exceed $38 million. >> thank you. next figure is representative from the controller's office. welcome. >> good morning supervisors jamie kurben. as we authorize the certificates

of participation to finance the hope sf program, portions of the three phase project for the housing development in the bay view hunter's point neighborhood to replace four publicly-owned housing developments in the city. a reminder, the board of supervisors a domentded ordinance number 266-10 in october 2010 which authorizes the certificates to finance the hope sf program and approve use of commercial paper as a source of interim financing. the legislation before you a certifies the certificates to in part replace the commercial paper to datened finance the completion of certain remaining capital improvements. the ordinance also authorizes the execution and delivery of a revised final statement and revised statement which has been updated to reflect current city information. it's anticipated that four

buildings will collectively serve as collateral for the certificates and secure the repayment obligations under the project lease. under current market conditions today, the office of public finance expects to issue approximately $29 million of taxable certificates with a conservative interest rate of 5.48% which results in an average annual debt service of $1.9 million over a 30 year term. i'm available to answer any questions about the financing and i also have amy chan here to answer any project-related questions. >> thank you. i appreciate that. for clarification, the city expects to issue and deliver in june of 2017, is that right? >> to sell the certificates in may and possibly close in late may, early june. >> thank you. we'll go to public comment. seeing none public comment is closed. colleagues, is there a recommendation?

>> i'll make a recommendation to send item five to the full board with positive recommendation. >> without objection that motion passes. thank you. next item. >> agenda item number six is a resolution approving the norm of and authorization of an official statement with the execution and delivery of t.s.x. certificates ever participation not to exceed 508al million dollars for the george r. moscone cone center and expansion project. >> thank you. >> good morning again jamie kurben. we authorize the execution and delivery of a final statement and approves the official statement as it relates to the certificates of participation for the moscone convention center project. as a rea reminder, the board of supervisors approved 26-13 in 2013 which authorizes certificates and the use of

commercial paper as an interim financing source in an amount not to exceed $508 million. the certificates will be use in part to repay the commercial paper issued to date as well as finance the remaining portions of the projects. the project is currently in the second phase and will increase the overall square footage of moscone north and south by 371,000 gross square feet through the construction of a new three storey building, a new bridge across hauer street and a bridge for internal access queen moscone north and south for convention uses. it's anticipated that portions of the moscone property itself will serve as collateral for the certificates to secure the city's repayment obligations under the project lease. again, under current market conditions, the office of public

finance expects to issue -- with a rate of 4.3% which results in average annual $28 million over 30-year termed. i'd like to note in 2013 the moscone financial district was established to secure that two-thirds of the certificates will be paid from assessments levied on hotel businesses. a portion of the moscone assessments will be dedicated to the certificates. i'm available to answer questions on the financing and brought you here the project manager on the moscone project to answer any questions. >> do you have any questions? all right, we'll go to public comment. any member of the public feel free to speak. seeing none, public comment is closed. matter is in the hands of the

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