issuances, 78% of the funding we have spent. and in citywide parks and programs, we have spend 50%, a much smaller percentage. however, it's a much smaller portion of the first and second issuances, and we are focussing on that in the third issuance. this is a line graph of our spending over time projection. as you can see, once we have cash in hand, by the end of the summer, we are projecting a large increase in spending due to the construction of our final neighborhood parks projects. we plan to spend all bond funds by the end of 2020. say program schedule overview of the neighborhood parks program. the green bars on this schedule are when construction is going to commence. and we have quite a few projects ready to break ground this year, like rossi, garfield, george

christopher, margaret hayward, and willie woo woo wong. complete by 2019 and all the citywide programs los angeles completed by the end of 2020. with the passage of proposition b in 2016, city charter was revised. annual capital plan, and bond funding is a critical component to the successful completion of our goals. so, what these bond funds will do is make progress on a few of our deferred maintenance goals. we have a plan to complete the renovation of all our rec park swimming pools. we will complete renovation of all but five rec centers. and with the funding from the let's play sf initiative, make

significant progress renovating -- and it is an unfavorable bidding environment. bids coming back 20 to 40% above engineers' estimate, we are looking at a bid reserve to ensure we can deliver the scope as promised in the bond. that's it, i want to thank you, also thank michelle traviti, who may have some comments and i am available for questions as well as our acting capital manager and program manager. thanks. >> supervisor yee: thank you, any questions. no questions. could i have the b.l.a. -- are you presenting -- >> thanks for hearing these items, i'm from the controllers office of public finance. briefly summarize and detail some of the financial impacts of

the resolutions. again, for item number 7 and november 2014 voters approved proposition a, $500 million for infrastructure, repairs and other transportation improvement projects. this resolution authorizes the sale and issuance of the second of the bonds authorized, not to exceed $177 million. item 8, ordinance appropriating the proceeds from the bond sale and 9, november 2012, proposition b approved by the city's voters authorizing $195 million in general obligation bonds to finance park and recreation facility improvements, and third issuance of bonds in the program, not to exceed $76,710,000. and 10 appropriating the proceeds from the bond sale just described.

based on the total amount for both of these programs of $251.3 million, using a conservative 3.99 estimated interest rate, we anticipate the annual debt service on these bonds that we will sell to be approximately $18.7 million. over the 20-year life of the bonds, result in a total of 361 million in debt service of which 110,690,000 -- 110 million towards interest on the bonds. annual impact, 7.97 per $100,000 of assessed property value. so for typical, well, maybe not typical, properties assessed at $600,000, that would be about $47.29 impact on property taxes. the city charter imposed debt limit on general obligation bonds is 3% of the total assessed value of the property in the city.

the city's outstanding general obligation bonds equal approximately .88%, if the board of supervisors were to approve the issuance, and the debt ratio increased by .1%, in the limit. additional, the ten-year capital plan, places a policy constraint to ensure property tax rates which fund the city's bond program would not be increased above 2006 levels of 12.01 cents, and proposed sale of these bonds is still consistent with the policy, and we are expecting to price and close the sale of these bonds in february. we have also submitted forms of the financing documents, including the notice of sale, notice of intention to sell,

preliminary official statement for the board's approval and review, any questions regarding financing, i can respond to those. >> no questions. thank you very much for the presentation, and miss campbell, presentation? >> in terms of the use of the appropriations of the transportation bonds, we do have a summary on page 16 of our report and details by project in the attachment beginning on page 19, in terms of the use of the park bonds, and how they would be allocated to projects. we have a summary of that on page 27 in the report. and sort of reiterating what mr. traveti said about the impact to the city, for the issuance of $175 million in transportation bonds, total debt service, $251 million. for issuance of 76 in parks

bonds, over 20 years, 110 million. annual debt service, $18 million increased annual debt service to the city per year, and then the impact on a property owner with assessed value, 600,000, would be $47 per year. and this would still be within the city's debt limit of 3% of assessed value. we recommend approval of all the legislation. >> supervisor yee: public comment? seeing none, closed. >> supervisor tang: motion for items 7-10, positive recommendation for the full board. >> supervisor yee: passes. item 11. >> clerk: 11, resolution approving and authorizing,

located property seven hewn to 730 stanyan street, mcdonald's corporation, for 15.5 million. >> office of president london breed. we have the real estate department and staff here to present on the technical details of this particular purchase and sale agreement, but i wanted to take this opportunity to express president breed's perspective on how incredibly excited we are to be at the point we are with mcdonald's and the city to acquire this particular property for 100% affordable housing. this particular property has been a challenge in the community. and the ability for the city to step in and acquire it to build 100% affordable housing represents a significant opportunity for the city and the upper haight community in

particular. this relates to the purchase and accusation and under what terms the city is acquiring it for, we intend to work very collaboratively with the community and the city to, after this acquisition, hopefully through the board of supervisors, to do the design work and designing the affordable program for this particular site. so, i'm here to answer any questions you may have, but turn it over to john to talk about the individual technical details of this purchase and sale agreement. on behalf of president breed, we are very happy to be at this point and the ability to purchase this site and 100% affordable housing and ask the committee support this item today. >> supervisor yee: thank you, john updike from real estate. >> thank you, chair yee. supervisor tang, john updike, director of real estate. we share president breed's,

mayor breed's excitement about this site. and frankly, most acquisitions are not a partnership, but i have to say this was a collaborative effort with the seller of the mcdonald's corporation of this property. so, before you today is the purchase of 700 to 730, a couple different addresses, stanyan street, from mcdonald's corporation as the underlying owner of the property. the purchase price is $15.5 million. that is significantly less than the approved appraised value, which ranged between 18.5 and $19.7 million. we have been doing a lot of due diligence on this property since summer, collaboration with consultant team, so understand all of the remediation risks on the site, to complete the evaluation analysis which is

done, to have the general plan referral and conformity issued in the board file. a note it was not yet ready while the budget of legislative analyst has been doing their report. but it was received and placed into the file. and working through the relocation of the existing operator who is a franchisee on the site. and so the budget legislative analyst report details the costs. they are estimates. but they are very conservative, high end estimates, being as transparent as possible of all the possible implications downstream, post purchase. so, we do have some modest remediation, but we do not see any show stoppers in the initial geo technical report that came back. so, that was very encouraging. the property does have a use of both in history, a dry cleaning operation and a gas station. so, we are very thorough in our

investigation. secondly, we have had our consultants work on the relocation benefit package, and a sense of that total scope and that is also included in the report here. even with those costs, added on to the purchase price, we are still significantly under the appraised value total cost to acquire this, just a fantastic agreement for the city. this is a, about a three quarter of an acre site of land bounded by three streets, creating lots of excitement, because that gives us lots of design alternatives going forward and the restaurant itself is a little under 3500 square feet. should this be approved by the board, our next step is to complete our escrow instructions, complete a notice that has to go out to the existing occupant, 90-day notice for them to wind down their operations. so that we can close on the property and take possession to

the property after the relocation, so we will not be in the business of being the landlord of the mcdonald's, the operations will cease and then we will take title. that will happen likely in the spring of this year and then by summer of this year we will accomplish the demolition of the improvement, a condition of the contract, not unusual when it's a corporate identity issue on a purchase, it's pretty typical removal of that identity is a condition of a sale. i believe that addresses most of the issues from our perspective. joined by colleagues at mayor's office, housing, community development who may have further info and happy to answer your questions. >> supervisor yee: just curious, mr. updike. in regards to the relocation piece, who is -- what are we relocating? relocating the business or -- >> so, yes.

because -- chair yee, because the property is being acquired with federal funds, the uniform relocation act, federal law, that provides how one provides relocation benefit payments to displaced occupants, business operators takes hold here. so, we don't normally have these conversations, it's really either in the use of eminent domain, or the use of federal or certain state funds. certain funds trigger that requirement. otherwise we do not have it as a local policy. what that means is someone who is displaced and has to move to a new location is afforded certain benefits to cover those costs of relocation. those are capped under certain regulations in certain categories. in this case, the current operator has a number ever other franchises. and so they will most likely take their fixtures, furnishings and equipment and relocate them

into potentially multiple locations, existing locations, so it's not like this will be a current restaurant that will open up at location b. it's more a case of the operations get wound down at the current location and those items that are personal to the business operator will move to existing franchises throughout the bay area. that is at the discretion of the person who is displaced. so, we just simply have a financial obligation to cover some of those costs because of the acquisition. i hope that helps. >> supervisor yee: basically automatic benefit. >> yes. >> supervisor yee: and we have no say so in this. even though -- >> that is correct. yes. federal law is very clear about that. >> supervisor yee: ok. it is a little odd. he's closing down business and not opening up a new business, but he's getting a benefit. also curious about, it's a good

deal as you mentioned, and sometimes i wonder why are we getting such a good deal. is there -- are there other agreements with this particular entity that's not -- that's outside of this sale? >> the question is? >> i'm always skeptical, and here is a good deal, on paper, and sales, what we are seeing. any side deals where maybe he's getting something else that's outside of the sale? that's benefitting the entity? >> no, not to our knowledge. no. this is, i think, really a question of a corporate entity who was prepared to dispose of the asset. public entity coming along with an interest in that asset.

good timing, all the way around, and it just makes sense for both sides and i think that's why we have such a favorable resolution here. >> supervisor yee: good enough. we have a b.l.a. report. miss cam pel. -- miss campbell. >> yes, as we had moved on to another item, apologize. based on what page of this -- anyway, the, in our report we show a budget of 16.1 million for the proposed purchase, not only the purchase price but closing costs, mediation, relocation costs and demolition of the existing building. the funding sources that we were provided showed 12 million for cbdg funds and additional 4 million from the inclusionary housing fund. if there are additional funds

needed to close this purchase, our understanding is there are funds available in the inclusionary housing fund. the only other point we would like to make, this does come in under the appraised value and we recommend approval. >> okay. thank you very much. any public comments on this item, seeing none, public comments are now closed. motion. >> supervisor tang: all right. thank you very much, we are excited about this project and will make a motion to move forward item 11 with positive recommendation to the full board. >> supervisor yee: no objection, motion passes. probably the easiest one we have had for a while. madam clerk, item number 12. >> clerk: ordinance amending the health code, license fee for cannabis smoking consumption permit.

>> good morning, supervisor yee and tang, director of environmental health. san francisco health code article 8a to the consumption permit, $1,200 annual permit fee for cannabis smoking conception. this fee was not included in the flurry of activity that occurred during the time to complete the cannabis rules. the permit allows the permitee to provide pre-packaged cannabis products or cannabis products that require heating or reheating, in addition to smoking consumption. the fee would cover inspection that would include a sanitation inspection, storage and equipment, for cannabis products and consumption, and testing and review of ventilation system operation to meet the regulations. >> supervisor yee: that's it?

>> that's it. >> supervisor yee: wow, i like that. >> if you have questions -- >> supervisor yee: miss campbell. >> board of supervisors has previously approved these for consumption of cannabis, add additional $200 to the fee to allow for smoking on-site. this is for the inspection of ventilation systems and we consider approval to be a policy matter for the board. >> supervisor yee: thank you very much. any public comments on this item? seeing none, public comments closed. motion, please. >> supervisor tang: motion to send item 12 to the full board with positive recommendation. >> supervisor yee: with no objection, motion passes. thank you very much, stephanie. madam clerk, item number, where are we, 13. >> clerk: 13. appropriating approximately 11 million for funding received for the geneva car barn and

powerhouse capital improvements, 2017-18. >> glad to be back up here. geneva car barn and powerhouse phase one project. last month, december 2017, board of supervisors adopted five resolutions related to this project, including two in particular i want to talk about today. funding agreement between the city and the community arts stablization trust, and affiliate of the stablization trust. supplemental appropriation is trailing resignation and what it does, allows the city to be reimbursed for project expenses as outlined in the board adopted development services agreement. so, in total, phase one of this project costs $13.99 million. and the best way to think about it, two sources of funding.

city funding staying with recreation and park, 2.94 million, a mix of geo bond and general fund, and it's excluded from the tax credit financing deal. going to pay for direct expenses at the powerhouse. supplemental, the other portion, $11 million of powerhouse reimbursement revenue. so, three steps in a simplified manner how the tax credit financing takes place. last month the board of supervisors approved a funding agreement, rec park is going to give to cast $6.2 million, 2.7 million of already appropriated general fund and $3 million grant appropriation. cast powerhouse comes in, provide $1 million, cast forms what's known as a qualified active low income community business for tax credit

financing purpose, and in short, the financing deal generates $3.85 million, both of historic reservation and new market tax credits in net of financing costs. and third, the board of supervisors also approved a cast powerhouse llc supervises agreement. they pay for the city's construction costs and expenses for the powerhouse renovation, so the supplemental allows us to get reimbursed for those expenses. happy to have, answer any questions you might have. >> supervisor yee: no questions to this complicated formula. i assure you that both of us understand it. >> i could tell you, i want to thank severin campbell, theresa kau, nelson magrabang, i'm missing people, but we had a lot of help along the way to do

this. >> supervisor yee: miss campbell. a report? >> page 41 outlines how the funds would work. the board of supervisors has previously proved the funding agreement, services agreement that sets the table for this action. the board needs to be appropriated $11 million to receive reimbursement from cast for their work, cost of the powerhouse. sources of funds do include $6.2 million in funds granted by the city to cast, this was part of the funding agreement previously approved by the board, and then it would also include $1 million contribution from cast, and proceeds of the federal tax credit to total $11 million. we recommend approval. >> supervisor yee: any public comments on this item? >> good morning, supervisor, i'm

here representing supervisor safai, district 11. this project is a culmination of over 20 years of neighborhood activism to restore vital public space and bring art programming to our district. neighbors like in james and dan lever had a greater vision for this building. situated at an area that is undergoing economic revitalization with improvements to the balboa park bart station, additions of bicycle infrastructure, 100 units of 100% affordable housing is being built across the street that includes supportive housing for homeless housing, and now we will have one of the premier arts and cultural centers in the southern part of san francisco.

so, supervisor safai and the entire neighborhood of district 11 thanks the city for its support. we would also like to especially thank general manager phil ginsberg, assembly member phil ting, dan weaver and the friends of the geneva car barn, steven oliver, nicole rio, john olavos, and mayor lee had regularly visited this neighborhood and this was a project that he had also supported. thank you. >> supervisor yee: ok. any other public comments on this? seeing none, public comments are closed, motion, please. >> supervisor tang: motion to send item 13 to the full board with positive recommendation. >> supervisor yee: any objection, motion passes. item 14. >> clerk: resolution approving

emergency declaration of the public utilities commission for the repair and servicing of the tesla treatment facility flywheel uninterruptable power supply units, not to exceed 500,000. >> good morning. i'm here to request approval of emergency declaration for repair and servicing of our tesla treatment facility. that facility provides disinfection of the hetch hetchy water supply with ultraviolet light. this treatment process is a critical part of the health of the water supply. tesla facility is relatively new and one of the few large scale applications of this disinfections in the u.s. it must run continuously.

we have back-up power supplies in the form of diesel generators and the flywheel units. the flywheel units spin continuously, to supply power immediately if there was an outage and continue the operation while the diesel generators were online. last april we had a failure of one of the flywheel units. we spent months to fix it and it was unsuccessful. in september, brought in a manufacturers representative, he inspected it and said it was a safety issue, and recommended we shut all three units down. in october, declared emergency for immediate repair. issue revised declaration in december clarifying it should be under chapter six rather than chapter 21. very specialized work, only able to identify two contractors who could potentially perform the

work, and we are contracting with holt of california to do the work. this is a situation where we have a new facility with new unfamiliar technology. we had a maintenance contract when it began operating in 2011 but the contract lapsed. due to staff retirements, new contract has not and advertised. and frankly, we failed to understand the maintenance of this type of facility was extremely critical. that was a failure on our part. we now view getting a new maintenance contract in place as the highest priority and we will be reviewing all of our recently completed projects to identify and prioritize any other mission critical items to avoid being in this position again. i'm happy to answer any questions. >> supervisor yee: obvious question, how was it that you failed, not you personally, but p.u.c. failed to recognize you needed maintenance for this? >> it's my organization, and i

take full responsibility for it. i think, if i could construct a little bit, when we thought about the facility, the really new technology is the ultraviolet treatment system and so we have had constant visits from calgon, they had not built anything at this scale before then. so we paid incredibly close attention to that piece of it, that's where the rubber ultimately meets the road. i think in doing so, we failed to grasp how critical it was if the flywheels went down. first there is a loss of power, but we have since learned that actually the way the control system is wired up, that those units actually also provide conditioning to the power supply. we say conditioning, when you get electrical supply, there are peaks and valleys in it and the system runs better if you can eliminate those and smooth it out. so, the way it's put together,

we did not understand until we turned them off, that it provided that function as well. so, these have turned out to be much more critical than we thought they were in the operation. that was something that we have learned that lesson now, and that's why i said we are going to go to all of our other new facilities we have built and dig into them to look for other places, fairly routine pieces, and make sure that they are not going to trip us up in the future. >> supervisor yee: ok. don't get tripped up, then. >> we will not. >> supervisor yee: miss campbell. the b.l.a. report. >> based on the budget provided to us but p.u.c. for the emergency works, we do recommend amending to reduce the estimated cost from 500,000 to 322,000, and then it has been discussed already, because there were

expired maintenance contracts, contracts have been in place, we believe this emergency could have been avoidable, we consider it to be a policy consideration for the board of supervisors. >> supervisor yee: ok. good, any public comments on this item? ok, motion as to amend and so forth? >> supervisor tang: i'll make a motion to that effect. >> supervisor yee: with the -- are you ok with the amendment? >> yes, we find the amendment amendable. >> supervisor tang: i will make the amendment, and send forth for recommendation. >> supervisor yee: motion passes. last item, 15. >> clerk: 15, consider release of reserved funds, department of homelessness and supportive housing in the amount of

1.7 million for the furniture, fixtures and equipment for the 440 turk street project. >> today, we are going to have a fantastic presentation on this item. go ahead. >> thank you very much. good afternoon, supervisors, department of homelessness and supportive housing here to discuss with you the 440 turk street proposed projects. as you know from previous meetings, this will serve as our headquarters, which will house most of our 115 staff members. it will be open monday through friday from 8:00 a.m. to 8:00 p.m. it will also serve as what we call an access point, which is a location where homeless individuals can come into our offices, be assessed and entered into our data system and then referred to the appropriate services. we expect to serve about 50 clients a day, both at the access point, as well as clients coming in for general

appointments or to speak to our staff. again, this facility will be open, the access point open monday through friday, 8:00 a.m. to 8:00 p.m. we spent a considerable amount of time getting buy-in from the community. you will see in the packet community safety and security plan which we have signed and committed to helping work with the neighborhood to make the neighborhoods safe for people who live there, businesses, for our staff and our clients. the estimated budget for this project is $12.86 million. the purchase cost price will be 5 million. rehab 6.1 million. and furniture, fixtures and equipment, 1.7, actually, modified down to approximately 1.3. sources for the funds, approximately $7 million will be coming from the general public health geo bonds.

first issuance, and then a future issuance, and $5.8 million will come from the general fund approximately 63% of the project costs will be funded through the bonds. ok. as you know, on tuesday, the board approved a reallocation of funds that were originally budgeted to pay for leasing and other costs related to 9th street where we were originally planning to have our offices. that money has been reallocated on tuesday, as approved by the board. we are requesting the budget committee release $1.7 million for furniture, fixtures and equipment for 440 turk project. however, a slightly lower rate based on new information we

received on costs. funding will be used for work station, i.t. wiring, computers, telephones, furniture and equipment for the access points, and they are based on cost for other city offices, projects and client services space, and that is our presentation on the site. >> supervisor yee: ok, thank you very much. could we have the b.l.a. report, miss campbell. >> page 51 of our report shows our recommendation as he said, we are recommending a reduction of $390,000 from 1.7 million, to 1.3 million. this is based on updated information that we were provided on the cost and we do recommend release of $1.3 million on reserve. >> supervisor yee: thank you. ok. any public comments at this point? i think there's -- >> one more point, supervisor, before we move to public

comments. just wanted to point out that the plan we originally submitted to the board would have taken care of all of our office space needs, including the hud team and the street team and resource center. and we will be coming back to you with proposal for new office space. we still have a few years right now, 101 grove, or 50 ivy street behind 101 grove. eventually that building needs to be vacated and we will need additional space for the department. i want to make sure everyone is clear that this does not meet 100% of our office space needs but we are pleased to be moving forward in this direction but will be back in a year or so with additional requests for office space. thank you very much. >> thank you. >> good morning, supervisors and

the rest of the public and employees of the city of san francisco. i represent the local homeless coordinating board, which tends to represent the citizens of san francisco. those being housed and those that are unhoused. so, we just feel this is a time to get our battle going, and this is a battle. it's a battle on the streets every day to get our folks into some type of housing. and you know, i have much military experience and you really can't fight a battle without a headquarters. so, we are hoping to get this headquarters staffed, rigged up and everything. you know, it's not a good situation to have the homeless department homeless and basically that's where we are, we are all around right now. we would like to see as soon as possible every day that goes by is another day that people aren't being served as well as they could be, and you all know in your department that you have worked in the jobs you work, how it's a little more difficult running a business or operational city service not knowing where you are going to

be from day-to-day, not being in your own home. so when these employees of this department, about 115, are able to go into their own place and know they are not moved around again, it makes them have more efficient day and that's what we need on the streets. so, i would really advocate for you to consider this reallocation. thank you. >> supervisor yee: thank you. any other public comments, none, public comments now closed. and have a motion. >> supervisor tang: i have a motion, i think we would need to amend the dollar amount per the budget analyst recommendation and make a motion to release the reserve funds. >> supervisor yee: ok. without any objection, amended motion -- >> supervisor tang: and file the hearing. >> supervisor yee: will pass. madam clerk, anything else. >> clerk: no further business. >> supervisor yee: then i will keep on talking, no, meeting is adjourned.

>> president walton: good evening. we're going to call this january 9, regular board meeting to order. roll call, please. >> supervisor kim: here. >> commissioner haney: here. >> commissioner norton: here. >> commissioner sanchez: here. >> commissioner murase: here. >> president walton: here. thank you. please join us in the pledge of allegiance.