>> good morning. welcome to the budget and finance committee meeting for january 25th, and i guess i want to thank sfgov tv, michael and jim, for recording today's meeting, and making it available to the public and also good morning to our clerk, linda wong. announcements? >> silence all cell phones, completed speaker cards and copies of documents submitted to the clerk. item acted upon appear on february 6th, board of supervisors agenda unless others

stated. >> number one. >> authorizing the police department to accept and expand a grant in amount of 166,000 from the department of homeland security federal emergency management agency for the safe boat refurbishment and service life extension program, september 1, 2017, through august 31, 2020. >> and chair cohen will be here in a moment, since i don't have notes in front of me, i won't know who is speaking for which item. as you come up, please announce yourself. >> good morning, patrick young, the grants manager for the san francisco police department. i'm here to request recommendation from the budget and finance committee for our sf expend resolution for the 2017

grant security award program for the federal bureau of management agency. grant funds will be used to refurbish and overhaul our 31-foot safe boat patrol vessel. the project includes the installation of a new collar system, as well as updating the electrical wiring and replacing some of the other safety equipment on the vessel. the standard service life of a patrol vessel is ten years and with the grant we are hoping to extend the service life of our safe boat by additional 10 to 15 years. our safe boat vessel is our only, the only towable vessel in our inventory with 3d sonar equipment and radiation equipment.

sfpd marine unit is the primary maritime law enforcement agency for the city and county of san francisco, and it's responsible for securing the 64 square miles of san francisco waterways, as well as securing the port of san francisco properties which includes ferry and cruise ship terminals. this grant will extend the useful life of our safe boat vessel and it will provide our marine unit with updated equipment to safeguard our waterways and port infrastructure. and if you have any questions, i'll be happy to answer them. >> ok. thank you for your presentation, any questions? seeing none, any public comments on this item n? seeing none, public comment is now closed. can i have a motion for this very important item to protect our city? >> i'll make a motion to send

forth item one with positive recommendation. >> passes, thank you very much. >> resolution, retroactively for the department of public health to accept a grant approximately 300,000, participate in a program, california department of public health and oral health program, proposition 56, january 1, 2018, through june 30, 2018. >> department of health. >> hi, my name is margaret fisher, i represent the m.c.h. department section of the department of public health. i'm the oral health consultant and the child health and disability prevention program. approve the accept and expend for the grant of 308,000 -- sorry, exact amount.

$879 for the first fiscal year, it's a five-year grant, totaling 1.500000 -- $1,500,000. sorry. with this grant we hope to create and support the infrastructure for local oral health program that we have been developing for the past four years. some of you were here when we presented the strategic plan for children's oral health in san francisco. with this, these funds, we will be able to hire for a category 18 grant funded only position and epidemologist, to help us describe the oral health status of children and young adults in san francisco. the other portion of this fund used for express hire for a health educator trainee for

three years, to help promote the oral health program in san francisco. we also hope to support our three oral health task forces in the high risk neighborhoods in the mission, in district ten, and also in chinatown, who have the highest rate of dental decay. our children have up to 60%, kinders have dental decay in the high risk areas and we are hoping to bring it down to the national healthy people's average of 30% or less. so, we are targeting health disparity among the children of color and low income children in san francisco. if there's any questions, i'm happy to answer. >> ok. thank you, any questions? seeing none, glad you are going to be talking in those two areas, 60% sounds like a lot. so -- hopefully we'll get it back down to the normal and maybe drop below the normal, the

30. any public comments on this item? seeing none, public comment is now closed. can i have a motion, please? >> make a motion to send forth item two to full board with positive recommendation. >> passes, thank you very much. >> resolution approving authorizing agreement for conveyance and acceptance of interest in real property from state of california department of general services, easements for subservice tiebacks, and property at 100 armory street. >> all right. this bundle of money coming. >> right-of-way manager, item before you today is the acquisition of some easements from the state of california national guard armory for the sfpc westside recycled water project. if you see on the graphic in

front of you there, the project proposes 1.6 million gallons of recycled water, to serve golden gate national park, lincoln gate golf course and a lot of the presidio properties, to save drinking water for drinking purposes instead of watering plants. the project is completely in the ocean side treatment plant and the national guard armory -- one more, so if you look at the graphic, the next graphic here, this plat map, the national guard armory sits like a castle above the ocean side treatment plant looking down on the village there. so, this is the graphic here shows that we have mostly hillside and terraced hillside, so it's -- the easements are completely within the ocean side treatment plant but are technically on the national guard armory property.

and this next graphic just kind of shows you the areas that we are acquiring, a building easement, a permanent maintenance area, a tieback to go back into the hillside to support the walls and then a temporary staging area. and then the last graphic shows, or picture shows what it looks like from inside the ocean side treatment plant. so the national guard armory building would be on the far left top corner there, looking down on the building, or looking down on the ocean side treatment plant, and then you'll see here the hillside and the terraced kind of side, excuse me, the hillside terrace affected. you'll see in the photo there. those green structures in the foreground on the right-hand side will all come out and the westside recycled facility will go in that footprint there. any questions, please ask. thank you. >> supervisor tang. >> thank you very much. i'm just wondering, i know the

item before us is the real property agreement, but we have been in conversation with public works how to irrigate sunset boulevard, while not using drinking water. one of the issues, no way to obtain recycled water. just wondering, would this help with that, sunset boulevard issue at all or do we need to create a whole separate pipeline for that? >> well, again, i'm not the project manager so probably not the best person to answer the question, but this project is again i think to facilitate golden gate park and other areas, we also have a san francisco ground water program where we are putting some well sites in golden gate park. there must be some way to facilitate, i think, the request that you are making here. ok. >> hi, it would require a separate pipeline. what we can do, ask the project manager to see what it would take to run a pipeline up to

sunset. i can send your office that info. >> that would be great, thank you. >> okay. any public comments on this item? seek none, public comments are closed. i feel like this is one of the more exciting projects that i could really get behind, puc, and it's all the water that we are going to save in the long run is going to be a really bonus for our system that is giving us our freshwater to drink and i like your suggestion, supervisor tang, that we expand it to even other areas, and it was -- fortunate to be out there in the ground breaking last week, was it last week, yeah, it was pretty exciting. i mean -- most exciting part of it was everybody -- and not --

sort of joking but not joking that this particular project is trying to hit some of the bigger areas where it would be the simplest to actually utilize the recycled water. maybe in the future, hopefully not too far future, that we start considering whether or not, and along the line of supervisor tang's thinking, can we actually expand it in such a way that even homeowners at some point will be -- will have access to this, so that -- because i realize that when i stop watering outside, i actually reduced my intake by 60%. so, most of the water i was using in the home was to water outside and that made me realize

how much i was actually wasting on the outside plants. ok. did i ask for public comments already? >> yes, you have. >> could i have a motion? >> i'll make a motion to send forth item three to the full board with positive recommendation. >> motion passes. chair cohen will take over. >> all right, good morning. madam clerk, call item four, please. >> resolution authorizing and approving amendment to lease with bgca management for bill graham civic auditorium increasing base rent to 25,000. >> sponsor of this particular legislation is supervisor kim but today claudia goreham from the department of real estate will be walking us through a power point presentation and making the presentation on behalf of supervisor kim. thank you. the floor is yours. >> thank you, good morning,

chair cohen and supervisors yee and tang. the resolution regards an amendment of the existing 20-year lease of the bill graham civic auditorium to bgca management llc, approved in july 2010. about three years ago the tenant approved city staff with a proposal of creating a smaller venue space for music and events in a side of the building, approximately 900 seats. the new small venue would be two stories and include a new stage for music and other performances, and a u-shaped balcony which takes it to the second floor of the building. staff was encouraged, it would increase activity in the civic center and allowed negotiations to amend the lease. neither city nor the tenant wanted to renegotiate a new lease, but just certain conditions in the lease, especially city staff, so terms

that were more favorable to the city in certain aspects. with this -- with the assistance of the mayor's office, the controllers' office, city administrator and others, reached the deal which is before you. majority of the lease terms and conditions remain the same. i could not list all of them, it's a very big lease. length of the lease, the number and length of options, the annual adjustment percentage, they all remain the same. revisions to the existing lease include base rent, in 2010, $100,000, we have increased that to 300,000. in addition, tenant improvements. under the original existing lease, there was an exhibit that had a very large list of tenant improvements that were specific to the building, that were negotiated before anyone got into the building, and it was to

be $10 million. under the lease amendment, that list goes away, and the tenant has agreed to make up to at least $10,250,000 in improvements that are more specific, such as modernization of the passenger and freight elevators, and modernization and upgrades to the actual electrical system in the main hall. in addition, under the existing lease, city has to pay 50% of the overage of the shred hole mark of $200,000, so utilities go over 200,000, the city pays 50% of whatever that number is. under the amendment, tenant pays all the utilities. in addition, participation rent has changed under the old lease, you had to make a threshold mark of certain number of tickets sold. under the new amendment, we are

guaranteed a number for each nonticketed event, and that is $3,500 per main auditorium event, and $2,500 per smaller space, including any nonticket events in the new hall when it's up and running. additionally, city days were decreased from 50 to 25 because the city has never used 50 days and we never used more than 24. and finally, room 202, the city had use of but never actually fully occupied, is going to be incorporated into the polk hall. other newer conditions are that the tenant wanted to install a new marquee on the back side, hay street side of the building. >> may i interrupt for a second? >> who is the tenant? >> bcga management, llc. >> management company, thank you. >> i think there is a building

manager inside the building, but they are not in the building. >> i understand. >> the marquee on the back side, they would like to improve that and as landlord, we are in agreement with that. they have to go through the different reviews and regulatory approvals, and if they do install one, the city will get 50% of that income. and finally, the lease amendments updates the lease to include all the newer and mandatory items that must be in the real property agreements, including prevailing wages, local hiring, wages and working conditions in workers and so on. if you have any questions, here to answer them. >> supervisor yee has questions. and we have a b.l.a. report to hear as well. >> just for clarification, the rent, base rent of 300,000 is

annual and that is for the whole building? >> correct. >> ok. and of, during the year then, what's available to the city is 25 days. >> correct. >> and is there any fine print that states which days or is limited to? a lot of times i have seen these leases where the leasee, the person that leases the building, in this case the city, sometimes is at a disadvantage because you get the most lousy days. like 25 days will fall on monday. >> right. the only thing that the lease amendment does is change the number of days. the original lease has a very detailed description of how and when the city can use the days. there's no restrictions on any of the days it can or can't

have. it just has to give notice, it has to work with the tenant to make sure it does not already have an event or a music performance or calendared for those days, and only up to four days in a row. so, thursday, friday, saturday, sunday, saturday, sunday, monday, tuesday, something like that. but does not say you only get monday, tuesday, wednesday, thursday, doesn't say that. >> i realize in the spring, quite a few high schools use it for graduation. how does that impact them? >> again, i don't think it will have any impact. we have never used our 50 days since 2010. only gone up to 24 days. and that was one year. usually it's much less than that, so we ask for 25 days so we would be over the threshold mark we have used in the last seven years. >> and so when the high schools use it, is that considered a city use?

>> yes, it is. >> so you'll protect the high schools. >> correct, yes. >> and then what if you use more than 25 days. possible, will you have like sublease it back? >> no, i mean -- we are in a very good relationship with the tenants, and if we need it, we can use it if we want, those are set aside for us. if we had to use it with other days, we would work with them on calendaring them on that. >> any fiscal impact for more than 25 days? >> each entity or department has their own fiscal impact. they have to plan on if they are going to use it for a particular event or performance, they -- >> the question is really between the city and the leasor,

the management company. now it's 25 days. and all of a sudden the city says you know, we need ten more days. are they going to give those ten days for free? >> it's not ever technically free. we have to pay for utilities and security and things like that. so, it allows them to set it aside and not -- you are right, not pay a stipend over and above what the costs are for using it. but i believe we have a good enough relationship with the tenant, that if we had to, we need it for all these days, they have allowed us to use it when it's been raining and we had to put homeless people in there and what not. so, you know, in certain emergencies and situations they have allowed us to come in and use them. i don't think that would change. >> this is kind of -- i'm sorry, i don't want to be -- i'm glad you have good relationship, but

sometimes -- it's odd that we don't have it in writing, i guess, for me. like if you have these situations and one of these days that who knows what's going to happen in future, where about the relationship, and the fact that we are able to do it now, shouldn't we have that in writing in the contract to allow for those extra days? >> i think it's a guaranteed 25, which it was a guaranteed 50, and we never used 50. so, it was kind of like why have that guarantee in there if we never could get to that points. and 24 was the highest we have ever used in the last seven years. so, it -- makes it so on their calendar we can sit there and take aside 25 days and have it on their calendar. nothing that prevents us from saying oh, we need additional these days, can we work with you to find these days. it's just that they are not

guaranteed on their calendar that we still have to work with them in case we want this month we need a couple more days, are you filled, do you have anything going on? >> i want to state for the public record that i'm not that comfortable with those type of gentlemen's or ladies' agreements, mainly because i know that things could change in the future and we have then no guarantee that we could actually do this in writing. >> i'm also very confident if we needed to amend again the days, we could do that with their negotiation and agreement. >> thank you. budget legislative analyst and hear the report. >> good morning, chair cohen and members of the committee, yes, as she pointed out, an existing lease with bcga management, for bill graham, that goes through

2030. it adds polk hall to the existing lease and revised the terms of the overall lease. the two major issues are the existing lease, utility credit provided to the tenant is sufficiently high that the tenant has actually not owed rent to the city in either 2016 or 2017. so the amended lease does move that utility credit because of that we actually estimate that revenues, and increases the base rent, and because of the two provision, increased revenue to the 13 years of the lease to $5.7 million. under the existing lease, there would be no revenues. now, the adding on of polk hall technically under the admin code, it would require a competitive bid by the use of polk hall by a vendor or a tenant. resignation does wave the competitive bidding process.

because the overall amendment to the lease improves, increases revenues to the city and improves the terms to the city, we do recommend approval of the process and recommend approval of the resolution. >> all right. recommendation for approval. let's go to public comment. any member of the public like to comment on item four please come up. >> good morning, supervisors, joanne desmond, stage hand, local 16. i believe you have a copy of the letter stating our support. i would like to reiterate that bgca and local 16 have a very good working relationship. we would encourage your passage on this as it benefits so many of us. thank you. >> thank you. next speaker, please. >> hi, i'm steve, the c.o.o. of

bgca management, llc and another planet entertainment. i want to thank you for your time today and thank the real estate department for the time they put into working on this amendment. and i'm here to answer any questions that you might have. >> thank you, but it's public comment and we are not able to ask you questions, but we can receive comment from you. >> okay. well, under those circumstances, i hope you understand that this is, we believe this is a ben if it for the city and for the neighborhood and that's where we are proposing it. thank you. >> thank you very much. next speaker. >> good morning, supervisors. coming off of a very entertaining tv show that's been, the city government of the procedures going on here. so i'm, what do you say, stay on schedule. i'm here not knowing what they are talking about, but just for the sake of it, i support what

y'all are doing. and also i have comments, public comment, about bill graham. his production and everything. because all that originated in the -- and history shows without a doubt bill graham came to my community and took away all the things a black man had, mr. sullivan. and now, on fillmore and gary street, i don't know if you have the same people there renting out the property, called the fillmore auditorium, no blacks, we go in there, we don't have no kind of benefits, so y'all talking about benefits over here, y'all ain't did jack frost. by the way, since i'm up here talking politically, all the politicians around here playing politics, politrick, i'm going to use this tv that you are watching, that i created, to do like what trump is doing. he's a master at what he's doing

in that tv, i'm the master down here locally. and i'm going to use this until y'all give me my right to be in the media back there where there was no black media there yesterday, or the day before. all these blacks came in talking about racial and ginger, no, it was politics at its best. and i want to commend the supervisors, the progressives, because the progressives got to give it to moderates, and resolve the problems that we have and stop playing politricks. so when i get back to talk later, a good example of how the politicians and the supervisors and some of them are lame ducks, are playing politricks right here in this arena. >> thank you. thank you. anyone would like to speak on item four? all right, seeing none, public comment is closed. supervisor yee raised an interesting point about making

some changes in the lease amendment city days, existing lease has 50 days and the lease amendment to 25 days. supervisor yee, an opportunity to be able to ask the tenant questions directly if you don't mind. >> sure. >> so, i would like to bring up the representative from another planet. >> as you heard from the discussion, supervisor yee has a few concerns about what's proposed before us. >> yes. number one, city days proposed, take into consideration any and all of the graduation for the

schools, that does not impact. and they can pull from the calendar the general overall mission we are under to activate the space as much as possible. so our task is to book as many events as we possibly can to fill the need to activate the neighborhood. so, it was the city's proposal that since they were not using these days, it would make sense to free those up so we would have more opportunities to book more live concerts and other events to activate the area. if there's -- if there's a date the city needs beyond the days that are guaranteed, which are days which the city pays no rent, simply whatever the cost of that event might be and it's a pass through, in that case, the city could request an additional day, and if it's not a day that's booked or a day that's necessary for another event, then it's possible that it's likely that that would then

be allowed. so, that's really the way it's worked and the way it would work in the future. did you have further questions about that? >> when you say allowed, are you saying allowed without the city paying any rent back to you? >> i'm sorry, could you repeat the question, i didn't hear it. >> the agreement right now is 25 days where the city could use the venue and there wouldn't be any rent charged to the city. >> correct. >> and beyond this, go extra days beyond 25, would then your management company charge the city back, i guess, rent to use those two extra days? >> no. >> ok. thank you very much. >> all right. thank you. seeing -- public comment is closed. i am happy to entertain a motion

at this time. colleagues. >> i'll go ahead and make a motion to pass this out of committee with positive recommendation to the board. >> thank you very much. take it without objection. and that is without objection. thank you. madam clerk. please call item five. >> resolution retroactively authorizing the department of public health to accept and expend the grant, public health foundation exercises, august 1, 2017, through july 31, 2018. >> legislative sponsor is supervisor sheehy, but hearing from mr. albert lui from the department of public health. >> good morning. sorry, dr. liu could not be here. >> you don't look like him. >> sorry, he could not be here, something last minute. i'm from the department of public health, budget analyst that supports dr. liu, here to

ask for retroactive approval from a grant we received that supports his efforts and manager eight position. the goal is to develop an app to support youth in taking prep and also to measure the prep adherence, and hiv pills to prevent infection. >> thank you, i think it's simple and straightforward. resolution to accept $174,000 grant from the public health foundation enterprise, and the funds go to study a tool designed to help hiv positive men adhere to their prep medication. so -- what i would like to do now, no discussion with my colleagues, go ahead and move into public comment. public comment is open, item five. any member of the public that would like to speak on item five? seeing none, public comment is closed. thank you very much. thank you, sir. is there a motion on item five? >> motion to send forth item

five with positive recommendation. >> thank you, take the motion and pass unanimously. >> appreciate it. madam clerk. item six. >> item number six, resolution approving lease of parcel 125 bayshore boulevard, w.y.l. orion, for use by the department of homelessness and supportive housing for emergency shelter purposes initial rent of 489,000, 3% annual increases. >> all right. thank you very much. the sponsor of this legislation is the mayor's office. the speakers today are going to be presenting from two departments, first recognize john updike from the department of real estate and is jeff coming, emily will be here presenting on the office of homelessness. and supportive housing. and recognize carolyn guzen also

prepared to speak on the item. before we go any further, hear from the supervisor's office first and then we will hear from real estate. thank you. >> thank you, chair cohen. supervisor could not be here today, my name is carolyn, and she wanted to voice her strong support for this lease, and for the opening of the navigation center at 125 bayshore, and also say thank you very much to supervisor cohen for hosting the site as well as the department of homelessness and supportive housings and the department of real estate for this work on this. the location of this navigation center is in district ten, but the edge of district nine, and the area known as the hairball, often hosts large tent en campments. working on pedestrian and bike safety and hope to transform the

area in partnership with supervisor cohen's office. real safety is not possible until the people living in precariously placed tenting encampmentes can have a place to lay their heads. it will provide people in the unsafe conditions with a place to stay and provide them with services to help them get back on their feet and exit homelessness. supervisor ronen was instrumental to obtain the funding for the lease and special thank you to assembly member phil tang, for leadership and securing the funds used for the site through his role as a chair of the california assembly budget committee. thank you very much. >> thank you very much. colleagues, i would like to add there is no secret there is a shortage of beds and shelters and opening a new navigation center quickly, particularly to

close the pedestrian and commuter safety issues in and around the hairball is critical and very essential. i'll be supporting this lease that we are going to hear presented today and given the emergency ordinance that allows the fast tracking construction of navigation sites, i hope we'll be able to begin to see additional locations outside of district six, outside of district nine and outside of district ten. and with that, i would like to bring up john updike to make a presentation on behalf of the real estate department. >> thank you, director of real estate. having some technical difficulties, we'll do the power point the old fashioned way on the overhead. that would be great. i'm joined as you mentioned by emily cohen from h.s.h. she will go into the programming for the property, i'm going to highlight the points of transaction before you today. so, the property 125 bayshore that is shown, we have located

four particular navigation center sites, and this particular one shown at the bottom center of the map on the screen. that's just south of cesar chavez, bayshore on one side and gerald on the other. entrance off gerald rather than bayshore, pretty busy street. this lease before you is an initial six-month term, five one-year renewal officials. an unusual property, split about 50/50 between office and warehouse. it's on a lot of 31,700 square feet, made it very attractive location for us, geiving us som outdoor space as well as indoor space on the premises. the lease rate as shown in your

package, 21.29 a square foot per year. we expect utility and service expenses beyond that of an approximate $1 per square foot per year. as indicated in the budget and legislative analyst report, the rate is in the range of comparable properties. again, we, this is a blended rate, so it includes office space and warehouse space and we are actually in the warehouse space range. no appraisal is required because of the admin code provisions here. this is a very low lease rate that we are talking about. we completed comprehensive analysis in the bayview prior to negotiating this transaction. so, that helped inform this negotiated rate. that data was shared with the budget and legislative analysts and helped them come to their conclusion on the recommendation here. the rate will increase annually at 3%. we will not commence paying rent until april 1st. we will start construction

before that time, so, there is essentially a free rent period. there is an estimated opening date of may 2018. there are substantial tenant improvements here. emily will highlight the features that are unique to our needs for the property. turn it over to emily, take it from here. >> thank you, emily. nice to see you. >> thank you, good morning supervisors. emily cohen from the department of homelessness and supportive housing. as you all know, homelessness is a crisis impacting san francisco. we have approximately 7500 people experiencing homelessness on any given night in our community, and 4300 of those folks are living unsheltered. we currently do not have the emergency shelter capacity to meet the demand. we have a consistently over 1,000 people on the shelter

waiting list. and this past november, mayor ed lee challenged us all to bring in additional 1,000 people off the streets and navigation center is part of that, our way to respond to that challenge. thank you. we have five navigation centers open for under the department of homelessness and supportive housing, one under department of health, four navigation centers in the pipeline. part-time, low threshold programs serving our most vulnerable folks on the street. intensive social services are available and referral into navigation centers are conducted through the encampment resolution team and the homeless outreach team. and navigation centers are a key component to the success of our ability to resolve encampmeants off the streets. excited for the opportunity to open at 125 bayshore, 125 bed

facility, focusings unsheltered people experiencing homelessness and folks in the immediate area. like other navigation centers, this will have 24-hour staffing and operations. this means there is no line-up outside before curfew time. the 24-hour site activation will improve safety in the neighborhood and every shift will include safety personnel. terms of the facilities, the feature -- features of the facilities certainly include dormitories, bathrooms and showers, laundry, dining and community space, service space and storage. we found these components are essential to a functioning, a well functioning navigation center. the drawing is a little hard to tell, but you can see the layout that public works has proposed for the site. in terms of community engagement, we held a community meeting last week in the neighborhood and had a very

positive and warm welcome from the neighborhood. we look forward to continuing the community process and continuing dialogue with the neighbors. and the last bit of my presentation is just on the timeline as we move forward. we are hoping to execute the lease right away. march to may will be a construction time frame with the estimated opening of may. navigation center, and if you have any questions, happy to take them. >> thank you. for your presentation. let's see if -- colleagues, any other questions that you have? all right. let's go to the budgets legislative analyst for their report. >> in terms of the lease itself, as mr. updike said, this did not require an appraisal, it fell below the threshold by the administrative code. rental rate for the warehouse portion is 1.50 per square foot, in the survey range that the real estate provided us.

the cost of the lease over the approximately five and a half years of the term would be to the city, $2.8 million. i think our one issue with this lease and you'll see it also in future legislation coming forward is the cost of the tenant improvements. the budget we were provided by public works, $3.2 million. we do, for use that would be five years or less under the lease. we did talk to the department of homelessness. their goal for the navigation centers are for a mix of short-term and longer term navigation centers with centers being open at least three years. we actually ended up recommending approval because the tenant improvement costs are consistent with the tenant improvement costs with other navigation center, and because this would add beds to the navigation centers at the same time that two of the other centers will be closing in 2018.

so as i said, we do recommend approval. >> you do recommend approval. supervisor yee has a question. >> what's the term -- how many years is the lease? >> supervisor, your question is how long is the term of the lease, initial six-month term. that's primarily for seqea reasons, and five annual renewals. five and a half year maximum term. >> is, for the other navigation centers, i know, well, what's the length of those leases? >> good question. one that was also posed by the budget and legislative analyst during their review process. the challenge here is most of our others are not leased.

the other lease facility we have at 1515 south vanness is a temporary lease until they move forward with the housing project and that's fairly short-term. that was initial six-month, and we are in a second six-month bridge and then we expect to be vacating that. so, that will only be about a one-year occupancy. these do tend to be fairly short-term. other locations are on owned premises, and the caltrans locations, will be annual self-renewing. they could be for longer term, but run year to year until terminated by either party. >> and when they were asking the questions, maybe i -- maybe my question is directed towards the b.l.a., or whoever could answer this.

what's -- just looking at this in isolation, and if it's a five-year lease, and improvements would be sort of equalize it over five years, 700,000 a year. is that sort of typical that we spend 700,000 for one year worth of usage? >> i don't think there's a typical metric that we can look at. however, there are a number of these improvements that can move to other sites. some improvements that we have already received approval from the landlord to remain on-site, which is great. we don't have a removal requirement, that's a cost savings in the budget as well. so, i think we are being as diligent and thoughtful as we can about the improvements, recognizing we may only enjoy them for five years. >> ok.

now, again, one of the situations where we need to do it, i'm just also wanted to make sure that we know what impact fiscally when, at some point we may question, for instance, if you are going to be able to use something for one year and going to put $2 million for improvement, is that really worth it. thank you. >> thank you. open up public comment at this time. i have two cards here. i've got charles defergus from bicycle coalition and ace on the case. >> good morning, i'm a community organizer on staff at the san francisco bicycle coalition. very happy to be here supporting the proposed lease as the navigation center. promote the bicycle for everyday

transportation and 10,000 members supporting that cause. biking does not occur in a vacuum, however, and our movement moves with others in san francisco is important satisfaction for the work. most clearly demonstrated at the hair ball, a series of paths, where the avenue, boulevard meet behind highway 101. despite being hard to navigate, the home to many who are experiencing homelessness. city officials estimate on any given night at least 7500 people experiencing homelessness, many of whom take shelter at the hairball and surrounding areas. at its worst, 60 people living in encampmentes. those numbers have gone down, but many still remain, including those who remain on nearby streets. the navigation center at 125

bayshore will help those living nearby need. thank you supervisor cohen for finding real solutions and believe the navigation center will provide opportunities for safe passage for walking and biking at the hairball and addressing homelessness. thank you. >> any other public comments on this item? come on up. >> why did you go to the back? we only called out two names. come on, two minutes. good to see you. >> good seeing you, supervisor. listen, might as well get used to seeing me every time you do the public testimony, whatever it is. i am the creator. one of the creators of government channel and i say this regularly, you are going to hear it more. i don't get the credit for it, i don't want credit, you pay me, pay me some cash. >> before you go any further, i need you to talk on item six,

the real property lease. >> i am, hold the time, stop the time. >> no, we are not holding time. >> why did you stop me, supervisor, i know what i'm supposed to say, you didn't stop that white guy, don't do that to me no more. >> stay on the topic, ace. stay on topic. >> i'm staying on topic. you stopped me. >> now i'm letting you go. property lease. >> say it clear. you are going to hear in your ear, particularly yours as you smoke out, supervisor, from the east side. i'm on your case now. i'm coming out there. and by navigate that don't mean nothing to us we is us, you and me, black folks, we are not -- we are not represented -- listen, in the black population it's down, i'm talking about the homeless. the black homeless. don't have to pull out my race card, let me speak. i'm going to sit down and start over again. i didn't come up here to get upset. i cam