playing, just very lightly, we want to give an acknowledgment to a couple of people who are here with us today as special guests. the sheriff of the san francisco county sheriff's department, sheriff vickie hennessey is here, and shimon wanton from the san francisco school board, reverend arnold townsend, the reverend dr. james mccray, jr. we have the members of the staff of the san francisco fire department, san francisco police department and also members of the san francisco sheriff's department. we also want to thank our friends here in the city and county of san francisco, the

city administrator's office, and particularly partnership with the mayor's office and neighborhood services led by our own derek smith. this concludes the 50th year, the 50-year memorial commemoration of dr. martin luther king, jr. here in the city and county of san francisco. we thank you all for being here. we want you to spend this next week reflecting on dr. king, reflecting on his message of beloved community. and decide within ourselves those things that we can do to make it a more beloved community. as we conclude here, we want to be taken out on a happy day, by our musicians. thank you everybody.

>> good morning, ladies and gentlemen. i'd like to call this meeting to order. >> all right. thank you, sfgovtv, and ladies and gentlemen, want to welcome you back to another exciting meeting of the budget and finance sub committee. my name is malia cohen. i'm the chairman of this committee, and to my right is

supervisor sandy fewer. joining us shortly in this meeting will be supervisor safai. i want to thank jessie and michael for assisting us with today's broadcast. our clerk, of course is the lovely and talented miss linda wong. thank you everyone for joining us here today. madam clerk, are there any announcements? >> yes. please silence all cell phones and electronic devices. speaker cards and any documents to be included as part of the file should be submitted to the clerk. items acted on will be on the april 16 board of supervisors agenda unless otherwise stated. >> supervisor cohen: thank you very much. i'd like to call item number one. >> item one. [ agenda item read ] >> supervisor cohen: all right. thank you very much. supervisor peskin is the sponsor of this. i think we've got beth

rubenstein here who's going to be presenting from the department of public works, and i don't know if julia dawson is going to be here, as well. >> i'm here. >> supervisor cohen: all right. this item is a 240 day extension from jc decaux from public kiosk. thank you. the floor is yours. good morning. >> good morning, chairman cohen. we're here toed to ask for an extension. what we've been doing recently we ended up in a review at the historic preservation commission, and they asked us to step back and do some design evaluation. as a result of that we brought on beth reubenstein to help with the design process, and it's actually been going well, so i'd like her to come up and talk about what we've been doing with the design of the

toilets and kiosks. >> supervisor cohen: great. thank you. >> good morning, supervisors. thanks for hearing this item. so last year, sort of late spring, summer, and fall, jc decaux had an initial sort of draft design that moved through historic preservation and also the arts commission specific design and review, and they reviewed it, and it got stopped. they were concerned about i would say the utilitarian nature of the design. it didn't have the uniqueness and flair that we would hope for an important san francisco assets. these kiosks and toilets will be on the street for the next ten to 20 years. we wanted to step back and balance this contract that's really been beneficial for the city, so we'd like to get that contract completed as soon as possible. we'd also like the toilets and

kiosks to be as beautiful a possible. >> supervisor cohen: we got it. this is just an extension of the contract. supervisor fewer, any remarks? >> supervisor fewer: no. i think they're lovely, and i just want one in my neighborhood. >> and we talked. >> supervisor cohen: all right. well, thank you for the presentation. let's go to public comment. if there's any member of the public that would like to comment on item number one, seeing none, public comment is closed. all right colleagues, is there a motion? >> supervisor fewer: yes, i'd like to make a motion to move this to the board with a positive recommendation. >> supervisor cohen: all right. we'll take that without objection. thank you. madam clerk, could you do us a favor and call items two, three, and four together. >> clerk: yes. [ agenda items two, three, and

four read ] >> supervisor cohen: all right. so before us, we have three resolutions for concession stand leases in the international terminal in sfo. the best part about all of this is the combined leases will bring a minimum of $9.7 million in revenue to the city and county of san francisco, and we've got our friend, cassy widener from the airport to tell us all about it. >> good morning, chair cohen. >> supervisor cohen: good morning. >> cathy windendener for the s francisco airport. we are asking for three new leases in the international terminal a, with sfp america

for a manufacture food haul, black point coffee and boudin bakery. the length of time for the sfp america and boudin lease is ten years, and the black point coffee is eight years. all three leases have a ten year option to extend and are the result of a competitive proposal process. the leasees will pay rent either the greater of their minimum annual guarantee fore a tiered percentage rent formula. this will result in an annual rent amount over the initial term for all three leases of $9,570,000 at a minimum, although airport staff does expect that the leases will be paying on the higher of the percentage rent formula. the rent commencement date for each of the leases is either the earlier of the completion of construction of tenant improvements or 120 days after

the tenant occupies the lease space. the budget analyst's office has reviewed and recommends approval, and i would be happy toer answer any questions. >> supervisor cohen: thank you. i don't think we have any questions at this time -- oh, excuse me, supervisor safai. >> supervisor safai: just in general, and i understand i'm just sitting on the committee today, but i have a question. i look at the name of the people that apply. a lot of them are smaller cafes in san francisco, but when i get briefed from a budget and legislative analyst, it's always the larger businesses per se. you don't often see a small local san francisco based company that's often being chosen, so i'm wondering how you're putting your bids together and what kind of effort you're making to ensure the smaller mom and pops are really having a shot at san francisco airport. >> there are a couple of ways that we do that, and i'd be

happy to get you further background, but just to answer your question generally, there are cases in this -- in this lease right here, the lease with sfp does actually have a small business component. they partnered with marina's cafe who will be operating as part of this lease. i believe it's 35%, so there are opportunities for partnering. airport staff goes out into the community to try to get folks interested, and we set the annual guarantees purposely low -- >> supervisor safai: i guess i'm asking a different question. i know in the ferry building, once someone is a really established business, they're no longer allowed to be part of the lease. so when i say cafe roma on your scoring system score 56 points, and i see sfp scoring at 102, what i'm saying is how are you putting together your packaging in terms of your scoring; and two, do you ever consider not

allowing some of these already established businesses that have locations all over san francisco and allowing some of the smaller mom and pop businesses an avenue to get a foothold. because once you're in san francisco airport, that is a pretty lucrative opportunity, so that's what i'm asking. >> i can get more detailed information to you because i know that our revenue development staff does look into that and takes it seriously. we have pop up opportunities at the airport, as well, which has a $250,000 gross revenue requirement, which is low. >> supervisor safai: i get it. >> so we do try and do that, but i'll try and get you further information on outreach. >> supervisor safai: i'm fine, and i'm prepared to let this go. what i'm saying is when i'm in san francisco airport, i don't see it. i see businesses that are well established and they're all over san francisco, and i don't see mom and pop shops get that opportunity. that's what i'm saying. >> okay. thank you. i'll pass that along.

>> supervisor cohen: all right. at this time, i want to pivot and hear from our budget legislative analyst and hear what their thoughts are on these three items. good morning. >> good morning. i'm from the budget and legislative analyst's office. i think miss widener has summarized the leases pretty thoroughly. as you hear, the first year guaranteed rent to the airport would be about 990,000. it would be about $9.6 million over the term of each of the leases, and they do a percentage rent which would be higher than that amount, and we recommend that approval. >> supervisor cohen: all right. thank you. we'll take that recommendation under advisement. at this time let's go ahead and open up the public comment. any member of the public who would like to comment on items two, three or four please come up. seeing none, public comment is closed. thank you. i'd like to make a motion to approve these three items and send to the full board with a positive recommendation, and it looks like i can do that without objection. thank you, ladies and gentlemen. next item,

that's what i thought. okay. let's hear from the budget legislative analyst has to say. >> yes. as his alimiss alice pointed o these are the same that the board approved its two year fixed but jet in the last budget cycle. it's not in the report but i will respond a little bit to what was said in terms of the controller's office hoping to have more two year fixed budgets going forward. we did say two years ago in our

report that we considered it important for the board not to give up their appropriation authority and budget review every year. that was our finding two years ago. in terms of the four budgets this year, they are the same as the last two years, and we do consider this a policy matter. >> supervisor cohen: okay. are there any questions? no. okay. >> i would only add that there's nothing -- the board is not giving up any of their approval appropriation authority or review -- authority to review or appropriate a budget when you review two year budgets. so i think that's the substantive discussion or argument that we can have, but this doesn't do anything to change what comes before the board or how you may choose to review it. >> supervisor cohen: absolutely. i also want to remind that these are also the same departments as adopted in

16-17, 17-18, so we've got a track record established. i'd like to open up the public comment at this time. my member of the public to come in and speak on item five? seeing none, public comment is closed. thank you. i'd like to make a motion to send this approved to the full board with a positive recommendation, and we can take that without objection. >> clerk: madam chair, would you like to send it as a committee report? >> supervisor cohen: i'll send it as a committee report. we can do that without objection. thank you very much. and colleagues, before we dismiss, i would like to make a motion to excuse supervisor stefani from attending today's meeting. can we take that without objection? all right. without objection. is there any other business before this body? >> clerk: there's no other business. >> supervisor cohen: all right. ladies and gentlemen, we are adjourned.

. >> good afternoon. all right. ladies and gentlemen, good afternoon. i want to welcome you back to the budget and finance commit r -- committee, the second installment of the day. before we get started i want to recognize linda wong who is assisting us with today's meeting. also at sfgovtv, we've got

jessie and lawrence. and my colleagues. to my far left, we have supervisor norman yee, and to my right we have supervisor sandy fewer. madam clerk, are there any announcements for today? [ agenda item read ] >> supervisor cohen: okay. thank you, madam clerk. do we need to take a vote to -- >> clerk: would you like to take a vote to excuse supervisor self aknee? >> supervisor cohen: yes, i would. to colleagues, i will put a motion out there to excuse supervisor stefani. thank you. that's been seconded by supervisor yee, and we'll take that without objection. thank you very much. [ gavel ]. >> supervisor cohen: and madam clerk, would you please call item one. >> clerk: yes. [ agenda item read ] >> supervisor cohen: all right. ladies and gentlemen, i cannot

believe we don't have a full house on this one because today, we're hearing from the mayor's budget office and the controller's office regarding the fiscal health of our city, and i can't think of a better place to be than here. so kudos to all of you who made it out here today. just to give you a backdrop, the controller projected a shortfall fo shortfall for the fiscal two years. this report is indicating that the shortfall is decreasing, now at only $140 million for the next two years. however, these increased revenues a revenu revenues are largely one time in nature. the deficit is still projected to increase to $652 million by fiscal year 21-22, and this is driven been a increased projection in salaries and benefits, projected to increase

500% by 2021, and this will also makeup nearly 50% of the budget, so these are very important conversations that we are beginning today, and they will continue into the future. i think it's important that we think about these cost drivers as we head into the next fiscal season, particularly if we were to add new full-time employees across all departments. with that, i want to bring up miss kelly kilpatrick from the mayor's office of budget who will be leading the presentation today. thank you. >> good afternoon, supervisors. kelly kirkpatrick, acting budget director for the mayor. i also have michelle allersma from the controller's office to answer any questions that you may have during the presentation. the five year update, called the joint report that we put out in december, we have come out with a march revise to

that, and as supervisor cohen did a great job of priming everyone for, we must balance the up coming budget by $137 million. the joint report and joint report update with a joint publication between the mayor's budget office, the controller's office, as well as the budget and legislative analyst's office. as a reminder, both in the december report and this march update, we utilize a base case projection, meaning we take policies as they currently stand. no big swings in either funding or federal kind of policy changes? federal's just an example, and make our projections based on that. another large assumption is that there is no downturn assumed, so we just continue to assume status quo more or less?

and where will we land knowing that status quo given some other cost drivers that are known entities. and in that realm includes revenue, so the december report as well as march report assume that the economy is strong, but revenue growth is slowing and there's signs of growth constraints? for our projection purposes, you know, to forecast the deficit for the next four years, we do assume inflationary cost increases for personnel utilizing an average from moody's and the california department of finance for open contracts so we can anticipate some salary growth? additionally, we assume inflationary pressures on our knob personnel which assumes contracts in these assumptions, including the big ihss, inhome support services worker's cost increases from the state that we've been talking with the board for over a year now. we keep getting refined information as the state

develops their policies and procedures related to that. they shift, and also in the december report and this report is funding for the hall of justice exit plan. so this is the updated deficit for the next four years. as supervisor cohen mentioned, it's $137 million in the first two years, but as you'll notice there's still a really significant deficit in years three and four, reaching nearly over $600 million? and i would say that, you know, the december numbers were marginally higher in those two years, and it's really this structural difference between the rising cost of our expenditures and the slower rate of growth of our revenues? the structural deficit is driven in some part as supervisor cohen said, reliance on our one time sources. that's our biggest driver. it's over a $400 million difference between years two and three.

we have ongoing pension obligations contributing to those out year deficit growth, again e escalating ihss costs and revenue constraints. changing from the december report highlighted in our march numbers and driving kind of that two year decrease, the largest is the addition of over $60 million of one-time fund balance as reported in the controller's six month report for the current year fiscal year '17-'18. additionally when the controller's office put out the current year -- we say savings, but it could also be additional revenue, 'cause that contributes to that, they also revised their revenue projections for the next four years, given current year actuals. they've revised it for the current year outputs. they've also received information from financial experts in the city to drive

these assumptions? so there's higher than anticipated projected ongoing revenue, driven by property tax, business tax, and hotel tax offset by some weakness in sales tax and parking tax? in emergency roterms of salary benefits, our average of moody's and department of finance has been revised down modestly, so there are some savings related to that because we include those in our salary and benefit projections. the largest safer other than kind of the drivers related to our revenue are pension assumptions? so in december, the revenue board updated some revenue assumptions as well as modelling, and that has realized a safer for us. then in terms of citywide costs, some highlights in terms of new costs that we're incorporating include repl

replenishment of the compain fund, given that we have a june mayoral election to meet the funding levels outlined in the ordinance. we are anticipating we will need to refill the election campaign fund given increased use of public funding for elections. additionally, for ihss, we have received more concrete, and i believe in january , correct n correction -- direction from the state about how that will be implemented, so that's growing our ihss cost, bringing just the two year increase in 18-19 and 19-20 to nearly $100 million more than we had anticipated last december at our five-year ---ed wor the wo escaping me, the title of this entire word -- five year

financial plan. and then finally we do incorporate the annualization of current year models that have passed since december, so that includes federal funding for dph that were funded through the federal, as well as $5.5 million of annual cost that went both to the public defender as well as the mayor's office of community housing and development to fund cbo legal defense? and just some reminders what's still really present on our minds and what we think about, we look at these numbers from a financial perspective, the one time sources, bringing down that $137 million deficit? you know, we still have significant structural deficit in those out years. again, these numbers are predicated on no downturn or recession? it would be a historic anomaly

if there would be no downturn on the four year horizon of this projection? we're in the third longest expansion since 1945. >> supervisor cohen: the third longest expansion of -- >> the economic expansion since 1945. >> supervisor cohen: so when you say economic expansion, you mean we have a really robust budget. >> meaning that the u.s. economy and the california economy has experienced growth since 2009-2010. >> supervisor cohen: okay. thank you for the clarification. >> you bet. and then we face state and federal uncertainty that we'd be facing over $100 million from ihss cost shifts? you know, we wouldn't have been able to predict that, and it's a really big and significant cost to us. other pressures we're feeling or seeing on the horizon, we talked about in the federal select committee, affordable

care act. any changes to that could affect the city on a large front. we are a large purchaser of health care for all of our employees and retirees, so any shift in the city would be a cost we'd have to take on. additionally as it relates to our department of health expansion of medi-cal or medicaid, as well as covered california, and california has helped 133,000 san franciscans? if that were to be pulled from our residents, we might face additional costs as people would be looking to the city to provide health care, and even the department of health themselves have received quite a significant revenue stream through the revised medicaid program? and then, also something top of our minds is potential repeal of sb-1, which is the state gas tax? the department of -- department of public works has -- has budgeted $23 million for road

repaving? that doesn't even speak to the mta's allocations of sb-1 for state of good repair which exceed over $30 million in their anticipated budget. >> supervisor cohen: i have a question about sb-1. i'm curious to know if you've heard from our lobbyists in sacramento. is there a report or update, and if i'm not mistaken, that's going to the ballot in november . >> correct. the last that i'd heard there are signature gatherings still going on for that? the last i heard, people thought it was likely that it would make it on the ballot? so we will keep, especially on the federal select -- we're growing it a little state, and we will keep you updated on that, as well. >> supervisor cohen: should this be successful in passing in november novembethat means decrease. how much -- >> $23 million in 19-20. there's partial budgeted in

18-19. i'll have to fact check that and get back to you, but fully funded by the department of public works for road repaving. >> supervisor cohen: all right. thank you. >> and that concludes my presentation. if you have any other questions. >> supervisor cohen: yes. i think we do have a couple questions, supervisor fewer and then we'll get to supervisor yee. >> supervisor fewer: thank you very much. since you mentioned that we have revised employer pension contributions, and what is that amount? >> i don't have that offhand. we can get back to you on the projected changes. i think i might have a chart, but -- hold on. so pension rates were the largest driver of the changes, so -- but in total, our report, there's about $20 million rolled up into salary and benefit savings in the first year of the plan and 29 million in the second year of the plan. it's not all pension, but that's all rolled up, the cpi

changes, as well. >> supervisor fewer: thank you very much. >> supervisor cohen: supervisor yee, did you have any questions? >> supervisor yee: yeah. can you go back to page three? >> yes. >> supervisor yee: just to get a better understanding of the numbers that are presented. so if i look at the sources and revenues, and it's an increase of 235 next year, and then 510 following, and then, it dips down again to 360 -- >> yep. >> supervisor yee: what's causing it to go up and down like that? >> yeah, so that drop in the third year is related to the one-time sources, as well as perhaps some downward trend in the controller's ongoing revenue projections, but i would say the largest driver is one-time sources? yeah, it's fund balance going away. >> supervisor yee: oh, okay. and then in regards to the

expenses, i guess, it looks like there's a decrease for all four years, and that's built into the budget. is that why there's a decrease? >> sorry. didn't follow the question exactly. >> supervisor yee: i guess when you look at salaries and benefits, for instance, each year, there's a decrease. is that correct? >> it's an increasing cost. >> supervisor yee: okay. >> sorry. that's -- the parentheses means it's a cost, so it's an increasing cost. >> supervisor yee: yeah. i just looked at the top where it says in parentheses sources, and then decreased. >> supervisor cohen: i have a couple questions. so what are the one-time sources that have decreased our deficit. >> so it's the fund balance, which is current year, either revenue better than budgeted or departmental savings, and that

has accrued over the last fiscal year -- and it's mostly revenue, better than budgeted revenue contributing to that. >> supervisor cohen: and where's the revenue stream coming from? is this property taxes? >> a large portion is revenue heath. i'll let michelle allersma speak to that. >> so in the six-month report, we reported on the three driver's of the good news in that report are property tax, business tax, and department of public health revenue. property tax is largely the assessor continuing to work through their backlogs faster than we thought they would at the beginning of the year, so they're enrolling -- enrolling higher values of properties that have transacted more quickly than we thought they would. that brings in supplemental and escape assessments in the short-term. in addition, business tax, this is kind of base building good news from the year that just

ended, so we -- we published our annual financial report in the fall, showing where we had ended the prior year. we incorporate those findings into our current year forecast, and so we ended last year better than we had projected, so that kind of bumps up the -- all the subsequent years, and then, department of public health is really patient rate revenue, and just continued -- i believe it's just continued faster than expected change between fee fore servi service kind of like cavitated rates. >> supervisor cohen: so is this year unique in having these three drivers in terms of revenue? no? i didn't think so. >> i think the thing that's interesting right now is that what's causing it, so for

property tax, it's less a function of just the value of property changing as it is the pace as which the assessor is enrolling new values, so it has a lot to do with our operational administrative function in the assessor's office becoming more efficient and doing things differently and capturing the value that's available legally for us to capture. so that's kind of different in the past couple of years than it has been over, say, the past decade or two. so that's a little bit different. the other thing that's different that you don't really see on this list is that we have real anemic growth and sales tax, which is kind of a bellwether revenue source for us because it's kind of the most immediate reflection of what people are feeling in their own lives and how they're choosing to spend, and that's very, very flat. so i think those two things are

a little bit different this time around. >> supervisor cohen: so i guess what i'm trying to understand is that, is that unique or is that kind of like -- you've been working on budgets for a very long time now. is this a common occurrence, these drivers, that you're talking about. >> i mean it's not surprising because these are our two biggest general fund tax revenues. it's probably not surprising they're driving the growth that we're seeing. >> supervisor cohen: okay. okay. and so i guess my next question, i think it's going to be for you, can you explain the second to last line of the march update projection table, if you can. >> slide three? >> supervisor cohen: yeah, i think it's on slide three, exactly. if there is 's a shortfall ver last year, how does that reconcile? how does that reconcile with the improvements of the $124

million that you've highlighted? >> can you state, sorry, your question again. >> supervisor cohen: sure. if you look at, on page -- on slide three, and you look at the second to last line -- >> the growth in cost expend -- >> supervisor cohen: exactly, the projected -- whatever it is, the projected shortfalls versus the prior year, see that line? mm-hmm. >> supervisor cohen: okay. so if there is a shortfall versus last year, how does that reconcile with the improvements of the $124 million that you highlighted. >> so you're saying last year at this time, where were we? >> supervisor cohen: yeah. >> i believe last year, we were at about 260 million? and so i think the big changes this year from last year are the two big drivers that we've highlighted are the increasing revenue, one-time fund balance, as well as the pension

reduction since december has been a pretty significant cost savings for us as really -- as compared to of the compared to last year. >> supervisor cohen: so hoe is tis -- how is the projected health improving? i understand it is, but i want to understand why it is improving. >> i think it's a comparison from the previous year, so we had anticipated very high cost drivers for pension driven by three main factors related to supplement c supplemental cola, less than budget returns at 7.5% for pensions, as well as revising of our actuarial tables, as well as those adjustment costs,

and those changed made in december good the actuarial compared to previously feel better, but it's still a significant cost. >> supervisor cohen: okay. so i want to talk a little bit about the project waiver agreement. i see that it's -- the costs have increased permanently and pretty dramatically in fiscal year 2019-20. i was wondering if you could just talk a little bit about why that is the case. >> the 260 million? >> supervisor cohen: yes. >> so we assume for projection purposes cpi increases for open labor contracts, and so seiu and the majority of our labor unions will be open in that year, so we assume that inflationary costs. other drivers are pensions still, and what i haven't really talked about but it's still really important with our health care costs for employees. this report assumes nearly double digit cost increases for

both active employees and 8% year over year growth just to pay for our current employees' health care, and i think nearly 9% for retirees, and that's a big benefit for that salary and benefits line as well. >> supervisor cohen: okay. that was my next question, what accounts for the variances in the employee and retiree pension rates? but we have to adjust that at the retirement board. people are living longer, the retirement costs are exponentially growing, and then what else? >> some wage increases, projected growth. >> supervisor cohen: and then, i think my last question, if you could talk about what's the cap it will expenditure rate in fiscal year 2019 and 20. >> so last year, the mayor's budget included full funding for the capital year both in 17-18 as well as 18-19, so i think it was a combined

almost -- over $300 million that year, and so we do -- we will have to figure out how much room we have in the budget, whether or not we're able to fully fund in the second year of this, so 19-20 in this capital plan, and we'll work through it with a capital planning committee to figure out that funding level, but that would exceed 300 million, as well, if we were able to fully fund that. >> supervisor cohen: thank you. i'm going to see, colleagues, do either of you have questions, if not, we're going to go ahead and pivot to the bla. nothing? okay. perfect. thank you. thank you for this -- for the memo. you and mr. rosenfeld did a great job. we're going to hear from public comment. is there any member of the public that would like to comment on this item? please come on up. please come on up to the podium. you'll have two minutes. hi. welcome. >> hi. one suggestion.

i believe you can increase consumer spending by reducing public transit fares, offsetting the increased transit revenue with increased sales tax revenue, and you can survey the riders did on the amounts they're spending depending on the time of day. also, 60% of the public is in federal employment and they are absorbing 50% of the budget, and i was wondering if there's now a 2.2% unemployment rate if it would be better to eliminate under performance while there are so many job opportunities. also, i was wondering how accurate and reliable our department budget numbers can department heads depend on the figures they are receiving from their insubordinates, and yeah, the longest running economic expansion in recent modern

history has led to global concerns in rising spending with -- [ inaudible ] >> -- russia creating satellites in neighboring territories, and germany seeking to establish a european class of satellites independent of nato and the u.s. >> supervisor cohen: thank you for your comments, are there any other members of the public wishing to comment on the five year plan? seeing no further public comment, public comment is closed. colleagues, if there are no further questions orment coulds, i will make a motion to continue this to the call of the chair. supervisor yee has seconded that motion, and we will take that without objection. thank you very much. madam clerk, is there anything further on the agenda? >> clerk: no, madam chair, there is not.

>> supervisor cohen: thank you, friends. we are adjourned. okay. you're looking rad today, and i'm not going to talk too long.

i usually like to talk and preach, but let me tell you, a restoration of public housing, affordable housing forever. give yourselves and everybody here a hand. come on. tdc was approached in 2015 to take over this public housing. i'm going to tell you, i was here and the units weren't looking too good. and now it looks like the high class vip, it's a collaboration between the mayor's office and housing and urban development, and you all get to speak later. but i'd like to highlight mayor lee. mayor lee was the one who said we need to do something about being on the troubled list and the housing story, and he just came up with the idea about who was the sean donovan and the hud folks, and i can talk more about that. but let me tell you.

it does take 2 persynergy. let me tell you -- raise your hand if you're on staff for ccdc. i know joanna is the project manager, and she'll get to speak at the end. but i know the residents, they had faith. they trusted us. without the residents, you can't do nothing in this city. so it's a trust and the collaboration, that they did all the work. joanna led, our project manager, you get special kudos. i know eric wong wants it, too. special contractor. so much love and energy, and san francisco's leading the way for the whole country, i think. and what are we going to do with the public housing? but for now, i know the mayor's in a rush, and we are so thankful that he's present

here, and i'm sure -- oh, the mic doesn't go that high. let's see. give it up for mayor farrell, come on! >> all right. thanks, everyone. see, we can get it high enough. you know, they were just showing me -- take a look at that brochure and take a look at the difference between two years ago and what it is today. i am incredibly proud to be here at 227 bay. first of all a few it yous. again, thank you, china down cdc. thank you for your staff, thank you guys and girls. thank you to our mayor's office of housing and community development, kate hardy, and joaquin is here, as well. thank you so much. so our housing authority, dar is here. thank you to the entire housing authority. and thank you to bank of america who's been a partner to

us as we rebuild these rad projects. thank you to b of a. as somebody who grew up in san francisco i drove by here all the time when i was a kid. and you when you drive by and see buildings that were neglected for years and years, and now, it looks like a brand-new housing. when you see this, how pumped are you here to live in this? when we think about our housing crisis in san francisco, it is not just about new housing, although we have to put our gas pedal on it and build it faster than of before, but it's also rehabilitating existing housing units, so that people in san francisco can live in them with pride and dignity, but it's all about affordable housing in san francisco. i am here as a steward of mayor lee's legacy, as well. this is something that was core to who mayor lee was.

reverend mentioned it earlier, but i want to pay tribute to him as we sit here. he's 13450i8ing right now. -- smiling right now. i know there's no place he would rather be than today. i know we're going to have similar ribbon cutting projects throughout the city of san francisco that all of these partners have worked on together. to all of these living here, the tenants, congratulations. please standup. please be recognized and standup, everybody. [applause]. >> i'll tell you, if you can't get excited about this, there's nothing you'll get excited about in the city of san francisco. i'll tell you, have a great rest of your day. thanks, everyone.

[applause]. >> is supervisor peskin here yet? not yet? let's give it up for san francisco housing authority and did you know i was on the commission back in the 90's? and i was so happy -- there's dreamers and producers. and we're producers. that's what we're celebrating today. >> good morning. my name is darius, and i'm the director of the san francisco housing authority. for me, things like this are sell b celebratory, but it's also a time for reflection and taking a step back and looking at this. today, we're making big progress. we're making great strides in the city. after spending a couple decades when norman -- when i was on the commission and i was

working at the human service agency and there's a lot of work happening, what i saw again and again was those exact same problems would fall between city departments. it's when city departments would get territorial, and these problems would come in and they'd get solved. and when i've seen those problems get solved, i've seen collaborations between departments like ccdc, with communities, with neighbors, with residents, everyone coming together to work on those issues. excuse me. when i feel like rad is a shining example of that, everyone coming together, and what i think about from the housing authority, it's repositioning ourselves to think about the city, on behalf of the entire city and all san franciscans as opposed to being so focused on our department, and that's the work we need to do in city government. today, the housing authority is experiencing its strongest partnership with the city ever. and i want to specifically

thank kate and lydia from the mayor's office of housing and community development, and your staff for the partnership you have developed with us. i've been doing this work for quite sometime, and i'm not exaggerating. it is the strongest i believe it's ever existed with the city, and it's like this with them. you're seeing it, what's the outcome? it's the outcome of 227 bay. as norman talked about it, mayor lee went deep and worked with joule i don't know castro who was the secretary. and when he had the opportunity to jump in, he jumped in and jumped in right away, and thank god he did, and thank god everyone jumped in so early. and now you're seeing this happen, and you're seeing these buildings happen. and now mayor farrell is carrying it forward, and you're seeing this, what's happening

at these buildings at 227 bay. as i was coming out and getting ready to speak, i asked my staff? what happened? what happened at 227 bay? we had bad things happen and good things happen, and i wanted to read what will daniels, who oversees our rad program said to me. staff really tried to understand the process in order to make the transition successful. i do not remember having issues with 227 bay for the lease up and conversion process, which says a lot about the team that they have there. ccdc's team was solid and worked so closely with us. and then he said, the last thing he said, i do look forward to make an already good working relationship even better going forward. this is coming from the guy who's the point. he's on the ground. he seize what's going on with him. i like what he said going forward, because that's what we're going to do with the

housing authority. this is along term affordable housing going forward. our staff will continue to do eligibility. we'll continue to do inspections of the units and we'll make sure residents will get their housing, and when vacancies come up, we need to move expeditiously to fill that have vacancy, and we will do that. i want to thank several people: our executive director, will daniels, oversees our rad team, kyla reynolds and the leadership of hers, the weightless teams who get these units sold quickly, and the director of lease housing to move us to high performer status from hud. i also want to thank the residents. thank you for trusting us, and thank you for believing that we could actually get this done and frankly putting up with us. because you have had to experience so much stressful,

time sensitive deadlines and rehabilitation happening in your home, which is incredibly stressful, and i just hope you're pleased with the end product. thank you so much. >> i'm still looking for supervisor peskin, but i know supervisor jane kim is here. want to come up and say a few words? >> supervisor kim: i am here on behalf of supervisor peskin who is currently chairing our san francisco county transportation authority meeting as we speak. he excused me from the rest of the meeting so i could represent him and his office, but also just as a former chinatown community development center aaluminlunni, i'm just proud of the work you have done today. rad and the rehabilitation of our public housing units is no small feat, and it says a lot that this is the first rad

project to be completed in the city. just as it is important to build low income new afford annual housing, it is just as important to rehabilitate existing low income housing in our city. 227 is reminiscent of a time when our country invested in housing. that was many decades ago, and now 50 years later, we are -- we are having to invest in making sure that these units can stay permanently affordable for our families, our seniors and individuals with disabilities much into the future, so this project is incredible important. i'm so important of all of the partners that came together on board to make today possible for our 50 households here at 227.

and i do want to acknowledge many of the staff members that worked to make this -- this possible. and dar acknowledged the tenants for your trust in us and having been involved with many public housing transitions. it is incredibly tough, and it's easy to understand why residents don't trust working with government and relocation and rehabilitation processes, but we also know that the staff play a very important role in building that relationship of trust and ensuring residents that they'll be able to come back to their homes of many, many years and often decades, and so of course want to acknowledge our great fareless leader, reverend norman fong. i'm about to acknowledge them, the relocation team, cathy lamb and tony leigh, our community organizers donna chan and wendy

chan, and resident services. thank you so much. this process is so difficult, and the reason why we're here today is really because of so much work of the staff on the ground that's made this possible, and of course the many people that have already been acknowledged, the mayor office and all of our financial partners, but the staff, you do tremendous work on the ground, and thank you and congratulations to everybody. >> okay. you know you need money to get stuff done. who you going to call? you're going to call ari? senior vice president of developing, ari, of bank of america and merrill lynch. >> good afternoon. it is a pleasure to be here this evening -- this morning,

this afternoon, today. i guess it's kind of strange. i remember what this place looked like. it didn't look anything like it looks like today. i remember what the residents looked like when i came to visit before ccdc took over the property. it doesn't look like anything like what the residences look like today. this has been an amazing transformation, and it's been an amazing transformation because of many, many, many people. a city, state and local government to get this done. first, i'd like to thank the former mayor. he was really a great partner. he was the affordable housing mayor in san francisco. he was one of the rehabilitaas of america did this project. we knew how committed he was to affordable housing at his core, which is the reason we did this. i'd like to thank the current mayor farrell, supervisor kim, and of course the mayor's office of housing and workfo