>> i have been living in san francisco since 1957. i live in this area for 42

years. my name is shirley jackson, and i am a retirement teacher for san francisco unified school district, and i work with early childhood education and after school programs. i have light upstairs and down stairs. it's been remodelled and i like it. some of my floors upstairs was there from the time i built the place, so they were very horrible and dark. but we've got lighting. the room seems lighter. they painted the place, they cemented my back yard, so i won't be worried about landscaping too much. we have central heating, and i like the new countertops they put in. up to date -- oh, and we have venetian blinds.

we never had venetian blinds before, and it's just cozy for me. it meant a lot to me because i didn't drive, and i wanted to be in the area where i can do my shopping, go to work, take the kids to school. i like the way they introduced the move-in. i went to quite a bit of the meetings. they showed us blueprints of the materials that they were going to use in here, and they gave us the opportunity to choose where we would like to stay while they was renovating. it means a lot. it's just that i've been here so long. most people that enjoyed their life would love to always retain that life and keep that

lifestyle, so it was a peaceful neighborhood. the park was always peaceful, and -- i don't know. i just loved it. i wanted to be here, and i stayed. [♪] >> i just don't know that you can find a neighborhood in the city where you can hear music stands and take a ride on the low rider down the street. it is an experience that you can't have anywhere else in san francisco. [♪]

[♪] >> district nine is a in the southeast portion of the city. we have four neighborhoods that i represent. st. mary's park has a completely unique architecture. very distinct feel, and it is a very close to holly park which is another beautiful park in san francisco. the bernal heights district is unique in that we have the hell which has one of the best views in all of san francisco. there is a swinging hanging from a tree at the top. it is as if you are swinging over the entire city. there are two unique aspects. it is considered the fourth chinatown in san francisco. sixty% of the residents are of chinese ancestry. the second unique, and fun aspect about this area is it is the garden district. there is a lot of urban agriculture and it was where the city grew the majority of the flowers. not only for san francisco but

for the region. and of course, it is the location in mclaren park which is the city's second biggest park after golden gate. many people don't know the neighborhood in the first place if they haven't been there. we call it the best neighborhood nobody has ever heard our. every neighborhood in district nine has a very special aspect. where we are right now is the mission district. the mission district is a very special part of our city. you smell the tacos at the [speaking spanish] and they have the best latin pastries. they have these shortbread cookies with caramel in the middle. and then you walk further down and you have sunrise café. it is a place that you come for the incredible food, but also to learn about what is happening in the neighborhood and how you can help and support your community. >> twenty-fourth street is the birthplace of the movement.

we have over 620 murals. it is the largest outdoor public gallery in the country and possibly the world. >> you can find so much political engagement park next to so much incredible art. it's another reason why we think this is a cultural district that we must preserve. [♪] >> it was formed in 2014. we had been an organization that had been around for over 20 years. we worked a lot in the neighborhood around life issues. most recently, in 2012, there were issues around gentrification in the neighborhood. so the idea of forming the cultural district was to help preserve the history and the culture that is in this neighborhood for the future of families and generations. >> in the past decade, 8,000 latino residents in the mission district have been displaced from their community.

we all know that the rising cost of living in san francisco has led to many people being displaced. lower and middle income all over the city. because it there is richness in this neighborhood that i also mentioned the fact it is flat and so accessible by trip public transportation, has, has made it very popular. >> it's a struggle for us right now, you know, when you get a lot of development coming to an area, a lot of new people coming to the area with different sets of values and different culture. there is a lot of struggle between the existing community and the newness coming in. there are some things that we do to try to slow it down so it doesn't completely erase the communities. we try to have developments that is more in tune with the community and more equitable development in the area. >> you need to meet with and gain the support and find out the needs of the neighborhoods. the people on the businesses that came before you.

you need to dialogue and show respect. and then figure out how to bring in the new, without displacing the old. [♪] >> i hope we can reset a lot of the mission that we have lost in the last 20 years. so we will be bringing in a lot of folks into the neighborhoods pick when we do that, there is a demand or, you know, certain types of services that pertain more to the local community and working-class. >> back in the day, we looked at mission street, and now it does not look and feel anything like mission street. this is the last stand of the latino concentrated arts, culture and cuisine and people. we created a cultural district to do our best to conserve that feeling. that is what makes our city so cosmopolitan and diverse and makes us the envy of the world. we have these unique neighborhoods with so much cultural presence and learnings,

that we want to preserve. [♪] one. >> commons 3rd thursdays is a monthly event series really activate service center and un plaza food and music and other social activities oil stephanie the vice president of operations for this. >> in 2016 an initiative called the service center launched an effort by a bunch of the city agencies along with institutional stakeholder and community partners to have a program that is how to get people out here on a monthly and

weekly and daily basis. >> my name is a - i'm with the program manager and also commons 3rd thursdays will have live music important in the. >> the city approached us to provide food and beverages at the event kind of the core anchor to encourage attendees to food gives people a reason to stay i really like this like it is really nice like everybody is having a good time. >> our goal to enjoy the space and eat and drink and listen to music we wanted to inspire people with the un plaza as a place to hold they're community events. >> it is a great way to get people to know about global music and cuisine a great way to bring people together. >> a natural beautiful

backdrop the asian art museum and . >> it is welcoming. >> two more events left in the series so, please come and enjoy and check it out we're having a great time. >> we love our city being a san francisco based on company it was important to engage request san franciscans and tourists alike. >> we want to inspire people and everyone interested in providing and coming out for a large or small-scale event reach out to the commons 3rd thursdays and we'll direct you're seeing

>> we're back if open session for july 18, 2018. >> supervisor kim: thank you, mr. clerk. mr. city attorney. >> deputy city attorney john gibner. the committee forwarded items 1 to 22 with full board for positive recommendation by unanimous vote. >> supervisor peskin: i make a motion to not disclose. >> supervisor kim: a motion not to disclose and we can do that without objection. mr. clerk, is there any further business before this committee? >> clerk: there's no further business. >> supervisor kim: thank you. meeting adjourned. .

>> good morning, and welcome to the july 18th audit and oversight commit. i'm jane kim and chair of the committeer and i'm joined by supervisor aaron peskin and a special welcome for our newest member, vally brant who is attending as a supervisor in her first committee meeting. and to recognize our clerk john carroll and thank the staff at sfgov-tv for making sure that our meetings are available both to the public and online. mr. clerk, do you have any announcements. >> clerk:? please make sure to silence your cellphones and complete the

speaker cards and any documents to be part of the file should be submitted to the clerk. and itemmings will appear on the july 24, 2018 agenda unless otherwise stated. >> supervisor kim:, can we call item number one. >> clerk: to approve a conditional land disposition and acquisition agreement with 2000marin street, for transfer of property at 639 bryant street for 2000marin street, for the public commission costs. and it's a conditional agreement under the california environmental quality act guidelines with closing conditions on city discretionary approve after the completion of environmental review. >> supervisor kim: thank you, mr. clerk and i want to invite our lead sponsor on this item which i'm a co-sponsor of to make opening comments. and i appreciate his diligence in working in my district and working to make sure that we could move forward with

community partnership and compromise to work for all stakeholders. supervisor peskin before we go to mr. carlin. >> supervisor peskin: i welcome supervisor brown as her first meeting as a supervisor though she's been around these parts for a long, long time in her capacity as staff to a number of my former and current colleagues. with that i want to start by thanking the public utilities commission, mr. carlin, and the general manager harlen kelly as well as the members of the commission itself and the office of economic and workforce development for finally bringing this to fruition. it has been a long time in coming. it is actually a remarkably complex, not only a land exchange that is before us, but is linked to the central soma plan and the land-use changes

that are afoot in the central south of market area in san francisco. and as we all know and we'll hear mr. carlin and the p.u.c., the public utilities commission of san francisco owns a relatively small piece of property in the south of market on branon and 5th street that has the same value as a piece of property in the district 10, commonly known as 2000 marin street, which would be an ideal long-term site for the public utilities commission for the yard and future uses that mr. carlin will describe. but there's an interesting twist. and that twist is that it will be an ideal location for the temporary relocation of san francisco's beloved flower market. which is also implicated in the central soma land-use decision.

so i hope that if this all works out that we will be able to have new construction in the south of market by tishman at the old p.u.c. lay down yard. and across street by kilroy where the market is located and it would be at 2000 ma are everyone in -- marin, and eventually when the project is done that the flower mart would move back into their brand spanking new facilities in the kilroy project. so that is the whole thing in a nutshell and i really again want to thank supervisor kim for letting me to meddle in her district. and the folks from the flower market, which is a complex organism in and of itself and the p.u.c. and with that, madam chair, i turn it over to you and mr. carlin. >> supervisor kim: i want to

also recognize that rosanna russell for the p.u.c. is available to answer questions as well as lisa chen and john sowitski to answer any question in regards to how this interfaces with the central soma plan which is also before the land-use committee currently. and then we'll go to the senior manager of the budget and legislative analyst report to offer his remarks. mr. carlin, thank you so much for being here. >> good morning, i'm michael carlin, the deputy general manager for the public utilities commission. chairman kim, vice-chair peskin and welcome supervisor brown to a very long complex negotiation. and i'm going to try to get through it rather quickly so that we can entertain questions. so this is an exchange between 2000 marin and 639 bryant street and it's a conditional exchange so it's not a done deal as of

yet. this is 639 bryant street, about a 1.4-acre site owned by the p.u.c. and currently used by the power enterprise. supervisor peskin said that it was a very small piece of property but 1.4-acres in san francisco is actually quite large. what we're looking at is actually -- and he's also mentioned that basically we are doing an exchange and the appraised market value for this 1.4-acre site is $63 million approximately. we also rent a site at 651 bryant street. this is office and warehouse space. it's a lease that expires in 2019, next year. we do have a 10-year option on the property. and the annual rent is approximately $300,000 a year with a 2.5% increase for the next year of the lease. and this is what we're talking about today is the 2,000 rent

site. and it's about a 7.9-acre site and it's bound by caesar chavez and that's evan street that runs down one side of it. so ooh ideally located to our corporate facilities down in this section of the city. we have our southeast waste water treatment plant down there and our water department yard in the same vicinity. and locating our power enterprise yard in that location with the idea that there would be further expansion of our needs for land in that area for our enterprises. it's much larger than the site that we currently use and it actually has a appraised value of $63 million as well. so that's really an important factor here that the appraised values done by the same appraiser with the same instructions under city supervision came out with those numbers. there are a couple key terms that we have in the agreement right now. one is that basically the developer will pay for what we call phase two environmental

testing. this is to look at hazardous materials on the site of 2000 marin. we have a phase one report and there's a history to this site so we're going to do a much more extensive testing of the site to look at where the contamination might be and what kind of contamination would be there. this is important to us because when we start programming the site we want to know sort of what the layout of the site could be. and they will cover our transactional costs and our relocation costs, power enterprise relocation to the 2000 marin site. so those are covered by the developer. we will reimburse the developer for temporary facilities at 2000 marin. we don't know what the long-term outlook will be and we have an opportunity to relocate the flower mart at the site. and so we would actually share the site for several years as we develop our long-term plans for this site. there's also what we call a hydrogen peroxide tank at 639

bryant street. and it's a chemical that we drip into the sewer system that prevents odors in the downtown area. and the developer has agreed to relocate this site either on the 639 bryant street or into the public right-of-way. and we have that as part of the agreement as well. so we see that basically that we have a process that we go through. we don't clear our property surplus until the actual transaction takes place. so at this point we haven't declared it surplus but we will once this goes back to the sfpuc next year and we declare it a surplus and complete the transaction. we will save quite a bit of money by not renting a warehouse at 651 bryant street. over an 11-year period that is saving us substantially. and we tend to occupy the entire site of 2000 marin and we have lots of our enterprises located in that area. we have need for more space and

we're allowing warehouses now and it will allow us to consolidate into one location. that concludes my presentation and i'm glad to answer any questions. >> supervisor kim: thank you so much. any questions from the committee members? seeing none we will move to our budget legislative analyst report. >> good morning, supervisors, dan gonshur with the budget legislative office. it approves the disposition and the acquisition agreement between the city through the public utilities commission and 2000 marin property l.p. which the commission would transfer ownership of the pars parcel at9 bryant street to 2000 marin property l.p. in exchang exchanr this. and as you can see in the summary on page 2, the first of which is that while sfpuc staff state that the property exchange

at the existing city property at 639 bryant street or 2000 marin street is necessary for the future expansion of the power and water enterprises the reason and the scope of the expansion are not identified. and we have recommendation to that policy consideration which is on page 11 of our report. recommendation number 3. which is to amend the legislation to request a written report from the public utilities commission general manager on the potential scope of the power and water enterprise expansions, including the potential increase in customer infrastructure, p.u.c. staffing, and other revenues and expenditures associated with the expansion. as well as the timelines for the expansion. our second policy consideration is that the appraised value of the property at 2000 marin street of $63.6 million does not

account for potential environmental contamination. the property value could be less than the appraisal if the environmental site assessment finds that the property cannot be used for the public utilities commission's intended purpose due to environmental contamination. and our recommendation to that actually -- we always point out on page 9 of our report that if the public utilities commission determines based on the phase two environmental site assessment results that the property is contaminated in a way that makes the property unsuitable for commercial development, that the commission may extend the time period for the exchange or terminate the exchange, or negotiate with the developer for an appropriate remediation strategy. according to the conditional land-use disposition acquisition

agreement, the city's acceptance of the environmental condition of 2000 marin street will occur only after the public utilities commission has an opportunity to review and approve the condition of the property. our recommendation to that policy consideration is recommendation number 4 on page 11 of our report, which recommends that the proposed resolution state that the board of supervisors policy is that if the phase 2 environmental site assessment identifies contamination that makes the property unsuitable for the intended use and occupancy of the public utilities commission and if the public utilities commission chooses to continue with the property transaction, the final property exchange transaction will provide for the developer to fully mitigate all environmental contamination, to make the property suitable for the intend the use and occupancy of the public utilities commission. and/or to reduce the exchange value of the property to fully account for the costs of the environmental remediation to make the property suitable for

the intended use and occupancy of the public utilities commission. and our last policy consideration, which is again on page 2 of our report, is that the planning department is expected to request a waiver of transportation sustainability fees charged to tishman spire, the parent company of 2000 marin property l.p. for the mixed use of the develo development which includes 639 bryant street. as consideration for the public park to be developed by tishman spire, the loss of these fees could potentially be offset by assessing such fees to other development projects or through another funding mechanism such as the central soma community facilities district special tax. our recommendation on related to that policy consideration is recommendation number 1 on page 11 of our report which states

that we recommend that the board request that the planning commission to in considering the potential waiver of the sustainability fees for the future mixed use development of the property bounded by fourth, 5th and bryant street to want include the reimbursements of $245,000 to the public utilities commission for transaction costs and calculating the fee waiver to consider the impact of the potential transportation sustainability fee revenues on bicycle, pedestrian street and transit projects in soma. and to consider the reasonableness and the feasibility of recouping the potential loss of transportation sustainability fee revenues through agreements with other private developers. we also recommend that the board request that the planning department to include the ongoing costs to the city to maintain the park and any agreement with the developer to develop the park. and our final recommendation is to approve the proposed resolution as amended as a policy matter for the board of

supervisors. >> supervisor kim: thank you so much for the report. any questions for the b.l.a. or for the p.u.c. -- o or the planning department -- supervisor peskin. >> supervisor peskin: as to the phase two environmental assessment when do you expect that the p.u.c. will have that? >> we expect to have it probably early -- or late this year or early next year. >> supervisor peskin: what does the phase one seem to indicate albeit the phase two is not completed? >> so this is my interpretation of phase one and only my interpretation of phase one. it does indicate that there may be some pockets of contaminated soils. this was an industrial site over time. what we're looking at as we go forward in programming the site we'd like to be able to negotiate with the developer on what is the appropriate action going forward, rather than

having the prescription that is contained in the recommendation from the budget legislative analyst report. >> supervisor peskin: and i assume that the current owner tishman spire has some recourse to the previous owner who would presumably have some liability as the polluter and that would be the hurst corporation? >> actually, they do not have any recourse. so at this point in time tishman spire owns the site and they have purchased it without any recourse going back to previous owners. so we would have no way to go back to those polluters under the super fund act to -- to appropriate responsibility to each one of those. what we prefer to do -- again, when i talk about programming the site, i'm talking about what we put there on the site. and right now it is being used for commercial purpose for commercial transportation

company to park their vehicles there as well as to have some of their offices and such. it's a large site. and so we're looking at it as what we use the site for and laying down areas for pipe and large pieces of equipment. we could avoid a lot of those contaminated areas and that's why we want to negotiate with the developer on how we actually use that site in the future. what this says is that we don't have that ability to negotiate, we have the developer that has to remediate the site to whatever use we actually come up with in the future. >> supervisor peskin: and do you have the ability to unit unilaterally terminate? >> yes, sir. >> supervisor peskin: and then i guess to supervisor kim as it relates to the central soma district, i would certainly defer to you as to the budget analyst first and, second, suggestions -- i think that the third one relative to requesting a written report from the g.m.

of the p.u.c. makes perfect sense. >> and i could address that in a certain way that. we actually do 10-year projections, what are our needs and, you know, what our customer revenue will be. so that's very easily information that we can provide to you. >> supervisor kim: thank you, supervisor peskin. our office is currently working through valuing all of our key sites in the central soma plan, both the contributions and the conference of value and negotiating different things, including the contribution and what might be reimbursed as fees and what may not. >> supervisor peskin: correct me if i'm wrong, i was under the impression that tishman would bear the cost for maintaining the park at that location? >> supervisor kim: that is my understanding as of today. but, mr. chen, i don't know if

you want to clarify. >> good morning, lisa chen with the planning department. so currently the thought for the maintenance costs, the ongoing maintenance costs for the park, is that they could be fundable through the c.f.d. and we have $15 million allocated over the next 25 years for maintenance of various public facilities and parks. we have other funds that are set aside for cleaning. so we do believe that is a good stable source of funding for service needs. >> supervisor kim: thank you, miss chen. so at this time we'll open up for public comment on item number one. if you would like to speak -- i'm so sorry, i have a few speaker cards. sylvia burgess and laura windsor and mike tario and eileen tillman and vance uashia. if you would like to speak please line up on the right side

of the chamber. and we will acknowledge you. >> okay, thank you so much. my name is laura windslor and i'm a floral designer and a small business owner here in san francisco. been in business for more than 25 years. i've had the opportunity to speak to some members of this committee previously about our concerns for relocating the flower market. i'm here today to speak in support of the property swap that is being considered here. the 2000 marin site is really the only site that is feasible for relocating the flower market during the construction at our present location. and we are very excited that this property swap is going to take place and we'll have a temporary location to go to. in light of some of the comments regarding the environmental impact and possible contamination, i think that our entire community would urge the stakeholders to move forward as

quickly as possible to determine what the site holds in terms of contamination, what needs to be done to remediate it, because the longer this is delayed the more difficult this situation is going to become for those of us at the flower market who really need to find a new home. so anything that you can do to move that forward would be appreciated. and we very much appreciate all of your help so far. thank you so much. >> good morning, my name is eileen tillman and i have been a resident of soma for over 48 years. approving this swap agreement is an important step to bring in much-needed 40,000 square-foot park and 13,000 square-foot affordable housing site to this area. the lumber yard as we endearingly refer to it because of the history of the property, has impatiently awaited by the current neighborhood, made up of

the baby center, the vision of johnson & johnson with over 200 employees, directly across the street from the park. and 100 loft units and the pons with condos and the multiple smaller residences and businesses. all within one block of the proposed park. the proposed 72-unit affordable residential units will spill out on this park as well. this, in addition to the office buildings planned at 598 brandon and the proposed development will benefit from the park. the city and tishman spire have worked together to engage the community on park design that include playgrounds, a dog run, and space for the community to have events. tishman spire has committed to maintain the park to make sure that it's a clean and a safe place for local residents and workers to enjoy. the surrounding neighbors will also take an active role to

support the safety and cleanliness of the park. and san francisco is in dire need of affordable housing. this development will provide 72 units to this need. thank you. >> mike ontario with the trades council and a short timer. welcome to supervisor brown and good luck here. i have to say that this particular measure is a combination of luck and skill. luck in that the kind o synergis offered by this property exchange are rarely available in san francisco. skill in that that exchange is not without its complexities as mr. carlin and the budget analyst have each in his own way indicated. i want to thank supervisor peskin for his exercise of skill in this and supervisor kim for allowing supervisor peskin to tromp around in the flower beds

in your district. and the staff of the public, tits commission and the city's realty department for their work on this and we urge you to approve the exchange. thank you. >> supervisor peskin: i forgot to acknowledge the department of real estate, you're hereby acknowledged and commended. >> thank you. supervisors, i'm advance oshios a resident in the san francisco flower mart. please excuse the tremor in my voice. we want to continue to urge you to move this swap forward as quickly as possible. we had a very difficult time finding a location in which the flower market can relocate. in the interim while the new flower market is being built. this location actually provides a great place in which it is

easily accessible by our customers and is also a great place for tenants to be sustained during the relocation of the flower mart. i would like to thank supervisors peskin and kim for continuing to move this forward and continuing to help us to find a location in which we can be sustainable during this period. thank you. >> supervisor kim: so are there any other members of the public that would like to speak on item one? seeing none, public comment is now closed. >> clerk: madam chair, i have a number of diminimus amendments that i have handed out to you that originated with the p.u.c. and its commission which i would like to move and adopt those changes, that include a reference to the fact that the central soma plan was recommended for approval by the planning commission to this board of supervisors on may

10th and it is awaiting approval by the san francisco board of supervisors. it includes an updated reference to the exchange agreements and the conditions which have been modified since the introduction due to the commission input as well as a reference confirming that the developer's proposed lease to kilroy to meet the condition is subject to approval by the sfpuc commission as mr. carlin described. and that any lease will be short-term in duration as well as the actual appraisal values that have since been established and that is in a red line and clean version that i have submitted to you and to the clerk of this committee, mr. john carroll. >> supervisor kim: thank you so much. so we have a motion to amend as supervisor peskin has articulated. can we take that motion without opposition? we can do that. colleague it's -- >> supervisor peskin: can we move the item as amended to the full board with a positive recommendation? i would make that motion.

>> supervisor kim: so a motion to move item number 1 with recommendation to the full board and we can do that. a second we can do that, again, without objection. mr. clerk, call item 2. >> clerk: to execute amendment number 1 to agreement number cs247r, customer and administrative services for the program with calpine l.l.c., for continued support of the clean power s.f. and to authorize the general manager of the san francisco public urkts tilts commission to execute the agreement. and increasing the agreement by $14,030,000 to not exceed $19,630,000 and to extend the term of the agreement up to three years for a total term of november 1, 2015, through october 31, 2021, with a three-year option to extend the contract. >> supervisor kim: thank you so much. and we have mr. i