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. michael hiam,

the director of clean power s.f. here to present on this item. >> thank you, good morning, supervisors. i'm the director of the clean s.f. program for the power enterprise. i also wanted to welcome supervisor brown, we look forward to working with you. before you is a resolution to authorize the amendment to c cs247r, with calpine energy solutions to provide data management and billing and customer care services for the sfpuc clean power program. i have a few slides for and you some remarks and i can take your questions about this item. by way of background, clean power s.f. is san francisco's community choice aggregation program. authorized by assembly bill 117, and adopted by the board of supervisors and mayor. cca allows a city and/or a county to become the default

electric supplier in its jurisdiction in partnership with the local investor-owned utility. by allowing the city to determine the source of its energy supply, and to direct more of its electric customers' dollars towards renewable and clean sources of energy, clean power s.f. is a key strategy to meeting the city's goal to eliminate greenhouse gases from its well-being supply by 2030. by statute, cca is an opt out program. clean power s.f. began serving customers in may 2016 and we are enrolling customers in phases now until city-wide enrollment is complete. as of july, 2018, clean power s.f. has completed enrollment to approximately 30% of the eligible accounts in the city. and our program retention rate is over 96% to date. under this contract calpine energy solutions provides essential business services to

the clean power s.f. program, including meter data management which involves hosting a customer information database and exchanging billing and meter data with pg an pg&e with proto. and billing with hundreds of thousands of data points daily to ensure accurate and timely billing for our customers. and customer service for which calpine staff manages the call center. the initial contract was awarded in november 2015. it featured a three-year term and provided the city with options to extend for two additional three-year terms. with plans to enroll another 275,000 additional electric accounts over this fiscal year, clean power s.f. is in a critical stage of its development and growth. extension of this contract ensures continuity of essential clean power s.f. operations through the enrollment period

and the initial years of city-wide service. to be successful during the upcoming enrollments, clean power s.f. will need sufficient call center resources. calpine has established a great track record to date. under this contract, calpine provides expertise and resources that are not currently developed at the sfpuc for clean power s.f. however, i want to make clear that the sfpuc is working to transition call center operations in house over this next three-year term of the contract. and under the contract calpine will facilitate this with training of our staff. it will continue to provide the customer information relationship management systems to support call center operations. and the sfpuc is analyzing the feesibility of bringing billing and management tasks in-house as well. our initial analysis indicates a significant investments in i.t. systems that would be required.

and these investments are not practical at this time to provide the services in the near term. the extension of this contract will provide time for the sfpuc to develop interim resources and capabilities. it will also allow existing program staff to focus on other critical program operations to ensure the continued success of clean power s.f. during its enrollment period. supervisors, the amendment before you would extend the current contract term with calpine energy solutions three years to october 31, 2021. the amendment also increases the total contract value to approximately $18.8 million. this increase in contract value is due to the sfpuc's plans to complete city-wide enrollment during the contract period. the contract costs are based on the number of customers served by the program and supported by

the contractor. we are anticipating that the clean power s.f. will increase its customer base from about 115,000 customers as of the end of this month, to 375,000 accounts served by july 2019. the sfpuc negotiated a price reduction as part of this extension that saves the program $2.2 million over the next three-year period. and that concludes my comments. i'm happy to take any questions that you may have. >> supervisor kim: thank you very much and seeing no committee members we'll go to our budget legislative and analyst report. >> supervisors, dan goner. the proposed resolution will have the exercise of the first amendment to the contract between the public utilities commission and calpine energy solutions. the proposed amendment would extend the contract by three years to october 31, 2021.

and the option of extending the contract for an additional three years to october 31, 2024. and increase the contract amount to not exceed $14,030,000 from $5.6 million to $19.6 million. as shown on page 4 of our revised report or page 15 of the original report, you can see that the actual and projected contract expenditures to octob october 2021 total $18.8 million. including a contingency of about $1.5 million. a recommendations are including to amend the proposed resolution to not exceed $860,775. from $19,630,000 to $18,69, 225. and we recommend that the

clarification of the final option to extend the contract by three years to october 31, 2024 is subject to future board of supervisor approval and approval of the proposed resolution as amended. >> supervisor kim: thank you so much. and so at this time we'll open up for public comment on item number two. i'm seeing none so public comment is now closed. supervisor brown has a question or a comment. >> no, i have a comment. i'm just really excited that this has come this far. actually when i started as a legislative aide in 2006 this was one of the first projects that the supervisor had me jump on. and to see that it has come to this point i just want to thank the board of supervisors to get it through. also the mayor's office and p.u.c. and i'm really excited. so congratulations to everybody

that made it this far. so, thank you. >> supervisor kim: thank you supervisor brown and also i want to appreciate many of the supervisors that have worked on clean power sf. very excited that it's coming to my district although i'm already a super green customer. so just great to live in a city where we have these options. so seeing no further comments or questions, can we take a motion to move this forward? >> supervisor peskin: do we need to clarify per the budget analyst recommendations the amendment to reduce the contract not to exceed $860,775,000 and to amend the resolution to clarify that exercise of the second and final option to extend by three years to october 31, 2024 is subject to future board of supervisors approval? >> supervisor kim: we do have agreement with the p.u.c. as well. so supervisor peskin has made those two motions. so we will take those motions without objection. and do we have a motion to move

this forward? so we have a motion to move this forward with recommendation to the full board and, again, we can do that without objection. mr. clerk, call the next item. >> clerk: item three to have the property lease of property to shoreline associates limited partnership and m.p. shorebreeze associated l.p. for a term of 60 years. with the base rent of $100,874 per year and with a 3% annual inflation factor to commence following board approval and authorizationing the director of property and/or the san francisco public utilities commission general manager to execute documents, make certain modifications and take certain actions in furtherance of this resolution as defined herein. >> supervisor kim: this is the p.u.c. day at committee. i want to recognize the deputy director of real estate at the

san francisco public utilities commission who will present on this item. and i wanted to also let our committee know that peter divial of the corporation is here and available to answer any questions. >> thank you, good morning, supervisors. tony vardo, with the p.u.c. the resolution before you is to approve the terms and conditions and authorize the general manager of the p.u.c. to execute a new 60-year lease to m.p. shoreline associates limited partnership and m.p. shorebreeze associates l.p., as co-tenants. these two are affiliated with the housing corporation, and an affordable housing developer that has served the bay area for almost 50 years. the premise of consisting of a portion of the sfpuc right-of-way in mountain view known as parcel 201a and it's two acres in size.

it's dilleniated in red here in the diagram. it's adjacent to the shorebreeze apartments, a 100% affordable housing complex that serves low-income families and low-income seniors. and the current tenant under an existing 51-year lease that expires march 31, 2031. the p.u.c. parcel provides parking, landscaping, inaggress andand egress and emergency vehe access to the shorebreeze apartments. and as you all know there is a shortage of affordable housing in the bay area and in response to this shortage the city of mountain view decided in 2014 to rehabilitate and expand the shorebreeze apartments. in january of this year the city of mountain view amended its precise plan to add 15 net new

affordable housing units at the shorebreeze apartments. and this is an artist rendering of what that redevelopment will look like. the private and public funding partners have broad support of the development. and it includes the county of santa clara housing authority and the city of mountain view and the housing trust silicon valley, and the state of california. so the existing lease doesn't expire until march 2031, so one might ask why we're entering into a new lease today. that's because midpin housing funding partners require a 60-year term with pre-determined ground lease rent to meet regulatory requirements for tax credits and local funding. because the existing lease has only approximately 13 years remaining on the term, the p.u.c. agreed to a new 60-year

lease to accommodate the tenant's financing program and also to refresh the legal provisions in the lease. the initial rent is $100,874 per year and represent an increase of about 152% over what midpin is currently paying under the current lease. rent will increase every five years by 15.9% which equals an annual compounded rate of 3%. the stepped rent schedule is derived from the current fair market value determined by an m.i.a. appraisal dated january 25, 2018, by clifford advisory, discounted at 50%. the case for the 50% discount, the staff believes that midpin housing and its affiliates are entitled to a 50% discount because it will facilitate the expanded affordable housing program.

we'll go over this consistent with the san francisco public utility commission's 2011 community benefits policy that seeks to better serve and foster partnerships with the communities and all of its service areas and to ensure that these public benefits are shared across all communities. and in addition the co-tenants are controlled by midpin housing and all of the entities are non-profit organizations with a charitable purpose. and midpin's affordable housing programs are considered an important community benefit to mountain view and other p.u.c. service areas. and, finally, i want to make a comment about the long-term of the lease. typically the p.u.c. disfavors leases of this length. because of the potential cost to the p.u.c. of disrupting a tenant's use of the p.u.c.'s property in the event of a pipeline emergency repair or a pipeline improvement project. but p.u.c. is willing to enter into a longer term lease in this

case to accommodate midpen's lending partners, but in return for this accommodation, the p. krumplet has -- p.u.c. shields the p.u.c. from any costs associated with the future disruption of midpen's use of the premises results from an emergency or pipeline improvement project. and i will leave it with that and i won't go into the details of what the lease prescribes but it's safe to say that the p.u.c. is protected. that is all. are there any questions? >> supervisor kim: there are no questions from the committee members at this time. so at this time we'll open up for public comment on item 3. thank you so much, mr. vardo. public comment is now closed. colleagues can we take a motion on this item. >> supervisor peskin: i move that we move this resolution authorizing the lease of properties described by staff to the full board with recommendation. >> supervisor kim: we have this motion and we can do that without objection.

mr. clerk, can we call the next item. clerk: to approve the jurisdictional transfer of city property at the intersection of geneva avenue and san jose avenue, assessor's property block 6973, lot number 39 from the san francisco municipal transportation agency to the mayor's office of housing and community development for $6,150,000. affirming the planning department's determination under the california environmental quality act and finding the proposed transfer is consistent with the general plan and the eight priority policies of planning code. >> supervisor kim: we have miss goram, the real estate division, presenting on this item and also i want to recognize ray robolese with the development manager facilities with the sfmta. and amy chan from the mayor's housing and community development. >> good morning, supervisors. before you for your consideration is a resolution authorizing the jurisdictional transal of the city-owned property at the intersection of

geneva avenue and san jose avenue. commonly known as the upper yard. from the san francisco municipal transportation agency to the mayor's office of housing and community development for the construction of approximately 130 affordable units. back in november 2012, the sfmta board of directors unanimously passed a resolution supporting this sale of the yard and the director of transportation to work with moe and other agencies, including real estate, to advance such sale. the property is currently used as a parking lot for employees. and shortly after that resolution an appraisal was completed and valued the property at $6.15 million. and that was conducted in november 2012 when the departments got together to try to negotiate an m.o.u. the m.o.u. was finalized back in 2014 after several due diligence and whether moe could actually

build and who would be funding it and how it would be funded and who would be the contractor. the parties came to the m.o.u. and the terms and the final price of $6.15 million. and although an appraisal wasn't done by code it was done by agreement of the parties. after the negotiations were completing, a new m.o.u. was made in 2016, i believe, -- or 2014, just to continue the due diligence by moe. and including coming to terms with bart which is right next door on a 30-foot no fill easement that moe needs to be able to construct all of the units that it would like to get to on the land. those negotiations are continuing today but almost final and moe believes in the next few months they'll have an agreement with bart. the agencies now wish to

transfer jurisdiction based upon the fact that moe is now pretty clear on the direction that it's going to go and what it can build and if you have any questions on the underlying program as the chair indicated, we have representatives from sfmta and m.o.h. >> supervisor kim: seeing no questions from the committee members we'll move to the repo report. >> supervisors, the proposed resolution approves the jurisdictional transfer of the upper yard located at geneva avenue and san jose avenue from the san francisco municipal transportation agency to the mayor's office of housing and community development for a transfer fee of $6,150,000. and the proposed resolution affirms the planning department's determinations that the jurisdictional transfer is not a project under the california environmental quality act and is in conformity with the city's general plans. on page 19 of our report at the

bottom, exhibit 1, you will see the funding makeup of the transfer fee, includes about $3.7 million from the city's affordable housing fund as well as $2.5 million from the community development block grant. we recommend approving the proposed resolution. >> supervisor kim: thank you so much. and at this time we will open up for public comment on this item. >> and we have a major shortage of housing for low-income and very low-income bracket people. so for you to order a transfer of funds that is targeted for that class of people and move it to another area of the city which is not as vulnerable and doesn't have the type of emergency of homelessness and people with mental and physical disabilities and people in wheelchairs and our veterans,

that is an insult and disingenuous, scandalous, and in my view seriously professional misconduct. it's showing a total disregard for the people who are in most need and you have been neglecting them. then you turn around during the campaign season after you make an announcement on the offices that you're running for and the first word out of your mouth is that you want to keep your promise to take care of the homeless people. it's disgusting. this is another example of it. how could you even propose a measure in that manner where you are taking funds from the organization that is supposed to be helping people? the organization is supposed to be helping is not even managing the funds right. then when you get a housing opportunity for low-income bracket people you don't include the inclusionary law where you're to include people. mission rock, for example. supposed to be 15s for for low income and very low-income bracket people.

and it's 1,500 units and that means 250 units is supposed to be for low-income and low-income bracket people and you don't even follow the rules and the regulations to house those people who are eligible. which is the very people who are in the street and going around and talking about how they want to help. when are you going to quit this willful misconduct? it's disgusting. you've got the most amount of money you ever had in your life because of tax cuts and because of the president of the united states and you're still not... >> supervisor kim: thank you so much. and any other members of the public that would like to spook on this item? seeing none, public comment is now closed. colleagues can we take a motion on this item? >> aye. >> supervisor kim: so we have a motion to move this forward with recommendation to the full board. and we can do that without objection. thank you, mr. clerk, call the

next item. >> clerk: agenda item number 520 authorize the approval -- authorizing and approving the lease of telecommunication facilities on the roof the mobile net of california limited partnership for an initial continue-year term at a rent of $60,000 for two five-year options to commence after approval by the supervisors and the mayor on their discretion. >> supervisor kim: thank you so much. oh. so -- >> this is josh keenan from real estate. >> supervisor kim: okay, great. >> i would keep this brief and i open to any questions. but this is verizon atop 1 south van avenue. and thi we're trying to facilite

the relocation off the donut shop at one oak. it's a 10-year deal with two five-year options subject to approval. $60,000 a year accrued to the city. any questions? >> supervisor kim: i do not see any questions from committee members and we appreciate your very brief presentation. so seeing no other presenters or questions or comments from committee members we will open up for public comment. seeing no public comment public comment is now closed. colleagues can we take a motion. >> supervisor peskin: i move to the full board with recommendations. >> supervisor kim: we have a motion and a second and we can do that without objection. mr. clerk, call the next item. >> clerk: agenda item number 6 authorizing the sublease of 19,975 square feet at 1735 mission street with healthright 360, a california non-profit corporation to implement a new electronic health record initiative for the department of public health for a three and a

half term to commence july 1, 2018, through jeopardy 16, 2022 at the monthly base rent of $52,135 for an annualized initial base rent of $625,617 with a 1% annual increase on each january 17th. reimbursement up to $764,498 to landlord for tenant improvements and additional charge for utilities and services per month. >> supervisor kim: so we have miss goram on this item and i recognize greg wagner back in chamber with the san francisco department of public health and lisa ziax-chan, all with the department of public health, here to answer any questions if the committee members have any. >> thank you, good morning again. before you for your approval and recommendation is a short-term sublease of 3.5 years for the department of public health. as stated approximately 19,975 square feet from the current

tenant healthright 360 at 735 mission street. the sub-lease will facilitate the staff training with d.p.h.'s health records initiative that has it all under one record system. it will provide job training programs that serve the community, the broader community and provide space for d.p.h. community and non-profits for public training such as medical, c.p.r. training and whatnot. approximately 67% of the space will be for nine training rooms. the remainder of the space is for office use related to the i.t. staff and swing space for other d.p.h. staff that will be coming out of other rented or leased spaces at various times during this short-term lease. and ultimately although the staff will be going to laguna honda in approximately 2022. and if necessary d.p.h. can provide more detail but

generally d.p.h. will be providing training to over 1,000 staff clinicians and clerks and others per year in these nine various training rooms. there's also seven other training rooms, five located at sukkoberg general and two at laguna honda. prior to commencing negotiations with healthright 360, both the department and real estate attempted to search for training space within city-owned buildings within commercial space and just buildings to get on a short-term basis. we could find none for various reasons. the city-owned space is limited both in the time that they could use it in because other departments need those spaces and have already booked it. and including the timing during the day and on weekends they needed those times to be able to

be using those spaces. and then the cost. the cost was much higher if we were going to go outside and try to actually rent training spaces, conference rooms and whatnot. about twice of the expense of this particular short-term lease, sub-lease will be. and in addition there were no just vacant spaces available with that much square footage. in addition the square footage that was available and was just either fair market value or over fair market value. the negotiated rent here is under fair market value at approximately $2.61 per square foot per month or annually $31. which is about half of the fair market rate. it is approximately 52,135 per month and the lowest space that we could find was at $38 a square foot. if you have any programming

questions, again, mr. wagner is here from the department to answer. >> supervisor peskin: you are aware of the p.d.r. issue? >> yes. most of the space going to be used, and they need it at various times throughout the lease and we have to do a little bit of p.a. and t.i., 10ant improvements and then the training. and d.p.h. also has other programs that can come in afterward and use it for that and we would like both the department and the real estate would like to have more of availability for non-profits to come in and to do their training and to use it for those purposes. >> supervisor peskin: thanks. >> supervisor kim: i do have a number of questions on this item but i'll go first to the b.l.a. report. >> supervisors, with the budget legislative analyst office. it approves a sub-lease between

the department of health and the leaser for 20,000 square feet of space at 735 mission street. the lease will be for 3.5 year term from july 1, 2018 to january 16, 2022 with no options to extend. on page 25 of our report, you will see in table 3 the total cost for the proposed sub-lease are $3.8 million. the primary need for space at 1735 mission is for the six-month period in calendar year 2019 when d.p.h. will conduct training for all staff on the new electronic health records system. the need for this space after the end of the electronic health records system training in 2019 through the end of the sub-lease in january 2022, is less well defined. and there's a slight amendment to our recommendations under

what are the amended recommendation is. it's to approve -- approval of the proposed resolution as a policy matter for the board of supervisors. if the board of supervisors approves the proposed sub-lease the board should amend the proposed resolution to request that once the training space is no longer needed for electronic health record training that the director of real estate further evaluate options to use this space at 173 1735 mission streeo meet the city's need for temporary space and to make more efficient use of the 1735 mission street space for the remainder of the sub-lease term. >> supervisor kim: thank you so much. before we move to public comment i just had a couple questions and i don't know if this is for the department of public health or for the real estate division. but given the budget legislative analyst report, what is the plan for use of the space after the six months of training?

>> good morning, supervisors, greg wagner, with the department of public health. so a fair question, as the budget analyst notes in their report there will be an extremely intensive use of the system -- or of the space as we lead up to the implementation of our e.h.r. system. during that period we're going to have to train many thousands of individual employees on the use of that system and so that will be an extremely intensive period. beyond that period of time as you heard earlier, or even after the system is implemented we'll have about 1,400 people a year that will have to have training on the system ongoing. and that will be new employees, it will be residents at zuckerberg who are new to the system and so there will be that ongoing need. in addition, we have a number of training programs throughout the department. we have our e.m.s. system

trainings, we have food safety trainings, behavioral staff interim trainings, i.t. programs to bring in terms from the city into our i.t. system. and so all of those trainings that we're kind of doing on-the-fly across the department we can bring those into this space, use that to expand and enhance our training programs and also to make it available to other city departments as needed. the other benefit of this is that we currently have significant space shortage department-wide this will allow us by bringing all of those training programs into this location to decompress and avoid having to purchase other temporary space at market rates. so it will be a very intense period where we'll be using this for the e.h.r. training but ongoing we'll have a good use of this space and it's a good opportunity for us to continue to improve our training

programs. >> supervisor kim: what will you be doing on the site, because the sub-lease begins on july 1st which actually has already begun. so what is the plan for the site today? >> today? as soon as we have access to the site we'll do tenant improvements and then immediately after that we'll be ramping up the training of our e.h.r. project. the e.h.r. initial phase "go live" is august 3, 2019, so about a year from now. so our training program is going to be extending through the coming fiscal year as approach go live. and it serves as a site for some of our i.t. staffing that's at various spaces across the department. so we will be -- as soon as we have access to the site ramping up and using it very intensively as part of the lead to our e.h.r. program. and the training that will occur at that site, this is one of our -- well, from the program

perspective and from a financial perspective it's one of our -- probably the most important things that we'll do over the next several years because everybody who is involved in the department in clinical care is touching that electronic health record system. we need that for good clinical documentation and we need it for getting data captured in that system for quality measures and metrics and improvement. we also need it for billing. the system is responsible for billing accounts for about $600 million per year of annual revenues for d.p.h. so it's an absolute essential priority for us to make sure that our training program is very active so that we're making good use of the investment that we're making in the new e.h.r. system. >> supervisor kim: will the training program be daily? or sporadic? beyond the intensive six-month stage for training. >> so i can have one our program

folks come up with more detail if you'd like it. but it will vary over time. so we'll have a very intensive phase of training at the beginning, but then we have two additional waves of "go live" after that. so we'll start with zuckerberg and our primary care clinics and then we have two other smaller phases that will require additional training. after that the training will probably be less intensive and it will be more sporadic. but it will still be regular as we'll need -- as new staff come on and they need to be trained. >> supervisor kim: the space may not be utilized because the training is more sporadic during the 3 1/2 years. is that the lease with the actual property owner? >> exactly. we're essentially finishing off their lease and they have vacated the space to move into their new building. and the other piece of this is that as you heard earlier from real estate but we looked at

what it would take. our only other option is to do very short-term space rentals, so these daily rentals where they're geared towards corporate training events and you rent those for a one-day period and they're incredibly responsive and about $1,800 per room per day so the cost of doing that would be that we would have -- we would pay about a million dollars more than this lease and we would only have those spaces for six months. so we're saving money and we're acquiring this asset that we can use for other programs and to decompress our real estate crunch. >> supervisor kim: i realize this is a planning question but are services allowed in t.d.r.? >> i can defer to real estate but my understanding -- well, i'll defer to real estate. >> supervisor kim: i'm sorry, because i don't want to make you walk back and forth. didn't healthright 360 have office space as a sub-tenant or as a primary tenant on the site? i have been to this site several times and so a lot of the

services are provided out of the site plus there's some office space for the staff to provide services. okay. >> your latter question first. yes, healthright 360 did have office space there. they came in at various times over the years and for some of their space they actually got -- it came in before the law planning code changed and then they came in after the planning code changed. and i'm assuming they didn't understand that they probably should have gotten a conditional use permit to have the office space in what we will now be sub-leasing. so when the city looked into it and noted that it was p.d.r., it served our perspectives because you can have public training in p.d.r. we then had to kind of rearrange our thinking a little bit because some of this space will be used for the i.t. staff. there's no place to put them and they can put them there. but it's also going to be used when the intense portion is not

used so much to maybe use it as swing space for a couple of the other leases that are going to be coming to term before they can go to laguna honda which is in 2022. so two things occurred. one, we thought, okay, this gives an opportunity for d.p.h. to consolidate some of their training into one location until it can move to a permanent location if that be laguna honda or somewhere else. and, two, it allows a little bit of swing space for the -- for the spaces that will come to term during that interim. so it serves both. we -- >> supervisor kim: sorry to interrupt. if we were able to expand the uses under p.d.r. and that's something that we're doing in the central soma plan which is we're allowing both community facilities and government services to provide a p.d.r. are there some needs within d.p.h. where they could more fully utilize the space if we were able to provide that flexibility? >> we would certainly be open to

having that conversation. the other opportunity i think that was mentioned in the budget analyst report is that there are other city departments that can make use of that space. we are happy to talk about how that could work. so we are -- we're happy to have that discussion about what the best use of this space is going forward for the city. >> supervisor kim: okay. i would like to follow-up on this issue. i just want -- you know, i'm not inclined to support this, to be honest, a 3 1/2 year lease with the needs of the department of public health. but if there were additional office needs or service needs that could be provided on-site and there's some work that we can do with our planning department to provide that flexibility to d.p.h. so they can legally provide the services on-site. that is my preferred route. if we're going to invest this this 3 1/2 year lease i want to make sure that it actually serves the real estate needs of our city.

>> that's a fair observation. there will be about one-third of this building that is i.t. operating space. and -- >> supervisor kim: that's allowable. um-hmm. >> and contributes towards our space deficit. >> supervisor kim: my one last question is why is this coming to our committee retroactively? >> i think that -- do you want to answer that -- >> supervisor kim: i know that, you know, may and june is a very tough time for the schedule for the board of supervisors. but this happens every year and so i just feel that there has to be a little bit of anticipation in terms of making sure that we can schedule these items in a timely manner. >> i think that scheduling was one issue and getting on the calendar was another issue. and then the -- i'll say the -- the discussions and questions that you've been presented here were also questions and discussions that the b.l.a. had and that took some time. and i think that, of course, we

would love to work with the department and other departments if there's -- once we know what their complete use is over the long-term of the short-term sublease. and to have it fully used. our goal is not to have anything not used and we certainly need space for city departments and training. so i don't see that it would be not used. >> supervisor kim: okay. thank you very much. those are my questions and comments at this time. we'll open up for public comment on this item. seeing no members of the public we will now close -- oh, i'm so sorry. yes, please come up. >> my name is john hagan, the director of financial projects at healthright 360. i wanted to address a few items that you brought up. p.d.r., up to 20,000 feet is allowed for training, this is 19,975 square feet. i think they have expressed they'll be able to use the space for training over the 3 1/2

years. so i'm advocating support of this measure. >> supervisor kim: thank you. >> sorry, one more follow-up. it's cost reimbursed non-profit so this space is being opened and we're taking a loss on it. so i just wanted to mention that. thank you. >> supervisor kim: thank you. any other members of the public that would like to speak on this item? seeing none, public comment is now closed. and i do recognize the need for healthright 360 to rent out a space because you have a new building and there are many costs associated with new capital projects. and so i understand that we're also supporting a need of one of our really important community-based organizations in finishing this lease. i, you know, was going to initially vote against this item. what i'm happy to do is to vote this out without recommendation to the full board and over the

next couple days to spend some time talking about the department of public health and real estate. and the planning department, i just felt very hesitant about a space, even with the i.t. which would be sporadically used, but if we can increase the allowable uses on the site over the 3 1/2 year lease and allow g.p.h. to utilize it for other real estate needs i would feel comfortable supporting this at the full board. so i'm going to make that motion to move this item forward without recommendation to the full board. >> supervisor peskin: no objection here. >> supervisor kim: so we do that without objection and our office will reach out to your offices. thank you so much. mr. clerk, call the next item. >> clerk: agenda number 7 is receiving and approving the annual report for the fisherman's wharf and fisherman's wharf portside community benefit districts for 2016-2017 by the district law of

1994 and the districts' management agreements with the city. >> supervisor kim: you get applause when you come up to the mike. >> this is the fantastic work that the committee was doing. >> supervisor kim: before we hand over the mike i want to allow supervisor peskin to make opening remarks as the district supervisor of the fisherman's wharf. >> supervisor peskin: thank you, colleagues. i had the pleasure of being there at the inception of the fisherman's wharf community benefit districts. there's actually two of them, one on the portside and one on the land side. and it has not disappointed. i really want to thank troy campbell and his staff and the staff at the workforce development here at the city. they do a remarkable job and i have to say that as it will be before us for a vote on the 27th and they should look at

fisher -- they should look at the community benefit district to see just what an incredible asset it can be for a community, and i know that the fisherman's wharf community benefit district -- god, it's been a long time, you're getting ready to go through your renewal and i look forward to being of assistance in that. i'm quite hopeful that all of the individual properties and tenants that pay into it will see fit to renew it for another decade and a half. >> good morning, chris corgis with the office of economic and workforce development. we're part of the team that oversees the community benefit district program on behalf of the city. today we're here for the fiscal year 2016-2017 and annual report for the fisherman's wharf landside community benefit district and portside community benefit district.

as you may know the community benefit districts are governed by two codes, state law of the 1994 act which is streets and highways and code 36600 and the local law authorized by supervisor peskin, article 15, of the san francisco business and tax regulations code. during the review process ensures that they are meeting their management plans, that our staff has an annual review of their annual reports and their financial statements and we provide the board of supervisors with a summary m.o. in front of you. the fisherman's wharf c.b.d. has two portions as supervisor peskin mention bed. the property-based district is the landside district and contains 127 parcels. you can see it here in blue. and the portside business space district includes 42 businesses and it is the purple side fronting san francisco bay. the landside district formed in

2005 as an annual assessment budget of approximately $622,000. and the portside business-based district formed approximately a year later with a budget of $187,000 approximately. and both districts sunset on june 30, 2020. the staff of the fisherman's wharf, c.b.d. is headed by troy campbell and the district identity streetscape improvement and street operations and beautification and order and administration and corporate administrations. and troy campbell is here and will speak on later on in this presentation. before benchmarks oewd looks at all c.b.d.s are whether the variance between the budget amounts for each service category is within 10 percentage points from their management plan. in the case of property-based districts, whether in this case 5% of the actuals come from sources other than assessment revenue. and benchmark 3, whether the

variance between the budget amounts for each service category was within 10 percentage points from the actuals. and benchmark 4, whether the c.b.d. is indicating the amount of funds carried over from the current fiscal year and designating for the products to be spent in the upcoming fiscal year. for benchmark one, the landside portion of this community benefit district did that makes benchmark as did the portside for fiscal year 2016-2017. for benchmark two, the community benefit district raised over 26% in non-assessment revenue which exceeds their goal. and for benchmark 3, the landside portion of the district did meet the variance requirements of comparing their actuals to their budget and has historically met this requirement. for benchmark 3, part b, the portside portion of the district also met this requirement and have historically met this requirement as well. and for benchmark 4, the cbd did

include their carryover for both portside and landside in their annual report and did make this requirement. oewd found that the fisherman's wharf c.b.d. is successful in meeting its requirement on a continual basis. they have hosted a successful events and have partnered with the broader community to make the wharf an area and destination for local residents of san francisco as well as the broader bay area. they have experienced increases in the amount of graffiti, trash and safety concerns compared to the previous annual report which mr. campbell can address. and the cbd will sunset on december 31, 2020. oewd recommends and has been working with the c.b.d. on their renewal process. in conclusion, the c.b.d. has performed well in implementing the plan of the landside and the portside areas and they have an active board of directors and committee members. if there's no questions for staff mr. campbell is here to

present on the program and achievement of the districts. troy. >> all right, good morning. thank you so much, supervisor peskin, for the kind words. i appreciate it. and also congratulations to our new supervisor. i will make this quick and painless as possible and go through this real quick. i wanted to just go through some of the accomplishments, big and small, for the c.b.d. of that fiscal year. we were able to add a fourth ambassador that year which was much needed because we have a 30-square block area and a lot of litter, trash, things to pick up and people to talk to and people to assist. and these are staff for our ambassador program and the highlights being in that fiscal year they helped over 13,000 people. they picked up over 16,000

pieces of trash. and they responded to 2500 complaints. and over 2,000 public disturbance and pan handling complaints. and for that year we had work with the m.t.a. and the national park service to put up the following sign welcoming people to the fisherman's wharf and we refurbished a similar sign at the taylor street cable car turn around. and some of the other accomplishments that year, we launched a retail tax force and website. we published a leasing and brokerage report and had brokers open to help to fill in the vacancyies and to create a better retail mix at the wharf. we maintained tree lights at the park with the m.t.a. and fully funded the scrims on the bus yard fence. and continued work with s.f. rec and park to add much-needed lighting to that park. and purchased a caboda car and

pressure washer for our ambassador program. on the pier safe side this is our emergency readiness and we focus here on emergency preparedness and also safety and security for the wharf. we hold a monthly s.b.d. community meetings with the district attorney and the community district attorney charlie besto, and the captain yepp. and i also serve on the central station's community police advisory board and we held our third annual safety sum they spring where we bring all of the private security from the wharf with the beat officers and sfpd, and prepare for the summer season. and we held our monthly pier side committee meetings and our radio network that connects 15 5 businesses, actually over 15 businesses now, with radio to be able to communicate in the event

of a major disaster. and that would be at the city or the wharf. and further to that we hosted training and defensive tactical and situational awareness training and so a table top exercise and reviewed the emergency command station protocol and worked with the neighborhood d.a. to get convictions and for the stay away orders for repeat offenders. and we pro li proliferated the t campaign. and a grant from the d.a. office and we were the ones to start the park smart campaign which is now adopted city-wide. and hired off-duty police officers to supplement or beat officers to provide more coverage at the district. under our identity we produced the fourth annual wharf fest competition. you can see one of our judges there is supervisor peskin. he did a great job. gained a little weight.

to go through that on the ugly sweater pub crawl that year which the bars reported has been to this day and is still is the biggest night they've ever had at the wharf as far as sales. we hosted the lighted boat parade in partnership with the san francisco yacht club and had a hospitality and trade show for over 300 people. and produced a wharf poke night because at that time pokemon was a big thing and we had over 300 people dressed up as pokémon running around the wharf. and we had the crab wheel with lights and an ugly sweater that we had custom made for the sign. and we also produced three different newsletters, a district newsletter and a trade newsletter and a consumer newsletter. and we also do an annual marketing plan that is available on our website. and this marketing plan adheres -- we adhere to the strategic marketing plan every year and it's updated every year and it

lays out basically who we want to reach and how we'll do that. and we also maintain four websites, the main website being our visit fisherman's wharf which is a consumer facing website that has a quarter of a million users per year. and we maintain the social media accounts, facebook, twitter and instagram. and have the yelp and trip advisor pages for the wharf. and sponsorships we provide are fleet week, fourth of july, and the crab feed and national night out, the merchants association golf tournament, and the annual gala for the aquarium of the bay. that year we received a $25,000 grant from oewd which helped us to fund our consultant for our district retail project. and as i have mentioned before we received a grant from the neighborhood justice grant from the district attorney's office to continue proliferating the parks message to our district which is one of the hardest hit

with visits in the city. and then, finally, we also -- that year we had a 6% decrease in people. we have four people counting devices on jefferson street that provide insight for our traffic. as you can see and probably could have guessed that our biggest day of the year in that fiscal year was the saturday of fleet week where we counted over 121,000 people. we have a staff of three for the c.b.d. and a staff of four for the ambassador program. and that number is consistent and we were able to maintain for this fiscal year our fourth ambassador program which is our fourth person for the ambassador program which is now fully funded. and that is all i have for you unless you have any questions for me. >> supervisor kim: any members of the public that would like to

speak on this item? seeing none, public comment is now closed. >> supervisor peskin: i do want to add that it's a nice piece of good news is that the phase two jefferson street improvements are now funded thanks to a grant as well as an appropriation in the 2017 -- or 2018-2019 budget. so i look forward to seeing that phase one over by hyde street. it has really been a boom for the residents and the visitors alike. so thank you for pushing us to find that relatively large sum of money, mr. campbell. >> supervisor kim: supervisor peskin, would you like to make a motion? >> supervisor peskin: i would like to make a motion to move this resolution to the full board with recommendation, item number 7. >> supervisor kim: we have that motion. we have a second and we can do that without objection. mr. clerk, call item 8. >> clerk: agenda number 8 a resolution to approve a contract agreement with the addiction

research and for methadone services in an amount not to exceed $9,,000 to 2022 with one six-year option. >> supervisor kim: we have ann acuba from the department of public health and james stillwell to present on this item. it was continued from our last committee meeting because it was not submitted in time for the b.l.a. to do a report. so miss acubo. >> good morning, supervisors, i'm the deputy financial officer and the department of public health and this is a new contract for methadone and opiate replacement services and this contract resulted from an r.f.p., but they are an existing contractor and a very long-term provider of methadone services. this contract we are requesting retroactive to july 1st and the reason that we're requesting retroactivity is that the bentract was delayed primarily