necessarily win. it's about pounding the pavement and going door to door, so in that capacity, i look forward to the next 58 days. >> thank you very much. mr. tom? >> i'm in the same boat as many of my other colleagues here. i am not going to get public financing, and i'm not depending on it. i think that money could be better spent on city services. i'm going to go the old fashioned way, meeting people in the community. i'm getting my fund raising from other constituents, neighbors, residents, family, and i'm going to work the old fashioned way, meeting people at meet-and-greets, door knocking, calling you, if you don't mind, so i'll look forward to seeing you out there. >> thank you very much. and ms. basan? >> this is my first campaign. i am not a professional politician, so the first thing

i did was get some how to books. i learned because i was new to politics, i had no name recognition. and the advice was go door to door. knock on everyone's door and introduce yourself, and that is exactly what i have been doing. i am very proud to say that i have covered many of the precincts already, and have met many of you, either by miyself or by the door hangers i left you. i believe i am running neck and neck with mr. mar in terms of funding. i am not going to be getting public financing, so i am doing this from my house. that's my campaign headquarters. i have no office, i have no professional staff, i am not wasting any money, and if i were your supervisor, i wouldn't waste your money, either. i am very frugal, and that's

how i'm running my campaign. >> okay. thank you very much. okay. ladies and gentlemen, this will be our last question. and i think it will give us more -- we've gotten an idea how the candidates think and who they are, but this'll give us even more of an idea. so candidates, we're going to star with mr. mar. could you give us your vision of your city and for the sunset district, and could you tell us in light of what programs or projects you've worked on in the district or in the city to make it a better place. so we're going to start with mr. mar. >> i moved to san francisco actually 30 years ago as a young person just after graduating from u.c. berkeley, and then my wife and i move today the sunset district 13 years ago, as i said, to raise my daughter here. a lot of what attracted me as a

young person 30 years ago really fills that risk of being radically changed right now due to the affordability crisis and the dramatic changes that are playing out in our city. this has motivated me to shift from being a community leader and nonprofit executive director for the past few decades to seek a leadership position here in district four, and it's to ensure that san francisco can continue to be a place where anyone, regardless of income or social condition, to live, to work, to raise a family, to retire with dignity. this is also why i've been working on these conditions as a community organizer for 25 years. >> thank you very much. mr. mcneil? >> my vision of the sunset and the city is visionary.

it's where i live and work, and it's where i brought my children home from the hospital. it's where i want them to live. it's at the heart of sort of all my passions and policies. you know, i think this -- we need to have strong communities. i used to be on the board of the inner sunset parks board association. i think we need to have people with deep roots here. my first teaching job was at l lawton, and i also think understanding how government works is important. i'm running a grassroots campaign. i am an outsider. i don't work in city hall, but i do have experience in politics. i do have experience in representing district four in city hall, so i think there is a level of which that my biography, my backgrounds, my hopes for my family's future, and my skill set and recess may are enough to make me a supervisor if i'm lucky enough to get elected. >> thank you.

mr. murphy? >> yeah. my experience is typical of someone who's invested in ecology. it's a seventh generation vision. right now, our city is being sold out to the highest bidder. land use economics is the biggest crisis we face. this is where i surf. this is where i run. this is where my son and i play basketball. i envision a place where he could return, to this neighborhood. i love it here. this is the dream that i've had, and i've lived here for -- in san francisco for over 20 years. i don't see a future here for myself. i don't see a future here for my son. i don't see a future here for the sfusd's youngest students unless we take it back. we need an independent hard nosed legislator who's not

connected to city hall, who's not connected to the machine, and i'll be that lejs laytor. >> thank you. -- legislator. >> thank you. mr. win? >> san francisco is a first world city with third world problems. bureaucrats love to have excuses in the city. and i grew up in the city, went to holy, went to s.i. it's a different san francisco now. it's always been a changing san francisco, but we've got to fight for the every day people in san francisco, which we're losing. middle class families can't afford to live here anymore, and i want to be a part of leading san francisco to ensure that we are still diverse. we can't continue to give break to see lyft and uber -- breaks

to lyft and uber, and hopefully we can continue to build a better san francisco with everybody involved. >> thank you very much. mr. tom? >> my family first came to san francisco in 1851. i'm born in san francisco, i'm a native. i live here, and i moved here after berkeley because i wanted to come back to the city that i called home, the place that i love. i met my wife here, who's also a san francisco native, and our kids were born here. we live in the sunset and attend lawton school here in the sunset. i'm hoping that they can stay here for another generation and have the life that we've had the privilege to living in this city, but it's looking more difficult all the time. what have i done in this neighborhood that i love it so much? i've founded a group that rebuilt the playground that's become a community center. also in terms of the library that's around there, and in the city, i've served on three

commissions. i might be the only candidate that's done so, the immigrants right commission, the taxi commission, and two templs on the assessment -- terms on the assessment appeals board. i have the experience in city hall, and i currently work as a city auditor. i understand the situations very well. i look forward to working for you. >> thank you. ms. basan? >> my vision for san francisco is this: i used to be proud to tell people i'm from san francisco, and now i'm embarrassed. i don't want it to be known. i would like it to go back to the way it was when i could be proud to say i'm from san francisco. i'm from a world class city. i invite you to come. but right now as it is, it's a cess pool. it's filthy, disgusting, and it's dangerous. if i am supervisor, i am going to vote no on the policies that keep perpetuating those problems and are keeping us

down trodden? are you afraid to go downtown? i'm tired of wearing work boots to civic center because i don't know what i'm going to step in. this is my vision, to bring it back to where it's clean and beautiful. i've spent any entire career to fighting for my clients. if i'm elected supervisor, i will fight for you and your quality of life. >> thank you very much. mr. kim? >> i moved to the bay area ten years ago from the chicago area. i also went to the university of illinois at urbana-champaign. growing up in the midwest, it's hard to fit in when you're not your typical midwest cookie cutter person. but i found a home here in the bay area, here in san

francisco, and because of the diversity, i feel it's home. and we're in trouble of losing that diversity to gentrification and homogenous tech broke culture. it's our least privileged people who are being forced out, and those are the people that i want to see stay. i want to see a place where everyone can live, not just rich people, and everyone has a home, and people are paid wages that can fulfill reasonable living costs. and it might be a pipe dream, but that's what i'm going to fight for. >> thank you very much. and now, ladies and gentlemen, we've come to the candidates' closing statements. so let me first remind you, if you are not registered to vote, please do so right away and urge others you know to

register also. if you move, you need to reregister again at your new address. now i've said my thing. thank you very much. we will do the closing statements in reversal if a bet c -- reverse alphabetical order, and remember that you have one minute, and we'll start with mr. tom, closing statement. >> thank you. i love san francisco, and the sunset is my home. i'm like you. i'm raising my family, and we have multigenerational deep roots. i want to see it that seniors have activities to do, young children, and the next generation. that two workers families can have services where they can have activities enriching for their kids while they're at school and after school. these are just the common-sense things that i'm looking for for all of us, the residents.

my door is always open. i want to know what your needs and concerns are because those are my needs, those are the needs of the community, and i hope to serve you well. thank you. >> thank you very much. mr. win? >> as a sunset native and community advocate and organizer, i've attended hundreds -- hundreds of community meetings. i know who you are, i know where you live, where you eat. this is -- this is just -- we are the sunset, and quite frankly, we're fighting for the soul of san francisco. i've -- for years, 20 years or so, been a consultant or campaign manager. worked my up as a field director, and had an opportunity to meet bill clint and obama, and fortunate enough to learn from a lot of great individuals and leaders in san francisco, including gavin newsom and fiona mah.

we all remember what happened in the sunset district with the whole residency issue. i hope to lead the sunset in a very positive way and connect and work with both moderates and progressives because i worked on both campaigns and both sides of the ledger, and hopefully i'm a uniter in that capacity. i look forward to meeting everybody door to door, and please take a look at my website, swanforfour. >> thank you. mr. murphy? >> yeah. we really need to step back from our series of appointed incumbents in the sunset. we've been abandoned to city hall politics for so long, most residents are checked out.

they don't want to vote. i as supervisor will operate under a new model for transparency and governance. you'll know what my opinions are -- decisions are before i vote. you'll hear me at community advisory boards, that i'll stage. right now, we don't have the budget for that, but we'll do it any way. i will hear your input into the planning process so that together, we can help temper the problems that we have with big money in real estate and tech, which place our community at risk, at risk for being turned into another generia. i don't want to see that happen, i will not allow it. thank you. >> thank you very much. mr. mcneil. >> most important question to ask us is why we're running for office, and i think most of us would say the same thing. we love san francisco, we care about the issues, and we love

helping people. my love for san francisco is deep. i'm a native san franciscan. i love helping people. i am a public teacher. i also like being service outside of the classroom. that's why when katey tang wanted somebody to sit on a community advisory board, i raised my hand. when it comes to caring about these issues, it might be corny, but i have three kids under four. clean streets isn't an abstract idea for me. quality schools, affordability aren't abstract to me. i really care about the sunset, i really care about the city, and i hope that you'll consider voting for me for one of your three votes. i have been endorsed by community leaders like doug chan and ron dudam, so i think i am of the sunset, i am of san francisco, and i would be very honored to receive your vote. thank you so much. >> thank you very much. mr. mar. >> so again, i've been a

community leader and a nonprofit executive director for over 25 years in the city. i've led efforts to create policy and -- on issues of importance to working people, families, seniors and students, i am a leader in the -- i was a leader in the campaign for state city college, and freetor all residents -- free for all residents. i've also created policy and led efforts to expand services for seniors and people with disabilities, including creating the support at home program, so i'm bringing my decades of experience to address the critical issues facing our neighborhood and our city. i think about my daughter and whether she and her friends will be able to afford to live in the city that they're being raised in. i also think of my daughter coming to visit me at the office, at the hotel union worker's office in the tenderloin, stepping over

needles on the sidewalks, and so many of our community members living on the streets. i believe we can solve these krit kill issues, and -- critical issues, and i would bring the leadership to tackle that from day one. thank you. >> thank you very much. mr. kim? >> so -- so somehow, out of all the candidated that are qualified, i've been in this race the longest. even though i don't have an great work history as some of these other history, somehow mike murphy and i have challenged the incumbents and changing the status quo. we've had a history of supervisors and administration that give tax breaks to big tech and to real estate developers, and you know, that needs to stop. we need to cut the money out of

san francisco's politics and give power back to the people. and that's what we're standing for, and, you know, we have a rampg choice voting system, so -- rank choice voting system, so it doesn't have to be vote for your favorite. vote for your three favorites who give your voice back -- like, put your voice back in city hall. >> thank you very much, and miss basan. >> i've lived in san francisco since 1960, and i have been a homeowner with my husband in the sunset on noriega street for 25 years. you sat here today, thank you very much, and you heard my answers. i have answered every question very directly. you know my opinions, and you know where i stand on the issues, and i have not said what i think will get me votes, but what i believe, and you know now what i believe. i'm a fighter. i have been all my fight. i've had adversities in

childhood. i worked my way through college, university and high school, and in my career as a lawyer, i've fought for each and every client. i am the best voice for district four. i am a strong voice, i'm a tough negotiator, i am not a puppet, and i am not a pushover. you know that i will put your interests first at city hall. i will bring a balance to the board of supervisors of common sense. thank you. >> thank you very much. and now, i ask all of you, please give a great round of applause to all these persons who want to be your representative in district four. [applause] >> and now, on behalf of myself, the sunset park side education and action committee, coalition for san francisco neighborhoods, and the league

of women voters of san francisco, our thanks to the candidates for participating and unfortunately, and you might have noticed that there was one empty chair. miss jessica ho unfortunately could not attend this morning, although i'm sure she probably wanted to. but thanks to each of you for taking time to inform yourself about your choices on november 6. have a great rest of your saturday, go home safely, have a good time, enjoy. thank you very

>> president cohen: good morning, ladies and gentlemen. welcome you to another edition of budget and finance committee, our fall edition. welcome you back to the chamber and back in the legislative break and back and ready to get into action. a great agenda prepared for everyone today. announcements? >> silence all cell phones, completed speaker cards and copies of documents to be included in the files submitted to the clerk. items acted on will be in the september 25th board of supervisors agenda unless otherwise stated. >> president cohen: great.

the voice of linda wong, and recognize our friends at sfgovtv, and item 1 please. >> clerk: resolution approving a general agreement between the port and the national park service for 30-year term with two ten-year options allowing ferry concessions to alcatraz island and oat golden gate national recreation area sites and lease agreement to develop visitor amenities to commence upon approval of the board of supervisors. >> president cohen: the port has a long deep bench of supporters and friends, elaine and then rebecca as well, and jay edwards

possibly also on deck to present. again, just an item, long-term 30-year lease for the embarkation area out to alcatraz. and hear after the port's presentation, hear from the budget legislative analyst and their thoughts. i understand they may have a couple of amendments. thank you. elaine, welcome. >> good morning, chair cohen, welcome, and members of the committee. elaine forbes, port director, pleased to be here today to recommend an agreement to you that really secures the embarkation sites of alcatraz into the future, 30 years, up to 50 years. >> president cohen: for those of us who don't know, what does embarkation actually mean. those of you watching at home. >> using a port word. embarkation where passengers board vessels. alcatraz has, we have had an embarkation site for the

alcatraz island since 1972 at the board of san francisco. it is an incredibly popular place to go for visitors to the city. it's a wonderful national park, and we have worked very closely with our partners to develop an agreement that really is going to improve the visitor experience on the embarkation site, provide more retail, interpretation, get us a lot of investment into our pier, and the concessioner and the retail operator. this agreement is going to transform this embarkation site. i am here today not only with my team, rebecca and jay, but also with our partners, laura from the national park service, greg moore from the park's conservancy, and i see mark buell is here and sonny from supervisor peskin's office has been helping a great deal as

well. we also have provided to you letters of support from the inland boats union, pier 39, blue and gold, spur, sf travel and all the partners that share an interest here en the alcatraz experience. so, right now passengers board vessels to get to alcatraz from this area between 31 and 33. it's mostly unimproved, some substructure problems and we have recognized we can provide a much better visitor experience. the agreement before you would provide for $33 million of investment to transform what is today to the rendering you see before you. this has 43,000 square feet of outdoor space, and it's converted to pedestrian only. 25,000 square feet of historic rehabilitation, and as you can see, just a much finer visitor experience.

we would also improve substantially the circulation to get on to the vessels. we would have a new public plaza, visitor interpretation exhibits, pier 33 canopy and a new cafe. and we have an additional berth coming to the site to allow us to more easily get the passengers to and from the island. there is a business framework that is included in this general agreement, and to recognize the national park service cannot invest directly in land they do not own. so the agreement before you is the framework between the port and the golden gate national recreation area at that provides for all the terms and conditions. we will then enter into a lease with the concessioner that the

national park service will select and the conservancy. -- provide a way in which we can all ensure the quality visitor experience is achieved for this long-term period of time. and this slide goes over the agreements and transaction documents that will underline this agreement. i don't know if i mentioned to you that this is the highest volume maritime operation on port property with one. million passengers a year. when we came to you with the term sheet, we thought we would earn annual base rent of

1.2 million. i'm happy to report that has gone up a bit to 1.2 million, and this slide goes over the various areas in this footprint and where our base rent is coming from. this is the overall projected rent to the port, minus a rent credit we will be participating in the $33 million investment through a rent credit. and here is an outline of who will make investments in the site. the ferry concessioner will invest $30 million of which the port will run a rent credit of 2.5. parks conservancy, 3.7 million, less a rent credit for the total investment of $33.7 million. the port is also investing now 5 million in the substructure to prepare the site for the agreement and new project. as i said, my staff can provide you much more information if you have questions about the framework. we do agree with the budget

analyst and my staff can also go over that as well the budget analyst, but if you would allow me, i would like for our partners at the table with us since 2014 to say a couple words why it's good for their organization. laura, the superintendent from the national parks service. >> thank you, elaine. good morning, chair cohen and members of the board of supervisors budget and finance committee. laura joss. i thank you for the opportunity to speak and appreciate your thoughtful attention to this important project to establish a long-term embarkation location for ferry service to one of the golden gate's most popular sites, alcatraz island. for over five years, they have been collaborating to identify the site location, develop the

vision and solidify the business terms that will enable this long-term alcatraz island ferry embarkation to remain at pier 31.5 the next 50 years. benefits for all stakeholders and 1.7 million visitors. the next ferry concessioner and the conservancy together will invest in a $33 million port improvement project which will provide a new welcoming gateway to alcatraz island, on piers 31 and 33, in the 'em -- embarcadero district. completed an environmental statement, e.i.s., studied six other locations, piers in san francisco before selecting pier 31.5, which was supported by the

port of san francisco and local stakeholders. the planning process took public input at several stages and included agency consultation about protecting endangered species, consistency with the san francisco bay plan and preserving historic resources. the economic benefits of establishing a long-term home for alcatraz embarkation is also significant, in addition to the direct return of rent to the port, visitors bring nearly $200 million to the city, in total annual spending power. almost half of which is estimated to be spent in the vicinity of the embarkation site on meals, shopping and other attractions. the nature and structure of the alcatraz embarkation partnership with the city of san francisco and the conservancy is unprecedented in the many ways.

and genuinely enthusiastic about what the future holds. we are very excited to see this project move forward and know that it will be a lasting legacy enjoyed by millions of visitors. thank you for considering this opportunity. >> president cohen: thank you for your presentation. >> and greg moore from the conservancy say a couple words. >> good morning. i'm very grateful for your review of this significant project today. the golden gate national parks conservancy, we are one of the three partners in the project to create a permanent and improved gateway to alcatraz island. this landmark site serves 1.7 million visitors a year, allowing them to enjoy the island's beauty, nature and history. and alcatraz won trip advisor's national award as the number one landmark in all of america.

quite a landmark site. but not only do visitors from around the world visit alcatraz, but good to the local community. rangers provide programs for schools throughout san francisco as a regular part of their activity, and alcatraz has a community access program for the low cost visits to alcatraz, bringing thousands of people from san francisco neighborhoods and community organizations to the island each year. the national parks site as i said deserves an enhanced gateway and the plans as the port is presented improve views, improve public access, improve interpretation, and really revitalize this incredible gateway to a national landmark. and not only do the three partners endorse this project, but many people throughout the city, many organizations have endorsed it. civic organizations like spur, san francisco travel, the san francisco chamber of commerce,

waterfront businesses, waterfront workers, waterfront tenants endorse the project, preservation and historic, and community-based organizations. we believe the time has come to make this way into reality to benefit from your approval if you agree with us and the benefits of this project and we encourage you to give it your approval so that we can have a revitalized gateway, provide economic benefit to the city of san francisco and contribute to the travel and tourism industry of this great city. thank you. >> thank you. elaine, come on up. i have a couple questions. i know a lot of people are involved in supporting this, budget and finance committee, get into the agreement, and nuts and bolts of the contract. yesterday i'll hear from you in a second. yesterday a similar item related to this one was heard in the

rules committee, and i was wondering if you could summarize for us the labor harmony agreement between the ferry operators. >> so that is subject to a separate ordinance, and that ordinance would provide labor harmony requirements on excursions and operators that offer excursions from the port of san francisco and any waterfront location. we understand that is moving through the process. we have a similar labor harmony agreement as relates to hotel workers from my understanding, and we had our staff testify in the hearing yesterday. we do not find it to be an i impediment to the port. it's in everyone's interest for labor harmony and have spoken to that ordinance. >> president cohen: thank you very much. pivot to the budget and

legislative analyst and hear their thoughts and comments as it results to this lease agreement. >> good morning, chair cohen, members of the committee. this board would be approving two things in this legislation. one, approving the agreement between the port and the national park service that sets the conditions for the ferry operations and the lease that would be entered into between the port and the ferry operator. and the second would be to actually approve the lease between the port and the conservancy. the two things before you today. general agreement that's before you, the board approved the terms, the term sheet for that in 2016. what you are looking at today is consistent with that term sheet. but we do have a couple of questions that we want to discuss. now, miss forbes did go over with the slides in terms of the fiscal impact, went over the

same numbers and can answer any questions. but i think the issue raised in the report is the actual expected terms of the leases are different than what's in the general agreement and are different than what's en the term sheet. from our understanding this has more to do with the configuration of the space thank the actual, any difference in terms of the price per square foot, so not an actual reduction in rent, simply reckon -- reconfigu reconfigure of the space. we thought they needed to be brought together and the same. we did make a recommendation to that effect and since our report came out, we have talked to the port, submitted language that incorporates the recommendations that we made. there's one change, but we are comfortable with the change, which is we said that the

agreement should basically be consistent with the national park service rules that leases for ten years, in fact, there are some other caveats to that, initial lease with the ferry operator for 15 years, consistent with all the information we have been provided. so, instead of actually recommending that you amend the resolution, we maintain our recommendations that you request the port to do these things, and also draft language that incorporates language and we recommend approval. >> miss forbes an opportunity to comment on the recommendations from the b.l.a. >> we concur with what the budget analyst said and rebecca will walk you through the language changes we recommend. >> thank you. >> thank you, elaine. red lines we provided to the budget analyst this morning do confirm what miss campbell was describing. ten-year term mandated under federal rules unless there are

extenuating circumstances, the first contract for 15 years, what it's been advertised for, and clear, that's the first contract. subsequent contracts, the ten-year term unless m.p.s. determines other circumstances require a longer term. other edits confirming the total base rent in the g.a. to the leases. >> thank you. thank you. colleagues, do you have any questions from either the b.l.a. or any member of the port team? no, all right. what we are going to do is take public comment and then take action on the item. ladies and gentlemen, as a reminder, two minutes to speak, a soft chime indicating 30 minutes remaining on the balance of the time. if you would like to speak on item 1, come up to the podium right now. perfect. commissioner, good to see you. good morning. >> thank you, very much nice to be here. my name is mark buell, and for 15 years i had the pleasure of being on the board of the golden

gate national park conservancy and served as the chair of that board for eight years. so i'm familiar with the organization. over the 25 years they have raised as a partner with the national park, over $400 million in charitable money to support activities in the park and improvements. some of those you are very familiar with. the visitor center at land's end, visitor center at the golden gate bridge, muir woods visitor center and the warming hut at chrissy field. the level and quality of the work of the conservancy is second to none and these, all these projects have received local, state and national attention for the quality and i think this opportunity at the port represents the same kind of project that will make all of

san francisco very proud of the facilities. so i come today to highly recommend your approval and thank you for your courtesy. >> president cohen: thank you. any other members of the public to speak on this item, come. >> good morning. supervisors, thank you. my name is adam pulitzer, city manager for the city of sausalito. and on behalf of the sausalito mayor, mayor joan cox, happens to be at the annual league of california cities conference, she asked me to come and read her letter to the record. dear members of the san francisco budget and finance committee. as you take the final steps towards approval of this important project, city of sausalito would like to take this opportunity to thank you and acknowledge a number of regional leaders who collaborated together to produce a positive result.

san francisco supervisor aaron peskin, the port of san francisco, port commissioner and director elaine forbes who listened carefully and worked very hard behind the scenes to ensure the final project description addressed sausalito concerns. acting mayor mark farrell, jenny kaloway, marin county supervisor office, among others, and of course, laura joss. together we demonstrated the power of regional collaboration as all of us invested our best efforts to ensure the best possible future for incredible natural resources. san francisco bay, fort baker and the golden gate recreational area for our resident and visitors. we are confident not only have we created a mutually beneficial

solution for this current challenge, but we have also established a framework for collaboration, cooperation, between regional partners for the years to come. we sincerely thank you, joan cox, mayor of the city of sausalito. >> extend our gratefulness to the mayor, and also nice when our neighbors come and say nice things. welcome, please come back. all right. any member of the public that would like to speak on item 1, public comment is closed, thank you very much. ok. i want to ask a question to the b.l.a. the amendments that you spoke of, could you just recap them one more time? >> clarify, challenging our recommendation so you don't, not to revise the, amend the resolution but simply to request the port. >> agreed to do so and submitted the red line. here it is in front of me. >> amendments are basically, read them.

basically to request executive director to revise the general agreement to, a, specify the term of the initial ferry concession lease ten years or less unless the director of the national park service determines a longer term is warranted in accordance with code, and initial term of the ferry concession, 15 years, that's in the revised language. and b, make the terms consistent between the proposed port and ferry concessioner. >> colleagues, you have heard the amendments, we will accept the amendments, thank you very much for being agreeable to the port and we can take that without objection, ladies, all right. without objection, accept the amendments and approve with a

positive recommendation to the full board. thank you. >> president cohen: item 2, please. >> clerk: ordinance delegating authority to the public utilities commission to enter into binding arbitration for the purchase of electricity and related products in certain parameters and authorizing agreements for clean power s.f. with binding arbitration. >> president cohen: retroactive ordinance for binding arbitration between the p.g. and e. and the p.u.c., to support the, of course, infamous cleanpower cleanpower cleanpowersf program that grows and is more popular. >> supervisors, good morning. michael hymns, director of the cleanpowersf program for the san

francisco public utilities commission. before you is an action requesting the board to retroactively approve three resource adequacy contracts, executed by the general manager of the public utilities commission with pacific gas and electric company. critical to the planned growth of the clean powpowersf program. two years and five months from august 2018 through december 2020. the combined total cost of the three contracts is 13.7 million. through previous actions, the board of supervisors, to support the expansion of cleanpowersf. and limited delegation authority of the p.u.c. to enter into contracts featuring binding arbitration without going back to the board, subject to a very limited set of conditions. resource adequacy is a state requirement applicable to all

entities that provide electric service to customers. and hetch hetchy power. to ensure sufficient electric generation available to the state's power grid when unusually high levels of customer demand occur. resource adequacy requirements are based on demand forecast and methodology through state law. to seek the supply it needed to meet its resource adequacyable gaugeses through 2018 through 2020, conducted or participated in a number of competitive solicitations for these products. including solicitations in september 2017 as well as march, april and may of 2018. the p.u.c. is seeking retroactive approval from the board to enter into the three

contracts, to purchase capacity, support cleanpowersf compliance over that period of time. these contracts were essential for cleanpowersf to avoid noncompliance, and penalties, the p.u.c. staff estimates might have been as high as $14 million. while the contracts amount, contract amounts and terms individually do not require the board of supervisors approval, each of the three negotiated contracts includes binding arbitration for settlement of disputes as reared by p.g. and e. and require approval by the board of supervisors. contracts meet all other conditions established by the board. p.g. and e. would only hold the quantities if the contracts were executed earlier this year. to secure the needed resource quantities and meet the california p.u.c. compliance

schedule, the contracts were executed by the general manager and therefore, we are now requesting retroactive approval. in addition to authorizing the agreements, the ordinance would delegate authority to the general manager of the public utilities commission to enter into agreements requiring binding arbitration for the pch of electricity and products, with very specific parameters and only when necessary with legal requirements. authorized to enter into such an agreement if the agreement is to purchase electricity for electricity-related product, such as resource adequacy, and the purchase is necessary to meet a legal requirement, and no other purchase that would meet the legal requirement and does not require binding arbitration is available, and finally, the agreement with not otherwise require the board's approval. so, this of course includes term and expenditure amounts. we believe it's reasonable and

in the public interest to grant the general manager the limited delegated authority for power supply contracts, featuring binding arbitration, without further approval. that concludes my presentation of this item. happy to take any questions you might have. >> president cohen: thank you, appreciate that. any questions? see if the b.l.a. has any questions. i have a few that i'll ask after the budget legislative analyst makes the report. >> chair cohen, members of the committee, the actual legislation before you that you are being asked to approve has two components to it. one is to retroactively approve three lease, excuse me, agreements with p.g. and e. and p.u.c. for resource adequacy, summarized these three agreements on page 12. as we say in our report, these are short-term fixed price contracts, but they do require

binding arbitration, and they delegate the authority, the board's authority in that circumstance. the second piece of the ordinance is to delegate authority to the p.u.c. general manager to enter into future agreements for both cleanpowersf and hetch hetchy that could require binding arbitration. and he set out the conditions which that would be allowed, page 11 of the report, because this legislation does delegate authorities otherwise sit with the board of supervisors, we consider it to be a policy matter. >> president cohen: thank you. questions -- question for the deputy city attorney. legislation lays out the circumstances under which the p.u.c. would have the authority to apply for this, apply to

this, apply to this authority. how should we be thinking about this delegated power? how, and how broad or how narrow should the application actually be? >> deputy city attorney, that's really the policy question before this committee. generally you would have, the board would have authority to approve all the contracts if you didn't adopt the ordinance because this is an exercise of authority that requires board approval. so, it's a question of how much authority you want to give to the p.u.c. the proposed ordinance includes several parameters that narrow the number of contracts they can enter into under this ordinance. >> ok. thank you. let's go to public comment. thank you very much for your presentation. any member of the public on item two, come on up.

>> based on when i just seen brings in the question, p.g. and e. is trying to corner the market in the production and use of electricity, i believe it should be open and free enterprise, if the city can go to another source of electricity instead of spending this $13,762,490,000 and cut the expenses in half in order for electrical use to power the city, i believe that option should be open. trying to corner the market. for example, the bad faith dealing and the fires that the electrical lines is causing, trying to pass the costs on to the consumer, when the consumer has nothing to do with it. they claim they can go bankrupt, a bold face pathological lie, on the ground that p.g. and e. has

insurance. if there's a better way the city can get electricity other than going to p.g. and e., do it and keep the option open and don't find yourself to them when you are obligated to purchase electricity from them, when there are other sources with a lower rate and save money on the budget. >> president cohen: any other members of the public? thank you very much. i appreciate the history of the item and why it's timely and essential. however, i trust that our p.u.c. general manager, however, while i trust the p.u.c. general manager, i am uncomfortable with the potential of a long-term authority for p.g. and e., as cleanpowersf gains capacity and matures and other potential sources for reserve capacity companion line, i would like the board of supervisors to retain some of its oversight and hear

what alternatives to p.g. and e. might be available. introducing to you, should have them before you, some amendments. i have circulated the amendments, and sunset date of the authority, five years from the effective date of the ordinance, approximately october of 2023. this will give the general manager, this will give general manager kelly the space to conduct his business in good faith, but will also give us more insight and the opportunity to review as programs continue to progress. i just want to also acknowledge john scarpula, not here, ok. p.u.c. is in agreement with the amendments, we worked with them on getting them crafted. so, this is no surprise to them. i don't know if you have any other questions or need clarification.

if not, a motion -- >> i was going to make a motion to accept the amendments. >> president cohen: thank you. motion by supervisor fewer, take that without objection, thank you. ok. item 3, please. >> like to send this item to the full board as committee report as amended? >> committee report and as amended, thank you. >> clerk: ordinance amending the business and tax regulation code to add provisions to administer the early care and education commercial rents tax. >> president cohen: all right. so an item dealing with the business and tax regulation code. we have noel from supervisor kim's office to make opening remarks. >> thank you for the kind introduction, chair cohen. on behalf of supervisor kim, thank you to the entire budget and finance committee for your careful consideration of this ordinance, which defines the process for the tax collector's

office to collect and administer the early care and education commercial rents tax. that would allow for the city to follow the standard process, to implement the new tax, and it is no way related to the spending plan or the pending litigation. our office would like to acknowledge and thank the office of early child care and education, the city attorney's office, controllers office, the tax collector's office, and supervisor norman yee and his staff are coordinating with us to draft this legislation. thank for your time and we hope we have this committee's support on this item. >> president cohen: thank you. colleagues, reminder, this sets the tax collection code for the early child care and rents. nod going to interfere with pending litigation. i would like to hear from the controllers office and hear

their thoughts. i have a couple questions as well. you have any thoughts? ok. that's ok. i'll go? my questions, thank you. my first one, how will the city go about establishing and ultimately dispensing the tax revenue, given the associated legal risk? you have to turn your mic on. >> from the controllers office. at this time what we can say about that is that while the litigation is pendings, funds on reserve, impounded. >> president cohen: so we are not going to spend the money as it's collected into the fund or are we? >> no, it would be not available to be allocated or appropriated. >> president cohen: at what point for allocation, after the litigation? >> when the litigation is resolved. >> president cohen: any idea how long that would be? >> do not know.

>> president cohen: will you be increasing the funding in these areas as there is a voter mandate to do so from the general fund? the fund is going to be on reserve, increasing or going into the general fund? >> the funds would not be part of the general fund in terms of being available the way the general fund is. >> all right, thank you. thank you. colleagues, i don't know if you have any other questions. all right. open to public comment. public comment is open. >> another example of conflict and tax regulations where you want to tax businesses and by the same response, you got other businesses that's not being taxed at all. demonstrated well over several times that twitter and five other high-tech companies has gotten away with a minimum of $217 billi $217 billion worth of tax free

money from the city and county of san francisco. it's not fair. you turn around and want to tax other businesses that are nowhere near as the income revenue that twitter and the other high-tech companies is making while being a resident here in the city of san francisco. multi-quadruple, trillion, billion dollar organization and you give them a break. they don't need a break. the people who need childcare help and the people who are economically disadvantaged on the street, and the people with disabilities and aging and senior citizen programs, those are the people that need a break. so, the amount of free money that you are giving twitter, i believe is tax evasion, money laundering and bank fraud, half of that money would take care of the program for this early childcare for the mothers who need help making this proposal that's coming out of kim's