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>> president cohen: good morning, ladies and gentlemen. welcome back to the budget and finance committee. my name is malia cohen.

to my right is supervisor sandra fewer, and to my left is supervisor cakathrin stefani. mr. clerk are there any announcements? >>clerk: yes. items acted upon today will appear on the november 13 board of supervisors agenda unless otherwise noted. >> president cohen: all right. thank you very much. want to thank jessie larson and matthew ignaio for their assistance today, and again, our clerk today is mr. victor young. mr. young, could you call items number two and three together? >> item 2 is 200 million of special tax bond series 2013 a and b for financing related to the transbay transit center project in 201819. item number three is a resolution authorizing the issuance and sale of one or more

series of special tax bond for the city and county of san francisco community facilities district 2014-1 in an aggregate amount not to exceed $2 million. >> president cohen: thank you. colleagues, we will continue these items to the call of the chair. mr. deputy city attorney, do we need to take public comment on this? we will take public comment on items two and three. seeing none, public comment is closed. we'll continue this to the call of the chair, mr. young. >>clerk: yes. items 2 and 3 are continued to the call of the chair. >> president cohen: thank you. please call item four. >>clerk: item four is an ordinance amending 01000 which set aside certain property in margaret s. hayward playground

for the combined emergency communications center at is 011 turk street. >> president cohen: all right. thank you. is there public comment on item four? all right. seeing none, public comment is closed. colleagues, i'd like to honor the request of the rec and park department. they've asked that we continue this item one week to the date of november 1. we'll take that without objection. thank you. item -- item 1, please. >>clerk: item number 1 is a resolution authorizing and improving the lease of a portion of the equipment room at zuckerberg san francisco general hospital with g.t.e. mobile net of california, limited partnership at a monthly base rate of $5,000. >> president cohen: so this item was continued from last week's meeting. it was a a lease from the city to verizon to ensure that

there's adequate cell phone coverage inside sf general. we've heard items like this before with lease to ss to othe providers. i understand that this lease is not an immediate candidate for 5-g, and that technology is not yet available to us. however, at&t has announced that its 5-g infrastructure is going to be rolled out in the early part of 2019. verizon and others are developing their launch plan across the entire nation. this is a five-year lease with two five-year options to extend, and at the end of the lease, the patients with the -- the patients and the workers of sf general and those that are also working in building 25 will be using subpart technology. can you tell us what subpart technology is? >> so right now, the current

d.a.s. will handle up to 4-g standard. 5-g is extended into the micrometer spectrum of the band wa wave. >> president cohen: i want to make sure that zuckerberg should be in the head, not the last. they are in the life saving business, and i think they deserve to have access to the most up to date technology. i have a few questions for, i think -- i don't know. are you eric schafer? >> i am. >> president cohen: when will 5 d-g -- 5-g infrastructure be available to the city, and how

will this d.o.s. help provide this to the city. >> d.o.s. was originally designed for police and ambulance radios. the current transmitter's deployed through zuckerberg operate at that building, so it would have to be improved at that transmitter level as well as the verizon box going into those transmitters. we would be working with the city and the vendors to develop what that system would look like. >> president cohen: do you know what that needs to happen for the investment to become a reality? >> right now, it's still in the test phase. they're putting small pockets around and doing that. whenever we start talking about infrastructure and improvements

in nascient technology. if we were to put in every possible technology, it's got to prove itself and bear itself out. linda garrule over at the city's technology, she looks for the infrastructure to start within the city in about three to five years. >> president cohen: okay. what role does d.p.h. play in the selection of the vendors that are going to be providing service to public health facilities. >> so again, the d.a.s. is primarily for radio communications. as far as vendors coming in offering services, we would be ubiquitous. we would provide services to any carrier, as patients coming into sf general would have any

carrier. >> president cohen: okay. thank you. colleagues, do you have any questions? >> okay. i just want to make sure, as we're moving into this 5-g territory, i just want to make sure that institutions that serve poor, indigent, immigrant people are not being left behind and that they also have access to high quality technology. thank you. we'll go to public comment. any member of the public that would like to comment on item number one, please come forward. all right. seeing none, public comment is closed. i'll make a motion to send this to the full board with a positive recommendation, and we will send this as a committee report. we'll take that without objection. thank you. all right. moving on, item 5, please. >>clerk: item number 5 is a resolution authorizing the director of real estate to authorize a lease extension for the real property located at

759 -- 755 and 759 vanness avenue, term commencing upon approval by the board of supervisors for a monthly base rent of approximately $45,000. >> president cohen: thank you. thank you, mr. penny, for being here today. colleagues, there is an item. it's a fore-lease extension for the department of public health for parking. d.p.h. has been in the space since 1981. it operates its t.a.y. program as well as its hiv program. maybe you could tell us, mr. penny, about the 95% operating value and what that means. >> good morning. my name is enrique penny. i'm the director of real estate, we negotiated the rate for this

extension, and based upon the research that i've done and that of my transaction team and also research that is available on costar, we've determined that the $45 persquare foot is 95% of market rate for properties of a similar nature in the nair. we just did a study of 13 comparable -- i'm sorry, 12 comparables in the area, which is a -- within a quarter mile of this particular location. the average of those comps was $43.98. this rent rate is $40. >> president cohen: so what you're saying is that we are getting an excellent bang for our buck. >> we are, indeed. >> president cohen: all right. i appreciate that. are there any other details that you'd like to present to this body? >> no. i would just point out that

there is a rent escalator. it escalates annually by the consumer price index, but that escalation is bracketed, no less than 3% but no more than 5%, so there are no big spikes or surprises on either side. that's all i have for you unless you have other questions for me. >> president cohen: i don't have any questions at this time. colleagues? what we're going to do is take public comment. public comment on item 5. is there any member of the public that would like to comment on this real property lease extension? all right. seeing none, public comment is closed. thank you. let's make a motion to approve and send to the full board with a positive recommendation and we can take that without objection. item 6, please. >>clerk: item number 6 is a resolution retroactively authorizing the police department to accept and expend a boating safety enforcement grant from the california department of park and recreation. >> president cohen: thank you.

thank you very much. this is sponsored by kathrin sta stefani, is there any remarks that you'd like to make? okay. thank you. good morning. >> good morning, supervisors. my name is patrick young. i'm with the san francisco police department. i'm the grant manager. today we're asking for acceptance of the 2018 boating safety and enforcement grant award from the california department of parks and recreation division of boat and water ways. the grant funds will be used to upgrade the navigation and safety equipment on two of our moose boot vessels, and it enhances our ability to locate and recover evidence, property or to locate drowning victims

that are subsurface. funds will be used to purchase two personal watercraft with a transport trailer to replace two of our ageing personal watercraft in our fleet. just for a little bit of background, the sfpd marine unit is the primary marine unit for san francisco and it's responsible for enforcing the 64 square nimiles of shoreline, an ferry and cruise ship terminals. with this grant award, we'll be able to extend the useful life of our two vessels and provide our marine department with updated equipment. >> president cohen: do you know how often the police department uses these marine vessels?

>> it depends upon the type of incident. they do use -- they do have multiple vessels that they're -- that they have a choice of using. as far as specific numbers, i don't have it on hand. >> president cohen: how many marine vessels do they have on hand, including these new ones? >> i'd have to check back. i can get you that after -- >> president cohen: all right. so this is an accept and expend gran oriente for the purchase-- for the acceptance and expend grant for two new watercraft? >> it's for two new watercraft to expend the useful life. >> president cohen: and you're the -- >> i'm the grant manager. >> president cohen: okay.

does that conclude your presentation? >> yes. >> president cohen: all right. thank you. we're going to take public comment on these items. if there's any member of the public to make any comment on this, please come down. seeing none, public comment is closed. i'll make a motion to move this to the full board with a positive recommendation. items 7, 8, and 9 call together. >> item seven is approving airport automated lease between new zoom l.l.c. with a minimum annual guarantee of is $50,000 for the first year of the lease. item number 8 is a resolution approving the terminal two specialty retail concession lease number five, lease number 18-0156 between express spa and san francisco and national l.l.c. and the city and county of san francisco for a minimum annual guarantee of $145,000 for

the first year of the lease. item 9 is a resolution approving the expedited travelers services lease 10-1089 between al claire l.l.c. by the city and county of san francisco acting by the airport commission with a minimum annual guarantee of $1.5 million for the first year of the lease. >> president cohen: mr. young, thank you very much for reading that. we've got kathy widener for the san francisco airport. these are ones for vending machines, one for express spa, and one for clear, which surprises shuttle services. >> correct. the airport is seeking your approval for three retail releases with new zoom, express spa, and all clear.

as chair cohen just mentioned, new zoom will operate specialized vending machines throughout the airport. express spa will operate a wellness center and spa concept in terminal two, and all clear offers expedited traveler services for checkpoint access throughout all airport terminals. the new zoom and all clear leases both have initial rental terms of five years with two one-year options to extend and express spa has a rental term of two years with no options to extend. all vendors will pay the minimum guarantee or percentage rent based on total revenues. over the term of the leases, the airport will receive at least $9.265 million based on the annual guaranteed rent. the budget analyst has reviewed

the terms of the lease and recommends approval, but i would be happy to answer questions that you may have. >> president cohen: i have a few questions. given all clear is a unique lease, skb it doesn't go through the competitive bid process, how do you determine the value of the lease? >> it does go through the competitive review process, although they are currently the only provide vendor that offers this service. the t.s.a. does have a similar service in precheck that is basically front of the line access after they've done the screening process, so we do have something to compare it against in terms of services. do you mean rent? is that what you're asking, how we determine the rent? >> president cohen: yes. >> i believe it's based on the previous -- we had an agreement with them before, and they operate at airports around the country, so it's competitive based on what they are charged at other airport for the same

amount of passengers, how people they can enroll. >> president cohen: okay. so how do we determine the revenues? >> the airport received a percent -- either the minimum annual guarantee or a percentage of how many memberships they're able to offer. >> president cohen: so is it by the number of passengers using it on a daily basis or a number that sign up for a trial? >> it's either -- it's either the minimum annual guarantee or the number of passengers who use the all clear service at s.f.o. >> president cohen: and the minimum number of guarantee, is that -- was that -- how does that come about? >> i believe, and i will clarify this for you, but my understanding that it's based on our previous experience with all clear and on the same services that they provide at other airports. it's worth noting that the minimum annual guarantee is not -- we're not expecting them to pay that.

in the past, they've paid on the percentage based rent, so it's a greater amount, so the minimum guarantee is lower than what we actually believe we will receive. >> president cohen: i see. so all clear is a vendor with the airport. >> yes. >> president cohen: is t.s.a. precheck also a vendor? >> precheck is a service that is offered through the t.s.a., although you do pay to enroll in it, it's not a vendor at the airport. we don't get rent from them, we don't have an agreement with them, it's all through the t.s.a. >> president cohen: all right. and what's the distinction between the two? >> one is a private company and one is part of the t.s.a. process that you go through. their rates are relatively competitive. they're about the same. i think it's about $150 a year for each. t.s.a. does certify all clear.

they wouldn't be able to offer the service unless they weren't certified by t.s.a. it's just a choice, it's a different company than t.s.a. >> president cohen: all right. thank you. colleagues, are there any other questions for oothy widener? we're going to go to public comment on items 7, 8, and 9. seeing that there are no members of the public, i'll close public comment. i'll make a motion to send that to the full board with a positive recommendation. >>clerk: yes. items 7, 8, and 9 have been -- >> president cohen: pardon me. i totally forgot about the b.l.a. report. i'm so sorry. let me make a motion to rescind the action that we took on items 7, 8, and 9. we do that without objection. thank you. and my apologies, please. >> good morning, chair cohen and members of the committee.

the proposed resolutions approve leases between the airport as landlord and three tenants as miss widener explained with new zoom for auto mated re-taylor vending machines, with express spa, l.l.c. as a wellness concession for a term of seven years, and with all clear l.l.c. as an expedited travel service for a term of five years. between late april and early may, the airport received five proposals for three leases. separate three member panels reviewed the contract for each r.f.p., and you can see the different competitors and the ones that were chosen. as miss widener explained, there was only one proposer for

expedited travel services. that is all clear, l.l.c., which is the only company that provides passengers expedited access through security checkpoints. table two on page 18 of our report outlines the terms of the proposed leases. the new zoom l.l.c. vending machines is for a term of five years, with two one-year options to extend, and a minimum annual guarantee of 150,000 with increases to that minimal annual guarantee based on c.p.i. or the greater of the -- minimum annual guarantee or percentage of gross revenues. the second lease, express spa, is for a term of seven years. there's no options to extend. the minimum annual guarantee is $145,000 or the -- and -- so the airport will receive that or the greater of that or the percentage of gross revenues. and finally, all clear, l.l.c.,

for a term of five years with two one-year options to extend with a make up mum annual guaranteed rent of 1.5 million. the airport would receive that or the greater -- the airport would receive that or if the percentage of gross revenues is greater, then they would receive 12.5% of gross revenues. under that, the airport would receive -- so between the three leases, the airport would receive about 1.8 million in minimum annual guaranteed rent in the first year and at least 1,925,000 over the next year in the annual terms of the lease. the airport does expect to receive the percentage rent which would exceed the minimum annual guaranteed. the breakdown of the minimum annual guaranteed rent received by the airport without c.p.i. adjustment is shown in the chart in our report and would total

$965,000 over the terms of the leases, and we recommend approval of the proposed resolutions. >> president cohen: thank you. and my apologies for skipping over you earlier, as well as the other item, item 5. all right. thank you for your opinion, and colleagues, i don't think that influences or changes our decision either way. we are in agreement. let's send items 7, 8, and 9 before -- to the full board with a positive recommendation. before we do that, let's take public comment again on items 7, 8, 8, and 9. seeing none, public comment is closed. all right. i'll make a motion to send to the full board with a positive recommendation. all right. thank you, miss widener. mr. clerk, please call item 10. >>clerk: item 10 is a resolution authorizing the public defender to end into an

agreement with bob cat photography, l.l.c. >> president cohen: do i have a representative from the public defender's office? welcome. >> good morning, supervisors. jeff adaci is in the middle of a trial today. he just started a murder trial, so he asked if i could come and perhaps answer any questions that you might have. >> president cohen: no problem. so this is a resolution allowing the public defender to appear in a tellievision mini series. the public defender will receive approximately $15,000 perepisode, and that money will be used to support local organizations that seek to reduce juvenile crime in low-income neighborhoods. i think that this is a pretty straightforward matter. let's go ahead and take public

comment. i don't know if you have any questions. simple agreement. okay if there's any member of the public that would like to comment on item ten. seeing none, public comment is closed. thank you. so let's -- i'll make a motion to approve and send to the full board with a positive recommendation. all right. colleagues, thank you, mr. gonzalez for being here. this motion is passed unanimously. thank you. >>clerk: i believe we need to go back to item one as we are unable to send it out as a committee report today. >> president cohen: yes, mr. clerk. that's correct. i'll make a motion to rescind the vote on item 1, and we'll take that without objection. thank you very much and reissue to send to the full board with a positive recommendation, and we will take that without objection. all right. is there any other business before this body? >>clerk: that completes the business before this body today. >> president cohen: all right. thank you. we're adjourned.

you i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. . >> thank you. >> this is a reminder to silence all electronic devices. the fire commission regular meeting wednesday october 24, 2018. the time is 5:00. item one roll call. (roll call)