i maintain the chain and custody for court purposes if that becomes an issue later and notify next of kin and make any additional follow up phone callsness with that particular >> the meeting will come to order. this is the march 6th, 2016, realtor meeting of the budget and finance subcommittee. i'm sandra fewer. and i joined by catherine stefani, and ralph mandelman. i would like to them the people for broadcasting this meeting. madam clerk, do you have any announcements? >> yes. please silence any cell phones and electrical devices. and any documents, please

submit to the clerk. items acted upon today will appear and the march 12th board of supervisors' agenda. unless otherwise stated. item number one, ordinance amending the police code to establish procedures for cannabis, and authorizing cannabis sales or consumption or both, and the specific tax regulations code and application fee for such permits and to allow for a temporary waiver of article 19 of the health code. >> chairwoman: thank you very much. last week we heard this item. it was continued because we had an amendment. supervisor mandelman, would you like to make any comments? >> i don't have any further comments. we talked about it last week, but i'm hoping we can move it forward with a positive recommendation today. >> chairwoman: thank you very much. there is no b.l.a. report on this item. thank you very much.

let's open this up for public comment. are there any members of the public who would like to comment on item number one. >> good morning. my name is luann bassan, and i am here to owe oppose this legislation. all of our government agencies are trying to enforce no smoking, no smoking, no smoking cigarettes, and yet you turn around and you want to allow smoking of cannabis at public events, and the sale of cannabis at public events. cannabis is still illegal under federal law. and we are mostly concerned about the health aspects on the rest of the public. if i go to an event, i don't want to be forced to breathe in somebody's cannabis smoke. they want to smoke cannabis, they should go into an enclosed smoking area, such as they have in

japan, like a smoking cubical. but it is wrong and it is unfair to force everybody at an event to be exposed to as hazardous substance. you wouldn't do it for cigarettes. why are you doing it for marijuana? it is the height of hypocrisy. thank you. >> chairwoman: thank you very much. next speaker, please. >> good morning, supervisors. bram goodwin, i'm a photographer. i've smoked for 50 years, by the way. most of it here in san francisco. i'm the founder of the san francisco social club, and we're a cannabis social club. i'm here to support the legislation. it is legal, like any other product, and i believe, and i appreciate the supervisors are doing their jobs by creating a safe environment for people to partake a legal substance.

i appreciate the work that the office of cannabis has done in san francisco, and for the supervisors. and i would appreciate if you could just continue along this path and make it easier because a lot of people cannot smoke at home because of the restrictions on smoking. we need more consumption places. if you go to the ones in the city, they're totally crowded, and they bump you out. why? there is not enough places. so i appreciate the legislation. i would encourage all of the supervisors to vote yes. thank you. >> chairwoman: thank you very much. next speaker, please. >> hello. my name is anthony black. i'm a member of c-mac, as well as an event producer here in san francisco. and also in relation to a partner for the 420 event that hopefully will happening at golden gate park. i'm in support of the legislation for this

cannabis used at events. the most important part being that we're looking for responsible adult consumption of cannabis, at least at these special events. so with that being said, i'd like to offer my support for this. >> chairwoman: thank you very much. next speaker, please. >> hello, my name is sala ebraheim, and i'm in support of this item. san francisco has always been on the forefront of all cannabis legislation. and it has been the forefront of his entire move. cannabis is a social activity that people like to share. and having it available at events just makes sense because ultimately it is a healthier substance to consume over alcohol. with regards to the comments on smoking, cannabis has come such a long way, that smoking

isn't the only option for consuming cannabis and having fun. there are beverages that are similar to alcohol. there are edibles, that are low-grade, low-dose, that are tested and compliant, and making sure that it is available in a regulated fashion, where all of the tax dollars are being collected and then given back to the city, i think is very important. thank you. >> chairwoman: thank you very much. next speaker, please. >> good morning. my name is wendy, from san francisco coalition of good neighborhoods. i'm here to oppose the legislation. we know that marijuana is a drug that will make people high. we have no doubt about it. smoking cigarettes -- people can get lung cancer. it is their problem, but smoking marijuana publicly also to promote this drug is totally against everybody's rights who are decent enough to live in a very safe and good environment. i would like to say that if you have to set the

legislation, you need to control how many events that you have to put a year. also, all these events that put in the park, the children will stay, children will play, but then you take their right away. and who is going to clean up the mess, such as the candy wrapper, and the procedures of the marijuana. the children will pick it up. who is responsible for that? i also would like to mention that the -- what they're talking about, the he'll drugs, and we do not have any device how to test if these people are high enough to have car accidents. and you see that the crime has been increasingly vicious and violent. people do not think before they go in the cars. they rob people and they purposely try to kill them. money is not a right thing. and illegally, they take the money out. and also they want to harm

them? why? because they're totally out of control. so i'm here to oppose the legislation. >> chairwoman: thank you very much. next speaker, please. >> i'm fernando alvarez, and a state licensed cannabis event organizer. i want to just show my support for this measure. when you look at the state guidelines from an events standpoint, to a consumption standpoint, there are rules and regulations that help build the model that we can have these creernts events a safe, and responsible way. i'm speaking here in favor. we're a state licensed cannabis event organizer. >> chairwoman: thank you very much. public comment is now closed. supervisor stefani. >> thank you, chair fewer. through the chair, may i ask supervisor manhandleman and question? >> chairwoman: yes.

>> i would like to know if you can explain the public safety reasons behind this legislation? >> yeah. and maybe -- with all due respect to some of the public comment, i think it is important to recognize what this legislation is not allowing is the widespread public consumption, by any means, smoking or otherwise, of cannabis. what this is particularly allowing is events where cannabis can be consumed and smoked in the discretion of the city, if it is appropriate. no one is going to be dragged to a cannabis event. it is at people's option whether or not they go. why -- and we know, actually, that there are currently, and have been for many, many years and decades in san francisco, events where cannabis is consumed, or cannabis is smoked. these have historically

been challenging events because they have been illegal. now that they are legal, we can regulate them, we can address some of the public safety concerns that we've had around these events in the past. as i think was pointed out last week, you know, at prior 420 events, people have purchased cannabis that they did not know had fentanyl in it. so people -- so that is a public safety and public health hazard. by regulating cannabis events, we make those events safer. we make them safer for the folks who attend them. and there is a strong public safety and public policy rationale for regulating these events, rather than just allowing them to continue sort of in the shadows without any regulation at all. so that is from my perspective the purpose of why we would want to legal -- to explicitly legalize the events and have them regulated. >> chairwoman: thank you very much. i also have a question for

the office of cannabis. i understand this is a pilot program. and so at the last meeting i spoke about a report back on what has been the impact of this. and so can you talk a little bit about what the report may include? >> sure. thank you for your question, supervisor. eugene hillsman, acting director, office of cannabis. i think it is really important to use the pilot space to inform our future process. in having a formal report, i do think it is important and necessary. one of the things that will be important to include in that report are a series of public safety measures, public complaints, and thinking about things like attendance of economic development and activity, the average time to receive permits, and the costs associated with the

permitting system. and i also think it will be really important to incorporate feedback from other offices, and also best practices. >> chairwoman: okay, great. and when do you expect you would have that report made. >> i think probably about six weeks after the last event. >> chairwoman: that's great. and that would be available for any supervisor to access, but is that also readily available for the public? >> absolutely. >> chairwoman: great. can you tell the public where they might find that report. >> we have a website currently, officeofcannabissfgo.org. one of the things we recomend is you actually add your name to our distribution list, and you can make sure you get all of the information about the office of cannabis and

activities. >> chairwoman: thank you very much. colleen, would you like to make a motion? >> i would like to move that we forward this to the full board with positive recommendation. >> chairwoman: i think we can take that without objection. thank you very much. madam clerk, will you please call items 2, 3, and 4 together. >> yes, item number 2, resolution authrising the fire department to accept a grant of $399,000 to purchase a rescue boat for the period of september 1st, 2018, through august 31st, 2019. and the item number two, to accept the grant to purchase rescue equipments and defibrillator. and item number four, resolution authorizing the fire department to expand a donation of a roof training prop, at

approximately $24,000, for the fire department's training division. >> chairwoman: thank you very much. we have before us today three accept and expend proposals, and we have mark carso, the chief financial officer for the san francisco fire department to present to us. >> good morning, madam chair and supervisor. mark carso to present on the next three items. item number two on your agenda -- >> chairwoman: excuse me. can i pause for one second. i believe supervisor stefani has something to say. >> thank you. just really briefly about item number two, and i wanted to let everyone know that the san francisco fire department's marine unit responds to hundreds of shore line and open rescue calls every year. not many people realize that the fire department actually pulls more people out of the water than they do out of burning buildings. as part of the 2018/'19

budget, i was able to advocate for $250,000 for the fire department's marine unit. and i'm very happy we have matching funds to secure this rescue boat that is going to be housed at the small craft harbor in district 2. i wanted to make those opening remarks. i'm really happy that we're able to get matching funds so we can purchase this boat. >> absolutely. we definitely thank you you, supervisor stefani, for your report. the first item is a program award from fema to purchase a new rescue boat. it will replace the department's current rescue boat which is over 10 years old and has had a number of maintenance and repair issues. having reliable and appropriate water resources is crucial to the department's emergency response. the total award is approximately $399,000, with a grant match for the department, which is covered in the department's budget. item number three on your agenda is another fema

grant, 2017 assistance to firefighters grant award for much-needed equipment. there are two projects for this grander. grant. one is for replacing defibrillators on the fire department trucks. and the second is to replace outdated hydraulic tools on fire trucks. they are used for technical rescues. new units represent increases in improvement and technology and performance and firefighter safety. the total award is about $2. million 7 million, with a matching component incorporated into the department's budget. and the item three is a donation, a roof training prop for the fire department, from j&j roof company. they have donated similar equipment to other bay area jurisdictions, with

the goal of improving training. this is a available and realistic train tool for our division of training staff. and i'm happy to answer any questions. >> chairwoman: thank you very much. i believe we have a b.l.a. report on item number three. >> good morning, chair fewer, members of the committee. i'm from the budget analyst office. yes, we reported specifically on the $2.7 million fema grant for the equipment and defibrillators in the fire department. this does have a 10% match, so it has physical impact. we summarized the grant budget on page two of our report, $273,000 in local city funds, that are in the department's 2018/'19 budget, and we recommend approval. >> chairwoman: thank you very much. let's open it up for public comment. are there any members of the public that want to comment on items 2, 3, or 4. seeing none, public comment is now closed. would you like to make a

motion, supervisor? >> yes. i would like to move items 2, 3, and 4 to the full board with positive recommendations. >> chairwoman: we can take that without objection. thank you very much. madam clerk, can you please call number five. >> it is the resolution authorizing the department of public health to accept and expand a monetary gift of the $141,000 from the frundfunds of dag laguna hana fr supplies and equipment for the period of july 1st, 2018, to july 31st, 2019. >> we have with us william fraser from the gift fund program. welcome. >> friends at laguna hana are a non-profit affective group, who have been contributing to the well-being and quality of life for the residents for

over 60 years. >> chairwoman: got it. >> they have done that through purchasing materials, supplies, equipment, and services directly in the past. they've also made quarterly reimbursements to our gift fund. this year we have, and moving forward, we have, a new process where they'll make their donation in a lump sum once a year. so hopefully you'll see me at least once a year. this year they are donating -- they have donated $141,000. $50,000 is what we call our wish list, that allows staff to purchase materials, applies, equipment, and services that enhance and contribute to our centers of excellence. our centers of excellence include positive care, palliative care, memory care, rehabilitation, and geriatrics, to name a few. $41,000 goes to pay for one year of services with our elders program.

$30,000 goes to technology that allows us to purchase equipment and services with emerging technologies, to the benefit of our residents. everything that laguna hana does have to have a direct benefit to our residents. and finally the last one, $20,000 for our memory care music programs. those programs are designed to help improve memory and cognitive function for residents with dementias. >> chairwoman: thank you very much. there is no b.l.a. report on this. colleen, any comments or questions for mr. fraser. seeing none, let's open this up to public comment. are there any members of the public who would like to comment on item number five. seeing none, public comment is now closed. seeing that this is a gift from the laguna -- friends of laguna honda, i hope we see you more than once a

year. i think i would like to make a positive recommendation to the full board. i think we can take that without objection. thank you very much. madam clerk, can you please call item number 6. >> resolution approving amendment number one to the agreement between community awareness and treatment services and the department of public health for behavioral health services to increase the agreement amount by $14.3 million, through june 30, 2022. >> chairwoman: okay. i am going to make a motion to call this to continue this to the call of the chair. thank you for coming today. let's open this up for public comment. are there any members of the public who would like to comment on item number 6? >> the last time i spoke

on this, my math was definitely off, and i believe that at $100,000 per patient per year per 80 patients, and hopefully dealing with the issues and matters which may uniquely impact the african-american community, experience in psyche, this may actually be a very good deal, despite the potential force of potential long-term costs. um...yet the closure of statement to hospitals -- sometime ago, like 50 years ago, under the state legislature, under governor reagan, intended to see many mental health clinics arise at the municipal, state, and local level. this clinic has hopefully been fulfilling that function. and i hope that it does continue. >> chairwoman: thank you very much. any other members of the

public like to comment on this item? seeing none, the public comment is now closed. i'd like to make a motion to move this -- continue this to the call of the chair. we can take that without objection. thank you very much. madam clerk, can you please call number 7. >> resolution approving amendment number one of the agreement between connor house and the department of public health to increase the agreement amount by $36.4 million through june 30, 2023. >> chairwoman: thank you very much. we have michelle, the director of department of public health business. >> before i start on the resolution, i want to strike the word "physical intermediary" to the page. this is a long-standing agency that the department of public health has

worked with. connor house provides supportive housing and outpatient services. in our contracts, we have about 432 units, or housing slots, that are contained in six hotels that they operate. and then 18 co-op apartments. and so the program provides supportive housing services, and then for those that it is voluntary, but it is outpatient services that go with it. and rent pay services. and additionally, there is an amount of funding that comes over from the department of homeless and supportive housing to fund -- oops, i hope that was from them. that send rent pay services, which are provided on behalf of connor house for individuals that don't live in their actual units of housing. so as you read, we're

asking today to continue to extend this contract through an amendment to make it a total of five years, from july 1, 2018, through june 30th, 2023. >> chairwoman: thank you very much. colleagues, any questions? let's pof vo pivot to the b.l.a. then and hear the report. >> connor house is selected by the department through a competitive process. we summarized the competitive process in page one and page 10 of the report. this is for outpatient mental health services for supportive housing. the department entered into an interim contract for $8.5 million for physical year 2018 for the full contract. it increases the contract amount to $44.9 million, and that includes a 12% cocontingency. it is summarized on page two of our report, and we

recommend approval. >> chairwoman: thank you very much. this opens up for public comment. any members of the public who would like to comment? >> seeing none, this is now closed. i noticed on the b.l.a. report, on page 13, that under the policy consideration, that you do an annual monitoring report on these community-based mental health providers, and you rate about the performance scores. and that particular organization rates very high. my question is: do you include client participation in the evaluations that you do? >> yeah. there is a section in all of these which is client satisfaction, which is administered through an annual survey. >> christopher: and >> chairwoman: and through that participation, has anything been brought forward that might need improvement? >> i did not bring their

monitoring score, but i don't think they would have received a three or a four if -- i think it is 30%. traditionally, they have not. i'm going to go out on a limb, and i can follow up, but i don't believe there is any issue brought forward by the clients through that survey. >> christopher: okay. >> chairwoman: i just think when we hear from the public sometimes about the services we provide, and this contract is an expensive one, of $44 million, is that it is due diligence to discover whether or not there are any red flags, and if they're being remedied to make them as successful as they can be. >> thank you. >> chairwoman: yes, supervisor stefani. >> thank you, chair fewer. i do have a question, too, on performance objectives. on page seven of the contract, on item 8, it says achievement of

contract performance objectives, that operations director, and director of supportive housing and community services meet by-monthly to support and for the collection of data. i'm wondering if that is public information that supervisors can easily get ahold of. >> i'm sure it's public information. i have to check if -- how we have -- i know d.p.h. has access to tracking. you can see indicators compared to themselves, or how -- or tracking progress. i need to check how you would get access to that. but i'm certain -- yeah, i can check. >> and, also, right above that item 7, it says all objectives and descriptions of how objectives will be measured are contained in the b.l.a. performance objectives in physical

year '18/'19. i know we'll be meeting to discuss the previous item, but if you can get a copy of those to me, that would be great. >> yeah. uh-huh. >> thank you. >> chairwoman: any other questions? comments? seeing none, i make a motion to move this to the full board with a positive recommendation. >> excuse me, madam chair, for clarification, the department has requested an amendment in the title to remove the fiscal interim mediary. >> chairwoman: do we have to vote on that or move it -- >> i believe you have to amend the legislation to strike those two words. >> chairwoman: i make a motion to approve the amendment, and we can take that without objection. i make a motion to move this to the full board with a positive recommendation as amended. thank you, madam clerk. could you please call item

number 8. >> resolution of approving amendment number one, authorizing the director of real estate to extend the release of real property located a 1316 mission street with s.f.p., for a total term of may 11, 2011, through september 21, 2020, with one extension of $26,000, for an initial base rent of $321,000, with a 3% annual increase. >> chairwoman: okay. my notes show that lisa is supposed to be here. are you submitting. >> good morning, chair fewer and supervisor stefani. my name is enrique pennick. i'm the director of real state. this item will be presented by the department of real estate, with questions from director of d.p.h. as necessary. >> chairwoman: thank you very much. you may start your presentation. >> thank you, and i appreciate the time.

i am here on behalf of the department of public works to seek your positive recommendation for a resolution for a two-year amendment to an existing lease at 1360 mission street. if approved, this lease will commence upon the board of supervisors' and the mayor's approval. it is 1316 mission street, suite 40. they consist of approximately 6300 square feet. the tenant is d.p.a. they have a staff of approximately 30 individuals. these uses will continue. as indicated, it is a two-year lease with a one year option to extend. the reason that this lease is so short is because of current landlord has plans to redevelop the property.

although we would normally not entertain such a short lease, this is advantageous in this situation because it defense the need to incur costs for relocation, new f.f.e., and new i.t., and the location is ideal for the d.p.h.'s current uses. if we do get the one-year extension, it is worth it to the department to defer those costs and business interruption. the base rent will increase the $50.28 per square foot, with a 3% increase over the current rent. this rent rate has been reviewed and approved pursuant to an appraisal by an ma mai appraiser. the lease is full service. meaning that the landlord pays all expenses, and this is unchanged from the current agreement. >> chairwoman: thank you. colleagues, any questions?

supervisor mandelman. >> i did notice that both this lease and the next are in hold-over status. so there were extension and they were not further extended during the actual term of the lease. i'm wondering, being new here, i don't know how often that happens, but it seems it is not ideal. and i want to understand how the department of real estate tries to avoid that happening. >> that is an excellent question. thank you for giving me an opportunity to explain the real estate's view on hold-over, if you'll indullcdullindulge me. it is the tenant who typically seeks an hold-over. typically hold-over is uged wheused when the tenant

either has a new space but is waiting to build that out, so they need some short period of time before their new home is ready, or we need extra time to negotiate a new lease with the landlord. or sometimes there is an indecision on the part of the tenant as to whether it is better to stay or to go, and hold-over gives them a little bit of leeway to make those deliberative decisions before they decide one way or the other. in this particular case, we did begin negotiations with the landlord prior to the expiration of the lease. the lease rate, as you know, is very close to the threshold to where we would need an appraisal, which is $45 a quar foot. square foot. we started negotiations below that threshold, and

when the negotiations got above the foot mark, it required us to go out and get an appraisal, which added time to those negotiations. there is a similar explanation for the next one, which i can get into when that item is called. basically in this particular case, the hold-over rate was actually advantageous to the city, which basically by delaying the increase, there was an effective savings. >> were are th what are the riso the city into going into hold-over. >> the risks to the city are uncertainty. when you have a fixed-term lease, the landlord can't terminate the lease say for cause. we're in a hold-over lease, it is by agreement. so there is an element of uncertainty that has to be weighed when deciding whether to go into hold-over. >> thank you. >> chairwoman: thank you very much.

let's get to the b.l.a. i think there is a report on this. >> yes. this would extend the lease, the existing lease, for 1316 mission for 18 months, through september 2020, within a one-year option to extend after that, to september 2021. the rent of $50 per square foot is within fair market value as determined by an independent appraisal. for the 18 months extension, the cost of the lease showed in table two on page 16 would be about $480,000 to the city, if the one-year extension goes to 2021, the total cost would be $820,000, and we recommend approval. >> chairwoman: thank you very much. let's open this up for public comment. is there anyone who would like to comment on item number 8. seeing none, the public comment is now closed. any comments or questions from my colleagues? no. thank you. i would like to move this

to the board with a positive recommendation. and they can take that without objection. thank you very much. could you please call item number 9. >> it is the resolution authorizing the director of real estate to enter into a lease of real property located at 720 ninth street for a five-year term to commence upon approval by the board of supervisors for a total annual base rental of $531,000. >> good morning, again, supervisors and the director of real estate. i also have lisa and david from d.p.m d.p.h. to assist me with this item. i'm here on behalf of d.p.h., seeking a positive recommendation for a new five-year lease with one five-year option at 729 729 filbert. the office space coiforts consis

of 11,06067 square feet. it is being used as a multi-lingual outpatient. the clientele is mostly elderly immigrants. this use would continue under the new lease. the city has operated in this location since 1993. this lease replaces an eight-year agreement that is currently on month to month hold-over at less than fair market value. getting to supervisor mandelman's question about hole-over, in this particular case, again, hold-over has been to the benefit of the city because it basically extended what was in essence a below market rental rate for an additional period of time. the benefits of this lease is for the community

services that are going to be provided. the building is well-suited for its current use, and again, it lim mateeliminates or defense te need for a new f.f.e. and know location cost. however, the space does need refreshing. there is anticipated an annual budget -- i mean a budget of $78,000 to do these repairs and refreshing. that is to be split between the city and the landlord, with the maximum cost to the city not to exceed $39,500. that concludes my presentation. i'm available to answer any questions you may have. >> chairwoman: thank you very much. let's hear from the b.l.a. >> yes. just to sort of to follow up on what mr. pannick had to say, we summarized the terms of this lease on page 20 of our report. the initial term is to

2024, the initial rent at $48 per square foot was considered to be a fair market value. cost to the city over the initial five-year term would be including the city's share of improvement costs would be about $3 million. i do want to clarify our recommendation because it is confusing. we are not recommending any amendments to the resolution itself. we considered the budget in the existing year. the budget for this lease is more than the actual lease cost. we're asking this committee to request the controller to return those funds to the fund balance at the end of the fiscal year. but we're not asking for an amendment. so we are recommending approval of the proposed resolution. >> chairwoman: thank you very much. hello. >> madam chairwoman, my name is david borganoni, with the department of public health, and i just wanted to clarify that the department of public

health is expecting to achieve that savings and has been an assumed part of our six-month report. we're agreeing with the report and not refuting the savings. >> chairwoman: thank you very much. colleagues, any questions, comments? let's open this up for public comment. any members of the public like to comment on item number 9. seeing none, the public comment is now closed. so i'd like to make an official request to the controller to redesignate the funds of $115,185 to be returned to the general fund. i think we're in agreement. thank you. and then i'd like to move this with a positive recommendation to the board. you can take that without objection. thank you very much. madam clerk, can you please call item number 10. >> a resolution approving the contract and agreement between the city and the dominion voting system for the lease of a voting system for a contract term from january 1, 2019,

through march 31, 2023, in an amount not to exceed $8.4 million, and with two one-year contract extensions, not to exceed $12.6 million. >> chairwoman: thank you very much. we have here the director of the department of elections. >> hello. john armstrong of elections. i'm here to seek the committee's recommendation to the board to approve the contract that the department negotiated with dominion voting systems. first i want to explain why this is a retroactive approval of the contract. the reason is the contract negotiations ended in january, and i submitted the resolution to approve the contract to the clerk's office in february. there has been no work that has been undertaken by the department or dominion under the contract, and no payments have occurred under this contract. so it is a timing issue. that's the reason for the retroactive approval of the contract. regarding the contract, it is a lease agreement. it is a four-year term

that does have two one-year options to extend. the cost is $2.1 million per year. under the contract, dominion is responsible for all system and equipment maintenance, which includes providing all replacement parts and repairs. dominion is also obligated to provide the city with any upgrades or improvements to the system developed during the agreement. so some fundamental features of the voting system, all votes will be cast using paper ballots. the voting equipment operates by scanning the voter ballots bl by scanning images. and there be a statement on how the system counted each vote. and it would indicate when they could not determine the book markings and which need additional review. another fundamental feature of the system is it supports the city in conducting rank choice voting elections.

the new system will i increase the number of possible rankings to 10, compared to a maximum three rang kin rankings with the previous system. even with the increased number of rankings, it uses a grid-like pattern, listing candidates on the left side, and each ranking listed next to the oval shape. they can participate in an r.c. v. voting contest. transparency has improved since the system captures images of every voted ballot that the department can then post on its website for everyone to view. each image of a ballot explains whether the

voting equipment counted each vote, and if not, the reason why the vo wa vote was not tallied. it uses transaction and event logs that are formatted in open logs that are human readable and can be posted on the department's website. dominion is developing an application that the department can also post on its website, that allows member of the public to sort through by candidate, contest, or measure, and then use the application to tally votes, using the markings on the ballot images and to compare against official results reports. this system will support the city applying post-electripost-election, risk-limiting auditing. it supports the likelihood that an election results are valid. it increases the level of randomness for selecting ballots to hand count, and compare those manual tallies against the official reports before an

election company certifies it. the idea of selecting ballot cards to hand count in a random matter removes the possibility of any improper selection of cards to include in the audit. next, regarding system security, the integrity is based on a multi-layered approach. all voters, again, will use paper ballots, and it will create a physical record that cannot altered by equipment. and it can be posted on the department's website for public review. the secretary of state has approved this voting system for use in california under the most recent security standards. one central element of the news standards is not of the voting systems applications or functions can broadcast on or connect to the internet and wireless systems. also, the system must be implemented so it never connects to an external network, which is called

an air gap, and the system encrypts the data before the data can be used. access is based on described, user-defined roles, and it requires completion of a two-step authentification process. another element of the system security is the that the vote by mail ballot are processed by using commercial, off the shelves scanners, and they use unmodified software. they are recorded on transaction and event logs in open file formats, that are human readable. and the department can post on its website for public review. the contract requires dominion to meet with v.a. c., and the purpose is the to all them to have input and suggest possible improvements. dominion must report back to the group on whether their suggested improvements will be implemented. and dominion must indicate

if the suggested improvements cannot or will not be implemented. in addition to meeting with the department of v.a.c., they have to meet with members from other bay area counties in separate meetings, regarding possible improvement and regarding assessability. while using the dominion system, however, the city will continue its effort to develop its own open-source voting system. they are part of a project team dedicated to the development of an open-source voting system. the department technology has issued an r.f.p. for document specifications, and other information related to the efforts. the department of technology has already begun identifying and considering possible partners who can bring existing work on resources to the development of an

open-source voting system. l.a. has developed their own voting system, and even though it is open source, they have provide some good practices, i'm sure. and also discussing with non-profit contractors to see if we can leverage their work in the city's development efforts. the department of technology expects to hold public meetings for input from the community, regarding specifications to use when building the system. regarding the timeframe for developing an open-source system, the contract term of four years is very short for a voting system agreement. and the reason for this limited term is that the contract essentially contemplates the city moving to a voting system of its own development after the contract term ends. the two one-year options to extend are intended to allow the city time for development or certification, if necessary. also, if the city does complete its development of the open-source voting system and has the system certified by secretary of state, before the four-year term, the city

can terminate the agreement. regarding outreach, the department will use the method to immerse voters with information on the new system and the new ballot format. the department is already repairing materials on the new system and the new r.c. v. ballot format. thethe department wants to benefit from the successes of its outreach methods for the first time since 2004, and the school board elections in november 2018. the department included a request of $250,000 in grant funds in the fiscal year 2020 budget to conduct outreach to their communities. the department will also follow past practices of placing notices in local newspapers and on local radio and television stations, particularly those that provide content in languages over english. we will place notices on public transportation vehicles, bus shelters and

stations, also in lang waiplanguages besides english. we will use english, chinese, and filipino, to receive instantaneous feedback. we'll send notices to every residential address in our city, and there will be sections on the website dedicated to specific languages. we will format the balance to include information on how to properly mark votes, including the r.c.v. contests. every voter will receive instructions in both graph and technical illustrations. the pamphlet will include a section on the new system and a new ballot format. and when voters go to their polling places, they'll see notices attached to the inside of the voting booths. all of these outreach methods will be included

in our plan, and our department will post on our website for public input and review. there are 300 organizations in our contact list and they'll contact them for their review and input. so i know it is a lot of information. i'll take any questions you have. and thank you again for the time to present this contract. >> chairwoman: thank you very much. let's hear from the budget legislative analyst first. >> yes. we summarize the budget for this contract on page 25 of our report. the first four years, the contract would be about $8.5 million, general fund costs. my understanding is that the initial costs for 2019 are already in the department's budget, previously appropriated by the board. the contract would go through 2023, if there is a need to extend the contract, there is a two-year extension through 2025. we recommend approval. >> chairwoman: thank you

very much. colleagues, any questions, comments? let's open this for public comment. any members of the public like to comment on item 10. seeing none, the public comment is closed. i have one question: how much have we been spending per year on our voting system, and how much will we save through this new contract? >> i didn't grab those numbers before i came up here. there is a bit of extra costs with this system compared to the overall costs with the previous contract. but the service levels are greater with this contract. and also, just the flexibility that this system provides greater transparency. i'll have to get back to you. i forgot to do that before i got up here. >> chairwoman: no problem. any other questions or comments. i make a motion to move this to the full board with a positive recommendation. we can take that without objection. >> thanks, guys. >> chairwoman: thank you. madam clerk, do you have any other business before us today?

>> there is no other business. >> chairwoman: great. this meeting is adjourned.

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