>> chair fewer: good morning, everyone. [gavel]. >> chair fewer: the meeting will come to order. this is march 6 -- no, this is not march 6. this is march 13 -- i'm so sorry, and -- this is march 13, 2019, and this is the regular meeting of the budget and finance committee. i am sandra lee fewer, chair of the budget and finances committee. i am joined by supervisor catherine stefani, vice chair,

and soon to be joined by supervisor raphael mandelman, who is running this late. madam clerk, do you have any announcements? >> clerk: yes. [agenda item read]. >> chair fewer: thank you very much. can you please call item number one. >> clerk: yes. [agenda item read]. >> chair fewer: thank you very much. there's no b.l.a. report, but i believe we want to hear from the sponsor today.

>> my short little self. good morning, supervisors. sunny angulo on behalf of supervisor peskin. i think you continue the item to the call of the chair. i think we are absolutely looking forward to entertaining and reviewing a new contract, but at this point, we would like to keep this pressure on and get this done. it's gone on for a very long time, and i think we're ready to see finally a new contract put before you. >> chair fewer: thank you very much, miss angulo, we'll open this up for public comment. >> supervisor mandelman: chair fewer? >> chair fewer: yes.

sorry. >> supervisor mandelman: it seems the contract is coming up, we think, we hope, we are assured, that it makes sense to extend the contract for another -- what's the -- what is the practical difference between continuing this to the call of the chair versus just extending this for another month? why would we do that? >> we have also gotten assurances many times that these extensions would not be necessary, and so i think we need to sort of call this question of, you know, we want to see the new contract. we don't want to have to continue to come back over and over again for extensions, and i think the only way to do that is to not continue to have the extensions moving forward. and, i mean, i don't know if that answers -- >> supervisor mandelman: yeah. the chair tried to do this last time.

she was going to extend this to the call of the chair and out of some concern for what potential effect on my district would be, i requested to have this continues for two weeks until today, so it would have been awesome to have this heard before today. >> new contract. >> chair fewer: thank you very much, supervisor mandelman. so let's open this up for public comment. are there any members of the public that would like to speak on this item? >> not exactly a member of the public but i would like to speak on this item. i'm julia dawson from public works. i understand the sponsor's concerns, but i also hear supervisor mandelman, and our department has been acting in good faith, trying to work with the sponsor to move forward the new agreement with you, but without an extension, we technically don't have a contract? and while i understand that that's not the board's doing, i'm sort of respectfully ask

you you to consider that. i don't think that the two are necessarily so linked and that by not having us be in compliance, it's not putting anymore pressure on us -- we already are under pressure to get this new agreement to you, so i would at least request consideration of that as something that would help kind of make us in a better position to bargain in good faith with j.c. decaux rather than sitting out an amendment to extend the current agreement. thank you. >> chair fewer: thank you. any other public comment? seeing none, public comment is now closed. [gavel]. >> chair fewer: so this item was continued from two weeks ago -- do you have another comment? yes, supervisor mandelman. >> supervisor mandelman: so i know you may convince me to

move it to the call of the chair, but i did not anticipate this was where we were going to be right now. and so rather than, you know, just continuing it to the call of the chair, i mean, i would be willing to continue this for another week to have further conversations from supervisor peskin's office is. i don't know where supervisor stefani is. >> chair fewer: thank you very much. supervisor stefani? >> supervisor stefani: thank you, chair fewer. i think that continuing this to the call of the chair, there is a chance we can still hear this next week. if we continue it to the call of the chair, there's no reason we can't put this on next week's schedule. that will be up to chair fewer, of course, but i'm in deference to the sponsor, continuing it to the call of the chair knowing that if further talks occur, we could put it on the

agenda for next week. >> chair fewer: thank you very much. having heard that, i'd like to make a motion to continue this item to the call of the chair. can we take that without objection? okay. thank you very much. [gavel]. >> chair fewer: madam clerk, can you please call items number two and three together. [agenda item read] [agenda item read]. >> chair fewer: thank you, madam clerk. i see we are joined by

supervisor haney. supervisor haney, would you like to me? >> supervisor haney: yes, thank you, chair fewer, and thank you for bringing me in on this item. i did have the opportunity to speak with a number of organizations, with la cocina a number of numbers and with mohcd and bringing this back and will ask you if you all will approve this as is. we're obviously all committed to build housing across the tenderloin, district six, and across san francisco, and i'm committed to making sure we do that quickly and on as many sites at possible. this particular site on 101 hyde is a site that will ultimately become affordable housing, and i'm very excited about that, but i'm also excited about what we have in front of us in the interim. this is on the corner of golden gate and hyde on the corner

that i live close to is in serious need of immediate activation. i think the plan for this space is thoughtful, intentional. la cocina will put a spot in here that serves delicious food. this is a part of my district that is needed that is going to activate for everyone in the area that is going to provide a lot of economic opportunity in the community. so i'm grateful to everyone in this space who got us to this point. i think with what i've discussed with mohcd that the timeline makes sense and we will build housing on the site

over the next few years and ultimately on 101 hyde. this is something that you'll hear, many of whom advocated for the site to begin it, secured it, are very excited about it happening. this is desperately needed for the tenderloin, and i want to ask you to approve it. >> chair fewer: thank you very much, supervisor. i believe we have mara blitzer here from mohcd. >> that's correct. thank you, committee members and thank you, supervisor haney, for your supporting statement. i'm mara blitzer, director of housing development. item number two is an item for you to authorize a lease between the city and la cocina. it would operate through december 31 of 2025. item three is a gift and

expenditure related to tenant improvements for that food hall. these itemed were continued from last week -- these items were continued from last week. the lease will run through december 31, 2025 and it replaces an existing year-to-year lease that was put in place last june. the monthly rent proposed is $5,000 per month plus 5% of tenant income. la cocina is responsible for the improvements, and they're responsible for all costs associated with operating the premises, which is an amazing foot hall -- food hall concept. construction on those tenant improvements are expected to begin in may of this year with a soft opening of the hall in november and a formal opening in january 2020.

following the expiration of the interim lease, 101 hyde will be developed at affordable housing. mohcd expects construction of that housing to take 18 to 22 months to complete and assuming we have funding approval by the board of supervisors, construction would be completely in 2026. last time we heard that a community's vision for affordable housing would not be realized, we want to assure you that affordable housing will be built at 101 hyde. given other financial commitments that were further along at the time of the land dedication of 101 hyde, we still do not have a funding source to pay for the construction of affordable housing. we do expect an additional gift from the san francisco foundation of $5 million for

affordable housing at the site, but the initial cost for affordable housing at the site is approximately $38 million. althou they have construction permits pending. mohcd remains highly committed to developing 101 hyde as permanently affordable housing. we ask the committee to approve the lending and the lease as well as approve the resolution and the expenditure to support the tenant improvements.

that concludes my preventiosen, and i'm happy to answer any questions. >> chair fewer: we had a proposal last week. are there any updates? so let's call public comment on this. i have some cards. si sim [names read] >> chair fewer: please come up. everybody, you'll have two minutes to speak. first speaker, please. >> good morning. my name is simon bertrand. my job is to provide supplem t supplemental cleaning and we operate the same passage program in the tenderloin. i wanted to speak in favor of the lease.

we are very much looking forward to an active commercial and community use on this site. it is currently as a boarded up former post office, a very challenging site, and we think that bringing affordable afford options to the tenderloin as well as providing economic opportunity for women entrepreneurs, especially immigrant women entrepreneurs is something that the tenderloin could really benefit from, so please do approve the six-year lease to allow la cocina to occupy the space. thank you. >> my name's dan williams, and i'm the owner of piano fight on eddy and taylor. my son goes to a school in the p.u.c. building, so my commute to work after i drop my son off is right back 101 hyde. i think that this project can be an amazing revitalization of that block, and to think that

after so long, having that space be a boarded up space, that it's going to now go into construction for two years just feels like you're sort of taking away the -- the hope to the other entrepreneurs around here, george and lenny, all-star doughnuts, that could benefit from additional activity on the block. i think one of the things we forget about in the tenderloin are the other entrepreneurs that are there already. so giving benefits to new entrepreneurs is great, but the businesses around it, it has a compounding effect. we've seen it in our business, taylor street, when a new business comes in, it supports everyone. so please support this project. thank you. >> good morning. david elliott lewis. 36-year resident of san francisco, 14-year resident of the tenderloin.

this block is hurting, and this particular site, 101 hyde, closed in 2016, and it's been -- i hate to use the word blighted, but yes, blighted with homeless encampments, open-air drug dealing. but this -- the solution of long-term affordable housing is still seven to ten years away. if you don't approve this lease, the neighborhood will continue to suffer. there's so many good things as you've heard that will come from this lease, helping immigrant mother entrepreneurs building their business, but it'll just help the block, it'll help the community. please, approve this lease. the 6.5 years that la cocina is asking for is needed to help payback the 4.5 or $4.6 million investment they're making to building the kitchen facilities and food kiosks.

they need this time to make the money work. we have people from the collaborative, part of tenderloin housing clinic in line, if you could raise your hands, supporting the project. see all those people? there's a number of people from the community who support this. if you don't take action, it will just -- the neighbor will continue to suffer and suffer and suffer. i hope you'll consider the community's request to allow although cocina to build this much needed, much deserved space that will help so many. thank you. >> good morning. my name is abraham fields. i'm a housing advocate as part of tenderloin housing clinic. i'm here in support and i'm here to read a translated message from a tenant whose name is margarita menet.

margarita -- i'm going to start reading the statement now. i would like for the la cocina project to continue because it was going to benefit many people in the neighborhood. personally, i was very excited about this project because i've been planning on having my own business of a bakery and a desert shop with although cocina. we've dreamed and worked so hard for this dream not to be realized. it does not seem just for you to change your minds just like that and abandon all of your work. [speaking spanish language]

>> good morning, supervisors. my name is gail seagraves. i've been a resident of the tenderloin for 17 years, and i am a member of the central s.r.o. collaborative. i am very much in support of the 101 hyde or extending -- having the lease for six years. it's very important. it's going to do amazing things, especially for that corner. it's going to open up jobs, it's going to have affordable food. it's just positive all the way around. i really hope that you will approve this for la cocina. thank you very much. >> good morning, supervisors. my name is preti --

[inaudible] >> today, i agree with every speaker who spoke in front of me, but i'm going to read a statement from a few arab men who actually two e.s.l. classes and they cannot be here because the classes are going on. we the mothers of the e.s.l. class at 2 and turk, we've been concerned about safety in the tenderloin for many years. some of us have lived in the neighborhood for many years and raising family here. couple of years when we heard la cocina would be opening up their first market at 101 hyde, we were concerned that there would not be opportunities for women of color to open up and run their own business. we feel positively activating the space would open up the block which is much needed for tenderloin residents and people

that work there. we hope that city would approve the lease for six years at lease and to own and activate the corner. we would welcome that. thanks. >> good morning. my name's kim jackson. i'm here representing local two, the hotel workers union. with my tenderloin neighbors, our union haul, the home of our 12,000 members is on the 200 block of golden gate office, which is less than a block from the old post at 31 hyde. local two has a long, strong history of supporting affordable housing. we also are deeply engaged in the project of organizing for street safety in our tenderloin neighborhood. the corner of golden gate and hyde has been a source of pain and danger in our neighborhood

for many years, and the city's choice of boarding up the property more than three years ago created a dead space, a no man's land, and it only made things worse. we see daytime stabbings and of course open air drug dealing on that corner. we couldn't allow the status quo to continue. the situation was frankly too dire, and if you question what i'm saying, it's a 7:18 walk from city hall. so we got to work, we rolled up our sleeves and painted and maintained a community mural. we need this stuff. we need a six-year lease. thank you for your consideration. bye. >> chair fewer: thank you very much. next speaker, please. >> i'm david seward with the

university of california berkeley hastings college of law. we support la cocina. we want them in the neighborhood. we are going to be supporting them by having our catering services, having the students avail themselves of that location. it's an activation of this corner. hatin hastings wants this, and we're going to support this very much. >> chair fewer: thank you. next speaker, please. [speaking spanish language]

>> hi there. i'll be translating for her. good morning. my name is joanna ramirez. i'm a community leader in the tenderloin. good morning, all. your work is admirable since in your hands are the most important decisions of our city. for the residents of the

tenderloin it was very important to focus on the neighborhood. la cocina allows us to improve the economy of our neighborhood, minute maze the sale -- main mi-- minimize the sale of drugs while allowing delicious meals in a culturally appropriate setting. we need to fight for projects like la cocina to become reality in the tenderloin and not allow it to be overlooked. thank you. >> chair fewer: thank you. next speaker, please. >> hello. good morning, everyone. my name is karina. [speaking spanish language]

>> good morning. my name is karina mora. i am in support of la cocina because it will benefit not only the community but many women to start their business, giving them a better quality of life and their loved ones. this is the type of inspiration we need in the tenderloin, so i do hope you support this in provide this type of support in our neighborhood. >> chair fewer: thank you very much. next speaker, please. >> good morning, supervisors. my name is felicia smith, and i reside at hyde and geary, which

is just a couple blocks up from this area. in my opinion, this is a win-win situation. it's giving people that ordinarily wouldn't have a chance to start their own business, it's giving them a chance, and it's also cleaning up the area, making it so it's not such a dead zone for the open-air drugs. i walked through there a couple of years ago and didn't realize it until i was listening to the news that night, i walked through when they were having a gun fight. you never know when something like that's going to happen on that corner because it's so bad. i think this business will help make the neighborhood a little bit better. thank you. >> chair fewer: thank you very much. >> good morning, supervisors. we are la cocina, and we are very grateful to the community for supporting this project. we are very grateful to

supervisor haney for supporting us. i will not repeat all the great things that everybody has said. i want to introduce our entrepreneurs. these are the businesses that will be in the market hall. two of the women, they're out working right now, so they sent they are family members to represent them. >> hi. i'm from west africa, senegal, and i'm really happy for you to be supporting this program i'll be one of the businesses bringing my culture, my food, and also everything else that i have lived and experienced throughout my life living here in the city to the tenderloin to be part of the community, so i'm hoping that with this project that you guys will allow us to not only support our families, make this a brick and mortar where we can support our families and also create a

generational income, not only for me, my family, but also the other people that will be working for me, as well. thank you. >> good morning. sorry. my name is cynthia salazar. i'm here representing la cocina, and also my mom. she's an entrepreneur in la cocina. i've been a tenderloin resident fo for 17 years and i've seen everything everyone has spoken for, and it's pretty bad. we are definitely in need of this project, and i hope that you really support this. i can count on my hands, we have three bars on the radius of the block about four corner stores, so please support this. thank you. >> i am here on behalf of my

wife. we will be opening a place called chaima. it is a place where we shart hospitality -- share hospitality with the community. and we hope that you support this project. >> thank you, supervisors. [speaking spanish language] >> we need more chances to have differing opportunities and the people can be immersed in culture. in the tenderloin, culture have a lot of labels, but this is

good opportunity to make a difference. thank you so much, and think about that. >> chair fewer: thank you so much. any other public comment? seeing none, public comment is now closed. [gavel]. >> chair fewer: colleague, this seems like a win-win. make a motion to send this to the board with a positive recommendation. thank you, supervisor haney, we can take this without objection. [gavel]. >> chair fewer: madam clerk, can you please call item number four. [agenda item read].

>> good morning, chair fewer. jeremy spitz, department of public works. [inaudible] >> the grant is effective from july 1, 2018 through june 30, 2019. a little bit of the history, public works entered into the first grant agreement with barton in february 2016 to provide pit stop locations near the 16 street and mission street stations with each agency providing $50,000 to fund the program. this is retroactive because negotiations with barton again in 2018 on the second amendment

to the grant agreement. the agreement was finalized with barton staff in september 2018 but not approved by the barton board until november 2018. barton has not yet transferred funding pending passage of this resolution. if the resolution is passed, barton will reimburse barton's share for the pit stop expenditured between march 2018 and march 2019. we understood that funding would be coming from b.a.r.t. and we did not want to cease operations while we were waiting for the funding and approvals. >> chair fewer: thank you very much. let's hear from the b.l.a. >> good morning, chair fewer. severin campbell from the budget analyst's office. the total budget is 450,000.

we show the budget on page four, table one in our report. this shows that the grant is retroactive. these are funds that b.a.r.t. has been putti-- that the pit have been putting forward that will be reimbursed by b.a.r.t. >> chair fewer: thank you. lets open this up for public comment. is there any member of the public that would like to comment? seeing none, public comment is closed. [gavel]. >> chair fewer: colleagues, do you have any comments or questions? seeing no comments or questions, can we take this without objection? thank you. that is approved without

objection. [gavel]. >> chair fewer: madam clerk, would you please read the next item. [agenda item read]. >> -- these state transportation funds are part of the local partnership formulate program created under the road repair and accountability act of 2016, otherwise known as senate bill one. on january 31 of 2018, the california transportation commission adopted and programmed 2,083,000 for this project by in october of 2018, they preprogrammed 333,000 from this project to our sunset and park side street pavement project due to lower project pavement costs.

this project will provide improvements to san francisco's critical road system, and i am joined today by the project manager and we'd be happy to answer any questions. >> chair fewer: thank you very much. let's hear from the b.l.a., please. >> this grant provides matching funds for the sb-1, senate bill 1's matching funds to the project on allemeny boulevard. the total cost is 3.5 million. the city's share of the costs come from proposition k sales tax funding. we have a detailed budget on page ten of our report, and we recommend approval. >> chair fewer: thank you very much. let's open this up for public comment. are there any members of the public that would like to comment on item five?

seeing none, public comment is closed. i'd like to make a motion to move this to the full board with a positive recommendation. we can do that without objection. madam clerk, please call item six. [agenda item read]. >> chair fewer: thank you very much. i believe we have mr. omar cortez from the mayor's office of housing and community services. >> good morning, committee members. my name is omar cortez and i'm senior project manager with the mayor's office of housing and community development. i'm here to present on item number six. this item relates to resolution for proposed bonding issuance for an existing affordable housing development located at 385 eddy street, left side known as the hamlyn. the purpose of the resolution

before you is to approve the hearing the city conducted to comply with the tax exemption and project reliability act. to radfy and approve several sections to make the bond issuance possible. this includes the submittal of an allocation of bonds. it is important to show that the issue wednesday will be conduit financing and will not require the city to pledge any of its money for repayment of the funds. there are 67 s.r.o. units in the project. 100% of them will be affordable to households earning less than 60% of the area median income.

residents of the hamlyn will be temporarily relocated during the project's rehabilitation but will be able to return to their unit following rehab completion. mohcd plans to return to the board for bond issuance approval for the project at a different time later this year. here with me today are representatives from chinatown community development center, the project developer. my colleague with mohcd is also present. we'll be glad to answer any questions you may have about this question. however on behalf of mohcd and the project developer, we would like to first thank you for your consideration here today and ask you for your continued support for this project. >> chair fewer: thank you very much, mr. cortez. there is no b.l.a. report on this item, so let's open this

up for public -- public comment. are there any members of the public that wish to comment on item number six, seeing none, public comment is now closed. colleagues, any questions or comments? no? i'd like to make a motion to forward this to the full board with a positive recommendation. with that, madam clerk, call item seven. [agenda item read]. >> chair fewer: thank you very much. we have claudia jay gorham, the deputy managing director from our real estate division today. >> good morning. thank you, chair fewer and supervisors. the department of human resources has been at 1740 cesar chavez since 2008.

it conducts civil service examinations at the site and other departments also use it for trainings, meetings and conferences. it accommodates over 300 test takers as well as large rating pams. the board last saw this lease when -- panels. the board last saw this lease when it extended the original lease. it would approve a second five-year option. the base rent is lower than 95% of the prevailing market rent for similar space and is about 38.16. while it is an increase, the last time we came before you was 2008, and a lot has changed since then. given that the fair market rate is less than 45, an appraisal was not obtained. the base rent will annually increase by 3%, and in

addition, we negotiated that the landlord would provide a tenant improvement allowed each year of $55,000. the city will continue to pay for utilities and maintenance as provided. i am happy to answer any questions. >> chair fewer: thank you very much. colleagues, any questions? if not, let's hear from the b.l.a. >> this lease actually renewed in 2013 and approved by the board. at that time, there was an increase in space being used by the department of human resources. as miss gorham said, the rent at $38 per square foot is actually considered lower than comparable rents in the area. there was a review although not a formal appraisal done by a third party, kinder matthews. we show the terms of the lease and summarize them on table one, page 12 of our report. the cost to the city over the initial five-year term is

2.3 million under the terms of the lease, and there is an option to renew the lease for an additional five years after the end of this lease, and we recommend approval. >> chair fewer: thank you very much. let's open this up for public comment. are there any members of the public that would like to comment on item number seven? seeing none, public comment is now closed. i would like to make a motion to move this to the full board with a positive recommendation. and we can do that without objection. [gavel]. >> chair fewer: madam clerk, will you please call item number eight. [agenda item read]. >> chair fewer: thank you very much. i think we have tony barto here. >> yes. >> chair fewer: for the san francisco public utilities

commission, the assistant real estate director. >> yes, commissioners t. good morning. tony barto, deputy real estate director of the p.u.c. the resolution before you seeks a termination of the exiting lease between the sfpuc and orchard supply, l.l.c. as of april 30, 2019. before i continue, i want to give you a -- some sense of what i'm talking about. the diagram that you see here on the screen is the p.u.c. parcel 29 of a six-lane road to the lower left-hand side portion of the diagram is el camino real and millbrae. on the opposite side is a caltrain right of aw-of-way, a some point in the future, the

high speed rail corridor. the area highlighted in yellow towards the lower part of the program, lower right, is the orchao orchard supply hardware, or o.s.h. the o.s.h. current lease, we only obtain payment on the land. there's basically three structures, and the lower right is their former hardware store and garden center. across from that is a small retail pad that houses a k.f.c. restaurant, and far in the back is a very important building that i'll get to in a minute. it's a warehouse. also located next to the warehouse is the p.u.c.'s groundwater station which was developed there a couple years ago. now for a little bit of background. the original lease was originated in 1984.

it's a 30-year lease with two ten-year options. the tenant back in 2014 extended t extended the lease term to april 30, 2024. let's advance to 2018 now and on august 22, lowe's home center which is the parent company of o.s.h., announced the closing of all california stores. shortly after, o.s.h. made an offer to p.u.c. to terminate the lease, and based on staff analysis, we found it to be in the city's best interest to terminate the lease early. the early termination allows the p.u.c. to occupy an existing warehouse which is a really nice bonus and lease the two additional structures: the o.s.h. store and the k.f.c. restaurant to other tenants in the short-term while we do an

assessment of our needs and do an r.f.i. and potentially redevelop the property to serve p.u.c.'s current and future needs down the road. i think this demonstrates why it's to our advantage, the city's advantage to terminate earl. the first is the cash flow expected from the lease as is if we were to let it expire naturally on april 30, 2024. as i mentioned earlier, it is a ground lease. all we are entitled to is ground rent, and that's below market rent. the tenant will pay us roughly $17,000 in property reimbursement for a total income of $6.5 million. the next column over is a

schedule of anticipated revenues, assuming we terminate the lease as of april 30. we still get the ground rent, but the ground recess is now at a market rate of 8.23 a square foot. down below, you'll see now we get to collect rent on the improvements. the improvements under the ground lease don't become the property of the city until termination of the lease, so we could never earn rent on those improvements, just the ground. but once the lease terminates, those improvements become the property of the city and we can earn rental income on those improvements. i've provided a vacancy loss of $2 million. there's a potential we could find lose when we do an r.f.p. to find tenants -- the two short-term tenants for the

property. but wait, there's more. the real bonus is this warehouse. is really is a much-needed warehouse by the yard next door. this warehouse -- let me just point it out to you one more time on the map. i wish i could point here -- i really can't, but there's this rectangular building in the middle of the screen to the right. that's the warehouse and it sits adjacent to our corporate yard. the intention is to make a break in the fencing there, and our yard personnel will have direct access to a much needed warehouse. so any questions concerning the term -- early termination of the agreement? i know -- i understand that some of you may have questions regarding the long-term use of the property, and the general manager, michael carlin, of the

p.u.c. is here to address those questions, but before that, if you have any general questions, i can answer those. >> chair fewer: supervisor stefani? >> supervisor stefani: yes. when you say a much needed warehouse, what is it going to be used for? >> much needed storage for the yard next door. >> chair fewer: and i wanted to know how large is the actual parcel, the overall parcel that p.u.c. owns. >> i believe it's around 14 acres. the piece that is highlighted in yellow in the diagram is roughly 4.6 or 4.7 acres. >> chair fewer: so could this -- so what are -- i'm just kind of wondering if the r.f.p.

has to be for retail or could it be for affordable housing? i just thought they'd put that out there. >> i'm going to put it before michael carlin, department general manager of the p.u.c. >> the current agreement we're going to put out is short-term, five to eight years. that is to occupy the building, to make it safe because we have a security issue there where we're getting some dumping of trash and things of that nature. the second thing is we're looking at, and supervisor stefani mentioned it, we have lots of material that's sitting outside, exposed to the elements, and we want to move it into a warehouse, and we haven't done a needs assessment of this corporate yard. it is a large site. that's the second step we would take after we put out the

r.f.p. for a corporate rental. this does include a laboratory that does all the testing for our drinking water system. it has all the administration for our drinking water system as well as our maintenance crew that is there 24-7. [please stand by]