appreciation for your presentation and the information to be presented in the discussion today and also appreciate all of the work that you and the other community advocates had done over the years in a good faith effort to really partner with these companies and despite the frustrating outcomes. thank you. colleagues maybe we could move to public comment. >> thank you very much for holding this hearing. >> one point of housekeeping before public comment. we have received a temporary committee assignment memo from president yee assigns supervisor

haney. it is the three members behind the committee rostrum. >> so quorum these three members if super visor brown has to leave we still have these members present. >> thank you. if members of the public wish to testify, please line up. you have two minutes for public comment. >> i have to go. >> come on up. >> i would like to have time like everybody else. >> come forward. >> public comment is limited to two minutes. >> first of all, this is tax

evasion, money laundering and bank fraud. >> step up to the microphone. >> you talk interest somebody spending time to take care of accident. i went to internal revenue to get the correct for to file a complaint for the inspector general. i will deal with my federal contacts. you are in violation of the rico act. you are running a corrupt enterprise money laundering and bank fraud. when i finish my thesis this will be part of it. $55 million of tax free money. here. twitter. $91 million in that quarter. twitter. $733 million tax free money. that is tax evasion. as a result the city and county

of san francisco ends up with an $88.2 million negative cash flow in the last several months. lee projected $262 million was a deficit that was going to take place over the next two years. on top of that you have got a projected shortfall of $643 million deficit because of the way you are taking care of business. by the same response it is further projected that $5.5 billion in the general fund in the expenses for the city is to grow to $1.4 billion. that is included in the complaint. townshipter is making fools -- twitter is making fools of you. it is going to chicago building

a skyscraper. >> thank you. next speaker. >> next speaker, please approa approach. >> you are as bad as twitter treating me like that. then you have city college $32 million negative cash flow, too. another problem with city college. >> mr. right, please. >> this is an assault on my intelligence. you let everybody else speak for

five or two minutes. i am the best god dam speaker showing where the money is wasted. i told you about twitter two or three years ago. you wouldn't do a thing about it. now you want to do something about it. >> will the next speaker please begin. >> thanks for calling this important hearing. i appreciate the questions and content of information produced today. we have heard a little bit that some community benefits are being produced and some ta tax revenue generated. bright line has worked on local hiring policies we believe work force policies are key to economic development. we would love to remain engaged in the discussion.

it is important to ensure that in the future when we have these policies that provide the carrot to companies to come to san francisco that we don't create a locust environment where they come in to take advantage of san francisco and not generate job growth for key communities displaced. in hoping this discussion will continue we will continue to track local hires and call for greater transparency from these companies. thank you. >> next speaker, please. >> i just want to say highly likely a lot of people who work in the it sector would be introverted rather than extroverted. asking them to go out and leave buildings takes more energy and more focus. it takes focus away from the

work they would probably prefer staying near work where they can focus rather than going out to look for something, yeah, i mean what they say the schools, society is built for extroverts. i don't think you you should force people out what they naturally prefer and do better. >> next speaker, please. >> good afternoon, supervisors, i am the planning and policy manager and one of the co-chairs of market street along with sam dennison. i appreciate the opportunity to speak today about this issue. i particularly want to focus on the issue of gentrification in the tenderloin. woe can't derm cause -- we can't determine causality.

i have all of th -- i have also- i don't know if this works. is it possible to use the projector? this is a little data from the said data source, which is the rent board, as we saw earlier. it is hard to see here. in the topgraph the orange line is the notices of eviction in the tenderloin. in 2015 it had the same number of evictions as the mission with a larger population. the data is old but you can see below the climbing rate of notices of evictions from 2011 to 2015. this is validated from what we have heard from people in the community. sam spoke about the adrian hotel a similar process has unfolded in the bristol hotel and the

whar field. the landlord let the buildings degrade. now they have updated. now the bristol will be affordable housing. whar field is a place for tourists. thank you for your time. >> next speaker, please. >> good afternoon. i have been a san francisco resident since 2010. i moved in before the twitter tax break. i cam to see the benefits that it gave to the community. all i hear are vague answers. i wish there was more specific

things. that tells me if you want come up with very specific benefits the community has, then it hasn't done anything for you. i got involved in the community four years ago. between 2011 to four years ago, there is more problem. there are more pressures for the neighborhood. let's think about the long-term benefits that could come to the communities like the neighborhood in the tenderloin. thank you. >> good afternoon, supervisors. i am curtis bradford, co-chair of tenderloin people's conference. i lived in the tenderloin for 10 years. i was aren't when we created market street for the masses and the cac started meeting.

i remember the disaster. i was disappointed to see how the city and the tech companies treated the community. and how they were so respected. they lost the support of the community. the community saw how use less and pointless it was to participate with the cac. that is unfortunate. they had an opportunity to build relationship. they stone walled this is what we felt like. things have gotten worse in a lot of ways. we have seen a big increase in the number of people on the street. there is a lot of evidence of displacement and gentrification. i saw the food numbers. food sales have gone up on

market street. if you can afford to shop in the market i am sure they have done a great business. the people moving in don't look like the people who have been living here. the incomes is different. we didn't get any benefit from it. i don't know anyone who got a job as a result of the twitter tax break. i hope we don't do that again. next time there needs to be benefits before we even offer it. >> next speaker, please. >> thank you. heather from care for touch institute. one of the things. this is not an question but an

observation. listening to the director of larkin street youth and positive allowance speak last week. the thing i hear over and over from the non-profits we partner with and our own non-profit. what is one of the components right now is the non-profits are not making livable wages themselves. with the bigger companies maybe there is a way to bring that up. nonprofits have to be financially structured. we are all here to pay people within the organizations a livable wage is very important. you know, it is wonderful that the meetings that i have been able to get with some much these companies have been interesting. the number one thing i notice is they want to send their staff to

organizations to help out with volunteer hours. with an organization such as ours working at mental health through the massage therapy, we can't accept volunteers because our craft is very specialized. you have to be certified and have insurance. my main thing is an observation, just kind of interested in pointing that out so when you are talking with organizations you can maybe have that on your mind. thank you. >> next speaker, please. >> i am working in the tenderloin for 14 years. i was around during the time when the twitter tax break was being discussed. listening to the presentations

today, i am noticing that it really shouldn't be a surprise that we had the outcome that we had, that some had described and that we had the lack of outcomes for people living in the tenderloin. once it became clear it was a done deal this tax break was going to happen, the community was working hard to set up the tax benefits. because of the politics at the time that wasn't able to happen. it wasn't a mistake that the lack of outcomes that actually benefit people living in the tenderloin and that could have been a better community process were there. it was engineered to be so we weren't going to be able to see and have teeth to some of the things we wanted to do.

that is another point of learning. i remember working at the nonprofit i worked at. one day twitter invited us over and i think to teach us to tweet. the non-profits came to their office and they went around the room and all of the newly hired people at twitter. every single person went around in the 20s lived in the city for three months or so and came from new jersey and boston and elsewhere. i remember looking around the room and saying if these people are in the tenderloin, they are kidding themselves. >> thank you. anyone else from the public who would like to testify on this item? seeing none, public comment is closed.

soon pesupervisor haney. >> i want to thank all of the departments who came out, and also everybody from the community. i think, you know, i think it is pretty clear what went wrong here and unfortunately it is something that often happens even when there isn't a tax break like this in place. there are a lot of promises about how a particular development or a particular company is going to benefit everybody and then a couple years go by and we look back and the actual consequences are quite to the contrary. i think for us what we have learned from this is that, one, you can't just assume things will be worked out without having them clear, concrete and enforceable.

there was a lot of data that we should have got from the companies we were not demanding as part of this. there wasn't ongoing follow-up as this process went on. the scale of expectations when you have this sort of thing happen needs to be much higher in terms what the companies can contribute, and if we involve the community, which we always should. they should have the real support and power from the city to make these things a reality. the fact so many great ideas were put forward and ignored is one of the greatest shames and disappointments of this whole thing. i know that oewd that we are tasked to sort through the next steps. i am committed to working with all of you and i am still possessing what we learned today and it sounds like there is more

information we will get. supervisor mar and i are thinking about corporate responsibility that is more enforceable and don't just rely on hope and prayers. if we continue to do it this we are going to get what we guilty which is a lot of feel good stuff and a lot of impacteds on the community that are not positive. thank you all for being here and thank you for holding this hearing here, supervisor mar. >> thank you supervisor haney for calling the hearing and thanks for your presentations and the community advocates. i think this hearing highlighted how this policy was a poor policy that was poorly implemented by the city.

it resulted in a hand out of $70 million to a small number of corporations that resulted in very little benefits to the community in the immediate neighborhood. not only was there a lack of any meaningful community benefits provided to the central city neighborhoods, this policy really played a key role in the broader economic and social changes that played out in the neighborhoods and in our entire city over the past decade during this tech driven development boom. this was helpful and starting to reflect on what played out specifically in the central market area with the twitter tax break and it is part of a

broader process happening in our city right now and re-setting our policies how we as a city engage with large corporations here, particularly in the tech sector and what our expectations are around that. i do want to say that there is also very what i feel some constructive discussions directly with the tech companies that i have been engaged in and others here as well. i know this is not the intent here despite maybe the tone at times. the intent is not to demonies the tech sector or blame them for problems. it is an important moment in 2019 to reflect on what is played out during the tech driven development boom, how that was driven by policy decisions at the board and city hall, how it is important to

reset policies and reset expectations and our relationship with large businesses in the tech sector. i guess we can move to close this. before i do that i want to excuse supervisor peskin and supervisor brown who had to leave for other meetings. is that good? then i guess can we file this hearing without objection? great. mr. clerk, any further business? >> clerk: no further business. >> thank you. the meeting is adjourned.

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[gavel]. >> chair fewer: the meeting will come to order. this is the june 6, 2019 special meeting of the budget and finance committee. i am sandra lee fewer, chair of the budget and finance committee. i am joined by supervisors

catherine stefani, raphael mandelman, hillary ronen, and norman yee. madam clerk, do you have any announcements? >> clerk: yes. [agenda item read]. >> chair fewer: thank you. madam clerk, please read item number 1. [agenda item read].

>> chair fewer: thank you very much. president yee. that's okay. let's hear the b.l.a. report right now. thank you. >> good afternoon, chair fewer, members of the committee. dan goncher from the budget and legislative analyst's office. -- 250,000 to the san francisco municipal transportation agency for projects in district 7. the proposed ordinance repropos reproposed $700,000.

we recommend approval of the proposed ordinance. >> chair fewer: thank you very much. any comments? questions? seeing none, yeah -- okay. sorry. i just that you hought i'd hea the sponsor. let's open this up for public comment. anyone want to offer public comment? okay. seeing none, that's closed. i move to make a positive -- oh, president yee, would you like to comment on this item since all the work you put in around your participatory budgeting process? educate us on this. >> president yee: unfortunately, i didn't bring my notes on this, but okay. participatory budgeting. i wanted to make sure that we get the money out and

allocated. took us a little longer this year in terms of getting our community process together, but this is our 6th year of doing this program. and in the past, we've allocated through add-backs to fund this particular program in which we have different categories of funding. one of them being the pedestrian safety measures. generally, we put about $250,000 in that, and then, there's usually another 200 -- depending on the years, $200,000 to $300,000 for quality of life projects. generally, they're about $25,000 apiece. it goes from getting people ready for disaster preparedness to fixing up a school yard.

actually in this case, we did something new this year, and actually, i was pleasantly surprised that people were interested. i talked about it at the board meeting before about activating play space, and whether it's on a sidewalk or some vacant lot. we actually are funding two projects in the district to do that, and this should be kind of fun to see what happens. and in addition, we had the funding from t.a., and -- that we've had for a while, and we have so many pedestrian safety projects proposals that we made the decision to allocate almost all of it this year so that our grant total for projects -- i think we're going to have about 25 projects total. and the allocation's really

nearly $1 million. so it should be a good thing. we had -- once again, we had over 2,000 people vote on these -- these items in which they probably did about -- when they actually voted for each item, they probably tallied around 18,000 to 20,000 tallies. it's a goodyear. again, maybe people don't understand how hard it is to get 18,000 people to vote with no infrastructure. erica and others did great outreach. others have tried us before. i think the most that any district has gotten in terms of people voting is 400. so when you compare 400 approximate 2,000, that's a lot -- 400 with 2,000, that's a lot of work.

so i just want to get the work out and get support. >> chair fewer: yeah. that's great. it's hard to get one person to vote. okay. i'd like to make a motion to recommend this to the full board with a positive recommendation. can i have a second? >> president yee: second. >> chair fewer: okay. president yee. madam clerk, will you read items 2 and 3. >> clerk: item 2, resolution determining and declaring that the public interest and necessity demand the construction, being by significance, improvement -- acquisition, improvement, renovation and seismic retrofitting of the emergency

firefighting water system, firefighting facilities and infrastructure, police facilities and infrastructure, faciliti facilities for the department of emergency management's 911 call center, and other disaster response facilities and infrastructure for earthquake and public safety and related costs necessary for convenient for the foregoing purposes. [agenda item read]. >> chair fewer: thank you. could i have the report please. >> good afternoon. dan ganchar from the budget analyst's office.

providing for the levee and collection of taxes to pay the bond principal and interest, and waiving time limits under section 2.3434. [inaudible] >> -- of the emergency firefighting water system, firefighting facilities and infrastructure, police facilities and infrastructure, police facilities for the department of emergency management's 911 call center and other disaster response facilities. in 2010, voters approved proposition b. which authorized

$412 million to finance the construction, acquisition, improvement and retrofitting of police and fire facilities and replacement of the emergency firefighting water system. in june 2014, san francisco voters approved proposition a, which authorized the issuance of an additional $400 million of eser bonds as well as new eser bond projects. as the 2010 and 2014 eser bonds have been appropriated, and you can see the breakdowns on table 6 of our report, the bond would be sold in six issuances between 2010 and 2028. total debt service payments are estimated to be $1.080 billion,

including $628 million in principal with annual debt repayments of $353,000. the proposed issuances are consistent with the city's policies to keep the property tax rate for the city's general objections bonds we -- general obligations bonds below the 2005-2006 rate. on table 2, you can see we show the proposed used for the eser bonds. approval of the proposed resolution 19-0500 requires two thirds or more of the supervisors' approval and approval by the mayor. in addition, this $628 million

bond would require approval by san francisco voters, and our recommendation is this is a policy decision for the board of supervisors. >> chair fewer: thank you very much. i believe we have naomi kelly here as city administrator and also charles figueris from public works. >> with good afternoon, supervisors, naomi kelly, city administrator. i am pleased here talk to talk about eser 2020. eser is part of the g.o. bond program and is used to address the city's critical public safety infrastructure. there are fire and police stations, there's the emergency firefighters water system, and the 911 call center which are components of the eser 2020, and all of these are critical in how do we respond to a major

earthquake. this is reviewed and laid out in our bond, which was passed april 30. i want to acknowledge supervisor stefani for her support on our public safety agencies and of the eser program generally. we are asking you to recommend eser 2020 bond of $628.5 million for the upcoming march 2020 ballot to improve and upgrade critical infrastructure and first responder facilities are needed to protect the city. $275 million will go to seismically upgrading selected fire houses and replacing the firefighter academy and training facility. $120.8 million for the continuation of seismically

upgraded district police stations and police support facilities, $70 million for making seismic improvements to disaster response facilities, and $9 million for the renovation of the existing 911 call center. this will be the third installment of the eser bond program, which the other two bond programs being overwhelmingly approved by the voters in 2010 and 2014. if we are to have response facilities, we have to fix them now as part of this program. due to careful planning, the property tax rate will not increase as a result of eser 2020 because the city only issues new bonds once previous bonds have been paid down. in light of recent natural disasters up north and living

in earthquake country, it is imperative that we develop long-term plans in order to ensure that we are protecting infrastructure and keeping san francisco and his residents, workers, and visitors safe. i would like to roy charles guerra now up to talk about eser 2020. we look forward to answering any questions that you may have. >> chair fewer: thank you very much. >> good afternoon, supervisors. my name is charles yaris, and i am the current eser bond manager beginning in 2020 and the current time. the five components are as illustrated here. three of the components align with how we have addressed first responders needs in previous bonds, which is to say the participation of emergency, police, fire, and the participating water system. two new components here are the disaster response facility and the 911 call center.

we all know that we live in earthquake country, rather, and that the big one is just around the corner, but there are smaller earthquakes as well that we need to anticipate and be prepared to in a sense survive. the two previous bonds have set about to strengthen our infrastructure and facilities for first responders so that they're not negatively affected by an earthquake such that they would not be able to deploy effectively their personnel and their equipment. we accomplished quite a bit since we launched our eser bond program in 2010. the public safety building in mission bay which houses police headquarters, relocated district station as well as district four to serve the mission bay and beyond. new medical examiner facility that was inaugurated late last

year. we have inaugurated two others, station on marina and greenwich in cow hollow. we have strengthened the historic water system, and we're now seeking to set about expanding in a sense, the reach, the effect, the positive effect of this system. our project locations have spanned throughout the city. we have sought to address all of those facilities and infrastructure that were most in need of remediation or replacement, so in that way, we ensure that there's parity in the city in order for first responders to deploy effectively for those who call for service. the emergency firefighting water system is a very unique system. i'm sure you're familiar with

it. it historically was called the awss, the auxiliary water service system. it was originally installed in 1913, but we needed to bring it to a system of modern functionality, which we started to do in 2010 and we will continue in the wake of this next bond. there are some projects underway currently, the motorcycle police crime lab is beginning construction this summer and will be completed in two years time. fireboat station 35 at pier 22 1/2 is expected to finish construction this summer and be

inaugurated next year. so our scope of work overview for eser 2020 is among these various components. again, i think it was previously described, but our intent again is to ensure that we create reliable facilities, resilient facilities that can best serve the needs of our fellow residents in the city when they need that first responder attention and action. there is great need among all these facilities, and so how we set about seeking to prioritize them is in its simplest consideration founded on what is the state of condition and what is the importance relative to its tactical necessity, its blending of great effectiveness and deployment in first responders. i should say we've had great collaboration with all of the

departments with which we've worked since 2010 in getting to the right projects and setting about realizing those. similarly, on the efws, very complex engineering enterprise managed directly by the public utilities commission staff. it is intended to, as i said earlier, bring around our historic system to a state of very reliable readiness and as well to expand it in locations where it has historically not been evident or robustly present. well, you all know the capital plan so i won't belabor that. suffice it to say that the next opportunity to begin to turn the corner on our infrastructure facility needs for first responders, that next phase is slated for 2027. our city is growing, and with more growth, more residents,

more sort of lucky residents of this city, we will have continued need for first responder service and the departments that support that reliability of service. this is about safeguarding our city, scity that we all know ad love, and i'm now available for any questions that you might have. thank you. >> chair fewer: colleagues, any questions? comments? seeing none, i would like to personally thank harlan kelly for working so closely with my office to ensure our participation and our voice in the 2020 eser bond, and so thank you so much, mr. kelly. we don't have any questions or comments, then i'd like to take these items -- vote on these two items separately -- >> clerk: madam -- >> chair fewer: oh, public comment.

mr. wright, would anyone like to offer public comment on items number 3 and 4, and this is about the public safety eser bond? >> clerk: madam chair, it's items 2 and 3. >> well, you're confusing me. what do you want me to speak on? >> chair fewer: yes, sir. >> my name is brad edwards, district 11. chair fewer, president yee, others, one somewhat tangential part to this is the offices of the treasurer and tax collector has to administer municipal debt, effectuate the servicing of the debt. wh when we have, say, a lot of these, and we have a lot of

these from the sugary drinks tax, the continuation of the payroll tax, i just want to ensure that we also think about them having adequate resources to -- to dispense all the duties that we have charged them with. and i hope that as we do all of these, we remember that there is that aspect, as well. thank you. >> chair fewer: thank you very much, sir. any other public speakers? mr. wright. >> yeah, i object -- you got my time here, right? i object to this part where you say property tax increases, especially the part to residential tenants. the tenants already having a hard time enough to survive here in the city as it is. and about security and the treatment of the landlords, you're further giving them opportunity to make it harder

for people to survive in the city. so i object to that, but everything else seems all right to me. and i want to speak up where you've got the police department involved. i want to say i object to how the police chief has been treated by the union. he's been asked to resign and he's got good control over his staff. a good example was when that female was driving that car, and the whole police station at the tenderloin rushed out with the history of the police officers. that could have been an easy excuse for each and every police officer to unload their firearm and murder that female, and not one cop shot not one god damn bullet. where if that was the past police chiefs whose skin color was not black, that lady would have gotten murdered in the same manner that mario woods got murdered, the way that

hispanics g hispanics got murdered in the woods, and all those other people got killed. you didn't do anything about the god damn racist text messages that was going on under the other police chief, and you're going to try to mess with him on the first controversy that's taking place in this administration. that cops didn't shot that woman because they've got a police chief that won't go for it. you tell the union president to resign, and tell him to pay his union dues, mr. smart ass. >> chair fewer: thank you, mr. wright. >> i was wondering if i could talk to you on the budget and infrastructure a little broader in general. pg&e's institutional investors

presumably have received tax breaks in regards to utility maintenance. the power grid may be near the end of this utility cycle. in my opinion any price above minimal cost might be considered as capital inflation or it may be a house full of smoke and mirrors. the company is presently on the hook for an estimated $11 billion to $30 billion. consumers and taxpayers would not save any of the energy or any money on the deal. they would pay higher taxes, they would pay higher rates, the first on the purchase and

the latter on consumption. i certainly hope my facts are accurate, but you should determine the matter for yourselves. i would be curious to know the strike price if i am correct. at previous board boxes fell into the direction to install a sewer site on the bridge, and they stuck to their comment, rather than to appear politically decisive. >> chair fewer: thank you. any other members of the public like to speak on this? seeing none, public comment is

now closed. so colleagues, i'd like to take this in two parts. one to make a motion to pass this to the full board with a positive recommendation. can i have a second? >> clerk: as a committee report? >> chair fewer: as a committee report, thank you very much. and we can take seconded by supervisor stefani. we can take that without objection. thank you very much. on item number 3, i'd like to vote on simple amendment. i gave a copy to each of you, page 3, lines 8 and 9, very simply, it is a little language difference. so can we first vote on those amendments? second by president yee, without objection. and then, continue item number 3 until the meeting next week -- as amended. second by supervisor rapl