lower right. finally, we see the graph that really highlights the low pricing of risk. >> i think during the private equity presentation you were asked about the returns. this shows you. they were getting 20% net and above at the time. >> something that isn't in here but supports that we are working on a white paper to track the performance of private equity and credit. our evidence suggests in the years leading up to the credit it does a good job of familiaring because of downside protection our colleagues mentioned. where are the opportunities? slide 8. >> a question. i am surprised by the drop in

the interest coverage ratio. it is down around 2 versus what it was years before. meanwhile what we saw the private markets presentation on private equity, we looked at the volt u volume of buyouts. is that driven by the fact people making loans has changed and is no longer banks with fidc regulations with those that had no regulations is that driving all of this covenant lack of restrictions? >> so the direct helping space is a comment product. i am going to switch. direct lending is a comment product. jelly to the private equity

peanut butter. the more dry powder you have. it is the dry powder on the side line. direct lending caters to that. with the rise in i think the third slide, slide four of the deck, shows the competition for those lending opportunities. >> in all of these entities making these loans previously for the big banks that had regulations. thank you. >> skipping because there is a silver lining in all of this. we are over to the opportunities presented or will be presenting themselves as a result of these excesses. we will transition from excess side to the opportunity side. look at slide 8. this is buyout multiples.

i believe our colleagues noted they have been at 10 times for a long period of time. as you can see leverage is a key component there. if it ever rises and if the ebidta adjustments come home, there will be opportunities for the credit funds to play an important role in the portfolio. slide 9. we look at liquidity. opportunity and distressed funds make money when they provide liquidity when there isn't any. currently we see very little evidence of price support in the markets. upper left hand dealer inventories. it shows that dealers are less able to make markets to provide liquidity to asset owners and

that provides opportunities. top right. you see the growth inflows of mutule funds. they are ever increasing. we anticipate there to be in shakeout as well. lower left-hand corner is a widely used indicator of liquidity in the markets, that is probing a new bottom for the past year or so. low right hand column shows our distressed benchmark and our credit opportunities benchmarks and how they performed relative to periods of high lick identity. that is where -- liquidity where the orange be line spikes. on on page 10. talk about fundamental weakness

and opportunity. upper left handgraph is from the bureau of economic affairs. the orange line is nonresidential fixed investment. nonreal estate. as you can see, profitability is flat lining, and yet investment continues. this suggests that the corporate sector is investing in negative projects and the green line shows burning of the cash. that is the different between profit annette fixed investment. that is financed by lentors. le- lenders. when the line kicks below the zero, it means lenders are

increasing lending and loosening standards. it takes above zero to tighten the standards. there appears to be a trend of banks tightening credit standards making liquidity less availability. on the right-hand side you can see it is to be rising. we will see what happens. if it does rise that will create more stress. right now the stress is yet to really manifest itself. that is the right handgraph. we expect to see more investing. to slide 11 which really addresses the specialty finance market, and this is the hardest to present because the managers frequently target areas of the market that we would normally

never think to target. i don't know if anybody here owns a recreational vehicle, but in the top -- do you? >> i wanted everyone to laugh. >> i appreciate the humor. upper left handgraph shows rise in rv shipment. look at unemployment in elkhart indiana it is a leading indicator for recession. historical rv shipments. do we need this many? you are going to say the baby boomers are moving. think about it if you have parents who are baby boomers. they probably haven't purchased an rv. have you your parents purchasedn rv? >> we see managers attacking this that aren't normally

visible to the naked eye. upper right hand we see the speaking of auto production, layoffs are starting and in germany as well. they are picking up there and starting here. lower left hand column. auto loan delinquencies are rising. we look at managers focusing on auto and consumer loans in the u.s. and europe. we see consumer weakness and canvassing the world to find gps to take advantage in the down market. with that i will turn it back to anita. >> just really quickly. on page 13, recap, this is our plan in terms of program construction, a balance of

capitalization strategy in terms of risk return as we go down the line from capital preservation to return maximization it is higher return and higher risk as well. we are looking for that balance in order to reach our return target of 8 to 10% for this private credit allocation. we talked about establishing two to three or three approximately separate account managers. these would be larger corpsman gerrylatiocoreylation ships. that was a good 12 month process to evaluate, structure and negotiate and close that commitment. on top of that from beginning of

2018 to the year-to-date, we have committed to 14 different managers and many of those are in the opportunity and return maximization bucket which required a lot more in terms of labor intensity. >> pay separate account that is likely to be focused on capital preservation. those are larger fund recommendations. coming forward with the actual funds is a opportunity return strategy. >> quickly on page 15 how the program is doing. i know we will hit on more detail. as far as focusing on the opportunity and return maximization categories and managers for the program, it has paid off in the shorter term

period. the one and three year numbers have really been the outperformers for the private credit outpatient. overall the highlighted row there is the private credit portfolio performance and that beats your benchmark of 50/50 blend plus 150 basis points premium as well as our private credit benchmarks. >> lastly to reiterate we ran the models. you saw that in march. we don't have anything to really report back in terms of changes. we continue to remember $750 million annual target commitment pace. >> i was going to make a couple general comments. if you watched any of the

testimony in front of congress last week. they did comment lending was a risk concern of theirs in the marketplace. i think echoing some of the cambridge thoughts. the chairman talked about this morning how the leveraged market shifts the risks away from the banks to the private markets. we hear a lot of interesting data about what is happening from the private equity managers, and part of it is that ebidta is now a funky number with a lot of adjustments. it sounds like based on between the lines of discussion of cambridge you you guys are trying to establish more disciplined money parameters with the separate accounts you have, which is a critical element of the under writing

today. the competitive pressures coupled with the number of lenders out there has caused a buyer market in the sense that the private equity sponsors are now when they are approaching financing asking multiple parties to provide the best term shields. it is not just pricing and execution but the lack of covenants. private equity sponsors are exerting muscle in this current environment. with that said, in a 2% treasury environment everybody is chasing after yield with the idea of rising interest rate in this scenario plausible having a floating rate instrument moving up as the yield curve shifts is a critical component of the

private credit. i think the approaches is sensible. we will talk about performance. the bottom line is performance in this sector outperforming. i don't want to steal your thunder. >> i will be very brief and fly through this. exceptional performance the benchmark over every period in the one year focused on right now 55% of appreciation came from five funds. one of those represented 21% of the appreciation, which was focusing on airline leasing. also, on this page i want to note the bottom bullet. you may have an older version. it is to say of 22 investments of vintage years 2016 or older,

all are valued at costs or above. on slide five the picture we like to show again the value created because money was invested in this sector rather than the benchmarks with the same amount is $104 million. we are jumping all the way over to slide 12. we talked about moving some assets, 17 from the private equity portfolio to private credit. i want to draw your attention to this page that gives metrics on what a hypothetical would look at. the multiple would have increased slightly. i rr decreased slightly. it would have made the portfolio older from 3.9 years to 5.3

years. there would be changes in industry diversification also. that is all i have. >> two comments. page nine outperform answer of 9% over one year and 5% over five years. these are extraordinary outperform answer. the second comment i was going to make is really due to strategy tilt away from direct lending and more towards specialty finance in other areas. we are also further along in the development of this program than just the 3.4% allocation of nav would indicate. we have $920 million of unfunded commitments. between those that is 7%. we are probably a little farther

along in underwriting because capital is slow to call. now we will turn it over to the board. >> board questions? i have a couple questions. in the sense this is still kind of new. did every fund manager report to you when there is a default on any of their securities? >> if they do it is the quarterly report. >> not that day. >> right. >> the issue in this new category, i think we should get ready to report that because it goes to the issue of under writing the under writer. i have asked you that several times. you don't like them you don't re-up with them. we expect a certain loss ratio. when it is above 2%. >> i think what is more

important than the loss ratio is the recovery. both to see and david touched on how we include the guidelines with our separate accounts. that is the portfolio from the increasing losses and resulting in the recovery. >> add to that. it is something we published today. precisely on how to look at defaults and i am happy to share that with the commissioners. defaults can easily be hidden by these managers, not hidden but renegotiated and changed in the public markets default are not considered default in the private market. i have a white paper that talks about what to expect from direct lenders when the cycle turns and key identifiers of what behaviors you expect to see. how to track the portfolio

performance because the faults are harder to find. that is sharing with the world how we track these portfolios. >> when we are with the opportunity people focus on the distressed debt. secondly in terms of the benchmark, our risk compared to the benchmark risk, we get a sharp number later. the comparison is great excess return. i am trying to understand risk versus the benchmark. >> our portfolio includes distress and the benchmark did not. we would be outperforming. that is something as the program evolved we have to include on

the line is this direct component. i think the riskiest pav part we doing quite well. >> to measure how we are doing. >> i would expect to see us change the benchmark to include distress in this program. >> no action item. public comment. >> next year there is a good possibility there will be a world wide recession brought on by a worldwide credit crisis. therefore if that happens you shouldn't be involved with any high risk investments like private credit, private equity, hedge funds. investment capital in every single recession gravitates towards safety.

my recommendation is divest of every high risk investment and go towards low risk or moderate risk investments. >> okay. i am going to make a general comment about the three presentations. it is a time management issue. please assume that the board has read what you have submitted. it is great you are doing this anen on the video so members of the plan and stakeholders can see what and how we are doing. focusing your presentation on what you want us to look at in three reports in over two hours. if we can concentrate that to a more effective approach. that is my request. that concludes this item. i lost track which item we go to

next. >> committee report. governance committee report to commissioner stansberry. >> going back a couple years ago we brought in an outside consultant and had an off site. the board talked about changes. over the last couple years the committee is working to implement the changes. unless anybody has any additional questions that is it. >> no. some of these things will come up again in the next couple minutes. that concludes item 17. we are on 18 strategic plan. >> public comment on 17?

no comment. item 18. item 18 action item. presentation and approval of the 2019-2024 strategic plan. >> we presented to the board the senior staff proposal for a strategic plan looking forward for the next five years. we focused on three main goals. retirement readiness and have -- enhancing member experiences and leadership development and stakeholder engagement. in respect for the board's time i would certainly just ask if there are any questions on any specific sections or if you would prefer i could walk you through. >> as long as this is a living

document, i would move to adopt it. i would ask what periods of time would those be reported on? quarterly, semi-annually or annually? >> it would be reported on, i think the board policy says at least annually. >> i would like to see it reported every six months would be good. i would make a motion to adopt this with the six month review. >> okay. i have one major question. it is not under finding another minding -- under mining this. the first part may seem like unnecessary tweaking. for goal five b strategic

initiative. to include retirement board's development that bullet should be under item four. those are issues the board needs to develop. i bring it up because when we get to the next item about the governance, the things we adopted at the last retreat and things they lined up for us to do, they go together. maybe that that was an oversight it was not there. development is more than just communications. government and decision making go together. if we can amend that i will support the motion. >> i make that amendment. >> that is a friendly amendment. between this and the next item is a lot to be discussed. this is a living document. the buzzword missing from this

the word leadership is there, much like the motion about recognizing how well staff has done working for the system for the benefit of the beneficiaries and the city, it is extraordinary. we are not simply dependent on the staff that work here, they are the engine that get it done. why? it is more than the fact they get paid and get a pension. the culture they want be to work here, this is a productive and nice play to work. that is an environmental issue we hold the director responsible for. that is one of the objectives. it is more than just developing people. it is developing people in order to do what? it is beyond the issue of the mission statement.

i am sorry i don't have words for it. this is a living document maybe in the next couple months we will come back and capture that. that would be the context to understand the different recommendations about who we hireds, plans, restructuring, provide better services to the members. >> good okay. motion made and seconded. i will call for public comment. >> i agree with you. the culture is very, very good. it would be better if our pension funds bought a san francisco office building for them to work in. not only would the culture improve, it would be a great investment. if you would have bought one 10 years ago it would have been

valued in value and you would have been collecting rent. you should give that a lot of consideration. spend $500 million on a san francisco office building and find out that is a much better investment than a hedge fund. all of your work in the office building if you can't work in an edge fund. thank you. >> with that i call the question. those in favor of the motion made and seconded say aye. opposed. >> okay we are on item 19. this is discussion only with several action items behind it. i am trying to figure out how to manage time. this is a day and-a-half retreat boiled down in this document. i think we should spend another day and a half talking about this. >> this was a document that

myself and staff and our consultant put together to try all of the recommended changes that came out of the group. just being presented to the board so the board can see what they voted on and what has been done. it is intended to be as submitted for your information only. >> i would say as submitted there is also the recommendations for all of the changes, some of them are just name changes, all of the documents in terms of reference. others are date changes bringing it up-to-date. again, since we are reviewing these every six months, we can call them to review them. we will review them in

committee, i would say we could take them all at one time now and accept them as submitted. >> the policies and terms of references are being reviewed on five year cycle unless something comes up. the strategic plan report would be every six months. some of them are very technical. the service cord natetor. we haven't reviewed it. it is very technical. they go as a packet. certainly, i am assuming we could consider them altogether. the terms of reference, board communication policy, finance committee are certainly things that as president driscoll indicated were talked about

plunge the board members for more than one and a half days retreat but have been talked about since. this is 14 pages o of matrix. i am letting the board members know. be prepared to figure out how we are going to do things going forward. there are things i have to do. educational development issues. >> i will be bothering you with 800-474-676-- with the phone ca. thanks for doing this. with that we can continue on with the terms of reference

changes. >> public comment. i have to call for public comment. no public comment. >> i make a motion to adopt all of these as submitted. >> that would be item 21, 22, 23 and 24. >> correct. >> as submitted. >> the whole package. >> i will make a motion. >> i will second it. >> just one comment. it is directed toward the finance committee. or operations committee. at the governance committee we were trying to derm what rules needed to be changed on behalf of the operations committee. it doesn't make sense for us to make changes.

look at what your powers are and what rules need changed in referring back. >> there are certain things in the preceding document that were not a discussion item. the word deliverables comes up. projects are taken one, two, three, five years. are things operating? do we have a problem? more resources, more time? >> that is the improvement change we need to do. public comment on the motion to adopt the four changes. those in favor say aye. opposed. >> okay. >> we already did 25.

cio report. very good, board members, i will do this. >> is there anything we must do today? >> no. >> we have to do the report out. >> i will do part of it. it will take a minute and-a-half. >> the report out. >> we will just do items four through seven. i can do this in a minute and-a-half. >> i don't want to drag this on any longer. i don't understand why we have to read it out when it is documented in the written report. we can take that offline. >> nor do i. >> that solves that legal issue. thank you. >> proceed. one of our best ideas in the energy sector $75 million the board approved in may. we did get all $75 million.

e ventures strategy for $35 million, we got $30 million. pag special situations investment, the board approved last month for $50 million. we did get all $50 million. equity endeavor is one of the software specialists. we requested $75 million. we were cut back to $60 million. with that we can complete the rest of the report next month. >> thank you. that takes us to item 26. executive director's report. >> we have provided you with the first iteration of the operations dashboards that would be included under the funds and recommendations in my report. i welcome any board members basically reaction to it. if there are areas you would like us to track. in addition please let me know. i would also like to say that we

are having our annual employee recognition luncheon the following friday, july 19th, starting at 11:30 a.m. it will be here. we are bringing lunch in. i welcome any board members with the time or opportunity to come. we recognize folks who have achieved milestones of service with the department. there will be good food. i would like to welcome all of you. the only other thing that has come up since i have written the report. there is introduced to the board of supervisors and supervisor safai was a co-sponsor amendment to the heart and pneumonia presumption for police and fire plans that we are having analyzed and we are required to cost.

what i will have for the august board meeting is what we will have presented to the board of supervisors and the cost impact of the plan. i have the copies of the current final draft of the ordinance if anyone is interested. otherwise it will be at the august board meeting. it is making it less restrictive, not necessarily easier to qualify but certainly full analysis is still in progress. >> one comment. a lot of that has to do with cancer clusters. i would not exclude -- i don't want to use the term exclude. i would want to include the

civilian employees who have been working in those environments, also, because the cancer cluster. >> this does not in fact do that. it is specifically for the industrial disability benefit and the presumption that the plan respects on both cancer, heart and pneumonia. this is heart and pneumonia only, not cancer. supervisors brown, safai yes, walton and haney are the ones that introduced this. we are notified of our responsibility to cost it, which we are in the process of doing. i will have more information for you in august. >> that is it.

>> let me underscore the third bullet about the annual performance evaluation. ashley will reach out to every board member to do the performance evaluations. that is a must do. tomorrow is the period to start that. the lunch that letter it might be a good time to have that ready to read out loud. it is dedicated to them and it is their lunch. just a thought. >> the next item is -- any other additional members wish to make reports or comments? >> the other report missing is the governance committee report that they determined not to do an outside third party evaluation. with ashley doning, our

governancgoffgovernance will dot evaluation of the board performance, not to be confused with the annual evaluation. >> it was in the matrix. >> motion to adjourn in order. >> so moved. >> public comment. call the question. meeting adjourned. >> thank you.

>> hi.k you. my name is carmen chiu, san francisco's elected assessor. when i meet with seniors in the community, they're thinking about the future. some want to down size or move to a new neighborhood that's closer to family, but they also

worry that making such a change will increase their property taxes. that's why i want to share with you a property tax saving program called proposition 60. so how does this work? prop 60 was passed in 1986 to allow seniors who are 55 years and older to keep their prop 13 value, even when they move into a new home. under prop 13 law, property growth is limited to 2% growth a year. but when ownership changes the law requires that we reassess the value to new market value. compared to your existing home, which was benefited from the -- which has benefited from the prop 13 growth limit on taxable value, the new limit on the replacement home would likely be higher. that's where prop 60 comes in. prop 60 recognizes that seniors on fixed income may not be able to afford higher taxes so it allows them to carryover their

existing prop 13 value to their new home which means seniors can continue to pay their prop 13 tax values as if they had never moved. remember, the prop 60 is a one time tax benefit, and the property value must be equal to or below around your replacement home. if you plan to purchase your new home before selling your existing home, please make sure that your new home is at the same price or cheaper than your existing home. this means that if your existing home is worth $1 million in market value, your new home must be $1 million or below. if you're looking to purchase and sell within a year, were you nur home must not be at a value that is worth more than 105% of your exist egging home.

which means if you sell your old home for $1 million, and you buy a home within one year, your new home should not be worth more than $1.15 million. if you sell your existing home at $1 million and buy a replacement between year one and two, it should be no more than $1.1 million. know that your ability to participate in this program expires after two years. you will not be able to receive prop 60 tax benefits if you cannot make the purchase within two years. so benefit from this tax savings program, you have to apply. just download the prop 60 form from our website and submit it to our office. for more, visit our website,

sfassessor.org, good afternoon, thank you for coming to the july 30, 2019 board of supervisors.

this will be our last meeting, the next meeting will be beginning of september. madame clark will you please call the role. [roll call] >> mr. president you have a quorum. >> thank you. please join me in the pledge of allegiance. i pledge allegiance to the flag of the united states of america, and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all.

>> on behalf of the board, i would like to acknowledge the staff of sf gov tv. they record each of our meetings and make the transcripts available, to the public, online. madame clerk, are there any communications? . >> clerk: we received a communication from the office of supervisor wilton, who indicated he would be late in attending the meeting as he is attending a funeral this morning. >> thank you very much. colleagues, before we move forward with our meeting today. i want to share a message of unity and strength with the city of gilroy. we are outraged, by yet another

horrific mass shooting, to the community of gilroy, we stand by you. to the victims, and their families, we are praying for you and we pledge to fight until action is taken on gun reform. lost to us today are 25-year-old trevor irving, 13-year-old, kayla salazar, and 6-year-old stephen romero. please join me in a moment of silence, to honor the young wives stolen for this unnecessary act of violence. -- lives stolen for this unnecessary act of violence. thank you.

colleagues, today we are approving the minutes from the june 20, 2019 special -- special board meeting. the june 25, 2019 regular board meeting and do 19, 2019 -- -- june 19, 2019 and june 20 -- [ crying ] 2019. board and finance committee meetings. which constituted a quorum of the board of supervisors. are there any changes to these

meeting minutes? seeing none. can i have a motion to approve as presented made by supervisor fewer and seconded by supervisor mandleman. these will be approved after public comments. madame clerk, can you please read the consent agenda one through 20. . >> clerk: mr. president, given that supervisor walton is not present in the chamber, and eddie funeral today would you like a motion to excuse him from the votes until he arrives? >> a motion made by supervisor safai, seconded by supervisor stefani. we would take this motion to excuse mr. wong from the votes until he gets here. okay. . >> clerk: 1-20 are on consent. these items are considered to be routine. if a member objects an item can be removed and considered separately.

>> okay. colleagues? today, i'm sorry, would anyone like to sever any items from the consent agenda? seeing no names. madame clerk, please call to roll. [roll call] . >> supervisor yee: colleagues, these ordinances are passed on

the resolutions adopted. madame clerk, please call items 21-30 together area. >> items 21-30 or 10 ordinances on final reading that pertain to the budget for the city and county of san francisco for fiscal years 2019-2020 and 2020-2021. item 21, appropriates receipts and expenditures as of june 21 of 2019. item 23 is ordinance adopting the neighborhood beautification and graffiti clean-up fund tax designation ceiling for tax year 2019. item number 24, 190624, ordinance authorizing the execution and delivery of certificates of participation, in one or more series from time to time, on a tax-exempt or taxable basis, evidencing and representing an aggregate principal amount of not to exceed $160,000,000 to refinance certain certificates of participation that financed various capital improvement projects and finance certain additional capital improvements; approving the form of a third item number 25, 190626,

ordinance appropriating $160,000,000 of one or more series of refunding certificates of participation proceeds, de-appropriating series 2009a and 2009b certificates of participation of prior reserve funds of $16,500,000 and re-appropriating refunding certificates of participation series 2019-r1 of $176,500,000 and placing these funds on controller's reserve pending the sale of the certificates of participation for fy2019-2020. item number 26, 190627, ordinance amending the fire code to increase fees for certain fire department services; and affirming the planning department's determination under the california environmental quality act. item number 27, 190628, ordinance amending the park code to permit the recreation and park department general manager to set guest docking fees at the marina small craft harbor by flexible pricing based on certain factors; and affirming the planning department's determination under the california environmental quality act. item number 28, 190629, ordinance amending the park code to permit the recreation and park department general manager to set non-resident adult admission fees for the japanese tea garden, the coit tower elevator, the conservatory of flowers, and the san francisco botanical garden by flexible pricing based on certain factors and at certain times; and affirming the planning department's determination under the california environmental quality act. item number 29, 190630, ordinance amending the park code to permit the recreation and park department general manager to impose a surcharge of $1 per non-resident adult visitor at the japanese tea garden to fund the restoration of that facility, until such time as the restoration is complete; and affirming the planning

department's determination under the california environmental quality act. item number 30, 190631, ordinance amending the administrative code to eliminate fines for overdue library books and other materials and equipment, and forgiving outstanding patron debt for overdue fines. >> supervisor yee: before we take a vote, once again, i would like to say something about our budget on item number 21, i know we have said this over and over again. you know, it was such a fine process i have to keep on thinking the person behind all of this. i want to thank chair fewer, head of the budget committee. once again, i cannot thank you enough for getting us out of these chambers before midnight.

it was, again, such a great process. so transparent. the staff, chelsea, was magnificent. many of the other staff out there contributed to the budget process. chair fewer, congratulations. before we take this vote. we are making history, biggest budget ever. quickest budget created ever. we are solving, beginning to solve as many problems as possible -- as much as ever. forever i hope you will be the budget committee chair. [laughter] i just want to thank you chair fewer. >> thank you for your kind words i want to thank my co- members, actually, of my committee for all of those long meetings. thank you so much for the support. especially to you for affording

me this opportunity to serve the board and the residence of san francisco in this capacity. . >> supervisor yee: i don't want to ignore that there are others in the city government, controller, from the budget office, thank you very much. colleagues, can we take these items in call? without objection objection these ordinances are passed unanimously. madame clerk, please call the next item. . item number 31, 190495, ordinance calling and providing for a special election to be held in the city and county of san francisco on tuesday, november 5, 2019, for the purpose of submitting to san francisco voters a proposition to incur bonded indebtedness not to exceed $600,000,000 to finance the construction, development, acquisition, improvement, rehabilitation, preservation, and repair of affordable housing improvements, and related costs necessary or convenient for the foregoing purposes; authorizing landlords

to pass-through 50% of the resulting property tax increase to residential tenants under administrative code, chapter 37; providing for the levy and collection of taxes to pay both principal and interest on such bonds; incorporating the provisions of the administrative code relating to the citizens' general obligation bond oversight committee's review of affordable housing bond expenditures; setting certain procedures and requirements for the election; adopting findings under the california environmental quality act; and finding that the proposed bonds are in conformity with the general plan, and with the eight priority policies of planning code, section 101.1(b). >> supervisor yee: thank you everybody for cosponsoring this legislation to put it on the ballot for november. i am looking forward to this passing in november. colleagues, can we take the same house speaker, nancy pelosi one call? without objection this ordinance passed unanimously. madame clerk please call the next item. . item number 32, 190709, ordinance approving health service system plans and contribution rates for calendar year 2020. >> supervisor yee: colleagues, can we take this item same house in call? without objection this ordinances passed. madame clerk, please call the next item. . item number 33, 190048, ordinance amending the planning code to 1) require building setbacks for buildings fronting on narrow streets, 2) modify front yard requirements in residential districts, 3) increase required rear yards in single-family zoning districts

by five percent, 4) amend the rear yard requirements for through lots and corner lots in certain districts to permit second buildings where specified conditions are met, 5) allow building height increases to existing stories in existing nonconforming buildings in order to accommodate residential uses, and 6) provide that specified alterations to nonconforming structures for the purpose of creating habitable space or an accessory dwelling unit are not subject to section 311 review requirements if the specified requirements are met; affirming the planning department's determination under the california environmental quality act; and making findings of consistency with the general plan and the priority policies of planning code, section 101.1, and adopting findings of public necessity, convenience, and general welfare under planning code, section 302. >> supervisor yee: i'm going to call on the author. . >> supervisor mandleman: thank you. thank you for your engagement with my office over the weekend. i think several of us will be offering amendments to this legislation today. i have a couple. they are shown on this document that has been handed out by the clerk. my changes relate to two things. one is grandfathering in applications that were submitted prior to january 15, 2019, when we submitted this legislation. and then the other is to exempt out the bernal heights special use district, at the request of the district nine office.

requesting amendments from section 261.1 controls, which apply to additional height limits for narrow streets and alleys. those are the two things that i wanted to amend. i know there are others. . >> supervisor yee: is our second for that? seconded by supervisor ronen. hopefully we will all accept these amendments. supervisor peskin? . >> supervisor peskin: i would like to reinsert, and this was actually in the legislation and then was taken out of the legislation which means it will not have to be re- referred or require any more public comment. which is to add residential mix use districts of which i know

there are a lot. the city commonly known as district three, as well as other districts. i think it is a good change to section 26, 261.1, applying standards to second-story setbacks along alleyways and narrow streets. i would ask that page 16, lines 4-16 section b, subsection 2, subsection b, that any frontage reinsert rm and make that same corresponding change. also on page 16, subsection c, the controls in this section shall apply, et cetera. that would be my motion which i have discussed with the maker