[drumming] [cymbals]

[cymbal]

>> ladies and gentlemen, please welcome sheriff matt freeman. >> that's a great way to kick off a party and celebration. ladies and gentlemen, let's hear it for the san francisco police department lion dance team. [applause] my name is matthew freeman and i'm the undersheriff for the city and county of san francisco sheriff's office. and it is my honor and my pleasure to serve as your master of ceremonies for today's event for this auspicious occasion, and i cannot tell you enough how happy the men and women that wear this uniform are of the person we are going to swear in

as sheriff today. [applause] and welcome to san francisco's crown jewel, this beautiful san francisco city hall. ladies and gentlemen, at this time, if i can please ask you to stand for the presentation of the colors and pledge of allegiance. [pledge of allegiance]

please join me in reciting 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. please remain standing as we invite you to the podium to sing

our nation's national anthem. >> oh, say, can you see, by the dawn's early light what so proudly we hailed at the twilight's last gleaming? whose broad stripes and bright stars through the perilous fight, oer the ramparts we watched were so gallantly streaming, and the rocket's red glare, the bombs bursting in

air, gave proof through the night that our flag was still there. oh, say, does that star. spanninglyspangled banner yet wr the land of the free and the home of the brave. [applause]

[military salute] >> ladies and gentlemen, how about a round of applause for

the singer and the san francisco police department color guard. (applause.) [applause] thank you. please be seated. i would like to take this opportunity to recognize some of our dear guests, some of our elected and important people here in the city and county of san francisco. and if you could hold your applause until i complete each group, i would appreciate it. our city and county of san francisco elected board of supervisor members, president of the board norman yee, district 7, dean preston, raphael mandelman, district 8, ashad, district 11. ladies and gentlemen, our county board of supervisors.

[applause] our district attorney, chesa boudin, public defender, our recorder, carmen chew and her treasurer jose cisneros. [applause] we are honored and pleased to have members from our state government present today, attorney general of the state of california, javier, state board of equalization, state of california, cohen, treasurer, state of california, assemblymember, state of california, our state of california, ladies and gentlemen. [applause] we work with some of the public,

finest public safety partners in any jurisdiction in the entire country. our public safety partners, chief of police, san francisco police department william scott. san francisco fire department, fire chief, jeanine nicholson. chief of the probation department, city and county of san francisco, karen fletcher. we are truly honored here today to have someone that we work very closely with and are fortunate to have that opportunity, sheriff of the san mateo county. [applause] and his undersheriff. [applause] city and county of san francisco has some of the finest public servants in any jurisdiction in california if not the entire

country. our city administrator, naomi kelly. san francisco public utilities commission general manager, harlan kelly. and i really enjoy working with our department of public works director, mohammed nuru. events such as these can't go off as well as they do without the hard work of our city and county of san francisco chief of protocol, charlotte schultz. and no one has been around city hall for any length of time knows that we cannot go without thanking director of mayor's special events, martha cohen. [applause] we would like to thank all the city and county of san francisco commissioners for all the work

that you do. we would like to thank all the city and county of san francisco department heads, certainly want to thank all of the current members of the san francisco sheriff's department and the many retired members that i see here in attendance today. it's wonderful to see your faces. you all look younger. i look older. you do something about that? the sworn command staff of the san francisco county sheriff's department and our entire management team, thank you all for being here. [applause] i would also like to do a special shoutout and maybe if we applaud loud enough, i'm sure they can hear it upstairs, in case you didn't know, there was another inauguration here this morning, how about a round of applause for our mayor london breed?

[applause] at this time, i would like to invite to the podium father tom hamilton of saint gabriel church for our invocation. >> public service is an invitation to a life of personal devotion and sacrifice. today we entrust the important work of leadership in our sheriff's department to paul miyamoto. we offer him our good wishes and

our sincere support today and of the days ahead. please join me, then, in the spirit of prayer and of hope. oh, god of many names, known by many signs throughout this beautiful world, we pause during this celebration to invoke your blessing upon paul, chosen for service as sheriff. please support him with the ability to confront the challenges that will inevitably come, making judgments that are in the best interest of this exceptional community of san francisco. may his service be typified by patience, courage, stability, honesty and loyalty.

in the name of all that is good and holy, we offer this prayer in humility and praise. and we all say together amen. >> thank you, father. for the last 4 years, this agency has had the pleasure to serve under outgoing sheriff vicki hennessy. sheriff hennessy would have loved to have been here today, but just last week she underwent hip surgery and unfortunately could not be in attendance

today. i'm sure that she would have liked nothing more than to be here to wish paul all the best and encouragement as he assumes office of the sheriff. she did, however, leave for paul and for all of us, a video message. >> hi, sheriff paul. vicki hennessy here, room 456, city hall, sheriff's office. coming to you through the magic of video. i regret i cannot come to the ceremony. however, i am sending you and your family my congratulations, best wishes and deep appreciation for the service you have given to the san francisco sheriff's department and the city and county. there's nothing quite like your first day on the job as sheriff.

the pomp, the ceremony, the love you feel from your supporters and the expectation. enjoy it every moment. as soon as you have taken your oath, you will hit the ground running. just remember, the sheriff's job is a marathon, not a sprint. this is a demanding job where you will feel the glare of the spotlight, whether you want to or not. as you know, the one constant will be your family. i know you will make time for them and you will be successful no matter what you do. you have the respect of the rank-and-file. you are already building relationships with the criminal justice stakeholders. you are already a community leader. and you have the benefit of more than 23 years of experience serving in this department. i know that you will bring multiple perspectives to your new position. you are the right person for the

right time to take up the sheriff's man tell. about those expectations, i expect great things from you. so, paul, congratulations. you've earned it. now, get to work. [applause] >> a little bit nervous. i might be more nervous than you. well, the big moment, the swearing-in of the 37th sheriff of the city and county of san francisco is but minutes away. i would like to take a brief moment and share with you some information about the office of the sheriff and the awesome

responsibility one assumes when holding the esteemed title of sheriff. there are 58 counties in the state of california. as required by the state constitution, each county must have a sheriff, and the sheriff shall be elected. the office of the sheriff is not simply another department of the county government. the office of the sheriff is a statutory, constitutional office, having exclusive powers and authority under state law and/or the state constitution. the county sheriff serves multiple constituencies, the county board of supervisors, when executing county laws and ordinances, the state attorney general when enforcing state laws as a peace officer and as an officer of the superior court in and for the city of san francisco and of course, the sheriff ultimately serves all

the people and communities of their county and in our case, city and county. the management and leadership of the san francisco county sheriff's office is no small task and will test the skills and abilities of the brightest and strongest of leaders. our department is authorized for 946 sworn peace officers, 130 professional support staff, and 98 sheriff cadets. the sheriff is responsible for leading and managing the workforce approaching 1200 employees, spanning four divisions, with the annual operating budget north of $150 million. this includes, in part, the operation of four distinct jail facility, judicial protection and court security at four courthouses, execution of all civil processes in the city and county, operation of three

community-based sites offering a myriad of services to those criminal justice involved, robust, criminal internal affairs and background investigation units and emergency services unit to include a type 2 law enforcement mobile field force and special response team to deal with critical incidents that occur in the jurisdiction of the sheriff. general law enforcement and public safety services for the department of public health at san francisco general hospital, ten department of public health neighborhood clinics, the department of emergency management, the san francisco main public library, and, yes, here in the crown jewel of san francisco, our beautiful city hall and much, much more all supported by training and personnel units. the daily operation of a law enforcement agency this size in a city and county as eclectic,

diverse, dynamic and, yes, challenging as ours, requires the right person for the right time. and san franciscan, a graduate of lowell high school, a husband, a father who lives in and is raising his family in our city, a 23-plus year record of service to this agency and the people of san francisco, a leader that holds himself accountable first and by example will expect the best from all who work for this agency. a person of the highest integrity, character and moral compass, paul miyamoto embodies if not exceeds all the core elements required to be the sheriff of san francisco. the deputies have assumed that i

shall posts. they are eager, and they are ready to receive your direction. paul miyamoto. [applause] >> ladies and gentlemen, it is a real pleasure at this time to invite to the stage for the oath of office, state of california attorney general xavier becerra. [applause] i would also like to invite to the stage sheriff elect, paul miyamoto. [applause] i think you can hear me. also coming to the stage is paul's other, his wife, and his

children. melanie, jordan, joseph, marissa and mia -- maya. [applause] >> please raise your right hand and place your left hand on the bible. i will ask you to repeat after me. i, state your name. >> i, paul miyamoto. >> do solemnly swear. >> do solemnly swear. >> i will support and defend the

constitution of the united states. >> that i will support and defend the constitution of the united states. >> and the constitution of the state of california. >> and the constitution of the state of california. >> against all enemies, foreign and domestic. >> against all enemies, foreign and domestic. >> that i will bear true faith and allegiance to the constitution of the united states and the constitution of the state of california. i take this obligation freely, without mental reservation or purpose of evasion. and i will well and faithfully discharge the duties upon which i am about to enter and during such time as i hold the office

of the sheriff of the city and county of san francisco of the sheriff of the city and county of san francisco. >> i present to you, sheriff miyamoto. [applause] [cheering and applause] >> i guess i'm supposed to say something right now. [laughter] hang on one second while i get my notes. oh. that's not a great start, but -- [laughter]

good afternoon, everyone. thank you, attorney general xavier becerra and to all of you who are here today in celebration of the office of sheriff. i have many people to thank for this moment. all of you here today played roles and given support for my rose through the ranks and my occasionally descent. [laughter] i begin by thanking my mom and my dodd, phil and ella. my dad is in the hospital today and couldn't make it, but my mom is here for both of them, and i just wanted to recognize her for the person that she is. [applause] growing up, my mother was a very strong advocate for both me and my brother when we were very young as we went through the school system here in the public schools of san francisco. she was actively involved in our education to the point where even after we graduated she

continued to volunteer her time and service, both with home and advocate for children and youth all the way up to the state ptsa level where she volunteered for many years and was so effective as a leader in the ptsa who worked to improve the lives of the children and the educational system that we have here in california. my father's family immigrated to san francisco around the time of the earthquake of 1906. and during that time, built a successful dry cleaning business and some of my family is here today, and i want to thank them for being here as well. world war ii happened and the federal government ordered the internment of americans of japanese ancestry, which included the miyamotos. our family lost everything here in san francisco and were forcibly relocated to heart mountain in wyoming for the first part of the war. did they give up? of course not.

in fact, my grandfather's three brothers proudly fought for the united states as part of the most decorated unit in military history, the 442nd regimental combat team. lucky for me, after the war, the miyamotos returned to san francisco and began a new. my father grew up and became an attorney, he practiced law for the state of california and actually became appellate-level judge for the workers compensation review board. i share this with you because this is my family. they are the role models who influenced me. they faced adversity and racial discrimination and yet they responded with grace, strength and grit and actually became civil servants. the miyamotos became the change they wanted to see.

they embody resilience. inspired by my family tradition of service, i chose to join the san francisco sheriff's department over 23 years ago to try to make a difference in people's lives. every day, i don this uniform and serve our city with some of the finest people i know. people like our outgoing sheriff who has been a role model and mentor to me, she is the first to actually rise through our ranks and become sheriff, and she's also the first female to serve as the sheriff of san francisco. i'm honored to have worked for and with vicki hennessy and even though she is not here, i would like to ask for a round of applause for her and her contributions. [applause] it's really wonderful, because i serve with people who put other people first, who ensure public and individual safety, both inside the criminal justice

system, in the jails, in the courts, and outside in the community. we take pride in all of our work serving san francisco. i'm honored to call all of you my colleagues and serve as the sheriff for the next four years. you all embody resilience to me. we as department members have been at the forefront of some of the toughest challenges facing the city, including an increase of the numbers who are incarcerated who suffer from behavioral health issues. not surprisingly, this has challenged our infrastructure and our staff. we share these challenges across all our city agencies and with our justice and public safety partners. we collaborate to build and nurture relationships and trust and to provide services to everyone. in response to our changing

populations, we've created psychiatric sheltered living unions which provide consistent care and structure. our behavioral health assistance team, comprised of both trained deputies and department of public health specialists, are sporting people incarcerated, collaborating for individual treatment for people housed in all of these different units. and it's making a positive difference in their lives, creating new hope for their successful reentry into our community. as the department moves forward, you can expect more of this from my staff and myself, care, compassion and collaboration. i started my career with the department back in 1996. it has shaped me in more ways that i can count. on my very first day, my training deputy sent me on a

errand which made me late for the shift, i was scheduled to relieve. the deputy on duty at the time was not very happy with me for being late, but we actually, the both of us overcame that initial stumble. we fell in love and we were marid five years later, and that's my wife leeann. [applause] i wanted to recognize her for who she is and also my children who were introduced earlier. melanie, jordan and the triplets, joseph, merissa and maya, if you guys could stand. [applause] come on, stand up. they have been my source of personal strength and love, and i wanted to thank them with all of my heart. leanne and the children have supported and inspired me every step of this journey. they bring me joy and happiness. at the department, we have a

faith in others to change for the better. as a young deputy working on the sixth floor of the hall of justice, i connected with a man who suffered from addiction. he was sober in jail, overcome his challenges, got released and then relapsed out in the community over and over, time and time again. inevitably he would end up back as an incarcerated person. most of you know that story, and hear it. we in the department actually live it and see it every day. but you know what? that individual never gave up. and i didn't give up on him either. i saw something of myself in him. someone from the same ethnic and cultural background, on a different path but for one or two choices.

eventually, his commitment to stay sober stuck. he made changes and then went back into the community and served the community. he's a mentor to many others in the community. i see him out there every day with rehabilitation services. i'm proud to say he is one of my friends in the community and to see him there every day gives me strength. he embodies my father's favorite quote which is to never give up. his mantra of resilience follows me along with my family's story of optimism and persistence in the face of internment, not just to survive but to give back to the nation that placed hardships on our family. my family has guided me. their positive attitude will make a mark on the sheriff's department over the next four years. i actually lost my first election back in 2011.

eight years later, i am the first asian-american in history to be elected to be sheriff in the state of california. [applause] so please -- [applause] i just want to end with my father's quote. i want to say to him as elis in the hospital bed -- as paul, bee

will be addressed as sheriff. ladies and gentlemen, a round of applause for our sheriff, paul miyamoto. [applause] [applause] >> this is kind of mean now that you have sat down. ladies and gentlemen, if i could please ask you to stand for the retrieval of the colors.

[military salute] how about a round of applause for the color guard? [applause] thank you very much. you may be seated. ladies and gentlemen, this brings to a close our celebration today, our swearing-in of the 37th sheriff. i hope've each and every one of you enjoyed your time with us

today. if you are so inclined and interested, the sheriff will be receiving guests and visitors in the sheriff's office on the fourth floor, 456, the corner of the building over there. we would ask at this time that members of the public remain seated until such time that the sheriff, the elected and the city department heads have had an opportunity to exit the rotunda. thank you very much for being here today. [applause] [applause] >> my background is in engineering. i am a civil engineer by training. my career has really been around government service. when the opportunity came up to serve the city of san francisco, that was just an opportunity i really needed to explore. [♪]

[♪] i think it was in junior high and really started to do well in math but i faced some really interesting challenges. many young ladies were not in math and i was the only one in some of these classes. it was tough, it was difficult to succeed when a teacher didn't have confidence in you, but i was determined and i realized that engineering really is what i was interested in. as i moved into college and took engineering, preengineering classes, once again i hit some of those same stereotypes that women are not in this field. that just challenged me more. because i was enjoying it, i was

determined to be successful. now i took that drive that i have and a couple it with public service. often we are the unsung heroes of technology in the city whether it is delivering network services internally, or for our broadband services to low income housing. >> free wi-fi for all of the residents here so that folks have access to do job searches, housing searches, or anything else that anyone else could do in our great city. >> we are putting the plant in the ground to make all of the city services available to our residents. it is difficult work, but it is also very exciting and rewarding our team is exceptional. they are very talented engineers and analysts who work to deliver the data and the services and the technology every day. >> i love working with linda because she is fun.

you can tell her anything under the sun and she will listen and give you solutions or advice. she is very generous and thoughtful and remembers all the special days that you are celebrating. >> i have seen recent employee safety and cyber security. it is always a top priority. i am always feeling proud working with her. >> what is interesting about my work and my family is my experience is not unique, but it is different. i am a single parent. so having a career that is demanding and also having a child to raise has been a challenge. i think for parents that are working and trying to balance a career that takes a lot of time, we may have some interruptions. if there is an emergency or that sort of thing then you have to be able to still take care of

your family and then also do your service to your job. that is probably my take away and a lot of lessons learned. a lot of parents have the concern of how to do the balance i like to think i did a good job for me, watching my son go through school and now enter the job market, and he is in the medical field and starting his career, he was always an intern. one of the things that we try to do here and one of my takeaways from raising him is how important internships are. and here in the department of technology, we pride ourselves on our interns. we have 20 to 25 each year. they do a terrific job contributing to our outside plant five or work or our network engineering or our finance team. this last time they took to programming our reception robot, pepper, and they added videos to it and all of these sort of

things. it was fun to see their creativity and their innovation come out. >> amazing. >> intriguing. >> the way i unwind is with my photography and taking pictures around the city. when i drive around california, i enjoy taking a lot of landscapes. the weather here changes very often, so you get a beautiful sunset or you get a big bunch of clouds. especially along the waterfront. it is spectacular. i just took some photos of big server and had a wonderful time, not only with the water photos, but also the rocks and the bushes and the landscapes. they are phenomenal. [♪] my advice to young ladies and women who would like to move

into stem fields is to really look at why you are there. if you are -- if you are a problem solver, if you like to analyse information, if you like to discover new things, if you like to come up with alternatives and invent new practice, it is such a fabulous opportunity. whether it is computer science or engineering or biology or medicine, oh, my goodness, there are so many opportunities. if you have that kind of mindset i have enjoyed working in san francisco so much because of the diversity. the diversity of the people, of this city, of the values, of the talent that is here in the city. it is stimulating and motivating and inspiring and i cannot imagine working anywhere else but in san >> in 201,755.7 million passengers traveled through san

francisco international airport. we have on average 150,000 people traveling through the airport every day. flying can be stressful so we have introduced therapy dogs to make flying more enjoyable. the wag brigade is a partnership between the airport and the san francisco therapy animal assistant program to bring therapy animals into the airport, into the terminals to make passenger travel more enjoyable. i amgen fer casarian and i work here at san francisco international airport. the idea for therapy dogs got started the day after 9/11. an employee brought his therapy dog to work after 9/11 and he was able to see how his dog was

able to relieve passenger's jitter. when we first launched the program back in 2013, our main goal was to destress our passengers however what we quickly found is that our animals were helping us find a way to connect with our pang. passengers. we find there are a lot of people traveling through the airport who are missing their pets and who are on their road a lot and can't have pets and we have come in contact with a lot of people recently who have lost pet. >> i love the wag brigade. >> one of my favorite parts is walking into the terminals and seeing everybody look up from their device, today everybody is interacting on their cell phone or laptop and we can walk into the terminal with a dog or a pig

and people start to interact with each other again and it's on a different level. more of an emotional level. >> i just got off an 11.5 hour flight and nice to have this distraction in the middle of it. >> we look for wag brigade handlers who are comfortable in stressful situations. >> i like coming to airport it's a lot of fun and the people you talk to are generally people who are missing their dogs. >> they are required to compete a certification process. and they are also required to complete a k9 good citizen test and we look for animals who have experienced working with other orgorganizations such as hospits and pediatric units and we want to be sure that the animals we

are bringing into the airport are good with children and also good with some of our senior travelers. i think toby really likes meeting kids. that is his favorite thing. he likes to have them pet him and come up to him and he really loves the kids. >> our wag brigade animals can be spotted wearing custom vets and they have custom patches. >> there is never a day that repeats itself and there is never and encounter that repeats itself. we get to do maximum good in a small stretch of time and i have met amazing people who have been thrilled to have the interaction. >> the dogs are here seven days a week, we have 20 dogs and they each come for a two hour shift.

>> there is a lot of stress when people have traveling so to from these animals around to ease the stress and help people relax a little bit. i think it's great. >> one of our dogs has special need and that is tristine. he wears a wheel around. >> he has special shoes and a harness and we get it together in the parking lot and then we get on the air train. he loves it. little kids love him because he is a little lower to the ground so easy to reach and he has this big furry head they get to pet and he loves that. >> he doesn't seem to mind at all. probably one of the happiest dogs in the world. >> many people are nervous when they travel but seeing the dogs is just a wonderful relief.

>> what i absolutely love most about it is the look on people's faces, so whenever they are stressed and flying is stressful these days you get these wonderful smile. >> i am the mom of lilo the pig and she is san francisco's first therapy pig. >> lilo joined the wag brigade as our firs first pig. >> wag brigade invited us to join the program here and we have done it about a year-and-a-half ago. our visits last 1.5 to 2 hours and it does take a little bit longer to get out of the terminal because we still get a lot of attention and a lot of people that want to interact

with lilo. >> i feel honored to be part of the wag brigade. it's very special to meet so many people and make so many feel happy and people that work here. it's been a great experience for me and a great experience for to totoby. >> it's been an extremely successful program, so the next time you are here, stop by and say hi.

>> the renovation of balboa park, the oldest in the city of san francisco, and now it is the newest part in the city of san francisco. through our partnership, and because of public investment from the two thousand eight fund, we are celebrating a renewal and an awakening of this park. we have it safer, happier, more joyous. >> 3, 2, 1, [laughter] =--[applause] >> it is a great resource for families, to have fun in the

city, recreation. >> this is an amazing park. we have not revitalized it without public and private investment. the critical piece of the process of this renovation was that it was all about the community. we reached out to everyone in this community. we love this park dearly and they all had thoughts and ideas and they wanted to bring their own creativity and their personality to bear on the design. what you see is what the community wanted. these ideas all came from the residents of this community. as a result, there is a sense of ownership, pride and responsibility that goes along with what is going to be an exciting park.

>> good morning, everyone. the meeting will come to order. happy new year. this is january 8, 2020, regular meeting of the budget and finance committee. i am supervisor fewer. i am joined by supervisors walton and mandelman. i would like to thank sfgovtv for broadcasting this meeting.

madam clerk, do you have any announcements? >> pleplease silence your cell phones. items today will appear on the january 14th agenda unless otherwise stated. >> thank you very much. i want to welcome everyone to the first budget committee meeting of 2020. i did want to note the committee will be recessing today before 11:00 a.m. so you may attend inauguration of mayor breed. we will reconvene after the inauguration to finish the agenda. can you please call item one. >> resolution approving and authorizing 50 year lease with one option tone the port commission and tzk broadway llc

at seawall lots 323 and 324 with a minimum base rent no less than $1 million to commence following board approval. >> we have with us today rebecca. >> thank you. >> and your assistant deputy director of waterfront development for san francisco port. >> good morning. as chair fewer said i am with the port. i am proud to represent the project team today. the resolution before you authorized a 66 year lease for hotel and theater and public open space. it shows the site at the corner of embarcadero and broadway this brown building would be the future site if approved. a bit background. the existing site is a 60,000

square foot surface lot. proposed is a four story building where we would have 192 hotel rooms, 14,000 square foot open space and 30,000 square foot theater space where we would have the new permanent home for zinzanni. a little about the project layout from left to right north end of the site shown with the 14,000 square foot park. that would be closely bordered by this pedestrian access way. it would be a new way from the street down to the embarcadero. the theater would be right in the center. the hotel at the corner of the site. it is important to stop for a moment. siit is an important theater for

more than a decade until 2011. they were moved under agreeable terms to terminate if lease to terminate the mer cuscup and we have been working to find a new permanent home for them. this project has been going on for nearly five years with numerous approvals to date. the rent filing stones are planning, port commission approval late in 2019 as well as consistency finding with the locally noted historic district in the area by the preservation commission which found this new build to be consistent with the historic nature of that district. just a quick overview of the financial structure of how this project will be financed and structured. the team would finance the entire development. they would be required to pay the port the greater of base rent.

about $1 million per year with annual escalations or percentage rent. that is equal to gross revenues time percent beginning at 3.5%. i want to sing. 3.5% rising up to 6.5% by year 20. we will participate in upside so to the extent the tenant is selling or refinancing we participate when the equity is returned and they get return on the equity. the partnership between the port and developer will be sfgovtv earned by two documents first is lbda a contract that will require us to enter the lease so long as certain conditions are fulfilled including the tenant paying our costs and transaction fees.

they must secure the financing and then close escrow to assure they will build what is proposed to be built before entering the lease. the ground lease would govern up to 66 year relationship between port and tenant. port would pay rent. use site consistent with approval and public trust doctrine and numris other numerr documents for approvals. lease revenues projected. minimum rent is light blue set to seek qualor greater from the circus parking lot. percentage rents going up over time and we participate in per order dickey events like -- pier ope-- thedriver behind the projs

bringing back this popular cultural asset helped produce consistency to attract people to the water front. there is also the public open space. the project team agreed to 17% local enterprise goal for contracting. a local hire of 30%. using the first source hiring for jobs along the waterfront. revenues $8 million in impact fees upwards of $4 million per year in annual general fund revenues. i want to conclude prepared remarks with the photo from the time in san francisco. we would like to have them back. i would like to recognize my project manager and j wallace to answer questions from the development team. thank you so much. >> thank you.

colleagues comments or questions? >> supervisor walton? >> thank you for the presentation. you may not be able to answer this. in terms of permanent jobs do we have a breakdown how many hotel, hospitality? are we there yet? >> i can't answer the sector break done we estimate 120 permanent jobs. developer entered into agreement with local 2 for hots workers. -- hotel workers. i don't know that they have a projection yet. >> could we have a bla report, please. >> good morning. budget analyst office. the board of supervisors is asked to approve the ground lease between the port and tzk produce way for development of seawall lots. we summarize those in exhibit 2

on page 4 of the report. in addition. this is referenced the port approved the lease and disposition agreement to cover the construction of the project. that is not what the board is asked to approve today. the ground lease subordinate to that lease and disposition and development agreement until the completion of construction. we do outline the terms in exhibit 3 on page 5 of our report. again, what was in the port presentation, the rent is based on minimum annual rent to the port that starts at $12 million- $1 million and goes up to $1.4 million plus percent 2.5% up to 6.5% and 3.5%. there is also participation rent when the developer received the return on equity. the uncertainty if this would be based on the financial

projections be received when this would go into effect. there would be some participation if the hotel developer were to sell the hotel and the city port would participate in future proceeds from the sales. we summarize on exhibit 4 on page 7 of our report the annual revenues to the report and other revenues that would come from inclusionary fees and tax revenues, which are summarized on page 8 of the report. we recommend approval. >> thank you. let's open this up for public comment. any members of the public like to comment? seeing none public comment is closed? i would like to move this with a positive recommendation to the full board. without objection thank you very much. madam clerk item two. >> ordinance amending the environmental cod to require all

electric energy sources. >> i believe we center cindy from the department of environment. >> okay. good morning, i am cindy c .u. mmerford. here to request your support to amend the environment code to require new construction and major renovations on municipal buildings to be all electric to help the city move toward climate action and create a healthier environment.

i would like to acknowledge my staff. the municipal building coordinator and charles our chief policy officer. let's look at san francisco's emission sources today. we can see 44% of our overall emissions come from buildings. if we break that down, we can see in our municipal buildings 94% of the emissions from natural gas. in our commercial and residential sectors it is about 84%. so this illustrates it is crucial to move away from natural gas. natural gas was once a bridge fuel. as we have moved away from coal, we now need to move away from natural gas. we have so much more research and information in the last five years about the impacts of natural gas. we see that the natural gas

industry is as potent as the coal industry. let me talk about impacts. first natural gas impacts climate. the major criteria po pollutants methane. it traps more heat in a faster time than carbon dioxide. methane traps 8 six times as much heat as carbon dioxides in a 20 year period. there are safety issues. natural gas is combustible and hazardous. in the united states a gas or pipeline catches fire every four days resulting in injury every five days and explodes every 11 days, leading to paytalty every 26 days. we have seen these issues in frap. in february we had the hall of

justice. last year we can't forget about sanbruno where 8 people died from gas explosion and wiped out a neighborhood. in addition to climate and safety we see health impacts. we know that communities living next to extraction sites suffer from respiratory disease, neurological disorders and digestive disorders. a pollutant nitrogen dioxide increases respiratory disease and also trigger asthma. now we learn that it can lead to asthma in otherwise healthy children. this is gas power appliances in homes such as stoves. the policy proposal for us today is to basically eliminate

natural gas from new construction and major construction in municipal buildings. every three years the state of california revises housing codes. cities do this to make sure we meet the state mandates. in addition, cities have the opportunity be to do a reach code. a reach code is efforts beyond the state code and are done for environmental reasons. for 2009 the department of environment worked with supervisor stefani to develop this ordinance. the proposal is simple. it will require all new buildings and major renovations to be all electric and not allow mixed fe fuel buildings. it is important to lead by example.

we raise publish awareness and set the tone where the market is going tgoing to go. it is important to note we have a waiver process. if there was an instance where new construction or major renovation was not able to construct all electric, we have a process for emergencies if it is cost probative or alternative compliance pathway. the waiver is well defined in chapter 7. we would work the project sponsor to make this as easy as possible for success, if necessary. i know the bla report will cover cost and benefits. i will go through this because it is important. we had arab do a small cost-effectiveness study to look at the types of buildings we would foresee the city constructing. what we saw as we looked at equipment costs, the cost of

constructing the building would probably be cost neutral plus or minus 1 ther $1 per square foot. it was limited in scope and did not include savings from not including natural gas infrastructure. we extrapolated that from the 2019 cost effectiveness study. in a large office building that would be less than $200,000 in savings or translated to 35 cents per square foot in saving. we would see annual energy savings from 9 to 48%. that is lower energy bills each year for municipal buildings. it is important to note that this ordinance was done with a range of stakeholder engagement. the intent is to illustrate the ways we have connected with people. for example, we had six green

desk force buildings, met with the code advisory, we have also just met individually with city departments to make sure that we listened to input, concerns and heard about the great work they have been doing. in july the municipal green building task force recommended to the department of environment we include this in chapter 9. i want to cuff touch on a -- i want to touch on a couple examples. we have a couple departments that are all electric. these are in construction or already developed. what really gives me encouragement is buildings are going all electric without regulation. this is the right time for this ordinance. in addition to city buildings, there is an array of public private sector buildings, too.

this slide illustrates affordable housing sites. i looked at the agenda later there is a multi-family affordable rental site. it is on treasure island that they will talk about. that is a great example for this presentation. lastly, i want to talk about our next step was around the elimination of natural gas. this ordinance marks an important step in creating buildings of the future. we are initiating several workshops and work groups to better understand what the opportunities and challenges and solutions are. we are hosting the first public private workshop this afternoon to look at elimination for natural gas city-wide. we also know that we need to address hurdles around transitioning away from natural gas in existing buildings, too. we have had two buildings around

de carbonization and equity that looked at work force development and affordable housing and we will have those discussions this year. we think it is important to do out reach and education. i want to let you know on february 25, our department will host an electrification expo for homeowners, renters and builders to come to learn about how to transition their home to being fossil free. the implementation is crucial for the city to meet climate goals. it will rechoir a lot of -- require a lot of political courage. i want to briefly introduce two colleagues. julie from the department of of public works to speak on behalf of their department and heather

green from long-term capital planning. i will be available to answer questions afterwards. >> good morning, committee members. i am julie lowy. i am the architect and manager for the bureau of architecture at san francisco public works speaking in support of this ordinance. i have been working in the field of architecture for 34 years and have project delivery of many buildings. i joined this seven years ago. as an architect in the building industry i can tell you buildings are the biggest energy hogs on earth in materials, construction and operationally. this ordinance is just one small step towards addressing this critical issue of getting us toward net zero ca carbon for

buildings. some say we passed the point of no return. i am an optimist. this is critical for our environment. you know, one thing i learned when i joined the city is good enough for government work is not what some people take it as. it means good enough for government work. we need to lead the charge in the city and county of san francisco and set an example of this important initiative like this one. our buildings need to be built to last. at the bureau architecture we take great pride in building the buildings with highest quality and durability. government buildings last 50 to 1000 year -- o 50 to one hundred years. lead gold is the lowest common

denominator. we need to do better and get to net positive, which we are trying to do. some of the buildings on the screen. my staff have worked on like southeast community center is net zero, all electric. i think that i want to thank you for your time. happy inauguration day. >> thank you. >> good morning. i apologize heather green. thank you on this busy day. i want to thank the department of environment and cindy and debbie for their efforts. environment capital committee presented this. not surprisingly through the bla, the cost is a concern. building in the city is extremely expensive. we appreciate the attention paid to making sure we are doing this where we should on the whole building major renovation.

not that every time we parent the law we need to electrify the building. it is an important distinction to make this fiscally feasible for the city. this helps advance our greater goals as the city. we drafted the hazard plan for san francisco and a chiefing the greenhouse gas targets is essential for us all. this helps get us there. >> thank you. any questions? could we hear from the bla, please. >> yes, the board of supervisors is approving the amendment to the environment code to require the construction of city owned buildings or major rehabilitation to be all electric. they covered the fiscal impact in the report. based on studies provided by the department of environment. there is a range on the

construction costs depending on the infra structure and building from decrease in cost in increase of $1 per square foot and other cost reductions associated with not installing the natural gas infrastructure. we were provided a range depending on the type of infrastructure summarized in the report. with energy savings there could be some increase depending on the type of electric infrastructure installed to savings generated over time. this is a new policy for the board of supervisors. we consider this to be a policy matter for the board. >> supervisor mandelman. >> clarification on the department of environment presentation. the all electric examples i am assuming are illlus trative. i don't think this will apply to affordable housing developments,

correct? >> right. that is the range of the buildings built in the city. >> i appreciate the thoughtful way the department of environment approached this. i think it is worth saying as we move through the stages through municipal buildings and new private construction we are probably at some point going to have to circle back to retrofitting public and private buildings. over time it will be unacceptable that we have buildings emitting greenhouse gases. it is an important first step in bite sized chungs. thank you. >> i have just would questions. one is that in these buildings i have been asked by actually people my residents who want to switch to all electric in single family homes. i have a tank less water heater in my home. i am wondering are we using for

this construction for these large buildings, how are we doing our water heating systems? are they all electric and how does that work? i have been told that actually there is not a system for all electric water heaters. explaining that in a minute,if you could. >> i will. the technology we would use is called heat pump water heater. it is like the inverse of refrigrator. that is my best layman's terms of explaining it. i will invite a colleague for a more technical answer. heat pump water heater. it is working as inverse of refriggerrator to give out heat that circulates water to heat the house. the electrification fair on the 25th will have a lot of vendors with heat pump water heaters,

spacing, cooling and electric stoves which is a big issue. >> that is great. because we also have a pump in our home, an electric pump to circulate the water. the hook up is gas. this is what my residents are asking. is this a new technology just on the market to you can do this for large buildings? >> yes, we believe we can do it for large buildings. it is not new technology, but it has been improved vastly in the last couple years as the electrification movement has taken place. costs have come down. they are comparable to natural gas appliances at this point. >> if you would send that information to my office about the fair we will get it out in the monthly newsletter. i wondered how we were doing it. i had not heard for the large

buildings. the developers said there are no options to have it all electric. you are here telling me there are options in multi story buildings? >> this afternoon we will host a workshop with engineers and architects to talk about the technology and options. there will be 80 team coming to learn about the technology. >> maybe the next question. i want to ask about are we tapping into any solar energy on the new buildings? are we putting on solar panels? it seems if we are doing the new construction on municipal buildings we should look at capturing solar energy. i would assume we are doing that because the department of environment would be the department that would insist we do that or bring forth an ordinance to require that all municipal facilities being

vastly renovated or newly built that would be a requirement. is it a requirement? >> i will have our breen building coordinate -- green building coordinator apply to that. >> we have the better roofs ordinance that requires some portion of solar on the roofs. as alternative there is an opportunity to apply twice that area in living roof but most projects opt for the solar option. >> that is in conjunction with. when we say that there must be some solar panels, what is the -- we have no measure or bar or minimum or is there that they must comply with? >> it is percentage of the roof area. it is not relative to the operations of the energy demand, it is based on what is available

to the project outside of the mechanical footprint on the roof. >> thank you very much. let's open up for public comment. any members of the comment like to comment on item two? seeing none, comment is closed. i would like to move to positive recommendation and add my name as sponsor. please call item 3. >> resolution authorizing the general manager of the public utilities commission for a contract for cdm smith with planning andy sign and engineering support for the no water treatment plant ozonation for project for an amount not to exceed $15 million for six years mar2020 through march 2026. >> we have bryan de sore,

project manager. >> good afternoon. san francisco public project manager. this item s sfgovtv could we have the slides on the screen? this is a request to authorize the general manager to executes a professional service agreement with cdm smith for professional engineering services on the ozonation project. it is one of the treatment facilities along the sfpuc water transmission system. the plant treats water stored at the san antonio reservoys prior to the transmission system. in recent years it has

experienced more frequent taste and o door event -- odor events from the byproducts of al gee in the two reservoirs. the photos of the reservoirs both in california as well. the purpose of the project is to improve the plant reliability and address the taste and odor events. it was recently constructed at the plant. the facility is located in the yellow outlined area on the photo on the bottom left. the photo of the powder

activated carbon facility is in the right. the ozone facility will be constructed as long-term solution to the taste and odor issues. it is in the outlined area in orange. the ozone facility will consist of an ozone building, liquid oxygen tanks, generators, injectors, contact chamber and associated piping and control systems. it is part of the 10 year capital improvement program, and the budget is $165 million. the duration is approximately six years. this slide shows components that

make up the system. starting at the top left is the liquid oxygen tanks and vapor risesser. to the right is the ozone building. bottom light is ozone injectors which inject ozone into the water prior to the contact chamber. to the bottom right is the ozone de construct system which treats the ozone not dissolved in the water. the ozone project requires planning services. in june 2019 request for proposal was issued for the services. after the interview process cdm smith was the highest ranked proposeser.

in november of 2019 the san francisco public utilities commission approved the selection of cdm smith and award of the professional services agreement. they are here today to approval the $15 million six year term of professional service agreement with cdm smith for the planning and specialized services on this project. thank you. i will be happy to answer any questions you may have. >> colleagues questions or comments? could we hear from the bla, please. >> yes, the board of supervisors is asked to approve the six year contract to provide engineering and planning services for the water treatment and ozonation project which was summarized by the representative from p.u.c.

briefly. the cdm was selected through competitive for $15 million which is summarized in table one on page 16 of the report. of that $15 million, 2.8 are optional costs for engineering support during construction of the plant. the total project cost is $165 million, which makes this contract 9% of the total project budget. we consider that to be reasonable and remember approval. >> thank you. supervisor mandelman. >> this contract raises a question for me as i was briefed by the bla. it is more of a question for the mayor's budget office or controller. which is $160 million project. we are asked to approve $15 million worth of the cost for the design personal services

agreement. i was thinking about, you know, why is it that the larger $80 million construction contract doesn't come to us but the small relatively smaller personal services agreement does? i don't think this is particularly the p.u.c. or the city attorney question actually. i guess the city attorney can address the legal reason why that is. i wonder if the controller and budget analyst can speculate if it is sensible. >> the city attorney. section 9.11 a requires the board give approval to large contracts those that have a term over 10 years or $10 million. that provision of the charter exempts construction contracts. those are not required to go to

the board for approval, regardless of duration or amount. >> over to controller or mayor's budget office, what is the theory as best you understand of why we would look at a relatively small part of the project but not the big giant part of the project? >> as the deputy city attorney said charter section 918p. code section 6 has the outlining of the processes the departments must follow in order to go forth with construction projects. it only applies to about five or six of the city's main infrastructure departments with very detailed minimum bidding and fairness requirements for those departments to ensure it is a fair process. i think it might be helpful for the p.u.c. to explain the public

process they will be going through for the larger construction project so we can understand what departments do in terms of public process for large construction projects like this. >> one of my questions, also, this is the next phase. the $80 million have to go through your commission? >> yes. the process is going through the bid or design bid then build process. we complete the 100% design and openly advertise to contractors who then review the package, prepare proposals and submits their bid for construction work. we do outreach to various contractors and firms that may be interested. we will have a pre-bid

conference with the contractors. this gives the contractors an opportunity to learn more about the project as well as engage with subcontractors who also attend the pre-bid conferences. then contractors will prepare the bids, submit and open bids and identify the lowest responsible bidder. we will evaluate the bids. when the bidder is lowest ranked is selected we will go to the san francisco public utilities commission requesting the authorization to award a contract. with that contractor. >> a contract like this design contract does not go through that process at the p.u.c. or it does? >> this project will go through that process. >> for all of it, design and

construction, all of the contracts? maybe back over, and again if that process is good enough for construction contracts and we trust that it can work the way through the commission process and that there is transparency and that is enough for that. why isn't that enough for the design piece? any thoughts about why that gets elevated to the board of supervisors peboard ofsuperviso? >> the city attorney said because of the charter you must. >> deputy city attorney ann pearson only the construction piece is exempted. the services related to contradiction aren't considered construction contract. those don't fall in that exception. >> i will stop. i am having a hard time

conceptually understanding why one piece of the project, which is design, seems to be something where we don't rely on a departmental commission process. setting aside legal requirement what is is the right way to deal with this, the design has to come here but the construction which is larger doesn't. i will stop. i am done. thanks. >> thank you very much. so let's open this up for public comment. any members of the public like to comment? seeing none, public comment is closed. i would like to move with a positive recommendation to take without objection thank you very much. i think we have time for one more item. please call item 4. resolution declaring intent of city to reimburse future bonds

and authorizing the director of the mayor's office of housing and community development to submission documents for residential mortgage revenue bond not to exceed $24 million for 1223 webster street. >> thank you very much. christina m un n is here today. >> i am here to present on the proposed bond issue resolution before you to fund the rehappy birthday of the marketplace which is an existing 120 unit affordable housing apartment complex at 1223 webster street in fillmore district. it would approve the submit of application to secure an allocation of bond the state and that bond issue would be conduit financing that would not require city funds to repay bonds. it consisting of substantial

renovation of apartment complex built in 1996. there is many tenants there a long time. average tent is there 14 years. under the rehaband refinancing 10 units will remain affordable to households earning no more than 60% of the income and 108 must be no more than 50% of a.m.i. the scope including replacing windows, boilers, repair water system, upgrading fire alarm systems and building exterior work and no displacements or relocation of residents. they will remain in place. timeline. they will return to the board for bond issuance approval in april. on behalf of the project sponsors in hfsdc thank you for consideration.

i am joined by the representative lisa grady. we can answer your questions. >> there is no bla report. let's open for public comment. any members of the comment to comment item 4? it is now closed. i would like to move to board with positive recommendation without objection. thank you very much. having said that, we are going to now recess this meeting and then we will reconvene after inauguration of mayor london >> thank you very much.ondon this is the january 8th, 2020 meeting of the budget and finance committee. we are reconvening now and supervisor mandelman will be joining us shortly.

thank you for the patients showed joke -- your patience as we recess to see the mayor being inaugurated. madame clerk, can you please call item five and six together? >> resolution authorizing the execution and delivery of a multi- housing revenue and in one or more series in aggregate for providing financing for the construction of the 108 unit multifamily rental housing project. item number six is a resolution approving and authorizing the director of property to acquire real property on turk street from turk 500 associates for $0 in exchange for $12.2 million in credit and placing it under the mayor to do office of housing and community development for affordable housing for san francisco. >> thank you very much. we have joyce lynn from mohcd.

is that correct? welcome. >> good morning, supervisors -- good afternoon, supervisors. my name is joyce, project manager with the mayor to do office of housing and community development. i'm here to present items five and six related to 500520 turk street and 5555 larkin street also known as 500 turk street project. it is a 108 affordable multifamily new construction project located at the corner of turk street on larkin street. the project is being developed by the tenderloin neighborhood development corporation. all units will be affordable and will serve households averaging 60% of the san francisco county median income would 27 project voucher units reserved for residents wishing to move from public housing to the project

and will include a mix of studios, one, two, and three-bedroom units. item number five is the first resolution before you requesting authorization to issue multifamily housing revenue in an amount not to exceed $53 million to provide construction financing for the residential project. the transaction fundamentals have not changed since they presented projects to this committee last june. the issuance is still conduit financing with no recourse for the city's general fund. the project continues to be compliance with a few city requirements including prevailing wage and requirements since then, the project developer, a california limited partnership, collectively with us are known as the developers. we secured a debt allocation

from the developer to the california debt allocation limit community. and with the city, identified a financing team including a lender and equity investor and other attorneys in the city's municipal advisor. the team has met several times and develop substantially final documents in the legislative package before you. the resolution before you requests approval and authorization for three actions. this is item number six. number one, the acquisition of the property for $0 to be paid to the developer in the form of a $12.25 million credit to the loan. number two, a grands lease to the property back to the developer for lease term of 75 years with a 24 year option to extend in an annual base rent of $15,000 with affordability restrictions for 99 years and three, a gap alone in the amount

of not to exceed $32.4 million of the developer to finance the construction of the development. construction closing for 500 turk is expected at the end of the month when the bond and loan documents will be executed. the project will start construction june -- soon after with the completion expected in january of 2022. here with me is amy from mohcd, claudia from the real estate division, and jacob from the tenderloin neighborhood development corporation. we will be glad to answer any questions you may have about this request on behalf of mohcd and the developer. we would like to thank you for your consideration here today and look forward to your support >> thank you very much. any comments or questions? supervisor walton? >> thank you. this is a quick process and a

problematic question. how will the residence be selected for the vouchers and will this also be able to apply for safety transfers? >> you're talking about the 27 project lease voucher units? those residents are living in our existing public housing project and will voluntarily move to the project. >> if there is 27 vouchers and let's say we have 50 people that want to transfer, what is the process looking like? >> that is a good question. can i get back to you on that? >> of course,. >> i want to make sure about the public initiative. >> and also a follow-up, if you can let me know if these will also applied to safety transfers in the future. thank you. >> thank you very much.

we don't have a b.l.a. partner for item number five but we do have one item number six. could we hear that, please? >> item six, this resolution does three things. the main three things it does is it proves -- approves the city to purchase from the current owner which is a conjoining neighborhood corporation, which is part of turk 500 associates. it approves an amended loan agreement increasing the loan amount that is currently being allocated to this project. it approves a ground lease for a long-term ground lease for the property. in terms of the loan agreement, we show this on table one of the report. the funding for the loan agreement is $32.4 million.

the incurrence -- the increase is being approved today in the existing loan agreement. the total project amount is shown on page 21, table two of the amount. the total project is $95 million the net of the loan, it is the $32.4 million loan. there is about $1.2 million that is pending as a bridge loan pending other loans being made available to the project. the other part is that the appraised value of the original purchase price was $12.25 million. that amount, when the city assumed ownership, will be credited against the loan amount the actual payback will be that much less. this is on table three, page 23 of the report. city funds are third of the cost

of the project and we recommend approval. >> let's open this up for public comment. would any members of the public like to comment on number five or six? public comment is now closed. colleagues, any comments or questions? i would like to move these items to the board with a positive recommendation. we can take that without objection. thank you. please call item number seven and eight together. >> seven is a resolution authorizing the issuance and delivery of multifamily housing revenue bonds in an aggregate principal not to exceed over 44 willing dollars for the purpose of providing financing for the acquisition, development, and construction of a 105 unit affordable multifamily residential rental housing project currently assigned the street address of 401 avenue of the palms. item eight is resolution and approving a loan agreement in an amount not to exceed 24 by $5 million for a term of 57

years to finance the construction of 100% affordable, 105 unit multifamily rental housing development for low and moderate income at 401 avenue of the palms. >> thank you very much. today we have joan from mohcd. welcome. >> thank you. good afternoon. i am with the mayor's office of housing. i'm a senior project manager. i'm here to present on item seven and eight related to the project to located at 401 avenue of the palms. it's the first newly constructed affordable housing development for veterans on treasure island. the project is being developed by chinatown community development center. the building will include 104 affordable units serving households below 80% a.m.i.

and to give you an idea, for one person, 68,000, two, 78,000, three, 88,000. and for a family, 98,000. the rent will probably be lower targeted populations. thirty-nine of the units will be available to current treasure island households who will be relocated to the building when it is built. sixty-five units will house formerly homeless veterans who are new to the housing. affordability will be maintained for the life of the project which is our new standard for restriction. item number seven is requesting authorization to issue multifamily housing revenue notes in an amount not to exceed $44 million to provide construction financing for the residential project. the transaction fundamentals

have not changed since the project was approved by the board of supervisors and the mayor in august -- on august 9 th, 2019. the issuance is still a conduit financing with no recourse for the city's general fund. the project continues to be in compliance with all city requirements for the issuance of tax-exempt debt including prevailing wage and l.b.e. requirements. since submitting the application for bond financing, the developer has secured a debt limit allocation and with this city, identified a financing team including a lender and equity investor, bond council and other attorneys, and the city's municipal advisors. the financing team has met several times and developed a substantially final issuance stock in the legislative package before you.

item number eight is requesting approval of a gap loan to the developer in an amount not to exceed $24 million. construction closing is anticipated to take place either at the end of january or very soon after the beginning of february. this certificate of occupancy is expected in august of 2021 when the building is complete with all units leased up approximately around december, 2021. here with me today are joanna from chinatown c.d.c. and leon, the project developer. leon -- we will be glad to answer any questions you have about this request. and on behalf of mohcd and the project developers, we would like to thank you for your

support and ask for your continued support. with that, i end my presentation >> thank you very much for your presentation. colleagues, any comments or questions? seeing none, but i have a report on item number eight as there is none for item number seven? >> item number eight, the legislation specifically approves a loan agreement between mohcd and the apartment for the community development. there is currently an outstanding loan of $6.5 million this would amend the loan and increase it by $17.7 million to a total loan amount of $24.3 million. you can see that an exhibit 2 on page 27 of the report. the sources of funding include the egress money that came in and other sources of funds shown in this exhibit. the total project -- budget is 74 by two millions of the loan amount is about