dealers. people who are mentally ill, self medicate. people who are drug dealers victimize these people. again, we need to have practic practical- >> : thank you. next speaker. >> : good afternoon chair and supervisors. i'm a leader of rescue sf. i urge you to support and fund the crisis response. this doesn't work for people in crisis, it needs to use important city resources. it frawf fuft frustrates neighbe people suffering and wandering

the streats everyday. streets everyday. i'm distraught over conditions on our street. as supervisor walton noticed-we feel sadness apri sadness and fd like to help people on our streets. the violent behavior makes it unsafe for neighbor it assist them. this iwe don't see the city addg the crisis. that's why there's a grass roots coalition. so you can hear our voices in a conductive manner. our department of public health failing all of us. it's failing our homeless rez hs residents an neighbors.

lack of resources is not an acceptable answer. e ph needs to rethink where it's placing its resources. department of public health, you are chartered to ensure our public health. you rapidly pivoted to deal with covid 19. you need a rapid response deep. we see people dying on our street. >> : thank you. next speaker. >> : hello. i'm from the association for-[indiscernible]. i think a lot of the citizens of san francisco don't know is that the

only housing available, the only service available for people with homelessness is if they are insane or drug abusers. mental problems and drug abusers. they do not help people if they have medical problems. people have been on the streets a long time before covid 19 s c. i think people have no criminal violent history should be sproa providing housing during a pandemic. it's an actual medical thing that needs to be addressed. there are certainly a lot of nut cases out there and dangerous

ones. i have no idea how many homeless people died of this pandemic. homeless arm gedon. -lower people on drugs on the street. >> : hello. i will make this brief since i am chiming in on this agenda

item as we wrap up. the focus is on the mentally ill population. i support the viewpoint as expressed by rescue sf and a couple of the other callers. i'm against defunding the police. i view the police as essential in this effort. thank you for your time. >> : thank you. next speaker. >> : supervisors, when it comes to quality of life issues, over the last 15 years today in san francisco, we are the lowest. we've tried dumping those that we should be helping in our jail

ses. and so called navigation centers. none of these places have wrap around services. the people that we have living in the [indiscernible]. how many people of color are there to help the most needy, the most

surferrinsuffering. san francisco charge, the mayor, supervisors rk the ssupervisorst humanity. shame on y'all. >> : thank you. next speaker. >> : hello. i want to echo the comments of so many speakers. yes, we need to sup or th suppot

teams. we need to embrace sleeping villages. this is in addition to more permanent affordable housing. this is an interim tool for us to help people get off scary unsafe sleeping situations and more supported sleeping villages all over the city. there was an article done a while back about 42 sites in the safe sleeping villages. i think every district including district five should seriously be working with our supersizors an thsupervisorsand the board ty advocate with these sites in the district and neighborhoods. we should not just decide that

the tender loin and bay view are containment zones. every neighborhood need to step up and volunteer in our neighborhoods. thank you very much. >> : thank you. next speaker. >> : my name is victor. i'm someone who lives with a serious mepta mental illness. fortfortunately i'm able to accs prey goopretty good care. i wanted to raise the concern around conservatorship. sometimes people are not able to make the decisions for themselves. in those cases i would say they could use some conservatorship. however, i want to point out that we already have a aot in

place which is a strongly designed system of care and it's staged and it allows the person who is living with mental health illness to be empowered along the process. it doesn't take away the process from them. it does not need to be disped expedited. yesterday i had a friend that was in crisis and suicidal. the only option i had was to call the police. the police went to her aid. i'm strongly in favor of non police staff twenty four seven to go an help folks rather than taking our-my population into the jails. i would ask you all who want to conserve people at a quicker

rate, where are you going to put these people? we have seen a drastic drop in beds in san francisco. some people need long term care. you're going to bring very very seriously menially ill folks- >> : thank you. next speaker. >> : i guess it's my turn. i'm really disappointed in th the-in this program. i live in the tender loin.

people need help. this is the fact that black lives movement is across the country. it should not be the police that are doing this. we need an alternative. it should be people who are trained in mental health and assistance available as an alternative to the system. this is exactly-maybe the wrong slogan, defun the pleas. defund the the police. but maybe reassign under the purview of professionals. the reform that was made hasn't been making. the police are not the appropriate vehicle.

>> : can we be connected to the next caller, please. >> : hi. i'd like to make a couple of comments. one, i am strongly opposed to the idea of having safe sleeping sites at middle schools. i presume at some point these schools will be used again for students-all adults must be accompanied with a child. why would you have a bunch of

individuals, adults and parking lot and middle schools living there. i have a bunch of safety concerns around that. as far as safe sleeping sites. i would personally love to have a safe sleeping site at a diane finfein stein's house that woule great. they need to be useful in places where they are going to use them. yeah, i think that's pretty much

all i have to say. thank you. >> : all right. the public comment is now close. if thr was closed. there was a comment about-i believe that the sick hotels are creating a staffing challenge and the need to focus on resources. this was partly in response to

eup visosupervisor walton's que. the person's call was saying why would having folks in the hotel's create greater staffing needs, shouldn't it be reducing your staffing need because people have a room are presumably it's generating less need or having less need. secondly, isn't it more efficient. if you could talk a little bit about the staffing challenge posed by the hotels. >> : a lot of the staff that we are providing close to the shelter in place hotels as well as the isolation and quarantine hotels as well as the covid 19 response across the board come

from our existing clinical programs. we are tapping the capacity a considers all of our clinical programs, out patient programs, children's program it staff those hotels sm the staf hotels. the staff we had precovid 19 they are all tapped, we're stretching everybody. >> : the other thing that i'll add is that we are doing comprehensive assessment of everybody we d mit we admit to s and the isolation hotels. when you have people concentrated, newly housed, it's really striking how much need

you upcover. as we mentioned before, we've been concerned about people in crisis in the hotels about overdoses in the hotels. it's quite disruptive for people to be manufactured where they are living with community an others they trust living close to them and put them into a individual hotel room. there is kuwait a lot of need in the hotel. >> : all right. if my colleague doz not have any other questions or comments. i want to close by thanking dr. hammer and director simons and mr. wagner for all of the

work you've done in preparation for the june hearing. i think you've given the mayor an board of supervisors a gift in terms of a path towards implementation oaf thimplementat year. you've shown us the cost of what it would take to make some of these investments if we must make these investments on the streets. think it is now a question of political willing on th will ons that get made in this building. the budget is currently with the mayor. i have asked she prioritize these investments in her budget. i spoke with saw with supervison and she very much wants to see

mental health prioritized this next year. i serm wan certainly want to the folks that called in and under scored the tremendous need. i want to thank my colleagues for being willing to-if you're not one day of hearings on this but two. i'm going to now-the work hear at public safety and services is done. it will continue at the budget committee in august. i hope that the people who called in to make themselves heard as the board finalizes the budget. i will move that we file this hearing.

we do a roll call on that right? >> : (roll call) mr. chair, there are three ayes. >> : great. the motion passes. thank you mr. clerk. thank you d ph for continuing to deal remarkably with our covid 19 challenges as well. mr. clerk do we have anymore business today? >> : that conclaweds our business foconcludes our busine. >> : then we are adjourned. thanks everyone.

>> hi. i'm chris mathers with channel 19, and you're watching coping with covid-19. today, i'm going to be talking about exercising during the pandemic. first, i'm going to tell you what i've been doing, and then i'm going to be checking in with some friends and family. i've been riding my bike. all i take is a pair of gloves

and a mask if i come into contact with anyone. i try to ride my bike during the time i'm sheltering in place. i try to ride for at least 30 minutes. surfing is my other regular outdoor activity. california state guidelines recommend you don't drive more than ten minutes for a spot to exercise, and although i'm close to ocean beach, i'm a bit wary to go there, so i'm using the time to do some maintenance. filling in gouges and dings, and sanding it down. i'm also repairing holes in my

suit. fellow sfgovtv producer chris took his first yoga lesson a couple of years ago and used to go to a class regularly before the lockdown. he and his wife set up a space in their garage for exercising. this routine is from an on-line class by power yoga. deann and andy have been using the ping pong table that they bought off craigslist and set it up in their back yard. ellie has been using this home gym to stay fit. it has everything she needed. and lastly, if the weather is bad outside, you can exercise your mind by doing a puzzle,

sudoku, or just by reading a good book. here's a quick recap. since i started this episode, the guidelines have changed. for instance, jack may be able to go golfing with some restrictions. go to sf.gov to get the most up-to-date valencia has been a constantly evolving roadway. the first bike lanes were striped in 1999, and today is the major north and south bike route from the mission neighborhood extending from market to mission street. >> it is difficult to navigate lindsay on a daily basis, and more specifically, during the morning and evening commute hours. >> from 2012 to 2016, there were 260 collisions on valencia and 46 of those were between vehicles and bikes. the mayor shows great leadership and she knew of the long history of collisions and the real necessity for safety improvements on the streets, so she actually directed m.t.a. to

put a pilot of protected bike lanes from market to 15th on valencia street within four months time. [♪] >> valencia is one of the most used north south bike routes in san francisco. it has over 2100 cyclists on an average weekday. we promote bicycles for everyday transportation of the coalition. valencia is our mission -- fits our mission perfectly. our members fall 20 years ago to get the first bike lane stripes. whether you are going there for restaurants, nightlife, you know , people are commuting up and down every single day. >> i have been biking down the valencia street corridor for about a decade. during that time, i have seen the emergence of ridesharing companies. >> we have people on bikes, we have people on bike share,

scooters, we have people delivering food and we have uber taking folks to concerts at night. one of the main goals of the project was to improve the overall safety of the corridor, will also looking for opportunities to upgrade the bikeway. >> the most common collision that happens on valencia is actually due to double parking in the bike lane, specifically during, which is where a driver opens the door unexpectedly. >> we kept all the passengers -- the passenger levels out, which is the white crib that we see, we double the amount of commercial curbs that you see out here. >> most people aren't actually perking on valencia, they just need to get dropped off or pick something up. >> half of the commercial loading zones are actually after 6:00 p.m., so could be used for five-minute loading later into the evening to provide more opportunities or passenger and commercial loading.

>> the five minute loading zone may help in this situation, but they are not along the corridor where we need them to be. >> one of the most unique aspects of the valencia pilot is on the block between 14th street. >> we worked with a pretty big mix of people on valencia. >> on this lot, there are a few schools. all these different groups had concerns about the safety of students crossing the protected bikeway whether they are being dropped off or picked up in the morning or afternoon. to address those concerns, we installed concrete loading islands with railings -- railings that channel -- channeled a designated crossing plane. >> we had a lot of conversations around how do you load and unload kids in the mornings and the afternoons? >> i do like the visibility of some of the design, the safety aspects of the boarding pilot for the school. >> we have painted continental crosswalks, as well as a yield

piece which indicates a cyclist to give the right-of-way so they can cross the roadway. this is probably one of the most unique features. >> during the planning phase, the m.t.a. came out with three alternatives for the long term project. one is parking protected, which we see with the pilot, they also imagined a valencia street where we have two bike lanes next to one another against one side of the street. a two-way bikeway. the third option is a center running two-way bikeway, c. would have the two bike lanes running down the center with protection on either side. >> earlier, there weren't any enter lane designs in san francisco, but i think it will be a great opportunity for san francisco to take the lead on that do so the innovative and different, something that doesn't exist already. >> with all three concepts for

valencia's long-term improvement , there's a number of trade-offs ranging from parking, or what needs to be done at the intersection for signal infrastructure. when he think about extending this pilot or this still -- this design, there's a lot of different design challenges, as well as challenges when it comes to doing outreach and making sure that you are reaching out to everyone in the community. >> the pilot is great. it is a no-brainer. it is also a teaser for us. once a pilot ends, we have thrown back into the chaos of valencia street. >> what we're trying to do is incremental improvement along the corridor door. the pilot project is one of our first major improvements. we will do an initial valuation in the spring just to get a glimpse of what is happening out here on the roadway, and to make any adjustments to the pilot as needed. this fall, we will do a more robust evaluation. by spring of 2020, we will have recommendations about long-term improvements. >> i appreciate the pilot and how quickly it went in and was built, especially with the community workshops associated with it, i really appreciated

that opportunity to give input. >> we want to see valencia become a really welcoming and comfortable neighborhood street for everyone, all ages and abilities. there's a lot of benefits to protected bike lanes on valencia , it is not just for cyclists. we will see way more people biking, more people walking, we are just going to create a really friendly neighborhood street. [it. >> shop & dine in the 49 promotes local businesses and challenges resident to do their shop & dine in the 49 within the

49 square miles of san francisco by supporting local services in the neighborhood we help san francisco remain unique successful and vibrant so we're will you shop & dine in the 49 chinatown has to be one the best unique shopping areas in san francisco that is color fulfill and safe each vegetation and seafood and find everything in chinatown the walk shop in chinatown welcome to jason dessert i'm the fifth generation of candy in san francisco still that serves 2000 district in the chinatown in the past it was the tradition and my family was the royal chef in the pot pals that's why we learned this stuff and moved from here

to have dragon candy i want people to know that is art we will explain a walk and they can't walk in and out it is different techniques from stir frying to smoking to steaming and they do show of. >> beer a royalty for the age berry up to now not people know that especially the toughest they think this is - i really appreciate they love this art. >> from the cantonese to the hypomania and we have hot pots we have all of the cuisines of china in our chinatown you don't have to go far. >> small business is important to our neighborhood because if we really make a lot of people lives better

more people get a job here not just a big firm. >> you don't have to go anywhere else we have pocketed of great neighborhoods haul have all have their own uniqueness. >> san francisco has to all

[♪] >> i am the supervisor of district one. i am sandra lee fewer. [♪] >> i moved to the richmond district in 1950 mine. i was two years old. i moved from chinatown and we were one of the first asian families to move out here.

[♪] >> when my mother decided to buy that house, nobody knew where it was. it seems so far away. for a long time, we were the only chinese family there but we started to see the areas of growth to serve a larger chinese population. the stress was storage of the birthplace of that. my father would have to go to chinatown for dim sum and i remember one day he came home and said, there is one here now. it just started to grow very organically. it is the same thing with the russian population, which is another very large ethnic group in the richmond district. as russia started to move in, we saw more russian stores. so parts of the richmond is very concentrated with the russian community and immigrant russian community, and also a chinese immigrant community. [♪] >> i think as living here in the richmond, we really appreciate the fact that we are surrounded

three natural barriers. they are beautiful barriers. the presidio which gives us so many trails to walk through, ocean beach, for families to just go to the beach and be in the pacific ocean. we also also have a national park service. we boarded the golden gate national recreation area so there is a lot of activity to do in the summer time you see people with bonfires. but really families enjoying the beach and the pacific ocean during the rest of the time of year. [♪] >> and golden gate park where we have so many of our treasures here. we have the tea garden, the museum and the academy of sciences. not to mention the wonderful playgrounds that we have here in richmond. this is why i say the richmond is a great place for families. the theatre is a treasure in our

neighborhood. it has been around for a very long time. is one of our two neighborhood theatres that we have here. i moved here when i was 1959 when i was two years old. we would always go here. i love these neighborhood theatres. it is one of the places that has not only a landmark in the richmond district, but also in san francisco. small theatres showing one or two films. a unique -- they are unique also to the neighborhood and san francisco. >> where we are today is the heart of the richmond district. with what is unique is that it is also small businesses. there is a different retail here it is mom and pop opening up businesses. and providing for the neighborhood. this is what we love about the streets. the cora door starts on clement street and goes all the way down

to the end of clement where you will see small businesses even towards 32nd. at the core of it is right here between here and 20 -- tenth avenue. when we see this variety of stores offered here, it is very unique then of the -- any other part of san francisco. there is traditional irish music which you don't get hardly anywhere in san francisco. some places have this long legacy of serving ice cream and being a hangout for families to have a sunday afternoon ice cream. and then also, we see grocery stores. and also these restaurants that are just new here, but also thriving. [♪] >> we are seeing restaurants being switched over by hand, new owners, but what we are seeing is a vibrancy of clement street still being recaptured within new businesses that are coming

in. that is a really great thing to see. i don't know when i started to shop here, but it was probably a very, very long time ago. i like to cook a lot but i like to cook chinese food. the market is the place i like to come to once a year. once i like about the market as it is very affordable. it has fresh produce and fresh meat. also, seafood. but they also offer a large selection of condiments and sauces and noodles. a variety of rice that they have is tremendous. i don't thank you can find a variety like that anywhere else. >> hi. i am kevin wong. i am the manager. in 1989 we move from chinatown to richmond district. we have opened for a bit, over 29 years. we carry products from thailand, japan, indonesia, vietnam,

singapore and india. we try to keep everything fresh daily. so a customer can get the best out a bit. >> normally during crab season in november, this is the first place i hit. because they have really just really fresh crab. this is something my family really likes for me to make. also, from my traditional chinese food, i love to make a kale soup. they cut it to the size they really want. i am probably here once a week. i'm very familiar with the aisles and they know everyone who is a cashier -- cashier here i know when people come into a market such as this, it looks like an asian supermarkets, which it is and sometimes it can be intimidating. we don't speak the language and many of the labels are in chinese, you may not know what to buy or if it is the proper ingredients for the recipe are trying to make. i do see a lot of people here with a recipe card or sometimes

with a magazine and they are looking for specific items. the staff here is very helpful. i speak very little chinese here myself. thinks that i'm not sure about, i asked the clerk his and i say is this what i need? is this what i should be making? and they actually really helped me. they will bring me to the aisle and say this is battery. they are very knowledgeable. very friendly. i think they are here to serve not only the asian community but to serve all communities in the richmond district and in san francisco. [♪] >> what is wonderful about living here is that even though our july is a very foggy and overcast, best neighborhood, the sleepy part outside on the west side is so rich with history, but also with all the amenities that are offered.

>> are from any announcements? >> yes, due to the covid-19 health emergency and to protect board members, city employees and the bubble the board of supervisors such as chamber and committee room are closed. however, members will be participating in the meeting

remotely and this precaution is taken purpose to local and state and federal orders and directives. committee members will attend through video conference and participate in the meeting to the extent they are physically present. public comments are available on each item on this agenda. call (415)655-0001, meeting i.d. (416)161-7499? press pound twice and when connected, you'll hear the meeting discussion and you'll be meeted and in listening-mode only.

when the item of interest comes up dial star 3 to be added to the speaker line. speak clearcall clearly and slo. you may submit public comment in either of the furthering ways, email or if you submit public comments via email, it will be forwarded and included as part of the official file and items toda.can you please call item nr 1. >> item number one, motion orders submitted to the voters at an election to be held on november 3, 2020 and the business and test regulations to impose an additional gross receipt tax on businesses

greater than the ratio of the compensation of the businesses. members who wish to provide public comment call (415)655-0001 and meeting i.d. (146)167-7499 and press pound twice. if you have not done, dial star 3 to line up to speak and a system prompt will indicate you are there. >> thank you. supervisor hainey. >> thank you chair fewer and thank you for having me back and for hearing, again, the overpaid executive tax and i want to thank or cosponsors chair fewer, supervisor ronen, walton, mar,

preston and mandelm man for ther support and the san francisco labor council, local 21, local 10-2-1 and all nurses, doctors and healthcare professionals for their support. if this measure passes, any company that pays top executive one hundred times more than the median worker, we'll have a .1% surcharge added to the payment and the more inequify between the top executive and workers, the higher the surcharge. the tax will raise up to $140 million every year and this measure not only raises much-needed funds to fix cracks in our healthcare system but incentivizes the companies to invest in their workers and not executives. businesses can avoid the tax by

paying executives less or by raising their employee's wages. big businesses, i hope, will be on the right side of history here and this is a very targeted tax only on businesses that are still doing very well, large businesses that are still paying top executives millions of dollars. we need a little more support as we face one of the worse budget deficits that we've seen to ensure we can hire nurses, doctors and essential health workers to fight this pandemic on the front lines. i hope you will support this overpaid tax because this is a critical measure to boost our services and protect our services and ensure that we recover economically during this difficult time. >> thank you very much. we heard this last week and we are to practise today, assuming we are all sponsors of this, but

madamadam clerk, let's take pubc comment on item number 1. >> operation is checking to see if there are any members in cue. iqueue. press star 3 to be add and for those on hold, please continue to indicate. mr. clerk, please let us know if there are any callers who wish to comment on this item. >> clerthere are no callers in e queue. >> public item 1 is closed and i would like to move this. (role call). >> are three ayes and madam clerk, can you please call item number 9 out of order. >> item number 9, reason actme f

number 20, with third party to provide staff and maintain restrooms equipped with toilets and handwalking facilities and one restroom per 50 and concentrated in areas with the greatest need within one thousand feet of my encantment. the board of supervisors approve these service agreements forestroom equips wit equipped s and handwashing facilities. members of the public who wish to provide public comment on this item, call (415)655-0001 and meeting i.d. (146)161-7499 and then press pound twice. and if you have not done so, please dial star 3 to line up to speak didn't .

please wait until the system indicates you have been un-muted and you may begin your comment. >> thank you very much. supervisor hainey. >> thank you so much, chair fewer. again, i want to thank you all for supporting this ordinance the first time it came around and i think all of us have benefited from it in terms of the public bathrooms and handwashing stations that have been greatly expanded and the hours expanded and i can tell you you've been there a lot on the tree street streets lately. even with some of reopening, there still aren't public restrooms opened. as a result of that, these public bathrooms out there right now are as critical and essential as ever, especially for the people who continue to be homeless on our streets, but not only for the people who are

homeless partnership know that many essential workers are relying on public bathrooms. every time i walk by them, there's a line and it's been hugely critical and an essential part of our city's front-line response to prevent the spread of the covid-19 and especially as we see a surge of covid-19 cases throughout the city, including in places like the tenderloin which now has one of the highest infection rates and i think it is critical and essential that we renew this emergency ordinance so that we can continue to provide access to ban bathrooms and handwashing station which are key to maintaining public health during this horrific public health emergency. as i understand it, the costs of implementing this ordinance are reimbursable through fema and i hope that you will consider supporting this ordinance and extending it so that this essential service will continue to stop the spread of covid-19

amongst our residents and also provide an essential service that needs to be there tor people's human dignity. again, this is something that people are relying on all over the city and i hope it's something that becoming standardized, but ultimately, there's to doubt in my mind that we need to extend this emergency authorization for another 60 days which will continue to provide services for the 63 pit-stop locations including the ones that had been added over the past fewmans. few months. i hope we can put this forward and extend this emergency ordinance further. >> good morning. i'm from the budget analyst office and as supervisor hainey said, this would extend the pit

stop locations for another 60 days. we show on page 16 of our report, the current budget for all of the pit-stop programs, not just the ones that are extended through the emergency ordinance, but also the ones that predated the emergency. our estimate is that extending the emergency by 60 days would cost 200,000 per week or 1.7 billion over the term of the extension and we consider approval to be a policy matter for the board and i'm available for questions if you have any. >> any comments or questions from my colleagues? seeing none, madam clerk, can we open this up for public comment, please? >> yes, operations is checking to see there are any callers in the queue. operations, please let us know if there are callers that are ready. if you have not done so, press star 3 to be added to the queue. for those on hold, please wait until the system has been muted and please let us know if there are callers who wish to comment

on item number 9. >> madam chair, there are no callers in the queue. >> item 9 is now closed and i will make a motion to move this to the board with a positive recommendation. role call, please. (role call). >> there are three ayes. >> can you call item number 2. >> resolution authorizing the pull utility's commission to execute amendment number 2 to planning project service's agreement for a specialized planning and engineering services for the proposed work facility at the southeast water pollution plant between the city and increasing the agreement by 21 million for a total not to exceed agreement amount of

54.5 million and with a time extension of two years for a total agreement term of 11 years from december 1st, 2014 through november 30th, 2025. members of the public who wish to provide public comment on this item should call (415)655-0001 and meeting i.d. (146)161-7499 and then press pound twice. if you have not done so, press star 3 to line up to speak. please wait until the system indicates you have been muted and you may begin your comment. >> thank you very much madam clerk. today we have with utoday we hac and i believe there's a power-point in front of us. >> good morning, budget and finance committee chair, supervisor fewer, supervisor

walton and supervisor mandelman. i'm the project manager for the sfpuc. thank you for providing the details on this proposed amendment resolution and explain the planning and engineering needed for the southeast plan facility. first, i'll provide a brief project background and function of southeast plant and i'll then provide project evaluation and then dive into scope up engineering services and then explain the need for an amendment and will take any questions you may have at the end. as you are aware, the southeast plant is located in bayview and the southeast plant is bound by evans avenue on the east and south street on the south. cal-train on the north side and

oakdale on west side of the facility. i want to make sure my slides are progressing. southeast plant is the largest of the three waste water facilities in the city and they treat 80% of the sewer flow in the city and some of the southeast plant facility processes operations have been in operation since 1952. it's an aging facility and poses significant risk of regulatory noncommines annoncompliance andh and safety if not addressed. to address this, our commission endorsed a multi phased program known as the sewer system program with the specific level of service requirements to meet with the program. and the three red boxes on the slide that you see signifies the item, namely headwork's project

elements and it's one of the many projects in the larger program in the southeast plant. headworks is the head of the plant and all enters from this facility and the table items and other debrises that come with the waste-water flow to the plant. the process equipment is operating well beyond its useful life and inefficient in moving debris currently. part of the commitment to the community, this will maximize control of orders and improve the visual aesthetic quality of the plant. to meet the regulatory requirements, the new facility will provide the liability and flexibility to the plant operations and most importantly, the new facility will comply with latest seismic codes to

meet condition and bring service back within 72 hours of seismic event. and at the last capacity, it will remain to the current level that is at 250 million gallons per day. and so, this slide depicting the project components. due to an active treat facility, the project construction needs to bees phased by radio scopes and that's why you see three distinct scopes on the slide. scope one includes relocation of utilities and read-out pipe on evans and demolition the wet weather facility to make room to build new headworks. you will see some photographs to give you an idea of enormous nature of the work and scope two, which is across from the street, from the main headworks known as the pump station and that's also part of this project and lastly, the scope is the

main facility with the state-of-art and order-control technologies. this next slide provides overall project cost, scope and schedule and the anticipated total cost is 618.$8 million and the scope is described in the early slide. we have completed scope one and we're at 95% on scope a and just started the foundation for the main headworks which is scope three. the project is anticipated to complete by december 2024. so if you see the mark at the bottom, we are in the middle of the construction currently. next, i'll go with a construction project at the plant and so this photo exhibits the demolition in progress of

wet weather facility to be able to make space to build a new facility at this site and you ts is a construction in progress. the next photo is for scope two-way, which is the pump station and what is shown is the large pushes, th pumps and the g facility and that is for order control and the facility being install at this time. and as i said, once the site was cleared up to make a space to build a new headwork's facility, the photo exhibits the current work going on for the main headwork's facility. once the facility is completed, this is the rendering how the new facility will look like when we are done with this project. the public realm will have art

please wall and aesthetics that does not look like an industrial facility at all. the art features and architecture have been blessed by civic design-review committee. and so let me next walk you through the project evaluation. and so large infrastructure projects of such a size and magnitude and complexity to reduce the construction risk as well as to control the capital cost and headwork's project has not been a different case. the left side is what the project looked like in the middle of 2019 and significantly evolved as it looks like right side of the graphics and as you can see, there are two major differences in the graphics, the tall older control super structure, which is sort of north on the left side is now

turning to a low profile one-story structure slightly west of the headwork's facility. i don't know if you can see my curser, but this is a new resign facility. and the second difference is the lift station and existing lift station for building a separate new pump station. so let me come to the topic about engineering services. the engineering experience is required for this type of project in the field of waste water process engineering. and geotechnical engineering, order control design and construction start-up and testing and the scope of services are delivered in three phases. not the phase one is to complete the conceptual engineers and

design phase. we completed that in 2016-2017 and we pleate completed with the original design and the third phase is for engineering support during construction and value engineering to reduce the cost of the construction. also, you will notice on the photographs, we are in the middle of the construction phase while continuing to operate the facility with minimal equipment until this new project is complete. so the need for this amendment is basically two-fold. the first major component relates to engineering support during construction and the original amount of 4.6 million was mainly used for scope one because the level of effort needed for scope 3 was not clearly defined at the time of last amendment. due to the evolvement project, the evolvement of the construction project as i explained to you

earlier. so now we have better resigned 100% stine of the main headworks and we will be able to determine the engineering network to determine the construction. the second component has to do with the value engineering and resign in order to control the construction costs. so the value engineering we begin late last year required to design the control facility that i showed for you and the lift-station resign and if you approve this amendment today, it will allow us to control capital cost by resigning the two elements i discussed earlier. and the amendment resolution in front of you today is to amend the engineering service contract by $21 million which will result in not to exceed the value of 54.5 million and in the analysis report is equal to 8.8% of total

project costs, which is, in fact, in line with our past capital project, as well as the industry standard. with that, i'm happy to answer my questions that you may have. >> any questions? yes, supervisor mandleman? >> i'm maybe left with this particular amendment but the josepoverall project which has e to 600 plus million and now valued, i would love to understand what mechanisms the puc has in place to sort of keep

projects like this on time and within a budget and if those have worked here or how we've gotten so far off of being $200 million projects that was supposed to be done by 2020. >> supervisor mandleman, thank you for asking that question. and so this type of large infrastructure project is looping duis longdur eight, duration, as you can realize, taking 12, 14, 15 years. the budget is based on conceptual design. it's not detailed out at all and the requirements are not set and we learn about geotechnical conditions when we do the preliminary drilling of the site to determine what kin kind we wl need. so the way the project budget is

set is based on very minimum information at the beginning and we do have a puc control's project where we go through change management process and get approved by our commission, and so we have so far been to our commission for two amendments and that is the process we use for any change for original budget and, also, we have a process of realigning and so as the detailed design gets developed, we find out more about the ground condition and we find out about the conditions underground and those things have to be included in the project. and so those are some of the main reasons about knowing more detail as we progress the design phase. >> thank you for that, but when you initially select the contractor, if presumably you're going through a competitive process and you're evaluating

bids or different companies coming in and saying they'll get the work done for different costs, right? >> supervisor, you make great point. one thing i like to correct, the project is not ending in 2020. i think there might be a typo somewhere. it will end, as i showed in my slide in 2024. coming to your question is about competitive bidding and one of the things we're doing in this project is not the low-bid, design-bid build. we're using something called cmgc, construction manager general contractor. so what we do is bring the contractor early on at about 35% design to get the input into the constructability, sequencing. one has to realize the complexity of the plan because we have to keep the flow alive while constructing this new

facility and so it's complex construction and so it's not a low-bid contractor as a city is used to. so this project did go through the competitive bidding for cmgc and as they get in the design phase, they give the input to reduce the risk of the plans with the regulatory and then the project gets divided into bid packages. so on this project, we have something like 80, 90 bid packages and that's beat out and then we take the low bid on those bid packages. so it's not a one huge package that gets bid out. ed it gets bid out as a trade package along the way and our cmgc contractor helps to time it out. if the work was going to happen in 2023, you don't want to bid out in 2016 at the start of the project because market condition could be different, lower or higher may that be, right?

but we want to bid out the bid package at the right time, not bid out everything upfront. and so that's the reason that it's not a low-bid contractor. >> and so is corolla the cmgc? >> no, the design engineer and so, i don't want to say much about the matter, but there are two basic matters. one is the design build where the designer comes under the contractor. sow would hire a design builder and in this case, this was the design build project and we would help corollo work under the contractor as a team. we hired on a different track, the designer, brought them in 2013-2014 and hired cmgc as the

contractor. >> and they came on in what year? >> cmgc came on in 2016 and the designer came on board in 2013-2014 timeline. >> and the incentive or accountability for the general contractor to keep costs down is what? >> so the packages are being done, as i said, in multiple phases and so the cost depends on the current market condition at the time they bid out, right and so, you are right if this was the design build or guaranteed maximum prize model, we would have been in better control. but with this one packages being bid out, the bid is still the low bid we select out of all of the packages and the means of

control, you can achieve this by guaranteed maximum prize which we do not have the ability in this project. we beat out the trade packages to get the final price. >> do you do some sort of evaluation after a contract is finished to sort of -- i mean, you're trying this cmgc method and whether that's been effective in controlling the costs? >> yeah. and so, you know, it's good you mentioned that. so the project is divided in three scoped scopes, one, two ie and scope one we completed in may and we are taking a lesson learned in the project and apply that on scope three and not even waiting until the whole completion of the project. we are including what lesson learned on scope one and scope 2a which is at 95% construction complete and take the lessons learned from that and include in scope three and it's ongoing

value engineering, as well as the lesson learned implementation. >> ok, thank you. >> thank you, supervisor. >> madam chair, you're muted. >> chair: so sorry. supervisor walton, do you have any comments or questions? i know this is a really big project in your district and it looks like it will go on for many years. do you any comments or questions to ask about it? >> actually, i don't. i stay well versed and i am well informed most of the way. realizing the phases and realizing why -- the cost change was explained to me several times over and i have concerns just like supervisor mandlen man

and i'm sure you do with the costs of this project, very concerning. this is not new information and i've had an opportunity to talk with some of this through the puc. >> chair: thank you very much. could we have the bla report? >> yes. item number 2 approves the second amendment to the existing agreement between puc engineers for the headwork's facility at the southeast treatment plant. the amendment increases the contract amount by 21 million to 54.5 million and extends the term to 2025. we showed this on page 5 of the report and there's a power-point presentation. this is an increase in the overall budget. the approved budget is

194 million. the forecasted budget is 619 million towards the end of the project. it is funded through the sewer system program and we recommend approval. thank you very much. >> chair: let's open this up for public comment. >> operation is checking to see if there are any callers in the queue. operations, please let us know if there are callers ray. icallers that areready. >> madam chair, no callers in the queue. >> chair: i'm two is now closed. i would like to move this with a positive recommendation and may i have a role call vote. (role call).

>> there are three arc yes. item number three in the amount of 3 million on the budget and finance committee reserve for a settlement to the condemnation arising out of said damage during major rainstorm in december of 2014 and winter of 2016 through 2017. members of the public who wish to comment on this item should call (415)655-0001, meeting i.d. 146-7499 and press pound twice. if you have not done so, please dial star 3 to speak and wait until the system indicates you have. un-muted and you may begin your comments. >> chair: thank you very much. and this is a hearing for the approval of the release of funds from our own budget and finance

committee that was put on reserve and so, we have with us greg norby and megan imperial. >> good morning to all. i'm greg norby and i'm the assistant general manager for the sfpuc waste water enterprise and thank you, chair fewer, for scheduling this hearing on the release of the $3 million from the budget and finance committee reserve for the purpose of the waste water enterprise flood claims. and some items here with a brief background for the supervisors. in april of 2015, by ordinance 184-115, the supervisors aappropriated $5 million for the public utility's commission waste water enterprise to pay claims and settlements and legal

expenses and costs related to the extraordinary expenses incurred as a result of the december of 2014 rain storms. and then later, in may of 2017, by a similar motion from ordinance 114-17, the board of supervisors appropriated $5 million for the waste water enterprise designated for general reserves, for the commission, public utility commissions to pay claims and settlements and legal expenses related to claims from the 2016-2017 winter storms and in that action, the ordinance also placed $3 million of that 5 million into the budget and finance committee reserve. and the request before you today is to have that $3 million in reserve be released, be used for

paying the settlements reached totals $4,395,000. upon the relief of the reserves, if approved, those would go to paying the 19 settlements reached out what is referred to as the david alfaro et la versus the city and county of san francisco case, relating to the inverse condemnation's costs arising from the flood damage relating to the winter storms. there are currently no additional outstanding claims from those events and though, i do think generally, there's expectation that there are some coming our way but there are none outstanding.

some of this includes the floodwater grant program for which grant programs can get up to $100,000 for improvements to their property to make them more flood resilient and we also have a one hundred-year flood risk map officially adopted and a disclosure ordinance for property transactions within that defined risk zone. and there is also an ongoing rain-ready public awareness and outreach program that is used to build awareness and preparedness for those property owners and residents within the flood risk areas. and we want to assure the board of supervisors that the public

utility commission takes these resiliencecy efforts extremely seriously and we look forward to continuing our work with the board of supervisors to reduce the flood claims exposures that the city has and we are requesting today, again, that the board of supervisors approve the release of the reserves to fund these 19 settlements and if that is the result from today's consideration, those settlements will be introduced for consideration by the full board of supervisors in the near future. and with that, i will stop and be happy to answer any questions that you have. >> chair: thank you. supervisor fewer. >> will there be more claims higher than the 1.2 million that is needed right now?

>> yes, supervisor walton. i would call this an incremental request and we would anticipate coming back in the future for additional requests as needed so the 3 million takes us as far down the road as we can see with the settlement of the latest batch of claims. >> and the reserve is the only area of the budget that is allowable for the type of expense? my understanding, there's a line item, as i would generally refer to it, in the puc budget that we use for settlements and that budget item gets replenished partly through these actions and we are pulling both from the existing balance in that budget item and we would be utilizing this release of reserves that is

the topic today. >> i would love to know the other areas of the budget have been looked at before we jump into any reserve. >> ok, certainly. >> i've been to hearings where the flooding in certain spots that is consistently throughout our city and talking about rona

and then 17th and fulton, i think, the three areas. now, what we have her is that some of it is actually topography of san francisco and in this mitigation -- and plus, you know, we're seeing more stores thastorms with our climae and we might be anticipating heavier rainfall and so homes ae flooded repeatedly during these storms and some of these floods are actually significant to the waterflow. i'm wondering, we've had many discussions about this in the city, about the homes there and iwhat is the probability even with mitigation, even with homeowners learning how to shore

up their homes, that we can actually address this issue since it's part of this? >> yes, so i think -- let me try to answer that, chair fewer. so in terms of is topography contributing the floods, i think the short answer is yes. the three general locations you just referred to, we know historically from the city mapping and topography that these were areas, they are essentially along significant waterways and they are at typically at the bottom, so to speak of the watershed, where the rainfall and the resulting run-off accumulates quickly and so those physical elements of

those small portions of the city is not something that we obviously have the ability to change and it is a big part of the risk profile. the general consensus is it's difficult to build your way to anything approaching 100% assurance that you will not have flood risk in these or similar types of areas and so i think the best public policy approach, you try to use a layer of resilient actions to reduce the risk as much as you can, to what you consider reasonable as a community and that's a very important community decision, is to what is that acceptable level. and so, when other item -- i know, again, you're well aware of this, the very ability we face and the severity and frequency of precipitation of storms is an uncertainty for the

hot-spot areas. not a simple answer but these are contributing factors to the risk. >> frustrating to say the least. could we have the report, please? >> chair fewer and members of the committee, item 3 approves the release of $3 million on budget and finance reserve to pay 19 claims related to the storms in 2014 and 2016. we show the spending on page 8 of our report. we estimated given existing funds that the need is 2.1 million rather than 3 million and we're recommending the release of 2.1 million which would be retain about 165,000 on reserve. we're available for questions. >> thank you very much. and so, you heard the recommendations from the bla and are you in agreement with that? >> we are in agreement with the

bla recommendation. >> thank you very much and having said that, madam clerk, can you please open this up for public comment . >> operations, please let us know if there are call es ready. if you have not done so, press star 3 to be added and for those on hold, continue to wait until the system indicates you have been un-muted. please let us know if there are any callers who wish to comment on item number 3. >> yes, i have one caller in the queue. is. >> chair: welcome, callers. >> speaker: i'm francis ko fraa decosta and i see you are not paying attention to what is happening right now.

the fbi is investigating this case and you are looking at this in a very general way. i don't give a damn if somebody is representing the city on any level says yes. we cannot begin the outreach at this time, at the 11th hour with this pandemic going on. you have no clue what happened to azul. it's p about the run-off and the

flooding. i don't even have to comment as i'm doing now. i can go directly to the fbi because i have more information. thank you very much. >> thank you. >> madam chair, that completes the queue. >> chair: so colleagues, this item does not need to be forwarded but we need to have a volvote to release the funds. i'm making a motion to release the funds. >> supervisor walton, so sorry. >> thank you, chair fewer. i would like to get a response that this is the only resources available to address the lawsuits. >> mr. norby. >> i don't have an answer this

morning but i can get an answer as soon as possible and provide that back to the supervisors. >> chair fewer, i'm wondering if this is something that has to be approved today, because before we start dipping into reserves, i would love to see if there are any opportunities for resources within the puc budget to address this revenue. >> supervisor walton and chair fewer, if i may, megan imperial here and i just want to give a quick overview of the available funds. so right now, we currently in our budget from our analysts have notified me about the available fund balance from the puc is $2,763,857, which is why the additional funding is required as a 2.1 million, give or take. and so, we work with this with

the bla and we came to that number due to that conclusion. >> thank you so much and i have no discrepancy in the numbers and i understand that quite clear. my question is, is the reserve the only place in the puc budget where you have to take out the $3 million or the exact amount of $2,131,243 that is owed to cover lawsuits at this time? is there another place in the budget where these dollars are available, is my question? >> i think what he's asking for, is there another source of funds besides this reserve? and then i see, if you don't minmind supervisor walton, i see supervisor mandleman in the queue.

do you have a question. >> this is a finance committee reserve that we put on reserve and i guess, utley ultimately, s the board of supervisors. but the reserves we're asked to dip into is a budget and finance committee reserve because the budget and finance committee has not previously wanted to be sending more money over than was definitely -- and that's right, right? am i getting it? >> that's my understanding. >> as you know, supervisor mandleman that has happened where the bla will recommend and back to money in our own reserve. so, indeed, you are correct, that this is our budget and finance committee reserve and this has been, i think, suggested, i'm assuming, by the bla, that we would hold this in reserve and so, this is what is

coming back for, the release of the funds and i do think that supervisor walton's question, though, is even if we decide to vote on this today to release the funds from our own reserve in the puc, is there another fund that helps to pay for these sort of expenses? is that correct, supervisor walton? >> correct, or would even allow for revenue to be released for these expenses. >> sure. so i think that what he is -- correct me if i'm wrong -- we were wondering, there is a timeline for this or this can be continued to the budget and finance committee, and is probably getting crowded right now or is this something you would accept in writing from the sf tv or to the committee, that

they could answer this question if we were pass this on to committee, pass this today, that they could respond to you in writing and respond to the full committee, quite frankly? >> thank you, chair fewer. i would accept that writing and i want to get the departments to get in the habit of trying to use other resources before we dip into the reserves, to cover any expense. and so i am satisfied with getting this in writing of what other options are available for future conversations. but i want all of our departments to be mindful of that. >> chair: i have mr. norby and supervisor walton, what this committee is asking. >> very much. >> chair: we look to see that

in our mailbox and with that, i would like to make a recommendation to approve the release of $2,135,000 from the budget and finance committee reserve. >> call the vote, please. (role call). >> there are three ayes and could we please file this hearing? >> yes, i would like to motion to file this hearing. (role call). >> chair: madam clerk, can you call item number 4. >> a revolution approving the issuance and sales of revenue obligation by the california state-wide community authority and aggregate principle amount not to exceed 10 million to

refinance the rehabilitation and improvement of educational and related facilities operated by school for boys. members who wish to provide public comment call (415)655-0001, meeting i.d., (146)161-7499 and press pound twice. if you have not electric done so, dial star 3 to line up to speak. >> chair: today we have the controllers office. supervisor stephanie's office is available. >> speaker: good morning, i'm from the office of public finance and i'll be giving

background about the process and as chair fewer mentioned, we have sophie hayward and they can speak if there are questions. tax equity and fiscal responsibility act allows for the tax exemption of interest on certain types of debt and in in case, the proposed finance is issued through the california state-wide community's development authority or cscda to which this is a participating member. the authority's authorized issue bonds and other forms of indebtedness including previous issued debt. so this resolution is before you because federal tax law requires the governing body which the project is located approves the financing after providing the opportunity for a duly noticed public hearing before the bonds could be issue on tax-exempt basis and the jurisdiction is not obligated for payment on the

bonds. a hearing noticed was published on june 18, 2020 and via teleconference on june 26, 2020 and no members were heard or received through this public hearing process. a little background on town school. since its founding in 1939, town school for boys has educated boys k-8 to developing a life-long love of learning and celebrating boys at each stage of growth and as an all-boys school, there's rigorous educational -- addresses energy levels and developmental styles of boys and being a diverse and exclusive community nurtures sensitivity and respecting its boys and prepares them to be productive and contributing members of an ever changing

world. there are 415 students in grades k-8 and the town school intends to use the procedures to refinance taxes and certain obligations on august 7, 2013 for the benefit of the bar in amount of $10 million. the pro sees of which were applied to finance acquisition and construction, renovation, and eequipping of the education and rehabilitative services at 2750 jackson street which in the resolution is referred to as at 2013 project. the 2013 project is owned and operated by the bar or town school. assuming all required approvals are retained, cscda expects tax exempt obligations in an amount not to exceed 10 million and it's rose fullbright and approval, again, of the legislation will have no fiscal impact of the city and county of san francisco.

the original project was located in district 2 and the legislation is being sponsored by supervisor stephani and we appreciate the help of their office and coordinating this. if you have any questions, i'm here and also represents of the school and supervisor ste particulaphani'soffice. >> chair: do you have a power-point presentation to share with us? >> we do not. but i'm happy to answer question. we have statistics if you're interested in things like ethnic diversity, tuition assistance, the students we serve and how we serve them across the city. >> chair: sure. if you would like to share that data with us, that would be great.

>> this is primarily from san francisco and moran and 45% of the student body self-identify as students of color. the ethnic break-down of our students is 8% african-american, 28% asian, 34% biracial, 5% latino, hiss tan nick and 4% eastern and 17% multiracial, 1% native american and 3% are the other ethnicities. and we have a tuition assistance budget of approximately $2,126,000 and that serves approximately 20% of our students. our tuition is about $37,964, but the average tuition assistance award is $24,464. a couple of other things we're proud of at town school, we have leased a field for the past 15

years allowing us to make this available to many union organizations, including the san francisco little league, biking, soccer, san francisco boy's and girl's club at no cost to them. and in adig, about 30 years ago, town school launched the new teacher institute which is a two-year teacher training program and 200 individuals have completed the program to date, town underwrites the cost of the program as part of the operating budget and it's graduates go on to teach in both public and private schools across the city and county and country. and i think that's all i was going to address in my comment. thank you. >> chair: colleagues, any comments or questions? seeing none, let's open this up for public comment on item 4. >> operation is checking to see there are any callers in the queue. operations, please let us know if there are callers that are ready. if you have not already done so,

please press star 3 to be added to the queue. for those oare there any callerh to comment on item number 4. >> madam chair, there are no callers in the queue. >> chair: thank you very much. no comments or questions, i would like to a motion to move this with a positive recommendation and can i have a roll call vote. (role call). >> item number 5,. 5. pair (indiscernible).

this commences following board approval and execution of modification number two and with no changes to the term expiring on june 30, 2021. members who wish to provide public comment should call (415)655-0001, meeting i.d. 146-16-17499 and then press pound twice. dial star 3 to line up to speak. >> chair: kathy weidner from the international airport. >> thank you, chair fewer. i'm kathy weidner with the san francisco airport. the resolution would approve the second modification to the airport's ground lease with united airlines to recapture aircraft parking space through an exchange of parcels between the airport and united that would result in a net decrease

of the united plot 6 premisses by approximately half an acre and a decrease in the annual rent payable by united by $95,000. and as a part of the airport's ongoing efforts to maximize the use of ramp space in and around our terminals, the airport developed additional aircraft parking and made other related improvements to the area of plot 6, which required the proposed adjustment to the leased premisses for the airport to recapture portions of the space in exchange for slightly less space to accommodate aircraft parking. the terms of modification to provide for the exchange of parcels between the airport and united that results in a net decrease of the united lease premises and decreases the and rent payable by united by

$95,000. the fiscal impact of this modification does not meet the threshold for a budget analyst report, but i would be happy to answer questions if you have them. >> chair: thank you very much. any comments or questions from colleagues? and there is no billing report on this. let's open this up for public comment. to. >> operation is checking to see if there are callers in the queue. operations please let us know if there are callers that are ready. please press star 3 to be add. for those on hold, continue to wait until the system in case you have been muted. please let us know if there are callers to comment on item number 5. >> there are new callers in the queue. >> chair: i would like to move this with a positive recommendation. could we have a role call. pair (role call).

>> there are three ayes. >> chair: 6. >> professional service's agreement, criminal 51895 for the operations and maintenance of the baggage system in the harvey terminal for a total not to exceed 21 million for a term of two years and commencing august 1st, 2020 through june 30, 2023 and members who wish to provide public comment should call 415-55-6001 and 166-11-7999 and press pound twice. >> chair: kathy weidner from

the san francisco international airport. >> yes, kathy weidner, the proposed resolution would approve a maintenance contract in the airport's terminal one between sfo and gleamer life management through june of 2023 in an amount not to exceed $21 million. the contract has a one two-year option to extend through june of 2025 which would be subject to future boardch supervisor's boa. the current contract is the result of a 2015 competitive request for qualifications and proposals process for a design build contract for the terminal one baggage handling system. the design build contract was partially funded by the federal transportation administration, security administration, tsa and

stated that the airport would enter into an operation and maintenance contract with the baggage-handling system provider through the guarantee to repair period for up to five years after the start of the system operations. they provide the individual carrier systems for baggage handling technology and equipment and the proposed contract will provide operational availability 24/7, as well as labor, materials, parts and equipment to perform operations and maintenance services related to the baggage handling system. the scope of services includes scheduled and preventative maintenance, on-call, unscheduled maintenance and input and performance report. there are performance standards that are a part of this contract which include 99% for availability, 98% for the checked baggage inspection

accuracy standard and 97% for the floatation subsystem practicing accuracy standard and 98% for preventative maintenance and routine inspections. this is given to the current downturn in operations due to the covid-19 impact, as well as the need for physical distancing of employees. the budget analyst office has reviewed the contract and recommends approval but i would be happy to answer questions. >> thank you very much. could we have the daily report, please. >> members of the committee, item number 7 approves a new contract between the airport and beamer for the operations and maintenance in the harvey milk terminal and $21 million through june of 2023. as miss weidner said, this is a contract under the original design build agreement between beamer and the airport.

there was a five-year guarantee to repair period in which beamer would continue to be responsible for the operations and maintenance of the baggage handling system. we show the budget for this contract on page 12 of our report and revenues of the airport and we recommend approval. i'm available for any questions you may have. >> any comments or questions from my colleagues? supervisor walton. >> thank you, chair fewer. just a quick question, does this add or take away any jobs at the airport? >> through the chair, supervisor walton, not city jobs. this is contracted jobs and they add some jobs to keep up the system that this company installed. >> thank you.

>> last week, they approved the baggage handling system maintenance and what's the difference with this contract? >> the contract that was approved last week was for baggage handling in terminal two, as well as the boarding bridges throughout the airport. as you know, terminal one is the new construction project and this is an entirely new system for that terminal and this contract relates only to our heartvy milourouourharveymilk t. >> when you negotiated this new contract, you kept in mind that our airports may not be capacity as it was pre-covid, correct? >> correct. >> are you telling me that this contract reflects that, the price of this contract reflects

the downturn at the airport in. >> the price of the contract that includes the labor, the staffing that's required reflects a lower amount than the staffing that would be required if we were to be at full operations and, again, this is one of those contracts where we only pay for the services provided, but in this case, the negotiation with gleamer happened during the downturn and all of that was taken into account. >> madam clerk, let's open this up for madam comment. >> operation is checking to see there are any calls in the queue. please level us know if there are any calls that are ready. if you have not done so, press star 3 to be added. for those on hold, continue to wait until the system indicates you have been un-muted . are there any callers who wish to comment on item number 6.

>> madam chair, there are no callers in the queue. >> chair: public comment for 6 is closed and i would like to move this board with a positive recommendation and can i have a role call, please. (role call). >> there are three ayes. >> can you please call item number 7. >> resolution authorizing the mayor's office of housing and community development on behalf of the city to execute a grant application under the department of housing and community development, local housing for an amount not to exceed 5 million. call (415)655-0001 if you wish to provide public comment. if you have not done so, dial star 3 to speak.

>> chair: we have ann romera. >> i'm ann romera and i'm here to authorize on behalf of the city and county of san francisco to submit a grant application to the california department of housing and community developments, local housing trust fund program, notice of funding availability for funding up to $5 million. they authorized the bon act

allowing for the allocation of 57 millions of bond proceeds for state and local housing trust fund program and this program provides matching funds to house funds established by city and counties like san francisco under the charter amendment and the notice of funding availability was released on april 30th and the applications are due on august 3rd. there's a maximum application amount per county of $5 million. and they propose to match state funds with an equal investment of the san francisco housing trust fund and construction financing of 100% affordable new construction rental housing. projects would be currently in our pipeline and would be affordable and restricted to households at 60% and would include 30% restricted to extremely low-income households

with incomes defined by hcd and if awarded, we will return to you with an acceptance resolution identifying a specific project as well as loan approval request for that site. i have one request from a minor amendment to the resolution and if we could please strike out the reference to adopting findings under sequa which is not applicable for this approval. thank you for considering this resolution to increase affordable housing investment in san francisco. this concludes staff's presentation and i am available for any questions if you have them. thank you. >> thank you very much. >> chair: i see, supervisor walton, you're in the queue. >> just a quick question looking at the dollar amount. why have we not identified a

site? >> yes. so that is a good question and we were looking at sites in our pipeline to see if we could identify the appropriate site and we have one that we think will work well. however, we want to apply these funds for units online as quickly as possible and we want to see if they are competitive e state funding. in addition, the requirement is that there's a dollar-for-dollar match and so we need to make sure that the housing san francisco trust fund is a good match for that project. and we are zoning in on one that we think it will work and we are hoping to put it all into one project and that would be 5 million from the grant, 5 million from san francisco, housing trust fund and we would bring that project to you when we come back. so we just weren't ready yet to commit in application because all of the details weren't

nailed down yet. >> thank you. >> chair: thank you. and then, madam city attorney, i am imagining that the amendment is not substantive? >> you are correct. >> chair: seeing no one else in the queue, let open this up for public comment. >> madam chair, operation is checking to see if there are any callers in the queue. operations, please let us know if there are callers ready. if you have not done so, press star 3 to be added to the queue and for those on hold, wait until the system indicates you have been un-muted. are there any callers who wish to comment on item number 7. >> madam chair, there are no callers in the queue. >> chair: thank you very much. public comment on item 7 is closed and no daily report on this and i think that you will

get back to us once you identify and every little bit helps. i would like to make a motion to move this to the board with a positive recommendation and if we could have a role call vote, please. (role call). >> chair: i make motion to adopt the amendments. (role call). >> there are three ayes. >> i would like to move this to the board with a positive recommendation as amended. thank you. >> on the motion -- (role call) >> there are three ayes.

>> chair: item number 8. >> for

>> this grant was issued on february 6 and that is the reason for the troat active requesretretroactive act.we wanl to immediately assist in covid, but threaten then hopefully, a e will become available and we will have this person move to other communicable disease needs

and this may include tb, working with the communicable diseases or working with std and hiv work. but the idea would be to have this parole added to our workforce to be able to better serve the people of san francisco. >> this is for 660,000 and what you said is that this is really to fund -- i'm assuming a nurse isn't making 660,000. >> that's correct. that takes into account the indirects with the salary and, also, the general administrative indirects that the city has for budgeted positions. this would be for about a three-year period that we would be funding the nurse through this grant. >> chair: any comments or questions from my colleagues? there is no bla report on this. if not, let's open this up for public comment, item number 8.

yes, madam chair, operation is checking to see if there are any callers in the queue. operations, please let us know if there are callers that are ready and if you have not done so, please press star 3 to be added to the queue and for those on hold, wait until the system indicates you have been un-muted. are there any callers who wish to comment on item number 8? >> madam chair, no callers in the queue. >> chair: thank you very much. public comment on item 8 is closed and i would like to make a motion to move this to the board and a role call vote. (role call). >> there are three ayes. >> chair: madam clerk, can you call item number 10. >> declaring an emergency under the administrative call during

the may 2020 fire improving emergency contracts and enter into the port of san francisco to take all necessary and appropriate measures to perform repair work to pier 45. members who wish to provide comment should call (415)655-0001 and meeting i.d. (164)167-7749 and press pound twice. if you haven't done so, press star 3. >> chair: thank you. do very a representative from the san francisco port today, katie pichioni. i'm the deputy director of port

finance. i'm here this morning to ask for the board's approval of a resolution declaring an emergency under chapter 6 and chapter 21 of the administrative code in response to the fire that occurred at pier 45 on may 23rd. as you know, both chapter 6 and chapter 21 authorize a department head to award a contract in case of an emergency without engaging in a normal competitive bid process. the administrative code requires that the board of supervisors subsequently declare an emergency and an affirm the work done protects the public safety, health, welfare and property of people in san francisco. on saturday, may 23rd, a four-alarm fire broke out at shed sea on pier 45.

thankfully, no one was injured, but the fire completely destroyed the shed. on june 3rd, the port's acting executive director who was actually me at the time, declared an emergency under chapter 6 and then a week later, we amended the declaration to include chapter 21 services, as well. and the declaration defined possible contractual services includes design and historic preservation, hazardous material abatement, engineering and construction, stabilization repair and restoration work at pier 45. to date, the port has used this authority to procure restoration and clean-up services at the remaining three sheds at pier 45. we have engaged a contractor to

demolish shed c and also engage contractors to assess the site of the fire, to project manage the demolition and to perform environmental monitoring during demolition.

thank you. >> chair: please let us know if there are any callers in the queue wishing to speak. >> are there any callers who wish to comment on item number 10? >> i have one caller in the queue. >> chair: welcome, caller. >> speaker: supervisors, i'm francisco decosta, ten years ago, i attended a number of meetings at the san francisco port authority and there was talk that they would report on this warehouse. and so some general statements have been made that this fire took place, but what about the sprinklers?

it was due diligence to have the sprinklers in place. and having said that, one of the reasons i'm calling is, i'm good friends with the board to the fishing boat, pioneer foods and you have treated pioneer foods very badly. and i've spoken to them many times. on occasion, i've gone over there to the pier to buy fish and now and you've told them they can no do their business over there. and so, they are going to do their business even though you were kind of at fault for having no sprinklers.

>> speakers' time has expired. >> thank you, speaker. is there anyone else in the queue? >> madam chair, that completes the queue. >> chair: public comment is now closed and so i think i probably should ask you with this remodel, are you putting in any sprinklers? >> well, the shed itself was completely destroyed and so, we will be rebuilding the shed and

at that point, yes, i would expect we would install a sprinkler system in the building. >> chair: having answered that question, i would like a motion to move this to the boar with a positive recommendation. could we have a role call vote, please. (role call). >> there are three ayes. >> is there any more business before us today? >> no further business. >> we have adjourned and just for listening public that are meeting later, budget in appropriation's committee has been canceled. thank you very much.

>> this is the first digital family wealth forum. it is put forward by elected officials since 2017. we have served over 1300 families so far. we are honored to support you through the pandemic. we will be join by financial planners and experts to answer your questions.

i would like to go over a few housekeeping continues with you. we are offering spanish and chinese interpretations. please select the language channel at the bottom of your screening. there is an icon and q&a function at the bottom of the screen. if you have any questions, type it in and we will try to address it during the webinair. if we run out of time we will follow up afterwards. >> i will ask vivian to go ahead.

>> thank you, vivian. mario, will you please explain in chinese. thank you so much. before we get started. i want to remind our panelist to please mute yourself and stop your video until it is your time

to present. i feel like some of the guests say there is an echo. please mute yourself until it is time for you to present for your session. i will ask our leader, carmen chu, to give opening remarks before presenting our questions and to quick start session one. personal finance management. >> thank you. good morning everybody. i hope you are ready for a morning of financial literacy and good information. i want to say thank you to the folks who helped make this event happen. we are going to try our best to make sure this format is as helpful as possible. be patient with us as we start to experiment with new technology and a good way to relay information during covid-19. i want to thank everyone for joining us this morning at our first ever digital family wealth

forum. we had first started this program in 2017. as we were out apabout in the community we kept hearing questions from across the city how to be plan for the future. it wasn't just about if i have a house, what should i do with it? what should i do for your own personal finances to achieve big goals. education, buying a home or other things. we really wanted to put together good information to our san francisco residents to benefit from hearing from many experts. i think especially right now as we are in covid-19, a scenario we planned for may in person forum we wanted to make sure that we brought credible financial information straight to you. this is incredibly important especially during this time we have heard so many scams that

might be happening. we have heard unreliable information that people are trying to understand, figure out for themselves. what we wanted to do was to bring a program together today to address some of the big concerns we are hearing about, especially with covid-19. today we are going to talk about a number of different things. one, personal finance. we want to make sure we bring our cpa and financial planning professionals to talk to you about what you need to know for personal financial management. what is in the cares act, how do we maximize tax benefits and financial considerations during this time? second hour of the program is going to focus around resources for families. for homeowners, individuals, people who need assistance at this team. shannon with homeowners sf will

share information with you. we want to focus on the topic of estate planning and healthcare directives and what information and documents you need to pull together for the future. this is really important especially now with the global health pandemic. we are doing the best to stay home, stay safe and protect ourselves and loved ones. up of us will know if we contract covid-19 and what that consequence might be. it is a good reminder it is a good time to plan for the future. we have served over 1300 families. i know that we had actually hundreds of people register for this event today. we hope we are able to provide a good program for you so you have the first step forward of being able to plan for the future. before i introduce our panelist and get to the questions, i want

to thank my team at the assessor's office who worked hard to transition to online. vivian, arian and al are here and available to help not only with technical but also the questions that might come forward later from folks participating. thank you all for joining us, and i will jump right into introducing our first workshop participant. we are going to be talking about personal financial management in our first session. i am so excited to be able to have francis and heather join us. i will read you theirbios. it is an impressive history and great passion. i want you to know about them. frances is a san francisco based cpa. part of the finance team at ria

family office. worked for accounting terms for much of his life in private equity and venture capital. in spare time he enjoys volunteering and helps with the financial planning day and helps with tax aid to make sure he is giving back to the community on weekends and helping folks who might not have access to services the way other people would. outside of work you will see that he loves to do a lot of reading. he is learning to play the ukulele. i don't know that he will grace us with those skills today. we hope to learn more from the financial side of his mind. we also have heather a certified financial planner and involved agent at uc berkeley program director for financial planning and accounting. she teaches retirement planning

and employment benefits. she is vice president at hargrave advisers doing the financial planning and has a private practice as tax preparers. her writings have appeared in harvard business communications letters and elsewhere. we have two great distinguished guests to join us. welcome, heather and francis. >> thank you very much for the warm production, carmen. >> thank you. >> hi, heather, thanks for joining us. >> first question. we have a question about congress' act. under covid-19 there is a lot of activity happening in terms of programs available to individuals. one of the questions we received was around the cares act coronavirus aid relief and economic security act.

people want to know what economic repercussions are associated with it. any programs or things they should know about relating to this. i think heather will take the lead on that question. >> the cares act, like most acts is quite complicated with a lot of pieces to it. the ones most important for you are people whose income in 2019 was less than $99,000 have probably already gotten a stimulus check of $1,200 in the mail. if you didn't get that and your income is not very hi, check on it. you can go to irs.gov to see why you haven't gotten it. there are loans for small businesses and other important things. if you have a flexible spending plan or health savings account. those are both ways to save tax free money for medical expenses. two changes. you can buy over-the-counter

medications with those. the last five or six years you were not able to. now you can buy aspirin and things you need at the drugstore and you can use those to buy feminine hygiene products. that was never true before. if realize now that your health insurance or ssa or plans may not have the amount you want or type that you want, your employer is allowed to let you change midyear to put more or less money in the flexible spending plan and change your health insurance if the employer offers more than one plan. you can withdraw or borrow from the 401-k without penalty. you have to pay tax but there is no extra penalty if you are not 59.5 yet. those are the key points that affect individuals.

>> can you tell us about the differences on the topic around 401-k and i ras. this is often a point of question that people will typically raise. >> yes, in general 401-k or work place plan is a great plan. the most common type is 401-k. same is for 403b, 457, simple ira, sep or deferred compensation plan. those are workplace plans. if you don't have that at work you may have ira, traditional or roth. big differences. workplace man you can withhold up to $19,500 of salary in tax

deferred. if you have over 50 you can withhold another $6,500 for $26,000 altogether. if you have an ira, you can put up to $6,000 per year and $7,000 over 50. do the workplace ma plan to save more. >> can you expand on this. there is a difference when we talk about whether something is pre-tax or after-tax contributions. can you clarify? >> if you put money in the 401k or traditional i ra, it is pre-tax money. you put money in and don't get taxed now. that saves income tax in the current year that you put the money in. that is sheltered. when you take the money out later when you are retired, you pay income tax on it then. that is good because you haven't

paid tax for years, you are able to save money and are probably in a lower tax bracket when you retire. that is tax deferred. putting pre-tax money in and tax when you take it out. there are accounts where you don't save now but a lot in the long run. the roth ira if you put it in this year you will not save this year. it is after tax money. as that money grows over the years if you have got it invested it will earn income and dividends, capital gains growth, when you take that out you pay zero tax. both plans are good. if your 401-k offer an option to put some pre-tax and some roth. i usually do both. both plans are really good. >> is there an income criteria for roth ira? >> it is on the screen. if your adjusted gross income is

more than 139,000 and you are single or 206 and you are married filing jointly you cannot contribute directly to roth ira. important if you are married filing separately you can't contribute to any ira. take that seriously you probably shouldn't file separately. most people file single or married filing jointly. there are lower income limits for traditional ir a. if up high income and would like to contribute to roth ira. call th the bank and say backdor roth. they will help you. that is a code term to get money in roth ira with a high income. if you talk to a finance professional they can help you do that.

>> speaking about retirement. i think under covid-19 right now a lot of folks are stepped for cash flow. if we are talking about disruption in jobs because the employment has gone away, people are temporarily or permanently laid off or people with a shelter-in-place order and businesses not opening there is a need to make it through. people have been trying to figure out do i take out loans, should i be pooling money back from stocks and investment, taking money out from retirement funds, those kinds of things. should i stop contributions when i have more immediate needs right now? can you talk about what people should be considering or thinking about in that way. >> it is easier with a lot of money. you can shelter from risk with a

lot of money. if you had all you needed right now to retire and live on for the rest of your life, you don't need to invest. you can keep it under the mattress with no risk. most of us are not in that situation. we need to invest money to grow in the long run. the problem is we don't know exactly how the timing works out. probably now you need more cash than usual. not everybody but many people especially if you lost a job. you need more money available in your checking account to use it easily. i would say try to have a little bit bigger cash nest egg right now than normal. don't give up on investing completely. should we not contribute to 401-k for a while? try not to stop contributing. this is human nature to do the

opposites of what is good for us when it comes to money. the stock market falls and we don't want to be involved. we are going to stop contributing and saving. when it is falling that means prices are low. ideally you want to buy when prices are low. like buying things on sale. we have the opposite reaction when things are high. the stock market is doing great so we buy at the top rate. the best way to manage is if you can spare any cash from daily household budget absolutely keep contributing to 401-k, keep saving that money and this period of time when stocks are low you will be buying cheap. you will have more potential for gain in the long run. try not to stop contributing. try not to borrow or cash out your 401-k if you don't have to. if you lost your job with no

money for food the relief in the cares act allows you to take out money without penalty. you will lose the benefit of the long time savings. >> related to that question. someone had asked should i hold back my retirement plan when the market is crashing? what do i do with my stock and bond investments if i am planning to retire? >> it is all about timing. if you have got a long time until retirement, you want to be in stocks mostly. over the long one they do well. people usually start shifting their portfolio to something more conservative as they approach retirement. as you get older, people put less money to stocks and move more to bonds and cash, which are safer. not likely to crash but don't grow much over the long run. that is a reasonable plan gradually shift from stocks to

bonds and cash. don't do it suddenly. if you try to guess the perfect day, you will guess wrong. do it gradually. don't give up all stocks. you need growth. bonds and cash are not going to grow. >> next question is related to social security income. this is a question i want both heather and francis to weigh on. is social security income taxable? are there ways to qualify for the federal stimulus credits? >> i will jump in with taxable then to francis. your social security might be taxable but never all of it. if you have a relatively -- if social security is your only income, it is not taxable. if you are getting social security and you have investment income or still working so you have other sources of income, then it probably is partially

taxable. if your income is over $32,000 a year, you are married or 25 thousands if you are single. half of the social security income is taxable. if your income is over 44,000 a year 85% is taxable. that does not mean you are paying 85% tax. it means whatever your normal tax rate 12, 24% that will be applied to 85% of your social security. >> when you said 32000 does that include social security income? >> that is complicated. it includes half of the social security. there is an equation. add half of the social security to other income and add back the modified adjusted gross income. this is a rough guide. these are relatively low salary numbers for california in 2020. that is because these were set in 1983 and 1993.

it deliberately is not indexed for inflation more and more people pay income tax on their social security each year. >> francis. >> i think heather has done a fantastic job. i can jump in on how to lower your agi or household taxable income. i think one of the things i want be to clear up is that all of the discussion about the economic impact payment the $1,200 that attendees read about. that is based on your 2018 or 2019 tax information, whether you had information earlier or not. now we are past july 15th deadline, information, i believe like as congress works on some other package they are working

on, it may be based on the 2019 information. the information here how to lower household income is going to be based on how you can lower your household income for 2020 and forward. heather covered a good portion of these things. it is going to sound like i am going to sound like a half broken record. >> you can never hear this stuff enough. >> the traditional 401-k. what is that? did i lose you? >> you are fine. i was saying you can never hear this information enough. >> i listed on the different accounts like your biggest at the top going down. use traditional 401k has an annual limit as of $19,500

depending on your age you may qualify for catch up contributions. she mentioned workplace retirement plans. what if you are self-employed are these available to you? the answer is yes. there is a range of plans. if you want be the higher 401-k limit, especially if you are a solo entrepreneur or small business plan in the sense it is you and spouse working together in a business. consider setting up a solo 401-k for higher limits. this is the traditional ira. individual retirement account. you set it up not so much with an employer separately. this is something that everybody is not aware of. if you are married only one spouse earns an income you can consider setting up and contributing to an ira for the

nonearning spouse. you have read about it, you have come about the term spousal i ra. it is this concept setting up an ira for the nonearning spouse. the next one is the health savings account. different limits depending on the plan you signed up for and your age. there may be catchup contributions available. i listed the figures on the side. i am not going to read them. last, same thing heather mentioned consider the flexible spending account. something to think about. if you have signed up for health savings account. behind full of expenses to run through an ssa, the flexible spending act, if you use it with the health savings account, the ssa is a limited flexible spending account.

if you did not have an hsa, you can use the ssa for run of the mill co-payment costs, drug costs, health, vision and dental. you can run those through. if you use an hsa and ssa together. ssa can only be used for vision and dental. >> francis, i did see a question that came in from one of the folks participating who just wanted to know what can you spend in an ssa versus hsa. can you say again what can you spend out of hsa and ssa and if you have both what does that mean one more time. >> typically the two in terms what you can spend it on, congress has expanded the types of expenses you can spend it on. you can't tell you right now the

list. the typical is a matter of expenses to see your doctor, some type of physical therapy. i am quoting off the top of my head here, drug costs, these are things you typically would run through the h sa and ssa. you would only be limited to dental and vision expenses. you can still do that with hsa as well. when you have them in tandem, the limitations apply for ssa in this case. >> the list of things that you can count as medical expenses for the hsa and fsa is long. doctors and medical and dental and over-the-counter drugs are part of it. if you have questions about specific things, publication 5021 an irs publication that you

can google off the web. that lists every item. if you are wondering my doctor said i should install a swimming pool, those gray areas, 502 is the final answer. one fun fact about this i just checked for a client. she is buying long-term care insurance and could she use a plan to pay the insurance premium on her long-term -- premium on the long-term care? you can payout of hs a, not fsa. pay the long-term care insurance and some cases health insurance and do that tax free, which is great. >> anything else you want to add before i go on? >> i think in terms of united effort that people can lower household income. in terms of limits and

accessibility these are the ones that most people want to look at. >> thank you for that information. heather, there is a question that folks asked participants asked. does it matter if i transfer property before my required minimum distribution age and are there taxes on inheritance? >> second part first because it is easier. taxes on inheritance, likely not. california no longer has a state inheritance tax. a few states do. federally there is an estate tax that doesn't affect you until you have more than $11.5 million or if you are married more than $23 million. for most of us, no problem at all. if you do have more than $23 million call an estate

attorney. there are many good ones. one will speak later. they will shelter your income. you don't need to worry about inheritance taxes. the other part was about transferring assets before -- would you read that again. >> does it matter if i transfer property before or after my minimum distribution age? >> it depends on what you mean by transfer property. your required minimum distribution begin at 72. for many years that was 70.5. the secure act a few months before the cares act changed that. it begins at 72. >> can you explain what the minimum distribution age is first? >> that means if you have saved money in an traditional i ra or

401-k the government doesn't want it from this forever. at 72 you have to take some money out each year there is a formula based on your life expectancy. when you turn 72 you have to take money out each year. that means you move from one account to another. key thing is it becomes taxable at that point. if you have a very high income when you are over 72, you want to spread that out as slowly as possible so you are not paying a lot of tax every year. when you turn 59.5 you are allowed to take money out without penalty. when yout you turn 72, you haveo take money out. between that you are flexible. you can take money out and make it taxable or leave it where it is. that is a good time to think about how much tax do i want to

pay this year so it doesn't become a big burden later all at once. >> does it matter if i transfer property before or after the minimum distribution age? it is not clear what the question is trying to get at. it may be whether they should transfer real estate property before or after the minimum age. it doesn't have an impact necessarily. the minimum distribution age is when you are required by the federal government to take money out of the retirement accounts. it is unrelated to when it is appropriate to transfer a piece of property. >> it is unrelated. the only thing required minimum distributions start triggering taxi effects. if you are doing something to trigger taxes, talk to an adviser and look at the picture to see if you are creating a big

tax burden in a particular year. otherwise no connection. >> one question people have put in here. what are the best options to finance my child's college education? francis, can you take that one? >> i enjoy thinking about. it covered so much of what we talked about. so much of the things you do for yourself in future years when you plan for your retirement can benefit your child's eligible for financial aid as well. the way that i went through this. the amount of effort that you go out of your way to do. regardless of what is in front of you, be looking at scholarships and grants for your child. one thing that people are

thinking about is community college for the general e education portion requirements of the four year degree. they have transfer agreements with four year schools. one example is university of california. i think it is one of those things where i know for a lot of high schoolers in junior and senior year they are looking at all of these things and asks parents, parents are going across the country where do i want my kid to go? there is an option that it can definitely bring down the cost when you think about two years worth of university and housing and living costs for your child. that is a big chunk. one thing to do is if you pay down debt as well as lower household income. contribute to 401-k and that

helps with eligibility. certain things are not considered in financial said. the primary equity, unsecured credit card debt. say, for example when you fill out fasfa how much do you have today. $10,000 in cash and $10,000 in credit card debt. if you fill out the fasfa you have $10,000 in cash they will not be concerned that you have 10,000 in credit card debt. they will see $10,000 and that is going to affect the aid formula in a way where you are going to seem like you can contribute more to your child's cost than you could realistically. the best thing to do is net it out. if you took the $10,000 in cash and paid off the debt you made

yourself $10,000 poorer as it related to the financial aid formula. the last one and i think this is something most people have come across in terms of effort and going out of your way to put an effort this is 529 plan. one of the things that people don't realize. hey, i want to do this trip or i have this medical expense coming up. you can do that with 529. i recommend this to my friends. i am sort of at the age where friends are getting married. set up a 529 and send me the link. i will put in what i can. i basically have sort of contributed to your kid 18 to 20 years down the road if you invest the money properly. i mentioned in the first bullet point instead of toys ask to contribute to the 529 account.

most sponsors, i had a friend who set it up, not a recommendation, she set it up with fidelity. she had a link and used to e-mail to friends. contribute to my kids' 529 plan. the contribution limit is up to the annual gift exclusion every year. 2020 that is $50,00 $15,000. if you have a generous grandma or grandpa, it can be their time to shine. there is a term called front loading. you can contribute up to five years in one year. it is more complex than just doing the $15,000 per year and asking too much of people right now. it is an option available, also. the last and probably most important is invest money in the

529. if your child is 5 years old right now. some type of age where they are not at college level, you don't want the funds you have gone out and collected from friends and family to be in cash. it is not as much help five or 10 years later when your kid is going to college and you were earning 0.5% interest on the cash when you could have got a better rate of return. >> to recap, those were great ideas. tangible things parents can do to get ready for kids. one, reduce income by contributing to retirement and natural ways to bring down the income level so you qualify for financial aid. two, pay down debt because under

the fasfa formula they don't consider your debt. if you pay it down, it benefits you and reflects th the right wy so they consider what you owe. set up accounts that are savings account that you can invest in that grow with your kid until they need to use that funding. can you just expand quickly on are there drawbacks to these plans? i have heard some parents have asked the question shall i just invest in the stock market as opposed to opening up a 529? it sounds like they can only use it for education. what if we don't use it or the situations change? can you talk about the pros and cons what people should think about? >> i think people like to be concerned not knowing how much they will need. i think it is safe to say given

the cost of higher education it is such a small sub set that are not utilizing the money in the 529 plan. the benefit of 529 versus regular brokerage account, the gains that you use for higher education cost, they are not treated as income. strictly in that sense you are putting money in you don't get a deduction for. the gains are used for education expenses. you don't get taxed on. now one way to definitely mitigate the risk. what if my child doesn't want to go to child? what if my child qualified for scholarships and grants and we didn't need the 529 plan? one way to mitigate is set up 529 for theeldes for the oldest.

life changes and you can reassign the 529 plan. you can reassign th the 529 plao the younger brother. there are more considerations to talk about different -- i guess not so much lineage but i i am losing the word. if you try to go from child to grand child there are considerations in there. like the gift and tax planning considerations. it is such a small subset of people with those issues. more people are trying to come up with funds to pay for college and end up taking out loans. if i remember correctly, publication 502, i believe the

529 plans are revised a bit. i forget the exact dollar. you can take out to pay for student loans. is that right? >> you can pay for student loans out of it including your own. francis was talking about transferring to another family member. one child doesn't need it and you can transfer to a family member. this is apart tha a part of thet you can transfer upwards to parent or grandparent. if you are saving for the college's college you can pay off your own loans or take a class somewhere, get your master's degree and use that money. 529s under correct tax law you can use 10,000 per year per child for private school, not just for college any more. one more point to make. in the original question, you said something like should i

just put my money in the stock market instead of 529? that is not either or. 529 then invest it. you are putting in the stock market within the 529. you do have potential for good growth in there. >> absolutely. as francis mentioned you don't want to just put it in there and sit in a cash account. it was more so that the question was more geared toward instead of a 529 is it better to have more flexibility in an independent brokerage account. francis covered it in terms of the considerations there. thank you, heather for adding to that as well. we are getting to 10:45. i have a final question for you. i have seen a lot of questions coming through. i want to make room for that. the last question is a quick one for both of you, francis and heather. the financial planning and getting educated is complex.

people are stuck because they say where do i begin and start? it is hard, right? sometimes there is a million resources. based on your professional path and things helpful for people can you give us recommendations on how to start the journey on financial empowerment and personal growth and finance? >> you want to start, francis? >> sure. i put together my distilled version of the resources. number one is the website called humble dollar. i came across it one or two years ago. i am impressed how broad the topics are. it is an in depth personal finance resource. now, i tell them to go to the website. there are guides on all sorts of subjects including retirement, college, investing. it is not one all and end all.

it is not going to answer everything. it would argue it is a good job of it. it is amazing to me. i think if you are like me you are a big fan of stories. the richest man in babylon, a lot of you have heard about it. i include that. that is my biggest take aways from the three next books. a good savings habit is the bedrock of financial life. everything else flows from it. if you have really -- you can be an amazing investor. if you don't have good savings to come up with capital to put the investing skills to use it is not going to do as much good. that is one of the things that resonated with me. again, i am sure you have seen this book already. your money or life. it is an idea that money equals

time. people are well aware of, but it is limited and finite. that is intentional with your spending. the last one simple enough to pass to while you are working on it. you have one or two options. you can be rich or look rich. it is hard but i think people realize nobody can truly multi-task. it is putting yourself into one thing at a time. if your goal is to become financially independent secure it is easier if you focus on one thing at a time. those are my one page resources especially the website. >> fantastic. thank you. how about you, heather? >> i won't top those great general books.

there may be some websites in front of your face that you don't think about. irs.gov. they get the final answer. i tell tax students if you find a different answer on irs.gov, you win. it is well written. the answers are there about taxes including retirement planning. it is easy to understand. medicare and social security also have good websites. medicare.gov and ssa, social security administration. when you get ready for medicare, it is complicated. you have to make a lot of decisions. it is not easy. one resource is california health advocates. hicap provide free advice when you are making decisions about medicare. they have branches in san francisco and elsewhere. invaluable tool. take advantage of it and use that.

>> thank you. i have learned something new here. as i have been sheltered in place i had to shelter-in-place with my parents. we are talking through medicare conversations with them. this is timely. i am going straight to these sites to find out more. >> i would like to recommend another pair of books. there are some smart guys who wrote get with yours about details of social security. get with yours for medicare is another one. those are easy to read and have answers to every scenario. >> thanthank you, heather. with that i will turn it over to annie for some assistance in getting to the questions that participants have been asking as we have been talking. >> you guys are timely. i was going to interrupt you for the q and a portion. we have a question for francis.

in your scenario instead of paying off credit card, can you pay into the house mortgage? could that be an investment house that is not your residence? thank you. >> i appreciate the question. i can give a yes or no answer here. if you use the $10,000 in cash and $10,000 in credit card debt. if you use that and say you had a mortgage on your primary residence, yes, the same. because year primary residence equity is not counted in the financial aid formula. when it comes to investment property it doesn't work that way. the value of investment property is going to determine the value of the mortgage or debt on that property is not considered the same way your credit card debt would be considered. in this case if your goal is to make yourself better qualified for financial aid because of the

formula and the differences that it looks at your assets and debts you are better off paying other things than credit card debt and primary residence mortgage right after that. >> thank you. here is a question. for roth 401-k if you leave the job and roll over, if the financial institution requires you to selling, will you be taxed if you are under 59.5? >> no, it is not distribution if you roll it directly from roth 401-k to ira. do not tell employer to mail money to you. have it trustee to trustee transfer. send the money from the 401-k to ira. one little secret tip. roth iras one of the reason they are so great.

they are no required minimum distribution. if you have money in roth you can take it out when you have to. you never have to take it out. you can leave it for children. roth 401k do have required minimum distribution. rolling the roth portion into a roth ira when you leave your job. >> thank you. we have time for one more question. that is about student loans. is there any advice about programs other than deferment to help with student loan payments? are there forgiveness programs for those not in an education career? >> i will chime in on the second portion the forgiveness portion. the careers that qualify are not limited to education. it is expanded into some other

roles within government. i couldn't tell you all of the different roles that qualify. it is not just education. irow hate for people -- i would hate for people to think only teaching jobs qualify. you have to understand that typically for forgiveness type loans they are only for loans that are from the federal government. it is not typically private loans that qualify for this. a lot of people have a good understanding of the type of loans that you have and options available. sometimes i know it is asking a lot of people. try to have a conversation with your lender. i think it is no surprise people are una lot of stress financially and just everything else going on in life. lenders are very receptive to

conversations. >> it is getting close to the end of session one. at this point i want to ask you to wrap up with any closing remarks. >> i will say thank you to francis and heather. i think the hour went by fast because you covered a lot of ground and had a lot of different questions. i hope the questions and answers were helpful. the recommendations you gave in terms of how we can begin the path and journey in terms of financial education is good. it is never too late to start. the more you read, the more you know, the better you can engage in conversations and ask more detailed questions and learn more the more you go. there is no wrong question. there is always a good time to start. i hope this helps people to get on that first step. thank you francis and heather for taking time to be with us.

>> thank you. >> you are very welcome. thanks for having me. >> thank you so much. it was an insight full conversation and providing resources for participants. we will share the recording afterwards. you are letting us know you are unable to assess them. we will answer any questions we did not get to. we are going to take a five minute break before the second session. please look at the bottom of your screen. there will be a survey. give us feedback about session one. we will take a break and be back in about five minutes. thank you.

>> if you are just joining us, welcome to the first family forum. before we begin the second session, i would like to let you know this is being recorded and shared on youtube live and sfgovtv. i will ask our interpreter to explain in language so all participants can understand.

>> can you please also good ahead and explain so everyone can get settled in their channel, please. >> thank you to the family

digital wealth forum. it is put forward buyer our assess or since 2017. we have served 1300 families and we will support you through this pandemic. before we start the second session, i would like to go over a few housekeeping continues. we are committed to serving all populations. we are offering spanish and chinese interpretations today. if you prefer those select the language channel at the bottom of the screen. click on the icon and select the language. there is a q&a function at the bottom of your screen. at any point you have questions type it in and we will address it during the webinair. if we run out of time we will follow up with you. i would like to ask vivian to explain so participants can get settled in the channel.

thank you. right now it is 11:10 a.m. may i ask our leader carmen chu to join us as we get started with the second session, financial assistance for families. >> thank you everybody for either joining us for the session or continuing on with us. we think especially during this time having access to credible and good financial information is more important than ever. i am really excited t to introde

shannon. especially now as we see so many different families and people struggling with covid-19 because of job loss or because their businesses are on hold, i think it is important to try to provide as much financial help as we can and this session is going to talk about the resources that are available to families and to individuals to be age to plan for the future. i want to introduce shannon before we get to the questions we have received. for shannon she is one of our longest standing partners when it comes to financial education for citizens. i want to thank shannon today. she is the executive director for homeowner ship sf. she believes financial education is personal empowerment. she ran before in this role a

real estate business for 10 years working with first time home buyers and small investors and helped them to make sure they understood what local home buying assistance programs were and other resources. she transitioned to nonprofit sector i in 2011 to advocate for home ownership. she has seen all of the different transitions in the bay area. as she developed the financial services and first time home buyer program at san francisco lbgt community center and administered the lending circles program in partnership with mission asset fund previously. she served as vice chair for habitat for humanity from 2013-2014 and was on the board of directors for home ownership sf prior to joining as staff member and now executive

director. we are fortunate to have shannon join us and to be able to share her experiences and really help us to get good information so people with understand what is available to them. i want to jump right into this and ask you, shannon, welcome, to ask you. i understand home ownership sf has a network of counselors to provide one be on one services to families in different neighborhoods on the ground what are you hearing from families? what are the big issues that are really arising in particular because of covid-19? >> thank you for inviting me here today. we really value the partnership with the recorders office and you are helping with to get people more options. that is very important part of

the work we do. thanks for inviting me here today. thank you for having this fantastic event. we know it is a challenge to try to bring information into the community with shelter-in-place. woe ar arehome ownership sf hass that are the approved housing agencies in san francisco. asian inc, san francisco lgbt center, mission economic development agency and san francisco housing development corporation. these agencies came together in 2008 with the mayor's office of housing to create home ownership sf as a way for these different agencies serving different populations and parts of the city to be able to come together

in response to the foreclosure crisis happening at that time. we are excited to work together to ensure that regardless where you go that we are having the same standards with service available to make sure we are providing the services. the member agencies are doing the direct services, provide housing counseling and workshops and education and services. our role is to help coordination and the convening of in network, and also we work more broadly speaking with other agencies in the city. we frequently partner with san francisco bar association and housing economic advocates for

legal services, we work with the tenants union and housing rights community and other agencies to provide eviction defense to avoid being a victim and displacement. it is everyone coming together to understand the importance of this work and that no one agency can do it alone. we need to be proactive and very coordinated. the to ensure they get the services quickly. one good thing, i would say, if we can start with a lake at the end of the tunnel is that from the perspective of loan services and banking institutions, you know, we know that it took them a while to get on board when we had the 2008-2009 foreclosure crisis happening. there has been some

infrastructure that has been developed in the meanwhile that we are able to tap into at this time. we have seen the loan versus coming to the table much sooner and with valiant efforts to help prevent another foreclosure crisis to work with people experiencing financial distress and really what we see is that the more open that conversation is the more the versus are understanding what people are going through, where they experience financial distress, particularly related to covid and shelter-in-place. the more understanding and flexible that they can be. you can't get help if you don't ask for it. we are involved in trying to help people not only to have the individual support and education and resources that they need, helping people who have had

credit issues or undebtor relying on credit card goes to get through. we can work with services directly with the authorization and approval from the homeowner to negotiate with banking institutions for your mortgage as well as for other creditors? >> this is important. for many people going through a tough time it feels like they are going through that time alone. it feels like a big stress not to deal with only financial instability but figure out the solution on their own. i want people to know that we do have this resource here, home ownership sf, with counselors and people to help you. i want to make sure people know that because you don't have to

do it alone and you can get help from people who are kind of doing this day-to-day and know what to share with you. just make sure that folks organize and have links. home ownership sf is there to help people through this process. i wanted to ask you. you mentioned that home ownership sf or affiliated organizations can help with negotiations with banks. it sounds like you said a lot of banks are coming to the table faster or financial institutions are coming faster. is that what you see in terms if people are asking for assistance are you seeing the banks are willing to engage in conversation and home ownership sf is providing assistance with those conversations as well? >> absolutely. i do think that we are in the calm before the storm here.

we know as we have looked at people who are unable to pay the mortgage payment or homeowners association dues in march, april, may. as compared to july we see people struggling. as i mentioned the sooner you reach out, we are finding that many of those services are absolutely willing to work with people. you know, not going alone is huge. this is very, very overwhelming kind of stuff. often times just the very basic being able to get somebody on the phone can be a real challenge for homeowners. the great thing with our housing counselors is to leverage the contacts and relationships they have. where we might be struggling for

a response from the loan servicer. we might have a way to the backdoor or to help encourage communication to happen more accurately and consistently. it does require an initial assessment. the first thing and one of the reasons why nose relationship -- those relationships are valued is because they know we have met with the clients. we have assessed the situation and we can quickly and accurately relay what is going on. the first step, of course, would be to come in and meet with the housing counselor, bringing the documentation you have. we can help you make sense of that and figure out what is the best game plan and solution i would like to proceed with. they will sign third-party authorization to give us ability to talk to the servicers.

that is confidential information that needs to be authority to happen, but we are able to then step in and help guide those conversations especially for people who may still be working or have other obligations dealing with home schooling and family situations. finding the time to be able to do that and follow up and, you know, make sure we are staying on them. that can be a real challenge and that is a huge burden the counselors can help alleviate. it doesn't mean we do it all for you. there is some participation required on the part of the homeowner to make sure things are moving forward and to provide documentation. we help guide that process. the other thing to say is important that if we do start seeing foreclosure numbers rise we will see a rise of scams that come along with that.

there will be people who are in the business of accepting money to try to counseling or to try to negotiate on the homeowner's behalf, and that is kind of a big red flag that they are charges, especially if they want thousands of dollars upfront to do anything. that would be an opportunity to run in the other direction because all of our services are provided at no cost. the city helps to fund to make that possible so these services can be provided free of charge to the homeowner. >> we have seeing an increase in the fraudulent behavior happening. people are vulnerable at this time looking for possible hope and help. it is overwhelming. they are more susceptible to when people come to them and say i can help fix the problem and

make it go away but you have to pay me ahead of time. we want be to caution people and reach out to non-profit partners like home ownership sf to make sure you are connected to credible information. i think this idea about credible information and help is really important especially at this time. if you or somebody you know are in need of this kind of assistance, make sure they hear this message and that you share this resource with them. i am going to jump into a lot of people are curious to know whether there are financial assistance programs currently available for families or homeowners or tenants. can you tell us what you know is out there? >> absolutely. the most common solution we are seeing at this time, which is quickly and readily available to the majority of homeowners, is forbearance. now this is a very general term that can mean a lot of different

things. there can be different terms depending upon the service error the investor be that is behind the loan. basically what forbearance is temporary suspension of mortgage payments that is agreed by the servicer to allow somebody to recover from financial hardship. loan servicers are in the business of servicing loans, not necessarily wanting to do foreclosures. obviously foreclosure is a last result for many of them. often times we do find that those servicers will easily agree to forbearance when you can document the financial hardship. what that means you have to pay the amount at a later date. it would allow you to skip

payments for three or six months, up to a year, during which time interest will continue to accrue, but no monthly payments will be due. typically the late fees are waived. in some situations late fees are included, for the most part they agree to waive late fees. repayment is where you are going to see the biggest difference. in terms of the terms different forbearances, person to person and bank to bank. it could be there is a lump sum, balloon payment due at the end of the loan. you pay for 30 years and there will be an amount set aside that needs paid at once. sometimes you will see where however many payments were miss will be tacted on to the end of the balloon. you would pay into that 30 year term to pay the loan in full.

what we see more commonly is repayment plan over agreed upon period. perhaps temperature institution will say, you know, six months we will agree to this forbearance. at the end of six months, you know, you can either pay a lump sum that is due at the end of the forbearance or more commonly we will give you 12 months where we slightly increase the payment you are making when you make mortgage payments again to pay that off over 12 months what you didn't pay for that six-month period. if you have been offered a forbearance, it is really a challenge to get those terms documented. it is really important to ask to make sure you are clear on what the conditions of that forbearance are. this is something that we have been seeing where the counselors are having to make that extra effort and push to help make sure that we get something in

writing, not just verbal yes without proper clarification and documentation of those terms. >> that is important to not just on the phone, yes, this is what is going to happen. to know what is going to happen aten of forbearance period. especially now it is hard for folks. if they don't have the ability to make the ends meet right now, it is tough to imagine if things don't change they will be able to do that in a few months time. can you tell us about any loan programs that might be available to folks? >> absolutely. the forbearance is the first step. it is pretty much insure for most federally backed mortgages. that means the mortgage has been insured or is completely owned by a federal agency. if your loan is insured by

fannie mae or freddy mack. fma or va loan, that is an automatics forbearance that is required of the servicer before they proceed to a foreclosure process. that really is the first step. for people for whom this does not apply, for people whom this does not solve the problem. there is city money available. we have the help loan which has been in place for several years now to provide $50,000 for homeowners who have become delinquent or need additional financial supfort from the city to get through and retain housing and keep their home. iin response to covid, the city

has laxed some requirements and created a special loan for people experiencing financial hard ship due to covid-19. this is available online at the mayor's office of housing to apply. a housing counselor can help you apply for it. that can be an amount of money between 12 to $25,000. that is to help with either current or or future hoa dues, back mortgage payments, and also that can be applied to special assessments if that is something somebody has a condo with a special assessment situation. we are seeing the help loans focusing on the mortgage, needing assistance with the mortgage. of course, to prioritize this money for the people who need it the most the city is going to want to see that if you have a

mortgage forbearanc forbear fore possible they want you to use that first before reaching out for the possible funding. >> next question is for me. this is a question that came in from participants who asked about generally property taxes. we understand that in addition to -- typically for many people if you are still servicing alone your mortgage payments typically are a large expense in terms of maintaining your home. on top of that there are property taxes that are a portion of what you are paying. the question here is will this year's property taxes be delayed or reduced? are there tax savings for seniors? one thing is important for people to know. in san francisco we have to follow the same rules that every

other county, all 58 counties in the state of california follows with properties taxes. it is a county function basically governed by state law and state constitution. probably many, many people know part of the property tax laws are governed by proposition 13 as well. some of these things are not changeable even by the state legislature. there are some elements that could be changed by the state. that is to say that we have had a lot of questions from people about whether we can in san francisco just simply not collect property taxes or do something different. we are tied to state law. if the entire state is doing something, we can do it. we cannot have a different outcome in san francisco that way. there are things important to know. there is a senior through the controller, state controller, there is something called a tax postponement program for

seniors. this is for seniors and individuals who are disabled. the interest rate is something like 6% or so. more information on the state controller's website. that means that if you qualify for the programming, you meet the income threshold for senior you could have your property taxes postponed and not pay them and you would pay them back with interest when you sell them or when you sell that property or if the time comes you pass away and your home is basically transferred to a new owner. there is an interest rate associated with it. not probably the right program for everybody. it exists at the state level. we will share that link with you. this is for seniors. there is an income threshold in terms of people who qualify. i want to go to our slide, if

holly can put up the slide to show the considerations for how it is to think about whether or not covid-19 impacts property taxes. the first thing to make sure that you understand is just the timeline for how property taxes are created. you are going to see that there on the very left of the slide you will see january 1 is an important date every year in the. [ a brief recess wain theassess. it is the day when we decide what your values are at that point in time. we look at the value of your property at that time and compare to your protected value. whichever value is lower is what we use in terms of value to calculate your property taxes for that upcoming tax year. why we show you the property tax

timeline. from january 1 when you receive the bill and make the payment. there is a lag. we are looking as of january 1 every year for what that market value comparison is you won't receive the bill for that payment until october of that year. for january 1, you receive the property tax bills in october. they don't become due until december 2020 in this case and april 2021. there is a full year plus lag when you make the property tax payment for the january 1 date. under the covid-19 scenario it is unlikely in general we will see a big market impact to january 1, 2020. why? everybody can recall in san francisco we did not have a state of an emergency declared until february. past that day. shelter-in-place didn't happen until march, much later than the

january 1 date. the shelter-in-place and covid-19 didn't impact market values january 1, 2020 which is used for your up coming tax bill. we know there is an impact in terms of market and what we can see going forward. if we continue to see the shelter-in-place scenario for a long time, if we continue to see significant drops in terms of business activity and economy and market values of property going to january 2021. what we expect to see it could have an impact on your value at that point in time and we would see an impact in that out year. in terms of property taxes for this upcoming year, we don't think there is a huge impact related to covid-19. the out year we might see that impact. there is another slide we want to share with you. this is something that is important to understand for prop 13. remember when i mentioned that

we take a look as of january 1 about what your market value is and compare to the prop 13 value. people ask what is my drop 13 value? this chart helps to understand that. if you take a look at the lower line on the graph and it is a solid line, this is something that illustrates what the prop 13 value would be. what happens in this scenario. you purchase the property in 2019. you bought for $700,000. under prop 13, the way we have to tax you is we would essentially have that value $700,000. that was the market value when you bought it. we would increase assessment or taxable value by no more than 2% or the california cpi, whichever is lower. we have seen the cpi has been roughly 2%. it is a cap how we can increase

it. it has rarely fallen below 2%. that is the inflation factor. as you can see in 2019, it was $700,000. in 2020 we would generally be taxing at $700,000 plus 2% increase. every year there after. now take a look at that line, the dotted line above. this might reflect and actually this number here in terms of the in my example that $1 million should be connected to that $700,000 there. the way that works we would say what is your market value as of eachtieach particular year? in 2 2020 it is $700,000. perhaps at that time the market value if you tried to sell the home or buy a like property is 1,100,000. we would take the $700,000 value

and use that number to tax. it is the lower of the market value or prop 13 value. if we go forward to 2021 value, i think this is an example where in 2021 we see a drop or reduction in market value of your home. in this case you still wouldn't see a property tax reduction because take a look. your prop 13 value is still lower than that reduced market value. i think this is why we want to be illustrating how we would take a look at it according to the law. we are taking a look at every january 1 what your prop 13 value is compaired to market value, whichever is lower we will use for taxation purposes. not only are we taking a look at the market conditions in terms of if the values are dropping,

these would be the prop 13 value. is it higher or lower? if the market value is lower, that will impact property taxes. hopefully this is helpful for people to understand how the property taxes work and how it is tied to state law as a whole. in the next slipped we want to share that we do have -- in the next slide we will share the property tax programs. for people living in your home. if you are a homeowner and you live in the property you qualify for homeowners exception. we send out the notice in july. on that list or sheet you are going to see a line that points to homeowners exemption. if you live there the home and don't see the deduction or credit for the homeowner's deduction, please contact or office and fill out a form. we will make sure we can apply that so you will savings.

it is a $7,000 reduction to your assessed value. it translates to 70 to $80 in terms of tax savings annually. it is not a lot but better than nothing. a lot of people ask why that is so low. that 7,000 reduction number was passed at state level in 1978. the state legislature hasn't changed that and it hasn't gone up since that time. that is why the number was low. i used to be more meaningful in 1978. it is different now in 2020. the other program that we want be people to know about is you also have special assessments on top of your regular property taxes. these are because of lower approved -- voter approved ballot measures. it could be a san francisco

unified parcel tax or city college parcel tax. with the school district there is a program available for seniors to be exempted from paying that tax if you live in the property or if you own that property. it depends which ballot measure it is. we encourage seniors to reach out to make sure you apply if you are eligible. that can save you something like 2 to $300 annually if not more. that is meaningful for many individuals. i think that is it in terms of property taxes, how it would work in terms of covid-19 and savings available. >> individuals over 54 and people have asked if i am over 54 and want to keep the tax basis and consider moving out of san francisco, what are the criteria? shannon, this is a property tax

question for me. i will share it quickly. this is a question about can i transfer protected base value to another county. there are two programs available. first is an inter-county program. people living in san francisco. it is called prop 60. the way that would work is essentially if you own a property in san francisco right now and you meet the age criteria, you are 55 years old or above, and you decide you want to switch out your property to another one within san francisco, you can potentially keep that prop 13 assessed value and take it with you to the new property. there are a couple of conditions required. i mentioned eligibility. you have to be 55 years and older, a property within san francisco, replacement property.

the new home and old home must have been the principal residence. the home you lived in and the replacement front you will live in. the new omahas to be purchased -- the new omahas to be home will have to be purchased. then finally the market price of the new omahas to be lower or the same value. as the market value of the home you are replacing. there is some criteria associated with it that you would need to know about. there is another program that is available for individuals. that program is called proposition 90. this is something whereas the question had asked. if i move out of san francisco do i have the same benefit

program available? under prop 90 if you are moving to a county that is actually okay with receiving that property tax prop 13 value, you are able to transfer from san francisco to another county. not every single county is a recipient of prop 13 values. there are 13 or so counties that do take that property 13 value from other counties to their county. we encourage you to go to the state california board of equalization website to look at which counties are participating. alternatively if you know you are going to move to a different county, whether it is riverside or different one, you can call that county assessor and ask whether they receive prop 13 transfers from other jurisdictions. the same program conditions apply. it would just be required that

the receiving county has that program available. i think holly has pulled up the counties that are participating. you can see alameda, los angeles, riverside, these are the different counties that do receive prop 13 based year transfers from other jurisdictions. this is on the website. we will put a link up so people have that as well. shannon. is cash out refinance appropriate during the pandemic time? how best should i receive a good interest loan?

>> thank you. it depends. every situation is unique. it depends how much time you have left working. what your ability to repay would be, your duty to remember in taking cash out of your home you will have to pay that back and have a new loan to incorporate that higher principal balance. this is a tool to help you access your home equity to be able to get by financially through these financially trying times. that is one of the wonderful things about home ownership, the ability to leverage the equity and pull it out when you need it. one thing i will say is that a cash out refinance will typically have a higher level of

scrutiny from a lender perspective than doing a rate and term refinance. a rate and term would be where you do fought pull money out but could get a lower payment by refinancing because you now have a better loan to value ratio or because you have a better interest rate. if you have purchased your home with a 5% interest rate right now, certainly there can be opportunity to potentially get a lower rate, and qualify for even cash out on a payment that is equal two or lower to what you are currently paying. in that situation, it could be very appropriate to recapture that equity and utilize it to help you out financially. in terms of the best interest

rate. first have good rea credit. that is the number one fact for that lenders use to determine the interest rate. one of the things to view with the housing counselors we can pull your credit before you apply to review what is the information that is on the credit report. you would be surprised how many people have errors. things not reported accurately and that can be easily removed to give you that bump in your credit record that is necessary. there may be things that the housing counselor can advise how to increase your score. when you shop with the lender and talk to did lenders you will get the benefit of the higher credit score. the other thing is that it is

really important to talk to a bunch of different lenders. who is a good lender? i want to talk to a good bank. this is not as much about good and bad banks but which have the programs and services targeted to the situation most like yours. there are banks that are going to be far morleneient for -- better for self-employment or lower credit scores whereas other banks might have different requirements around that. you will see a surprising disparity. the other thing of value in talking to multiple lenders. we recommend at least three. the reason is because that first lender you talk to, you are understanding what is going on. the market changes all of the time, loan requirements change all of the time. you are getting a basis of what is going on. it is really hard to contextua

contextualize and understand that until you have something to compare to. second lender now you are comparing second lender to the first one. in your mind you can't help but link them as good or bad according to this information you have received. the magic happens with the third lender. now you can know you are getting a representative perspective on a variety of options and having the information and the learning curve that you have gone through to get to that point will empower you to be more solid in your decision and really understand some of the differences between the requirements that different lenders will have. >> annie has jumped on. she is about to tell me we have to go to q and a p.i want to adjust one more question to shannon we received ahead of time because it is relevant.

there are people who have talked about having helok payments or home equity line of credit. they lost jobs to make the payment. people want to understand if there is opportunities to refinance to fixed rate to take advantage of lower interest rates at this moment. the other question related to that is there is conversation that some people had around should they take out an equity loan if they didn't have one already or should they take into account a reverse mortgage loan, those kinds of things? what should people know about the different products and options for folks on refinancing? >> there are a lot of lenders eager to refinance due to the lower interest rates that we have been seeing in recent history as compared to even five

or six years ago when interest rates were significantly higher. there will be costs associated with refinance. couple of thousand of closing costs and those can be rolled into the loan so you don't pay them upfront but they are added to the principal balance. again, with the refinancing, shop around, talk to a wide variety, at least three different banking institutions to get a good perspective on what good means. it depends upon your situation. one thing i will say that we do sometimes see where people get in trouble with reverse mortgages. that is because they look at reverse mortgages as an alternative to a home equity loan. maybe what they might need is the ability to refinance and take cash out or the ability to take an equity loan and access

that equity, but then because they don't have the income to qualify or for other reasons they will derm instead to get a reverse mortgage. that is a very different loan product than a home equity loan. if you are in that situation where you are considering refinancing, particularly if you are considering taking out reverse mortgage. we want to encourage you to set up that free counseling appointment and sit down and discuss that with a housing counselor so make sure you understand what the loan product itself is going to require of you, what happens at the end of that term and to determine what is going to be the best product. there may be things you can do to help adjust some of the problems that might prevent somebody from being able to refinance or take out an equity line of credit to prevent them from having to get a reverse

mortgage. we want you to explore those options before takin taking takn and signing paperwork on the line that might affect what happens to the property at the end of the term. >> lightning round of questions. >> there are so many questions we only have five minutes of q and a. i apologize. we will get to you individually afterwards to answer the questions as best we can. a question here. 7 0-year-old living in san francisco to use prop 60 or 690p 90. >> if you have a current property from san francisco and meet the eligibility for prop 60, we would likely transfer the property 13 value so you would

benefit from the lower value. if you plan to use the property as rental then you are no longer eligible. you have to use the home you are living in and replacement has to be primary. there are eligibility requirements to benefit from that transfer. >> do i need to pay transfer tax if i add my sister to my house title or remove her from the title. >> this is great. i will ask adrian to answer that specific question. >> can you repeat? >> do i need to pay transfer tax to add my sister or remove her from the house title? >> transfer tax depends. i think all transfers you have

to pay transfer tax. is it a gift? you would be exempt. we would have to look at the ownership how you add your sister to the title. in general all transfers are change in ownership. we would have to look at the specific situation. >> let me color that. a few things. adrian is with transactions division. she talks to whether or not a transaction is considered reassessable to market value. when people add names to a deed it is adding a new owner to a property. i think that is something people need to be thinking about. there are certain conditions in which transfer taxes would not apply. we will put a link to the transfer tax website because you

can see specifically what are some of those instances when transfer tax would not apply. you have to fill out an affidavit affirming and promising you are telling the truth that is the way the transaction is happening. that is important for people to know. often times people put names on titles to qualify for refinancing. we get that question a lot when i put a name for refinancing does that trigger reassessment? we will take a look to say after a period of time would that name remove or has it stayed on? those are the things we would consider in looking at to see whether a true ownership change happened or if it was for refinancing purposes. there is a difference. we would encourage you if you have specific questions to let us know. just remember if you are putting names on titles, the way we see

it without knowing anything else about the transition it looks like there is a new owner on the property. remember that may trigger reassessment. look at that closely. >> thank you. we are just about running out of time. i would like to ask you for closing remarks for viewers. >> i wish we had more questions. we will promise to get back to the questions on the chat and try to get you links. i want to thank shannon for all of your help throughout the years in terms of joining us on the forum and providing good information not only with us but with the community. we know we depend on you when we see notices of foreclosures. we send that to you to reach out to folks. we appreciate you and your organization to help san franciscans. >> i am sad we don't have more

time for q&a. i could do that all day. i love hearing people's questions. i see my contact information is here. definitely reach out. we are happy to talk offline and really have that opportunity to go deeper to the individual situations people are dealing with. really just develop a plan that is right for you for wherever you are at and whatever is going on. i thank you thank you for puttis together. on behalf of the team you have worked so hard at this. it is really important to get the word out there and really help people to engage with the difficulties that are happening for you right now. that is really the only way to

work it. sitting and being scared and doing nothing and feeling alone is no way to live. i personally have been through that situation myself. reach out, get the help you need. i want to encourage people to utilize resources available. there is a lot more that i think people realize that is available in terms of resources within the city and through our non-profit housing providers. we are happy to help connect people not only to members but to the broader coalition of partners we work with. >> that is a fantastic way to close this. no matter where you are in your financial situation, please don't feel embarrassed by where you are, don't feel ashamed in terms of feeling alone and there is no help out there. there is. i want people to know that. it is a difficult time that people are in right now. don't feel embarrassed or

ashamed to refer out for help. that is why home ownership sf exists to help to make sure we help you get on your feet. thank you again, shannon. >> thank you so much for such an informative session. we are going to take a five minute break before the last session. i want to remind folks to look at the poll at the bottom of your screen and we encourage feedback in terms of the session today. we will resume in a couple of minutes. >> we are honored to support you and your families during this time. before i invite our leader for the last session. i would like to go over a few housekeeping continues again. we are committed to serving all population we are offering

spanish and chinese interpretations. please select the language channel at the bottom of the screen. there is also q&a function at the bottom of the screen. at any point you have questions type it in and we will respond as much as we can during the webinair. if we run out of time we will reach out afterwards. i will ask vivian to explain so participants can get settled in their channel. vivian.

>> thank you. mario, can you explain in language for the channel. >> thank you so much. may i ask our bold leader carmen chu to join us for the third session. estate planning and ownership

transfers. >> thank you very much, annie. i like how every time we enter a new session there is a new description for me. i appreciate her trying to life venup the transition. i am excited you are joining us for the new station or have continued with us through the forum this morning. as i mentioned earlier, especially with covid-19 we know how posh it is to -- how important it is to provide as much credible financial information as possible. we talked earlier about personal finance continues and we shared about resources available to homeowners abfamilies, and now we are really excited to kickoff the last part of the session around estate planning and planning for the future. i want to introduce our guest. i want to say how important this is especially now.

i think it is often hard to think about planning for the future in a situation where we won't be there. when we pass away or loved ones pass away it is not an easy topic to talk about. it puts us at peace of mind and is protection for loved ones. it helps to make sure when they are going through grieving and a very difficult time your wishes they understand well and there are no -- you can present a lot of arguments that might happen what people think you wanted when you pass away. i know it is uncomfortable conversation but one of the ultimate acts of love to plan and help put at ease what your family will have to go through or loved ones will go through. i hope people will learn a lot from kendra today. we are in the middle of an active global health pandemic

and health is more and more important than ever. kendra is joining us from staff attorney from the housing and economic rights advocates. it is the inauguration organization from the beginning when we started the family wealth forum and great contributor with great information every time. before we get to the questions i want to read the quick bioabout kendra so you know who we are joined with on this program. as a san mateo county native, we will forgive you. kendra obtained great satisfaction using the law to assist bay area residents and homeowners to avoid time consuming costly and disruptive probate processes. she graduated from hastings

college of law and uc davis and guides residents through estate planning in a fun way. her positive approach ensures each client with the right decision. while performing thousands of estate plans she worked through every possible family and estate situation including her own journey with two deceased parents. most clients comment this process is much less of a chore than they thought and they are happy to work with kendra the get affairs in order. ken address has great energy and i am excited to have you on. welcome, kendra. >> first question. people want to know what does estate planning involve? can you give us broad overview what that looks like?

>> absolutely and thank you for the warm welcome. estate planning involves a host of issues many of us face or at least families face. it involves what we want to happen one day when we pass away or when ourselves and spouse pass away. equally important is what happens when we are alive but permanently or temporarily incapacitated. that is why we started this. we were hoping to save people's homes but if they were to become incapacitated we didn't have anyone to deal with issues, assessors, irs, anything like that. it is two different topics and

scenarios and legal documents to take care of it. i will break it down to the two larger topics to prompt thinking about this. we begin with th the scenario. you are in an accident. you are in the hospital for five or six weeks. a lot of things will arise. if you are a renter your rent will be unpaid. if you are about to file taxes and didn't get back to sign the final tax return that would be undone, let's say you just needed someone to pay your bills but you and your spouse were in the hospital. with certain legal documents you can put someone in place to handle those tasks so when you recover and get back to normal life things are as they should be. rent paid, mortgage paid,

financial issues. on the flip side of that, once again you and your spouse are in the hospital and you were not able to communicate yourself to convey what you want for yourself and perhaps what you don't want for yourself. if yo you are in dire medical situation, you need someone there to advocate for you with those medical professionals to make sure your wishes are implemented rather than someone else imposing their wishes on what you think is right or not right for yourself and your body. certain legal documents we can while we are feeling good and when we don't need it indicate someone to take over so that takes place. so our desires are communicated to medical professionals and we are from control what happens to us. that is the part of estate

planning that when we are alive but if we are incapacitated and we are not able to handle financial or medical issues. people only think of estate planning what happens when we pass away and what happens to our stuff when we pass away. the second part is that when we pass away what do we want to have happen to our stuffer? where do we want our estate to go? what do we want that to look like. when we feel good is when we plan to plan for transfer on death deeds, putting will or trust together and we will discuss this shortly, through those tools we are able to make sure our assets passion with the least amount of chaos, expense and maintain harmony within our

families to make sure that does take place. there are legal documents to handle that situation. >> absolutely. just to reemphasize as kendra mentioned. estate plans is more than saying what do we want to happen to the things i own after i pass away? it is about how it is that you want affairs to be taken care of financial or health if you are not able to communicate. if people get in an accident, you are unconscious those things that do happen in life. how is it that you are going to have your bills continue to get paid, how are you going to be able to have medical decisions be made for you especially if you are not able to make those yourself. it is much more broad than what happens if you should pass but also what can i be doing to prepare now for a situation where i can't speak for myself or make those decisions on my

own. i really appreciate you bringing that up. that is especially important right now in the middle of the health pandemic. maybe we can jump into the point you were making earlier the difference between a trust or will. i think people say, let's talk about th the leaving assets. people are done it. >> trust and people say which one should i do. tell us about the differences. >> absolutely. those legal documents to do property at death. a will is appropriate for people if their estate is under $150,000. if your assets are over $150,000 and you cannot put beneficiaries on those assets even if you had

a will unfortunately there is a probate process in california which is expensive, public, your executor needs to public things in the payer. pay paper. it is unnecessary if you take steps to avoid that probate. both documents leave certain assets. you can put beneficiaries. on retirement accounts, life insurance, certain types of other financial accounts. you can put a beneficiary or two beneficiaries on that asset. when you pass away, a death certificate will be presented and that asset will be presented to the living people. on the transfer on death deed. if you put beneficiaries down when the death certificate is presented that property could be

distributed and avoid the probate process that we have here. if people have businesses that are worth a lot of money. the business plan can handle that but if that business is worth over 150,000 a trust would be warranted. if somebody is not going to prepare a transfer on death deed and not satisfied with the limited options available there then if you own a piece of property in california you certainly own an assets worth over 150,000, a trust is in order. keep in mind by gross value the court does not care about leans against the property. in california you own something over $150,000 so a trust may be warranted in that case. >> can i clarify for a moment.

the threshold is 150,000 for probate. does that exclude situations where a beneficiary designation is possible? for example i have savings account worth 10,000 but i have a home worth $1 million. if on the home i was able to file for something called transfer on death deed that can avoid probate, would the 150,000 apply to that $10,000 remaining or is it cumulative? >> that is correct. it would only apply to the assets which you have no beneficiary. if you did take the active step of placing the beneficiary on the account there would be a mini probate. it is assets. it could be expensive cars or when someone has not taken the steps to do transfer on death deed. another instance if people put

one beneficiary on an asset, let's say significant retirement account or life insurance policy and that beneficiary is no longer living. it is a good time to revisit your beneficiary designations on retirement, life insurance and any accounts on which you place beneficiary. we hope you will do so now to make sure that makes sense in your life and make sure you have a second choice. >> just for recap. if i hear it correctly what i understand is that there are certain weighs in which people are able to pass on assets without having to go through probate. one through a trust you can create to do so and that would avoid going through probate. second is if the law allows for certain financial assets accounts designate beneficiaries

through the institution and those instances sort of like as you mentioned retirement accounts, savings or checking account, those are able to buy pass probate s so long as you designate the beneficiary with the institution. what you are saying if there are anything outside of those state allowed ways to bypass probate in terms of beneficiary information if the assets exceed 150,000 you have to go through probate and hire an attorney to go through it. wills won't absolve you having to go through probate if you have more than 150,000 essentially, is that right? >> that is correct, yes. with respect to beneficiaries as long as the beneficiary indicated on the account is stillal live and can be the recipient. that is true.

the will has to go through the probate process if it is going to distribute $150,000 or more in assets. >> kendra, can you speak about the difference between revocable andi irrevocable trusts. >> 99% are revocable. if it is used to create this structure, it can be the jones family trust. after that is created we help you put assets into it. typically it is an account and a home, piece of real property. you are free to change that trust at any time because there is language to allow you or in the case of a married couple to change beneficiaries, trustees, you can add things to the trust. you are putting assets into the

trust. that is revocable. you have control ever everything. you are accountable to no one. you can sell or spend it or do what you want with the assets in that trust. once in a while we doir reckaftrust. you can not change. you do not own the assets once you sign the assets over to that trust. it is $11 million. sometimes people want to take things out of the taxables state and we doir revocable trusts. most of the times you want control of the assets and you want to change beneficiaries or successive trustees. you would have revocable trust. that is why when you put real

property into that revocable trust there is no reassessments because the county views you as the primary trustee, trusttor, you own that asset. it is a different way to hold title. >> absolutely. that gets to one of the questions we get often where we will be looking at in terms of the assessor's office who owned the property prior to something going into a trust. then who are the owners. if they are the same, i think it is important to recognize that we are understanding that there are differences in how people are holding it. so long as the owne ownership ht changed it doesn't trigger reassessment. >> sometimes people are hesitant

they feel like they are giving up control. it is theirs. they are the only people who can change beneficiary designations. they can sell it and the money is theirs. they are accountable to no one other than themselves. >> next question where someone had written in how much estate planning can i do on my own? are there online trust documents vailing lid in the state of california? i will answer part of that and i hope kendra can add to this. i think as we were speaking about earlier, what you decide to do trust or filling out beneficiary information does depend on your financial situation and what you own and how complicated it is. i think trust they do come at a cost if you do it.

it is more expensive. if you do have a complex scenario and own a lot of property or something more complicated you might want to consider going down a path of trust because you can also benefit from getting legal advice, financial accounting and advice associated with it. that is something to consider. for people who have a really simple situation where maybe they just own a bank account and that is all they have under $150,000. they know who they want to give it to, maybe a trust or will is not necessary. it is just something you want the think through what your desires are. in the scenario where i have a $10,000 bank account. i want to make sure my daughter receives it when i should pass. since it is under the 150,000 limit and i have nothing else i could go the bank and ask to fill out a beneficiary information designating my

daughter would receive it. after i pass so long as the death certificate is provided she will get that $10,000. that doesn't create a trust to do that. if you own just a home and that is all you have, there is something that the state law has created called a transfer on death deed. this is new. california passed this in 2016. it allows people to record a simple document with the recorder in your county that says who you would like your property to pass on to should you pass. transfer on death deed. we are going to include that ling on the chat to have access to the information. generally the way it works for small properties one to four residential units, condos or single family homes. generally the beneficiaries are

co-owners in equal shares. if you want something complicated and want someone 1% and another to have 10.5, this may not be the avenue for you to go. this is a scenario. i have one house, one daughter, i want her to have it all. designate that and get it recorded at the county recorder's office to apply it. like a revocable trust you can change your mind with t on. d. this is something that is important to know. let's say you want to designate to give it to your daughter, you have a falling out or perhaps make something happened and you want to give your property to someone else. you need to remember to either file a new transfer on death deed so the most recent one filed is going to take precise

dense. you can also file other documents to cancel it to record what is a revocation form saying i cancel that previous tod and/or if you sell that property it essentially takes precise dense over that because you no longer own that property.

>> : for folks who may not be aware when you do kind of inactive a trust you may be designating someone who is going to the desires of that trust or what is specified. many times people end up asking someone they trust, family or relatives to do it. they may also ask a professional to do it. can you talk a little about that. >> : absolutely. in a will or a trust or frankly a power of attorney, you're

going to indicate a first point person that you've taking the time to pay sm you can choose someone within your circle. it could be a family member or a child. it could be a friend. but i think it's very wise to be honest about the strengths and weaknesses of the people you are considering. you know, the person indicated either on a power of attorney as an executive of a will or trustee needs to be good with details and finances. typically those people have gone through some education as how to

act as a fiduciary for individuals. i would talk to three and see how you get along with them and assess their experience as having work as a professional fiduciary. for some people they want their banks to ak a act as a fid fidu. some will act as a power of attorney and some will not do so. banks will typically charge between two and 5% of what they are dealing with. make sure to get their fee structure if you are thinking of using the bank. fiduciaries are a little less than a bank. if you name a friend or family member, you may want them to have a fee or may not want them to have a fee. that's up to you. i think in a nut shell it's very

important to really assess the strengths and weaknesses if you're thinking of using a family member. a health care agent if you happen to have a nurse in your family, that's a great choice. i think it's also wise to have someone who is kind of objective so when they read your health care objective, they will implement what they want for yourself. they boant bthey won't be imposr wishes upon you. things are taking place in the manner that you wish. >> : i think in particular on advanced health care directives how you want the process to go. it's often a good time to talk to the person who you want to execute that portion about what your desires are. because i think sometimes it's helpful for people because you know, when people have to make a

decision about your health outcomes whether, i think it's often a very weighty thing to put on someone. and because of that, i think it's really important to have clear communications and really have a conversation with people before the time comes so they really know that you meant what you said and they really have a clear idea of it. because i think, you know, especially because it's such an emotional thing, it's often a very hard topic. i've heard that advice as well. >> : that's very good advice, absolutely. it's enough of a burden at that stage when they are feeling depressed and vulnerable. if they are absolutely sure what you put on your health care directive is what you want it makes them feel strong in a medical setting. >> : there was a question where someone asked if there was anything they should be aware of

when transferring property to family members. whether it mattered or not if the transfer happened before or after death and what were the tax implications one way or another. that's a big question. i'm going to try to answer a bill part of it and maybe you can follow-up with some of the tax implications as well. >> : this is something that i really want to make sure we spend time on here. i have heard from a number of different people who come to my office on a couple of occasions. we've heard from a lot of family members that say, i'm go to go transfer my property to make sure they don't get reassessed. i want them to not have a very high property tax burden as a result of it. i just want people to know that in terms of an exclusion, there is currently an exclusion where are you able to pass on your property and savings to a child if you fill out a form.

that's something for people to know. there are restrictions associated with it but i just want you to know that it doesn't matter if you actually transfer it when you are alive or if it happens after your death. if your primary home is pass frg you to your child, that entire amount is protected with your prop 13 value if you fill the parent to child exclusion. that works both ways. the parent can pass it to the children or the children can pass it to the parent as well. there's a program available if your child predecreases you a grandparent can pass on the prop 13 from their primary residence to their grand children. that's is not reversible. in both of those instances it doesn't really matter whether

it's happening before or after someone passes away. i wanted to spend a little time on this because we've heard we've had some seniors come in and said i did this where i passed on and legally gave my property to my child because i wanted to help them with this tax issue sm now they are kicking me out of the home. i thought they were going to keep me in the home and i would have a place to live. now i'm in this bad situation. i want people to be aware if what you're hoping to avoid is this rei reis reassessment. as long as the laws don't change. it's true if you pass away after

or before. what protections do you have for the assets. when you own the home you have complete control on how you want to use that asset. whether you pass it or sell it. once you pass it on, they own that property and can do whatever they want with it. i want to put that out there for folks so you do know that. i wonder if you want to add to any of this in terms of taxation impacts. >> : yes. in the same vain associated to another reason to not transfer title to children while you're alive and would want to control the rest of your life would be-as a lawyer, i need to present this. let's say you even put your child on as a joint tenant. let's say that child purchases the minimum auto insurance policy and gets into a wreck where the damages are more than

the limits of that policy. if the insurance company or the defend in a case like that wanted to come against your child's personal assets, your home would be subject to that claim. let's your child and you put your child on a deed either solely or with you gets a divorce, even though that was separate property because you gifted it to that child, you're going to have to spend money and have some very stressful months if not years where they're going to discuss if that really truly was separate property and not community property in that divorce. there's really not a good reason to put your child on a deed prematurely. the second big reason as far as taxes go, if something is conveyed as death rather than during life, you get the market

value as of the date of death when they are determining any capital gains thereafter if it's bought or sold. you don't get that benefit while child is alive. if the transfer occurs at death, the basis of that property is the fair market value at death. that could be a heumg difference in what you would potentially pay. >> : that's actually a really great point. clarification. let's say someone wants to transfer the property while they are still alive to say their child. is the basis for capital gains the price at which they purchase the property or is it at the transfer point? >> : it would be-if they transfer the property to the child, it would be at the time of-they inherent the basis of parent at that point.

yes, the parent may have done some capital improvements that may increase that base number, it could be a huge difference than having the position of having the fair market value at death. parents sometimes own homes for forty years that's a huge difns in the badifference in the bay . >> : if the person who ends up inherenting the property decides they want to sell that property at some point in time, you would be subject to capital gains tax. basically they are saying what is the gain that you made on this particular property and we're going to tax you a serp portion. icertainportion. if you are seeing a transfer occur during a lifetime, the basis in which they are calculating that profit essentially and you're going to be taxed on is based on what

your parent actually bought that house for. if it gets transferred upon a death, let's say it happened in january 2020 for example, what happen ss is under the federal w they reset that basis, that differential in which they are going to calculate on the data transfer. if it happened to be a million dollars at that time, they reset it to a million dollars for the base ace. basis. if you sell it the next day for a million dollars. there's no gap, you wouldn't pay much in terms of federal gains taxes. that's what she is getting at as far as resetting the capital gains if you were to sell the property at a future point. did i describe that correct?ly? >> : you did. >> : great. the next question that we have from folks has to do with making

sure that their children inherent as little debt as possible when they die. are there some tips and thoughts about how people can put things in order so that does happen? >> : essentially unless your child signed something individually assuming your debt. that child would not have personal liability on death of a parent when that parent passes. if the child is executory or trustee of a trust and there are deaths of the estate of the person who passed away, the first duty of that individual is to pay off the debts of the eft kate beforestate before making y

distribution. that child will not be personally libel for the death of a parent unless they sign something themselves obligating them to pay that debt. >> : got it. that's good to know. the other question that came in was putting their property into trust. to quickly recap, if i put my property into trust do i incur a reassessment. how do i keep my property ownership anonymous. if i own a property with my husband and we create a trust and continue to the own the property the same way, typically that would not trigger a reassessment because there was no change in ownership. the ratio disont chang doesn't e people don't change. are they the same people who are oafning it anowning it and are t in the same proportion.

how to keep your property ownership a non mouse. onownership a anonymous. the recorder function is an entity that maintains all public records when it comes to deeds and sales and purchases of property. that's really important because if we didn't have a credible source of information about all ownership information, you couldn't sell or verify that anyone owned anything. it's important that we have a clear chain of ownership. so when someone sells something they have the legal right to sell that thing to you. can i keep my ownership anonymous, unfortunately those records are public records. when title companies do transactions for a home transaction, they typically are

looking up records in our office to make sure that chain of ownership is right and clean. there are times when people try to put property into legal entities and others, just know that that information is also potentially searchable in a state database. i think ultimately ownership information is supposed to be public records acceptable. people can find that information out. just information for folks to be aware of. she popped back on that's our queue that the question and answer session is going to start soon. i'm going to just end in it terms of our presubmitting questions to kendra. where can i find help to set up in the state plan quickly. >> : okay. several other things we discussed today can be done rather quickly. if you have accounts, if you

have retirement ats, if you hate insurance. designation forms, review that. if it doesn't have a contingent beneficiary, add one. you can also hold down a health care directive from your medical establishment. you can indicate preferences there and have it notarized. that can be done relatively quickly too. a transfer on death also can be properly executed and filed. doing a will or a trust may take a little more time. typically a couple of weeks. our office does them in that time line. it's usually two to three weeks

or so to meet with people, now of course, it's virtual to prepare drafts and adequately review and get around it signing them with our notary and witnesses. some of them you can do on your own. with a lawyer it's going to take two to three weeks. >> : just for folks to know she is a non-profit providing these services. we want to let people know they have help out there especially from our non-profit partners. i'm go to go turn it over to you. >> : we have so many questions coming in. we have a question from cony. two single person bought a house with 45% and 55% separately. after being married for two years they did not change the