these measures not be over, and we approve the 2021 member rules and cafeteria plan. on december 27, president trump signed into law hr 133. conrecess had already approved it back on december 21, but similar to the prior one, this one allows for government spending on coronavirus relief, including some relief that allows employers to provide additional flexibility for health [inaudible] on flexible screen accounts. employers are not required to

[inaudible] similar to last may, we presented, and you approved, we allowed employees to make changes to f.s.a.s here in the plan year, and those changes revoke a new election or they make a new election or they increase or decrease an election, and this is from the

prospective basis [inaudible] and what we're currently going through now, so this is good because of the fact that people may or may not be able to have tenants there given the current status of the pandemic. the second change would be to extend the [inaudible] age of [inaudible] dependents. currently, you cannot [inaudible] so this act is specifically for the plan year specifically 2020, if a member was enrolled, and they had a

dependent who was age 13, and they moved to age 14, they would be able to claim those expenses from their 2021 plan. so what i'm trying to make sure that's clear here is the law does not allow to move up the age for the 2021 and therefore the 2020. third, which is one of the biggest ones for us because we've not done it before, and that's to allow carryover from our dependent care f.s.a.s balances 2020 to pay expenses during the 2021 plan year. so these are for members who may have had $2500 or $5,000 of deduction over the year, maybe they didn't use $2,000, and they would allow them to carry that amount over and apply that

to the 2021 plan year. so this is an addendum, if approved, we would attach it to our website where where currently how's our rules, and these are the changes that we're proposing at this time. if we -- we will be looking into further data and see if there are any possible changes that we can make in 2021, but it's a little early in the year to make financial determinants [inaudible]. just one final reminder that the employer is not obligated to provide unlimited election changes, and that's why we say one. people will need to keep that in mind so they're not enrolling, changing their

minds, and then reenrolling later in the year. so that concludes my presentation on the addendum, and i'd be happy to answer any questions that you have. >> thank you very much, mitchell. i'd like to open it up for questions, comments, clarifications from the board commissioners. i don't see any raised hands, so speak up if you have any questions regarding any of the recommendations, including the recommendation not to allow a carryover, i guess, from the previous year. okay -- go ahead. >> i move that we approve the recommendations as presented in the addendum. >> i'll second your motion,

commissioner scott, if i could have a motion to just comment. >> again, you've asked for comments out of turn. it's been moved and seconded, so now, we'll open it up for questions or clarifications from the board members. clare, did you have a comment? >> yes. i'd like to make a comment based on members who lost a significant amount of money because they were unable to use that carryover amount. i think it will help a number of members with regard to the possibility that maybe they won't lose as much money or any money if the carryover is

there. and the opportunity to do this just one is very generous because usually, there's no opportunity unless they've made a mistake on their open enrolment, so i think that that actually might help another group of our members, as well, so i applaud these changes, and i'm very happy that we've considered doing them, especially the carryovers, so thank you very much. it's a good presentation, mitchell. thank you for this, the explanation. >> thank you. >> so clare, to be clear, am i hearing an amendment to the position from you? >> no, i'm strongly supporting these. the revision for carryover is a very good one, and i think it will help some of our members because some members have not had very good counseling or an

explanation of the benefit and have made a number of errors that have cost them significantly over the years. i mean, i can remember one appeal that was for $10,000 or $15,000 because the member had not received the appropriate counseling with regard to what the benefit meant and lost a significant amount of money, so this opportunity to carryover was very important, and i was just speaking in favor of the motion. >> and president follansbee, the revision is to permit the carryover. >> ah, thank you for the clarification because i thought i heard just the opposite. >> yeah. i thought i thought that's what you heard, and i just want to be clear, that is permitting the unused carryover amounts. >> yeah, great. thank you very much. any other questions or clarifications or comments from the -- from the board members?

again, thank you for clarifying my misunderstanding. hearing none, we'll go ahead and open this up to public comment. >> clerk: thank you, president follansbee. public comment will be made available for each item on this agenda. each speaker will be allowed to comment three minutes in length. all public comments are to be made concerning the agenda item that is being presented. as a reminder, a caller may ask questions of the policy body or individual members, but there is no obligation to answer or engage in dialogue with the caller. when i call your name, you are encouraged to state your name clearly, but you have the option to remain anonymous. when your time is up, you will be unmuted, and the moderator will move up the next caller. opportunities to speak during the public comment period are available via phone by dialing

415-655-0001. again, 415-655-0001, entering access code 146-015-9295. again, 146-015-9295, then pressing pound and pound again. you will enter the line as an attendee on the line. press star, three to enter public comment. callers, if you've dialed in and you wish to speak on this agenda item specifically, please remember to dial star, three to enter the public comment queue, when the system indicates you have been unmuted, this is your time to speak. please wait until the system indicates you have been unmuted to begin speaking. the moderator will now announce

if there are any callers in the queue. >> operator: madam secretary, we have nine callers on the line and zero callers in the queue. a reminder, you must press star, three to enter the public comment queue. we will wait five more seconds and then close public comment for this agenda item. board secretary, there are still no callers in the public comment queue at this time. >> clerk: thank you, moderator. hearing no further callers, public comment is now closed. >> thank you very much. i'd like to go ahead and entertain a vote now on all three recommendations to approve the january 2021 end of the plan year sfhss section 125 cafeteria plan. all in favor, please signify by saying aye. any opposed?

thank you. it passes unanimously. go ahead and call item number 12, then. >> clerk: thank you, president follansbee. agenda item number 12, reports and updates from contracted health plan representatives, discussion item. >> and again, i can't see hands of everybody, so i can see some, so if they would like to speak, please indicator speak up, thank you very much. shan, did you want to speak? >> yes, thank you very much. this is sharon [inaudible] with delta dental, national account manager. thank you for allowing the opportunity to address a caller's comments regarding

clients leaving service. five of the six dentists the member sought dental treatment from were and continue to be delta dental network providers. the member did seek treatment from 2015 through 2019 from a nonparticipating provider, and thus claims were processed as out of network. we are working with aonto provide the sfhss executive team more in-depth network reports. at this time, delta dental would like to assure the board and the sfhss enrolled memory bherz that our network provides 99% access in total to dentists, and you can rest assured that our network remains stable with little disruption. i would also like to take this opportunity to formally introduce miriam, who will be your national account manager

going forward. i have appreciated and valued the opportunity to work with the executive team, support staff, the board, and aon over the past three years and know you will be in good hands moving forward with miriam. thank you. >> thank you very much, and thank you for your timely responses to issues that have come up over your term as a representative to the health services board. i appreciate it very much. any other comments from plan representatives? >> is miriam on the call? is she here for us to meet? >> commissioner zvanski, i am seeing miriam on the line. i will elevate her in just a

moment. welcome. >> good afternoon. thank you, holly. this is miriam [inaudible] from delta dental, and i want to thank you, and i look forward to working with everyone. i was hoping to get video -- let me -- maybe i can -- which is coming through, yes. here we are. >> great. thank you very much, miriam, and welcome on board. >> thank you. >> are there any other comments from plan representatives under agenda item number 12? >> i'm sorry, through the chair, may i just say, to back up your comment, commissioner

follansbee, that we really appreciated all of the assistance that sharon has given us over the years, and i especially appreciated sitting behind all of you reps, and i always admired your hair. it's absolutely gorgeous, but i just wanted to say thank you for all of your representation for delta. you've been a wonderful representative to our board. thank you so much, and good luck with whatever your future plans are. >> thank you very much, clare. i really appreciate that. >> i just want a clarification on your report. it was about a -- something about a member -- was a member talking about in network or out-of-network people? >> the member, as you recall, called in last month, and they stated that they were concerned with in as well as out of network providers.

what we found in looking at the member's specific history is they were actually seeking services the majority of the time from in-network providers. there was only one dentist that they continued from 2015 through 2019 that was out of network or a nonparticipating delta dental provider, that they continued to seek services from, so we wanted to clarify for the board that, indeed, for this particular member's case, the majority of the dentists were in network, and our network continues to be strong. >> that was -- it was an e-mail we received about -- i think it was about dentists leaving the network because they were so poorly reimbursed, and so that

must be a different -- but that came up, too, i thought, at the meeting somehow. >> and it did, and that is what we are providing further in-depth network reports to the sfhss executive team as well as aon, and i believe that -- and abbie is going to jump in here, so abbie. >> you know what? i think we're maybe mixing up a couple of cases here, and i know we've teased them apart. i think what sharon -- you know, i have to go back and look at some of this more closely, commissioner breslin, to tease it apart, but we are meeting with the team on this larger issue, you know, of understanding the changes that may or may not be occurring within the delta world and really looking at it in a very geographically focused way. >> okay. very good. >> mm-hmm.

>> again, any other comments from colleagues? this is up for discussion and comment. >> clerk: president follansbee, we'll move to public comment, if that's okay. >> yes, that's what i was requesting. >> clerk: okay. okay. public comment will be available for each item on this agenda. each speaker will be allowed three minutes to comment in length unless the board president deems new public comment time limits during the meeting. all public comments are to be made concerning the agenda item that is being presented. as a reminder, al caller may ask questions of the policy board or individual members, but there is no equipment to engage with the caller. when your three minutes have ended, i'll thank you for your

comments, and you will be placed back on mute, and we will elevate the next caller. both sfgovtv and cable channel 26 are streaming the numbers across the screen. public comment is available via phone by dialing 415-655-0001. again, 415-655-0001, and entering access coat 146-015-9295. again, 146-015-9295, and pressing pound and pound again. to enter public comment, press star, three. after the paws, callers, if you've dialed in and wish to speak on the agenda item specifically, please remember to dial star, three now to be added to the comment queue. when the system message reads your line has been unmuted, this is your time to speak. for those already on hold, please continue to wait until the message indicates you have been unmuted.

when i welcome you on the call, you're encouraged to state your name clearly. the moderator will now notify us if there are any public callers in the comment queue. >> operator: board secretary, we have three callers on the line and zero commenters in the queue. a reminder, you must press star, three to enter the queue for this agenda item. we will wait five more seconds and then close public comment for this agenda item. board secretary, there's still no commenters in the public comment queue at this time. >> clerk: thank you, moderator. hearing no public comment, public comment is now closed. >> thank you, and we'll now move to agenda item 13. >> clerk: thank you, president follansbee. agenda item number 13, opportunity for the public to comment on matters within the board's jurisdiction,

discussion item. thank you. public comment will be available for each item on this agenda. each speaker will be allowed three minutes in length to comment unless the board president deems new public comment time limits during the public meeting. all public comments are to be made on the agenda item that's being presented. as a reminder, the caller may ask questions of the policy board or individual member but there's no requirement toen daj the caller. when -- to engage the caller. both channel 26 and sfgovtv.org are streaming the comment number across the screen. 415-655-0001. again, 415-655-0001. entering access code

146-015-9295. again, 146-015-9295, pressing pound, and pound again. you will then enter the line as an attendee on the line. callers dialled in and wish to speak on this agenda item specifically, please remember to dial star, three now to enter the public comment queue. when the system indicates you have been unmuted, this is your time to speak. when i welcome you on the call, you're encouraged to state your name clearly. the moderate skbror will now notify us if there are any callers in the public comment queue. >> operator: board secretary, we have three callers in the phone line. zero callers have entered the public comment queue at this time. a reminder to all callers on the line, you must dial star, three now to enter the public

comment queue. we will wait five more seconds and then close public comment for this agenda item. board secretary, there's still no callers on the public comment line at this time. >> clerk: thank you, moderator. hearing no public comment, public comment is now closed. >> thank you. i'd like to move onto agenda item 14. this is a discussion item, as well. >> thank you, president follansbee. item 14, opportunity to place items within the board's jurisdiction on future agendas, discussion item. the public comment will be available for each item on this agenda. each speaker will be allowed three minutes to comment in length unless the board president deems the public comment time limits during the board meeting. as a reminder, al caller may ask questions of the policy body or individual members, but

there's no obligation to engage with the caller. when your three minutes have ended, i'll thank you for your comments, place you back on mute, and the moderator will unmute the next caller. both channel 26 and sfgovtv are streaming the numbers across the screen. opportunities to speak in public comment are available by dialing 415-655-0001, entering the access code 146-015-9592, and pressing pound and pound again. before we begin public comment, we will take a 30-second break to allow callers to process the information on the screen. after the pause, if you wish to comment on the agenda item specifically, please remember to dial star, three to enter

the queue. when the system indicates your line has been unmuted, this is your time to speak. for those already on hold, please continue to wait until the system indicates you have been unmuted. the moderator will now tell us if there's any callers in the public comment queue. >> operator: and the access code, the last four digits are 9295. >> clerk: correct. yes, if i misspoke, you are correct, yeah. >> operator: thank you, and sorry. >> clerk: no, thank you. >> operator: board secretary, we have three callers on the phone line. zero callers have entered the public comment queue at this time. a reminder to callers on the line, you must dial star, three, if you want to enter public comment on this specifically agenda item. we will wait five more seconds and then close public comment for this agenda item. board secretary, there are still no callers in the public

comment queue at this time. >> clerk: thank you, moderator. hearing no further callers, public comment is closed. >> thank you. item 14 is now closed. before we adjourn, i'd like to thank letitia, our moderator, who does a great job in moderating these board meetings, and a thank you to our great board secretary, holly. i want to thank both of you for your incredible work. with that, we'd like to adjourn honoring george kruger, a former health service board member for his many, many years of contribution to the health of active and retired employees of the various agencies that the health service agency

represents. again. thank you very much. >> it was an outdoor stadium for track and field, motorcycle and auto and rugby and cricket located in golden gate park, home to professional football, lacross and soccer. adjacent to the indoor arena. built in the 1920s. the san francisco park commission accepted a $100,000 gift from the estate to build a memorial in honor of pioneers in the area. the city and county of san francisco contributed an additional $200,000 and the

stadium was built in a year. in the 1930s it was home to several colleges such as usf, santa clara and st. mary's for competition and sporting. in 1946 it became home to the san francisco 49ers where they played nearly 25 years. the stayed de yam sat 60,000 fans. many caught game the rooftops and houses. the niners played the last game against the dallas cowboys january 3, 1971 before moving to candlestick park. the stadium hosted other events before demolition in 1989. it suffered damages from the earthquake. it was reconstructed to seat 10,000 fans with an all weather track, soccer field and scoreboards. it hosts many northern california football championship games. local high schools sacred heart

and mission high school used the field for home games. the rivalry football games are sometimes played here. today it is a huge free standing element, similar to the original featuring tall pink columns at the entrance. the field is surrounded by the track and used by high school and college football and soccer. it is open for public use as well. [gavel] >> chairman: good morning, everyone, this meeting will come to order. this is the january 13th, 2020, budget and finance committee meeting. i'm mat haney, your new chair of the budget and finance committee. and i'm joined by

supervisor gordon mar. our clerk is ms. linda wong. and i would like to thank leo from sfgov tv. >> due to the covid-19 emergency, the board supervisors and committee room are closed. however, members will be participating via the internet. committee members will attend the meeting from video conference and participate in the meeting to the same extent as if they are physically present. public comments will be available. both sfgov tv.org.

comments can be made available by calling 415-655-0001, the meeting i.d. 1467117285. then press pound twice. when connected, you will hear the meeting discussion, and you will be in listening mode only. when an item of comes up, star three to be added to the speaker line. please call from a quiet location and please turn down your radio or television. [inaudible] >> finally,s items acted upon today are expected to appear on the board of supervisors' agenda on january 26th, unless

otherwise stated. >> chairman: thank you, madam clerk. we have a very full budget and finance committee agenda, and so thanks, everyone for being brief with your presentations. and with that, madam clerk, can you call items one through three together. >> yes. item number one, resolution providing for the issuance of not to exceed (indiscernable) general obligation funds, the quick safety and emergency fund. items two: resolution authorizing the issuance and sale not to exceed $85 million as a principle amount on a taxable of city and council earthquake safety and emergency response for 2020, and 2021a and

related documents. and item number three, ordinance appropriating $85 million for the earthquake safety and emergency response obligation respond, for the department of public department of publicworks (indi) for upgrade, improvement, and seismic fitting, for the response facilities, as well as improvement to the emergency firefighting wellness system. members of the public who wish to provide public comment on these items should call 415-655-0001, meeting i.d. 1467117285, then press pound twice, and dial star 3to speak. please wait until the system indicates you have been unmuted and you may

begin your comments. >> chairman: thank you, madam clerk. we have some participants here, and i apologies if i mispronounce your name. we have charles jaf fetti, and charles duras from public works to property on these items. >> good morning, thank you, chair haney, and congratulations to you and other appointed to budget and finance. thank you for hearing these items this morning. we're here to request a positive recommendation for the following three items: resolution authorizing the recently passed $628.5 million bond, and the firstish issuance in an amount not to exceed $85 million, and an ordinance that would

appropriate the proceeds of that first issuance of bonds. we're hoping to move forward through the board and post the sale and close in february of 2021. next slide, please. just a little bit of background. in march of 2020, the city's voters approved proposition "b," which authorizing $628.5 million for earthquake safety, and bonds, and the bonds would to provide upgrade of the firefighter's water, and replacement of the firefighter training facility currently located on treasure island, and seismic safety and operation improvements to the city police department and facilities, and upgrading or replacement of critical city-owned disaster response cities, and expansion of the 9-1-1

emergency call center. this first issuance is in an amount not to exceed $85 million to sort of start work on the first set of projects, and charles from the department of public works will go into more detail about the projects that are going to be funded from this first issuance. these are the sources and uses we expect: we're expecting fair amount of $$81.43 million in this first issuance, of which 79.6 will fund the projects, and the rest will be for associated costs of delivering the bonds. next slide, please. based on our good-faith estimate from our municipal advisors, we're projected an interest of 3.11%, and that would create $26.1 million over the term of the bonds, which we anticipate to be 20to the 25 years.

so the total cost of remay of the bonds will be so, for exa $600,000 assessed home would have an annual property tax of $10.90. currently the certified value of the city for fiscal year '21is $301 billion, and that is a debt capacity of 3% which translate to $9.04 billion. if we add the proposed bonds to our currently outstanding debt, it would be $$2.58 billion. so you can see on the slide that translates to .86%, which is well within

the 3% debt limit that we have. also, we have a capital planning constraint, at the fiscal year 2006 rate, and according to our analysis, if we issue these bonds, we're still going to be able to maintain the fiscal year 2006 tax rate. and so with that, i'm going to turn it over to charles feggarus to go into more details about the projects to be funded in this issuance. >> good morning, chair haney and supervisors. allow me just a brief moment here to explain a few of the components. this easter 2020 is the third easter bond program to speak to the matter of safety and emergency

response. in that regard, consistent participants in this program have been police, fire, and p.u.c., in their role as operator and manager of the emergency firefighting water system. there are two additional components that i'll speak to, as well. the emergency firefighting water system is a continuation of the improvement and enhancement expansion of our historic auxiliary water supply system. as you know, that system was installed in 1913, and was in what was then the established and emerging san francisco, which is to say not very present on the west side of the city. and so this third, in the series of bonds, is seeking to address that topic, that need, which is better coverage in the western zone of the city. we will also be addressing additional needs on the eastern side.

but the majority of the funds will continue to shore up some of the gaps, if you will, of coverage on the west side. the neighborhood fire stations and support service facilities is, like i said, a continuation of the previous easter. our interest is to continue to provide for facilities and infrastructure that aid and abet the mission of our first responder firefighters in the delivery of their services both day in and day out, as well as would be expected after the big one, the next major earthquake in san francisco. the principle project within this particular component is a replacement of the firefighting training facility, which, as you know, must vacant the treasure island by 2026, in fact. and so the urgency of a replacement facility is upon us. the district fire stations and support facilities is another of the continuing components of the easter bond programs. in this particular 2020 bond program, we will be

seeking to remediate or otherwise replace facilities that are failing or near or expected to fail in the event of a major earthquake. chief among these is the engel site station and the terabel station. engelside is a replacement project. terabel will be a repair and strengthening project. both are intended to ensure the safety of those facilities and the continuation of service provided by those two locations. we will also be addressing the derelict facility at the farms training at the lake merced site, that is literally falling down over people's heads. so in that respect, it requires a replacement facility to ensure the safety of all who work and train at that location. jumping to the disaster response facilities, that

will be, in short, a renovation and expansion of the kisarc pavilion in golden gate park. it is a really ideal venue for post-disaster recovery relief response, whether as interim shelter or as command center, or as a place at which people can be fed, if they're without that, in a sense, opportunity. it is going to serve a myriad of potential purposes in response to a post-disaster recovery. and the 9-1-1 call center is, of course, a project i'm sure all of you are well-acquainted with. we need to better improve upon the capacity and capabilities of the 9-1-1 call center at the 1011 turk facility, our emergency operation center. so this project will be -- actually, the project that will occur fastest, if you will, and it is an

interior alteration and expansion, and so in that respect, it is a lot more actionable to deliver upon sooner than not. next slide, please. slide six. and so in this slide here, we depict the sum that are we requesting in this bond, the $85 million, and for each of the bond components. next slide, please. number seven. so over the course of the next three years, as you can see from the cash flow we're depicting, we will be acting on the 9-1-1 center as soon as we actually can. it is much more actionable to deliver sooner than not. we expect a completion of that project by next year. the other project components or bond

components, rather, are being deliberated upon over the course of the first year and subsequently. we are expecting that there will be second bond sale that will be able to respond more completely to the emergency firefighting water system. we've asked for a sum of money sufficient to initiate some of that planning. that will address that west and east-side projects. it is a more modest sum, but it will be a much larger sum in the subsequent bond sale. next slide, please. slide number eight. again, across the spectrum of projects under each of those components, we will launch those as soon as we receive our bond proceeds. and we will set about executing upon them with all due haste. that said, major construction projects take anywhere from three to five years, depending on their complexity and other elements of, you know,

project delivery. we would expect most all of our projects under this bond to be completed by 2026, depending, of course, on the size and complexity. the larger ones take longer, of course, than the less large, if you will. so in that regard, next slide, please. in project delivery, we are always confronting challenges and risks. i'm very happy to say that in all past e.s.r. bond projects, none have been derailed or negatively affected by the circumstances that we often are forced to confront that are unexpected or undesired, if you will. especially in regards to unforeseen conditions, which oftentimes we were unable to anticipate, but we must address them forthwith.

our fire training facility (indiscernable) the city is working towards acquiring a site, which it has not yet done. i can't offer you a current status of that negotiaton, but it is, as i mentioned, very important towards exiting the treasure island site by 2026. and not unique to public works projects, but to most capitol projects in this city, we are dealing with the related items of covid-19. i'm happy to see we have not been as buffeted by covid-19 as we might have imagined in march of 2020, given the great unknowns of what covid, in a sense, would present. we do have, though, issues of occasional occurrence of worker illness at the site, or even in the terminal, if you will.

but we have, by virtue of very sound practices and protocols, defined by the health director, been able to blunt the impact of covid on our construction sites and our locations adjacent to construction. hopefully that will continue. i do see a great deal resolved in all of the workforce that is in service to these projects, by extension to the city, in the seriousness in which they take these importance of these protocols and procedures to safeguard their workers, first and foremost, and also allow the work to continued at pace. with that, i thank you for the opportunity this morning. >> chairman: thank you so much for those presentations. quickly, i have a quick question, and then i'll open it up to my colleagues before we move to d.l. a..

for the fire training facility, i know you said we don't have yet a site secured. how do the land costs for that work? is the amount that is put into this bond solely to build a facility, but the land costs associated with actually acquiring it is handled separately? >> thank you for that question, supervisor haney. the cost of opposition of the property would be funded by the bond, as well as the facility itself. as we do not yet have complete certainty regarding the acquisition of the prospective site, there is no current ask for funds in this first bond for any land acquisition costs. we would hope and expect that would occur in the next bond sale, which would likely occur some time next year, when we have identified, or

secured, i should say, the certainty for the acquisition of the site. >> chairman: great. thank you. i'm sure my colleagues have questions or comments, for many things important to the district. supervisor saffia. >> thank you, charles, for your presentation. i just had a couple of questions. i see the initial allocation to the engelside station and taravel station, and particularly the fact that the engelside is going to be completely rebuilt. can you talk a little about the schedule for that and what this initial $11 million is going to go towards. the big chunk of it is the $66 million. >> the overall project budget, as it currently

stands, is about $74 million to demolish and replace the facility. the engelside station is not unique insofar as it represents a good deal of the lack of functional adequate spaces among all stations, quite candidly. it is not the worst in this case, probably one of the better ones. but the fact is it is distinct in regards to its seismic rating. we have seismic rating one, two, three, four. one being the best and four being the worst. engelside is a four. and some parts of taravel is a four. engelside station is the largest among the projects we're discussing in this bond component. it will take approximately three years to get to construction. that three-year period is the period during which we plan, disciple, and design and t

the recwisit approvals. >> do you expect the project to begin -- >> to begin construction in '23. it takes about a couple of years, at least. there is a certain process and procedure to collect all of the approvals, and it requires a proponent of time across the two-year time span. i'm very optimistic we can work through all of the channels efficiently and quickly. we expect the construction to last about two years. a whole new project usually runs about a 24-month duration. we're looking at a

completion of the project sometime in late '25. >> and i did speak with director affin to set up a particular meeting on this particular project, because there is a significant amount of community use out of the facility as well. so we would like to have a clear idea of the design, what the plan is going to be when it is shut down, and where the officers are going to go. i just wanted to know what -- ie initial $11 million is to set the planning design and the pre-development work and the remainder is for the construction of the project? >> correct. to set it in motion so we could get good momentum going forward. and the process of engaging the community for a project of this significance cannot be understated. we look forward to working with you closely to establish the basis that we will perform that outreach and involvement

from the community. >> thank you. one other question: is there anyone here from the fire department? i know that you've gone through the entire presentation, but is there anyone here from the fire department? >> i do not see in my scroll of the folks present, i don't see anyone from the fire department. >> one of the other things we talked about in the bond is there were areas in the west side of san francisco that were not getting the firefighter water system infrastructure actual capital investment, but there is going to be a plan, a host tender program, and it doesn't sound like that is discussed in this initial bond. so i was going to ask someone, on the record, if they would talk about that and how it complements the work they're doing for the

emergency firefighter water system. so we can follow up on that. i don't have any other questions, mr. chair. >> chairman: thank you. supervisor mar? >> thank you, chair haney, and thank you to mr. trebbetti for the presentations and the good work from the controller's office and d.p.w. on this incredibly important project on moving forward with the easter bond. i did have a few more general questions, and, again, this may be reflective that this is my first budget committee meeting, and i'm really looking forward to getting into the weeds a little more on a lot of these important appropriation budget items, including geo bonds. i have a couple of questions. how is the overall amount of this first issuance of

$85 million determined? the $85 million out of the first issuance of the total of $628 million of the 2020 -- that the 2020 easter bond authorized. so how is that determined? >> thank you, supervisor mar, for the question. the way we size most of the bond issuances -- this is the first issuance, so we have to work with all of the other departments that are managing the bond projects. we ask that they come up with a very detailed expenditure plan, and we vet the expenditure plan very carefully to make sure that it is a realistic plan, that they can spend the money that they think they can need. we will make sure the projects are ready for

funding because the last thing we want to do is encourage that and issue bonds and then have the money sit there, and the city is paying interest and the taxpayers are paying debt service on the bonds and they're not ready to move forward and spend the money. we have a pretty thorough process to make sure that the projects are ready to go. based on that, we identified about $79.6 million of project funding that can be spent in the next three years, and especially for the tax exempt projects, and the regulations requiring spending within a certain time period in order to meet tax exemption requirements. we put a lot of scrutiny on the projects themselves to make sure it is a reasonable expenditure plan. and so these first bondish bon

issuances, we start from zero, and we have a vetted by a municipal advisor, who provides an estimate. they run cash flows with an assumed interest rate and various costs of issuance, and layer that on. and we have also added a buffer, in case the market dynamics require us to resize the issuance that allows us a little bit of flexibility. so we're not expecting to issue the full $85 million we're asking for. based on our current estimates, it looks like we're anticipating $81.4 million from this first issuance, and the balance of the $85 million will roll back into what we can use in subsequent issuances. only until the last bond issuance of the series, we usually ask for a little bit of flexibility, and in the last issuance, it is

tied by the full authorization amount of the balance that is available. >> thank you for that explanation. i want to make sure that i understand that $85 million, it looks like it might have been a total of $79 million that really came from working with the key departments, d.d.c. and d.p.w., and rec and park, in determining which projects are allowable under the easter bond that are really ready to move forward. and is there any considerations about the amount of the first issuance? are there other considerations, i mean more general ones, besides just the fact that these -- that this is the cost of the project that the department said we're ready to move forward on? >> there can be sometimes -- oftentimes we

try to pair bond programs to sell them at once. if it is a small amount, we may not -- each transaction has transaction costs that, you know, range 5,000 to 700,000 dollars for bond counsel, and there could be another 100,000 dollars for bond writing. if it was only a $5 million or $10 million, we may consider if we want to pair it with another bond authorization in order to minimize the transaction costs. we try to make sure there is enough need to justify going forward with the transaction, and certainly $80 million is a significant sum that can justify the need for a transaction. so we start with the project needs, though, first, and build the other

transaction costs on top of that. >> great. thank you. i just have more of a question -- a little more specific question around one of the funding items within this, and that's the emergency firefighting water system, and really starting to expand that to cover neighborhoods and really half of the city that has been unprotected from thur important that firefightingstructure. i'm happy to see that included in this first bond issuance. obviously, my district is totally -- it is completely unprotected right now. and i think in a good part of safai's district as well. so it is important to our constituents. i was just wondering what the construction schedule

is for that, both for the portion of the efws that's included in this first bond issuance, as well as a complete project that is included in the entire easter 2020 bond. [inaudible] >> i don't know if there is anybody here who can answer that question. if not, i can just follow up afterwards? >> this is david parkerson, and i'm project manager with s.f. d.u. c., and the earthquake safety emergency response and the emergency firefighting water system expenditures. this $20 million is intended to cover two different items. one is fire boat manifolds, which allow them to inject water from the bay into the piping of the auxiliary water supply system.

there are two locations. one at city pier 33.5, and another at fort mason. masonpiers one and two. the other part would be actually the first steps in the portable emergency firefighting water system for sunset and richmond areas that you described. we actually have an opportunity right now to construct the first 36-inch diameter sections of pipe, first on 19th avenue, and secondly on visenti from 19th to 25th avenue. so this should happen in the next several months, up to a year or so, and some of the funding i expect will cover some of

those construction costs. we have another amount of money from another capital program that we'll also be able to use. so we'll immediately be able to start the construction of the pipeline for the portable emergency firefighting water system. more broadly, this first phase that there is funding for through this easter 2020 bond, our plan is it should build the western half of the portable emergency firefighting water system. so i expect the first construction contracts for the rest of that work to go out in 2023, and cross-examination to go on -- construction to go on for the next three or so years. we have some construction work that is a little farther behind in the design stage, but we'll also be making pump station improvements so we can have the higher

pressures that are needed during an emergency. >> thank you very much. the pump station you referred to, that is lake merced? >> there is work that we need to do at lake merced, but we're also planning to establish another pumping station for pressurization at central pump station, just south of stern grove, and -- yeah, so the planning is under way for that. and the advantages here is now we'll have a multitude of water sources by using central pump stations, and we'll actually gain more water sources that we can use for fire suppression, as opposed to doing everything at lake merced. we will still be able to use the water in lake merced as well as the traditional water mains. >> thank you so much, mr. meyerson, for that. i don't have any other questions.

>> chairman: thank you, supervisor mar. seeing no more questions, is there a b.l.a. report on this item? >> yes. good morning, chair haney, and members of the committee. items one through three, resolutions approving the issuance of $638 million in 2020 easter bonds, the sale of those bonds in the appropriation, ordinance appropriateing $85 million in (indiscernable) and a little more information on the project that would be funded in the cable, in the appendix on page nine. the sale of the bonds is consistent with city debt policy, and this was summarized by mr. travetti in his summarizing.

i'm available for any questions. >> chairman: are there any questions? seeing none, are there any members of the public who wish to speak on this item? >> operations is checking to see if there are any callers in the cue. operation, please let us know if there are any callers in the cue. if you have not already done so, please press star 3. are there any callers who wish to comment on items number one, two, three? >> hello, i'm based in san francisco (indiscernable). and established an air quality monitoring

program, serving all tenants. we support the $1.9 million appropriation for the chinatown businesses and the community. this program will provide much-needed relief for s.r.o. residents, and reduce communal kitchen use. it provides critical support for communities that are isolated during the covid surge -- >> excuse me. i believe you're commenting on item number 11, and that is the continued reserve item. we're on items numbers one, two, three. please feel free to call back later during the meeting with item number 11 is called. next speaker, please?

are there any other speakers on the line? >> eileen broker, i'm speaking on my own behalf. speaking in support, if amended, regarding the easter bond sales. based on presentations at the capital planning committee, a portion of the emergency firefighting water system, also known as awas, funds is designated to be used for implementation of a drinking water option, also known as critical water option.

this is strongly opposed by the firefighters who believe drinking water should not be used for fighting catastrophic fires. instead, the drinking water option funds could be used to expand the existing dedicated, high-pressure, high-volume waters of the awad awad in thedistricts. of the total $628 million (indiscernable) of the first bond issuance is $85 (indiscernable) designating the approximately $20 million in the first issuance for the expanded expansion of dedicated awad as part of the combined city project, and that would be a good start. currently the 19th avenue combined city

project is designed to upgrade existing awad pipes and hydrants from urban areas, but no expand it to holloway, even though a number of major development projects are proposed in the vicinity. thank you. >> thank you for your comments. are there any other speakers on the line? >> no more callers are in the cue. >> chairman: thank you to folks who called in. and thank you to all of the presenters. i don't see anymore comments or questions from my colleagues. i do want to thank everyone, and this concludes covering issues of huge and essential importance to our city. we are all very supportive of the bond, and it is great to see it move forward and to see some clear timelines on when

these projects will start and be completed. with that, i'm going to move to send this item to the full board with a positive recommendation. if, madam clerk, please call the roll on that motion. [roll call] >> could you please close public comment for items one through three. >> public comment is closed. and i move to the items to the forward with a positive recommendation. [roll call] >> clerk: three yeas. >> chairman: thank you. madam clerk, please call the next item. >> item four is an resolution to authorize the department of public health 1.9 million from the mental health services

for participation in a program entitled "early psychosis intervention" for the period of september 1st, 2020, to august 31st 2024. members who wish to provide public comment should call 415-655-0001, meeting i.d. 1467117285. and if you have not already done so, please dial star 3. please wait until the system indicates you have been unmuted and you may begin your comments. >> chairman: thank you, madam clerk. we have audrianna zoo, charlie mayor tumy, and charlie chung, who are here to present on this item. >> good morning, supervisor haney and supervisor mar and congratulations on your butch and finance

comments. i've from the department of public health. and thank you for allowing us to request an approval for the area psychosis intervention program. these funds are not for a new program, but additional funds to be used for any existing program (indiscernable) which has been addressing early psychosis (indiscernable) interventions at the community level. i'm going to pass this over now to my colleague charlie, and adrianna, so they can share how these grants are helping with the early psychosis program. >> hi, everyone. we did have a power point that the clerk's office was going to share. i just wanted to see if that was still taking place. >> thank you. >> excellent. so, yes, adrianna will be

presenting on this power point, and we're happy to answer any questions you may have afterwards. thank you. >> good morning, chair haney and members of the committee. let's get right on to it. so next slide. about the early psychosis intervention expansion, what exactly is being expanded? the san francisco department of public health, in partnership with kelton institute implemented the first intervention services in california back in 2008. until then, a few existing services were provided in academic setings, via participation and research studies and access to these specialized services, where, as you can imagine, they were extremely limited. over the years the early psychosis services

implemented in san francisco through our partnership have received national recognition, including the national council for behavior health, inspiring service awards in 2014, and it was bridging science to service. our model is also the second most implemented in the state, which positioned us to receive this grant and deliver these outcomes with confidence. so san francisco is one of the five counties awarded this grant for early psychosis intervention plus, which is ab1315, approved in october of 2017. the intention is to support a statewide development and expansion of coordinated specialty care model, which is evidence based and integrated early psychosis intervention model.

there is a process also in place at the federal level in order to track these outcomes and determine the feasibility of these services and further accessibility to the wider community for everyone who needs it. this grant will leverage the behavioral health services transition, with a system of cares current investment and increase access to services. next slide, please. we have a challenge. so in 2019, 22% of mental health medical clients in in san francisco were diagnosed, and this portion, this 22% of our current population with psychosis had a disproportionately high cost of services.

which means 32% of our total medi-cal claims. according to the mental health services oversight and accountability services, there is a projected incidence of 8,600 cases of early psychosis in california, and an estimated 35,000 cases in the next four years, which is the period covered by this grant. next slide, please. and that indicates the more reasons for us to be prepared to deliver these services, make them more accessible, and also measure the outcomes of these services. the ultimate goal really is to make sure that all individuals presenting with early psychosis -- typically these are individuals between the ages of 16 through 24, 25,

who are presenting with the very early signs of a psychotic illness, like schizophrenia, which most of the time carries stigma and the idea that it is a lifetime impairment. we know through early intervention, that future is exactly like that. so this is a very important message for the system of care, for families, and for individuals that without access to specialized services, we may lose this window of opportunity to having a larger impact in the mental health system by actually preventing folks from transitioning into the adult system of care or developing chronic and persistent mental illness. so the needs of the san francisco community, we have 47% of clients with

psychosis, utilizing the services. which is a mean number of 3.8, versus 9.1 without psychosis. so clients with psychosis use twice as many services than other clients with other diagnosis, like major depression, generalized anxiety disorders, and twice as many clients with psychosis utilize crisis services. so typically individuals are -- they may be in trouble with the law, or they may be in trouble at home, or erratic behaviors, and it causes them to be as risk for their own safety or the safety of others. and typically all these

situations can be better managed when the community is better prepared to handle them. and when the individual and the family have also access to resources to prevent crisis situations from happening. so next slide, please. so the service gap that the grant will address -- so we will be adding 25 s.d.g., seven new contract staff. this is a combination of new staff as well as adding s.d.e.s to current part-time staff and making them full-time. we propose to expand from serving 40 clients to serving 60 clients annually, and this is only for clients who have been diagnosed with early psychosis. the impact of these

services is much larger. as an example, for someone to receive a diagnosis of an early psychosis disorder, they have to go through a screening process of rigorous diagnostic assessment that is provided with evidence-based assessment tools. we also have an intense community psycho education campaign, so the numbers are much bigger than the 60 clients that are directly served by this program annually. so typically in this four-year period, we would be screening approximately 370 clients. we would be providing direct community outreach to approximately 800 to 1,000 individuals. we will also be adding new bilingual and bi-cultural staff, and plan to expand

and incorporate the component for substance use, assessment, and treatment. which comes from the technical systems and training that is a part of it, and this training and technical assistance will be provided by the state, as well as the outcome evaluation component of these services. we will be increasing our youth and family peer involvement. we currently have limited fdes in these positions, and so we're increasing to full-time fdes. and we'll be expanding our community education and outreach. and we are already planning how to deliver this in the time of the pandemic. and, also, use the emerging telehealth and telepsychology approaches, and that includes developing interventions to promote client

engagement. next slide, please. so these services, they are delivered with a certain level of rigor and stability to the model. so these are integrated services that include case management, specialized individual and group psychotherapy, and support with employment and education. that is part of the treatment and empowering treatment success, and ongoing peer support, and planning and service delivery, including our program steering committees, where decisions are made about including how we are doing and what we need to do to do a better job, and ongoing data collection, evaluation, ability assessment, quality improvement, and this is in direct connection with the training and technical

assistance component of thisgrant. and we have very vigorous and described way for medication support, coordination with primary care, and family engagement. next slide, please. so for further questions about the services or about the grant, feel free to rich out to kelly chong, the acting director of the system of care. and if there are questions, we are ready for them. thank you. >> chairman: thank you so much for that presentation and for your work. colleagues, are there any questions about this item? seeing none, is there a b.l.a. report on this

item? >> yes, chair haney, this resolution approves it's acceptance of approximately $2 million state grant for the early psychosis intervention program. we summarize the sources of funds of $6.3 million in funds on page 14 of our report, and we recommend approval of the resolution. >> chairman: thank you so much. seeing no other colleagues on the roster for questions or comments, can we please open this up to see if there are members of the public who would like to speak on this item. >> yes, mr. chair. ms. mendoza, please tell us about any callers that are ready. if you have not already done so, please dial star 3, and please wait until the system indicates you have been unmuted. please let us know if there are any callers who wish to comment on item

number four? [please stand by]

>> clerk: member of the public who wish to provide comment on

this item should call 415-655-0001 and enter the meeting i.d. 146-711-7285. press pound, and pound again. to request to speak, press star, three and wait until the system indicates you have been unmuted to begin your comments. >> chair haney: thank you, madam clerk. >> thank you, chair haney, for allowing me to present on this topic. as you know, the m.t.a. has been affected by the covid-19 crisis. in this year, we're projecting that our transit fare revenues will come in approximately $105

million low budgeted. so what we're bringing to you today is one tool to help us manage those losses through cost savings in our currently issued debt. so the sfmta currently has a credit rating that is highly desirable to investors. we are rated by s&p and moody's with investor rated debt. one of the drivers of this transaction is market rates are currently at historic lows, and so the m.t.a. can procure savings that would go back to our operating budget in f.y. 21 and f.y. 22. so the near term savings up to 23 would be up to $43 million and that's a combination of our release of our debt service fund, which i'll go into on the next slide as well as principal and interest releases for debt

that we would be paying in the current fiscal year. so that's the short-term, and in the long-term, we're looking at $21 million in net present-value savings through 2024, so that's over the life of the bond. what we're proposing here is to refinance the debt at a lower cost than we are currently incurring, and also, we will not be expending the term of the bond, so you can think about this as refinancing your house so you can secure a lower interest rate and monthly savings. right now, we're projecting $62.8 million deficit in f.y. 22, and the last point is to simply say if market conditions change such that this funding is no longer beneficial to the

m.t.a., we will not move ahead. but given current rates and where the market is today, this is currently an attractive option for the agency. this next slide shows the sfmta's outstanding debt. so you'll see we have series 2012, 13, 14, and 17. the scope of this transaction only includes 2012 through 2014. in working with our financial advisors, we've determined that refunding 2017 bonds would not result in cost savings for the agency, and so we're setting that aside potentially for another day. as you'll see here, there's that come-4 dsrf on the right side, and those are parts of the novel structure that we're releasing where those will be released as a part of the refunding transaction and will comeback to the m.t.a. for our use in f.y. 21 and f.y. 22.

currently, we will not need to fund a debt service reserve as a part of this funding transaction, and the reason for that is we are not seeing a term of interest rates that have been received by issuers whether or not they have received that service reserve. we are reserving the right to include that service reserve, but at this point, it does not appear we are going to need to do that. this next slide shows a summary of the refunding, so outstanding part that we'd be refunding is $106 million. the not to exceed amount includes some buffer in case we need to include the service reserves and in the case of any fluctuation in the market. you'll see our approach in the market showing the goal and fiscal impacts. we're refinancing from an aggregate of 5% currently to

what our current estimate is, 2.29. so if you think about this, again, in terms of refinancing your home, going from a 5% rate to a 2.29% rate is pretty good, and so that's what's driving the refinancing today. the way that we're structuring this is amortization would begin in 2024, and interest payments would not be due until that time. the reason for that is we're structuring this transaction so that it opens up the most flexibility in the sfmta's budget in f.y. 21 and f.y. 22 to provide us with the ability to deal with the immediate impacts of covid-19 on our revenues. so again, the purpose here is to increase the agency's flexibility and to deal with our immediate needs. you'll see the savings through

2024 are $40 million, and the near-term cash flow that we're estimating through 2023 is $43 million, so those are significant savings that will help to buffet the impacts of our revenue losses and will support our operations as well as help us to prevent layoffs in the next two fiscal years. this slide provides the detail of the structure of the transaction. you'll see this is reserve fund releases accounts for $14 million of the funds that would be available through the results of this transaction. we also have debt service that is due in f.y. 21, which you'll see it represented in the net change in cash flow line that will be made available to the agency as a part of this transaction. and so the key point here is that in order to secure that

$9.6 million in savings in 21, we need to complete this transaction by march 1, so we're currently on track to do that, and assuming we're approved today, we would be in good shape. you'll see that the net present value savings to refunding pars is currently estimated at 13.1%, and the city's debt refunding policy states that that amount must be at least 3%, so we're expected to pass that substantially. so you'll see, again, the purpose here is to structure the transaction to provide us with the most relief in the immediate term to deal with the impacts of covid. so that brings us to today's request and next steps, and what this would be doing is moving forward the item to the

board of supervisors to direct the director of transportation at m.t.a. to approve and execute the bonds, up to $185 million, and again, we're expecting pricing and closing to occur by the end of february to meet that march 1 deadline that we are targeting. and as an aside, we will be bringing a new money proposal to the board and the committee in the coming weeks, and that would be a separate transaction that we'd be issuing new debt and would require new debt service by the agency, so just want to put that plug in here. so that concludes the presentation, and i'd be happy to answer any questions. >> chair haney: thank you. supervisor mar? >> supervisor mar: thank you, chair haney. you know, i just had one quick question so i'm understanding -- trying to understand this better.

you mentioned that this refunding of revenue bonds -- or through the issuance of these new bonds that would be used to refund previous revenue bonds. we're only focused on the 2012 to 2014 revenue bonds and not the 2017 series, so i just was interested in understanding why the 2017 bond -- series bond not included, it looks like it's by far the largest amount on the list. >> yes, absolutely. thank you, supervisor mar, for the question. so yeah, you correctly observed that it is to date a larger bond issuance, and the reason it's not cost effective is because of something called

negative arbitrage. what it means it basically to do this transaction, we have maturities -- excuse me. so this is an advanced refunding, so for many of the series, we're not yet at the ten-year par call threshold, which means that we still need to pay principal and interest on those bonds that have not met the ten-year par call while we're refinancing everything after that ten-year threshold. so for the debt service that's due on everything before that ten-year par call, it goes into an escrow account, and it is held until the ten years is up, which means that that money is just sitting there, and the agency is not making any interest. so we're fundamentally losing money because it's not working for us. so that's called negative

arbitrage, and the financial report was issued so recently that it's greater than any money we would receive as a part of the negative funding transaction. >> supervisor mar: yeah, thank you for that. and actually, one other question. so if i understand the basic concept of this, it's not been similar to somebody refinancing -- it's been similar to somebody refinancing their home to take advantage of lower interest rates, but oftentimes when people refinance their home to take advantage of the lower interest rates, they'll increase the principal amount to have access to larger amounts of cash. i was wondering if this was the plan, as well or, like, we increasing the added amount of the bond? >> thank you for the question. so as a part of this, we will

not be taking out additional debt service as a part of this transaction, but as i mentioned, we will be bringing a new money proposal to the committee in, i think, two weeks is when we're currently scheduled or hoping to be scheduled, and that proposal would increase the city's debt service -- or, excuse me, the m.t.a.s debt service, but that is separate from the transaction that you're seeing today. >> supervisor mar: great, thank you. >> chair haney: thank you, again, for the presentation. is there a b.l.a. report on this item? i believe there is. >> yes. chair haney, members of the committee, item 5 approved the issuance of $185 million in bonds to refund outstanding m.t.a. revenue bonds that were issued between 2012 and 2014

that was described in detail in the presentation. we summarized the sources and uses of those bonds on page 19 of our report, and the estimated debt service savings, again, is in the presentation over 20-year term of the bonds is $22 million. we note in our report that this is an obligation of m.t.a. and is funded by m.t.a. revenues. it is not an obligation of the city's general fund, and because of that and because of the savings, we recommend approval of the proposed resolution. >> chair haney: great. i don't see any questions or comments for the b.l.a. is there any public comment on this item? >> clerk: mr. chair, yes, let me check with miss mendoza. miss mendoza, please let us know if there are callers that are ready. for those who have not already done so, please press star, three to be entered into the

queue. if you have already done so, please wait until the system indicates you are unmuted to begin your comments. miss mendoza, is there anyone waiting in the queue? >> operator: there are no callers in the queue. >> chair haney: thank you very much.

supervisor safai? >> -- before the new federal stimulus that just got passed, we were already facing $144 million in revenue loss, so this in fiscal year 22, we are looking at about 148, so this extra debt service will help go to close the general deficit that we have just so that we could preserve jobs, avoid layoffs, and then preserve the existing service that we have. >> supervisor safai: so this is just about maintaining existing service? >> yeah, that's right. >> supervisor safai: okay. i don't have any further questions, mr. chair. >> chair haney: thank you. that was a great question.

i know that there are some amendments to this item that need to be made in committee that are technical in nature, and i believe deputy city attorney pearson are going to speak to those. >> good morning, chair haney and members of the board. i have several amendments that will address the ceqa findings. they start on page 5, line 22, where line 22 would be amended to read, on january 12, 2021, the planning department made the following findings, so replacing the board with the planning department. on the next page, page 6, starting on-line 5, it would say, well, on-line 4, it is not

a project as defined by ceqa and the ceqa guidelines, which contained in board of supervisors file number, blank, and this board concurs in this determination. the remainor of the sentence would be struck out, the language reading, and that the sfmta shall consult with the city attorney as to necessary ceqa findings and determinations with respect to any project prior to the expenditure of bond proceeds, so this really is to reflect it was the planning department that made the ceqa findings. >> chair haney: great, so it's pretty straightforward. i want to move to accept the amendments on this item. can we have a roll call vote on the amendments. >> clerk: yes. on the amendments -- [roll call]

>> clerk: there are three ayes. >> chair haney: and now, seeing no further questions or comments, again, i want to thank the folks with sfmta for their work here. certainly, any sort of opportunity that we have to bring more funds that can be used right now to maintain those essential services and close that budget deficit is really critical, and i appreciate everybody's work to make that happen here. i want to move this item to the full board with a positive recommendation, and if we can please have a roll call on that. >> clerk: as amended? >> chair haney: as amended. >> clerk: yes, on the motion -- [roll call] >> clerk: there are three ayes. >> chair haney: thank you, and the item moved to the full board as amended with a positive recommendation, and thank you all, again.

madam clerk, will you please call item 6? >> clerk: yes. i'd 6, resolution approving and authorizing the director of the mayor's office of housing and community development to execute an amended and restated loan agreement with bridge-potrero community associates, l.l.c., to increase the loan amount to 22.7 million for a total amount not to exceed 29.14 million to finance the second phase of infrastructure improvements and housing development relates to the revitalization and master development of up to 1700 units of replacement public housing, affordable housing, and market rate housing. member of the public who wish to make public comment, call 415-655-0001 and then enter the

meeting code 146-711-7285. press pound, and pound again, and enter star, three if you wish to provide public comments. >> good morning, chair haney and members, today, we are going to talk about the phase two potrero phase two. we've got a quick presentation on hope s.f. that would be helpful for the new committee members. jason lu will be presenting that. >> thank you. i want to thank you for your

continued help for the hope s.f. initiative. if we could please proceed to page three, thank you. awesome. thanks. just as a quick refresher, hope s.f. is a public-private partnership created by mayor newsom in 2005 to help san francisco's oldest and most neglected housing sites. hope s.f. represents a 20-year human and capital program.

i do want to emphasize the three stages of reparations, acknowledging, reconciling, and healing because we as a city are very good at acknowledging reparations and systemic racism against native and people of color. and that's why we're here today. so next slide, please. next slide. thank you so much. the harmful impact of past and ongoing institutional racism can still be seen in the physical infrastructure of the potrero site, which you can sort of see to the left of your screen here. currently links do not connect to the current street grid. chronic disinvestment by the city over many decades and many

generations has resulted in obsolete aging infrastructure with hundreds of millions in deferred maintenance costs, so we will need to create new streets and transportation improvement, new utility infrastructure and new open spaces. so at this point, i'd like to turn it back to my colleague, sarah, to go into it in more detail. if you could go to the next slide, please. >> thank you, jason, for that presentation. supervisors, as mentioned in the previous presentation by jason, potrero hope s.f. is a long multiphase commitment by the city. under the hope s.f. 2017 development agreement, the hope s.f. designers are responsible for designing and constructing and implementing the affordable housing on behalf of the city. there are five total phases over 38 phases in potrero which consists mostly of relocation

of residents. in the phasing that's shown, the blue housing block represents the market rate developments, and the yellow represents the affordable developments. outlined in red is our current phase and the request before you today, phase two. next slide, please. in phase one, which is the green box showing on your screen, is an adjacent piece of land that is identified towards the completion of the development agreement and the entitlement process in 2016. due to extremely low vacancy levels on-site and in order to have no residents moved from their homes, [inaudible] upon completion of block x in 2019, residents within the phase two footprint were able to move into 54 of the new units at

block x [inaudible]. next slide, please. thank you. after residents were relocated, and in order to secure the area, demoand abatement were completed in june 2019. the request is before you today is the project sponsor is expected to start construction on block b, the next affordable development, within the phase two footprint, in august of this year. construction of the infrastructure improvements is set to start in february and will be substantially completed in august in time for block b to start. next slide, please. total improvement casts are expected to be -- costs are expected to be about $29 million provided by the city. the developer and mohcd have been successful in applying to the state for grants, totaling $13.5 million. here with me today, again, is the project sponsor, by

colleagues are also present, and we will be glad to answer any questions you may have about this request, and on behalf of mohcd and the developer, we would thank you for your consideration and ask for your continued support on this project. >> chair haney: thank you. colleagues, are there any questions or comments? i don't see any. is there a b.l.a. report on this item? >> yes. chair haney, members of the committee, item number 6 approves an amended and restated loan agreement between the mayor's office of housing and the developer, bridge housing, for the potrero hope s.f. phase two infrastructure development. so the restated loan increases the loan amount from 6.4 million to 29.4 million. that's an increase of 22.7 million. we summarized the sources and uses of those loan funds over

pages 26 through 28 of our report. as noted, there is potential state grants to offset some of the loan amounts, for a net loan amount of $15 million if the state grants comes through. we recommend approval because the phase two is consistent with prior board action. >> chair haney: okay. thank you so much. not seeing any questions or comments from the committee. are there any members of the public who want to speak on this item in. >> clerk: miss mendoza, please check to see if there are any callers that are ready. for those of you who have not already done so, please press star, three to be entered into the queue. if you have already done so, please wait until the system indicated you have been unmuted. >> operator: there are no callers in the queue. >> chair haney: public comment is now closed. colleagues, any final thoughts,

questions, or comments? vice chair safai? >> supervisor safai: thank you, chair haney. i just want to say that this has been years in the making. started my career at the housing authority, came back to be a commissioner, worked with mayor newsom when we came up with this initiative to reimagine public housing, so this is a -- this is a big step forward. i know that it's taken some time to continue to move. i'm hoping that this will provide the much needed momentum to keep these projects moving because i know that a number of projects around the see, a number of affordable -- city, a number of affordable housing projects that are being built will be some of the relocation sites for some of these residents, and i think that's very important because they all are working in coordination to ensure that

we're not only keeping the public housing that's been there for generations, but also adding to the public housing stock in the space in mixed-income communities which, in many ways, is a much more healthy outcome for all involved, so i really appreciate the hard work on staff, and i don't know if there's anyone here from bridge today, but wanted to make sure, you know, that we're significantly increasing the loan amounts, and that they're putting all their effort and energy into moving this forward. i know they've had some staff turnover the last couple of years, so i want to see this this is really prioritized and moved in an aggressive manner. thank you, mr. chair. >> chair haney: thank you, vice chair safai. we've already closed public comment. i want to move this to the full

board with a positive recommendation. madam clerk, if you could please call the roll. >> clerk: yes. on the motion -- [roll call] >> clerk: there are three ayes. >> chair haney: thank you, and again, thank you so much for your work and continued progress on this project. it will move to the full board with a positive recommendation. madam clerk, can you please call items 7 through 10 together? >> clerk: yes. item 1, resolution declaring the intent of the city and county to reimburse certain expenditures from proceeds of future bonded indebtedness authorizing the director of the mayor's office of housing and community development to submit an application and related documents to the california debt limit allocation committee to permit the issuance of residential mortgage revenue

bonds in an aggregate principal amount not to exceed $40 million for 78 haight street. item number 9, resolution declaring the intent of the city to reimburse certain expenditures from prose of the future bonded indebtedness authorizing the director of the mohcd to submit an application and related documents to the cdlac to permit the issuance of residential mortgage revenue bonding in an aggregate principal amount not to exceed $75 million for 1151 fair fiction avenue and 112