i.d. 1871153493.>> chairwoman: s

monday, may 10th, 2021, i'm aaron peskin, joined by raphael mandelman and connie chan. our clerk is mr. victor young. mr. young, do you have any announcements? >> yes. due to the covid-19 health emergency, and to protect board members, city employees, and the public, the committee room and board of chamber room are closed. committee members will attend the meeting through video conference to the same extent as if they were physically present. we are streaming the

numbers across the stream. comments and opportunities to speak are available via phone -- one moment while we sort that out. is available by phone by calling 415-655-0001. the meeting i.d. 1871153493, and then press pound and pound again. when connected, you will hear the meeting discussions, but you'll be muted and in listening mode only. when your item of interest comes up, dial *3 to be added to the speaker line. best practices are to call from a quiet location and turn down your television or radio. alternatively, you may submit committee to me, and it will be forwarded to the supervisions and

included as part of the official file. that completes my official comments. item 1 is the motion appointing dean preston ending february 4th, 2022, to the (indiscernable). >> chairman: colleagues, i want to thank supervisor preston for his willingness to serve on a local formation body, that is chaired by supervisor chan. supervisor chan, is there anything you would like to say about this? >> thank you, chair peskin, for scheduling this, and i want to also thank supervisor preston for his willingness to join us and spending the time, but i look forward to seeing his leadership on the commission to help us especially with the items around public bank.

so thank you so much. >> chairman: thank you, supervisor chan. i don't believe that supervisor preston is present, and this is relatively proforma, done pursuant to a memorandum that the clerk of the board of supervisors sends out from time to time, determining if members of the board are interested in various bodies, ranging from the goldengate bridge board to the california association of counties to the local agency formation commission, amongst others, and supervisor preston indicated his interest. is there any public comment on this item number one? >> yes. members of the public who wish to provide public comment on this item should call 415-655-0001, and the meeting i.d. is i.d. 1871153493. then press pound and pound again. and then dial *3 to line

up to speak. a system prompt will indicate you have raised your hand, please wait until the system indicates you can speak. there are five listeners, but nobody lined up to speak. >> chairman: okay. public comment is closed. i would like to make a motion to send this item to the full board with recommendation. on that motion, a roll call, please. >> clerk: supervisor mandelman? >> yea. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin? >> aye. >> clerk: the motion passes. the next item, item 2 (indiscernable) for a term ending february 20th, 2024. i believe there is a request that this be sent out as a committee report.

>> chairman: that is correct. thank you, mr. young. ms. gandhi, feel free to turn your camera on. i want to start by thanking ms. gandhi for the not one, but two meetings that we've had, not in person, but virtually. and let me just start by saying that ms. gandhi is quite accomplished in her field. and i enjoyed our visit, and it was an opportunity for me to use my handful of phrases of terrible hindi language, but that is not what is before us today. what is before us is a motion pursuant to section 3.100 of the san francisco charter that relates to this appointment to the mighty retirement board of the city and county of san francisco that has an investment portfolio of many, many billions of dollars. and before we hear from

ms. gandhi, who you all colleagues have a little write-up about her, and you may have already interviewed you herself. her form 700s are in the package and available to the public. i just wanted to say those things for the record. but i want to put this into a little bit of context. obviously, this is a mayoral appointment, subject to section 3.100, which means that the board of supervisors can reject such an appointment within 30 days by a super majority of eight votes. and the last day that the board would have jurisdiction, sitting as a full board, would be tomorrow. hence the need to send this as a committee report. there has been a long-standing interest, arguably going back now a generation to the days when i was first elected

over 20 years ago. in having the san francisco retirement system divest from its investments in fossil fuels, and in the last almost decade that has been a very robust movement, championed by then supervisor john avelos, and it has been the subject of numerous resolutions by the board. as i told ms. gandhi, every appointee from the retirement board, supervisor safai, have been stal worth supporters of the investment from our fossil fuels portfolio, which is a very, very small part of the entire investment portfolio of the retirement system. that has been repeatedly met with resistance by staff.

it has repeatedly been met with resistance by the oversight body, to which ms. shruty has been appointed to, and which we are considering today. despite the fact -- and i say that acknowledging that the retirement board and its staff visit a fid fiduciary duty, and appropriately so. having said that, there have been a number of moral imperatives relative to investment over time. going back to the days of apartheid in south africa, where the retirement board, along with retirement systems across

the country, chose to divest with companies doing business with south africa. the same was true around the city's historic investments in the firearms industries, which the retirement system divested from. the same is true with tobacco, but has yet to be true for fossil fuels, despite the push from really remarkable coalitions of environmental activists. and in recent years, many retirement systems, academic retirement systems, like harvard, other cities and states, like new york, have been much more aggressive. san francisco's retirement system has been late to

that system. with that in mind, the board of supervisions passed on february 23rd of this year, a resolution urging the mayor to appoint an individual to the retirement system who had experience in divestiture, including divestiture in fossil fuels. i think that is what is before us today to consider. i have no question that ms. gandhi has the skills, the experience, and the background in the world of investment, and, indeed, her resume and her form 700s indicate that. i think the question before the board of supervisors today and tomorrow is relative to the unanimously passed resolution that we passed on february 23rd, that was co-sponsored by safai,

ronen, mandelman, and mar, and voted for unanimously by the board. with all of that in mind, i do want to say that both of the conversations that i've had with ms. gandhi have been productive in general, and in this specific regard, and with that, ms. gandhi, the floor is yours for as long as you would like it. >> first of all, thank you for the context and sharing that. and thank you forgiving methe opportunity to share my platforms. before i dive into that, i prepared a bit of my opening remarks to acquaint everyone who i am. i truthy gandhi. thank you for having me here. i'm a capital venturer.

my fund focuses on (indiscernable) companies across different verticals, such as compliance, governance, health, finance, security, and my portfolio companies have been acquired by companies like apple and others. before venture capital, i worked for ibm for a decade, working on many new patents, and also for the c.e.o. chairman at the time's office. i got my undergraduate degree on the east coast in computer science at meris college, and master's in computer science at columbia university. i have an m.b.a. university of chicago, school of business. chicago has produced many laurents in finance and economics.

and i won the (indiscernable) award for 2021. having shared my resume now, i want to give -- and, you know, given you qualifications, as i mentioned, i want to give you my qualifications necessary for this retirement board. and i will be honored to leverage my experience, knowledge, and network to serve for the role here. that is the points of me sharing my resume, just from the investment perspective. i know in february the board unanimously passed resolution for fossil fuel divestment. i want to mention that this goal is near and dear to my heart. with the recent drought, temperatures rising, we have something to do more aggressively to save our planet. with global temperatures rising every year, we have to act on a much shorter

timeline. we have to get to carbon neutral as soon as possible, and have a clear plan on how to get there in three to five years. the resolution also called on the mayor to appoint an expert in sales divestiture. i want to be clear i'm not that person, as you can see from my resume. but i will be a strong advocate for divestment. my expertise is helping companies set clear timelines, pushing them to meet those timelines. i want to bring transparency to our initiatives, to support a plan we were revisit regularly to track our progress towards these efforts. i think that san francisco employees and retirees are looking for more transparency, more visibility, into what the board and the retirement system are doing.

lastly, my work over the last two decades will support notity the not just the divestment, but assets that reflect our san francisco values. thank you for that, and thank you for your consideration. >> chairman: thank you, ms. gandhi, and i'll certainly turn it over to my colleagues on this panel. i think part of the rub, if you will -- and, by the way, in the last e.s.g. report, the retirement system indicated they would like to reach net carbon neutrality by 2050, which we found to be -- how should i say it nicely -- l. i think neutrality is a part of the issue, but the way the requirement system's staff and board has been treating this is that neutrality doesn't

mean divestment. it means investment in alternatives. we want investment in alternatives and divestment from the approximately 120 instruments that are in the fossil fuel portfolio that i think total a little more than a half billion dollars. really, a very small part of the entire portfolio. i think it is a couple of percent of -- >> 2% or less, yeah. >> chairman: there you go. okay. exactly. so i want to hear your thoughts about what neutrality means to you in your role on this body. >> actually, you bring up an excellent point, which i'm really good at, which is, you know, where does the money go once we do divestment. we should create a plan and make sure we stick to that plan. the part that i think alternate classes with high return in this

category are important. i want to just point to one of my recent investments i made in this category, in a company called "solution," which recently announced they're going carbon negative. even though i may not have the best hat on for something like this, it is definitely areas we're going to consider, where we focus our investment strategy, and what carbon neutrality really means, and not just neutrality, but more like carbon negative assets. i will still push for full divestment, i want to be clear on that, but pulling on my expertise, based on my experience and also people i know well in the industry, you know, we will get 200% divestment, but now also leverage all of these people into figuring out what is the best place for our money to be invested for highest amount of growth possible, but still considering the

social implications of our investments that we make. >> chairman: thank you, ms. gandhi. and yesterday, when we were talking -- and i really appreciate you're reaching out to me over the weekend -- you indicated that you had kind of searched high and low on what is publicly accessible on the internet really to a divestment plan, and we're having trouble finding. what do you think about that? >> that's an excellent point. i think we should bring more transparency because without being able to really understand what our goals are and publicly talking about them in a very clear fashion, i mean, in business that's what i do. we talk about what we're trying to achieve for the year, for the next few years, and then every board meeting we talk about where we are compared to those goals we set out as a company.

so similarly, i agree. it is hard to find this information. and it should not be. and we should be able to bring more transparency to the process. and i will try my best to be able to create some sort of a transparency as much as possible to this process so we can then go out and make it publicly available to what goals we're meeting, basically. and that's -- i think that's a fair concern, without me being on the other side, that's what i saw. >> chairman: right. and given the lack of a plan, or a transparent plan, what do you think is a reasonable timeframe, given the -- depending on how you want to count it -- one or two decades that the elected board of supervisors has been pushing the retirement system? what do you think is a reasonable amount of time for that plan to be publicly available? >> um, that's a good

question. i -- it's a very good question. i think something comes out in october, as you and i were chatting. but i think within the next year or two would be a good, reasonable timeframe for us to start talking about how we talk about 100% divestment. i also want to be clear that we're talking about two different types of as asset leases in here. there is ones we can divest in sooner, like stocks, just like you and i can just sell. we should be able to sell thinking through what -- how does that impact our returns. and then there is a long-term asset class. i think that's the piece -- so within the 2%, we have to figure out what is the long-term asset class we divested in, and we should have those kinds of numbers available and talk about -- so sooner, to your answer, than later

on the plan to start having transparent conversations around divestment from those asset classes. >> chairman: despite unanimously passed resolutions in 2013 and 2017 urging divestment, the more liquid class has not only not been divested in, as a matter of fact, the board increased its investment in oxidental petroleum, despite those unanimously passed resolutions. so it has been going in the wrong direction, not the right direction. although i agree with you that the less liquid class of assets requires more planning. as to the more liquid class of assets, what do you think the time would be? >> i would say, again, one, to two years is something, in my book, that we should target.

i'm on your side. but i want to push for this as past as possible. i think this realization came to me -- i mean for a while now, but last year my daughter was less than a year old. and i had to worry about the air she was breathing. and to me, that is not a concern any parent or anyone in the future generation should have. so i'm with you there. i think, for me, it is going in and doing the work. i'm a doer, and i want to make sure we come up with clear plans here to support everything worry talking about. but i understand your concern, that it has been talked about for a long time, and not addressed. so i want to go in and figure out why that is and then come up with even better timelines. but one to two years sounds very reasonable to me. >> chairman: thank you. i want to use this opportunity to thank the folks who i know are beleaguered and who have been at this and got the board 20 years ago to pass -- ae

there was such a sense of climate change and sea level rise, but they've stuck at it for 20 years. they were the wind at supervisor avelos' back and mine and many policy-makers. i want to thank sun rise bay area 350.org, and two ynsz. unions. local 21, as well as the mighty largest employees union for the city, the service employees international union, 10to 1, as well as the group defund the dakota access pipeline that i think just scored a major victory with this new president of the united states for their ongoing advocacy. and in addition to thanking them, as far as we're talking about transparency, ms. gandhi, have they reached out to you?

members of this committee have gotten a number of e-mails expressing their concerns or disappointment that you -- and you've been very candid about this, and i appreciate it -- don't have that experience in divestiture from fossil fuel portfolios or failing assets. have you reached out to them? have they reached out to you? and would you be willing to carry on an ongoing dialogue with them if you are retained on this body? >> who are we talking about? >> chairman: i'm talking about the advocates for divestment? >> is that a group? >> chairman: it's many groups. it's two major -- >> right. okay. >> chairman: -- employees' groups, the folks who have been advocating from the outside for this policy change. >> i'm sorry.

good point. i didn't realize if it was one group or not. i think we -- they haven't reached out, but i'd be happy to meet with them. and i think we should have a plan of someone to, you know, make sure -- actually, i don't know the inner workings of the staff on this, but someone should be in touch with these groups and updating them. and if it is not publicly available, which is what we should be pushing for anyway, so there is no one one-on-one conversations, but a more transparent one goal as an organization overall, or as the city overall. >> chairman: thank you for that. are there questions from committee members? supervisor mandelman, you're the author of any number of policies related

to reducing our carbon footprint. any questions from you, sir? >> i mean, i think that this appointment and the resolution we're looking at raises questions for me about an area where i'm, frankly, out of my depth. i think -- i do not understand why it takes 20 years to divest from fossil fuels. i'm hearing a commitment from this nominee to make this a major focus ofory of hertime on the board. although you might state that, actually. i think i need to spend a little more time understanding why this seems so hard for this

entity, and what other comparable retirement boards and funds have been able to do. i am sure that chair peskin is correct in that we are lagging, but i don't know what it looks like for those other entities to move more aggressively. and i don't know how many folks -- and i have no idea how many folks are out there, or if there are any folks out there, with an interest in serving on this board. it is called for in the title, but not in the resolve, you know, who have the concrete experience in doing this, that would ensure -- i would love to be having a conversation with this nominee about how it actually would work, and clearly she has some work to do to figure out how that would be. i'm inclined to accept a strong promise from her, if she is comfortable making it, that she is going to make this a top

priority and will be in regular contact with advocacy groups and will push for -- and this is what the resolution does call for -- will commit to working with colleagues, staff, and non-governmental stakeholders to develop a concrete plan, and just making it happen to (indiscernable) for the carbon neutrality. so i have lots of questions, but i'm not sure it is for this nominee. >> chairman: thank you. ms. gandhi, anything you would like to respond to? >> i think from an outsider, who is thinking about this, myself here, without being briefed, and all sorts of things from the internal workings so far, since i haven't attended anything just yet, i feel the same way.

how can something take 20 years and still not make progress. to me, i agree with your sentiment here. one of the things i would say is, to your point, supervisor mandelman, we should be looking at what the harvards of the worldsare doing, and have they accomplished it? not as a benchmark, but to figure out if they've accomplished it, and what is stopping us? i definitely agree with your remarks on that. i think we should, as an investment committee, discuss that and at least, as i said, bring transparency to why and what is happening and talk about it in at least every six months in a public way. so i'm with you there. and, yeah, i'm as baffled, so i'm not sure, and i don't want to point

fingers because i don't know what's really behind it to make this so long of a trajectory so far. but i am committed, you know, putting my efforts -- i don't know what you are looking for, but i am committed to putting my efforts into this and making this a priority, and implementing a plan. >> chairman: thank you. supervisor chan, anything you would like to add? >> um, thank you, chair peskin. i think it is rather more of a comment than as a question at this time. i just kind of wanted to say it's probably -- it is just interesting and i concur with vice chair mandelman that it is out of my depth as well in terms of understanding our divestment strategies and how to approach it.

however, i do want to understand for any appointee to be on this board, to move the entire board forward -- you know, what would the strategy be to change the direction that has already been in place for quite some time? perhaps, i guess it is a question to pose to try to understand -- it indicates that we see that that has been the pattern going against what the board of supervisors have urged unanimously. you, alone, as one appointee, what is your strategy to approach the situation to ensure that we are going to change the direction, so to speak? thank you. >> and that's a very good question. i mean, that is what, i would say, i am good at,

managing certain boards and the investments and otherwise. creating a plan, creating transparency, creating accountability on people and doing what they -- and doing what we promised and doing as they say, and not kind of paying lip service. i mean, if you call any of my companies, people that i've worked with for decades, they will -- you know, they will point to that quality of mine, which is to bring everyone on the board on the same page and making sure we're all moving in the direction that we've committed to. in this case, the commitment has happened, it is just taking really long. so we want to make sure -- that is kind of kind of why accountability is a very big part of it. i will do my best. and i will be acting on behalf of the employees

here and the money that, you know, we're governing and helping grow, to make sures it grows into the best possible assets, and in the best socially motivating san francisco values kind of investment that we all agree on. i hope that helps. >> chairman: i do want to say, obviously this is a very complicated field, and to supervisors mandelman and chan, while i don't claim to be a hedge fund manager, i do note that everybody from harvard, to the university of california to new york, have figured this out. so we could have figured it out when supervisor avelos passed his first measure in 2013. and the second measure in

2017. there is just recalcitrants on the part of staff. and if i may, not enough support from the board. and so, i mean, yes, it gets a little complicated relative to long-term investments that are locked up, and short-term investments that you want to sell without taking a big loss and all of the rest of it, but it ain't that complicated. i wanted to get that off of my chest. ms. gandhi? >> well, first of all, yeah. i think, as i mentioned, it would be great to call our colleagues and figure out what they did and what we haven't done. i think that should be the first order of business, if not. but if i may just kind of summarize some of my commitments, if you're open to it -- >> chairman: sure. >> okay. let me just start a little bit so we can all feel a little like i'm saying -- i'm saying the same things you're hopefully looking for in some ways.

let's see. i want to commit to pushing for an aggressive schedule for fossil fuels, to an effort to build a coalition on our board, to build out data and metrics, to build a case. i'm committed to holding our staff and the board accountable. we need to proactively daylight our fossil fuel divestments to a committee structure by asking tough questions, and reflecting those efforts in an annual report. we also need to hold our staff accountable to these divestment efforts and to ensure that the strategy doesn't just pay lip service, as i've been saying, to climate risk and so forth and has something more substantial around it. i'm committed to supporting staff wherever i can, particularly for the direct investments, which is my expertise. and i have actually invested in some companies in this category directly

as well. i'm committed to pushing for some social impact divestments, so we build towards climate solution investments, that means pushing for more research in that area. and, lastly, i'm committed to using my personal experience with folks of different, you know, pension funds, investment platforms, and my extensive business and financial network at places such as columbia, university of chicago, to present those opportunities to the fund. so we are moving in the right direction as we continue to think about divestment and start thinking about areas we should be investing in, as i mentioned, as far as our values are concerned, aligned with their values. i hope that is helpful to kind of summarize some of the things we talked about. >> chairman: very well received, at least by this supervisor. why don't we open this up

to public comment. mr. young, are there any members of the public here for item 2? >> clerk: members of the public who wish to provide public comment on this should call 415-655-0001 and then i.d. 1871153493. and then press pound and pound again. if you haven't already done so, please dial *3 to line up to speak. please wait until the system indicates you have been unmuted and you may begin your public comment. at this time, we have eight listeners and seven people in line to speak. >> chairman: first speaker, please. >> caller: hello, supervisors mandelman and peskin, as well as ms. chan. thank you for allowing me to speak. my name is johnny kotrin.

i'm a resident of direct 9, a past member of ipt local 21. i'm speaking to you to express concern that the current mayoral nominee for the retirement board, gandhi, does not meet the requirements. urging the mayor to appoint someone with direct experience in divestment in fossil fuels. i'm afraid we will continue to kick the can down the road without making any substantial action. to our supervisors who claim this is out of their depth to understand, i want to reiterate what supervisor peskin said: this is already being done across the country. just because neither you or i understand the (indiscernable), it does not mean it is impossible to find a future

divestment plan. based on the board's previous commitments, without something with direct experience towards divestment, we'll be in exacting the same place as we were 10 years ago. [inaudible] thanks for your time. >> chairman: thank you. next speaker, please. >> caller: hi, everyone. my name is alexander. i'm c.e.o. of mountain stream. and i want to talk to you as an investor, it is a software company that helps manufacturing and industrial companies comply with environment regulations. we help companies track requirements and measure their progress. when they're following all

of the rules we're helping them follow, they reduce pollution. in fact, one of the long-term provisions is to be a key piece of e.s.p. p. investments. the reports are very unstandardized, and they generally jerry pick pieces of data that makes them look good. without standards, it is hard to compare one company to another. i know you're talking about divesting in fossil fuels, and i imagine you'll go even farther than that. so transparency is going to be a key piece in making it possible for us to standardize these things. she took the time to dig in and understand the

regulatory landscape, and that was something more investors were, quite frankly, not willing to do. she stayed very involved over the past three-and-a-half years, sharing her advice and opinions when we needed help, and she prides herself in building a community of founders, and not just being an investor. i believe truthy would be a available voice on the board. >> chairman: thank you. next speaker, please. >> caller: hi, everyone, my name is sam bennett. truthy is on the board of my company. as you all know, making real progress in the world requires intense focus, the ability to think big while operating unlimited resources, ability to see a promising future where others don't, and not

letting anything stand in the way of getting there. as a board member, i can tell you that shurty is the right amount of hands on, and is highly responsible, and she knows how to create a plan and drive a team of people towards a shared goal. she helps us keep track of important milestones to make sure we see our company and the project to the next important phase of growth. she is highly respected in the technology community, where she has a broad network of subject experts to call in when needed, and she has been very generous bringing them into the fold here. she is a excellent capital investor, and she has a very unique perspective as an engineer. i think that is critically

important for anyone looking to make data-driven decisions, and she does that and uses data to also persuade others to make decisions with her. i've suggested to a number of company founders that they add shruty to their board, and i wholeheartedly make the same suggestion for this board. thank you for the opportunity to speak. >> chairman: thank you, next speaker. >> caller: hi there. i live in district 2, and i'm calling to support her appointment to the retirement board. i'm a fellow venture capitalist, and i have worked with her on a number of initiatives, and i found her to be one of the most astute bankers in the venture capital field. and what makes her unique and stand out is her

ability to actually overlap and overlay her intelligence with a strong sense of moral fortitude. and i feel like this position requires that. her investments span a number of areas, including technology, as well as next generation materials, as she mentioned. all of those investments, i think, will give her a really unique insight, and a differentiated insight in terms of how to rectify this position we're in in a very fast and thoughtful manner. i couldn't agree more that this is something we should prioritize and do in a timely fashion. 20 years is a long time to be waiting for action. i firmly believe that shruty is going to be a very, very strong advocate for making the change we need and will be a very

responsible member of the committee for all of these purposes. thank you. >> chairman: thank you. next speaker, please. >> caller: hello, thank you, chair peskin, and supervisors. my name is chad holtzman, i live in district 5, and am a senior policy analyst for 350 bay area, and i'm one of the founders of fossil free san francisco, which started trying to get the retirement board to move after the 2013 resolution efforts. thank you to supervisor peskin for caring this forward with the leadership. i wanted to say it was april 2013 when the board of supervisors passed the resolution calling for divestment. it was august 2013, when we started engaging with the board and meeting board members. over that time, they have lost a very substantial amount of money on those

investments. managers hold on to them as they lose value for the public, which is poor incentive structure. if they had invested in indexes fund at the time we told them, then they would have done better for the fund. as a member of the public who has attended the most meetings on this topic and someone who works with many other boards and commissions, i need to say that the culture at this agency and board is totally arrogant and necrotic. the board and the community asked for this. i'm not sure if ms. gan gandhi has watched these meetings. this appointment is one vote out of seven, so we need not just a supporter, but a leader, someone who can move a very stagnant board forward.

i think we really do need a storied expert in e.s.g. and fossil fuel divestment. we have only ever been talking about liquid public investments, not ventricula investment. [buzzer] >> chairman: your time has lapsed. thank you. i appreciate your testimony. >> caller: hi, this is jack fleck. i was very excited in 2013 and joined the efforts that was talked about. we met with pretty much all of the board members and tried to lobby every way we can. we started out by pointing out that this is an immoral thing, to be destroying the planet. if we were rats, would we invest in rat poison? and some of the members of

the board were, like, yes, as long as it was making money. i'm very encouraged by a lot of what you said. i especially like the fact that you have a daughter, that you care about her breathing the air, and we all suffered last year. and four years in a row we have had unhealthy air. and we're heading into another wildfire season, and we know we have to be solving climate change. it is a really high priority. we need somebody on the board -- and maybe you are that person -- who can whip them together because we're very frustrated. we have not strong leadership. we just need four votes. let's get rid of the fossil fuel, and certainly the equity has been going down in the value. not because anybody is divesting, but because they're becoming worthless. there was a great presentation at the board when a former f.c.c. member said that fossil coal is the canary in the

oil well. coal stocks became worthless, and the fossil fuel stocks are rapidly becoming worthless. so the sooner we get rid of them, the better we'll be. so thank you, everybody, for working on this. i look forward to meeting you. i have to say i'm a little nervous about university of chicago. we always complain about them being the neoliberals who make it impossible to solve things, like covid, because they think the market is going to solve everything. we think government has to do something about it. i hope you're the leader we're looking for. thank you, everybody. >> chairman: thank you, mr. fleck, and thank you for your service to the city and county. it was great overlapping with you for about a decade. next speaker, please. >> caller: yes. my name is david page. i worked for the city and

county for 27 years before retiring. i want to say a quick happy mother's day to ms. gandhi and all of the other mothers that are in the room. i spoke before your committee about the issue of how to integrate the urgency of e.s.g. matters into the fiduciary committee. i'm seeing very little progress in this regard. as the qualified and honorable ms. gandhi admits, she is not a leader with the e.s.g. issues, so i recommend that this committee vote to reject her appointment. i apologize about that, ms. gandhi, but i would like to recommend that we get a leading, strong

advocate of e.s.g. on the board to balance out some of the other members that were referred to by the previous speaker. supervisor peskin, you spoke about fossil fuels. i want to emphasize that the s.and g., in the e.s.g. are also important. let me give you some quick examples, where they have invested in fossil fuels. one is in china, one is in russia, and another is in saudi arabia. so regardless of how bad the pollution is by these companies and the product that they sell, there is also the social and good governance issues that are being neglected here. and that's another reason i was hoping we would get

a strong e.s.g. proponent on the board. san francisco could be, and should be, a worldwide leader in e.s.g., and not a lagger. finally, i wanted to say one thing about this climate catastrophe, atmospheric warming issue: people think about the matter as the future, but people die from air pollution every day. depending on which study you look at, it's maybe four million people a year, up to nine million people a year die from pollution currently. so we should be addressing this issue now and not thinking of something that is going to happen in 10 years or 100years. thank you very much. >> chairman: thank you. next speaker, please.

>> caller: good morning, chair peskin, members of the committee. my name is hernandez gill. i'm in the local 10 to 1, which represents many city workers, many of which are in the san francisco retirement system. they passed a resolution urging the retirement board to immediately cease any new investments in fossil fuel companies or in co-mingled assets, and divest within three to five years. [inaudible] such as renewable energy, clean technology, and sustainable communities. now in 2021, we find little progress has been made in this investment. this idea of a more critical climate emergency. we believe that any appointee to the retirement board must

understand the importance in divestment and commit their highest priority to this. the local 10 to 1 urges the board of supervisors to ensure that a suitable and committed candidate who is serious about fossil fuel divestment for the appointment to the retirement board. thank you for your time. >> chairman: thank you. next speaker. >> clerk: just before we go on, we have one more speaker on list to speak. if you have not already done so, please dial *3. for those already on hold, please continue to wait until the system indicates that you are unmuted. at this time, this will be our last caller. >> caller: hi, my name is austin. i called in today to listen to ms. gandhi speaker and her credentials. my alma mater just last

month announced they had completed their divestment for their retirement funds, and that really spurred me to listen in today. overall, i'm really satisfied with ms. gandhi's qualifications. she is an exceptionally articulate speaker, and i'm really happy to hear that we have a commitment of one to two years to be committed to divesting from our short-term investments, like stocks. generally speaking, i think she is qualified, and i really do hope that this board will move forward with her as i do believe this to be an urgent matter, and i see that we have a qualified candidate. >> chairman: thank you. are there any other members of the public for testimony on this item? >> clerk: i believe that completes our list of callers at this time. >> chairman: okay. so public comment is closed. and the matter is now in the hands of the committee.

colleagues, i, number one, want to thank ms. gandhi for her forthright and candid testimony and for her willingness to serve. i want to thank all of the members of the public for their testimony. and i would like to make a recommendation to you, colleagues mandelman and chan, which is that i think part of this effort and movement is elevating this issue in and around appointees to the board, in and around the resolutions that we have and will continue to pass, our direct interaction with members of the body. supervisor safai and i met with board member sansbury recently to continue pressing this effort. what i would like to do is have a robust conversation with our eight other colleagues tomorrow, with

ms. gandhi present. and to that end, i would like to make this suggestion of sending this item to the full board of supervisors without recommendation as a committee report, if that is acceptable to, colleagues, and we can continue this conversation that i know is of great interest to all of us as evidenced by the number of co-sponsors on the february 23rd resolution. if that is not objectionable, on that motion, mr. young, a roll call please. >> clerk: on the motion to refer this matter without recommendation at a committee report, supervisor mandelman? >> aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin? >> aye. >> clerk: the motion passes without objection. >> chairman: thank you. and, ms. gandhi, we will see you tomorrow, a little bit after 2:00 p.m.

next item, please. >> clerk: the next item -- item 3 is an ordinance amending the administrative code to create a now registry to promote participation by anchor businesses and city grants for small businesses and for commercial (indiscernable). >> chairman: this ordinance is brought to us by supervisor chan. supervisor, the floor is yours. >> thank you, chair peskin. i'm excited to move forward with this legislation to create a neighborhood anchor business registry. it is really, from my experience talking to merchants in the richmond area, that i recognize the need for this. what it is, is we have a lot of great legacy businesses in the richmond.

[please stand by] p.

we can really prioritize these small businesses. this is really the reason why it's moving forward. another part of this is i also wanted to talk about the fact that a lot of these challenges that are facing our small businesses at this moment is their leases and paying their rent. we know the commercial eviction moratorium is expiring on june 30th of this year.

it was actually extended thanks to the effort of supervisor peskin and supervisor preston along with state assembly member bill chain. so we know it's already been a challenge for them to stay put and pay their rent. it's a reason why this piece of legislation will also provide a free legal aid extending that program to help our small businesses negotiate their leases and eviction. so i would like to thank supervisor, my cosponsor supervisor haney, hillary ronen. dean preston and shammann

walton. and legal outreach for submitting the letters of support for this legislation. i do have some amendments that i am introducing today based on the feedback from office of small business which i see that ragina is here and small business commission and other stakeholders and advocates. if i may move forward with the amendments today, i'm just going to read it out loud for now if it's okay and in case you have any questions, i'm happy to open the floor for regina, sorry. director dick andrizzi. so the amendments that i am proposing today including the following limit the grant and

loans for neighborhood anchor businesses for those related to relief or those recovering from the covid-19 emergency. the reason why i do recognize we want to prioritize the covid-19 emergency funds to help these businesses, but we also want to make sure that there is enough for everybody especially the younger ones, younger business that helped them to continue to sustain moving sfard so another amendment is at cultural businesses in the area. to sign a sworn statement that they depo not have a pending complaint, a paid judgment or finding by a court or labor enforcement agency that they have violated a worker protection law. this reduces the office of

small business staff to administer the program. and this is something we haven't talked about enough is also working with the small businesses who need protection. doing the right thing and doing right by our workers and the other amendment is to allow the executive director of the office of small business to identify additional community based organizations so they can nominate small business who may not have connection to traditional business groups to also advance the city's racial equity and access. another thing is allow each merchant association or community based organization to nominate a maximum of ten small

businesses per year. this is again with the goal to make sure equity throughout everywhere in our neighborhood not just in richmond. obviously, i think richmond is the best, but here we are. and then another amendment is to give the office of small business more time to repair a report identifying all covid relief and eviction services available to anchor businesses and requiring them at new programs within 30 days of adopting eligibility for these programs. so, colleagues, the city attorney has confirmed that these amendments are substantiative. today, i will be asking for your support of these amendments, but i do understand we need to legislation to the next rules committee. i thank you for your time today in hearing us out.

we do have director dick andrizzi here from the office of small business able to to make sure this is as strong as ever. i want to remind you that this legislation was continued at the small business commission. which i intend to personally attend the commission meeting to have an open dialog with the commissioners. thank you, chair peskin. >> chairman: thank you, supervisor chan. before we open it up to public comment, i think your amendments are responsive to what we saw on the package to

the small business commission which obviously is your prerogative as supervisor to take those suggestions or not. i'm glad you guys have had a collective collaboration. i would like to be added as a cosponsor. i don't see any names on the roster, so why don't we go to public comment. >> clerk: there are no callers in cue queue. >> chairman: okay. public comment is closed and supervisor chan, would you like to make a motion to amend? are you on the chat? >> supervisor mandelman: i am, but you're not seeing it, are you? >> i have john c. we still have a problem houston. you've got like three hours into this computer and we've tested it this morning and it's still not working. but this will be the sub theme of the pandemic for this

chairperson. supervisor mandelman. >> supervisor mandelman: thank you, chair peskin. and i want to thank supervisor chan for this legislation. a concern that it does raise for me a little bit and i also will be supporting it, it is the capacity of the office of small business to take on a significant additional responsibility. legacy business is a heavy burden right now being carried i think by one person and so i don't know what kind of thinking there has been about the administrative needs and how we're planning on needing that specifically through our budget. >> supervisor chan: if i may, through chair peskin, and i want to answer that, but i'm going to also make sure to give a chance to regina to answer

too. it's her team doing the real heavy lifting. i have a few conversations, i think, one, start off with the understanding that in the most recent times, both the mayor's recovery act for small businesses as well as, you know, budget chair matt haney's budget or entertainment legislation all these are with the focus of small business or the businesses are 15 years and older. it's kind of we really are align in identifying and thinking to really provide funding and help and support for small business that are 15 years and older around the city and i also had a conversation with the incoming director and just try to have an

understanding of which small business is under and part of and to try to understanding you know, we haven't been asking them to do a lot during this pandemic. not just with this legislation, but all around and wanted to understand what her needs and this is going to be enough of what we're trying to provide some of the support and budget commitment that i'm working with budget chair haney on. from what i understand is obviously everybody needs more support and resources and, but i also want to make sure that our staffing is efficient and that service is not duplicated and to make sure when we really help these businesses, sometimes it may be one business that could qualify for multiple help and grant and relief. so all to say is we have the commitment from budget chair matt haney to make sure we move

this forward and provide a support and he's also a cosponsor of this legislation. and obviously budget conversation is still ongoing and i want to make sure we work with the mayor's office and and i think that's a goal for everybody all around. >>. >> supervisor mandelman: through the chair. i think it does and a huge additional kind of set of tasks was put before folks behind the

scenes. sometimes we can see the creakiness of that. so we'll just need to be attentive tom that and, then, the other is just and the differences between this and legacy business, legacy businesses can apply for legacy business status themselves i think. that's not the case for these businesses. right? >> supervisor chan: thank you, through chair peskin, and answering that question. it really is i think to sort of make it even more i think community led allowing the small business to work with the people that support them and i

do believe that also includes petitioning which their customers can provide their support to the small businesses, i mean, there should be other options beyond the members of the board supervisors to recognize the small business in the district or neighborhoods to say they are recognized and deserve support. >> supervisor mandelman: thank you. >> through the chair. this is director dick endrizzi just to provide some information between the legacy business program and this potential program. for the legacy business program, a business maybe can initiate an application, but we cannot process that application until it receives the nomination from the board of supervisors or the mayor.

with this program, not only do the merchants association and potential other business entities that the office and for me to identify to help achieve our equity goals, businesses can also self-nominate through a petition as well. again, so if this allows a business that isn't connected to an organization to be able to be on the anchor business industry meeting all the other sort of qualifications that are settle out. just a point to note that with the legacy business program, we are backlogged with about a 9 to 10 month backlog of being able to process our applications. so adding this program will

definitely need to have the consideration of the resources which supervisor chan did talk about and the fact that keeping consideration that this is the program isn't the short term program to deal. while we're work on focus to relief to the pandemic. as per this legislation, it will be establishing an ongoing program to be managed and so that does mean it is a relationship just like rick has with all of our legacy businesses staying in touch with them making sure that if there's any need, resources that they need to engage with. so this will be an ongoing program to build with the number of businesses that are

identified as neighborhood anchoring businesses. it will have anger ongoing management requirement. and that includes my remarks. >> chairman: thank you, ms. dick endrizzi. and, public comment is closed. so have you moved the amendments, supervisor chan? ? >> supervisor chan: i don't think yet. but i will make the motion to move the amendments that i talked about earlier. thank you. >> chairman: okay. on that motion, a roll call please. >> clerk: yes, on the motion to amend, [roll call]

the motion to amend is approved without objection. >> chairman: and then, supervisor chan, would you like to make a motion to continue the item to a week from today rules committee meeting. >> supervisor chan: yes, please. move. >> clerk: on the motion to on the move to move the item to may 17th. [roll call] the motion passes without objection. >> chairman: thank you, mr. young. colleagues, do not sign off. i've been informed by counsel that we need to rescind the vote on item number two do to some technical and procedural issues. so i will make a motion to rescind the vote on item number 2. on that motion, a roll call please. >> clerk: the motion to rescind the vote on item 2,

[roll call] . the motion passes without objection. >> chairman: ms. pierson, deputy city attorney pierson can you please regale us with what we need to do? >> yes. i'll be happy to rebale you. so the motion before you today requires a motion for omit because it's left for this committee to decide to reject the nominee and the practice of this committee is to make that amendment in committee and then to send it to the full board either with recommendation or without. so the board may amend it here to make that choice, but it may still send it to the board without recommendation. and this practice derives from

the board's rules with the clerk to require to send two separate motions. over time, that process has been expedited a little bit, but to send you one and have you make that selection through amendment. once you make the amendment, it allows the motion to arrive on the agenda tomorrow and to align with the question that's presented in the agenda which is "should this motion be passed?" >> chairman: right. let me just look at that motion on tomorrow's calendar which says, well, the motion on tomorrow's calendar is the same as the motion on today's calendar. it's motion approved/rejected. >> that's right. we can't update that on the notice, but the clerk will read the revised long title after it's been amended. >> chairman: i guess my question is why can't -- i don't want to prejudice the board in that discussion by

saying we are accepting or rejecting. i think the whole point of our sending it as is is we want to have though robust discussion at the full board. and the full board says amending/objecting. and then the full board would have to make a motion to accept or object. >> that's right. if you make that amendment today, the full board can override whatever choice you've made. but the practice of the committee consistent with the board's rules has been to send to the full board a motion that already makes that selection. and if the clerk, if the samir is on -- >> chairman: by the way, before we get to that, i think there also are some additional technical corrections that need to be made because this is not a reappointment, it is actually an appointment. so in any event, i do believe

that online 10, it should say authority to reject the not reappointment, but appointment and the mayor's notice of reappointment in line 11 and in line 13 and reappointed should be appointed. because this is actually succeeding car men chiu. so there is that technical correction that i believe also needs to be made. >> that's right. >> chairman: all right. ms. samara, this chair, our rules not withstanding would like to send the item as is saying "accepting/rejecting" to the full board. have the full board actually make the amendments that we would normally make inspect committee. is that acceptable to you, madam deputy clerk? >> hello, mr. chair.

thank you for calling upon me. the clerk of of ot board does recommend that the question is cleared by the time it gets to the full board. we do acknowledge it has came to the board where it has one or the other. it is currently agendized but the expectation is the work happens in the committee so the question that you guys put before the board or refer to them is clear and con size. i mean, we do acknowledge it has happened before, but we do think of it is -- it will take a motion for somebody to amend it to strike approval/reject at the board level. if that were not to occur, the question would no longer be valid and we acknowledge it's very unlikely that will happen. but as the clerk and for parlitarian procedure. it is up to you and we won't

push it if that's how you want to do it. >> chairman: thank you. and let me just say, this is i think a unique circumstance. it is very rare that we do not strike accept or reject and send. but this is -- and, by the way, at least i did a lot of work relative to reso much on esg and the retirement system and two interviews with the appointee, ms. gandy, but i think the point here in this unique situation given the entire board of supervisors february 3rd, 2021, resolution is to really leave that to the full board. i generally like to do all of that work here, but i think this is of weight and import that the full board should be able to do that and, look, if for some reason, we didn't do that, we lose jurisdiction before next week's meeting anyway. so it becomes a mute point.

so i would make a motion to change lines 10, 11, and 13 to say "appoint" instead of "reappoint" and then send it with accept/reject and as you indicated it has happened in the past and, don't worry, this will not be a normal practice of this committee during my tenure as chair. >> great. thank you. >> chairman: supervisor chan. see, i'm bringing my computer back in. >> supervisor chan: great. thank you, chair peskin. this is truly just a technical question for how this is for both our deputy state attorney, but also probably for our clerk to answer this question. i mean, will it be problematic? should we duplicate a file and the other one say accept and

then both without recommendation will that pose a problem? i mean, that, you know, because then that way the board can vote specifically on each item up and down. perhaps that creates even more problems. i don't know. >> chairman: i think the question is a noticing question which is the item on tomorrow's calendar. there's only one item on tomorrow's calendar and that crossed my mind when deputy city attorney pierson contacted me offline. but that would be another route if we don't have a noticing problem on tomorrow's agenda. >> it would pose a noticing file because there is only one file on the file as a committee report. in the past, this is how we submitted appointments. we would send two motions, one to appoint and one to reject just so that we wouldn't have this issue, but, in this case, it did come out of the

committee or it is coming out of the committee report and there is only one item. >> and, we might. this is probably not the place to have this conversation, but we might want to say given, you know, this board's policy around retirement board issues. we might want to say any time pursuant to 300 subsection 18 that we have somebody from the retirement board up, we send two motions that way but it's half a dozen to others. the board will tomorrow amend it one way or the other, and if the board fails to act, we lose jurisdiction. so it kind of net net doesn't matter. so it will be rare that this happens in this committee

except for in this instance. >> good to know. >> chairman: so, with that, colleagues, i would like to make the aforementioned motion on turning appointment into reappointment. with that, mr. clerk, a roll call please. >> clerk: yes, the motion on the appointment on that motion -- on the amendment. my apologies. [roll call]

>> van ness avenue runs from market street to bay street in san francisco. south vanness runs from south of market to cesar chavez street. originally residential after the 1906 earthquake it was used as a fire break. many car dealerships and businesses exist on vanness today with expansion of bus lanes. originally marlet street was

named after james vanness, seventh mayor of san francisco from 1855 to 1856. vanness heavy are streets in santa cruz, los angeles and fresno in his honor. in 1915 streetcars started the opening of the expo. in 1950s it was removed and replaced by a tree-lined median. it was part of the central freeway from bayshore to hayes valley. it is part of uses 101. it was damaged during the 1989 earthquake. in 1992 the elevator part of the roadway was removed. it was developed into a surface boulevard. today the vanness bus rapid transit project is to have designated bus lanes service

from mission. it will display the history of the city. van ness avenue.

>> great.avenue. thank you. this meeting will come to order. this is the may # a, 2021 budget and finance committee meeting. i'm matt haney, chair of the budget and finance committee joined by committee members safai and mar. our clerk is ms. linda wong. i want to thank you sfgov tv for

broadcasting this meeting. madam clerk, do you have any announcements? >> yes, mr. chair. due to the covid-19 health emergency and to protect board members, and the public t board of supervisors legislative chamber and committee room are closed. however, members will be participating in the meeting remotely. this precaution is taken pursuant to the various local, state, and federal orders declarations and directives. committee communities will attend through a video conference and participate in the meeting to the same extent as if they are physically present. public comment will be available on each item on this agenda. and streaming the number across the screen. comments or opportunity to speak are available via phone call by calling 415-655-0001, meeting i.d. (187) 707-6356, and then press pound twice. when connected, you will hear the meeting discussions and will be muted and in listening mode only. and when the item of interest comes up, style star 3 to be

added to the speaker line. best practices have to call from a quiet location and speak slowly and clearly. alternative, submit public comment in the following way and email to myself and the budget and finance committee clerk. you can submit public comment via email to be forwarded to the supervisors and included as part of the official final. items acted upon today are expected to appear on the board of supervisors agenda of may 11 unless otherwise stated. mr. chair this, concludes my announcement. >> thank you so much, madam clerk. we have a full agenda today, so thank, everyone, for being brief with your presentations and in advance for your patience. we have the first item continued from the 21st. madam clerk, please call item 1.

>> item one, resolution to retroactively approve amendment to the cares act emergency solutions grants coronavirus round 2 entitlement expenditure in the amount of $10 million for operations and services for con gre grate shelter for the period of july 1, 202 through june 30, 2023. member of the public who wish to provide public comment on this i a tem should call 415-655-0001, meeting i.d. 187 707 6356, and press pound twice. if you have not already done so, dial star 3 to line up to speak. a system prompt will indicate you have raised your hand. wait until the system indicates you have been unmuted and you may beagain comment. >> thank you, madam clerk. we have emily gibbs and director rohr here to speak on this item. welcome.

>> a thanks, chair haney. trent rohr and i see that emily is on. she can describe the budget ask that we're making today. >> good morning, chair haney. i am emily gibbs, budget director for the human services agency. this item is a request to to modify the cares act emergency solutions grant. in august 2020 the board of supervisors approved an initial plan that allocated 100% of the grant to cover anticipated expenses for the covid shelter in place hotel program serving homeless san franciscans. in early 2021, the new federal

administration announced that fema would be covering additional costs related to the sip program in the same -- and earlier in the fall fema announced they were not covering congregate shelter for clients not deemed fema vulnerable. this announcement and resolution allows 10 million of the emergency solutions grant round two funds to be redeployed to the covid shelter program reducing a burden rn on the general fund. au a my concerns and questions were specifically around the shelter and who is there to go

over to director rohr. >> and c.d.c. issued guidance around congregate shelter with 6 feet of distance between beds. and so the path to doing that for those who met the fema vulnerable definition at the

time was age 65 and above or those with underlying health conditions. we chose to do 60 and above even though fema was only reimbursing at 65. we transferred those individuals into sip hotels with a number of individuals who did not meet that fema criteria at the time and open to the additional congregate shelter at musconi. in addition to that, we needed to have a congregate alternative to provide a safe environment for those who for whatever reason couldn't manage on their own in the sip hotel. so typically if someone who was maybe an active user who was safer to use in an environment where we want to supervise or someone who had mental health issues or something like that. and that was very few people but we did have that alternative.

and homeless and didn't have a place to go and we didn't want to discharge them to the go to the masconi. and if there was a safety concern, we had that as an option. the last piece and the decision and the financial decision driving the use of shelter rather than sip at the beginning was just clearly cost. and about $60 less a night at masconi and the run rate about $360,000 a month or $4.3 million a year. so fema, as you know, expanded the definition and this occurred, let's see, i believe in january at some point.

and at the same time they increased reimbursement to 100% and we worked with department of health who was charged in the activation and setting the criteria and including under the expanded definition. so what public health came up with was individuals experiencing homelessness and met one additional criteria and transgender and h.i.v. and other illness and mental health issues and top 5% of the high user, high health meet individuals and that functional impairment like a wheelchair. those were prioritized for sip as well. we did move a number of and

those in masconi did meet that expanded definition and could be sip and right now the consensus and we are moving to deactivate that shelter to sips and the next door shelter and we have 11% of the current occupants are age 60 and above.

it is important that weer for the congregate resource at the activation and with the to go the this shelter is a

significant cost to us and we have reimbursements that are coming from this sip hotel and from livability and to be assessing people to be moved, is that correct? >> an i will refer to the operational level and before he answers, we're attempting to balance access to the sip hotels and we're using our sip hotels to continue to provide hospital discharge for vulnerable adults. we use it for jail discharge for vulnerable, and also our hot team as well as the -- i can't remember the acronym. and the ems group that places

people. we have those with that inflow and so we needed to balance the need for providing housing that is temporary housing and is 100% funded by fema for those individuals. but also people at masconi who are in a safer environment than people who are on the street or coming out of jail or hospital. so the feeling is the marginal general cost is not large and the trade-off is a good one that we are getting people who are vulnerable indoors and not discharging from jail to street and not from hospital to street. and i will let darius answer about the d.p.h. assessment and evaluation of individuals. >> thank you, director. can you hear me okay?

>> yes. >> all right. thank you, chair haney. i wanted to give an update on sort of what is happening at masconi west. i am deployed to the covid command center and work with the human services agency. we have 120 guests on site and the plan is to demobilize the site by june to hand masconi west back to the city administrator so they can have events. 22 have transitioned all together. and seven are seven are in housing referral status. and to your specific question, chair haney, seven sip placements are pending. we're going through and meeting with all the folks there to talk to them about their path out of that shelter and assessing them to see if they are, in fact, sip eligible. in addition, we're looking at all the options that are available to them including coordinated industry for anyone el vibl for housing.

we are doing a deep analysis there as well to put them on the path toward housing and we have seven in housing referral status. and to be on site and this coming monday to do assessments of all the staff and all the guests there and the problem solving programs. and healthy programs and everything available to them. so we're looking across the board at not even just sip for these folks. and many of the transfers will go to the next door shelter and that is a lot of places that people are going because they aren't sip eligible and work with them on housing referral process after that. so that's what's happening right now. and we'll continue to do the work for the next under two months. and i'm available to answer any other questions you may have. >> thank you. i appreciate that. and that's great. and that does answer the questions that i had. >> colleagues, any questions or

comments on this item? it was heard previously and is >> is there any public comment? >> we are checking to see if there are callers in the queue. members of the public please press star 3 to be added to the queue. for those on hold, wait until the caller indicates you have been unmuted. >> there are no callers at this time. >> thank you. public comment is closed. thank you for coming back and helping me understand why. i look forward to hearing more

about masconi specifically and am grateful for the support we have here to pay for many of the important priorities. with that, i want to make a motion to move to item to the full board with a positive recommendation. madam clerk, roll call vote please. [roll cal vote] >> thank you so much for everyone being here and for your teem and great work. i am sure we will see you soon. >> madam clerk, please call item two. >> resolution approving amendment no. 3 to the terminal 2 newsstands, coffee and specialty stores duty free group north america and extension of the term for no later than june

30, 2023 with the condition that the airport director may terminate by providing six months advance written notice with no change to the current minimum annual guarantee, subject to adjustment in accordance with the terms and condition of the lease, effective upon approval by the board of supervisors. members of the public who wish to provide public comment should call 415-655-0001, meeting i.d. 187 707 6356, press pound twice. if you have not already done so, dial star 3 to line up to speak. a system prompt will indicate you have raised your hand. please wait until the system indicates you have been unmuted and you may begin your comments. >> great. thank you so much, madam clerk. we have a member from the airport here to present on this item. >> good morning, committee members. the airport is speaking approval for modification free and to extend the term through june 2023 with no change to the

minimum annual guaranteed rent. airport revenue development has evaluated several existing leases that are about to expire and made individual determinations on whether to seek exemptions or continue the request for proposals process. given the current economic challenges for tenants due to the covid-19 pandemic, resulting from the significant downturn in passenger levels, staff has determined that it would not make economic sense with the proposals process at this time. the proposed amendment would extend the lease to no change to the current route structure. and 1.5 million is currently suspended due to the severe decline in passengers. the airport anticipates proceeding with new rfp process sometime in 2022. we have participated in the covid-19 emergency rent relief program which will waive certain rents and fees to encourage business recovery, employee rehiring and continued concessions operations at the airport. they have recommended approval and i am happy to answer any

questions. >> there is a bla report on this item. >> thank you so much. and in the follow up, the board is being asked to approve an amendment between the airport and world duty free group to extend the term by two years and two months to june of 2023 with no with the annual rent over the extended term. this is currently suspended due to plane travel in accordance with airport policy, but we

recommend approval. >> colleagues, any questions or comments? do not see any. madam clerk, is there any public comment? >> we are checking to see if there are any callers in the queue. members should press star 3 now to be add odd the queue. for those on hold, continue to wait until the system indicates you have been unmuted. are there any callers in the queue? >> none at this time. >> public comment is now closed. i don't see questions or comments from the colleagues and make a motion to move to the full board with a positive recommendation. roll call vote please. [roll call vote [

>> madam clerk, call item 3. >> item 3 is resolution approving amendment 2 to the luggage cart service in the federal inspection service area from a free service to the paid service. give the airport director authorization to reinstate the provision of free carts in the fis and resume payment of the annual service fee, at the airport director's discretion, and exercise the one three-year option for total term of january 1, 2020 through december 31, 2025, to commence following board approval. members of the public who wish to provide public comment on this item should call 415-655-0001, meeting i.d. 187 707, 6356, and press pound twice. if you have not already done so,

please dial star 3 to line up to speak. a system prompt will indicate you have raised your hand. please wait until the system indicates you have been unmuted and you may begin your comments. >> all right. >> welcome back. >> hello again. the airport is seeking your approval for amendment to to the three to five year service and provides 2,000 carts free of charge for arriving international passengers. given the current economic challenges tu to the covid-19 pandemic resulting from the significant downturn in passenger levels, staff has recommended amending the lease to a cost savings to the airport of up to 3.1 million per year. and as part of negotiating the change to the agreement, the

airport has agreed to exercise the the area and i am happy to answer any questions. >> a great. thank you so much. >> ms. campbell. >> chair haney, members of the committee t proposed resolution approves an amendment to the existing agreement between smart cart and the airport extending the terms noted to december of 2025. and with the smart cart would no longer provide free luggage cart service in the federal inspection service area of the international terminal, and the airport would no longer pay smart cart up to $3.1 million a year for this free service. there would be a savings to the airport over the extended term of approximately $14.3 million and we recommend approval.

>> great. thank you. any questions or comments? >> yes, mr. chair. dte is checking to see if there are any callers in the queue. members who wish to provide comment should press star 3. and for those on hold, continue to wait until the system indicates you have been unmuted. and are there any caller who is wish to comment on item 3? >> there are no callers in the queue at this time. >> public comment is closed. >> a seeing no comment from the colleagues, i want to prove to the board with full recommendation. roll call vote. vice chair safai. >> aye. >> member mar. >> aye. >> chair haney. >> there are three aye's.

>> thank you so much for your work. madam clerk, can you please call item number four. >> item four, resolution approving an emergency public work contract under administrative code section 6.60, between public works and a. ruiz construction company and associate inc. to make repairs on civic center steam loop for total contract amount up to $275,000. members of the public who wish 'fro to provide public comment should call 415-655-0001, meeting i.d. 1877076356 and press pound twice. then press star 3 to line up to speak. please wait until the system indicates you have been unmuted and you may begin your comments. >> great. thank you, madam clerk. we have jeremy from public works to present on this item.

>> good morning, chair haney and supervisors safai and mar. thank you for considering this item. the civic center steam loop is used for water heating at city hall, d.p.h. headquarters and other buildings around the civic center. in november of 2020 a pipe section crossing larken street developed severe underground leaks damages ait at&t communication lines. a contractor would be required given the scope of the damage. and real estate does not have the authority to do so under chapter 6 of the administrative coat. bid solicitation was advertised in 2020 and bids were received on 2021. on january 12, 2021, the acting director declared an emergency according to to 6.6 of the

administrative code to issue a contract to a. ruiz construction at approximate cost of $275,271. the declaration was approved by the mayor's designee and notification was sent to the mayor, controller and board of supervisors which is on file. notice to proceed was issued on january 18 and the project was completed on april 6. the bla recommended approval and i am joined by the director of real estate and his team who are available for questions. >> as noted, this resolution is approving the emergency contract between public works and the repair of the civic center steam

loop. the expenditures on the contract is shown on the table on page 10 of the report and we recommend approval. >> colleagues, any questions or comments? >> seeing none, i am going to open this up for public comment. >> we are checking to see if there are any callers in the queue. please wait until the system indicates that you have been unmuted. are there anyny callers for item four? >> no callers in the queue at this time. >> thank you. >> public comment is closed. seeing no further questions or comments, we make a motion to move to the full board with a positive recommendation.

madam clerk, roll call vote please. >> vice chair safai. >> aye. >> member har. >> aye. >> chair haney? >> aye. there are three aye's. this will go to the full board with a positive recommendations. thank you so much for being with us. madam clerk, call item 5. >> resolution approving amendment number 1 to the contract between the city and the united states through the department of energy western area power administration for delivery of low cost power to treasure island and extended the term by 30 years for total determine of january 1, 2005 through december 31, 2054 and increasing the contract amount by $7.6 million for total not to exceed amount of $27.6 million to commence upon board approval. members of the public who wish to provide public comment on this item should call

415-655-0001, meeting i.d. 7071876356, press pound twice. if you have not already done so, dial star 3 to line up to speak. a system prompt will indicate you have raised your hand. please wait until the system indicates you have been unmute and you may begin your comments. >> great. thank you. madam clerk. we have a member from sf watter to present on this item. >> good morning, chair haney and board of supervisors. this is ramone brig, the deputy assistant general manager for operations for power enterprise. i am here today to request your approval to amend the energy purchase agreement with western area power administration beginning january 1, 2025 until 12/31/2054. next slide please.

next slide. so just to give you background, this is just to address the energy requirement that we supply to treasure island and just to give you background on how we're serving power to treasure island. currently we're purchasing the generation from western area power administration and that power is transmitted through pg&e transmission system and delivered at the port where we reduce the voltage from 115,000 volts to 12,000 votes. and then into a distribution switch to serve the islands. and so to clarify, tida is the electric system on treasure and tid, and puc, we supply the power and provide the maintenance and switching

operation at the island. next, john. so we were the successor contractor to wapa when we took over the distribution system at the island. so what we're asking for is to extend that contract beginning january 1, 2025. let me back up. so the existing contract is going to expire at the end of 2024. and the reason for us asking for an early approval is because wapa wants us to make a commitment to they can make reservation to their resources that they have find out how much they need to account for. and what kind of commitment that get from all other members they provide service to. john, next slide.

so we are going through a soliciting process, as i stated. we're getting early approval. they need a commitment now so that they can send the delivery through to the treasure island through the end of december 31, 2054. go ahead please, john. what does this mean to us? so if we do not approve or don't get approval for this request, it could impact our ability to provide service to treasure island and ybi. however, we are also looking at options to be able to supply the

energy ourselves from hetch hetchy power, but there are a lot of components we need to review that includes the generation, how much generation we have available from hetchy and address how to deliver the power right going through the issue system and whether or not we can use the hetch hetchy transmission lines. and we also need to identify where we can deliver power in the system and avoid some of the transmission charges we might be subjected to. we will be able to exit the contract with wapa should we deserve it's better to serve from hetch hetchy. we have until june 30, 2024 to exit and not implement disagreement or we can exit with a 90-day notice after it's implemented on january 1, 2025.

next please. that is all. thank you for your time. and i am here to answer any questions. >> before i go to -- supervisor mar. >> thanks, chair haney. actually, if there is a bla report, i can take my questions for after the bla report. >> great. ms. campbell. >> yes, chair haney, members of the committee. the resolution approves the amount and between the puc and for electric supply to treasure island. the term would be extended to

2554 and the increase is $7.7 million to 20.7 million and show that increase on page for support and we recommend our approval. >> great. supervisor mar? >> thanks, chair haney. i think it's really interesting just to learn about this agreement if and it sound like a really good deal. it is good to know it is hydroelectricity. and i guess it looks like it's supposedly low cost. i just had a question about that, and what is the -- can you speak a little bit of a low coast and to go to other

agreements that the puc has with other providers. so in terms of address are and because of the disagreement we're able to charge and for about 40% less than what pg&e charge. >> and you mentioned in your presentation the option to exit from the agreement and also that hetch hetchy power is looking at providing electricity to treasure island. i guess my question is, why would -- what would be reasons why we would want to exit this -- what seems like a really good deal financially and a good

deal. >> with the shortage in water, there might be reasons that the cost of hydro would go up. so we're trying to put that -- to protect ourself from any increase in cost from wapa. >> got it. thanks for your work and presentation. this sounds good to me. >> thank you. supervisor safai? >> thank you, chair haney. thank you for your presentation. appreciate that. this also, i had the same reaction when we were reading the report that this is very interesting. is this type of former base agreement, does that apply to the hunter's point shipyard or

exclusive to treasure island and san francisco? >> it is exclusive to treasure island. and from clean power sf or from hetch hetchy. >> right, but can you tell me why we get reduced wait for treasure island and not hunter's shipyard which was also a former military base as well? >> i am not familiar with the background, but the only agreement we have that is with wapa for the treasure island. the hunter's point area and i do not know the background or what transpired there. >> did they get a discounted

rate in the shipyard? >> they do based on the unit rate we provide. the discount is from the pg&e rate. so to back up a little bit, and -- i'm sorry but hunter's point, by the way, used to be served by pg&e until we took over. not from wapa. >> i got that. and in this agreement and reiterate they get a 40% discount for residents on treasure island and that will be going forward. and discount from the shipyard to get as a comparison. i do not have that answer. i can get back to you. >> another thing for the record share and this is something we

talked about with regard to the conversation in the agreements and it is interesting when we were talking about treasure island, it never came up with the residents have a significantly discounted electricity rate. and so to me is even more of a reason why moving toward 100% and to island was a big benefit. this was very educational. wasn't aware that wapa exist and provided service to the island. good to know the residents out there are getting a discount. i know often they will get notifications they have outages on the island. do you have any comment on that? is the current infrastructure the reason that there's outages?

are you aware of that? >> yes, i am. we are trying to work out a solution to improve the reliability and that challenge that we have with the island is that the infrastructure, the distribution system is at least 40, 50 years old. we're slowly making upgrades to the system in order to minimize the outages and improve reliability of the system. so one of the things that we just completed is the new switch gear. we are installing that to be able to segregate the different services if you will. the whole island doesn't go out in case of a problem. and that will get energized on monday the 10th. and then there is a new distribution line we will be connecting the switch gear to. and so we can start minimizing the outages. the we prevent it completely? not yet. we have a lot of work in term of improving the entire distribution system.

will a lot of that distribution system be developed as that comes to the island? >> that is correct. >> thank you for answering those questions. >> thank you. >> thank you for the questions about treasure island and appreciate your concern to spend a lot of time about the grid improvements and numbers planned and i have gotten pretty deep into the weeds around some of the engineering issue changes and to address the issues and obviously the long-term challenge is still there to be

addressed by the full replacement of the grid. is there any public comment on this item? >> members of the public who wish to provide comment, press star 3 to be added to the queue. for those on hold, wait until the system indicates you have been unmute and are there any caller who is wish to comment on item number five? >> there are no callers in the queue at this time. >> great. public comment is now closed. all right. well, seeing no further questions or comments from my colleagues, i want to make a motion to move the item to the full board with a positive recommendation. roll call please. [roll call]

awe maude am clerk, call items 6 and 7 together. >> item 6 authorizing the issuance and sale of one or more series of development special tax bonds for city and county of san francisco special tax district no. 2020-1, mission rock facilities and services in the aggregate principal amount not to exceed $64.9 million supplementing resolution no. 196-20, and approving related documents. item 7 is a resolution approving certain documents and actions related to a pledge agreement by the city and county of san francisco infrastructure financing district no. 2, port of san francisco, and special tax bonds for city and county of san francisco special tax district number 2020-1, mission rock facilities and services, and determining other matters in connection with therewith, as defined herein. members of the public who wish to provide public comment on

these items should call 415-655-0001, meeting i.d. 187 707 6356, press pound twice. if you have not already done so, dial star 3 to line up to speak. the system prompt will indicate you have raised your hand. wait until the system indicates you have been unmute and you may begin your comment. great. thank you so much, madam clerk. we have raven anderson from the port here to present on these items. >> good morning. i am raven anderson a project development team with the office of public finance and the deputy director for real estate and development. we are here to request your authorization of a second round of mission rock facility district public financing including the second round of

cfd bonds in a not to exceed amount of $64 million. the bla has recommended approval. i have a brief presentation on the mission rock project and the context for this request, which i will share now. first a quick overview and update on the overal project with approximately 1200 homes and 40% of which will be affordable. and approximately one million square feet of office as well as ground floor retail and parks and open space and the rehabilitation of pier 48. in september of 19, the committee approved the phase one budget shown here. the project broke ground on horizontal work in december 2020

and vertical work in january 2021. this horizontal and vertical construction is now well underway, and this phase includes two residential buildings with over 537 homes including 199 below market rate units. it also includes two office buildings with over 550,000 square feet of office space as well as 65,000 square feet of ground floor retail and 5.5 acres of parks and open space. horizontal work for this phase is roughly 30% complete. and as i mentioned before, two vertical buildings are under construction. this slide shows the overall financing structure of the project. at the bottom of the graphic is the developer and port equity contributions which are the earliest sources of funding. developer equity is used to fund

the horizontal infrastructure of the project including roads, sewers, and other utilities. this equity contribution is subject to an 18% return as per the transaction documents for this project. other sources of funding include the land values of the port's vertical parcels such as the four pre-paid ground floor leases and the final source of funds is two special tax districts at the project. the community facilities district or cfd special taxes are a special assessment on top of the standard property tax assessment and the infrastructure financing district or ifd captures the growth in the property tax value at the site. both of the special tax district wills repay the port and developer for the early funding sources including that 18% developer return. to limit to total return that

18% keeps occurring is to use the cfd and fid sources whenever possible. and to maximize the public financing. we want to replace to 18% with lower interest, bonded debt. this is a high level of the phase one budget as approved by the port commission in 2019. the total cost is $265.5 million. of that, $145.4 million are in reimbursable developer costs and the rest are entitlement costs and the 18% return. these are the approved figures and is possible they may have changed since then. we are working with the developer to monitor any changes in scope or increases in cost currently. on the sources side, we have the preraid lease value as well as public financing sources including cfd bond proceeds and

pay go taxes which are just cfd and ifd taxes not capitalized in a bond issuance. and the project has take an number of financing steps in approval to get to this point and formed the infrastructure financing project district which covers mission rock. the port has an ifd to capture the infrastructure and infrastructure that is needed and the project area specific to mission rock. in september 2019, the port made amendments with special taxes. with the foration of the

district and the additional assessment and the first issuance of not to exceed in cfd special tax bonds. the project is currently working to price and close on those funds, and we expect to do that before the end of the month. we recently posted the preliminary official statement for that issuance last week. quickly, there are four cfd special taxes at mission rock. the special tax that we are requesting bonding capacity for is the development tax which funds infrastructure and parts at the site.

the office special tax which is shorter term and more flexible and the shoreline protection studies and facilities along the waterfront and resilience work and the services special tax which funds ongoing maintenance at the site. this brings me to why we are in front of you today. the amount of bonds that can be sold at mission rock is limited by two factors. the first is the ongoing special tax revenues paid by the building owners and the second limiting factor is the appraised value of the cfd itself that acts as the security of the bonds with a 3:1 value to lien ratio. and all bond issuances will be sized to the amount of revenues generated for that first approved bond sale, the development special tax capacity on the first four parcels will

far exceed the debt service coverage required for the initial bonds. [please stand by]

that includes paying very larg impacts for two of the vertical parcels . based on these investments the final appraisal which was on february 1, 2021 valued the entire cfd lease holding at 324.9 million which is obviously a very significant increase. 324,900,000w3 gives us a maximum of roughly 108.2 million in phase i bonds so we are here recommending a second issuance of $264.9 million, 43.4 million+64.9 million to get us to that 100.82 million figure in total phase i unimproved land bonds. additional 64 million would have significant benefits to

support the projects economics by allowing us to replace that 18 percent developerreturn with lower interest publicfinancing . this allows us to preserve our land values and revenues in later phases . at this point i'd like to handed over to the director of the office of public finance who willwalk you through the specifics of this issuance . >> the estimated costs is a 30 yearfinancing and our advisor psn is estimating a true interest cost of 4.17 percent . next slide, this is a high-level overview of the sources and uses of funds assuming a bond part of 64.9 million the final bond amount may be lower. it will be determined based on appraised value at the time of the sale .

these next couple of slides wereprepared in consultation with the city attorney's office . at the bottom are limited obligations of the city such as taxes on estate project currently under development. as we are not pledging the city's general fund as security for the bond the bond willnot carry the city's investment rating . it will be non-rated but it is worth noting bond willcarry the san francisco name in the market . and as the bonds will be secured only by tax payments made by the developer there is concentration risk as well as develop risks . these are mitigated by a promise to foreclose on the property for the benefit of the bondholders if somereason there's nonpayment of taxes or default by the developer . additionally we will be limiting the distribution of the bond and qualified institutional buyers. next slide please. the legislation package we've

included a draft of the operating statements also known as the pos. the pos outlines the bond positions including security and sources of repayment, information about the projects history, the development plans and any risk factors associated with the investment. as a reminder under federal securities laws if you have relevant information about the project that is not already publicly available you would like to share or if you have any evidenceabout this disclosure that has a potential risk , do not hesitate to contact me or the city attorney markblake . thatconcludes our presentation . thank use, support staff and ops are availableto answer any questions . >>chair haney: thank you so muchfor this presentation and for your work . it's much appreciated . is there a bla report on this item ?

>> number six is a resolution that would offer central tax bonds in the amount of 64.9 million these are bonds that are secured by an assessment on the properties that comprise the community facility. and then item 7 would approve documents for the proposed bonds that would allow property tax revenue generated by the development to be used in combination with these tax revenues to pay for bonddebt service . we show the sources of the proposed bonds on page 20 of our report. this is consistent with prior board actions with the financing plan as previously reviewed by theboard and we recommend approval . >> chair haney: thank you so

much miss campbell. anyquestions or comments ? >> supervisor safai: i have a question . >> chair haney: supervisor safai. >> supervisor safai: chair? >> chair haney: itried to unmute and i pressed mute . >> supervisor safai: i have a question for the office of finance . so one of the things that i read in the report is the indebtedness secured by future lease and ability to lease and generate rent. you said one of the risks is that the developer could choose not to pay if leases did not g

as quickly asanticipated or revenue was not generated as quickly as anticipated . could you talk about that a little more ? >> anna van degna: in kind of a worst-case scenario, these tax bonds are referred to as land secured bonds but in a worst case scenario the developer would notpay , then there's a covenant in the bond document for accelerated foreclosure on the least interest and when you foreclose upon that you would bring in a new developer who would step in and pay the taxe . we look at that as a worst-cas scenario . we on the working with a partnership here and they have a lease as executed for one of the four particles and we're working on development for the other four parcels that will secure debt service on this bond financing over the 30 year life.

so we would hope that given the strong reputational, the strong reputation of the developer and their history and projects elsewhere that they and/or their lenders would step in and pay the special taxes even on what is delayed.>> supervisor safai: we are in a significant downturn so if this were to open up today remind me again once thesquare footage of square office space projected in this proposal ? i know that raven went through itvery quickly but reminds me . >> anna van degna: for the overall project i believe it's 1.4 million but i will let raven to the particulars.

>> raven anderson: it's about 550 square feet of office and one of the buildings in phase i is already preleased with a reputable credit tenant which does help our prospects here. >> supervisor safai: i'm just concerned with where we are in the market as far asoffice space, it's contracting dramatically . even the plans of existing businesses to expand, we just had a hearing of the land use andtransportation committee last monday pacific about office space all over the city .the sublease market is somewhat stagnant although they do anticipate it recovering once the market adjusts to a more affordable rate so i just, have you had conversations? i understand you have one reputable tenant out of 500 square feet, how much is that ?

>> raven anderson: it's a bit over half of that. >> supervisor safai: all right, so another quartermillion square feet or so will still be up or rent . and in the proforma's do they have a range that they predicted in terms of her square foot for anticipated lease? that also has dropped significantly and we had one of the largest drops inthe country and how does that impact the overall debt service ? >> raven anderson:that's a great question . thank you, your online. >> i've lookedat the pro forma's . when they appraised the site they didn't have a range of course. we had the actual number they thought they would achieve. if they don't achieve those

they still must pay all these taxes. that wouldreally suffer, it would be the profit they gained from the building . we are very concerned with the market as well and have thought about this a lot. we feel some confidence the buildings won't open for more than a year at this pointa year to 18 months is when they're anticipating completion of construction . >> supervisor safai: what we learn is it wasn't so much the anticipated offices remaining empty it was the price per square foot was dropping significantly . this wouldn't be a sublease situationunless somebody else had pre-signed leasing agreements . it sounds likesome of the other ones were coming in . but if they chose to back out, they would then have to drop to the sublease market which has gone from 80 to 60, still frozen around there.

there's not as much demand as theanticipated and i believe that's going to drop further . the pro forma was run on previous projections. those numbers are not going to be met. my question was more i don't believe they would be able to rent the space, it would be what they are ableto rent the space for and i think i heard you say it cuts into their profit . they'restill required to pay the tax and the debt service . >> that's right, the cfb is based on square feet which provides us that protection so long as they build the office space . >> supervisor safai: so there on the hook for thetaxes no matter what, it's just a matter of how much they're impacted . >> that's exactly right. >> supervisor safai: and what

raven said, half of the space is leased. do they have the ability in the planor rebecca , isthat right ? >> that's right. >> chair haney: do they have flexibility in the plan to adjust fromoffice space to housing west and mark or do they have to stick with office ? >> these parcels are set in the landuse plan as residential or commercial . they must use them for those uses, other parcels have much ability for office or commercial. >> supervisor safai: so have 1 million is set, but there's no. >> ability. but going forward there is potential for flexibility based on where the market is. >> rebeccabenasassi: that's right, without any changes to

the current land . >> supervisor safai: okay. that was allmy questions . >> chair haney: thank you bye's chair supervisor mar, any questions or can we open this up. >> members of the public who wish to provide comment please press star 3 now. for those on holdcontinue to wait until the systemindicates you have been on muted . are there any callers who wish tocomment on items six and seven ? >> there are currently no colors in the queue . >> chair haney: public comment is now closed. seeing no further questions or comments, i want to make a motion to move items six and

seven tothe full board with a positive recommendation, rollcall please . [roll call vote] class there are 3 aye's. >> chair haney: thank you so much to the clerksteam for your work and being with ustoday . madam clerk , can you please pull items eight and nine. >> linda wong: resolution approving recommendation between the city of san francisco real deal for alternative shelters to extend the contract term by 12 months for a term of the 1820 20 through may 17 2022 to increase the contract amount by 9.9 million for a total of 19.8 million to commence on may 18,

2021. item 9,resolution approval of the contract amendment between the city and smg . food and beverage llc for alternative shelter locations to extend the contract term 12 months for a term of may 18, 2020 2022 and increase the contract amount by 9.4 million for a total not to exceed the amount of 18.9 million to commence on may 18, 2021. members of the public who wish to provide public comment should call 415, 415-655-0001. meeting id 187 707 6356 and press pound, pound. dial star 3 to speak the system promptswill indicate you have raised your hand . you may begin to comment . >> chair haney: wehave thomas mclean here to present on both of these items .

>> thomas mcclain: my name is thomas mclean joined by our cfos from the hsa contract department. we agree with the bla's recommendation and respectfully ask you to approve both resolutions as amended to extend the contract with sf new deal and smg for 65 days and to increase not to exceed amount in line with the bla's recommendation. these contracts with these vendors are for snacks and beverage , the alternative shelter system, shelter in place and isolation in quarantine. where asking for this contract to be extended for 65 days from the current expirationdate .

with the authority granted under the extension to the emergencydeclaration . we will continue to need food throughout the duration of the alternative shelter system and we have the flexibility to wind down these contracts as the hotels wind down . so the duration of these services would be in line with the alternative shelter. both of these vendors have provided excellent service and have been great partnersto work with . so we respectfully ask that you approve both solutions and we are available for questions . >> chair haney:thank you . so you are in agreement with the recommendation, can we hear the bla report pleasemiss cattle . >> severin campbell: yes chair haney. item 8 approves a contract

betweenhsa for the alternative shelter meal program . extending the term to may 2022 and increasing the amount by 9.9 million to 19.8 million item number nine rooms contracts for the same program between food and beverage and hsa increasing the amount by 9.5 million to 9 million extending the term for 2022. we shall contract amounts on page 20 of our report and then just in accordance with the hsa where looking at an amendment to file 373 to reduce the total not to exceed 843,000 from 19.8 million two approximately 19 million. and we are recommending an amendment of 213074 not to exceed an amount of2.1 million or 18.9 million to 16.8 million

. these numbers arespelled out in our report and we recommending approval of those resolutions as amended . >> chair haney: great, thank you. colleagues, any questions or comments ? itmakes sense to me .not seeing any. that opens it up to public commentplease . >> linda wong: packing to see if there are any callers in the few.any members who wish to provide public comment press star 3 now. please continue to wait until thesystem indicates you have been onmuted . are there any callers who wish to comment on item eight and nine ? >> there are no callers in the few at this time. >> chair haney: public comment is now closed. seeing no further questions or comments from colleagues, i'm

going to make a motion to amend the resolution toaccept the bla's recommendation and we will have rollcall on any amendments . >> linda wong: the amendments are for items eight and nine. >> chair haney: are the amendments in both of the items? >> severin campbell: each item as an amendment attached to it to reduce a not to exceed amount. >> linda wong: on that motion vice chair safai. >> supervisorsafai: i'd like to get the chair attention actually. >> chair haney: supervisor safai >> supervisor safai: i wanted to add one additional slight amendment . i'm very supportive of both theseprograms . i think they had tremendous impact to those that are on

house and also to the restaurants, the small businesses. you look at the list that was provided there fromall over the city and i'm very supportive of this program . the only thing i wanted to ask and i discussed this with the bla as well as the mayor's office was that this would be, that they could come back in six months and give us anupdate on how this program was going. they're asking for it to be extended for a year . i didn't want to repeat any additional amount but it's not clear how long this will be gone for so i just like to see how much has been utilized in six months so we could add additional information so that the hsa could come back and give us an update in terms of how much of the money has been spent and how much more the program will be in need given where we are with the hotels

and other programs. >> chair haney: sounds reasonable to me. you want to make an amendment to require them to report back on this program in progress, spending etc. within six month . >> supervisor safai: correct, that's it. >> chair haney: is deputy city attorney pearson here? is that clear? >> yes it is, an amendment that asked thedepartment to come back for reporting . >> chair haney: we want to make both supervisor safai is amendment and the bla amendments and i want to make a motion to move all of those amendments.

>> linda wong: on the motion, vice chair safai. [roll call vote] >> linda wong: there are three aye's. >> chair haney: i want to make a motion to move both of these items to the full board as amended with a private recommendation . >> linda wong: [roll call vote] there are 3 aye's. >> chair haney: thank you so much mister mclean for your work and this is definitely a great program and i'm very familiar with it i also worked as a dfw briefly and shelter in place hotels and ungrateful for the support and the focus on this broad arrayof responses and vendors . with that, this will go to the

full board as amended with a positiverecommendation madam clerk , are there any more items in front of us today ? >>linda wong: thereare no more items .>> chair haney: this meeting is your .

>> 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. so good morning everybody. welcome to george christopher playground. a playground that was dedicated by the way 50 years ago in 1971 by mayor's alioto and christopher. so we're so delighted to have our very special guest, the 2021 mayor of san francisco going to say a few words in a little bit. my name is phil ginsburg and, yes, this is an actual and not a virtual opening. i haven't -- i haven't seen -- we vnt done one of these and i haven't seen this many people

in one place so i'm kind of nervous and shy and not used to it so forgive me. one thing the pandemic has taught us is how essential and open spaces and parks have been to our physical and mental health and well being. let's be honest, this project took a number of years in the making. wasn't fully funded. we had design changes and wonderful advocacy of support and then there was that pandemic that got in the way for about a year. so to be here today is really wonderful. today, we have our mayor, we have supervisor mandelman. we have commissioner mcdonald and some community champions to help us celebrate. so i will be brief. this is a $5.3 million effort. the scope of the work includes a lot of the stuff you can see.

but i'm going to highlight two things. one are the original playground elements that you see out to your left, to my right which really happened because of community advocacy and a really important desire and as we know, and thank you mayor and supervisor mandelman for all your support in helping us preserve these other elements. and then, the other thing i want to highlight very quickly is the nature exploration area to my left and your right and it kind of rambles and meanders through this beautiful space and i'm so impressed with the work of our design, you know, the design team and i'm going to acknowledge people in a second. but it's an acknowledgement of just how important nature is for our kids and to have an opportunity for all of our wonderful kids both behind me

at the knowy valley nursery school and here at the eureka valley care facility to have them be able to touch plants, explore nature, to get dirty, and hop and skip on these lovely wood stumps is really a treat. all right. none of these projects happen in a vacuum and happened without people. so i want to acknowledge our mayor and supervisor mandelman for your support and for championing this project. i also want to thank and acknowledge former district supervisors scott weaner. i want to acknowledge our dedicated rec and park commissioners and vice chair eric mcdonald who's here along with commissioner hallisee who's joining us today. nick maloney.

along with robert bruss. we have sarah cass highman. they have been outstanding partners in realizing our let's play initiative. and, of course, all of you, all the community members deserve the real thanks and accolades. i want to acknowledge a few people. breonna mcnulty. kathryn king, eureka valley arts and the property manager of donna real estate. a shout out to our construction team mike clancy and barry duarty from treaty construction. and it goes without saying that rec and park and i really want to thank and acknowledge b.p.w. specifically jasmine call and,

of course, d.p.w.'s allory. and without further adieu and you're going to hear from a lot of other speakers and i'll be here to acknowledge my staff at the end. a big warm welcome for our mayor who has steered us through this pandemic and keeping kids in mind all along the way, mayor breed. >> thank you, phil. first of all, i know we're in a playground and there's no way if i were a kid that i could sit here and listen to a bunch of grown-ups talk when i want to play. so i'm going to say to all the kids here today, go ahead and play. enjoy the playground. we can work around you. they've been waiting for a long time to be out here not just in this playground, but playgrounds all over the city. so we've got to let these kids have a good time. feel free to play.

we'll work around you. we are in a playground, we're celebrating and we're so grateful to be here. it's been a rough year for so many of us. this pandemic has tested our city and our country and the entire world like never before, but i want to say how proud i am of san francisco and what we've done and what you all have helped us to accomplish and that is even though we're one of the densest cities in the countries, we had one of the lowest infection rates and one of the lowest death rates in the country and we should be very proud for all of you and what we all did together to make this happen. yay. that's what i'm talking about. when i was a kid, it was margaret hayward playground and the western addition. i lived in that playground. i played every day. i slid down the slide. when the swing broke, we were

creative in putting things together in order to keep the swing in tact. and when i think about all the incredible work that's been done over the years with friends of this playground with the different organizations and the parks and all these great advocates and people who raised private dollars in order to make sure we generate enough money to invest in making these playgrounds the kind of place that kids can enjoy and remember their childhood in such a fascinating way. it makes me feel so good. i just want to say to the rec and park team and phil ginsburg, the work you have done all through the years, you all should be proud and we're so grateful to have a rec and park team that spends so much time on taking care of the trees and the grass and sand is not at every playground, but the fact is we want to make sure that these playgrounds are in tiptop shape for our

children. and i also want to say to the friends of the george christopher playground as well. thank you for your support, your advocacy and your work and you'll hear from so many people today that had a lot to do with why this playground is here. over $5 million. 120 jobs created during a global pandemic and also a lot of patience from the diamond heights community as we dealt with the construction, i know supervisor mandelman probably heard it a lot from many of you. but here we are, thank you to the kids. thank you to the families. thank you to this incredible community. because of you, we are able to bring this playground back to life especially as we began to re-open our city and come back stronger than ever. our parks and playgrounds are going to continue to play a critical role in that. and, with that, i'd like to really take this opportunity,

ms. eddie, i have a certificate if you would come up, to honor you in the community. on behalf of the city and county of san francisco. i've been vaccinated. the president said i could take my mask off for something like this. thank you so much for your work and effort and for caring so much about kids in san francisco and making sure they have this wonderful playground. >> thank you so much. this is wonderful. thank you. >> with that. i wanted to introduce your supervisor rafael mandelman. >> thank you mayor. everywhere we go, there are thousands of people who are alive in san francisco and we kept our hospitals open and our

emergency rooms able to serve people and this could have gone very differently. so thank you, madam mayor, for your tremendous leadership. this is an exciting day for district 8. it is a long time coming. i do, you know, i want to acknowledge an elected official who is here and a diamond heights neighbor, jenny lam from the school board. getting the kids back in school. so this was a long project. this was 10 years in the making and it happened because, i mean, lots of great folks made it happen. phil ginsburg, and the parks alliance and everyone, but it really happened because the community up here demanded that it happen and betsy eddie just got an acknowledgement. she deserves a thousand acknowledgements. i generally say with respect to things having to do with diamond heights, if i just ask

betsy what to do, i'll be in pretty good shape. betsy has been bossing us around the last 10 years. the play structures are here because of the advocacy of betsy eddie and brenda mcnulty. betsy thought we needed some lights over by the tennis courts and said, supervisor, make it happen. so we did that. we had some fights about bathrooms where she was telling us all what to do and we are so much better for it and then brenna with the friends of christopher park, thank you so much for all of your work on this and to my predecessors, you know, senator weaner and supervisor shehe. but the folks at rec and park brought it home to us and thank you to all the other people who i'm not thanking and i should. and i do want to thank eric

mundy legislative aid and. with that, i'm so excited for this. this is great. thanks everyone who got us here. >> a little rough former supervisor jeff shehe and i overlooked our i know that you're a neighbor with two kids so you use this space and this is near and dear to your heart. next up representing our rec and park commission that also keeps an eye on community advocacy and making sure this project meets our community needs is vice chair eric

mcdonald. >> good afternoon everyone. here we go again. it's excitingtor here with you to open this amazing space. one of the roles that the commission plays in this process is that we listen to and review the conceptual design plans and one of the important elements of that is ensuring that we hear your voices, hear your interest, appreciate what's important to you and hopefully create a design that plays back what you actually told us. so we hope that today as we give you your park back that it represents what you've held as vision and we also, as we said before want to acknowledge has been a long time coming. 2012 bond. 2015 beginning of conceptual designs. 2017, we finally said, yes, we think this is the right design.

then we got started and then we had to stop. under the commission, we say thank you for entrusting us as that's already been done. we could not have done this without continued leadership from our mayor breed. continued stewardship from supervisor mandelman. and, today, we are pleased to give you back your park. thank you so much. >> thank you, commissioner. as the mayor and supervisor mandelman and commissioner mcdonald noted, this is your park, it's a community driven design. community driven advocacy and so it's time to hear from two of your community leaders. i'm honored and pleased to bring up brianna mcnulty and betsy eddie.

>> how exciting to get to speak out my mask. that's wonderful. good afternoon everyone or good morning. but this is definitely an exciting day for diamond heights. it's an exciting day for the surrounding community and all the children that are going to love this beautiful new playground and i am so grateful to all the many people that work so hard to get us to this great day today. i'm grateful to rec and park for adding george christopher playground to the 2012 park bond. what happened was, we noticed that this park and also glenn park, glenn canyon park was not on the original park bond list. so michael rice, the former president of the glenn park association and i backed by our diamond heights community association advocated for -- to

have us included in the 2012 park bond and we're so grateful for that. as you can see today. and so i'm grateful for all the program managers at rec and park that worked with the neighborhoods on the park design. those program managers, they listened to community input and they developed their design based on that input. matt jasmine started off the plan followed by irene and lead the park and she did an important thing. she led the park through the negotiations with the historic preservation commission. and then more funding into the park. then jackie ho helped us resolve some issues our

neighborhood folks had. and then we really thank as well lauren chavez who expertly managed the construction for the last one and a half years and we also appreciate the work of lamont bishop because even though he wasn't as visible to the neighborhood and to us, we knew he was behind the scenes managing everything and making sure that the construction went well. and then i'm grateful to alice stroud. she was the first coordinator of friends of christopher park. she worked -- she was a parent with the knowy valley nursery school that's right behind us. so the parents and teachers there along with the diamond heights association, we put the friends group together so that there would be a coordinated way to work with rec and park for the community input we thought that was so important. and we thank alice straud. she has a vision for this

emergency, i mean, for this imagination garden over there. and, i think as phil said, this is the first in any of our parks. and i'm grateful to ed shaffner for taking on the role of facilitation of friends of christopher park until brenna mcnulty stepped up. brenna had a huge impact on the development of this park working on the final design plans and it was just wonderful. one of the things she did was save the three historic play structures that are over there and that was convincing supervisor mandelman to appropriate the money for that. and then, not only did brenna create a lot of events that brought people in to the park, she coordinated two amazing

where in the world is christopher park festivals. and the last festival in 2018 brought 1,400 people to this whole area. and i'm so grateful to phil ginsburg and rec and park because rec and park added much more funding beyond the $2.8 million that was in the park bond. some examples are the new fencing around the ball diamond. the pave, the resurfaced path from duncan street. path in the community garden and then down to the park and also which is going to happen soon are the new lights for the tennis courts and resurfacing the tennis courts. so it was just wonderful to have all these additional things that the neighborhood had been advocating for. i'm just immensely grateful to

the rec and park staff and everyone here who works so hard to make this happen today. it's a great day. thank you, very much. >> hello, i'm brenna mcnulty and i'm delighted to be here. this is so exciting and so much has been said and it's hot so i'm going to trim down my acknowledgements. but i want to emphasize that this really is a beautiful example of community driven design and that our district eight offices and supervisors through the years and their staff and the rec and park project management staff consistently showed up met with us, looked for funding to fund things out of scope. listen to our crazy ideas. thank you for getting these

funky old sculptures inspected for safety. thank you to treaty construction for executing them and finding a place to store them during the construction phase and thank you for really, what like i said is a community driven design. we really felt heard. we really felt like people were advocating along with us. maintaining swings, they heard us and came through and we're just so grateful for this whole project team. it's a beautiful playground and exceptionally beautiful playground in an exceptionally beautiful spot. i think for the future for our group, we're going to keep striving to become a more exclusive group. we hope we can bring back the festival and show case more of our artists and neighbors and our businesses here and continue our mission of identifying and supporting the park needs. thank you. >> before you go, i forgot your certificate for friends of

christopher park. so thank you so much for your work. all right. let's cut this ribbon. >> yes. for all the kids that have been waiting so patiently, now is the time for the reward. come on up and let me just do a quick shout out to my team and now to the people who are taking care of this these are the men and women of this space we will steward along with you. so let's cut a ribbon.

>> in 201,755.7 million passengers traveled through san francisco international airport. we have on average 150,000 people traveling through the airport every day. flying can be stressful so we

have introduced therapy dogs to make flying more enjoyable. the wag brigade is a partnership between the airport and the san francisco therapy animal assistant program to bring therapy animals into the airport, into the terminals to make passenger travel more enjoyable. i amgen fer casarian and i work here at san francisco international airport. the idea for therapy dogs got started the day after 9/11. an employee brought his therapy dog to work after 9/11 and he was able to see how his dog was able to relieve passenger's jitter. when we first launched the program back in 2013, our main goal was to destress our

passengers however what we quickly found is that our animals were helping us find a way to connect with our pang. passengers. we find there are a lot of people traveling through the airport who are missing their pets and who are on their road a lot and can't have pets and we have come in contact with a lot of people recently who have lost pet. >> i love the wag brigade. >> one of my favorite parts is walking into the terminals and seeing everybody look up from their device, today everybody is interacting on their cell phone or laptop and we can walk into the terminal with a dog or a pig and people start to interact with each other again and it's on a different level. more of an emotional level. >> i just got off an 11.5 hour

flight and nice to have this distraction in the middle of it. >> we look for wag brigade handlers who are comfortable in stressful situations. >> i like coming to airport it's a lot of fun and the people you talk to are generally people who are missing their dogs. >> they are required to compete a certification process. and they are also required to complete a k9 good citizen test and we look for animals who have experienced working with other organizations such as hospitals and pediatric units and we want to be sure that the animals we are bringing into the airport are good with children and also good with some of our senior travelers. i think toby really likes

meeting kids. that is his favorite thing. he likes to have them pet him and come up to him and he really loves the kids. >> our wag brigade animals can be spotted wearing custom vets and they have custom patches. >> there is never a day that repeats itself and there is never and encounter that repeats itself. we get to do maximum good in a small stretch of time and i have met amazing people who have been thrilled to have the interaction. >> the dogs are here seven days a week, we have 20 dogs and they each come for a two hour shift. >> there is a lot of stress when people have traveling so to from these animals around to ease the stress and help people relax a little bit.

i think it's great. >> one of our dogs has special need and that is tristine. he wears a wheel around. >> he has special shoes and a harness and we get it together in the parking lot and then we get on the air train. he loves it. little kids love him because he is a little lower to the ground so easy to reach and he has this big furry head they get to pet and he loves that. >> he doesn't seem to mind at all. probably one of the happiest dogs in the world. >> many people are nervous when they travel but seeing the dogs is just a wonderful relief. >> what i absolutely love most about it is the look on people's faces, so whenever they are stressed and flying is stressful these days you get these

wonderful smile. >> i am the mom of lilo the pig and she is san francisco's first therapy pig. >> lilo joined the wag brigade as our first pig. >> wag brigade invited us to join the program here and we have done it about a year-and-a-half ago. our visits last 1.5 to 2 hours and it does take a little bit longer to get out of the terminal because we still get a lot of attention and a lot of people that want to interact with lilo. >> i feel honored to be part of the wag brigade. it's very special to meet so

many people and make so many feel happy and people that work here. it's been a great experience for me and a great experience for to toby. >> it's been an extremely successful program, so the next time you are here, stop by and say hi.