certainly within both, like, um within the built environment or the public space environment as well as sort of industry conferences and events. what are things that we could do it as s scale that would really put san francisco on the map again. and then how do we find them? thank you. commissioner dickerson. yeah. turn my mic. i don't really know how to fram. i guess i'll just keep it more of a statement coming from a very optimistic perspective, i'd say. i really feel like san francisco. we have. we have what we need to rebuild san francisco. i believe it's here. i also believe that perspective of um. creating or or giving

opportunity and i'm piggybacking on what my other fellow commissioners were saying. as far as. giving opportunities to people who have shown they have been that stable, small business that have kept the city going giving these people opportunity . now i know there's a gap there because all the buildings aren't owned by the city. we're dealing with the whole rent and ownership and leasing. and i know those dynamics. i'm just thinking there's gotta be a way where the communication with these whether you're a building owner or your leasing out these um, some type of program when introductory. well, this business has been here for 10 years. they're looking to expand . let's create a pilot program where they're ready for

expansion, and the program would allow them to expand in these larger spaces where they've already shown sustainability by being a small business for a certain amount of years. you know, like we have a legacy business legacy business. you have to be in business for 30, plus years in order to qualify, there could be some type of program where small businesses that are looking to expand maybe an application or whatever. and then be able to open the door for established. small business for the expansion. so, um. and i've been privileged. i was a part of a pilot program where i was that, um and, um. and still to this day i have people come from whether b o w d or other representatives to come. look at my building. and i mean i'm a perfect example of that i'm looking for i'm not trying to plug myself. i'm just using me as an example that i'm ready for

expansion. so you know, you take a candidate of someone who's had success in that. so i think that maybe um, an opportunity. to present um and not be afraid of. you know the growth, the growth spurt that's gonna take place, you know, and not be afraid. of the risk. you know, we can. i understand being careful and of course, we're dealing with budgets and policy and legislation. but. i really believe that everything that we need is already here in san francisco. we just have to you know, make room for it and bring and make the invitation available for people. who are ready for that expansion. i think we already have it and i don't want us to underestimate you know, i get the whole outside coming in, but we've done that. i think that this is an opportunity for people who have been here born here raised here who didn't think they had opportunity because the tech world was so magnified that we

now have the ability to kind of pushed everything to the same like ok city. let's rise up and take our city and, um feel it with all the creativity and innovation in the arts and the all of the things that we have that already exists so uh, did that make sense? it did appreciate right. so like to work with you on that so thank you. i appreciate the opportunity. yeah. that was wonderful. there was a lot of verbal head nodding on the front. thank you. i mean to jump off of that one of the notes that i had was towards the end of your presentation, you know, talking about how, um, you know, hoping for people to invest in us, and i really wrote that we need to invest in ourselves right like and that means

building. our business is like and, um, investing in the people who are ready to expand, and perhaps like some sort of like i don't know. i was thinking i was picturing kind of like within our neighborhoods. you know where people are going out and like for us to be able to identify like, hey, i want like , you know, on clement street. we have giorgio's pizza like i would love to have giorgio's expand into downtown or something, you know. and how do we highlight like some of the businesses that we have existing or legacy businesses and give them incentives to be able to like move into downtown areas, and for that to be like the community saying, hey, i love like we love having legacy business presentations and to have community members champion one another and i think that type of like energy would be so good for downtown. and then that in turn, also bringing in, um you know, with your events and everything bringing people into the downtown area to have fun

like that was something that, um , i really enjoyed. i was mentioning this to carry and director tang, but i went to like the holi festival that was in the east cut and it was like it was so cool, you know, and really easy to get there, you know, obviously, by transit and things unfortunately, i did drive and so my car has a lot of colored powder in it, but it was like, you know, i guess i shouldn't have taken uni. um but, you know, i also i also got a lot of good feedback about the world cup viewing parties, different things like that. and you know for us who you know, live in the city for us to really learn how to go downtown again for fun and not just to think of it as a place to go for work really wonderful, so encouraging some of that. um. i also wanted to speak about

transit a little bit. um you know there there is a lot of, um discussion around transit in the neighborhood corridors. i think there's a lot of changes and a lot of things are, um are you know a lot of plans that had been kind of paused because of the pandemic are now coming back into the discussions, and i think a lot of those plans are based off of like, speed and efficiency. right. like we're gonna save x amount of time. um and we're just gonna have to do all these changes to the road and like, you know, x y and z i just would love to think differently about transit because i actually think that speed and efficiency are important. i think, however, i think there are certain things that are other types of barriers for people to use public transit that do not require such um.

large scale interruptions to our commercial corridors throughout the city, so things that i can identify just off of the top of my head are like making the platforms and the transit stations more like stroller friendly, you know. i think that would include, you know, 88 friendly like all these different things like making them just more. exciting to be in, like, have more art and not just billboards have music in the stations have different things that make the station's just much more like inviting and friendly and i think those types of things don't necessarily have to, like disrupt 10 blocks of traffic that doesn't have to take away parking a. i understand that parking is not the priority, but for some businesses, it's still something that. that they rely on for a bit for people to be able to

come and use their business. and that's just the reality of the corridor. i mean, i think, um i think any help in championing those types of like creative thoughts or, like looking at things differently would be really helpful. um the other things and speaking about transit to i'm wondering like with market street. what types of, um what? what do you envision for market street? given that there isn't like car traffic. through much of the downtown area now. in terms of transit. well, in terms of like, how do you see market street kind of like it used to be such a bustling street right like and that was when we did have the car traffic and we had all these things and we had a certain plan for what market street was going to look like, i think, um, pre pandemic and now i just don't know, like are there other plans to activate or to make the street more? i mean, i just feel like it's such a like important vein in our our city. totally um

, i think i mean, i think that it's a really interesting question. and i don't know that i have an answer yet so better market street was was the plan created pre pandemic when it was bustling to an a point that it was like too much, right. and um and i don't know what the plans are now in terms of what we expect and what the projections are around. you know, as we as we see our city recover. and we see new businesses. new offices . new people come, you know, come into downtown for different reasons. like how that plan also evolves. in order to, um like, really serve the new way that that the that downtown functions and that market street needs to function. but i think i mean, that's a great question that i think deserves a lot of thinking. i mean some some of

the ideas in my mind, i think, are that um i think i i'm curious about kind of like the existing demographic data for downtown residents, because i mean for me, i do a lot of organizing within, like neighborhoods, right and um and commercial corridor in neighborhoods and i feel like that's one of the opportunities that downtown could really benefit from is feeling like a neighborhood. and i think right now it's kind of like san francisco feels like okay here san francisco. here's all the neighborhoods that you can hang out in all these neighborhoods. and then there's downtown. but like downtown doesn't have its own like neighborhood personality. yet the way that like many of our neighborhoods actually have you know, almost like human like characteristics , right? like you can almost imagine. who was there, and i feel like the times that i've spent downtown so far. there. there is like a feeling, you know, and there are people who live there and who have invested

their their you know, like that's where they are growing families and doing things and i think to be able to see that and support. that would be really, um would be really cool because then they would be part of san francisco, and they could say, like worse, san franciscans. and i live downtown. yeah i mean, i think that that is the vision and the opportunity is for not is for downtown. right? to evolve. and use its its position . it's very unique position, as like. again bed by all of this transit. really dense. uh it is extremely walkable. two. to really bring in and showcase. all of the neighborhoods in san francisco. no where you can like you were saying, like bring in businesses that are institutions and anchors in our neighborhoods. into downtown, so

that your experience in downtown as a consumer is that this is an integral part of san francisco. and it reflects all of the diversity and the culture and like the uniqueness of san francisco neighborhoods in one place, and kind of teases you to want to go. and like, really go into each one of those neighborhoods, you know, um, while also. i mean, in the last sort of decade, right, there's been more housing built in downtown than any other part of san francisco by far and so i think that there are and it's been in different parts of downtown right where that housing has really concentrated in clustered, and so i think that the organizations were working closely with with a lot of the organizations that are sort of representative of

downtown. um in order. to develop the events and that the activations and the strategies that really respond to like to their neighborhood as part of downtown, so the east cut is different than union square and east cut and union square and mid market are all like very different neighborhoods. all downtown like all within this, like footprint of downtown. and so trying to develop these microstrategy's that all speak to this larger road map, you know, but in a way that serves their neighborhood and how it is growing up. you know? i feel like that type of micro like look at things. could be a really. successful way of making people feel seen and like, enjoy being in their own neighborhood , which then in turn, makes us want to like, actually go check it out. um i'm gonna go ahead

and pass the mic to commissioner herbert. um. well speaking of bart, piggyback on what you said, um it would be great to activate bart. as the channel that's bringing people to downtown. um and create commerce underground. um and art installations underground. all of that could like bleed up to the surface, so to speak. but if you're you know, if you're riding bart, you want to get some flowers on your way home or you want to get an espresso or you know you want to watch a game or whatever there could be a bustling underground. situation happening. um, that would match. what's happening up upstairs on market street. um and again that would take a lot of money and maybe some federal

funding. but that's a that's an interesting opportunity that you know? could be very, very concrete. project. and it would it would encourage people to use bart, you know, and then uni. and leave their cars. happily leave their cars at home because it doesn't take as much time to get anywhere. um, when you're on bart or muni, and it takes a long, long time when you get in the car, you know, but there could be a campaign. for vendors for businesses and for residents. um. yeah. and i think we could activate union square in a similar way. and i will not say anything else after this. thank you so much for your presentation. thank you. vice president zuma's. thank you. i know you've been with us for a

minute, but i wanted to just chime in on the market street topic and particular. um yeah, i think everything my co commissioner said about empowering who's here? i can't. i can't say that enough. and i think market street is a really good example of how san francisco hasn't done a good job of that in the past. um when we've when we tried to bring um . different types of businesses to market street boutique cyclist stores, coffee shops, that kind of thing, um i saw and an environment form of kind of like this. there wasn't a camaraderie with other businesses on market street. it became a honestly, a gentrifying snitch culture was formed and a lot of these, like newer businesses that had the city behind their back behind their back, you know, are pushing them helping them were tag, teaming with the city to go after businesses that maybe had people

loitering in front of them or didn't have as nice store fronts and what we saw was instead of taking a compliance based approach or an approach to help those businesses, um, maintain their storefronts and, uh, we. did like an imminent donate, and we got rid of one um, corner storm particular that, um was really the only place keeping the lights on on that block, and a week after it closed. somebody was shot on that block. and so for me, i'm like. now those businesses that push for that business that one business to leave aren't even there. because they you know, didn't have any more, you know? the neighborhood and so i think it's really important that as we're trying to clean things up that we do it in a way that's really community based bottom up, and it's empowering the businesses that are there and, um specifically i

know we had sf shines that tried to do neighborhood focused activations. i would love to see sf shines. or or a, you know, parallel program. go to the remaining kind of, uh, storefronts that are holding down market street. and say, help, you know? can we help you clean up your storefront, you know, and like, instead of penalizing them, let's let's do the hard work of we have a business here. we have somebody who's done the work to stay on that corridor. let's not push them out. let's try to help them improve. so that's kind of like i feel like this is been the growing theme of our commission in the last couple of years is how do we work with small businesses? um to get them to the standard that the city wants , as opposed to just punishing them for not meeting that level. no, that's great context and thank you. um, i think just a

couple more comments from me. i . one industry that i was interested in, was like education. i think some people have talked about universities coming downtown and then um, and i'm also curious about like smaller universities as well. yeah i mean, that is a real were very. education that i think that the chamber has said. i don't know. director, if you know this, but there are 30 colleges don't in san francisco. right now, um, because of like all the and, like wharton has it's an axon. um and so there are a lot of sort of educational institutions and they're they're small, and they don't necessarily like they, you know, they bring in their sort of like um master level students and above right because they're they're annexes. and so i think that that is a really interesting proposition to us.

ah and the city is really excited about, you know, any educational institution and sort of like might be looking into what what educational institutions we might be able to attract because i think it does play to our strengths, and it does certainly support recovery to have young people, you know, circulating around and being in downtown and, um availing themselves of all of the entertainment and the and the small business, micro culture or ecosystem. that is that is there already i mean, i think of even, um you know, some of the things that i've been mentioning for downtown would be like as you build housing right to also build childcare into it and like , and so when i think about education, i think about actually like all different types of education, right, like childcare as well as, like early education. and then even like even many of these schools

operate like, um, kind of like satellite online. like, you know, there's all these online like master's programs and like different graduate programs. i think those could be really beneficial when they're in your own. apartment complex, you know, like if it was like if some other types of like technical, um i don't know. technical education kind of things were built into like the neighborhood. i feel like people would you know, people would go for that, like i don't know what people are learning now like coding. are people still learning coding? sorry i'm on the small business commission. i don't do you know so but like whatever people want to learn, um will be yeah. coding classes for babies. if you could have that felton environment, um other pieces that i was going to say in terms of retail because i know there's been a lot of talk about, like, you know, retail

and you can square and all those kind of things. um, i'm wondering like i am pre pandemic had some time to be able to travel like a little bit more and like in asia, they have all these like, um, type of like makers malls, and i think it's kind of similar to director tanks like push for flex retail. um, but i don't know. maybe i'm gonna put this out on this public forum. i don't know. maybe maybe somebody will want to do this with me. but i'm thinking like it would be cool to have this giant like makers mall type thing right, but it's like an interactive art. experience too. like i think whatever we gotta do, we gotta like do it like with heart and with like, like, really commit to this like i feel like we've seen a lot of makers fares, and i love them all and we all go to them, but they look like a maker's faire like let's up the next level experience and. and so i feel like internationally.

there's so many different opportunities, like even like looking at other cities and things like that that are bustling. so i feel like san francisco is just we're right there, and i think it's just a matter of us committing to apparently we all have to do this. so but. that is oh, vice president zuma's are you still on? oh, no, that's okay. i think that was pretty much all of my questions. does anybody else have any other comments or. okay well, thank you very much for your presentation today. oh actually, one last comment. um when people do have these random ideas like i got to talk to you and tell it to you? yeah but is there a place where, um, the public and all of our friends and family who have these creative ideas can like, um, share these? yeah. so this is i mean, the director tang actually brought up, i think six months ago, and we my team has been

staffing up. um and so we are working on that now is went. it does not exist yet. but hopefully when you go to the road map to downtown's future in the near future, there will be a way for you to sort of submit ideas. um for recovery or a sign up to get to get updates. on how things are going in the city. so that is coming. stay tuned. okay, great. um, i think now we have to take public comment. okay, great. thank you. any public commenters want to come to the front of the room? press star. three if you're online and want to speak hi. good afternoon commissioners. and um, thank you , director for your presentation . um it was very it was as a citizen. it was really wonderful

to hear that there are plans being developed to address what is a serious problem in our city, and it's um sustainability into the future after the pandemic. um i especially appreciated commissioner dickerson's, um, comments about that. everything we need is here . i really agree with that sentiment, and, um, i was interested in your presentation to see that. um for, uh, improvement of the business climate. the healthcare security ordinance was uh, addressed and that ordinance has been in effect for ah, i think maybe mm . well over 10 years, and it represents a significant. issue for businesses in the kind of

tend to 100 employee level because it requires the employer to provide several dollars. i think it's almost $3 per hour worked toward, um, healthcare expenditures. regardless of whether the employee um uh, needs health care benefits or not, so if someone is a high school student, and they have healthcare through their parents , or they are somebody who qualifies for medicare, and they they have, um healthcare that way they accrue. um uh hcs oh! dollars which the employer must spend or send the city. uh and, um, so anyway, i there's not a lot of awareness about that. i didn't introduce myself. my name is janet tarlov and, um i, um i'm here on behalf of the glen

park merchants association and the san francisco council of district. merchants i didn't mention that because those organizations the best number of our members have fewer than 20 employees, so they are not subject to this ordinance. but it is a it is a significant issue. for those businesses. i said as i said, between 20 and 100 because they are subject to it, and, um in a low unemployment environment, um, the demand for higher wages is significant. and for the people who don't need that benefit those dollars that could be going toward higher wages. go go toward that benefit instead. so thank you very much. there are no colors on the line. okay um, hearing no further callers. public comment is closed. um,

thank you very much. um item number four. item four approval of draft meeting minutes discussion and action item. the commission will discuss and possibly take action to approve the april 24th 2023 draft meeting minutes. commissioners any comments on the minutes and . we can open it up for public comment. there are no commenters in the room. known online. hearing no further callers or comments, public comments and closed commission or just want to make a motion to accept the to approve the draft meeting minutes. i'll make the motion. i'll second the most right?

motion by commissioner dickerson seconded by commissioner herbert herbert. sorry um i'll read the royal commissioner carter absent. commissioner dickerson. yes. commissioner herbert yes, president huey? yes. commissioner tease. cartagena's absent and vice president says yes yes. motion passes. thank you. next item. item six. general public comment. this is a discussion item, allowing members of the public to comment generally on matters that are within the small business commission's jurisdiction, but not on today's calendar and suggest new agenda items for the future. any public comment. any members of the public who would like to make comments on items not on the agenda. there are no callers on the line. or in the room. okay public comment is closed. next item, please item

seven directors report. this is an updated report on the office of small business and small business assistance center department programs, policy and legislative matters. all right. good evening commissioners. and first of all, i also wanna, um, welcome our newest commissioner , tricia gregory of so, yes, i know that the screen is blocking our view, but welcome. um so happy small business week here in san francisco, everyone, um, i know this is a really lovely time for all of us, even though we spent a lot of time advocating for small business every single day. um and many of you working in your small business every single day. this is a time for us to celebrate here in the city. so um, with that, as you saw last week, we have launched the rebrand of the shop. nine sf campaign really trying to draw people to the website as f dot gov slash shop , dine sf as well as the social media with those same handles to encourage and incentivize people

to get out in their neighborhoods and really support their local small businesses instead of shopping online, so that's what we're hoping for. um a couple events coming up. we emailed these to you, but also wanted just to remind you tomorrow. tuesday is the city hall pop up. so it is a maker's faire tomorrow at city hall from 11 am to three pm at city hall northlight court this year featuring a lot of new business about 50% of them are new vendors. um in, uh, this this city hall pop up, so i want to thank marianne thompson from our office for coordinating this event. also on tuesday, just channeling commission ortiz cortina since he's not here, but tomorrow is also from 4 to 6 p.m. the latino entrepreneurs celebration hosted by meta at 2601 mission street. so i'm sure if he were here he would want to invite you to that on wednesday evening is a small business boogie and that's from 5 to 8 p.m. at the ferry building in

san francisco, which is actually home to many small businesses, so it's a great reminder for all of us to support. um, those small businesses in that location. um so again, 5 to 8 p.m. it's a disco themes. so if you want to dress up, please, we welcome you to do so. and then, lastly, on thursday evening is the legacy business mixer, which is hosted by our office. i want to thank rick and michelle from our office for organizing this event, and that's from 5 to 7 p.m. at anchor. public taps. um all are welcome to join. you do not need to be a legacy business and i do understand rsvps are closed right now, but you can still just show up and have fun. um so that's for small business week. and, of course, um, the sf chamber of commerce is hosting a bunch of different events throughout the week. uh and, um , i also wanted to mention that the sf public libraries partnering with our office. and martha yanez from our team is hosting a workshop webinar online on wednesday at noon to

help people who are just thinking about starting a small business. um also wanted to share that you may have seen in the news today that there's a launch of the civic joyful fund. and this is, uh, an initiative with a $2 million project that will deploy five new arts and volunteer focused projects to engage with communities across san francisco over the next six months. so this is not city funding, but this is private funding. um in collaboration between tipping point community and manny's, and so just wanted to make sure we spread the word about this opportunity for different commercial corridors and businesses. and more information is available at civic joy fund .org. uh um lastly just wanted to share we continue to really enjoy getting to know businesses through our merchant walks last since the last meeting. we've been out at dogpatch and also chestnut street. coming up this week is will be out on sacramento street. and then after that on valencia street, um the week

after so just continuing to do these every week and, um, really hearing directly from businesses. um also forgot we were out on mission street as well. mission um, by seventh last week. so those are all of my updates and happy to answer any questions. thank you very much. director, tank commissioners. any questions? seem seeing no questions any public comment. there is none. okay well hearing no further comments. public comments is closed. um next item, please. item eight commissioner discussion and new business. this is a discussion item. allows president, vice president and commissioners to report on recent small business activities , make announcements and make inquiries of staff. see. any new

business. for any commissioner. oh, vice president. thank you. um. something that i wanted to flag and see if the office has gotten any uh um. concerns from small businesses around this, but i know the small property owners association. it how'd it in their news letter recently, and it's something that some businesses um and in my community are dealing with is that insurance? companies are not ensuring, um. businesses or sorry, um, brick and mortars that were built. like pre 19th, or 1917 yeah. and um, it's definitely something we need to flag because that means there's commercial businesses and old buildings that are, you know, dealing with not being insured, right? um and it's yeah, it's

becoming a kind of an issue for a lot of small property owners who are in you know, single story. old old units. so, um i wanted to know if that's something that came to your guys is played, or, um, we haven't heard anything of that. and i guess just to clarify the question, is it that the insurance companies not ensuring the property or the business tenant? if there's a business in it in the appropriate guess i'm i'm a little bit about both. yeah from what i understand, like, um there. like if you're if there's any changes that are made, and even if, at least in the couple examples that that i've been told tenant improvements were asked to be done. they were done. and then the insurance companies are still like, oh, if the building is from this era, so you know we're not going to deal within. i think i'm probably not the expert to explain this to you, but it was in the small property owners newsletter, so it is a

kind of across the board issue right now. okay we can look into that. but our office has not heard anything of that sort. um recently forever. yeah, okay. um and then the second thing that was brought to my attention is, um. to ask about the sister city program and where that lives and why has no nexus to our small business demographic community? um and i think it could be a really beautiful thing if we connected it, um, we have, like demographic communities here that aren't really represented by that program. um, it's it maintains, just like political ties, but it really doesn't disseminate into the community and to our small business ecosystem. and i think, um a lot of communities that, um. could be represented in in that kind of economic relationship that the city has with other cities.

um i just think that it might be something that we could explore, like where it lives. and if there is an existing nexus to small business, or if there's a way we can make that. um i think most of it lives within the mayor's office, and i think that small business is a component of the overall. you know, multi factors for what goes into a decision around whether we form a sister city relationship with another entity, so i've i've only been on one sister city trip over to cork, ireland, and you know, one of the things that they highlighted, for example, was their version of what we would consider like our ferry building. and um, the businesses in that, um in that space and what they were doing and how they activate that area, so i do know that small business is a feature and a component of, um these, but there are many factors that go into a decision around development of sister city relationship. so our

existing sister city committees like for example, like do we have a small business representative on any of those, you know, like that's kind of just like, how are we tying it back to our communities? here is my question. yeah and i am really not the right person to answer that. but again, i do know that it is one component of , um again like the visits or discussion points, so it's certainly a part of it. it's just there are many, many different, um, things that people are looking at when they're talking about sister city relationships. okay? thank you. cool that. that's something interesting to look into. thank you, um before i call on commissioner gregory. i just wanted to, um welcome you more formally to the commission. sometimes i get a little caught up in the things that i need to say, and i don't always know how to say them so thank you so much

for, um, deciding to serve on this commission. i hope you have you know, i hope you have fun, and i don't want to put you on the spot to have to say too much. maybe on you know today, but when you want to, i would love you know for you, too. have some time to be able to you know, share a little bit about yourself as well as, um like yeah, if you. if you want a few minutes yeah. well thank you. and i'm honored to be here. um i come from the construction part of small businesses. and uh, my huge advocate for that, so it's for me. it's like what commissioner did. dickerson was seen that we have everything in the city to help the city thrive and so especially construction companies when you hear about all this money coming into san francisco and getting new businesses, we are stuck about

whether it's going to happen to us what is going to happen to the really small construction companies who are really already struggling. to stay alive in the city of san francisco. um so i would like to see more discussion on how we can help those companies. um but that's pretty much the background that i have. um especially advocate in the black and brown construction because that um those are the people who really are not, uh developing their companies are not moving ahead. uh they're struggling a lot, especially in district 10. so. although i know a lot of my step is going to be questions towards that, because in my mind if you are in if the construction services are thriving, right and they're on almost every project in the city of san francisco, and as you know, they're putting billions of dollars into san francisco. so imagine if those

countries construction companies had the contracts on those companies. then your stores will survive. then your small businesses will survive. then your corner stores will survive because we are the people who hire the community, so all of our money goes back into the community. so that's right. that's my background. i'm a little bit passionate about it. so sorry. but i would like to discuss thing about the healthcare. um i do here in a lot of the construction companies, the small construction companies also that that is a problem. because a lot of them are union. guys and so if a small construction company has to pay into the healthcare but. the unions are already paying their health care. it is. it is a big issue for small companies, so i don't i'm new to

this. i don't know how we discussed that or how we help the small companies with that, but i would love to see some kind of discussion around that. thank you. thank you for having me. thank you. that's that's exactly how you bring it up. yeah yeah. thank you. we're so excited to have you on the commission. um let's see. i don't think i have anything else. yeah. and again. see i have no idea how to go forward after but any public comment there's one color on the line. alright well, public comment is closed. no no, there's one color on. sorry you said okay. i'm not listening. color. please go ahead. so i'm listening to you all you know. and. uh i heard

the woman who just spoke about micro businesses. and i know a lot about it. ah! at one time. my office was responsible. for creating the local business enterprise women business enterprise nonprofit enterprise. and submitting the models to the contract monitoring division. so the small business should work with common chew. who is the city administrator. because the contract monitoring division comes under her. and i remember participating. and asking that small business chaplin, seuin. it was a man. i don't see him there anymore. and he said, oh, you know, um, that small

business doesn't ah got involved in. the grants. oh, has been the businesses right kind of some policymakers, and that makes no sense. or like the other commissioner, who knows me? i was talking about. the variety. often businesses, small businesses from yemen. and from . maybe someplace jerusalem or ramallah. um, we need two. to have sister relationships with people. this this country's. we are sanctions. cisco where the united nations formed, but some of y'all need an orientation, so i got no orientation that the

united nations was formed in sentence isco united nations plaza, but nobody knows what's happening there, except like it was polluted and contaminated by the addicts. so. daniel have this commissions and the mayor pardons whoever she likes to have point on this commission. we all have to step up that represent san francisco at the highest standard. and the highest standard learn about it. united nation and you'll learn a lot about business and how to interact with communities all over the world. there is san francisco is unique because we embrace everybody. but if we don't embrace small businesses, especially those who who are in dire straits then you know this commissions are for nothing this pop up, said all that's something that you know the they

are. the generation likes. but we need to pop up with the older generation, too. thank you very much. all right. there are no other commenters in the queue. okay, seeing them. public commenters. no further callers, um public comment is closed. next item, please. item nine adjournment. as i've covered tv , please show the office of small business slide. we will end with a reminder that the small business commission is official public forum to voice your opinions and concerns about policies that affect the economic vitality of small businesses in san francisco. if you need assistance with small business matters continue to reach out to the office of small business. meeting's adjourned.

didn't - >> sound familiar do you keep on getting up there's an easier way. >> of course there's easier way get rid of of mosquito they breed whatever this is water no water no

mosquito mosquito feed on good blood the eggs hatch and stay near the waters san francisco to breathe and the adult underlying mosquito waits on the as many until it's sexuality hardens water pools in any areas and creates places you'll not normally think of budget and any container that holds water and hidden in bushes or else were dump the water and do it over soil not into a drain the larva can continue growing in the pooled water is sewage disthe first of its kind the area if the sewage is two extreme have a licensed plumber assist water pools in rain gutters and

snaking and cleaning out the water when keep the water from pooling and keep in mind that mosquito breed in other waters like catch balgsz and construction barriers interest crawl spaces with clmg is an issue you may have is week to cause the water to collect this is an sour of mosquito so for buildings just fix the clean air act drains and catch basins can be mosquito ground it will eliminate it as a possible location keep shrubbery and growths estimated any water to can be seen and eliminated birdbath and fountains and uncovered hot tubs mosquito breed but it is difficult to dump the water out of a hot top

can't dump the water adding mosquito finish rids the source of mosquito there are also traditionally methods to protect you installing screens on windows and doors and using a mosquito net and politically aau planet take the time to do the things we've mentioned to eliminate standing water and make sure that mosquito are not a problem on your property remember no water no mosquito >> who doesn't love cable cars? charging emissions and we're free which we're proud of you know, it's not much free left in the world anymore so we managed to do that through donations and through our gift shops. you got

a real look and real appreciation of what early transit systems are like. this was the transit of the day from about 1875 to about 1893 or later, you know. cable car museum is free, come on in. take a day. come down. rediscover the city. you can spend as time you want and you don't have to make reservations and it's important to be free because we want them to develop a love for cable cars so they do continue to support whether they live here or other places and people come in and say, yes, i have passed by and heard of this and never come in and they always enjoy themselves. people love cable cars and there's none left in the world so if you want to ride a cable car, you've got to come to san francisco. that what makes the city. without the cable cars, you lose part of that, you know, because people who come here and they love it and they love the history ask they can ride a cable car that has been running since 1888 or 1889. wow! that's something.

can't do that with other historical museums. rarely, have i run into anybody from outside who didn't come in and didn't feel better from knowing something about the city. it's a true experience you'll remember. i hope they walk away with a greater appreciation for the history, with the mechanics with people are fascinated by the winding machine and i hope the appreciation, which is a part of our mission and these young kids will appreciate cable cars and the ones who live here and other places, they can make sure there will always be cable cars in san francisco because once they are gone, they are gone. it's the heartbeat of san francisco that founded the cable and the slot and without the cable cars, yeah, we would lose something in san francisco. we would lose part of its heart and soul. it wouldn't be san francisco without cable cars. [bell ringing]

[music] digital literacy is something severely lacking in our world today and it takes a lot to understand that. food water and shelter have basic necessities so long we forget about wifi and connection to the interenet and when you go into communities and realize peep ople are not able to load homework and talk to teachers and out of touch with the world. by providing the network and system we are able to allow them to keep up in the modern age. >> folks still were not served by internet throughout the city and tended to be low income people, people in affordable housing. people of color and limited english and seniors, all those are high concentrations in affordable housing, so we thought given that we had a fiber network that stretched throughout the city reaching deep

into neighborhoods that would be a perfect opportunity to address it in san francisco. >> the infrastructure the city and star help us run are dejtle programs. it played a critical role from the time we opened during covid till now so we were able to collaborate with online services that offer tutoring and school support. it also helped us be able to log the kids on for online school during covid, in addition to like, now that everybody has switched most of their curriculum online we can log kids on to the online homework, check grades in addition to helping parent learn how to use the school system portm >> the office of digital equity our goal fiber to housing is insure we have all three legs

of the 3 legged stool. the first leg is high quality internet connection. we liken the high quality internet connection to the highway. the second leg is high quality devices. this is the car. you want to make sure the specks on the car is up to speed and lastly, it is important to get kind of that driver's education to learn how to navigate the road, to know the signs to watch out for in terms of making sure you are school while you are surfing the internet it is private so that is the digital literacy piece. >> my daily life i need the internet just to do pretty much everything. the internet has taken so much control over people's daily lives including myself that i just need it to get certain jobs done, i need it for my life. i need it. >> the program really seeks to where ever possible provide a

service that's equivalent or higher speed and quality as the best commercial service . >> we serve all of san francisco, but we definitely have to be equitable in our distribution of services. that means everybody gets what they need to be successful. >> actually one of the most gratifying part of my work here at department of technology, it is really bringing city resources to address problems faced with our communities with the highest need. >> i think it is important because i grew up in a low income community without internet access and it is hard. i think it is important for everyone to have internet access no matter their income and maybe one day their kid will have internet access for us and help the school and with their skills.

test, test, test, test

>> good morning the meeting will come to order welcome to may 27 of budget and finance. i'm supervisor chan chair and i'm joined by rafael mandelman and supervisor safai. shortly. our clerk is brent jap lipa i would like to thank sfgovtv. >> make sure to silence cell

phones and trannics not to sprupt the proceedings the board of supervisors are convening hybrid meetings. still providing remote access via phone. public comments taken on each item and those in person will speak first and then those waiting on the phone line. for those watching remote the comment number is streaming you will will be muted. when your item come up those in person line up to speak. e mail comment to myself at brent. jal ip a sfgov.org.

if you submit comment e mill tell be forward to the supervisors included as part of the official file. you may send written comments to our office in city hall 1 dr. carlton b. goodlett place room 224 we have raymond with our office of civic engage am to provide services for hearing for this committee to receive an update on the implementation on the healthy airport ordinance and madam chair yments will appear on the agenda of may 23 unless otherwise stated. >> thank you. mr. clerk before we call item one i would like to remind everyone we will have the budget and legislative analyst report

for item 2, 4 and 5 on today's agenda. and so we will have the department presentation and followed by the report. then take questions then public commentful and with that, mr. clerk. call item one >> item 1 is a hear to receive an update on the implementation of the healthy airport ordinance including presentationos contractors responsible for complying with the healthy airport ordinance compare contract wages and other comparable industries. whether airport contractor loses and contracts compliance language with the ordinance and worker retention for low wage workers versus others utilizing data. member who is are joining us and wish to comment. call the call in number at 415-554-0001, access code: 2604

967 6141 ##. press star 3 to enters the line. when the system indicates you have been unmuted that is your significant until to comment. as mentioned, we are working with raymond from the office of civic engagement for services. mr. boris thank you for joining us and provide our public comment instructions in language. [instructions in another language] thank you.

madam chair >> today we are here joined by president's aaron peskin and this is the hearing that i'm proud to cosponsor and president peskin would you like to r? >> thank you, chair chan and members of budget and finance commit each thank you for scheduling this item this morning. i wanted to start out by way of a little explanation as to why i asked for this matter to be schedule at the budget and finance committee of the board of supervisors. as it relates to -- health care.

part of the reason present to are heard at budget and finance committee. it is twofold. one is with the acknowledgment that when our city workers direct city employees or whether they are employees of contractors that do work on city properties like our airport. when than i don't have adequate health care. that ultimate low impacts our budget in other ways. at our d. public health. and has other financial impacts to the city and county of san francisco. i also thought it important to hold at the committee because we are just a couple weeks away from the beginning of the formal

part of the budget process where in the mayor will introduce the proposed budget for the coming fiscal year. and about 2 weeks from today. and that budget includes san francisco airport which a department of the city. and so i thought it important to have this hearing today. let me start by saying something that i don't think many people are aware of. i think some of you, colleagues may be aware of, which is that the san francisco healthy airport ordinance is the subject of litigation from industry trade group, which upon represents a host of airlines. the group is, airlines for

america example they follow lawsuit against the city of san francisco back in 2021. seek an injunction against this ordinance which is know ordinance byes way, the board of supervisors passed unanimously and the mayor signed into law. and they are attempting to nullifiy that law. the good new system this in professional left year a federal judge rule in the favor of the city and county of san francisco and upheld that ordinance upon finding that the city was acting as a market participate not as a regular when it imposed new conditions on agreements at sfo with airlines. unfortunately the airlines for america has been appealed the matter to the federal nightninth

circuit court. and we are awaiting a decision in that matter. and then, of course, either party can decide whether or not they wish to pursue to the united states supreme court. i thought that is important because it has not only fiscal implications to san francisco but more important low to the workers that dot workday in and day out. who fall in 2 represented categories. one and i wanted to use this opportunity to speak with representatives freshman the airport and then representatives from the affected representatives of those folk who is work at the airport. and also talk about that is

right and safe for the airport, which name low is retention of employees. which leads to stability and security. and with that,mented to ask mr. kathy widener from the san francisco international airport, a few questions and i see that supervisor safai wants to jump in and welcome opening remarks from ms. widener through the chair if you want to acknowledge supervisor safai. >> madam chair, >> thank you. why buffer go, i want to say give an opportunity to associate myself with supervisor president peskin's comments. this has been a situation going on for a time out at the airport. we have a workforce that is over worked, under appreciated and

under paid. and they have been struggling consistent low to everyone the dignity competence respect they should be afforded. the right benefits. the right health care. the right recognition. and -- although our economy has been -- under assault. our airline industry is coming back with vigor and so it suspect in the an industry that is hurting the way others are. so we have the ordinances for a reason. we have the the power here the board of supervisors in terms of contracts and negotiations. the power legislatively to set mandates with worker protections and right and if the worker protection and rights are not being followed, it impacts the ability of contracts and negotiations going forward. that's where we are. i want to say that workers

deserve. to have the law follow when it come to health carech health care benefits they deserve to have the dignity and he respect and pay afforded and we have the ability to bring both sides together to have a more positive outcome and solution. i mean. these protests and strikes have been going on for scombreers should not drag on like this. we should be out in front of setting a model for the nation given the resources we have in the city. want to appreciate supervisor president peskin and chair chan for calling the hearing and you know i stand here red to help move conversation forward and appreciate the workers taking time to come here today as well as the representatives from the airport. >> thank you. and this all needs to be seen through the lens of -- the

airline industry as a whole. in the time of the pandemic. and i think it is important to note that -- this industry, which historically has been heavily subsidized by our federal government and as well as by our state government. got an extraordinary amount of federal large, bail outs. during the pandemic. i think collectively, close to 45 billion dollars. as well as a host of tax breaks upon around sales tax for fuel. exemptions from fuel regulations. the list goes on. but with that, if you have opening comments, please, prosecute seed and i have a

number of questions for you. thank you. i'm the government affair's director at san francisco airport. if you would like i would be help to briefly address the questions this were proposed in the hearing. >> okay. the first question proposed in the for the update of the healthy airport ordinance was to provide a list of responsible companies that are responsible everresonsible for the health airport ordinance. i did submit a list of covered employers there are 70 airlines including cargo and passengers and 91 service providers i submitted it to the clerk and have copies for you, if you like. >> we have them. >> great. >> second question was comparison of contractor worker wages with other industries.

this is not something a study we have available nouchl but i can tell you we don't have that exactly and i would be happy to look into it further there is no other airport in the country that has a quality standards program. wage, which is 50 cents boost city's minimum compensation ordinance this is the baseerate for qsp employers at the airport >> and so we get it that is still not 20 dollars. >> this is currently 19.15 is the mco and the qsp is 19.65 now. would be an annual income of 41 thousand dollars. >> correct that , is the base pay we get you further data on the ranges yes, that is the minimum. by comparison i'm not sure if this was the comparable

industries you were asking about. san jose airport goes by living wage ordinance of 18.86 and the port of oak land airport goes by a living wage ordinance of 16.93. to compare. >> the third question was whether the san francisco airport contractor loses and contracts include compliance language with the healthy airport's ordinance. the short answer is, yes. those are contract and loses which is when we have with the service providers. all have language requiring them informing them of their hco, mco, hao requirements for doing business at the airport. >> presumablely, if the federal court action were successful and the law was nullified, i note, thank you city attorney's office you

prevailed in the district federal court. and -- the ninth circuit would have to reverse. although i note that the ninth circuit as trump appointees. if it were to be nullified, then it would not apply? is this correct? >> that's my understanding i defer to the city attorney's office who is litigating that case. >> question i'm requesting is -- in so farz the loses say have you to comply with the law. >> yes. >> is there may be this is through the chair to the city attorney, is well a contract theory here this they would have to do it boy contract if it was in an agreement between the emplayer and employee organization? the bargain unit? >> deputy city attorneyan

pierson the question whether if in the event a court invalidate the ordinance whether still could be an argument that the parties need to comply that provision had been carried forward in a bargaining agreement? >> it it is a 2 part question . question one is if the court invalidates is there a reference to it originally in the lease. you have to comply with our law include thanksgiving law specifically. would that notion carry overeen if the court invalidated? it it is hard for mow to speculate i would think that we no longer able to enforce that term as to an ordinance that has been invalidated. >> second part is to the extent that the employor as a matter of collective bargaining had enter

in an mou with the employee organization, i would assume that is a matter of contract that would last as long as that collective bargaining agreement apart from whether or not the hcao had been invalidated? >> i'm not able to speculate about that. those are the, how they negotiated the terms is beyond the scope of when my office is aware with. i'm not sure had arguments would be made that would be binding or not. okay. but the short answer to question 3 is, yes. >> yes. and i have provided that contract language to the clerk as part of the file and have copies for you. >> we are in receipt of those that takes us to number 4. >> number 4 more complicated. number 4 is a question of worker retention for low wage workers versus other workers utilizing

badge data and requesting the san francisco airport to present that data. >> this is not something i have now. we can certainly look at it. in the past, we had a steady on the question of wages versus retention or in support of retention at the airport around our quality standard's program that was done by the uc berkeley school of labor, i believe. that is manage that needs to get looked at again. from the old study i tell that you was in support of our qsp. higher wages help retention. that's the base you of our program. gi think when we hear from ms. martin they have data that has become known as to the retention so we can drill down in this a bit. do you have a sense of how many workers that the airport would estimate would lose their health care if the healthy airport

ordinanced be struck down? i don't. i don't want to speculate i might look to local twol to help me they may have a better answer. thousands i don't have a specific number for you. >> and do you have any updates that you can share with us as to how conversations are going. i know the airport has been involved between usww and the airline consortium and may be explain how for all of our etification how that process works. >> okay. so we are separating from hao now? >> correct. >> want to make sure i answered your questions on that. >> okay. my understanding is that the service providers that contract with our airlines that receive permits from us to operate are required to comply with mco,

hco, all of the hcao, all of the standards that the board pass exclude that we enforce with olsech there is a question or on going notion around retention wage and longevity wages. those would be paid for by the service providers to employees and then hopefully this is when we are trying to accomplish, that would flow through the airlines to pay service provide and pay workers a higher wage. >> can you characterize the work we are talking about? >> baggage handlers. cabin cleaners. wheel chair pushers. i don't want to leave anyone out t. is all employees that have access to our air fields that service the pliance. clone the pliance get passengers

to the plain its is badge employee who is have access to the air field. >> and -- no, appreciate t. and now why don't we drill down into the health of the airline industry. i said a bit about how much cares act was bestowed by federal government in their payroll support program which is to break it down united airlines accepts 11 billion dollars in bail out monfret pandemic. american airlines 12. 8 billion. southwest 7.2 bvenlt delta 12

billionful. can you tell us the largest carrier at sfo? >> united, alaska. american. perhaps southwest. gi think southwest is 5. >> i think delta. delta, southwest. don't quote me. those would be the big 5? >> absolutely. and the big 5 nationwide? >> yes. in an industry that has consolidated. >> yes , sir. >> and relative to the health and profit of the airline industry in america, and any observations you want to share? >> i don't want to peek on behalf of the airlines but i tell fruan airport perspective planes are full. people are traveling. the industry is rebounding. our traffic is increasing. so anecdotally i assume that would flow through to the airlines. >> relative to airport and

plane recovery from the pandemic we are at or propping prepandemic levels >> yes, almost. we are currently at 80% recover friday prepandemic. that will increase over the sum and as we see a return of traffic from china. we anticipate will be back to prepandemic levels by 2024 or 5. are you aware of the aviation trade group known as international air transport association projections that in 2023, airline industry as a whole is estimated to -- garner 5 billion in profits over about 780 billion dollars in revenues? >> not specifically but this

tracks with when we are seeing. >> colleagues, well, i mean these are obvious questions but they do get to something i discussed off line having to do with the salary for a full time qsp employee. which we discussed 19.65 an hour about 41 thousand dollars a year. which would be from a housing stand point low income. how does the airport anticipate workers at these pay grades being able to make copayments for health care? >> my understanding is this there is -- with the hao there

is in the a copayment it it is free health care for members and their families. >> right. but if the airline industry through aviation for america, which is suing this board of supervisors and this mayor and this city and county prevail; presumablely that is something the airport has to think about. i mean retention and having employees to perform. airline cabin cleaning. moving trans porting individuals around the airport. all of these really primary functions of the viability of an airport i mean how are you not only going to retain employees but recruit employees. >> so. i think that is a challenge that alegality of industries are facing. i certainly take your point this is in the a salary that is

sustainable in the bay area that will be something if the lawsuit against the city and the airport were successful that we valid to look at through our qsp program this . is dependsant on the outcome of the lawsuit. why here is what i'm getting to, which is -- could the airport envision a world where in these individuals become airport employees. not contractors or subcontractors hired by airlines. y where in through hour master agreements with airlines, through leases, lease and use agreements, we pass those costos to the airline industry? i say this knowing the budget is coming in 2 weeks. >> understood. it is an interesting idea i don't know that is something we have looked at. as you know we are residual

based airport. any cost we take on would get passed on to the airline through rates and charges and lease and use agreement they would pay for the increases. so, decrease the cost of degree business in san francisco airport. jot use and lease agreement before this committee and i guess we need to get willing eyeos it. if we adopted. would it need to be amended in order to achieve sfo as a city agency directly hiring. and could be different models we could enter in agreements with contract sxors we are the contracting authority. or we can go down the road of having them be city employees.

can would -- those costs in either one of those models as the use and lease agreement before this committee contemplated allow you to pass to the airlines. >> i believe and again i need to get back up on this. i think that the rates and charges would be the vehicles for that the lose and use agreement is negotiated agreement with the airport and the airlines. we would have to have the airlines buy in to that concept. i don't know i don't think we ever floatd that with them. rate and charges may be that is something the airport sets. and the mission approves. >> but would require the airline industry to receive? not as much as the lease and use agreement which is a direct negotiated document between the airport and the airlines that do business at sfo. if that were and this is i'm way

above my pay grade if that was called out in the contemplayed use and lease agreement and agreed to by the airline industry then we could easily adopt one of those models? >> i don't know about usually i have to see but yes, you hit on the critical point it would have to have buy in from the airline industry if going through the lease and use process. >> okay. leases and use and lease agreement vs to have buy in by this board so i get it. i don't know if colleagues you have questions. and i know this next up, thank you mr. widener. i have a quick follow occupy that question. knowing the lawsuit pending with the ordinance the healthy airport ordinance and the crux of it is about the heck and benefits for the employees whether there are city and county employees or whether

there are you know as considered subcan transactor during this lease agreement, with airline, you know during the conversation has the upon air ever explored this at all? >> just to be clear the model that president peskin mentioned about the service provider employees become sfo city employees, i have not heard of that. this is not coming part of the situation >> now the way it works is the airlines enter in agreements with a host of different contractors and they may have have subcontractors and we lease to the airlines. >> we give the service providers the contractors the airline contractors a permit to operate at the airport that is where we capture all the requirements

that the base city requirements for compensation, health care, healthy airports ordinance, that is all required in the permit. based on had the board and the mayor pass. those are not just airport specific aside from the healthy airport ordinance the mco, hco are citywide requirements. that get put in the perimism that's how it exists now. i'm just -- thinking about the fact that is in the permit and then they turn around and sue for something that, esupon cents they took title 2 knowingly. why don't we hear from jane martin from usww.

absolutely. i god bless. yes, why don't we open this up for public comment and we will go to mrs. martin. -- yes. i understand. we gotta get back to work. madam chair. turn it become to you. >> sounds good. let's go to public comment >> thank you. members who wish to speak on this hearing and joining in person line up now along the curtains for those remotely and have not press star 3 if you wish to enter the line and for all those already in the queue wait until the system indicated you have been unmuted then begin your comments. and said in the beginning of the hearing we are working with ocf to provide service and tell us if you need it repeat our public ment information again.

[public comment information in another language] good morning i work as i bar tendser mission bar and grill a local 2 member for 10 years there. i got my job at the airport.

because of the health care. i'm a father of 2. if i didn't have that health care. working they don't have the same

ability to fight for their rights as we do in local 2 in the airport. i'm here today to peek for them and hope we keep the standard at the level of manage we can be proud of. and -- make everybody healthy. >> thank you very much. >> thank you. >> thank you for joining us, tom. >> next speaker, please. >> i'm molly gomez and work at sfo i have been there since 1980 and i have worked for host for 40 years during the pandemic i was laid up. i'm a bar upon tendser at sfo giant's club. i'm happy that we have good heck and we fought for this we have been through many negotiations i spoken to you to maintain our health care and that was one of the big fights in the last

contract. having good health care i have 2 children and raising them and not worrying about the health care that they have preventative and emergency care. those other most important things with heck and able to have that -- you know when you are ill and you don't have heck and think about is this pain something minor or big? and if you don't have good health care and choose with i will feed my family today or i'm going to see if this is a big or little pain. i don't know what it is. i know of 2 women that had terrible health care. they were waiting to turn 65 to get med care they both died buzz they waited. having the health care workers not having heck especially if it is across the tarmac from us.

they are work nothing horrible conscience. cold. good morning, everybody. i'm name nathanial. and i work for 23 dwreers. i'm happy today. my family is happy. my coworker are happy. because i'm protect my family. my coworker. pay in the medical bill, too. and would like medical that. and a few months ago, i get a [inaudible]. and i get the [inaudible] as soon as possible. because i know i have a healthy

[inaudible]. i don't have to think about temperature later on, i received a bill. 1 for 800 dollars i have with me. other for 100 something. i don't worry too much. because i had the healthy ordinance. and that protect me. before this, the insurance. that is expensive. i was fixated by medical bed. i was living with pain. by the fear of it will gechlt

our happiness taken away and turn to sadness. our happiness is in your hand. don't we want to live. live with it. >> . good morning. i have a bit nervous. >> don't be nervous and come closer to the microphone. >> i need to speak out i want everybody to know when we need. so, my name is pearly. i have been look working in san francisco 14 years. system. 19 years.

am i'm really grateful for this help because -- my husband has kidney problem. and he also long-term -- by service for his life. about this listen so he cannot continue to work. every month i need to pay our medical insurance premium like 900 a mont and also our insurance dedeckable.

4500 a year i pay 15,000 for the medical care for my family of i'm really -- not afford this. and give me a lot of pressure. because of this i never keep up have any opportunity to work especially over time. even i'm tired i don't have any days off. i still working. i believe in here a lot of person the same thing like me. i still remember before we have speaker's time e lapsed. i work straight.

we believe you, thank you, pearly. keep understands we have all the people. we heard your story. thank you. before i start the time i want to reminds the cameras -- if you can silence your cell phones and have a standing room if you are not in line to provide comment if you could take a seat.

good morning. board of supervisors. my name is nester i work at the airport. and i work for the city for 14 years. i'm on the bargaining team for the passenger service contract. thank you for being here to stand with the people. same with many other people who are here today who need to feed their families. companies are cutting hours and not offering high enough wages.

many people drive across the bay area from places like sacramento. come to san francisco. unless companies and the airline give us higher wages, in full time hours turn over will be high. retention will be low and there will be flight delays, why? because low pay causes delays. we need to keep standing together and we can win the respect where we are all. when we fight we win when we fight. we win. thank you, so much. mruz mrauz thank you.

ef 2014 because my departments was suffered i was forced to work over time. one of my i got in the car. i have seen it from [inaudible] we have forced me to go to costco regularly. that is shipment that is why on the top from my rest and money living expenses. i feel a lot -- a financial burden. living in san francisco. i'm really thankful for the mih

provide by the health care -- ordinance. because it provide basically level of for the mra. and support living in the high cost city like san francisco. i can't say that my quality of life it is held a lot with my bill. that allow me to stay working. the pay at sfo is not high for how much hour i work.

next speaker, please. my job to prepare the aircraft cloning supply for u notice the

airlines i was a worker this spoke at the board of supervisors fighting for fordable health care i could not afford my husband medical care needed dialysis 3 times a week for 7 years he passed in 2011. left year i finished paying off his medical dent the total was 15,000 it to being me 12 years to pay off. >> now the health care. 250 a month. i'm scare federal than i take the heck hell happen if i get 61600 for rent utilities 250 had

you add transportation and toed they are 2,000 a mont income is 2200 if than i take my health care we will not pay our rent we could be homeless. i'm on the union negotiating commito we are frustrated most cocorkers. over time to survive.

we are busy at w well are not enough people there are flights we are always rushing and always on feet and give us a high quota to do my shoulders are aching from working so hard we are asking for fair salary and appreciate support. >> thank you. >> good morning i'm nancy hane i w in the airport now. prefer to working for the airport i start working a career rental car company. and i receive a small pension. my wife and i were survived by social security and this pension.

i have on my vacation nor the movie lately. the union have been negotiates with the airline for wage increasing prepandemic. and until now the airline refuse to offer a dime. i am very disappointed along with my coworker the airline make a huge profit and receiving machine frethe u.s. gentleman. during covid money i never made to the people like me and my coworker in san francisco.

as we call essential worker at the airport. i hope the airport authority and county of san francisco will spend negotiation with the worker for bargaining contract we can survive with the hard time i thank you for talk. >> thank you. keep it is applause down we have a rowel about oddable support. if you like had the speaker is saying wave your hand in supportful thank you so much. >> hello i'm renaldo a guard for the last year. i came here because i love it one of my passions cars. and use of perform live music playing guitar i thought it would be better for my health.

as a guarded terror mack. many of coworkers we make surety airports safe. very key. >> while we have high responsibility, we make very low wage its is shocking once i get in the conversation with member and ask me when i do. it is embarrassing. i took a pay cut to in to sfo and wages are so low it impacts my quality of life. i try to buy toed. pay for transportationer go on vacations even a simple 3 day to robeo or to monterey with the wife it is undoable because of the cost of hotels. i don't have many options. everyone who everyone when works a full time job deserves to make enough money.

>> we deserve to thrive i'm here to ask you for support for the workers at sfo. we with win i fair contract. thank you for your time. next speaker, please. i'm an city vice president for the usww i worked worry aviation security as a bag screener for 10 years the job was 150 workers in my department now down to 63 that is in the because of passenger flying now there are getting more plevin bunkham flights than in the past t. is because low wages. low wages cause the low wages cause delay and when that means is that without proper wages we

are losing people regular low and they are going to not just we are not competitive with burger king. there are operations paying more then and there when people are paid at the airport. airports one of my coworkers said essential wars. we have not seen that responsibility met by the g. you know we the board of supervisors has helped us in the pedestrian and appreciate all that they have done and appreciate all what you can do. i thought with my upon upon union stoornsd. required our emplayers to provide health care. they do. unfortunately it is full time employees. so their solution the emplayers are than i meeting the requirements by law, yes. by heart, in.

we wish we are passenger service negotiating our new contract i encourage to you contact the employers to stand with them. thank you. >> thank you. mruz mrauz next speaker, please. good morning i'm rosa shields a commune service director at san mateo labor council. sf oshg the second emplayer to the county and san mateo. and as a community service director i deal with workers experiencing hardship. financial instability toed and housing insecurity and the most calls come from sfo workers. many of them are on the brink of homelessness. you heard are struggling to pay bills and rent and health insurance even though we have the qsp. this should be a floor and the wages the contractors are

proposing. many wars are struggling the on set of the pandemic a food distribution to help workers access foot food and we are serving upwards of 500 families a month from the airport. as local, state and federal benefits around covid are ending, many workers are experiencing benefits, cliffs. can't access food. gas and living. there is a cost of living crisis, of course. and while it seems to we are bailing out the multibillion dollars airline industry and. or and contractors trying to issue already the mco and already tried to issue that we should support workers and this should be a fuller not a ceiling. >> thank you. >> thank you. next speaker, please.

>> kim, san francisco labor council. i'm really appalled the state of things with the airlines now. they are all for tlo corporate welfare when we ask them to give a bit suburban as health care to the workers which is righteous. moral and in this area -- they can get a better paying j.w. i feel like at some point something's gotta give the workers become city w and enjoy city work and take this away it it is absurd they can make a

prefer or we relook at the ceo tax. and tax them the cost of health care and pension. for all the workers. based on that number. i don't know, there has to be a way. than i are making corporate huge corporate profits. i know because i have to fly sometimes and it hurtings every time i buy a ticket. i don't mind as long as it is going to them. it is clear it is not going to these folk who is deserve temperature than i near charge of our safety and make sure we goat where we need to on time and safely that should be rewarded. if is goes away will put people on the street. which will create another problem. the bay area can't afford.

and if they don't in to the table sit dun and figure it out and find another way to really. >> >> thank you. >> good morning. i'm doug jones. i war at a suare hospital in the bay area for 25 years and i health care workers. the low and patriot and public sector i represent tens of thousands of heck workers in san francisco and our unions know that -- it is extremely important. for workers as many as public to maintain quality health care plans when workers lose quality health care plan its drill and denies health care. this has impacts on public health. here in the budget committee you are thinking about impact that could have on the city budget.

if people lose their plan. it is probably that many workers making their low wages not a living wage. will lose the ability to maintain their public plan and private plan and they would have to go on medical. and as we know medical does in the reimburse san francisco general. and the city's clinic system. not guilty same way that private health care does. for public health purposes and for the budget purposes it is irrelevant important this we figure out a way to maintain and improve health care plans for workers including these well deserving workers. thank you. jury room good morning trace we j.w.s of justice san francisco. i'm here to say this we heard from many airport workers today and the thousands more when

can't be here and they are essential workers they keep our travel safe and healthy we owe them more it is unaccept believe i have to fight for basic wages and health care. we are standing with local 2 and usww. affirming we enough ensure the workers get wages this allow them to live in the bay area and take care of families. thank you. why thank you. why next speaker, please. good morning i'm the first voiment for usww. i want it thank board president peskin, supervisor chan, mandelman and safai for being there. like from day one and this is a new y'all have been there for work and the city and the airport has established standards that are a model krosdz the counsel row.

but unfortunately the i also want to thank the workys at the airport many who had to take time off work to be here. i want to thank the health care workers from uhw, 2015. public sector 10 to 1 this is i group effort to ensure the airlines are accountable. and i just -- think there are a couple points i want to make. but one is this the airlines created a race to the bottom at the airport. the contractors we negotiate with -- g2, abm. compass. prime flight. some have contracts with them outside of the airport and the workers get paid more. the benefits are better. the lead benefits are better it it is a better dwheel it come to the airport with the airlines the mess knowledge they sends to

contractors is get its for the cheapest you can get. with that -- that lead to it lead to a situation where if this law goes away then i guarantee it is in our contractors come back to strip health care from the children of the workers here. and thank you for standing with the airport workersir appreciate your time and let's stand together to make sure united and the big 5 don't treat san francisco like a poverty city. >> i am calling a last call for those in attendance who wish to speak. you have line up along the curtains now before we go to the phone line. next speaker, please. good morning i do research for usw w airport's division i'm here to comment on the airline industry. supervisor peskin reference

third degree but this is a heavily subsidized industry. they were among the first to get bail out. 45 billion. for major airlines. state subsidies to the industry are extraordinary. 300 million a year in exized tax exemptions. more on the cost of fuel the carve out in the state's low carbon fuel standard. this was in an industry struggling before the pandemic commercial airlines sought 5 profitable years 2015 and 2019. demand is back. domestic air travel at or above prepandemic levels for over a year now. the industry is going to be profitable again this year. ticket prices are referred highs

the leftier they triple the rate of inflation at large. the direct airline workers are foaling it, too. pilots at united are picketing. american and southwest pilots voted this month to authorize strikes. then the subcontract workers. the best years the airlines w to under mine the standards. they opposed local living wage policy in los angeles, dc, new york, new jersey. they sued. time and fwaen this industry shown the sellout service workers even if it under mines their prescription and creates staff shortages. falls to us to make sure. >> our time is up. >> in i can ask the speaker,

sir. sounds like have you a lot of knowledge. let me ask you the question i posed to the airport. they the airport was unclear as to the total number of individuals that stand to lose health care do you have a sense of had that might be? >> i seen different numbers she was right in this it is in the thousands. we have reason to believe it could be north of 10 thousand dollars depending on how many are enjoying the benefits from this now. >> and then the representative from the airport was unable to answer and -- more appropriate question for seiu, relative to retention, can you tell us about retention of members from usww? >> how many worked there for

more then and there a year more then and there 3 years do you have those. i don't have the exact numbers for each head of mow knowing this turn over in seniority most of the contractors are very bottom heavy when it come to seniority. people are less then and there a couple years over a third close to helpful it various, turn over is a huge problem. >> thank you. >> and mrs. martin i don't want to prevent you from testifying but i would request this you not speak under public comment you are one of the listed presenters and i don't want to limit you to the 2 minutes because i think this opinion has a number of questions for you. why don't we go to remote comment. madam chair. >> yes. and seeing no speakers here in the chamber. we have none in the queue. >> great. no more public comment. public comment is closed.

>> president peskin. finish the presentation. >> ms. martin. the flower is yours. and to the extent this you can attempt to answer the questions that i pezed. and let mow say the city and county of san francisco and its board of directors, which is this board of supervisors, has an interest in the functioning of san francisco airport. i think we are all proud of san francisco international airport. it has won initial awards. and the fact that it has bounced back is fantastic. it is the gateway to san francisco and the bay area. and -- i have to say that i have cathand he over a thousand employees do a great job and i note the airport has a long and proud history of supporting its

employees including but in the limited to those theory contracted through airline consortiums. and the like. will part of that experience is actually run egg good airport and not having this rate of turn over -- it is actually part of the visitor experience. it is part of safety and security. trust in that airports and irrelevant part of enhance am of safety and security. and i note that the judge in this case the federal judge specific low actually said the city and county of san francisco. >> a means of reducing. enhancing the safety and security of the airport. drill down in how many will

members of usww that are contracted at the airport have been there all the time. let's be clear hanging on for 41 thousand dollars a year in san mateo and alameda and santa clara and san francisco is a preposterous proposition. we heard from individual who is have chosen to work at the airport because of the health care security for themselves and family. this is a critical issue around retention and enhancement of safety and security. for the visitor experience and proper functioning of the get way. the floor is yours. >> yea. absolutely i can answer a couple questions you posed. i first want to i know we thanked al ois i want to rescue noise the airport workers here who are directly impacted by

this . i don't know hum spoke thismented be here but work 16 hours a day they can't be here. hear from the members who work at the airport and also the members of local 2 and the airline cater and concession workers. thank you. you know the question you asked about retention i can peek to our membership. among passengers service ws we looked what the members had and almost a third of the workforce now had been there for less then and there a year example over 60% there less then and there 3 years. we see numbers like this, that is a crisis in retention. you mention thered are challenge in recruitment as well, lot of under staffing impacting passengers safety and clean standards buzz there say challenge in recruitment as limp the other question about impact on collective bargaining and

depends on each contract i poke for our contract. these companies are very reluctant to commit to bchs beyond require in the luand in order to get the good affordable family health care after the ordinance was passed. we agreed to language if the ordinance is no longer in affect they can reopen. and reopen the contract and have i different conversation what health care we would have we know what that means. the other last point i like to mention. you asked the right questions we appreciate you holding the hear and lynch to our member and dig in to this question. but this ordinance healthy airport ordinance, was passed unanimously at the board of supervisors signed by the mayor. you know we really need to figure out what is plan the plan from the airport and from the city. if it is revoked and repeald and what are workers supposed to do.

are workers work without health care? and -- i can say you know >> our points of view with the wages that are offered in negotiations you cannot afford to buy health care yourself you heard it. you can't pay rent. we are struggling in our contract negotiation to win fair wage increases that will retain and recruit the staff this we need to keep our airport safe. we appreciate your support and everything you have done today. why thank you, through the chair. some factual information. usww is negotiating a contract is this with a contortium or individual employer organizations. >> we are negotiating a mast are contract with abm prime g2 and then later to be subject to compass.

about 2,000 members are cover said. k and the status of neshgzs? i don't know if this is something you are allowed to do. >> of course. >> it is taken many years to get to this point. we have agreement on almost all the outstanding items. except for wages. we have been they brought to the table wage proposals this are can have the less over all. they have been moving money around the package and the wage increases are getting worse. not something you want to see in

labor negotiations. on monday we met with the employers fwaen and declined give us counter proposals and the next time they would meet with us is june 26. not to get further down has the airport through the director -- been attempt to be helpful. these are private negotiations with the union and private companies. but i have spoken with the airport administration they have been sympathetic and hope than i will be able to help get through the companies with support as well. >> and these private companies this -- organization that you are bargaining with. have a contract with the

airlines? is this correct? >> yea, that's the challenge. we are not at the table with the airlines that have the money. for you to get a good contract with wages that folks can live on the airlines have to go to employers and say we will pay for temperature the companies we negotiate condition tracts directly with the airlines for services they provide. the same airlines suing me and my colleagues. >> exactly. are you allowed say -- i understand this is -- would like to understand this is about retention. are you allowed share what it looks like? up to our wroun when wages you know think that our acceptable to table. i could tell you now what the employers are offering you start at the absolutely minimum of

airport qfp i proposal, less than when the companies pay now this is their proposal. and then it would take will be gradual you have to work at the airport 20 years to get up to 2 an hour boor qsp. that we believe is too little and would not do what it takes to retain the workforce. especially considering they are paying cabin cleaners now. for 20 year employee giving their life to the airport. >> are you allowed characterize what usww has suggested in >> i believe -- we have done so many wage offer and we are bargaining good faith. when we in to the table we you know, move more in their direction. i believe when we are proposing now is that you begin at around

a dollar above qsp a page attract good workforce and then get i would think i could send it to you. i think like folks to gun on the order of 75 to 50 cents after years. people want to afford to support families. >> thank you, mrs. martzin. one last question. you said this -- you met with them on monday. and they then said the next time we meet can the end of youn? >> correct. >> and how long are the negotiations going on? >> the economic negotiations for the reopener for over a year. >> and is that normal that none

of this is normal part of why you see workers here today. we delay our negotiations with the companies because we were about to start conversations during the pandemic when no one was work and the airlines were not making money that was a decision we made. then we went back last spring and everyone tucked about today the business is become and airlines are making money there should in the be a reason to delay this further. >> is it normal well is an among and a half between meetings and especially when you get toward the end and the can you remembers telling us we thpt done we are talking about wages now. we are appropriateed settle. and you know usually when that happens we clear our schedules we will stay all day and notice. we want a contract and for them to say, we will see you in a mont is shocking. >> thank you. before we hear from i don't know if you have questions for mrs.

martin if not before loraine powell from unite here local 2 i had a question for mrs. widener. who exactly is airlines for america? my understanding an aviation industry trade group made of airlines that pay a membership. >> so presumable low the -- big 5, united, alaska, american, delta, southwest? i believe so, yes. and then relative to the people who are suing us00 autobig 5 are them? >> the 4 a >> yes >> made up of airlines and the

people that contract with -- abm, et al. are airlines. >> and that would be the big 5? >> yes but all of the airlines jet blue, every airline that prits at most parents but at sfo has a service level contract with in providers. in -- this will test my memory. are they used to be like the airlines consortium? or something. do they have a name >> yes. i think you are right the sfo consortium i believe this is correct y. includes less are market share and. >> all airlines. >> absolutely. and do you know how many internal dynamics? would it be safe to presume of u

noticed has had market share approximately? 45%. and the runner up alaska? don't quote me i will say 25-30%. >> are they do they have a proportional share of power in the sfo consortium? i don't think so. >> okay. i think >> a board of directors? do we know how this works. i know they have staff. i don't believe there is a board but i can double check in for you. it is a decisionmaking group. so they can speak with one airline voice to the airport to when we proposed to them. >> and presumable low we can ask them to come and talk to us? >> sure. >> okay. >> thank you, madam chair i am almost done hear from loraine

powell from unite here local 2. the city the airport qs p could you help us understand the difference.

this can many years ago. 15 years ago. the airport thought it made sense to tie the airport wage related safety and security and retention to tie compensation ordinance for the stele to make sure it was more at the airport. so it is that point 507s. qsp is 50 cents more. if the city's mso so this if this is increasing in the city. will this for the increase for the quality service program? yes. why 50 cents more now. tell be 50 cents more then and there had the city is. why understood.

thank you. >> vice chair mandelman. thank you. more of i comment. and ms. this is in the for you. i was thinking this as miss martin speaking and thank you president peskin for calling for the hearing. when a bad look for the airlines that are suing san francisco to take away health care from very low wage workers and their kids. those the workers who got the airport through the pan dem and i can manage to work every day. and subjecting themselves to who knows what health challenges. and are also imagining it is acceptable over a lifetime of service.

may be they don't care it is a terrible look. >> thank you. and -- president peskin. would you like to continue in so i'm not sure if you had questions regarding the catering workers. an update would be helpful. >> it is [inaudible] sky chef. noticing food and acts other catering workers wee represent. and -- it was 2,000 workers before the pandemic. and it is about 1600 now. as you know sky chef closed down part of the operations after we passed this ordinance. and -- we lost members to san jose local. the workers are working in san jose now taking care of san

francisco planes. and under the health care ordinance and error much appreciate that coverage and -- wanting to continue getting this heck than i are getting now because of the ordinance that we passed here in san francisco. you -- you mentioned about the worker retention issue. which is very much a problem in airline catering sector as well. they are struggled hire folks because the they go by the qsp wage. many workers like you heard make bear low boost qsp rate even though they have been there for 20 manage yors working. increases we get buzz of what you have done to paddle the qsp for wing and for health care.

we have been at the parging table for over 5 years and unable to achieve a contract in this time. under the railroad act with airline catering and sky chef. and the acts workers. and we are unable to our hands are tide. we can't strike the companies and protect those workers to have i decent job like we have sfo with you heard from tom and molly those workers went on instructor:left fall to protect the health care and able to. and their jobs are better both taking care of the same customer. you know molly is ticking care of the customer before they get on the plain and nathanial took care after than i got on the plevin they put together the liquor going on the plane.

and but standards are different. and in terms of had than i have. and it is buzz of had you have done. made a dmfrns people's lives in parents about when they were because she did in the want them to know this her debt was getting big and bigger. and but now because of the you

questions i have final comments. so, i'm sorry we have to have

this hearing today. i -- it is rather extraordinary that this matter has not resolved under the real and meaningful leadership who i will say it, is willing to put airport money where his mouth is. it is kind of amaze to me that and boy the way this is not uncommon. that is how you will many of you will recall we were able to resolve the concession labor issue. which is that the city and county of san francisco by and through the airport actually was part of the monetary solution. that has been offered here. and has not moved the economic

package i'm sorry this fallen on deaf ears with the airlines. this is an issue of time for this board of supervisor and it is timing works under the charter the budget come on june first. this committee or the budget and appropriation committee a sister committee of this one will be deliberating this in the month of june. the board adopt that in the month of july. and to the organization this silent master employer here june 26. way too late. bringing mow to my final words. through the chair to ms. pied wide ner i request, suggest, urge this the airport create a

plan for consideration in the budget process. where in. you cost and so us how it would work for the sfo. san francisco to fill those shoes and the master contractor or probably more difficult in time consuming and long are lead time to make the individuals airport employees. them create an bedding for you are welcome to respond and finally in conclusion -- i would like to continue to the call of the chair. representatives >> and representatives from the big 5 airlines.

and american, southwest and to be present with their representatives. this isn't airline's interest. having an airport that is attractive is in the airline's enter. i'm -- i can say this with a straight face. i'm trying to help the airlines with their business and their industry. i will bring this back. why thank you. why i want to add to the knowledge and legislative analyst. the budget process so you know we are taking this seriously and with the airport items we need

to figure out the dollar amount should we move forward and what is needed to be done in the events we transification the wars to a city condition tractors. we need to -- make those conciliations i urge the airport and kevin and with the budget and legislative analyst to have a conversation had this could electric like. because we are take thanksgiving very seriously and the intent is to have the conversations carry out in the coming couple week in john. >> understood. >> thank you. >> and supervisor safai. >> this is san francisco not

atlanta. this is not another place in the thus is san francisco. and employee benefits and retention and employee -- and employer relations are important. we have a history of fine, foster business. promote success. we want a world class airport. but it is in the interest of the city to have strong re10ing. i woman said she has been work thering since 1980 that says a lot about the condition of the wars and the condition of the environment san francisco airport. we want employees with longevity it provides better service. prosecute voids a better over all environment for san francisco. we have to dpet this right and put creative ideas on the table. having the idea of being the mast are contractor allows for a

conversation about health care benefits. it is the easiest path. would make no sense it take away health care. makes no sense this instruct wers are there still negotiating after 5 years. and food and beverage. we have to get this right and we all stand here. strategy low in support of a just and fair resolution. >> thank you. i colonel cure with supervisor safai and president peskin. at the end of the day the airlines i hope that you know today hear loud and clear from us. we will find a way no matter

what to support our workers. either urging the airlines to come to the table. or do it ourselves as a city of san francisco because we than is the right thing to do and through the airport, and pass on the calls back to them. so no matter what it is happening. it is our commitment and make it happen. if i have been told you know to think twice buzz this is about our local economy. it is about making sure that we boost tourism in the future of san francisco. it is why we do thisy understand the workers are essential wars. we need them we need to retain them making sure they are health and he families are healthy and the reason why we do this we understand the workers is a

critical piece and sector to the entire local economy and it is the reason why we do that. for this we will and continue this to the call of the chair. what that means we will get to call this item back any moment through this budget process. and to make sure we continue the conversation with the airport. the airports an enterprise agency not required to come back to discuss their budget. but at this moment there are items before us that help us try to figure this out about the future of sfo to make sure it is health competence functional and prescriptional. call the role to continue to the call of the chair. on this motion. to continue this hearing to the call of the chair vice hair mandelman. >> aye yoochl member safai.

>> aye >> chair chan. >> aye. >> thank you the motion passes. >> mr. clerk. call item 2. a resolution approving the issuance of the amount not to exceed 6 billion of san francisco inter~ national airport second series refunding revenue bonds to refinance bonds. approving not to exceed 60 million. special facility bonds. to refund bonds issued to fuel storage and delivery facilities. approving the issuance not to exceed 262 million aggregate amount of the san francisco interinitial airport special facility bonds to refunds bonds issueed finance the airport and holing approving lines of credit and loans in the amount. together with the aggregate outstanding amount the bondings issued commercial paper notes

not to exceed 600 million. approval of bonds by the airport approving the maximum rates and number of issues of such capital bonds. members remote and wish to ment call 415-554-0001, access code: 2604 967 6141 ##. had the system indicates you have been unmuted, begin your comments. >> thank you. given in light of the item number one the hearing i think this it it is best it is best this we continue this to the cull of the chair to have a more productive conversation moving

forward. for the sfo budget and finance. future and forecast. m in light of what hen happening with labor negotiations so with that mr. clerk could you go to public ment on this item. why thank you. members of the public interested in speaking on continuance of this item and joining person lineup now. for those joining remote. dial star 3. and for those in the queue wait until you have been unmute exclude that will be our significant until to comment on the continuance of the matter. >> i don't know yu are continuing temperature you know you gotta hear it today. why does this help. you are getting paid. this is time the city's time you are take up you will push this item it was received from -- the department on april 20. now it is another day tell be

continued. you gotta do it today. all right. do it today. we pay you a lot of money here. all right you are pid, lot of money so. are there other speakers that wish to comment. seeing no peeshgs here in the chamber and in dam chair, none in the queue >> no more public comment it is closed and i would like to make the motion to move to continue the call of the chair. roll call >> on this motion to continue this residence loug to the call the chair. vice chair mandelman. >> aye >> member safai. >> aye. chair chan. >> aye. >> thank you the motion passes. mr. clerk call the next item. >> yes. item 3 and 4 are resolutions

thursdaying the following relate to i property at 730 stan yen a resolution authorizing execution and delivery of multifamily housing note s and one or more series not to exceed 90 million to have financing for construction of the rental housing project. prove and authorizations execution of the following i funding loan agreement the terms and donees of construction lone from the lendser to the stele and execution and delivery of notes. i project loan agreement providing terms and conscience of the construction loan. and amended and restated loan agreement the terms of the permanent loan from the permanent funding lendser to the city and execution and delivery of the permanent note and amended restated loan agreement providing terms of permanent loan from the city to borrower

and restrictive convenance authorizing the collection of fees approving purposes of internal ref now code as amended the issuance of mortgages revenue notes by the city in an amount not to exceed 90 million. ratify and approving in connection with the back to become loans the note and project granting general authority to the city officials to take actions necessary to implement this resolution and related matters defined. item 4 a resolution approving property and director of the major's office of house and community development to enter in i ground lose for the property with 730 stanion associates lp a lease term of 75 years and one, 24 year option. to extend a base rent of 15,000.

in order to construct a 160 unit multifamily development affordable to project very low income household and amended restate loan agreement not to exceed for i term of 65 years for construction of the project. the project and proposed transactions consistent with the plan and 8 policies of the code adopting findings deit is exempt surplus land to the land's act determining the less than market rent piable under the ground lease will serve purpose providing foordzable housing for lo income house holds in need with the code and are are are authorizing the director of ocd to execute the ground lose and the restated loan agreement and modifications to such agreements define exclude take actions in further of that resolution as

defined. members of public joining remote low and wish to comment call 415-554-0001, access code: 2604 967 6141 ##. >> thank you. mr. clerk i appreciate and today we have the major's office of housing here make thanksgiving present egg. would you like to go through the (ying first. we will have the presentation from the major's office of house and we will have an item had the budget and analyst report then we will back to questions

comments >> great. >> thank you. good morning. project manager with ocd joined by director eric shaw. sherri, director policy and legislative, despairs sarah ocd director of house and development. we are here for 2 items a new 160 unit and affordable housing 730 san 41 in haight issue bury in district 5. first tax exempt bonds to support the project. the second is a resolution to prit a ground lease 15 upon opinion 9 million and

demolishes. in september of 2019. the chien town community development center selected as cosponsor the sponsors worked through meeting and ocd request revised the design from 6 store, 120 units to 8 story with 160 units. stake hold and neighbors will included in moout multiple mote and updates to the community. senate bill 35. the sponsor submitted applications to state community development department seek 5 million in grant and 23 million in loans part of the over all capital funding mix a means to leverage housing funds.

in professional 23 the citywide loan committee recommended approval of 69.5 million in city loans the community funded today by today's approval would allow construction of 160, 1 huh human % affordant units with 20 reserved for transition aged youth including homelessness with a robust level of on site supportive service and rent subsidies. 12 for fells experiencing homelessness. with a similar rent structure and dedicated supportive service. 32 units of affordable are reserved for vouch and lease through referrals from the housing authority and one managed unit. and lastly 95

fordable lottery units subject to certificate of preference holders displaced in san francisco and those that live in san francisco. next rink from 25% of income to 80% of income in a range of units from studios to 3 bedroom a childcare center. a food hall for 4ent prenurse on haight and stanion. a microretail on haight retail corridor and neighborhood community center at stanion and waller. plans to work with experiences to refine the commercial space through 26 months of construction to recruit tenants other than the childcare center. the project financing i make of city, private and federal funds shown here a federal bank loan

of 1 million. private bank loans of 10.3. partner of 72.4 and 69. 5 in city loans for your consideration today includes 8 opinion 5 million in the city lone to passport 19 no accomplice like home units for higher challenges including those that are chronically homeings. a crucial part of the project financing including state tax credit and bond require loan closing union 12 of this year to ensure the funds available for development. with where you are support the experience look forward to construction starting in the next few weeks and completion in assessment of 25. thank you. >> good morning. nick from budget legislative analyst office. item 4 is a resolution that

approved a grounds lease with the city and 730 stan 1lp and a loan agreement for 69.5 million dollars. it is all related to 730 affordable housing project. the -- we detail the budget for the development on page 12 of our report you will see the city's funding half of the development costs with the rest being funded boy state tax credits and loan. we discussed some -- irregularity in procurement process to identify the developers.

thereupon is an i think a couple issues stand out to us as unusual. that are worth talking about here. one, is this is there was an rfq used to identify the developers. in 2019. 3 respondents than i were scored and a clear top score and he the department issued a supplemental question, on christmas eve 7 days later. that asked about you know experience implementing housing preference and dog community out reach. those questions have since incorporated to solicitations. but i think it is unusual to issue a supplemental question after scores developed. and then the other issue is that the selection locked at when we

tab laid the scores that showed the results of the is up elemental question where that the 2 the ccdc were a tying score due to this supplemental question. the score when is we added them up did not add we recommended the scoring sheets i sum reof the scores from the department left night. i got that 2. i do language is a reality of the project and the timing of the financing. and the need for affordable housing you know -- i think

conversation with the department one -- additional issue was this is snot this is not treated as a chapter ton service contract. if it were than i would be obgifted to work with the top scorey prosecute poser. that is not the case for these development loans. and in fact. the way the rfq was written was this there is a panel that will score the respondents and the director tells the mayor the scores and a collect who they want off the list.

to clarify and settings new policy that you know -- the ranking of the outcome of the scores and the ranking of spantds to the solicitations to have them matter and control. this is my final legals. the issues this in this item now hen actually published in the audit by budget analyst in 2021. >> note the issues in the 2021 audit. of the major's office of

housing. >> we received i. to clir foil we received the documents on of the that are labeled the foible 730 stanion scores yesterday and i'm -- and it was left night at 10:53 p.m. we received that. this is had you were referencing the qualify analyst is to ask for these score sheets. this is not what you are asking for. can you clarify? i think what this shows is a sum row. of the scores. the individual scoring sheets the question of whether the numbers add up to a tie this is

not answered in the documentation this they provided. that is had i was thinking. >> understoodful thank you. i don't i think that -- it is a problem but supervisor, preston? >> thank you, chair chan. and thank you to the ocd and bla for presentations and appreciate the opportunity to address this project piwill just star by saying and i think mr. minard laid out the importance of affordable housing and i share that view especially on this is one of the most important affordable housing developments in my district. and -- so i wanted to be here to express my on going strong

support for building fordable housing in this location. really briefly on the background i think it is important to take the lens become a bit. the presentation from ocd out lined the city acquired it in 2018. it was vacant until may of 2020. it became an initial low safe sleep site opened may 20 between the. the best safe slope site open in the the opinion dem exhibiting recognized as such and folks skeptical came to appreciate the importance of if. this lefted for a year. and so this closed in june of 21 and then it has been vacant since. i want to acknowledge the

neighbors who ocd heard from -- the -- nonprofit developers heard from our office has a tremendous amount of frustration around the inactivity of the site. on the temporary use including a tremendous amount of tooin time and everything. a temporary use thu lon of the stranget processes as this one is unusual this is in the before you today but left predates my time in office left folks in the community scratching heads after repeated community meeting and 2 robust plans put forward and questions about the scoring and

that process was with drawn. we have a big lot and not just an eye sore and source of frustration for the community. but it came together around the safe sloping site this is i positive in the history of the site and hopeful low the development this this will be there. i say this to say this i feel fortunate and i think we as a city are fortunate with the incredible patience, commitment and support from the neighbors this is the of exact opposite. a community this is wanting the

affordable housing has in together neighborhood groups to passport this 100% and the things i will say in the amendment we circumstantial litd and hoped the committee will take the service. so. all that background to say, i do share the view what we should be moving this forward. i also think is there are questions this have been raised that are fair questions i understand the concerns raised in the bla report share those i agree that the under loyaling scoring sheets be produced we got the summary of this left night. the selection press is an

interesting one we are holding tomorrow a hearing on the audit that the bla conducted. the selection process and criteria and so forth i hope we touch on it there. and or i think there is a structural issue with a lack of oversight process and some risks decisions are made and when we see this. public deserves that and i'm committed to getting as much transparency as possible but with you being in the way of moving forward breaking ground in the next mont or so. the -- the issue i wanted to raise though i think does

require clarity. a drop in center for youth. from the earliestity rigzs of the projects. 4 meetings multiple loan document and state applications. and 2 weeks it was the plug was pullod this site.

and repeated low no announcement of change of plan and we said before it shiftd that to broad categories like microretail. that's concerning includes. i would like to ask ocd to confirm their commitment to take drop in space and everybodieses. and also regardless of those i think it should be in the documentation that's why

circulated an amendment nonsubstantive. move to the board supporting the services important to the community. thank you. >> thank you and -- with director shaw or may be your tome like to respond to this commitment on pay services on site? thank you. director shaw i appreciate it. >> good morning. member of the committee. eric shaw director of community development. first i want to say happy affordable how doing mont the happiest mog for me outside of september when my birthday is. i shared with you supervisor preston and the committee, the financing and program, the financing of this building is increaseingly complicated. and we have been working now and the timing of the delivery of

the units and we have directed our partners ccdc and tndc to irrelevant focus on getting the building out of the ground now. there were solicitations that were done and initial low around senior services. there was consideration on the issuing of the solicitation and have in the been getting responses outside of this early childhood center for the social services component. given the fact that this happened during covid understanding pritting budget capacity of partners in the spaces, and priorities around economic recovery, that as -- mr. [inaudible] shared we directed the development team and partnership with city part dmers ocd offending the use strategy for programs the focus now the construction of the

building. and so i think understanding why previous solicitations were not received understanding economics of this come once gwen this for all of our space commercial there is a cost associated with it. incorporate in the the budget. upon this is something we are working on the program and finances to meet and active and community serving ground floor use. if i can if you mean. thank you, chair chan. there has not been a solicitation on the services in correct? >> had is correct. >> so there have been on other like the -- for the correct and understanding because of the pandemic there was in the the response we might have hoped for. i understand the concern when i don't understand is why the

service are remove friday this presentation. it is -- and especially the history of the site with -- you know interference were plan exclude remove exclude you in we have planned service like i think for my constituents are concerned tht omission of it in the upon presentations indicates a lack of commitment to going head and doing the solicitation. we know if you don't get machine responding to solicitations you need the flexibility to fill the space. is there a commitment to doing the solicitation for the drop in center as presented over and over gwen in the documents and the community. a commitment to having a program including community serving retail and with average partners on the best program meeting the goal and activates the

commercial space. and meets the requirements needed to be in, linement with the finance and under writing guide lines that help. your will predict in response your in box will be overfullying community this will hear this and want to take an effort to make sour it is communicates this should be at the top of the los angeles as promised. i will say to chair chan and committee it is essential this the board make the amendment this we circulate it in light of what sounds like not out but in the committing to it. a big change in a community that needs the service. and -- it i think the electric of clarity is such a contrast to like what, men i can ask. had changed the pan dem and i can trying tonld economics of

the pace and we understood that the solicitations for services we did not get the responses we thought. and once again the commitment in priority i laid out is getting the building built now and understanding that during the period this we have in the construction that we have the capacity to and have the -- we are making the time to understand the appropriate program for community serving uses and commercial uses understanding the integration what is helping now and advancing the community serving

economic

showing the project answering questions. and really working tireless low to bring this to fruition. i share some of the you know community frustrations on the process. i can say more and i will not how we got here. all that said, you knowledge i know a lot of ocd staff worked hard to w out the financing and i think bathroom this to hopeful

locality finish line soon and nonprofit developers tremendous per ins for the staechl i will leave it on this positive note and look forward to a discussion. >> vice chair machine man. >> thank you. chair chan and normally affordable housing project i would just like defer. i will say that in the year that i have been inherited some of supervisor preston's former constituents i heard, lot about tw projects. a lot about ucsf and 730 stanion. feedback i got back is mixed. and including from people who are unhelp that it has gone from 6 to 8 stories. people are unhappy that it has the conscience tragz of former low homeless folks.

people worried about youth and chronic homelessness and worried about the drop in center on the ground floor. and you know i have general low received the feedback. i don't find the concerns about height moving. i am not think it ws to say we will not house former low homeless people or focus on youth. one piece of feedback i wrestled with dp in the thought i needed reach a conconclusion was happening on the ground floor. some of our colleagues have pointed out and i have, we as a city have not consistent low shown the addition of homeless services to a neighborhood improves that. it can. we can do it in a way that -- improves continues for sxefsh often do it in ways that -- that

are negative for the neighborhood. i had thought until 5 minutes before the meeting i did not need to figure this out because, because00ue know we are not dealing with thisy woor dealing with bell and deferring the questions for later i'm not appropriateed deal with this question now. it men i'm in full agreement after i look at all of this and make a decision with my colleagues supervisor preston i have not had the opportunity to have the robust engagement with the different sides of the questioner to understand when is at stake or the history. and so i i'm -- eatingtory support the items 3 and for you i'm not going to passport this amendment today not say together should not be ground floor but wanting to understand when that will electric like and ensure that is the impacts on neighborhood is positive.

>> thank you. supervisor safai. >> i guess my first question through the chair is can you talk about the amendment what it is designed to do? the amendment would have the board add a resolve cluz with the board urging to include the service as a grounds floor use as they previously in various documents both in representations to the state and the community and in loan applications said than i were going to do. it is irrelevant just keeping this promise that strange low has now vanished for reasons that don't make much sense to

me. based on the presentation. that's what tell do. it would, and my understanding from tuck to stele attorney we don't have the ability to bind. them to do that but it would make clear the board of supervisors will like that part of the commitment to continue. >> right. >> we are not and i think after that we are not amending the loan agreement we are amending the legislation that come with the loan agreement or present the loan agreement and as far as the presentation. could you read out loud. and my pet peeve about acronym. and it is transitional aged youth drop in center temperature is my recommendation in your amendment language that you pel this out. because there is in reference of this throughout the legislation so you in your amendment you may

want to spell out transitional age youth drop in center. service as the grounds floor. that's my amendment. to your amendment. supervisor preston. >> i think this is a great suggestion. the term was not previously in the resolution, which i think you are correct. it would be receptive. the resolution and with this change would be at page 6 line 22. and page 7 lines 1 and 2. you -- have further resolved that the board of supervisors urges ocd to include

transitional aged youth service as a ground floor use. as ocd report in the prior loan applications including predevelopment lone. aical cal tax credit committee application from 22. and representation in mull pull community meetings. >> so. can i ask a couple i heard what supervisor mandelman said this does not seem to be binding it is urging. i want to put this out there so we are clear. is this right? madam city attorney, we don't have the ability to direct departments we can urge but in the make them do this. >> that's right. supervisor, this is a nonbinding urging statement. when i do have a question is it is worrieded this way and this is mow coming in the new not my district. i do am familiar with this space. i know this community and the city waiting a significant conditional time for manage to help. my question is we do this when we present for funding, was it

presented this there would be services in this site for transition will aged youth? was this per of the application for tax credit funding. we presented there will be childcare. there will be x, y and so -- it could jeopardize further opportunityivement to understand that a bit better. mr. director. yes. repeat question. jop. i guess in. first i want to ask i'm not

familiar with the history of the project were the loan was it presented by the city and the developer when you were applying for tax credits. was it presented there would be traction everknow yourth service offered ground floor or in the build nothing general. was this part of the loan document application. i will defer to someone on that. >> thank you the state tax credit applications we described project over all including commercial pace and use. the focus of the application is on the number of units and affordable mix and that's the core focus of the applications. >> right. the make up of the ground floor. du mention in the loan do you means you would have youth services. why yes. >> the answer is, yes. so my question is does if you were to chink or not fulfill

that does it jeopardize the project or the future projects because you represented this this would be. >> and again i say that because when we were doing the upper yard project, there was some question about whether or not we would deliver the retail pace and/or the childcare. we were able to ensour that was it. i just want to know. >> housing development. the commercial space we are not tied to include and maintain programming. it is the point in time of when we are hoping for -- our programming of the site. commercial space services are not a requirement to continue after the application. they were per of the proposal. they were per of the application they were part of the

>> tax credits don't pay for commercial space, ocd does. if it change its is on us. i say that we are not saying this it is out we are saying we would like to go become to the community and have a conversation with the community about service which is why on your presentation and on subsequent slides today the information around neighborhood serving space is a more conducive and robust services and not key to one. we are look to hopeful low have a type of family resource centerful seniors. supposed to be the thought process with the community now we know the out come of the market and the economy of how to revisit this and think about it. why can i ask you a question the out come of the economy. >> after covid, sir. why but what i understand. meaning that because of funning

implication and how we have had to work overnight last couple of years and things this changed and nonprofit budgets changing, revisiting this completely to see where else the opportunity are to advance. when we would like. >> i understand when you are saying it does not make sense to me because if this is a nonproffer space you will have a nonproffer require government funding and so we have providers in the city. senior services, family resource centers than i all to the city. i don't understand the comment about the realities of covid changing if you say if you were going to have i restaurant there you in they can't access loans the government would provide and

the market in terms of. workforce i see the audience from hsh we opened 80 unit serving property in my district with multiple providers. that's what. >> when you look at the budget year and when we go in for review the nonproffers this, ployed they need time to review and update this. considering the changing of the financing structure, we our 12 to get the property to construction. >> i understand. therefore after now that we start construction in june new budget cycle start in yell we can have a conversation with our community partners how to program that space. >> i understand this but i don't understand the economic changing this does in the make sense i hear you, thank you. why i will say that it seems to

me not necessary low a hostile amendment it is to say this was proposed. police consider this. . am >> thank you. thank you supervisor safai and with that we will go to public comment. >> public when would like to speak lineup now. remote low and have not done so dial star 3 and for those in the queue wait until you have been unmuted and begin your comments. sir? thank you i'm calvin and cochair of the coalition for complete community made up of neighborhood residents. community special neighborhood

organizations. and service providers in the haight/ashbury since 2019 parallel to cities plan and. and and those 2 processes track well together. and important to understand had we met with late last year that -- supervisor preston's amendment is keeping safe the public planning process done at the neighborhood level. the need for the site for affordable housing on the site, is not only for new people to our neighborhood but to meet the needs of existing residents in the neighborhood. and it was this basis upon which

a community plan was put forward. with a 3 part usage of population to be served. seniors. families. and taa the need in the neighborhood and services opened to residents and the rest of the neighborhood that were also needed. the supervisors resolution, amendment, keeps faith with this community planning process. and i would urge the board to accept temperature thank you. next next. >> good afternoon. sheryl execute of director of youth service. wellin street has been participating in the ccc meetings that calvin referenced. we have been active in the hit since we opened the drop in

center. very mall and working with homeless youth alliance and a bunch of folkos this project. this is a need in the haight. >> thank you. where thank you. next speaker, please. hi, i'm marney i work per wellin street and representing the cochair of his and and the subcommittee of [inaudible] we strategy low support the drop in space

promised for years and this is the reason why has in the budget advocacy strategy support service dollars for this drop in. we were told had if we secure the of funding through hsh, dph, for supportive services dollars this is when was needed to secure the physical space. we have been operating under this promise. part of the budget advocacy and it reflects the need and the support of the mount in the haight. strong low support supervisor preston's ma'am and hope you support this and make this happen. thanks. >> thank you. >> next speaker, please. i'm not going to talk 2 years so00 eye want to ask questions. where i live there is safe site

what will happen? in people most of the homeless want to be housed. had will happen. they want to be housed or houses where are they going it go. the seck thing is -- i don't know if housing or urban development had or state or local legislation. say anything about equity. about the fact about how many percentage reached the i'm mexican-american. what percentage of the fwrup is housed. anybody? nobody? people this have connections? who? i think that -- the situation we

are i think had we have. >> thank you. >> had you electric at online at

this website. 7. . 30 sustainion you look at it, right you see old san francisco and vinedage voteo. the new accomplice and haight/ashbury harkens become to a time the city was great. the city used to be great. and it was real. it was a -- it was what we what i came to when i came to san francisco that's when you saw. we look at them and you see this. major's office advertised an r fq out there for a developer. they chose china town and like helpful and wants to like the developer helped the city.

you have to look down. look at the people had are they doing this is a developer after money. after money. wants to make money. okay. that's all what it is about. so is well an audit? you audit the people. can you audit the developers and the tenderloin developer than i are working under the anymore this says they are wing for the city i think they are after monetch they are out on the street today. can't walk boy they look at you. i don't know when they are doing. when i'm saying is this is a great building. i know this neighborhood i jog there all the time and stuff like this it boggles your mind a lot. you know your rights are abridged you have no rights. okay you don't exist. okay. and this is i develop 30 is dog

this. a developer dog this. thank you. seeing no one here in the chachl ber. dave you'd wu for complete community. coalition made of nonprofit service providers in the haight workers and community members and kim together to support the development of this housing on this site. and for ground floor uses reflect the community. and held 2 public and empty lot at 730 stanion included services in the events and were wide low

supported and we had zero complaints up until april fourth. ta drop in center that will open based nonprofit xu heard huthis is represent and financing documents and testifies in the until that last month >> and set it begin all references to drop in center were moved with no explanation or public process. and there has been no solicitation for ta service. and this are working to put where you are funding. working done by mount to activate the pace.

we don't have a commitment and 7 meetings more held boy mohcd the inclusion of service hen discussed men times and i'm not sure when well is to revisit. 2 minutes today. this completes our queue >> no more public comment. it is closes. i have questions about the process. that took place and i want to say this i'm grateful to have the tenderloin neighborhood development center and china town to even though the scoring was interesting the additional

questionnaires that had to sends out -- did in the explain the reasoning why that had to be. >> everyone in the space the housing needs to be built is needed and that's where people and baker -- i have and and the policy >> and with this i think that i have to say -- this -- i can see that through the documents the information provide by supervisor preston in the development plan be it the you know in your application to the

california tax credit allocation committee. and also from the feet back from the public comments from the community, clearly there was a very clear discussion about the youth of ground flower for purchase transificational age youth. i am00 eye want to say that with that i'm i am supportive of at insert thagsings this legislation inserting the metropolitan with this language this was -- read earlier boy supervisor preston. preston and it is you know page 6 line 22. and i think that it is not direct metropolitanless to the loan documents but to the legislation urging the major's office of housing and community development. with that, mr. clerk i will like

it make the motion to amend the legislation which item 4. on page 6 line 22. and amend it as inserting further clause read out loud by supervisor preston call the roll. >> on that motion amend the item 4 with the language offered boy supervisor preston vice chair mandelman. >> no. >> member safai. >> aye. where chair chan. >> aye. >> we have 2 aye avenue with vice chair mandelman in decent. >> thank you. and with what i would like to sends these 2 items to the board with recommendation. and with that also call the roll wrchl on this motion, to forward items 3 and 4 to the full board with a positive recommendation item 4 as amended royce chair mandelman. >> aye. >> member safai.

why aye >> chair channel. >> aye. >> thank you the motion passes. thank you. and please call i then and there but the major's office i will call point of view and sick together. >> item five is a resolution approving authorizing the director of the mayor's office of house and community development execute documents relating to a loan agreement. holdings llc aggregate total amount not to exceed 18.8 million to financials the rehab and per minute innocent refinancing for affordable multifamily rental housing projects for low to moderate households sfclt cites 36u mitt and 4 buildings at 28 for you to 28 fret folsom, 40 fro to 4048.

568 to 570 in tomah and 308 turk for a dwelling at 4022-48 folsom the small cites program the planning diameters determination adopting finings and project and the trans actions are consistent with the general plan and the priority policies of the planning code and authorizing the director of ocd and or his or her designee the loan agreements and modifications to loan documents. item 6 the resolution authorizing the department

members of the public comment call 415-554-0001, access code: 2604 967 6141 ##. and enter the id of and pleas star 3 torn the line. a prompt will indicate you raised your hand when you have been un muted that is your time to comment. >> thank you, mr. clerk temperature is mayor's office of house and department of homelessness and supportive housing we called them together go with (iing one by one and then with the comment and we can go to public comments for the 2 items together. state your first and left name. title and divisions you represent everior presentation go to analyst report this item has it, thank you. >> good afternoon supervisors i'm amanda lopez a project manager for the mayor's office

of housing and community development. before you today a request for permanent refinancing of 4 properties boy the commune land trust. this of clsd 568 natomah. and turk and foalom there are [inaudible]. among the 4 cites. the mall sites program one of 4 begin by the mayor's office and community development with the preservation and seismic safety program which offers first position financing below market rate and downtown neighborhood preferring fund and rehab. >> the mall site program helps san franciscans avoid convictions. keep rents affordable long-term and protect 10 annuals the program protects the rink of encomes it star in the 2014,

over 660 units converted to affordable housing. the small sites program funds life and safety repairs of san francisco bellings and improving quality of life and sustainable ecosystem. small cites loans are soft debt loans. prior to the introduction. small received first position fund figure traditional lenders. lenders offer 10ier loan terms with if i canned rates. use refinancing it cover years 11-20 capitol improvements with pedestrian financing long with a 40 year term. 20 years of nosed are now covered. now projects are are expected to

cover additional needs for future years with refinancing at year 20. >> requesting up to 5 million in past funds with up to additional for you opinion 7 in funding for a total up to. refinance and pave of the first lone this is reached them. ewe likewising low cost financing not available at the time the projects individual loans in one bundled throne all 4 properties. aluing to pull resource in the furthermore of shirred reserves it will help fund rill provements with conduction of

adu. one of the first mall sized developers with a total of 70 units cross 10 cites. the bundle is critical to a sustainability of the 4 propertieses in the growth. should you have additional questions regarding the bundle the director of asset management and finance is here to answer question and if you have questions about the small site's program. donny oliver is here. thank you. >> thank you. bla report. item 5 is a resolution approving a loan agreement 18. 8 million dollars agreement with community land trust. to refinance that 4 existing mull site projects we detail from page 19. purpose of the

throne pay off high cost patriot debt it pifor improve ams on the 4 sites and replenish reserves. we detail said the use of funds on page 24 of our report. and did have a recommendation to adjust the resolutions not to exceed amount to be consistent with the final loan amount. which is 18. 7 million dollars. and we recommend approval as mended. >> thank you. voice chair machine man. >> thank you, chair channel and staff for w on small sites and make yourself portfolio sustainable and i would like to be added as a cosponsor to this item >> thank you. let's go to seeing no more commenting and questions and names go to public comment on this item. >> all right. we called them together.

>> with this and seeing let's about fw to the next item for presentation. thank you. >> good morning members of the committee i'm marree with department of homelessness and supportive housing. i'm here today about i resolution that would authorize the department homelessness and spicht housing to apply for the third round of home key funds at the state for the project the property at 1174 folsom. the resolution would allow hsh to submit a home key grant application to california department of house and community development. and this is the third round of this funding. there is 736 million dollars visible state ouied for this project and hcd will receive

applications on a continuous basis through the end of july of this year. or until all available funds are exhausted which is why we are trying to get this in quick low. total not to exceed for the property the 1174 folsom is 15.7 million. or the max amount aloud ournd the home key award. if, warded the grant would support the operations of the property for use as permanent housing for young adid you tell us. legislation to authorize the acquisition for the project will be introduced not board in the next week or 2. the property itself is beautiful. new -- new construction, 42 unit building in soma. and really is ideal for this time housing.

studio with private bathroomless. indoor and out door community pace for residence denials to hang out built in 2001. on site laundry. elerator. close to public transportation. all the things we look for in housing. the size of 42 unit system ideal for the building w we like to do. and we are excited move this proposal forward. >> san francisco has been successful in leveraging home key resources and this has been a tremendous asset in addition to the funds for the acquisition for apartment building and hotels. if we receive this gront. we received 12 million dollars in home key and sick properties with 779