>> good morning, everyone. >> thank you for joining us on this beautiful thursday morning am my name is carl the interim director and delighted it welcome you to the opening ceremony of the newly painted pedestrian bridge this links japantown and the fillmore community a couple of notes after the program invite everyone to go on the bridge and have a photo opportunity with the beautiful view and i utilize this color of the japantown bridge. so with that, i would love to introduce our mayor the

leader of information who inspires us to think creatively and come up with beautiful projects and work with the community and really is the woman behind all of this like to introduce a mayor london breed (clapping.) i want to take this opportunity to restriction we have some wonderful community gifts and first start with our general of thank you for joining us, we are honored by your presence. (clapping.) now you'll be hearing in the council generally and the amazing community members this is also great to come home everyone i get a chance to come to fillmore or japantown this is a homecoming for me so many of the people joining us are people who have been colors in this community for decades the ones

whenever and a broaden challenge the first one to raise the hand and to assure that the quacks of 24 neighborhood when the city comes in and those impacts are positive for the people who live here and the welcome addition no japantown this is a a deep he rich history in challenges and struggle and sneak before the redevelopment agency took hold to have neighborhood geary bridge is not the same it is a road but a highway divided our community in ways we couldn't have imaged it was really what started up afterthought advocacy to make sure the community is a part of this when we are proposing the give and take bus rapid transit are dedicated to

the munching to make sure that muni is moving efficient and low as a fast as he came in the streets of san francisco we need the see with the community in mind and navenlt we worked with with the japantown community to make adjustments were not talked about. and initially the plan called for tearing down in bridge behind us so many people felt this bridge was about bridging gaps and bridging community to the though not only proposed department since the last fire commission meeting, including budget, academies, special events, on to this wonderful bridge this seniors and kids use and elementary school but folks cross this bridge next year safety to get on give and take we didn't want to see that amazing bridge torn down and within the middle of block within laguna and western

a crossway honest we crossed the street in the middle of the road putting our lives in our hands to get to japantown and walk under the plaza and then down to the bowl now it is safe passage and one of the creations of the folks from the community who saw is this was so many kids and folks using this as a cross we wanted to make that satisfy that's what we need the and today 317 celebrating why are we celebrating the bridge but the symbolism of what it representatives the connections between folks farther part of western community and the people part of japantown those ties that bind us help to maintain that bond that is unbreakable because of the challenges of the past and so today as we

celebrate the beauty of this bridge and the beauty of japantown and the western addition we reminded o communities are here because of people who 0 that live and struggle and the people that remainy silent despite the brooks thank you, everyone for being here but thank you, department of public works and carl and her team to make that more beautiful a than i've ever seen and tenderloin one on our community members and steve and greg from the so many people and james from hud this is a community effort and i'm looking forward to not only continuing to walk across this bridge by it

see it continued to be used for folks to be connected and with that, at this time, i want to introduce the council general of japantown. >> (clapping) good morning, everyone. thank you very much for inviting me today a block event i think the theme today, this morning is the bridge. bridging the community with the japantown and western addition and reaching the bridging san francisco to japan bridging to to the world i came here 5 weeks ago but i have already heard the mayor brooedz so many times every time i'm

excited 0 here that mayor breeding it is the enrollment of the bridging between the western addition and a japantown san francisco and japan and to the world. so in two weeks ago time will be a guy garlic event gathering 21 applies here. i celebrate and i congratulate mayor breed and the people of san francisco to hold such an event introducing san francisco to the world and, and, and rendering tuned for that having that event possible in san francisco. and we hope that we can have this kind of mature

bridge again in japan and in other parts of the world thank you, again, for today and congratulations. thank you. (clapping.) i also want to give a shout out to some of our community members of the squares deputy city attorney i can't and connie for the record and economic development want to shout out to another one who works there and japan and i see patrick who is here. thank you very much for joining us really is a close comment community that work closely together and at this time, i want to ask is grace or steve. >> okay. we're to ask fire commissioner steve to come up and say a few words

(clapping). >>. thank you very much. mayor breed and council germany want to give a real recognition to mayor breed in terms of our presence and support in the western addition yeah fillmore and japantown for our responsibility as mayor of the san francisco. i need to recognize the repetitive of our community which are many folks behind me make up the mayor's office and support but the partnerships with dpw and michelle and carla and all the dpw team because without that combines and collaboration 24/7 us the mayor office and more importantly the fillmore community i am full of emotion

standing in the stood shadow of japantown and can't stop thinking about all we didn't need in the old days to combine fillmore. we simply wobbled across the street so through the evidence of history and what happened and highway and free with that beautiful rendition of the bridge and the colors with the aspirations of apec i feel that our journey is moving forward and time to heal japantown and the fillmore with that history and dedication we maintain that bridge and that relationship that goes beyond to japan as well thank you, mayor breed and department of public

works. thank you. (clapping.) thank you so much steve i know that sandy is not here but shout out to all the work she's been doing over the years and at this time, i want to recognize andy to say a few words (clapping.) thank you, ma'am mayor. and concrete before i've been a preacher all my life and to the consul generally i'm excited to be here preliminarily to illustrate to talk about how this bridge representatives our connections between two communities and time is trying to separate us and managed to stay today an example of this.

the association and steve will do a great documentary between those two communities. many, many years ago, i was invited to be on panel of um, that commemoration of the japanese when we were sent away to the camps i didn't know why i was invited but went because of japantown called they and i was so grateful there was a elder woman that talked about the day they were leaving she said of the only people that seem to miss they're leaving where black people in the philadelphia more today they left the only people that showed up to say goodbye

were the black christian folks from the fillmore and brought brown patricia of chicken and that's the way we used to travel across country because of, of course, because of jim we didn't know we tried a restaurant would serve us and fried chicken would last longer out of rerefrigerator and something that fits in a shoe box you know what i'm talking about that's the kind of relationship those communities have always had and notice that while our association location japantown you fillmore it is really more separated since this bridge than that was ever was in reality

because our relationship was a relationship of location by of the heart. and while they can pit this in to separate us they couldn't separate our hearts from one another that's why we're still together and i see a lot of people in filling more and japantown serving that and make sure that i let nothing happens we've always been together and determined to stay together no-brainier what happens in gearing boulevard i want to tell you and let you know that we are psa this relationship togetherness on to the next generation and on to the next generation every in san francisco, california learn how

you be can be distinct in the community. >> be together contaminate what a beautiful lesson to thank you, everyone for giving us to chance to glover any in our friendship. thank you very much. >> thank you rendering attain send and toy everybody for coming here we're going to do a ceremony i can't tell walk across this bridge and, yes. so we're going. >> here's what we do in a community coming together and hanging out one another and uplifting afternoon this is was it will be and also be. thank you very much for being here

today. >> oh, wow, look at the colors i love it. and wow. >> i know; right? >> uh-huh. >> when i was a complaints an

not (indiscernible) that concludes today's overview. thank you for your time. >> what happens after a complaint is submitted? when dpa receives a complaint, the first step is it to assign it to a investigator. if the complainant provides contact information, they receive a letter telling them knoo they assigned investigator will be. if the complaint is submitted anonymously they will not receive further contact from

dp. >> what happens when dpa finds a police miscucktd? >> the dpa find misconduct, meaning sustain a complaint, the next step is to determine how serious the misconduct is and what discipline the dpa will request (indiscernible) the dpa does not itself impose discipline and can only recommend discipline in a sustained case. >> what happens if a complaint turninize to a chief nonnob >> if the dpa decides to recommend 10 days suspension or less, the chief of police is the final determner of both whether misconduct occurred, and if the chief agrees misconduct occurred, what the disciplineitary penalty will be. in those cases if the chief disagreewise

dpa, the case is over and dpa does not have any recourse. if the chief decides that misconduct occurred, and to impose discipline, an officer has a right to a hearing before that decision is final. >> what happens if a dpa complaint turns into a commission level case? >> if the dpa determines a 11 day suspension all the way up to termination is the appropriate outcome for a misconduct case, a trial is held in front of the police commission. normally, one commissioner presides over the trial, then the entire commission will read the transcript and vote. if the commission determines misconduct occurs, then the commission also determines what the penalty will be. if you are stopped by a police officer

you should follow the officer direction, keep calm, keep still, and do not make sudden movements do not reach for anything, especially in your pockets, keep your hands visible at all times. you have the right to remain silent. this means you do not have to say anything. tell the officer i want to remain silnts. you have a right to a attorney. tell the officer i would like a attorney. if you are arrested do not talk about your case or immigration status to anyone other then your attorney. do not sign anything without your attorney. do not lie to law enforcement officers and if you are property are being searched make sure i do not consent to the search. do not challenge the officer, you can file a complaint about police services later, if you are not comfortable speaking english you can ask for a bilingual officer who speaks your language and also ask for a interpre

>> i came here to san francisco the day after september 11. i have been here since and homeless since when i met erika and claudia and them, my life changed. for the better. why they got mow in the navigation center. >> good morning! >> >> hi. >> this is claudia and aircraftasm how are you. hi. >> they are working doing out reach t. is building trust. and -- finding out what their needs are. everybody who i should be housed that is true. a lot of people don't know how to live indoors and how do we fix that? the number one service this we need to do that is the new vision of the team, is to be a familiar face that is consistent

and reoccur nothing the community. >> behavioral health starts with us and other coalitions that relate. just building the friendships and the resource this is go with that. >> once hi near i better place they will be able to help and support someone else. peers and inspire someone based on the hard work. like a lot of people around him in the castro. >> y'all saved my life getting me up off the streets. thank you. >> if you see someone experiencing a mental health or substance use crisis on the streets call 911. for nonemergencies use 311. you can learn more about the street on thirty incredible yea >> hi friends i'm cora and here at the lovely pier 39.

>> thank you so much more bringing use out here on a hot day. >> i thought that was going to be a breeze let's talk about abc 7. >> well, we are the abc in depth owned and operated in san francisco and been on air since 1949, and so in terms of what we do we report on stories to the bay area so inspiring people focus on finding common solutions and common ground so many to report this is 25 years. >> i don't believe it (laughter). >> i don't believe that it the bay area it lucky to have you why did you bring us to pier 39

what is it about this spot. >> look at this look at the energy and the excitement, you know. when i first moved here the same year from asian i was here with my family the chef and stormwater performers. >> check those out. >> (multiple voices.) >> today (laughter). >> so always something to do and energy but you can go everywhere up to the street to fairmdz where crab and- >> (multiple voices). >> together (laughter) and but the square. >> the foodie tour is part of it can you tell what i like chinatown. and walk down you, get to the science memorandum and exploratorium the ferry building. and absolutely a great

practice to come early or late hang outer at pier 39 at the christen. >> you're so welcome going 90 charlie. go ahead. we moved to san francisco in 1982. we came from the philippines. i have three kids nathan, jessica and iva. i was really young. when i had neat, i turned 19. and then two weeks later, he was born. so when he was fine, i used to watch cops all the time. all the time and so he would watch with me. he had his little handcuffs and his little toy walkie talkie. and then whenever the theme song came on, he would walk around and he just thought he was the baddest little thing. i think he was in kindergarten at sheridan because he and i attended the same elementary

school there was an officer bill. he would just be like mom officer bill was there then one day, he said, mom, i touched his gun. and he was just so happy about it. everything happened at five minutes. i would say everything. happened at 4 to 5 years old. it's like one of those goals to where you just you can't you can't just let go. high school. i think you know everybody kind of strays. he was just riding the wave. and i mean, he graduated. thank god. one day i think he was about 20 or 21. he told me, he said mom. i want to be a cop or a firefighter, i said. no you're going to be a firefighter. but that's really not what he wanted to do. his words were i want to make a difference. and that was a really proud moment for me

when he said that my dad was a cop in the philippines for 20 years. i think a lot of that played a role into his becoming a cop. my dad was really happy about it. my mom. she was kind of worried, but i just figured i can't stop him. he can make his own decisions. stu. i just want to say what's up? how you doing? good. good. no i'm trying to look good for us to looking good for us to so when he was in the police academy, mind you this kid was not a very studious kid. but i've never seen him want something so bad when he was home. he'd be in his room studying the codes. he really fought for it. hi. what's your name? i'm nate. nate is great with kids, and he would give them hugs or give them stickers.

i think that that's a positive influence on the kids, and then the people around you see it. once he makes that connection with people and they trust him that foundation that respect people look at you and see your actions more than your words and so that i think will reach people more than anything. you could say you later, brother. thank you. all right, see you. it's a really hard job. i know you. you see a lot of the negative for me. i would not put myself through that if i didn't care. you know, you have to be the right kind of person. you have to have the right heart to want to do that. when people ask me if you know what my son does , um, i just tell him he's a cop , and i just feel like i'm beaming with pride. i always told him when he was young that he would do something great. and

so to see it. it's i have a moment. i'm very proud of him.

>> good morning.

the meeting will come to order. welcome to nrfb 15, 2023 budget finance committee. i'm supervisor chan joined by vice chair mandelman and supervisor safai and joined by colleague from district 6, supervisor dorsey. thanks for being here. the clerk is brent julipa. i like to thank sfgovtv today for broadcasting this meeting. mr. clerk, do we have announcements >> please make sure to silence cell phones and eelectronic devices. public comment will be taken on each item. please line up to speak to the right, my left along the curtainess. you may submit in writing e-mail to myself sth budget finance clerk at

brent.julipa.org. you may also send written comments u.s. postal service to our office in city hall, 1 dr. carlton b goodlett place, room 244, san francisco california 94102 and due to the thanksgiving holiday items are expected to appear on the board of supervisors agenda of november 28 unless otherwise stated. >> thank you mr. clerk. before we call item 1, just wanted to as usual the standard practice for this committee is that, we will have items that presentation and for the items that have budget legislative analyst report we'll go to the department presentation, the bla report and then into questions and public comment. with that, mr. clerk please

call item 1. >> item 1, hearing to request information on health insurance rate trends and its impact on the rate the city will pay on behalf of its employees in advance and consideration of the city's budget process; and requesting the health service system to report. madam chair. >> thank you. colleagues, our first item is hearing i called so this body in charge with oversight and approving fiscal items and city budget can be omore informed as we move into the budget process. as you probably recall, last year as we were going through it budget process we also learned the escalated cost of health benefits by roughly $18 million and we-while that we were able to really maintain that our budget and balance during that time, i think it is critical for us to learn in advance about the trajectory of the continuing escalated cost

of health benefits. i learn as the board of supervisors appointing on the health service board as one of the most important roles is negotiating and providing healthcare for woand retirees. we may not always realize the rates that our health system negotiate of course ask a impact on our budget. i feel like it was important for us to understand the trends in the market and what we can look forward to. i asked the executive director of health service system abbey yants to present. before she starts i like to welcome our colleague, current board appointee to the health service board supervisor dorsey to make additional remarks. >> thank you so much chair chan. good morning committee members and everyone. as you may know i represent the board of supervisors on the health serveest system board

executive director will be presenting to us at the hearing and before we hand it off to abbey yant and like to commend her and the team at hss for great work. the san francisco health service system has a long history that deliver rates that align with industry trends that stay within the budget forecast. this reflects the organization commitment to financial responsibility and adaptability within the healthcare landscape. you will hear more about the value of health benefits and health sector and city staff benefit from well crafted labor contracts that stipulate low employee cost share. also the broader impact of covid-19 beyond the direct cost of care and how greatly impacted our community and workforce. our workforce has born a significant burden over the past two years with staff shortages and many departments and growing demand for higher wages front and center.

in response to the state demands on healthcare landscape, the phased introduction of new minimum wage for healthcare workers of $25 a hour can add another layer of complexity. these are not easy times for anyone in the realm of healthcare coverage and that's not limited to san francisco. in september a report noted 2024 will mark the largest jump in healthcare cost nation wide in a decade. as a member of the health service board i want to express sincere appreciation for the strategy decisive action and diligence by leadership and staff by hss during these challenging times the proactive approach taken to address these healthcare industry trends demonstrate commitment to well being of the community workforce and continued success of healthcare initiative. with that, i like to welcome abbey yant, .

>> thank you supervisor dorsey. chair chan and supervisor mandelman and safai. appreciate the time you set aside to do this as we talked over the years. the cycle of the business cycle of hss is very tight and difficult to take a pause and provide such a meaningful back-drop to the very significant costs that come before you in july. i do appreciate that. i also want to acknowledge my team here because i sure as heck don't do this alone and i have [indiscernible] cfo, i have [indiscernible] our coo, mike clark who is our lead actuary and very well respected in the field and holly my assistant and board secretary. thank you having us today. we'll try to be brief. we have spent quite a bit of time preparing and delivering trend complex trend reports and

education to the health service board and those are all recorded and online and available as education sessions for our board, so we are happy to provide that linkage should anyone need to take a deeper dive. today we will talk about hss role, the current health plans offered, and trends that are going on compared to benchmarks as well as macro trends in the industry, talk about what happened in 2024 and what we are doing at this point in time. as ben mentioned, the health service board does have a strategic plan and we have the goals of the first one being equity, but we also are working on system delivery components such as primary care practice and expanding mental health service because of increased

demand for mental health but affordable is sustainable is core to everything we do and work to strive on operational excellence to keep our administrative costs under control. you did--i did want to acknowledge the additional members of the helt service board. there are a combination of elected and appointed members. we have three members that are elected by other hss members, and then we have in addition to supervisor dorsey, we have two appointees by the mayor and one by the city controller. they take their job seriously and provide a lot to the agency and it is very helpful. next slide, please. the medical plans that we have now in place, this is slide from the deck that you saw in july at the full board meeting

when you were gracious to approve all the plan jz as you can see, there is wide variation in the rates and increases or some cases-i don't think this slide reflects it, but some areas stabilized and others jumped up, next year maybe more the same, maybe totally different but we'll talk about the trends and how difficult it is to project what is going to happen. slide 8. >> i don't know if better to wait if i have a question but slide 6, in the september meeting there was a reference to for the united healthcare plan. there were issues with ucsf medical. i recall this was mentioned and can you give us a update? >> i wish i could tell you it was resolved but it is not. it is a little complicated to explain, but let me give it a

shot. it is the medical group that ucsf, not the medical system. the medical group has been providing care to members of united medicare advantage plan for years, but not contracted with them. they are called a willing provider so they are willing to provide the care to the patients and accept the payment medicare sets and that is the way it operated forever. they chose this year to seek more-formal contract with united healthcare. they have not come to agreement on the terms of the contract are, and so they in the summer we started getting complaints from members they were having difficulty getting an appointment so when we found out about this, and then that simmered down for a while.

i think they were trying to both parties trying to negotiate. we learned just yesterday that that negotiation has stalled and the medical group is going to continue seeing patients that are currently under their care, but will not be accepting new patients unless they can reach an agreement with united on each individual case, which is very administratively intensive and slow, so it is-we are not in a good place now so encouraging both parties to go back to the table to try to resolve this, because we do have probably about 4,000 members that are under care at the university, and so we know that they will continue to receive care, but any new members will not or will face some administrative challenges, which is not what we want to see at all.

we are working closely with both parties now. it is difficult and kind of in the middle and dont have the right kind of influence over either party. thank you for asking. so, the trends up until 2024, you can see on this line graph --we are fairly stable. the dark black line indicates what happened last year. the 10 counties, the benchmark we use and present every year is failly stable. it usually lags behind our increases, just because we get the publicly available data from them after it's made public. so, the historical trends have been like 5 percent or lower, and that's what we use to forecast for budget purposes. we revisit the trends every

year. as i mentioned we have actuary service through aon and are fairly confident in the forecast we set forth. however, in 24 that jumped up to 10.7 percent overall, $79 million increase and in dollars $31 million more then what we asked the mayor to put in the budget, so that's what caused us all to sit back and try to figure out where we are. you can see how that jump

peaked in 22, and so if we are lagging by two years, that kind of makes sense. the escalated medical drivers into 24 include a lot, but these four i want to mention. the healthcare wage and supply cost inflation were all pretty attune to that, the workforce shortages, the cost of labor during the pandemic was very very high with the use of traveling nurses et cetera, and subsequent to that, there have been a number of factors that are pushing the healthcare wages up for a lot of good reasons. there is also a increase in the demand, so the delivery of service, mental health and substance abuse we all are very

sportive supportive of, but it is added cost when you provide more services. and then chronic conditions are on the rise in our population in particular where people are living longer with these conditions and then covid as we know the long covid is becoming-some are considering a chronic condition. it is a little soon to declare that, but that is an ongoing cost. and then the cost shifting i think many heard about this over the years, but it is the medicaid dollars and medicare dollars don't cover the total cost of care then the cost shifts go to the commercial insurances and so that is yet another reason for these increases. if we look on slide 12,

healthcare wage inflation, as the employment declined from the start of the pandemic and now we are seeing elevated increases with the tight labor market, so it has just been a swing, and the demand is-has come back. the are contractual agreements, kaiser got their agreement settled to the impacts the cost of care going forward. and then in september the governor signed the bill to increase the minimum wage to $25 an hour for healthcare workers. there is graduate table for that coming into effect, but again, contributes to the cost of healthcare. slide 13 just talks about nation wide. $200 billion cost attributable to covid by 2027.

while we have the pandemic under control, the disease itself is with us and will continue to contribute to the increase cost of healthcare. on slide 14, we talk about pharmacy. we can spend days talking about pharmacy. specialty drugs and all the new miracle drugs coming to market are really tremendous developments. they really treat cancer very effectively. there are just wonderful things to say about specialty drugs accept for the cost. they continue to escalate with no controls. the utilization of traditional and brand and generic drugs has been the go-to try to save money on pharmacy. we got that locked down good with the plan jz members so not significant savings on the horizon using thaz as a tool for us. we'll be diligent about continuing our practice.

we also saw the last few years an opportunity to influence the use of what is called, bio similars for some drugs. it is a adequate substitution that is much less costly. we pushed that to the mat and have very good practices throughout our health plans. the most recent are the glp drugs intended to treat diabetes having the added benefit of working for weight loss and extremely high cost that comes along with it, and it's really not clear at this point in time what the cost of that will be should the individuals taking it be on it for a lifetime. there is a lot to be learned. it is an exciting drug, has

interesting side effects and things explored how it may have impact on addiction, so it is really quite a fascinating and exciting and problematic situation, so we are watching and listening to the experts as the utilization of this drug really explodes. we will all learn more. on slide 16, we talk a lot about the health of our population, because clearly the healthier you are, the less costly from a health perspective because you are not using the services. the primary reason for healthcare cost is utilization of services, so that is not at all to imply we don't want people to use services, we sure as heck do, but we wish that we were all better at preventive services so that we could either delay the onset of

chronic illnesses or perhaps not succumb to them at all. that is very much a top of mind as we look at our population and what the risks are and the sicker the pop ylshz is, the higher the cost, the higher utilization, the higher cost of the insurance premium, so that is pretty logical. on slide 17, we see in the insured population just as i know you heard i'm sure from the health department and others on medicare medi-cal populations, it is a small percentage of people that drive most of the cost, and in commercial insurance we too look at the social determinants of health and consider whether housing and transportation and other needs influence their care and their health and so we are working-the health industry itself is grappling with how to address that in the insured population. on slide 18, it is just sort of

a summary slide of again, what occurred last year. the cost inflation projection by kaiser to set the hmo rates. both for the active employees and early retirees. the blue shield elevation was really more due to the increased high risk of the population and utilization in services. the uhc medicare advantage product that we just talked about, their-let me see if i can get this clear. 11 thousand people a day are aging into medicare, so they have-they year over year do a increase in payment to their plans. this past year they began a process of ratcheting down that increase, so it is still going

up, but not like it did. so, the plans that rely on medicare dollars from cms they adjusted for that lack of income from cms by increasing their rates. so, that's a challenge for the entire medicare market, and it is a shifting that cms is being very diligent about how they go about this, but they have projected the challenge for cms dollars through 2031, which is when the last of the baby boomers age into medicare. this is not a phenomena that will go away. we will be in the--in the

business of buying retiree health, which is primarily medicare, this is something we will see year over year as we go forward. simply because there is more people entering medicare. the kaiser medicare, they have that challenge, but they also--the way that the budgets are administered both within kaiser and federal government are a little out of sync so we see a little see saw effect every year with kaiser. one year is higher and the next is lower because they have to adjust based on the medicare dollars and their clock doesn't sync well with ours i think is best way to say that. blue shield products, there has been some increase in cost claim experience, and we added resources to help with the care

management because that often is a big factor in these costly cases that things get managed well, so that patients can seek care in lower levels of care. we did-we saw a big drop in er utilization at the height of the pandemic, but boy,b it is back and that's not necessarily a good thing. it is a expensive place to get care if you can't get it at your physician office or urgent care, that's one thing, but if you haven't tried those, it is quite another. we are working with all the plans to help our members recognize where to get services and to seek emergency department bh needed, but that is not always the case. health net canopy care hmo, one of our smaller plans. they have lower risk population and they have a very physician lead care management approach, so that's another product along

with the trio that are both pretty reasonably priced and i will say that one of the challenges that we have with our very generous agreements with the labor unions on how the share of cost between the employer and employee is set, the challenge with that is if we have a lower cost plan, the member isn't necessarily going to jump to it because they save dollars because the dollars in the take home pay is pretty small, and they don't-why bother? it is a challenge to try to encourage our members to go to lower cost plans and one we continue to seek new ideas on how to do that, because it is a obvious way to help people save money and the system to save money. so, next slide holly i think is medicare plan and i think we

spoke to that already. so, what are we doing? these are three major initiatives we have underway where we are working closely with kaiser to understand how the increase in the premiums this year are covering the cost of the actual utilization, because this is where we were out of step i think last year where we didn't--kaiser was using an additional methodology. we normally look back at the utilization of services, but kaiser was also setting their budget based on future cost, which we understand the wage increases that they have underway, but we also are concerned that we can't continue that year over year increase that we experienced last year. the blue shield access and hmo,

as mentioned early on one of the strategic initiatives and look at primary care and strengthen that because a strong primary care practice can really save money because they are manage a lot. they can manage the specialty referrals with the right care management and social services report and behavioral health. they can really help the member and reduce the cost, so we have a number of partners we are working with and excited this is finally starting to move and it will be a industry wide shift if we are successful. and then i mentioned to you the mappo, the united product last year cost increase directly related to the shifting of the medicare dollars from the federal government. so, those are the primary actions, and underlying all

that is our--we can't do anything alone. i learned very early on in this job that as big as our membership is, it isn't big enough, so we partner where we can with cover california and calpers looking at cost and quality initiatives. their are very much part of the primary care initiatives and it is certainly beneficial to us and they appreciate our participation as well. we have a lot of partners there. and then, the next slide is really looking at the near term focuses. the majority of the healthcare spend is fully insured plans. hmo, united healthcare based on enrollment distribution. we continue to really partner with these organizations to understand where these rates are and so that we have less of the surprise going forward, and can keep the rates sustainable

for us as a employer. keeping in mind we also in addition to the city, also buy insurance for the school district, city college and the courts, and there are challenges in many ways even greater then the city, so i think it is important we recognize our obligation to all our employers. i do appreciate you having--i put the clock slide in the deck to reemphasize where we are in the cycle. we are in the 4th quarter where we are about to initiate the renewal letters where we request their proposals and are very specific about what we are looking for, and we are also as of last friday announced we are doing a competitive bid, rfp for our medicare advantage plan, so that is going out to

market and hopeful we'll see a cost reduction in that product as well. in sumimation, we continue to elevate strategic goals, monitor the data from the plan, hone or repreliminary renewal forecast, communicate with the health plans on a ongoing basis, base with those that have multiple provider contracts, whether with physician groups like ucsf medical group, or health systems. promote plans where the financial or service improvements are expected and partner with plans that are strategically aligned towards market value driven care. >> thank you. i appreciate the time and the presentation. i want to quickly go back to slide 16 and to help us understand better just overall cost and spending for us.

right now, here in the slide 16, indicating in crisis members are 2 percent and out of which cost 79 percent of the spending. and that 2 percent is for the all enrolled members. if we can do a quick sort of like number translation, meaning a true percent of all enrolled members is how many individuals and then 79 percent of the cost in dollars. >> mike clark, actuary. about 2 percent of total enrolled members, there is 126 thousand total covered lives, so 2 percent is approximately 2500 and then the total cost of the net cost of the city i think there is approximately

for the medical plans specifically, approximately $800 million, so 79 percent of that is about $640 million. >> so, for the 2500 individuals--sorry, i just want to make sure i understand the number correctly. for the 2 percent, equate to about 2500 individuals and that is over $600 million of cost? >> in total. now, this would also be a combination of fully insured plans where that 2 and 79 integrate to the overall premium, so these statistics are based on actual utilization which does present in the blue shield hmo, health net plans because those are self-funded and the ppo. the fully insured plans have the same dynamic, but the healthcare rate paid by the city would be the same no matter where someone would fall

on the spectrum. >> that have quite a significant-just having 2500 individuals in crisis and the cost is 79 percent of what we are spending. i want to again understand just numbers of people and dollars and that's very helpful. i really appreciate it. i also appreciate that you are doing the math on the spot. i then now want to go into if i may, is the medicare retirees reimbursement. learning cms has lower rate and again, learning that 11 thousand people per day continue to enroll and require the medicare spending. it is significant. my assumption is that number is a national number of a daily for the cms for reimbursement for medicare. if i understand that correctly, typically it seems to me the average rate of rebim bursement

is 75 percent for medicare and that is no more then 80 percent and consistently the city throughout and will be distributing or support ing and subsidizing that remaining of those 15 percent or more, and so in this case, when you mention ed in the presentation referencing slide 18, now you have mentioned just seeing that the medicare because cms has now lowering their reimbursement, could you just elaborate what does that mean in terms of percentage a bit more specific. existing reimbursement versus the new reimbursement rate. >> actually if i ask you to pivot to the next slide. this was a chart that we shared with our service board during the june renewal cycle and what you see here is the overall

cost of the plan, so if you just look at the cost utilization going up 6 percent, typical for a national trend, what transpired into this cycle is there were three different elements that lead to the cms increase lower then years past. in year pafs past on the slide cms increase would have also been approximately 6 percent, but there were changes in reimbursement methodology that took place for 2024 that brought that cms funding increase down to 3.2 percent. you can see here in the blue part of the bar, the majority of the plan cost is funded by the federal government and that continues to be so, but what happens is the premium then that are cascadeed to the city employers is magnified with a increase, so it is essentially a algebra difference between 6

percent total, 3.2 percent on the majority of the funding that lead to the 15 percent premium increase that you see in the orange bars. >> and so with that total plan cost of 6 percent, what does that equate to in terms of dollar amount for us? >> so, the total cost of the plan increased approximately 18 to $20 million for the uh c medicare advantage plan in 23-24. >> so, now i add a third layer to two parts of these questions is that, identifying all enrolled members and understanding just the portion of which that is actually medicare retiree of the all enrolled member and just-because i think director yant made a really good opponent and it is like as i'm learning as well through this process and thank you so much time spending time with me

prior to this hearing so i'm prepared and educated within this context is that, identifying medicare is going to be continuing. this trend of lowering its reimbursement rate. this will not go away and we continue to have retirees and they will continue. i think it will be really helpful to understand if not today, but at some point to understand the trajectory of the increase of number of members that we see in retiree and the trajectory of the rebursement rate from cms for medicare. i think that it will help us at least this body, i think osthe city itself to be able to understand the trajectory of budget for healthcare and health services benefits for our workers. i think that with that is a one more key elements to consider

in our workforce, both in negotiations and conversations, but also as we start thinking about hiring and our entire workforce that this is actually part of the calculation of the cost of doing business so to speak for the city to make sure that when we continue these conversation we are mindful of the cost not just for this one budget cycle, but trajectory of it. if there is a slide right now you can point me to i will appreciate it, but if not i look forward seeing that information. >> actually, the request for proposal going out next month for the uhc medicare advantage plan, ppo plan will help provide a lot of information to us about what the different bidders are projecting for 2025 rates and beyond, so i appreciate the question and i appreciate the proactivity of

hss by proceeding with the request for proposal initiative. >> thank you. i just want to concur with supervisor dorsey comment at opening remarks we are grateful to your team and your team's work director yant and today it is a conversation we can have transparency and just give us an opportunity too. not for those of us did not and are not as appointee on the e board and having that information early on as we continue to think about the budget and also just appreciate that you having a foresight to say, this is something that this portion of medicare for retiree benefits we would like to see a rfp so that we actually have-we may not change it, who knows, but at least we have the information from the market directly that allow us to have better decisions. i really appreciate the effort and the work. thank you so much.

i don't see any name on the roster at the moment, and i think that we will go to public comments for this. thank you. >> yes, we now invite members of the public who wish to speak to line up along the windows and please report to the lectern and all speakers have two minutes to speak. >> good morning. you want to understand-if i may, if you want to understand the nonsense between [indiscernible] you first ask to realize that health is not for sale. health is not for sale. the reason why it is not for sale anymore is because it is very connect with your reason for being, which is to be happy. happiness your reason for being is not for sale. it has been for sale yes, by mistake for too long now in the

history of--that's it. stop please because this is not the picture. if you keep trying--to sell health and make a profit of it from it, which is [indiscernible] you then are not part of the future. we are here to change what's going on today. so stop. >> thank you much for your comments. seeing no further speakers, madam chair. >> thank you seeing no more public comment, public comment is closed. colleagues, i would like to make the motion to file this hearing. i am just thankful that everyone take this opportunity and thank you supervisor dorsey for being here with us today so that we have now some information in advance as going to the budget to understand that the health benefits cost

to the city as we continue to make budgetary decision. with that, a roll call to file the hearing. >> on that motion the hearing heard and filed, mandelman, aye. safai, aye. chair chan, aye. we have three ayes. >> thank you. motion passes. mr. clerk, please call item number 2. >> item 2. hearing to consider the citywide project labor agreement (pla) that was executed; the annual reports for fiscal years 2020-2021, 2021-2022, and 2022-2023 that highlight the efforts, accomplishments, and challenges encountered; and the preliminary, high-level methodology developed to evaluate whether the pla has promoted the efficient, economical, and timely completion of pla-covered projects, the costs of covered projects, and the pla's impact on local business enterprises and the local workforce; and requesting the controller's office, city administrator's office, public works, recreation and park department, and office of economic and workforce development to report. madam chair. >> thank you mr. clerk.

this is the item sponsored by supervisor safai. >> thank you chair. if it okay, i like to continue this item to the december 6 meeting. i just need some of the individuals that will be involved in asking questions and presenting a little bit more time. >> understood. with that, i should we go to public comment on this item for the continuance of the hearing? >> yes, we now invite members of the public who joined who wish to speak on the continuance of this hearing on item 2, please come forward to the lectern. madam chair, we have no speakers. >> seeing no public comment, public comment is now closed and would like to make the motion to continue this item to december 6. want to confirm the date is correct? >> correct. >> december 6 hearing. with that. roll call please. >> on the motion to continue

the hearing to december 6 meeting of this committee, mandelman, aye. safai, aye. chan, aye. we have three ayes. >> thank you. motion passes. please call item number 3. >> item 3. ordinance amending the business and tax regulations code to broaden the exemption from the increased transfer tax rates when the consideration or value of the interest or property conveyed equals or exceeds $5,000,000 for transfers of certain rent-restricted affordable housing; applying the exemption retroactively to transfers occurring on or after january 1, 2017; extending the exemption through december 31, 2030; and affirming the planning department's determination under the california environmental quality act. madam chair. >> thank you mr. clerk. just want to acknowledge that supervisor preston who is the sponsor of the legislation is here, and are would you like to--open open remark?

>> thank you chair chan and thank you to you and the committee for hearing this today and the item before the committee is a ordinance to further a goal i know every member of this committee and this board of supervisors believes which is more affordable housing in san francisco. the ordinance seeks to achieve this goal by further exempting affordable housing in certain transactions related to affordable housing financing, as well as reduce the fees and penalties for previous transfer tax assessments for affordable housing providers. this efforts related to city transfer tax and the efforts over the past 15 years to increase the transfer tax rate most recently in 2020 with the ballot measure that i authored prop i which doubled the tax for the highest value properties, those assessed $10

million or more. the administrative code provides the board with authority to exempt transfers of rent restricted affordable housing from these transfer tax increases. in 2019 the board exempted transfers of property under the community right to purchase copa from these increases in 2021. the board passed our ordinance that applied to affordable housing transactions valued at $5 million or more effectively reducing the transfer tax for those properties to .75 percent. the ordinance before you today builds on the 2021 trailing legislation effort to insure that the intended exemptions apply to affordable housing providers. briefly, what the ordinance actually does is extend the existing exemption by 6 and a half years through december 31,

2030, and applied the exemption retroactively 4 years before the existing exemption start date. this helps provide clarity going forward by extending out the existing exemption and relief for tax bills affordable housing providers did not anticipate from previous years. the ordinance also broadens the exemption to allow for properties with at least 90 percent of residential designated rent restricted affordable housing units, allowing them to qualify. this provide latitude for affordable housing projects that include units for example for on-site managers, which typically may not be rent restricted, but still part of what is a affordable housing project. also clarifies certain transactions including where a limited partner exits the partnership around year 15, year 15 exits, thus changing

the ownership structure at that time will not trigger the tax and not subject to it pursuant to the ordinance. the ordinance also further refines the process for qualifying for the affordable housing exemption providing a timeline for qualifying for welfare exemption under section 214 and lastly, the ordinance waves all penalties and interest on transfer taxes imposed on the transactions that qualify for the exemption retroactively including penalty and interest on portion of the tax not apply today the exemption. the changes help insure we are extending relief to affordable housing providers to the extent our code allows and the voters have allowed and insuring that rather then penalizing provider, we are waiving penalties and returning funds to providers so they can move

forward and build more affordable housing. getting this balance right has taken a significant amount of time and effort and i really want to sincerely thank the brain trust of advocates and practitioners who helped shape this ordinance. there are many, but it is especially want to thank john avalos from the council of community housing organization and katie lumont from the tenderloin neighborhood development corporation for sharing their expertise. i also want to thank department staff working through the many drafts and thinking through the implementation of this and that includes shealy nick lopilous, [indiscernible] and jacky sue at mayor office of housing and community development. holly lung, juan carlos and [indiscernible] city attorney office including and especially

scott [indiscernible] carol and keith [indiscernible] and deputy city attorney ann pierson and my chief of staff, kyle for all his work on this. with that, want to thank you chair chan for your cosponsorship of this measure and ask that the committee forward thish item with positive recommendation to the full board and in the event there are questions i understand staff from mohcd is here as well as the assessor recorder office and bla and i will remain and hopefully between all those folks answer questions the committee may have. thank you so much. >> thank you supervisor preston. >> good morning supervisors. nick monard from the budget legislative analyst office. item 3 is ordinance that amends the business tax regulation code to accomplish a couple things. one is that, it extends the

existing exemption for affordable housing projects from increase in transfer tax from the expiration date of june 2024 through december 2023 and also extends the exemption retroactive back to january 2017 and also expands the definition of affordable housing. we detail the fiscal impact on page 5 and 6 of the report which we estimate between 30 and $45 million in reduce general fund revenues over the entire period back to 2017 through 2030. that may be under estimate because it doesn't account for the expanded definition of affordable housing and our analysis is based on existing transactions you see current definition of affordable housing. we do consider to be a policy matter for the board. this is reduction in general fund revenue but the trade-off, there is additional funding for affordable housing operators. some of the money may flow to

the city if the city has loans on those project s and may recover the tax savings through the residual receipt policy. >> thank you. before i call on vice chair mandelman, i just want to make brief remarks as a cosponsor of this legislation that, i in fact appreciate the budget and legislative analyst report. i do concur though with the evaluation that or the analysis that we actually under estimate the cost to the general fund. anticipating and which i hope the passage of both the $300 million housing bond for affordable housing in march as well as potential regional affordable housing bond this coming november in 2024, that i do hope that we will see more and more affordable housing projects in the city--in san

francisco. that also probably means the potential of greater loss of general fund when we provide the lower or this exemption and the lower bracket so to speak for transfer tax for affordable housing project. but i do also believe that the fund will end up contributing back to being able to build affordable housing. typically if i understand correctly and the mayor office of housing can correct me if i'm wrong on this and raise your hand, that we do provide loans to our non profit affordable housing developers and so that with that that part of that loan and funding that eventually is city loan and that also contribute to the transfer tax and by doing so, we now then have more dollars that can go further.

it is the reason why i'm a cosponsor of the legislation. at the end of the day the beft is the fact the city can build more housing and not just any housing, but most importantly, crucially the affordable housing, 46 thousand units we need to build by 2030 . with that, vice chair mandelman. >> thank you chair chan, and thank you supervisor preston for your work on this. it seems like a modest-very modest step towards reaching our 10s of thousand units we need to of affordable housing and think it is good thing to do and like to be added as a cosponsor. >> thank you so much. supervisor safai. >> thank you. appreciate the thoughtfulness that went into this. i think it is important to understand that sometimes there can be a little of a deterrent when it comes to where we are in particular environments and

want to remove some of those barriers and think this is a good targeted way to do that, specifically on programs that have been successful, so think this is a continuation. this is extension of what something that has already been there and i think proven to be helpful and i think one of the most important things you said and i heard from folks that called in support of that, this allows that money to then stay within the universe of affordable housing providers to invest back into their properties, into providing services and/or building more affordable housing which i think is really important, so i am supportive of this and would also like to be added as a cosponsor. thank you. >> there you go supervisor preston. >> thank you all. >> with that, let's go to public comment on this item. >> thank you madam chair. we invite members of the public who joined today who wish to speak to line up now. yes, come forward to the lectern and i'll start your

time. >> good morning. john avlos. like to thank supervisor preston and his staff for working with all parties on this legislation, working with assessor office and mayor office of housing and community houses organizations. that collaboration was great and important to get this legislation right. this also want to thank the cosponsors as well, supervisor chan, mandelman and safai. this ordinance addresses voter approved legislation that increase san francisco real estate transfer tax and created unexpected consequences for non profit housing developers who formed temporary limited partnerships to finance the production of rehabilitation of affordable housing offering public good stable affordable housing has the benefit to low income residents and wellbeing of all san franciscans. after 2017 affordable housing organizations like tenderloin neighborhood development

corporation and chinatown must use the limited stretched dollars to pay millions of dollars in new transfer taxes as the partnerships desolve after the 15 year buy outs. the result is huge financial burden to non profit houseers with real impact to the operation of san francisco affordable housing stock essential to the wellbeing and well management of affordability housing residents. for [indiscernible] pressure dollars for application of real estate transfer tax never intended only exacerbates the lack of coherence between the affordable housing goals and solvency. [indiscernible] because this tax increase draws down pressure public funds needed for affordable housing thrks loss of money pails in comparison to public good to low income san franciscans. this relieves a lot of pressure on non profit housing

organizations and will actually make tenants lives a lot better and i urge you to support this legislation. thank you very much. >> thank you and just want to acknowledge that former supervisor john avalos. thank you so much. >> thank you so much john avalos for joining us today. next speaker, please. >> morning. kevin, mission housing. john avalos covered a lot there. thank you. thank mayor office of housing staffism . thank you for this precise look-back. thank you for the sunset provision, thank you for good public policy on this and thank you for helping affordable housing providers and their residents. thank you. >> thank you for your comments. if we have anymore speakers-- >> good morning chair chan, supervisors mandelman and safai.

also supervisor preston. i just want to thank supervisor preston's office. the mayor office of housing community development. the tax assessor office. everyone and all my colleagues and leader at [indiscernible] for organizing everyone. it is very arcane and not sexy and incredibly important and impactful to housing providers across san francisco, especially in these challenging times so i just wanted to say thank you. i forgot to identify myself, my name is katie lumont, the chief operating officer at tenderloin development corporation. >> thank you. >> good morning. want to echo my appreciation for your hard work on this and the work of the staff and katie lamont to make this happen. supervisor preston your office staff is incredible helpful and very supportive of the item. thank you.

>> the only just little problem is you still haven't defined affordable. you need to define it whether you are talking about budget all the time, money, money, so define what affordable means. hello. it is abc isn't it? you are doing--since you talk about numbers. >> thank you. last call for speakers on this item? madam chair, no further speakers. >> thank you. public comment is now closed. colleagues, i like to move the item to full board with recommendation and with that, roll call, please. >> on that motion to forward the ordinance to full board with positive recommendation, mandelman, aye. safai, aye. chan, aye. we have three ayes. >> thank you. the motion passes. please call item number 4. >> item 4.

resolution authorizing the recreation and park department (rpd) to accept and expend up to $3,900,000 in grant funding from the california department of parks and recreation for the buchanan mall project; to enter into a grant contract with the california department of parks and recreation that require, among other things, that rpd maintain the park as public open space in perpetuity; to record a declaration of restrictions on the buchanan mall property designated as assessor's parcel block no. 0748, lot no. 033, assessor's parcel block no. 0757, lot no. 026, assessor's parcel block no. 0772, lot no. 023, assessor's parcel block no. 0781, lot no. 035, and assessor's parcel block no. 0795, lot no. 028, providing notice of these restrictions; and to authorize the general manager of rpd to enter into modifications or amendments to the grant contract that do not materially increase the obligations or liabilities to the city and are necessary to effectuate the purposes of the contract or this resolution. madam chair. >> thank you. today we have tony mor an from sf rec and park. the floor is yours. >> good morning. the item before you is a resolution to approve $3.9 million grant from the california state park department for the buchanan

mall project. this legislation also allows the recreation and park department to enter into agreement with the california state park department to make modifications necessary to deliver the project and also to file a deed restriction on the park parcel that comprise buchanan mall. the-background, buchanan mall is 5 block mall between eddie and grove street in the western addition neighborhood. the city and county of san francisco owns all the park parcels that comprise the park and operated and maintained by the rec and park department. the park was constructed in the early 80's as part of a redevelopment when this portion of buchanan street was closed to vehicles. they built park space that included green spaces, three playground, half of basketball

court and asphalt-lots of asphalt paths. currently there is upgrades and the site is maintained but hasn't been major improvements to this park for quite a while and doesn't provide the services that the surrounding community needs for recreation. also this project is surrounded on all sides by subsidized housing and senior housing, which represents 394 households. within a half mile radius of the park there are approximately 30 thousand residents with all most 5 thousand individuals living in poverty, 3 thousand youth, 5500 seniors and 7 thousand individuals without access to vehicles. this makes having this park space improved even more important so they can walk to the nearest park. in 2014, the community based organization green streets and

citizen film started collaborating with the trust republic land, rec and park department and the exploreatorium to develop a outreach program for the community. after many meetings the community developed what is known as the buchanan mall vision statement and since that point we have been not just rec and park department, but the project partners have been securing grant funding for this project. this grant i'm presenting today is one identified in the funding strategy. we applied for this round 5 rec legacy partnership grant that make improvement to two park blocks. the grant was awarded about a year ago and now in the process securing a grant contract and expect to have this week or next and after approval from the board we'll execute the

pract contract with your approval. as a condition i want to reiterate, we need to file a deed restriction protecting the property as public outdoor recreation space in perpetuity. this is very common requirement for this federal grant program. in closing, i am asking for the budget finance committee to make a recommendation to the board of supervisors to authorize our department to accept and expend a grant to authorize the general manager with to enter into the grant agreement with the state of california and to file the deed restriction or declaration restriction on the park parcel. i'm available if you have any questions. >> item 4 is a resolution that would allow the recreation and park department to accept a grant from the state department of parks and recreation. the grant is $3.9 million and requires a one to one match

from the city. page 10 of the report the match is met by a sfpuc green infrastructure grant development impact fees and then a separate state grant from the california state department of parks and recreation. the grant will help fund renovation of two of 5 blocks of buchanan mall. we recommend approval of item 4. >> thank you. buchanan mall is such a critical space and really in need of love and care and improvement, so improvements and i just really appreciate that rec and park has actually dedicated its time to and resources to make sure that we continue to keep up with the improvements and it just really good to see how that area has continue to change, but i also

think buchanan mall connect the neighborhood in a much vibrant and great just much better way to see how all the residential units are connected through that space. with that, let's go to public comment. >> thank you madam chair. members of the public who wish to comment on the resolution, please line up. madam chair, we have no speakers. >> seeing no public comment and public comment is now closed. and vice chair mandelman. >> thanks madam chair. i like to be added as a cosponsor. >> with that, thank you and let's--sorry. and also supervisor safai as a cosponsor and want to acknowledge that and with that, i would colleagues i like to move this item to full board with recommendation and with that, a roll call, please.

>> on the motion to forward to full board with positive recommendation, mandelman aye. safai aye. chan, aye. we have three ayes. >> are thank you. the motion passes. mr. clerk, please call items 5, 6 and 7 together. >> items 5, 6 and 7 are relutions authorizing the port to enter into amendments or modifications to the matters that do not materially increase obligations or liabilities to the city and necessary for purpose of respective resolutions. item 5 approve concern amendments to form of parcel lease between the port and sea wall lot 337 associates llc, subsidiary agreement under the disposition and development agreement for the mission rock project approving certain amendments to leases for parcel a, b, f and parcel g with affiliates of the developer

adopting findings under ceqa. 6 and 7 approve port commission leasewise the effective upon approval of resolutions. item 6 recology san francisco located at pier 96 for approximately 196 thousand square feet of shed building and loading dock space and approximately 252 thousand square feet of paved land and yard space which initially generate revenue to the port of approximately $369.5 thousand per month for term of approximately 74 months. item 7 is with anderson enterprise inc. located at pier 68/70 shipyard for 116 thousand square feet of paved land and 2,000 square feet of shed space for an initial monthly rent of approximately $67 thousand and term of three years with three mutually agreeable one year extension options. madam chair. >> thank you mr. clerk.

with that, we have-sorry, i are think josh keen, waterfront development director. >> thank you chair chan and good morning. thanks for calling these together. this will be a three part. i will take the first item and we'll do three series of very brief presentations with my other colleagues from the real estate group. i'll go quick on this one because this is more a technical amendment and clarification. i will answer any questions if you have about mission rock. we covered it two weeks ago so not going through that in the base presentation. basically what this is, this is a amendment to the parcel leases that we have at mission rock, which is agreement between the port and vertical developers. there are 4 buildings with active parcel leases buildings a and f. the canyon residential open now and parcel f which is residential building opening next summer both with

aforpdable components inclusionary on-site close to 40 percent and the other is the future visa headquarters occupying early next year and there is a also a future office and life science building. what this is doing is amending the parcel lease to reflect the original tent of the parties, the first of which was one a error in the drafting and the other two were clarifications from the port perspective. what these pertain to is-all in the financing side how the port participates which is a common function in our development deals where when there is a sale for profit or there is a refinance netting proceeds to the project, the port gets a small percentage of that on a on going basis. these events do not happen regularly but do happen especially in the early stages when we refinance. on the basic level happy to explain more.

we are clarifying the base under which the port participation is calculated and what we are saying is we participate after an existing debt has been paid off which is the normal way to do it. it wasn't drafted like that. to how we set the purchase price. it is established and competitive environment in a very unlikely event of for closure where usely distressed value we do not want to reset the value. on this project we have job housing equivalency fee which is similar to the linkage fee we use in general impact fee world. this clarifies the office buildings who actually paid money to the residential buildings to help sbsdize affordsability get credit for that when they calculate participation in the future sales. that's all i have on there. happy to go into questions about these parcel leases or mission rock project if

helpful. >> thank you. not at this moment. we appreciate it and let's go to item 6 and 7, which both have bla report. let's go to item 6 for department presentation and then bla report and following. >> good morning chair chan, supervisors mandelman and safai. kimberbly beale. i want to thank colleague josh keen for his assistance with the slides. before you is a 6 year lease covering outbuilding land and shed space for recycle center operation with recology san francisco. recology is an existing port tenant at pier 96 near amdore. the proposed lease approved unanimously by the port commission october 10. next slide, please. the existing lease was for a term of 25 years.

the least expired july 1 of this year and tenancy is is is month to month. the base rent increased august 1 to $369.500 following appraisal. the new lease before you is for approximately 6 years with monthly base rent of $369.500 per month which increase annually by 3 percent subject to fair market rent increase with the 5th rent adjustment. the tenant also is required to provide at the cost and expense seismic and facility condition assessments. estimated cost of procuring the studies is about a million dollars, which is additional compensation to the port. next slide, please. port competitively bids for development projects retail and restaurant leases and excursion operations. this particular location is considered industrial maritime facility where maritime uses are given precedent.

the port did not bid this lease because the site is subject to storm surge and storm water run off that result in periodic flood risk. the site is reclaimed with fill over bay mud and soil condition of the field site cannot support additional vertical development without extensive engineering. giving these conditions, it was concluded through appraisal the highest and best use of the property is for continuation of the existing use. we have a stable tenant in place in good standing, meaning in compliance with the current lease and no outstanding issues. port is therefore seeking recommendation of the resolution before you. thank you and i am available for any questions. >> thank you. >> item 6 resolution that approves a lease between the port and recology on pier 96. recology has been at that site

since at least 1998 recycling sorting facility. the facility used to have a maritime component but no longer does as the recycling is now trucked out from that facility, and we detailed the terms of the lease in our report. it is a 6 year lease with a base rent starting at 4.4 $4.4 million a year, consistent with fair market determination provided by the port. the lease escalate 3 percent a year and reset to fair market rate at the 6 year so estimate the total revenue to the port is $6 year so estimate the total revenue to the port is $28.7 million and as noted recology would pay for seismic evaluation and facility condition assessment at not to exceed cost out of its pocket up to a million dollars, which inform future use of the site.

i just think this is a reasonable approach given the short-term lease and recommend approval of item 6. >> thank you. let's go to item 7. >> good morning. jennifer ge, senior property manager for the port. the item presented today is proposed new lease between theer port and anderson enterprise known as anderson. in 2018, the port entered into lease number l16471 with anderson for their use of land and shed space at pier 68/70 shipyard. the lease expired october 31 and on hold over status. anderson and the port wish to enter into new lease agreement for reduced footprint for term of 3 eryoos and 3 year one year extension options.

the proposed lease was unanimously approved by the port commission in october and we are before you seeking recommendation for the approval of new lease number l17093 between the port and anderson. my apologies, there is a small error on this slide. the lease includes a premises of actually 116.343 square feet of paved land and 2010 square feet of shed space at the shipyard. the reduction in space is due to space needs that are needed for a potential removal and sale of the dry docks at the shipyard. permitted activity includes vehicle storage detailing preparation and predelivery inspections of the vehicles. the term proposed is 3 years plus 3 mutual 1 year extension options. rent is current port commission approved parameter rates with annual increases. the anticipated revenue over

this initial 3 year term will be just over $2.4 million provided anderson exercises all extension options, the potential total revenue over the entire term is approximately $5.2 million. port staff anticipates anderson continued use of the premises will increase rent revenue to the port while serving as temporary activation of the pier 68/70 shipyard until a permanent maritime tenant is found. the proposed use is continuation of existing related uses and therefore not subject to california environmental quality act. that concludes my presentation and i'm here to answer any questions you may have. thank you for your time. >> thank you. >> item 7 is resolution that approves a new lease between the port and anderson

enterprises on pier 68 and 70 and a shed. the lease has initial 3 year term with 3, 1 year options to extend. the lease is used to store vehicles for the car dealership. 80 detailed the total rent to the port on page 20of the report, $2.5 million and 5.3 if all options are exercised. these leases is based on the rent set by the port and recommend approval of item 7. >> thank you. i think overall for item 5 it was a very technical amendment and item. i do not have questions on that, and i also appreciate recology lease. even though we understand that

it's not a competitive bid, but we understand the longstanding relationship with recology and for item 7 the last item, just wanted to say, the error is only in the presentation, it is-- >> that is correct. >> just want to confirm that. which is just about the square footage total square footage. i see that in the legislation so thank you. i don't see any other name thon roster for questions. i appreciate all the presentation today and also of course a lot of work that went into it together, so i appreciate that and thank you and we'll go to public comments for all three items. >> we are opening public comment for any members of the public who wish to comment on resolutions as items 5, 6 and 7. approach the lectern. madam chair, we have no speakers. >> thank you. public comment is now closed. colleagues, i would like to

move these three items to full board with recommendation and roll call, please. >> actually, madam chair, ahead of the vote, there was a bla recommendation to on item 7, i think to amend that the resolution is retroactive to july 1, is that right? >> that was item 7 from last week. >> that's right, okay. on that motion to forward all three resolution to full board with positive recommendation, mandelman, aye. safai, aye. chan, aye. we have three ayes.

and item number 8--resolution approving and authorizing the execution of a second amendment to the loan agreement with sunnydale infrastructure phase 1a3 llc, a california limited liability company, to increase the loan amount by $1,495,294 for a new total loan amount not to exceed $26,567,405 to finance additional construction costs for the second phase of infrastructure improvements and housing development related to the revitalization and master development of up to 1770 units of replacement public housing, affordable housing and market rate housing, commonly known as the sunnydale hope sf development (“sunnydale project”); adopting findings that the loan agreement is consistent with the adopted mitigation monitoring and reporting program under the california environmental quality act, the city's general plan, and the priority policies of planning code, section 101.1; and to authorize the director of mayor's office of housing and community development to enter into any amendments or modifications to the agreement that do not materially increase the obligations or liabilities for the city and are necessary to effectuate the purposes of the agreement or this resolution. madam

chair. >> thank you. today we have-go ahead, sorry. >> good morning chair chan and members mandelman and safai. jason lieu, policy director for community development for hope sf initiative joined by brian and senior project manager at the mayor office housing community development. we are here to present item 8 for loan amendment to the current infrastructure phase at sunnydale affordable housing development. sunnydale as you know is a part of the hope sf f initiative real estate capital commitment by the city to achieve reparations for impacts of past and ongoing trauma, systemic and institutional racism and deep persistent poverty. in response to federal funding

for san francisco largest most neglected public housing sites [indiscernible] additional affordable market rate units. chronic disinventment in these communities resulting in aging infrastructure. to restore public benefit to hope sf communities new streeds and sidewalks were created alongside utility infrastructure to better serve residents while making sure residents are able to are locate on site. we are coming before you to amend the loan to reflect increase cost to complete the important work. >> thank you jason. good morning chair and members. ryan, senior project manager with mohcd. the purpose of the resolution before you today is to approve affordable housing for sunnydale phase 1a3 to complete construction later this year. item 8 authorize the loan increase of roughly $1.5 million for total loan of up to

$26 million 567 thousand 405 dollars. due to unexpected costs and delays from extreme weather and are early 2023. unforeseen conditions in the temporary power connection. the sunnydale hope sf master plan seek to redevelopment public housing sites to mixed income of 1770 units with new streets, infrastructure and open space. sunnydale infrastructure phase 1a3 is the second infrastructure phase at sunnydale hope sf and sponsored by related california and mercy housing california. the infrastructure area is roughly 4 acres and include the new block 1 community center, two affordable housing buildings totaling 170 units and public right of ways. as previously mentioned, the resolution before you today is for additional amount of roughly $1.5 million.

this brings the total development cost for infrastructure project to up to $26.6 million. this infrastructure phase is expected to finish later this muckt or december with community center opening next fall and two affordable buildings online early 2025. we are happy to answer questions. i have representatives from the sponsors here as well and look forward to your comments. thank you. >> thank you. >> item a is 8 approves a amendment to the city existing loan agreement with sunnydale infrastructure phase 1a3 llc. increasing the loan amount approved in 2022 from $25.1 million to $26.6 million. we detailed the reasons for the changes on pages 26 and 27 of our report. you can see that there is a couple different reasons for

the loan increaseism one is due to weather the construction didn't fully anticipate the extent of the rainy season. the construction also started later then was originally planned for which pushed the construction period into the rainy season, and caused those delays. there was a requirement to the developer to install temporary power to the construction site due to delays from pg&e and providing the permanent power to that site. and then there were a host of other unforeseen conditions or errors on the city's part that caused-required rework. this loan increase also includes about $200 thousand in relocation cost because the project is delayed by about the phase is delayed by about a year. i do think some of this was avoidable, some of it was probably not avoidable. i know that the department is now considering minimizing or

delaying construction during the winter rainy season. it is also revisiting the storm water management plan, because the flooding at that--the plan for this site was inadequate given the flooding that occurred. we also note a couple policy considerations. one is that, there's about $500 thousand of cost here for temporary power connection. puc will reimburse a portion of that. this loan increase assumes no reimbursement but there is still negotiation between about the final amount of the reimbursement. secondly, there is no cost sharing with the developer. we raised this for other--in the department has come-when the construction projects exceeded budget, the board approved loan increases either there was one in treasure

island a couple years ago interest the rain on the modular housing that needed to be redone and there were two earlier this year where the financing was undermined by pge delays and the city to provide additional gap financing, so approving this loan increase is consistent with those prior actions, but i want to note that there hasn't been conversation about sharing the cost with the developer as far as i know. we have a couple recommendations here. number one, the board to request report back from mohcd and puc about the final reimbursement amount that off-set the cost of this loan and then also for those two departments to enter into a agreement to avoid future uncertainty who bares power connection cost on affordable housing projects go forward. >> thank you.

supervisor safai. >> thank you. can you go back to the screen that shows the different phases and where you are? went through that quickly. i understand we had a lot of conversations about this. i guess the areas that are outlined in different colors, pink, orange and blue, those are areas being built right now? >> so, where the arrow is right now, in blue is phase 1 we are talking about today. just below that in red where it says block 6 is complete. that infrastructure phase is done, the building is up. to the left of the blue shaded area is that v shaped phase, that is phase 3 the future infrastructure phase that is currently in demolition and predevelopment right now. but that would be the future

infrastructure phase. >> what is total projected cost to finish out the entire amount and the timeline on that? >> for the entire sunnydale site? >> uh-huh. >> right now i can get you the numbers for our projections for the cost amounts, but in terms of time, we are probably looking at anywhere from 8 to 15 years for the entire site. but that in- >> remainder of the site--there'scurrent buildings on the site? >> correct. >> some areas you demolished and removed and there is others that are completely boarded up. >> yes. in the v shape phase 3 in orange, those are being demolished so there is no-we are in the process of demolish

the units. everything to the west of that that have the buildings that is what the future buildings look like. now there are public housing residents there in the public housing buildings. >> right. so, when will these different phases, when will those three be done? the one including the orange? >> the one in orange we are planning to start infrastructure proper i guess you could say by may, june next year and then depending on financing with the state and tax credit we can apply for funding for the affordable parcels you see as block 9 on the northern site and block 7 below that. right now we are projecting a 2026 construction start date for those two affordable buildsings and then the buildings to the west of that, the timeline depends on the financing schedules from the state from the city and from tax credits. we are estimated 8-15 years but

because of the different schedules and challenges in the past that is still up in the air. >> how many unit will be reconstructed by 2025? how many will you have reconstructed? >> doing quick math. 170 in blocks 3a and 3b, block 6 right there has--392 by 2025. >> feels like a long time to build 400 units because we are doing in phases all over the city. what do you think is the biggest impediment? what is taking so long? >> one of the biggest challenges is financing for sure. a lot of the hope sf projects by virtue of the unit size not as comppetitive for tax credit

which is a challenge in the past, so that is something we are working with for sunnydale hope sf and potrero hope sf. >> so you are constructing what, 3 units? >> a lot of units contain 3 and 4 bedrooms, which across the city for a lot of affordable housing project is more uncommon but this is because we are providing as part of the reparations initiative for hope sf we want to create the larger bedroom sizes so families in the public housing sites can remain there with the family sizes they have. i would say similar to this infrastructure project there have been delays with permitting and acquiring the street improvement permits. that has been a ongoing challenge with this entire sunnydale hope sf project and other hope sf projects but with each new phase we have lessens learned and we adjust contingency according to make

sure we properly plan ahead for the next one. >> acquiring permits is slow-acquiring city permits slowed down the process? >> it has historically, yes. >> you center someone from the city that is a main point person to interact with the different city agencies? >> at mohcd we have our construction team which for the these projects a infrastructure task force and they interact with other city agencies like dbi and puc. those teams do meet if not every week, every other week to try and facilitate coordination, but like i said, with the infrastructure projects there is always lessens learned and like this with the severe weather will incorporate with the future storm water plan to try to mitigate the cost and delays to

the project moving forward. >> the reason i ask if hundred percent affordable public housing rebuild can't get facilitation and support from other different city agencies and no project in the city can. i think that is a bad sign for the city when we are in so much need of this housing and this affordable housing that the city is a impediment rather then facilitating this moving in a faster manner. one thing the bla mentioned was two projects in my district that had to do with temporary power or permanent upgrade on power. project managers did not anticipate or factor that into the equation. they then had to come back and ask for additional cost. the transformer ended up being three blocks away which added significant cost to the project. is the electrical upgrades and

transformer upgrades even though this is done in phases being anticipated so you plan for the future so not having to go through this every time because what it feels like, even though is in phasing, it feels like 9 or 10 different projects on the same site because they go through the application process for funding, go through the infrastructure projects, going through entitlements all over again. is there a way to could be done to get entitlement and anticipating the work in advance rather then having to go through every time to help facilitate the work and speed it up? >> how the permit process works, we are trying to-part of the reason there is a delay related to uc and pg&e coordination was we were trying to permanently power basically the eastern side right there, but those delays caused this temporary connection which we needed which is extra money

here. for incapsulating the entire site, it is challenging because on the western side you have public housing sites there so difficult to do construction work while people are still living there. i cant speak to how puc would want to-dont know, kind of create a plan bigger then building by building moving forward, but we are definitely open to exploring that. >> i'll end with this, i know this is about financing and very supportive of this project and very excited started the work on hope sf when mayor newsom was first running for mayor, so been very much involved in this for i guess two decades, so to hear it is another 8 to 10 years and that will ultimately end up being probably about 30 years it will take from conception to

financing to redevelopment to building. but i think ultimately--the net gross of units is significant, even in--this is largest public housing site thin city and county of san francisco and i know a number of the units because they were built as temporary were worker housing, even some to this day don't have showers in them. they just have tubs, so imagine being in that kind of environment. i really appreciate the hard work you all are doing. was just to ask questions to determine if there is something more the city can do to facilitate. to hear havings issues acquiring permits for public housing rebled is frustrating to hear because we should be doing better to support this project and facilitating this in the best way we can. thank you madam chair. add my name as a cosponsor and if there is anything we can do,

happy to help facilitate. >> thank you. vice chair mandelman. >> thank you. >> thank you. i appreciate the efforts of course and i think there is-what the budget legislative analyst mentioned. p some are avoidable and some clearly are not, such as weather. what i want to understand, do we have sfpuc here today? no, i don't think we have anyone from sfpuc. is there a commitment from mayor office of housing to really have a conversation--as we see that you are not done with the project, you are not having started it yet, so are there any-and we know that from historic developments that we have, be it parks, be

recreation centers in this case affordable housing developments that time and time again have issues with pg&e and so is there a conversation and like the budget and legislative analyst is recommending between mohcd and sfpuc to figure out a share cost model at least for this project? >> we are very much open to that. our construction team and puc are in conversation frequently so open to exploring that. >> i would appreciate the commitment and will it be possible to have the commitment to say according to the bla report as well that you will be able to come back. i think the recommended time period here is within 30 days. will you be able to report back within 30 days before the year end to kind of let us know exactly what you have agreed to moving forward when it comes to share of cost around pg&e?

>> so, correct if i'm wrong, i believe the two bla point the 30 day timeline is get the number of reimbursement from puc and very committed to and very close. with the cost sharing agreement, we are open to exploring that. we have to talk to puc but can follow up as needed. >> i think i guess let me be more specific. i don't expect that to have agreement done in 30 days, but to say yes, now we are actively engaging in the conversation to have potentially an agreement share cost agreement and we will report back within this time period we do have it or will not proceeding to have a cost share. i hope that makes sense. >> yes, we can commit to that. thank you. >> great. with that colleagues, i'm going to open this item to public comment. >> yes, members of the public who wish to speak on item 8,

please approach the lectern and i'll start your time. >> it is big project that has been going on for a long time according to what you say. i think you should fix what is there. don't destroy, fix. you have the money to fix and in the mean time you still know if you need to build something because you tried you best to fix what is there. don't destroy. that's enough. >> thank you much for addressing this committee. madam chair, no further speakers. >> great. public comment is now closed. i like to move this item to full board with recommendation and now that we actually have the commitment to hear back and report back for the 30 days reimbursement as well as whether let us know that whether there or will not be a

cost of sharing agreement between mohcd and sfpuc. thank you. roll call recollect , please. >> on the motion to forward resolution to full board with positive recommendation, mandelman, aye. safai, aye. chan, aye. we have three ayes. >> the motion passes. mr. clerk, please call item number 9 and 10. >> item numbers 9 and 10 are resolutions authorizing the issuance and sale of one or more series of bonds and approving related documents including official statements bond purchase agreements and continuing to disclosures certificates and determining other matters in connection as defined in the respective resolutions. item 9 supplement board resolution 7-17 to authorize the issuance and sale of one or more bonds city and county infrastructure and revitalization finance district

1, treasure island not to exceed $10 million. approving the related documents and one or more supplements to indentures of trust. item 10 authorize the issuance and sale of one or more series of special tax bonds for city county community facility district number 2016-1, treasure island and respect to improvement area 2, in principle amounts not to exceed 17 million approving the related documents and first supplement. madam chair. >> thank you and today we have treasure island development authority as well as controller's office of public finance here and the floor is yours. thank you. >> thank you chair chan and supervisors. good morning:jamie, the finance manager at the treasure island development authority and i will be presenting the first set of slides and then turning

it over to my colleague. before the committee today for your consideration and approval are two resolutions first for special tax bonds or community facility district on treasure island. resolution to authorize the issuance of special tax bond in the amount not to exceed $17 million. the second set of bonds or tax increment revenue bonds related to infrastructure revitalization financing district or irsd will authorize issuance of tax increment revenue not to exceed $10 million. not before the committee today but will be returning at future date is ordinance appropriating a portion of the bond of $1.54 million that will currently it is on a 30 day

hold and will return to committee for future approval. slide 3 is a snapshot. the financing district in past issuance schedules. over the term of 2020-2022 the treasure island development authority with the assistance of the controller's office of public finance issued 3 series of cfd bonds totaling approximately $84 million and the first series of irsd bond the fall of 2022, approximately $29 million for total amount of $113 million. for your consideration today is the 4th issuance of the bond in support of the project and the second series of isrd bonds for treasure island. the expectation is for these bonds to price and close before the end of calendar year, so before the end of december and

these two bonds issuances allow the project to continue its momentum and provide the funding needed to support the ongoing infrastructure work and support of housing development. slide 4 is a quick update on the progress of infrastructure development on treasure island. we are very proud and happy to share we reached notice of completion for critical utility and street infrastructure on treasure island stage 1 as well as yerba buena island consisting of roadway, soil stabilization, water storage, electrical switch yard and pump station facilities as well as certain assets that remain under tida jurisdiction. we are also very proud to say that we have completed and the city accepted the first public park located on yerba buena island called the rock dog park. it has been accepted by the

city and now open to the public. ferry service began early 2022 as well as completion of bay bridge freeway on-ramps in 2016 as well as 2023. we are also looking forward to upcoming improvements as well as notice of completion on certain public parks. the waterfront plaza and certain storm water pump station facilities. on the housing front, there is a lot to be excited and proud about as it relates to production and market rate housing on treasure island and yerba buena island. june 2022 we welcomed the first resident in the bristol condominium on yerba buena island. in may 2023 we celebrated opening of may apartments codeveloped by swords to plow share and chinatown cdc.

hundred percent aforpdable housing project that supported formally homeless and low income veterans and families. under current construction today is 138 units, hundred percent affordable housing building called star view court being developed by mercy housing and scheduled for completion in late 2024. there are also actively 600 other units under construction which are all scheduled for completion by early 2025, so that brings our approximate total nearly a thousand units complete by early 2025 and that is on its way for the full development target of 8 thousand units. again, these bonds help continue the financing plan and keep the engine going on this development. the next two slides are not directly related to the bonds

but we wanted provide a update of conversations we are having between treasure island developer with assistance of office economic workforce development. to continue the great work happening on treasure island, the office of economic workforce development has been taking the lead reviewing ways to support the project and continue the momentum on future phases. the goals of this effort are to first look at agreements originally adopted in 2011 and modernize them and make more commensurate with other development agreement projects today. that will reflect certain changes in city policies, economic conditions and island needs compared to what was originally in the 2011 agreement. the over-arching goal is to continue to deliver the community benefits and affordable housing committed in the 2011 agreements but make more in alignment with the

realty of the development today. also, a very important goal is and underscore through the process is improvement of city process and reviewing permitting and infrastructure to be good partners with the development team and insure that the project can continue as a expeditiously as possible. in order to support these goals, there is a consideration of accelerating city fiscal resources and that was advance the production of infrastructure for phase 2 and future phases. it could also assume potential asumption of city taking on certain targeted infrastructure that was assigned to the developer under the original dda. and then there is a last bit of goal to really look at tida's

relationship with the project and look ways to restructure tida's budget to help support the project but also help support the treasure island neighborhood to treat it as a neighborhood of san francisco and not just a development site. slide 7 discusses the how we intend to meet these goals and there are a few project amendments under consideration. to improve the project delivery the first bucket or subset of amendments speak to the alignment and sequence of certain development deadlines and so the goal is to really look at the schedule of performance and align the developer's obligation to build certain public benefits to be more reflective of what the

future of realty looks like today. that will involve again, amending the actual deadlines for the schedule of performance as well as building in additional subsidies and flexibilities, sorry flexibilities into the subsidies that would allow us to meet our transportation and school goals, again to be more reflective of the outline or the timeline of the development. as i mentioned on the earlier slide, there is a consideration for certain fiscal measures and that could increase the city's investment through certain debt instruments or expanded tax increment allocations that allow us to quickly repay the developer for eligible infrastructure expenditures as well as support the ongoing project momentum for the production of infrastructure in housing in future phases.

we also intend to work to look at tida budget and reorient city services and responsibility treasure island and ybi operate and insure the neighborhood is serviced on par with other city neighborhoods. and lastly, as alluded in the prior item, the city serves as a critical partner in development so we are looking at amending certain city agreements such as the interagency cooperation agreement to conform with best practice and establish escalation decision protocols to streamline work and decision making. slide 8 is just a snapshot of the ifd and csd district to collect tax increment and special tax bonds. slide 9 focus on the cfd.

reminder for this committee, the cfd bonds are secured by a pledge of special taxes under improvement area 2 which consist of the 5 parcels [indiscernible] c2.3, c2.4 and b1. the aggregate annual debt service is covered ratio of 110 percent on parcels considered developed or received a building permit which allows us to tax them the cfd taxes. that debt service and taxes escalate by 2 percent a year, and specific to just this cfd series, with recommendation from our financing team that works in close coordination with controller office of public finance recommended additional special tax reserve fund which is tied to a release date that is released once a

specific project, which is building 1 parcel building 1 commences construction and that is just an additional risk mitigation factor given that project has received a building permit, but not under active construction. the use of proceeds for the cfd bond will be used to reimburse the developer for project cost specifically for permit and asset cost and predevelopment cost supporting public infrastructure. slide 10 is snapshot of 5 parcels that will secure the cfd bonds. the bonds are secured only by there four developed parcels and there is a supplemental reserve tied to the block b1. the very far column to the right shows the value to lien is 5.5 and that meets the city's policy to meet or exceed

a 3 to 1 value to lien ratio. the bonds are sized to current year assessed value and tax increment available within the project areas. as reminder to the committee, the city pledged a portion of incremental ad valorem property taxes. a portion of that net available increment is obligated to reimburse the developer for certain facilities and building infrastructure and a second portion is dedicated to the financing of affordable housing. the remaining balance of the 8 percent serves as additional coverage ratio--additional for coverage and if that is not needed a return to the general fund. the irfd bonds, facility side are expected to reimbursement the developer for qualified

project cost specifically geotechnical work entered to date and the housing bonds are planned to be a source of pre-development loan for 150 unit affordable housing project on treasure island that is to be constructed by john stuart company and catholic charities. that project is anticipated to commence in november 2026 and completed in june 2028. i will now turn the slides over to my colleague bridget. >> hello supervisors. bridget deputy director for the office of public finance. the next two slides summarize the estimated financing terms for the proposed cfd and irsd bonds. to start for the cfd based on tax exempt market conditions as of october 23, we estimate that the cfd bonds will have a final

maturity in 2052 with estimated true interest cost of approximately 6.6 percent project amount of $11.8 million, financing costs of $766 thousand and estimated total debt service over the life of the financing of $32.6 million. for the irsd, the bonds are structured with annual level debt service of 125 percent of pledge tax increment. as of october 23, we estimate 30 year financing with combined true interest cast of 6.4 percent, total project fund of $7.1 million, financing cost estimated at $678 thousand and total debt service over the life of the bond estimated at

$19.6 million. both the cfd and irfd bonds will be sold without a rating. the official statements or primary disclosure documents for each transaction details the risk associated with each of the financing. giving the early stage we want to highlight a few of those risks which include, adverse changes in the local real estate market, reduction in tax base and property values, concentration of property ownership, and the potential impacts that would result from the failure to develop properties. as a reminder, the cfd and irfd bonds are not obligations of the city general fund, they are secured by special tax revenues from improvement area 2 and the pledge to tax increment.

additionally, for the cfd the city has covenanted to pursue judicial for closure in the event certain delinquency thresholds are met. and this slide just reminder thrks board of supervisorss is the governing body for both there cfd and irfd and have a responsibility under federal security law to insure that staff is aware of any material information that may impact the financing that is not already disclosed in the pos. that concludes our presentation. thank you for your time. tida and opf would be happy to answer any questions. >> thank you. i really appreciate it. a lot of technical work and i always really appreciate just walking us through with that bla report for item number 9

specifically. >> yes, this is item 9, resolution approving up to $10 million in bonds secured by property tax generated within the treasure island infrastructure revitalization approved by the board of supervisors. detailed the usef the bonds on page 35 of the report. expected to generate approximately $35 of the report. expected to generate approximately $8.3 million, 6.9 is provided to treasure island developer to repay it for geotechnical work that is undertaken and are then $1.4 million will be used for affordable housing project. the appropriation of which will be subject to board approval and if the loan-if there is gap financing or other city loans that exceed 10 million it will

likely require board approval as well. based on data provided by the office of public finance, we show in our report the total cost of the transaction is about $19.6 million over the 30 year life of the bonds. we recommend approval. >> thank you. just on the record, i just want to clarify as well for item 9, it was introduced two weeks ago and more then two weeks ago and we are able to have the budget and legislative analyst report for item 10 though, it was introduced on november 7, so just within a week's time i appreciate the clerk's office to support us to be able to create the file and help this to be agendized, but i want to be on the record that typically any items that actually bare the fiscal impact to the city that will have a standard of two weeks of just posting and

announcing the items before it actually agendized in the committee for both transparency and allowing the public to be notified that this item has been announced or introduced and they could evaluate as well and most importantly, if need be join public comments and express their feedback and concerns. but with that said, the item 9 is closely tied to item 10 that the authorize issuance of the special bond is really a technical item to-to allow us to continue with the work that is being done and articulated and listed in item 9 in which now have received a recommendation for approval by the budget and legislative analyst and with that, i'm comfortable moving both items to full board today and take a look at the deputy city

attorney to make sure we are on the same page and no concern, but i just urge everyone not just for you but everyone in city government and city department be aware, i think it is best that we abide by the rule of two weeks of noticing for this committee. again, with truly this is significant fiscal impact. with that said, i don't see any name on the roster for question, so i like to go to public comments for these two items. >> thank you madam chair. we invite members who joined today quhoo who wish to speak on 9 and 10 to approach the lectern. >> before lunch. this presentation was incredibly boring, but i'm sorry--treasure island--your goal because you said goals goals goals. that is great. your goal is to make something beautiful. that's it. beauty. so, then you can rename

treasure island, beauty island. it is perfect. then you can say beauty, so [indiscernible] so, you have to be--don't build buildings which is rabbit cages sore something. be aware of the technology you put there because that isn't the future. beauty, bye. >> madam chair, no further speakers. >> thank you. public comment is now closed. i just recognize the fact that it is incredibly boring work but incredibly technical work that is so critical and it is the reason why this whole room of people just a few of us that i am just so grateful for everyone's work here and with that said, we do not have-i will make the motion to move these two item with positive recommendation and roll call,

please. >> on that motion to forward both resolutions items 9 and 10 to full board with positive recommendation, mandelman, aye. safai, aye. chan, aye. we have 3 ayes. >> thank you and motion passes. just wanted to say we do not have a budget and finance committee meeting next wednesday for our thanksgiving break. it is my way of expressing thanks for this boring accept critical technical work everybody do here in this every day. i'm so grateful. i wish everyone here a very happy thanksgiving. enjoy your time. hopefully you have well deserved time off. do we have any other business before us? >> that concludes our business. >> thank you, and the meeting is adjourned.

[meeting adjourned]

[music] san francisco developing programs specific low to increase the amount of affordable housing throughout the city. >> the affordable housing bonus program provides developers to include more housing for i have low, low, moderate and middle income households. this program does not rely on public subsidies but private developers who include it part of their project. under california density bonus law. housing prejudices that include affordable on site may be request a density bonus. it is an increase in the number of housing units allowed under zoning laws and based on affordable units being provided.

>> however, the state law does not address all of san francisco needs does not incentivize middle income housing. associating the city is proposing an affordable housing bonus program for higher levels of development including middle income u firsts providing a stream lined application review and approval process. >> how does the program work in it applies to mixed use corridors in san francisco. and offers incentives to developers who provide 30% of affordable in projects. to reach 30%, 12% of the units must be affordable to low income household and 18% per minute nap to middle income households. >> in exchange developers will will build more and up to additional 2 stories beyond current zoning regulations. >> 1 huh human % affordable will

be offered up to 3 additional stories beyond current regulations. each building will be required conform to guidelines ensuring meets with the character of the area and commercial corridors. this program is an opportunity to double the amount of affordable housing and directly address the goals established by twenty 14 hosing element and prospect k paddled by voters last year. pacificly, prop circumstance established a goal that 33% of all new housing permanent to low and moderate incomes this program will be the first to prosecute void permanent affordable projects that include middle income households. to learn more about the program visit

>> we can sweep by in front of a house in a matter of seconds. the only people who don't like it are the people who get the tickets. >> this is a street sweeping sign. don't let it get you. pay attention. [♪♪♪] >> in the morning, when we first go out, we start at six in the morning or seven in the morning. we call that our business run. we sweep all the main arteries of the city. after 8:00, we go into the residential areas and take care

of all the other customers. >> the idea with the street sweeping program is to get the leaves and the debris off the ground. >> we -- for not only appearance and cleanliness but safety as well. >> we will get anywhere from 2- 7,000 pounds per truck depending on the season and the route. the street sweeper and the choice of the use right now is an error sweeper. they have a motor in the back and it blows winds down one side and carried by air into the hopper. what will mess this up is new -- large pieces of cardboard or sticks or coat hangers. anything that is more than 12 inches. the tube on the tracks is only 12-inch diameter. >> people asked what they can do to help to keep the city clean.

there are people that letter. leaves are one thing. any of the garbage you see is from people being careless. [♪♪♪] >> one cars parked in the way, we can't sweep under the congress. to deal with this, we have parking control officers that are provided by m.t.a. and they go in front of our sweepers and pass out citations to people that are parking the wrong way. once the sweepers sweep past in san francisco, you may park behind the street sweeper. we all know parking is a big issue. north beach hasn't been swept since the eighties because of opposition. but we are getting a lot of requests to sweep. basically our trucks are 10 feet wide. we stick the brooms out and they are may be 12 feet wide. >> there are a lot of blind

spots when driving a large truck pedestrians and bicyclists and cars. and navigates this 22,000-pound truck through the city. >> we involve the public here -- to adhere to traffic laws. these routes were developed back in the eighties around the capability of the sweeper. things have changed since then so we have to adapt. luckily, public works is embracing technology and working on a system to alter our maps. this is literally cut and paste -- cut and paste. we will have a computer program soon that will be able to alter the maps and be updated instantly. we will have tablets in the checks for all of the maps. we will send a broom wherever it needs to go and he has the information he needs to complete the safety. what is needed about these tablets as they will have a g.p.s. on it so we know where they're at. you do get confused driving along, especially the inner

sunset. recall that to the be made a triangle. >> thanks for writing along with us today. i enjoyed showing you what we do and i urge you to pay attention to the signs and move your car and don't litter. with all >> it is one of the first steps families and step to secure their future and provide a sense of stability for them and their loved ones. your home, it is something that could be passed down to your children and grandchildren. a asset that offers a pathway to build wealth from one generation to the next. and you need to complete estate plan to protect the asisets. your home, small business, air looms and more. you and so many communities,

black, indigenous, latino and asian worked so hard to make yours but estate plans could be costly and conversations complex proud to partner to bring free and low cost estate plans to san franciscans. by providing estate plans we are able to keep the assets whole for our families, prevent displacement, address disparities and home ownership and strengthen the cultural integrity of the city. working with local non profit organizations and neighborhood groups bringing the serveess to you and community, to workshops focused on estate planning and why it's important. >> i'm 86 years old and you do need a trustee. you need a will and put who ever you want in charge of it. >> that's why i wanted to be here today. that is why one of the first steps i took when become assessor recorder is make sure we have a

partnership to get foundational funding to provide these resources to community. but even more important is our connection to you and your homes and making sure we know how to help you and how to protect them. >> if you don't have a living trust you have to go through probate and that cost money and depending on the cost of the home is associated the cost you have to pay. that could be $40 thousand for a home at that level. i don't know about you, but i don't $40 thousand to give up. >> (indiscernible) important workshop to the community so we can stop the loss of generational wealth and equity and maintain a (indiscernible) >> why are estate plans important? we were just talking before we started the program, 70 percent of black americans do not scr a will in place. >> as mentioning being in community we had a conversation with a woman who paid

$2700, $2700 just for revocable trust. what we are talking about today are free or low cost estate plans that are value between 3,000 to $3500. free or low cost meaning free, or $400 if you make above $104 thousand a year, and capped larger then that amount. because we want to focus on black and brown households, because that's whether the need is, not only in san francisco, not only the bay area but the region as well. and, >> i was excitesed to see the turn out from the western addition and bayview and want to make sure we cover all the different steps from buying a home to making sure homes stay within the family. >> work with staff attorneys to receive these free and low cost complete estate plans that include a living trust, will, financial power of attorney, and health directive. >> that's why it is so important to make these resources and this

information accessible. so we can make sure we are serving you and your families and your generations and your dreams. >> we insure the financial stability of san francisco, not just for government, but for our communities. >> on behalf of the office of assessor recorder, i'm thankful for all the support and legal assistance they have given that makes the estate planning program a realty for you in san francisco and are thank all the community partners like san francisco housing development corporation, booker t washington center and neighborhood leaders and organizations that help families and individuals realize their dreams of building wealth in san francisco from one generation to the next. to learn more about this program e-mail inquiries at har welco

creative and dell library future the union square the opening of millard lux. >> yeah. >> (clapping.) my aim my name is phil ginsburg and have over 200 parts parks in san francisco and this would think is beautiful amazing union square might be you are most historic our most celebrated in the world it is perfect that we have one of the most revokable celebrated and most historic in

the world. >> (clapping) 27 years on food tv and a kitchen. >> great. worse cook in america and as the great fire trucks and more importantly all you've done for san francisco i know the mayor will talk about public safety to enjoy union square look at this amazing public plaza we got our tree and ice skating rink and not the first but second celebration here today so thing bes are happening in the square and san francisco is back baby san francisco is back (clapping.) so it is my great honor to introduce anyone who works tailoring to create a strong and

vibrant san francisco she as a big park advocate the reason we're here and she is making public safety in downtown of a foodie and loves to party ladies and gentlemen, the mayor of san francisco london breed. >> thank you phil. >> (clapping) this is like dui just have you this might advice just to enjoy the sun and grab a ticket and other feed and millard lux hang out at union square but let me start off by thanking jeff for building in san francisco this man has been on the food network tv and all over the world and the has should amazing restaurant millard lux which is located at pay center hard to

get into millard lux after a warrior game one of the most sought after chef in the united states and we have him right here in san francisco and now we have him for people all ever the world been to san francisco in union square (clapping.) and when you talk about the san francisco san francisco is a foodie town whether it the james beard award arrest the michelin star people can find cuisine if any country in san francisco that is what san francisco makes to special with the people. today were are joined yes by phil beginning berries and rec and park staff let me tell you union square right here looks amazing from our park patrol and

other folks that supporting this area and downtown ambassadors and our union square (clapping.) alliance partner mri religious rodriguez all the hotels let me tell you to has seen 27 new businesses open right here in union square. and there is more to come. (clapping.) i think the only toy store in the city is down here next to mason will be a long line for the holiday season and thank some of the other partners here today including the scene of toys jeanine nicole son and thank you, to the director of

the public health department dr. colfax and hearing in sarah and philip in just a moment let me give you a perspective san francisco like other major cities has had challenges and we register a couple of years ago had all eyes on san francisco and people were wondering what is happening we rolled up our sleeves and the proposed solutions earlier day with the police department and the chief of police talking about safety strategy and is a district attorney talking about the prosecution we have eyes and ears on the street and ducks in a row make sure safety of people in downtown union square in san francisco (clapping.) but we want 0 people to have a

wonderful time we want phoenix to see celebrate the holiday spirit to enjoy the ice skating rink to come and witness the tree literally on thursday to explore the winter walk and harangue out at the various location and you know what people get hunger what when they're shopping who without the possibility of parole want to come and sit outside in this beautiful location and enjoy the cu songs or joy and glass of champaign while 240e let their kids run on union and hang out in the holiday season and will be so many to enjoy during the holiday season in union square in san francisco i can't thank

jeff enough. not only committing to san francisco but working hard to make sure that those locations are open for people to enjoy during the holiday season the last thing before i i'll turn it over to a couple of folks so many of you are here yooift victorville or what kind of thank you for supporting and believing in san francisco we know that has been tough-minded we have been to kwaeshthsdz and pandemic everything you can think of and still san francisco continues to on the other hand, messenger stronger than before because we don't give up we continue to rise and put our best patio forward because people love and building in the staying city that's what today is both the economic development we came together and knew the downtown needed improvement we

invested $7 million provides support for activation but also to provide for policies so that places like millard lux permission can open to the public sooner rather than later we also helped to support how community ambassadors and we're going to continue to do everything we can whether paving policies and making investments and providing a great environment for the people who live and work and visit here whatever it takes to get our city back to where it needs took because of people here today and one of those persons o - [off mic.] >> i'm on a roll bill i'm on a roll. one of those persons i said this guy i can't say enough he is a television star but no tactic of any of his locations is too big or small he made it a point to hire from the community

to provide people on intent to work with local people from all the city and appreciate his work and advocacy and love for the city and county of san francisco ladies and gentlemen, please welcome chef. >> thank you very much. (clapping.) san francisco how you guys doing? >> can i told you we're to incredibly thiefrld and a honor to be with everyone and san francisco i promise i are not finding a harder parch inside millard lux and shout out to andy in operations (clapping.) and our entire team of millard lux we got the keys to this place on the 11 of last month wow. and is we building in san francisco and here we are neighbors we're concerned citizens like everyone and 0 collectively as a community we

are going to plug in energy into the walk that's exactly what we're to go; right? and ownership of us are part of the solution and this is our mail contribution to the city so millard lux opened yesterday and had hundreds of people walk there and telling us it of the we're healing that's was that of the like people walked there the park and said we i don't know how long those places are open but we've as i said a 9 year lease and want to have the experiences in the park so over here open on power side carla world-class give

world-class give a caretakers of this place, as well as for all peoples who reside in their traditional territory. with incredible work and over here also really, really excited on to have post script coffee a brand new coffee out of jackson square roosevelt coffee and dropping off and san francisco pastry and open 7:30 and the last couple of days feels like humanity in the park though know exactly la to do i think our products so to speak and people slide in like they've been doing it for years the odd side of park we didn't too man we're taking both sides of park to the rooftop history with two cafes so martinez or optimistic chicken and farmers' market and

all day brochure and warren out and champagnes and on tap all kinds of great things we like this to be a picnic in the park so san francisco is celebrate at a x quest world-class experience to recognize and the world will pay attention and i promise to not only to the mayor by gavin newsom the governor of california said how fast can you get guessing open i said 45 days thankfully here we go here we go so (clapping.) not just me my lovely family and florence we give my wife a roirmdz yeah and behind every good chef is a good woman knows what is going on so my in-laws

and feels like a big family this is what it is all about and thank you to the rec and park and neil a roourmd and getting us across the goal line and we can't we're to excite to be here and from the bottom of my heart san francisco you'll not find harder working partners so welcome we're happy to be here and the 2023 holiday season let's go (clapping.) and thank you, mayor breed and (laughter). >> so i wanted to stay here and certainly during your speech had your chef a couple for acknowledgements we're joined by members of your fabulous workplace rec and park todd anderson and our newest

commissioner a big roourmd and (clapping.) all right. i any like to introduce my partners in the gear oh, i want to introduce and acknowledge the commenting rodney von (clapping.) and sarah phillips the new head of economic development she came in and said let's go to work we talk about pretty much all the time and travel care for the talk show (clapping.) may sarah is doing an amazing job and together takings 0 challenges and difficult pieces and revitalizing making this fun ladies and gentlemen, sarah phillips. >> thank you philip as you can tell by the san francisco rec

and park is our partnership in every step in their journey since the mayor announced the road map in february we made may i strides including in winter walk will come back for very soon and that concludes my report. the downtown welcome ambassadors here today making sure that everyone is safe and having a good time and sporting public realm improvements on a new combinations combielgsz a better place to move up and down and providing day to day support and technical assistance to the small businesses we're seeing about 800 businesses start every month each month over the last three months seeing investment in san francisco including 27

new businesses and last improvement we're excited about millard lux they're totally down the line of the mayor's road map not only a public place for people wanting to be and come several times a day and supporting a local business and entrepreneurs chef thrilling florence and businesses in san francisco o san francisco and have local employees that are san franciscans it hired in the resource program we're excited about and more importantly and this story has been told we're telling san francisco stories he is committed to the city the world will see what we know about san francisco and what the city is. um, i want to thank everyone for coming her and madam mayor for having the vision to move this project forward when she hired me i told

her her my staff and getting it occupying and b will be it it be nimble and thank you. the entire team for they're peed and making san francisco a huge part and finally a thanks to where you are partners at the my own square alliance um, have been with us every step of the way and with that, i'll introduce the next guest and i think i'm shedding a tear (laughter) we're finally here and man what a journey. you know, that was not quite like this two years ago come to the park and feel like has happening to our city but the future is so to bright. just want to thank tyler for beth own union square betting on

union square and our city and bringing (clapping.) us back too important indian trail we have so much potential in the park and i know i phil feels this way it is maybe well the cafes and trees and the activation all the things we expect when we come into to the public spaces in the heart of san francisco we celebrate lives greatest moments where we live and our i'm telling you it is allergies but so meaningful we met over a year and a half ago i want or remember to millard lux and sat there for dinner in celebrity chef roles up and the someone says this the woman for

union square he said wait i want to talk it to you and really and i'm thinking maybe over here and maybe he liked the park that's a whole different thing (laughter) he stick with that and that means so much he's going to stick with us and continues to ask when do we need and the except what do we need 23 mean the world to us i look at the crowd a big crowd i see mason i see our art galleries and our board members and the foundation of union square alliance and tiffany's and mason and van cleave i saw yes, we're all here so many faces and people - chambers is here and the travel is here the hotels i saw alex

and other board member and the ambassadors we're all here and phil thank you for being here everyone is here this means so most the heart of the city we come to celebrate the cable car we're not going to let it go away i see liz polio if anything we're going to take the opportunity you know what we have a clean slat what do we want to bring to the square to off to our san franciscans and bay area and visits from all over the world it is the holiday season i can imagine a better time to be here we're open for business. >> thank you pair thank you, mayor.. for having this vision and helping us get over the finish line to skillfully millard lux and over out here

all san franciscans bay residents depend on that. thank you very much. and we're about to cut a retain thank you, captain kim thank you, for being here and be safe i want to echo a couch thanks that the mayor and tyler gave to the rec and park the gardeners and maintenance people on the ground that keep our park system the finest thank you for all you do and neil and dave for your hard work and last but not least to our may i public affairs staff a lot of those events around the city never don't want things like to be in the shadows so i want to thank them pubically a their anyist team member shawn

white. >> all right. we're about to cut a retain. (clapping.) and their sharp please be careful you're our mayor [off mic.] >> - >> (multiple voices). >> you want rec and park (laughter). >> we're going a count down and here we go. >> everyone ready everyone is here. >> all right. come in where is mri religious 54, 3, 2 , 1. >> wow.

>> (clapping)

>> we have a wonderful adult ceramic class. we offer over 10 adult classes in morning and evening. it accommodates people who work in the day, people who work in the evening, people who are day people and night people. we

try to cater to the whole group. it's beyond just a clay lesson. it's really a lifeless on. when you meet people you never know what's underneath. sometimes they show you what they want to. and you kind of expect that it's just going to be that. but it's never really what's on the surface. it's really what's underneath the surface . that's what i try to get at when i do my clay. the camaraderie that we have here. we have students that have been for for many many years. we have students here for the first time. we share our skills, our formulas. this is how we learn. how did you do that? let me show you. that's the attitude that the students and the teachers have here. it's a really wonderful

nurturing place. >> hi. i'm prihere at the gorgeous san francisco precylinderiel tunnel p. i'm here with ceo and president of chamber of commerce rodney fong. tell us about the chamber and when make its and in san francisco. i great diversity of san

francisco businesses from cars to mall businesses and hospitality and instructs. so the chamber of commerce hen here for 173 years and represents them as 1 ecosystem. tell us about the tunnel top this is is i beautiful new space create in the the left year >> it is beautiful and this was an army base convert today a park. but i chose this location for you because to mow it is a coninfluence of nature readaptation and men a ship will in to port with goods and trades. and important it remember this san finish sitos the edge of the west coast a great per city and important piece to the economic vitality of the pacific rim. we have an initiative here, too, to green our city as much as possible. it is an exciting time. come out and check out san francisco and the presidio tunnel top when you are in our per of the world. rodney thank you for being here

and thank you for showing us. >> thank you. >> welcome. i'm carlo the director of mission for st. anthony foundation i want to thank everyone.for joining us in this special celebration. blessing and dedication of this facility which moving forward known as the caplisten family oasis shelter. [applause] >> i want to extend a warm welcome to our mayor, thank you for being here. supervisor preston who i saw, thank you. and executive director of homelessness and supportive housing. thank you for being here today.