test test test test test test test test >> good afternoon. chair chan. lisa, director of partnership from the recreation and park department, and here today as you just heard to

ask you to authorize the department to enter into an agreement with the embark dareo embarcadero plaza regarding potential improvement and renovations at embarcadero plaza and spearman park and authorize to accept cash and inkind grants from bxpe of approximately $2.5 million for design and rpd project management. and potential additional grants of approximately $10 million that could include cash grants from the downtown cbd or construction services from bxp. so, embarcadero plaza was originally envisioned to punk wait the end of market street and serve as a buffer from the overwhelming mass and noise of the embarcadero

freepway. since the freeway was demonished the design blocks the stunning views of the ferry building and bay beyond and the park is suffering from aging infrastructure and dematically decreased usage. once this was a feature of a busy downtown, usage dropped precipitously in the wake of the covid pandemic. analysis of annualized numbers show decrease in park visitors of about 50 percent from 2019 to 2024. and elements of the park are in disrepair. the brick paving is considered at the end of the useful life and replacement would cost millions to repair according to rpd estimates. the fountain is not operating and the department estimates it could be 3 to $10 million to update and fully restore this feature. next slide.

so, just for your reference, this is the existing layout. and then this is is the vision that dxp brought the department. this plan meets the general goals of the city to build a park that offer s space for active and passive recreation and is designed to accommodate activities that draw people into the park and into san francisco downtown to reinvigorate this neighborhood and have space for fitness and wellness, spaces for cultural events, leave the existing playground in place. while this plan meets the general goals of the city, the partners are committed to robust public outreach process to insure desire addresses the dreams and needs of the myriad of park stakeholders. so, a little about the agreement. highlights are that bxp agrees to spend approximately $2.5 million on the park

design. and then the city will work to secure at least $15 million in public funding, and then bxp and the san francisco downtown partnership will work to secure approximately $10 million in private funding. there is a 4 way partnership that guides the project and rpd maintains charter authority over land use decisions. separately commit to spend $2.5 million to renovate a vacant retail space in embarcadero 4 that becomes a bathroom to support the park and the agreement also creates an aggressive preliminary schedule to drive and motivate the partners to move quickly. this is the preliminary budget for the project and reflects initial commitments of the parties and sources section. the-let's see.

the construction cost are very preliminary because part of the agreement is all the parties commit to developing a cost estimated construction cost when we completed the design. and then in terms of the timeline, the partners are agreeing to aggressive timeline that requires each party to work diligently on their piece. have to insure the design team meets targets and rpd needs to move quickly on the outreach and approval processes. we recognize there is uncertainty regarding environmental review design and fund raising but believe the commitment to move quickly and together will benefit the project. more specifically on the timeline, community outreach planning and implementation begins upon approval of the agreement and authorization for acceptance of the funds. then partners will strive to

complete environmental review and brung a concept plan to commission within 7 months of board approval pending detail on required reviews. upon commission approval of a concept plan, we hope about 7 months after board approval the parties have a month to finalize and agree upon a project budget and schedule and agree upon public and private financial contributions. upon final budget and schedule agreements, partner s have four months to complete the schematic design drawings and cost estimates. partners will have 2 years to secure public and private commitments or terminate iffunding is not secured chblt this is 3 years from board approval. as i mentioned, this is a fairly aggressive schedule, utwe are driven to move quickly and take advantage of the momentum to imagine a downtown that better serves san franciscans

and visitors. thank you so much. happy to take any questions. >> thank you. i have a quick question. because it is design process, how would it initially what is the initial feedback about playground as well as the fountain and then the last is really what are you go toog do in terms of outreach for conceptual design? >> so, the playground will remain as is. that was renovated-one of the first things i did at rec and park and cant remember exactly the year, but it is recent renovation and recently refurbished. in terms of the rest, we'll run a standard rec park outreach process, which hasn't begun yet, so we didn't start that until-we can't really start it until we get approval for this agreement, because bxp design team will be critical part that process.

>> that will mainly-because you are right by the ferry building. >> right. >> boston property is right there. >> yes. >> you also have residents that is nearby, so will the residents nearby also be able to contribute and input and- >> 100 percent. in fact, i'm not sure-i know we had public speakers who were local residents. because the meeting is so long i am not sure they are still herex but yes, we reached out and started the conversation with them and they are supportive of this project. >> thank you. supervisor melgar. >> thank you so much. i hope there is no political reperications of me out of saying this. i am generally not a fan of [indiscernible] this is the thing in san francisco i [indiscernible] i am really glad we are doing this. i think it will open a world of

possibility in front of the fer ry building and make part of the city so glad you are moving quickly and i support it. thank you. >> thank you. >> thank you, let's go it to public comment on this item. >> if we have members of the public who wish to address item 21, now is your opportunity. >> [indiscernible] >> at the committee level. we can only accept public comment regarding the item that is currently called. i'll continue your time. thanks so much. >> i wrote and you have to give me a minute to talk. now, $25 million, gentrification. who is going to work here? i see people in the mission

going to daly city. driving people out of the city. chinatown. [indiscernible] three, four members [indiscernible] i thought melgar and mandelman, there no difference. >> next speaker, please. >> members of the committee, thank you for hearing the item today. my name is aaron fenten, i work for bxp, senior vice president of development. crazy it is only a year since the idea was conceived and called up our friends at hok to get creative about

what the opportunities exist and we are very excited to be here advancing the project. bxp larger commercial owner real estate in the city. the four embarcadero buildings, sale force tower and couple others and heavily invested in the city and not going anywhere i we want to make downtown, bring back to where it was prior to covid. we want to be part that story. we think a physical transformation in the downtown will be the catalyst to drive the growth the city needs to increase tax revenues and help solve the fiscal issues the city is facing, as well as attracting tourism downtown, attracting developers to office buildings to residential downtown, so super excited- >> speaker time expired. >> committing up to 7 $7 and half million for the project.

>> next speaker, please. >> good afternoon. thank you for having me. my name is matthew burnsteen and represent the ownership of the gateway apartments at 460 davis court, so the gateway apartments in photos shown are 1254 residents along with 70 thousand square feet of commercial. we are located across drum street from sue bierman park, the location of platform park that bxp and the parks department is presenting. the gateway is fully supportive of the proposed plan. we think the city for the [indiscernible] downtown revitalization since covid and see improvement. we think the platform park will bring material improvement to the neighborhood and provide a unique destination for san francisco residents, workers and visitors. the gateway hopes the committee

and city will support this unique opportunity to create a lasting public space for san francisco. thank you. >> thank you for addressing the committee. next speaker. >> >> hello. i'm a resident of financial district of 5 years and also a lifelong skate boarder. iment i want to come out in support of the redevelopment sue bierman park and embarcadero plaza and want to hold the city insuring the park department contact and gets consent from the residents of the neighborhood. sue bierman park and embarcadero plaza are historic parks in the skateboard squeen scene, [indiscernible] i do think it is important to keep the residents of san francisco involved in the process and not let corporate partners like bxp overtake the development of this park. thank you.

>> thank you for addressing the committee. madam chair, that completes the queue. >> thank you. seeing no more public comment, public comment is now closed. colleagues, i like to move this item to full board with recommendation and a roll call, please. >> on the motion to forward the resolution to full board with positive recommendation, vice chair mandelman aye. member melgar, aye. chair chan, aye. >> motion passes. with that, mr. clerk please call item 22 and 23 together. >> item 22 and 23 are resolutions authorizing the following as relates to multifamily rental housing project known as, casa--1515 south van ness located at 1515 south van ness avenue and granting general authority to city officials to take actions necessary to implement the respective resolutions and related matters. item 22 authorizes the

execution and delivery of multifamily housing revenue notes in one or more series and aggregate principal not to exceed $107.6 million for purpose of providing finances for the construction of the project authorize the execution of a funding loan agreement providing the terms and conditions of the funding loan from the funding lend er to the city and the execution and delivery of the notes. a project loan agreement providing the terms and conditions of the project loan from the city to the borrower and execution of regulatory agreement and declaration of restrictive cuv nns for the project. authorizing the collection of certain fees, approving for purpose of the internal revenue code of 1986 as amended and execution and delivery of revenue notes in amount not to exceed approximately $107.6 million

approving modification chaichcking and addition to the documents, ratifying and approving action taken in connection with the funding loan the project loan, notes and project. 23 is a resolution that approves director of property and director mayor office amended ground lease at the location for a lease term of 75 years and one 24 year option to extend of annual base rent of $15 thousand to construct the project. approving and authorizing amened and eare stated loan agreement not to exceed approximately $45.2 million for minimum loan term of 57 years. to finance the development and construction of the project adopting findings declaring the praurcht is exempt surplus land pursuant to the california surplus lands act

determining that the less then market erent payable under ground lease serve public purpose providing affordable housing in accordance with the administrative code. adopting findings and transactions are consistent with the plan and priority policy of the planning code and authorize the director of property and mohcd to execute the ambded restated ground lease and loan agreement and make certain modifications to such agreements. madam chair. >> thank you. today we have mayor office housing community development here. >> thank you. omar mazry, project manager. here before you for two itedms related to twement of new hundred percent affordable housing community, 1515 south van ness mission economic development agency and chinatown community development center or cdcd at 1515 south van ness in the mission

district. -authorize two primary actions. first, a city loan up to $45.2 million for minimum loan term of 57 years which is entity created by the cosponsors to develop and own improvements. along with a-minded restated ground lease to continue leasing city owned property to the sponsor for up to 99 years using similar terms for other city funded new affordable housing communities. the project i was warehouse building and surface parking lots used by mcmillen electric founded by south van ness and 23 and 26 street. to the southeast of the site is 1296 shotwell, a hundred percent

affordable housing community for seniors. to the south is autozone parts store. the site was purchased for $19 million. from lennar, which proposed market rate housing of the site. selected as cosponsors for 2020 multi-site request for qualifications to develop a hundred percent affordable housing community for families with 25 percent of homes rerfbed for families exiting homelessness. april 2023 approved the project using california state assembly bill 8162 which provides approval for affordable housing projects that also incorporate supportive housing. this project is the first to use the state law in san francisco. in april 2024, the state housing community development department or hcd awarded the project $37.9 million in highly competitive multifamily housing program loan.

the project also received a $4 million low interest loan from housing trust silicon valley and award for federal tax credits. november 1, the city wide affordable housing loan committee recommended approval of up to $45.2 million in city loans. the sponsor intends to develop 168 units of housing along with two commercial spaces with one space intended as neighborhood serving child care center. a second commercial space that incorporate non profit worker organizing and job training center. the 9 story 168 unit building feech were mix of studios and 1, 2 and 3 bedroom units. 42 of the homes would be reserved for families exiting homelessness with rental subsidies and on site supportive service that is funded by the local operating subsidy program. five additional homes received

for hiv positive households with income restricts to no more then 50 percent a mi. the building feature a single two bedroom manager unit and 24 hour front desk coverage. the remaining 120 general affordable homes are set aside income restrictions between 40 percent and 80 percent a mi. the sponsor utilized a 4 million city predevelopment loan, a second $3.1 million predevelopment loan on predevelopment activities and demolition of the warehouse building completed last month. the project finance concludes a mix of city, state and federal funds including a federal loan bank loan of $1.6 million. $37.9 million state loans, $78.5 million and $45.2 million insity loans for consideration today. supervisors a crucial part of

project financing includes state authorized tax credit and bonds that right loan closing by february 2025 to insure the funds remain available. with your support, meta and cdcd look forward to construction started february 2025 and project completion march 2027. thank you for advance for your consideration and support. >> thank you. >> item 23 is a resolution that approves an a-minded restated ground lease which is meta and cddc for term up to 99 years and not to exceed loan of $45.2 million with that same entity. they will be developing a 168 unit low income housing project at 1515 south van ness that includes a child

care center with 46 children and a space for a community serving non profit. we summarized the fiscal impact on page 80 of the report. the total development cost is $167.7 million. the cityfunding up to $45.2 million or $269 thousand per unit. the $45 million is actually essentially the same as mohcd predicted in 2019 when the board approved the purchase of this site for $19 million. unlike other affordable housing projects, the city is actually-general fund and other subsidies on the site on a ongoing basis that includes a local operating subsidy for 42 units reserved for formally homeless households at

$760 thousand a year, hsh support services at $537 thousand a year and child care center will likely assume funded by family care subsidies, so this will be ongoing cost the city will have to bear for this site to work. i recommend approval of item 23. >> thank you. i appreciate the investment and the time to really pull together all different types of financing tools and options and resources to make it work. tax credit and those things i really love to continue to see more of when these project come before us. just being able to explore and just kind of [indiscernible] for those resources for every project. thank you so much for also keeping to your 2019 estimate which is very amazing. it is all most rare that we get that

these days, so i really appreciate all that. i don't see anyone on the roster. we will go to public comment on this item. >> we are opening public comment for those who wish to address the committee regarding these items, 22 and 23. now is your opportunity. madam chair, we have no speakers. >> seeing no public comment, public comment is now closed. i like to move these two items to full board with recommendation and roll call, please. >> on the motion to forward to full board with positive recommendation, mandelman, aye. melgar, aye. chan, aye. we have three ayes. >> the motion passes. mr. clerk, please call the next--i wanted to be a little more efficient, but i don't think-i see, okay. let's call item 24. >> item 24 is a resolution authorizing the bay area urban area

security initiative at the department of emergency management to apply on behalf of the city and county state and federal financial assistance under various grant programs for fiscal years 24, 25, 26, 27 and 28 including the urban area security initiative grant and state home land security grant program, the emergency man jsment performance grant and the local government oil spill contingency grant and hazard mitigation grant program. madam chair. >> thank you, and we have department of emergency management here today and thank you so much for your patience. >> absolutely. good afternoon chair chan and members mandelman and melgar. just verbal presentation for you today. hopefully short, sweet and straight forward. the general manager for the bay area. which is regional agency which represents the emergency preparedness priorities on behalf of the 12 bay area counties.

we manage administer state and federal emergency preparedness grants that support the needs of 12 bay area counties. the city and county of san francisco through the department of emergency management actss a the fiscal agent for the bay area and is required by the state of california to obtain proof of authority from the san francisco board of supervisors to apply for these funds on behalf of the bay area. the item before you authorize to apply for five different grants through the state of california through fiscal year 2028. during these difficult budget times it is more important to capitalize on federal grant opportunities. the grant provides funding to enhance regional preparedness and designated high threat and high density areas. this is the largest grant administered by the bay area and supports all 12 counties throughout the bay area. including the needs over 8.2

million people and hundred incorporated cities. once received the funds are allocated to three main areas for program execution including national priority projects, ongoing sustainment projects, as well as funding to support special projects in each of the 12 counties. the grant award provided to the san francisco bay area on average is between 29 and $30 million. we did see about a 9 percent reduction this year and award letter we received last month was just for just over $27 million. the other four grants represented in this item support the priorities of the city and county of san francisco specifically. the state home land security grant program provides funding to support the implementation of risk driven capabilities base strategies. san francisco uses this annual grant as supplementary funding for salaries for 10 different positions across 4

different city departments. san francisco intended award for fiscal year 24 is about $776 thousand under shsgp. the emergency management performance grant supports prevention, protection, mitigation response and recovery mission areas. san francisco uses this annual grant to partially fund three different positions within the department of emergency management. san francisco intended fy24 award is all most $270 thousand for this year. the local government oil spill contingency grant provides funding to california counties and cities from the california department of fish and wildlife. comparison to others the grant is very small for san francisco. it constitutes about $5 thousand for one specific staff member of the department of emergency management to participates in oil spill exercise. the hazard mitigation grant program provides funding for state and local government to plan for and

implement hazard mitigation measures to reduce the risk of loss of life of property from natural disasters and dem is the applicant this grant does manage projects from the port of san francisco, the office of resilience and capital planning and other city agencies and are the awards are based off the specific projects applied for as we don't have a estimate for them. this concludes my presentation and happy to answer any questions. >> thank you so much for all your work on this. very critical important work. thank you. with that let's go to public comment. >> if we have members who wish to address item 24, now is your opportunity. madam chair, we have no speakers. >> thank you. seeing no public comment, public comment is now closed. we like to move this item to full board with recommendation and roll call, please. >> the motion to forward to the board with positive recommendation, vice

chair mandelman, aye. member melgar, aye. chair chan, aye. three ayes. >> thank you. the motion passes. mr. clerk, please call item 25. >> item 25 is an ordinance ret reactively authorizing the dist rth attorney to accept and expend the grant from california department of insurance to fund organize automobile fraud activity addiction program in the amount of $1.2 million for the grant period of july 1, 2024 through june 30, 2027 and amending ordinance number 191-24 which is annual salary ordinance for fiscal year 2024 to 2025 and 2025 to 2026 to provide for addition of one grant funded position in class 8550 district attorney investigator for the grant agreement period of july 1, 2024 through june 30, 2027. madam chair. >> thank you. thank you before we start,

thank you so much for your patience today. i appreciate it. we have a lot of items so thank you. >> thank you, we appreciate the board getting us on the committee getting on the agenda today. good afternoon chair chan and other members of the committee. and thank you again for your time today. i kept crossing off morning afternoon and decided on today. my name is [indiscernible] the managing attorney of the d a economic crime unit. today we are seeking resolution for ret row actival request to accept and expend a california department of insurance grant fund for the organized auto fraud activity program, which we commonly call the urban auto grant. a three year grant to fund the investigation and prosecution of complex and large organized autoinsurance ring. pay one d a investigator to work as a multijurisdictional task force and cover half the prosecutor

salary to litigate the cases. the grant also includes fund to cover training costs. in recent years, as i always tell the board when i appear, we have seen increase in fraud cases and particular in complex auto insurance fraud cases. this grant provides the d a with additional resources for complex auto fraud cases. because it operates as a task force, the sfd a will have the added resources of assistance from other participating agencies. we have not spent any grant fund as of yet, so it is retroactive request to accept the grant. with that, happy to take any questions. >> thank you. vice chair mandelman. >> thank you chair chan. thank you for your presentation and your work. how does auto insurance fraud work? what is the scenario? >> there is lots of different

scenarios, but for the types of cases that this grant would cover, it is usually multiple defendants, multiple instances of fraud. for example, you could have a case where a tow company is associated with a auto body shop. they pick up someone's car and don't tell them they will it to their auto body shop and they tack and jack up the prices and increase the prices on the towing, increase the prices on the services, so there is multiple ways they can do it and also just fraud in basically trying to get more money from insurance companies. >> wow. glad you are on it and i like to be added as a cosponsor. thank you. >> thank you. i learned something new every day. with that, let's go to public comment on this item.

>> if we have anyone in the public in the chamber who wish to address item 25, now is your opportunity. no speakers. >> public comment is now closed. i like to make the motion to move this item to full board with recommendation and roll call, please. >> on the motion to forward to full board with positive recommendation, vice chair mandelman, aye. member melgar, aye. chair chan, aye. we have three ayes. >> the motion passes. thank you. with the next-i would like to actually call the items 27, 28 and 29 together. >> okay. items 27, 28 and 29, p27 is resolution approving the second amendment to grant agreement between compass family service and department of

homelessness supportive housing that provide temporary shelter for families experiencing homelessness extending the grant term by 18 months from december 21, 2024 for total term-increasing the amount by $9.6 million for total not to exceed $17.8 million and authorize hsh to enter into amendments or modification to the second amendment to not materially increase the obligation nor liabilities or decrease the benefit to the city and unnecessary [indiscernible] purpose of this agreement. item 28, resolution that approves a 4th amendment to the grant agreement between community housing partnership doing business as home rise and the department of homelessness and support was housing for 5th harrison transitional living program for

transitional age youth extended the grant program for total term of july 1, 2019 through december 31, 2025 increasing the agreement amount by approximately $2.9 million for total not to exceed approximately $12.9 million and authorize to enter into amendments or modifications to agreement that do not materially increase the obligations or liabilities nor benefits to the city. item 29, resolution approving the 6th amendment to grant between saint vincent de paul society of san francisco and hsh to provide shelter operation and service at the multiservice center south. extending the term by 36 months from june 30, 2025 for total term july 1, 2021 through june 30, 2028 increase the amount by approximately $40.6

million for not to exceed of $66.6 million and allow hsh for the same authorization to enter into amendments or modification. madam chair. >> thank you. today we have department of homelessness and supportive housing here. >> good afternoon chair chan, supervisor mandelman. emily cohen department of homelessness and supportive housing. thank you foring us today and appreciate you and your staff getting on such a full agenda. we are here with several items and start with compass family service contract amendment. here with before you today to enter into the second amendment to our grant agreement between the department of homelessness and supportive housing and compass family services for the urgent accommodation vouchers program known as hotel vouchers and really excited about this contract coming before you because this is part of the

implementation strategy for the safer families initiative which st. the $50 million family homelessness initiative that you all authorize during the budget process so excited to bring the shelter component of this forward. really want to thank supervisor melgar for her support of the initiative and supervisor melgar and ronan for their cosponsorship of the resolution. as i mentioned, this is the second amendment to this agreement and it would extend the term by 18 months through june 30, 2026 and increase the not to exceed by $9.6 million for total not to exceed of $17.8 million. this did go before the homelessness oversight commission and approved november 7. the compass urgent accommodation voucher program for families and pregnant people provides

emergency short-term host health phase and supportive services to families experiencing homelessness. as part of the mayor safer family plan, the compass program is expanded to include shelter vouchers that provide alternative to the shelter system because we are over capacity within the existing infrastructure. the compass family services shall provide service to 130 families any given time with staff of 14.1 fte. 80 the voucher slots are designed to augment the existing emergency family shelt er system. fy23, 24, this program served over 220 families with after hours and immediate placement needs. the program in fy23, 24 served

190 families with over 550 people in those families and 75 percent of the funding for this project comes from prop c or our city our home. the program offers a low barrier access process for families to come off the streets through coordinated entry or overnight and after hours to be able to leave the street and get into safety. the ongoing services include benefits support, housing assistance, health and behavioral healthcare as well and i will stop there and take-not sure if you want to take questions here or how you want to roll through the three items? >> we'll go to the bl a for this item. one item as is a time. >> item 27 is a resolution that approves a grant agreement amendment with compass. the amendment extends the

agreement from december of this year through june 2026 and then increases the spending authority on the contract by $9.66 million. 75 percent that is funded by proposition c revenues and the remaining about 25 percent is funded by the general fund. this is to fund short-term and longer term stays at hotels for families. the grant began in 22, 23 and then in that year and 23, 24, the program was ramping up and then there was funding continually added to it. i think as a result, the grant was under-spent by 50 percent each year. the deliverable's however were largely melt in 23, 24 according to department of homelessness

>> here we go. thank you chair chan, committee members again, emily cohen, department of homelessness and supportive housing here to request support of resolution approving the 4th amendment to a grant agreement between the department of homelessness and supportive housing and home rise for the 5th harrison transitional living program for young

adults. the amendment would extend the program through 6 months for total term of july 1, 2019 through december 31, 2025 and add $2.9 million to the not to exceed of $12.9 million. program context for you, home rise has been operating this program since 2023 and a transitional housing program focused on young adults and the services focus on employment, education and independent living skills for people between 18 to 24 who are experiencing homelessness or marginally housed. 23, 24 the program served 48 young adults, 72 percent of those folks were bipoc and 34 percent lgbtq. the average length of stay for the program was 271 days that year.

it does offer folks a longer term runway then a traditional shelter and much more intensive level of services to really get on their feet and move on from the program. you can see the cost here is about $146 per nouth, which is in alignment with our strategic plan estimate of what transitional housing should cost. the proposed short-term 6 month extension aligns with hsh multiyear procurement plan, which includes reprocuring all of our youth transitional housing and shelter portfolio in the spring of 2025, which includes this program. this extension will insure clients stability while home rise continues to work with the city to come into compliance with its corrective action plans that are currently in place. we just want to address up

front that home rise has been a long standing partner with hsh and they have struggled in the past and we along with the controller's office and mayor's office house and community development are working closely with home rise leadership to right the ship and get this organization healthy and in compliance with city standards, so they can continue to provide the critical housing and in this case transitional housing service they provide throughout the community. as i said, we have been working very closery with the controller with home rise on a action plan that includes 62 action items for home rise to come into compliance with city requirements. home rise initiated action on all of these items and leadership meets biweekly with hsh controllers and mohcd. they have so far implemented or corrected 14 items from the plan, which have now been completed and 45

still in progress with many due to be completed by the end of the year. some additional context for the corrective action and the progress being made, in 2022, hsh and mayor office housing squl community development requesting the controller office to conduct a audit of home rise due to concerns. in december 2022, the controller's office placed home rise on elevated status, which is now considered tier 3 and in april 2024, the controller's office released the audit for home rise, which articulated the reason for the concerns and the controller office leads and partner with us in the process to work through the 62 items the organization to correct. i think we remain very very confident in home rise new leadership to work with us to correct this so we can continue to provide critical

transitional housing service to young adults and in recognition that our entire transitional age youth portfolio will be reprocured soon and only seeking a 6 month extension. lastly, before i turn it back to the chair or the bla, i want to thank the bl a for their tremendous work with us on this report. they had two recommendation in their report and we are in agreement with both. the first we have submitted amendments to the clerk that reflect the reduction of $242.074 for not to exceed of $12.7 million. happy to read the amendments into the record now or follow-up however is appropriate. they have been submitted already. secondly, we agree to the bl a request to recommendation to not extend the agreement beyond the proposed

end date of december 31, 2025 without going through the reprocurement process. >> thank you. >> happy to take questions. >> item 28 is a resolution that approve a amendment to existing grant agreement between hsh and home rise. this grant currently ends in june 2025. the amendment extend 6 months to end of calendar year 2025 and add 2.9 million to the agreement spending authority. the grant funds a transitional housing program for transitional age youthing, 44 beds and the purpose of the extension as i understand it is to basically align the end of the contract with the department's plan to reprocure the segment of the system of care. they will issue a rfp or go

through a competitive process for temporary housing programs for transitional age youth in 2025. this the end of the grant will align with that planned process. i say, i have grave concerns about this provider. i think the audit the controller released was striking in the extent and severity of the findings and i was particularly struck by the organization resistance to the audit as it was initiated to a letter in response to the audit that suggested to me they were not going to cooperate with improvement plan the city was going to request resulting from the audit. i have consulted with hsh leadership and the controller's office about their progress on the corrective action plan

established by the city and sounds like they are meeting-they are making progress and actually have implemented already some of the recommendsations of 5 or 6 of the 62 corrective actions recommended by the city, so i think that have a important fact here. the other consideration is that, the program, this particular side according to the monitoring report is doing okay. they are meeting the occupancy targets. it sounds they can do better and providing the actual social service to the guest to make sure they have plans and case management and exit to appropriate placement once they leave the program, but this particular program does not seem to be failing. we do have a couple recommendations as noted by the deputy director to reduce

the grant amount by $242 thousand. that is basically money in the grant budget that is not allocated for anything. it is a extra contingency i don't think is necessary. just to put the board on the record and memorialize in the resolution the desire if you wish to actually make sure this procurement process happens, this is the last extension of this particular agreement in the current form. >> thank you. i want to call on the controller's office to just address this audit and ongoing issues and the most important part for me right now is that, i would say, if any organization come through to this committee at this moment with this kind of status, we will probably-i am not inclined to move forward with any type of contract amendment or anything like that, but i

understand the needs are dire, but i like to have a the controller office to address that. >> good afternoon chair chan. devon mccally, controller city wide budget manager. as you are aware the controller audit team adhere to robust and strict process for auditing and reporting which in this case involved a report issued in april of which i had 9 recommendations. those 9 recommendations currently are open. there is follow up conversations and questions. those responses from the department are due today to the audit team. when those responses are received, the auditors will review that and make status determination on each of those 9 recommendations. this will be followed by a report that will be issued standard report in this case issued by february on the status. >> i see, so we will not be receiving the report until february? >>