the change of our nonprofit charity -- basically, like a work fun foundation but it's friends of laguna honda. majority the donation to our gift fund is from honda. they used to be able to give through the e -- reimbursement process or respond to the activity or programs that we have. going forward they want a more centralized approach. they just want to give us a one lump sum donation based on our proposal of the budget. so usually if we look back the last three years their donation is about $50,000 but actually going next year they will give us $100,000 total lump sum donation. that will include -- if you look at the list, the bottom two items, you see the new items that were donated, especially the last item, the wish list. this is something that has been supporting throughout years, i don't know how many years, before i even started at laguna honda, but this year and going forward they would like to just give us the money for us to procure. usually the program is for like minor or defensive supplies and then they purchase for our residents. going forward they just want to give it to the g

but i want to assure the public and you that the reason that we pulled away from 250 laguna honda was solely due to the need to be cost effective in our application of bond funds. there was site due diligence that our team did on the site, is that showed a very unstable hillside above our parcel. and the geotechnical engineers advised us there would be a stream of debris constantl flowing down onto our project. in addition, more seriousl that there was severe seismic safety risk for the homes above our parcel and that created what we thought was potentially an unsafe condition with serious cost implications. as well, there was a church on the site that had been deemed historic resource. and so we were unable to use that land that we thought we couldeplace with housing for housing. so the combination of fewer units and high costs and high long-term liability led us to the decision that it made sense mo cost effective development. and into a development that we could get going immediately. so the public could see the bet of the bond funds. so just wanted to state that for the record. al

all of them would be eligible to be at laguna honda, or any other nursing home. but for the day health services that they're provided this very important beacon of our city. the presentation day health. last year, i understand that there is a -- you know, a demand for resources and there is always a balancing and a stress attention because of health care fraud attorney for the government, i understand how important public services are, particularly health care services. but the loss of her coming for a while, she was announced last october or september that she was going to go to the courage center and -- because she was more needed there and with the great assistance of ms. garcia, director garcia, that was put off for six months in order to ensure that an applicant -- because they got no and cants. it was raised from $35 an hour to $45s. applicants were received fresh out of nursing school. how could people fresh out of nursing school care for people in the condition they're in. they're very frail. they're very, very -- they need to have vital, vital needs. so,

this includes transitioning individuals from skilled nursing facilities like laguna honda hospital which has a dual purpose of allowing people to live independently while freeing beds up for those who need it. this concludes our report. >> supervisor kim: thank you. and john, thank you also for being here today. i just had a quick question. this is a very low dollar amount, which is great. it's not that i want us to spend more, but i'm just curious, what can you do with $16,000? >> it's 16 million. >> supervisor kim: oh, i'm so sorry. clearly, i just came back to work. this is a large dollar amount, then. could you explain -- it's closer to 17 million, thank you, supervisor peskin. could you explain what this contract costs cover, and i am familiar with brilliant corners anheir work, but what services would be provided under this contract? >> sure. it covers everything from the point for the preparation for moving io the individual up till the time that they leave. so it does a lot of -- they do a lot of work in terms of unit identification and finding appropriate market rate community s

she remained deeply committed to laguna honda hospital even after she retired. she continued to go back time and time again and volunteer. she was very involved in the irish community, including festivities held throughout the city and at the united irish cultural center. she will forever be remembered by all for her love of family and her friends, her charismatic, loving smile, and mostly how she made everyone feel special with her loving and warm personality. thank you and the rest i submit. >> clerk: thank you, madam president. supervisor ronen. >> supervisor ronen: thank you. i wanted to thank president breed for doing a in memorial for barbara brown and ask to be added as co-sponsor. >> clerk: that concludes the introduction of new business. >> supervisor breed: thank you, madam clerk, can we please go back to our items 34 and 33 -- 33 and 34? mr. davidson, you have a new report for us? >> clerk: it's 34 and 35. >> supervisor breed: thank you. supervisor peskin. >> supervisor peskin: i want to bring to the board's attention an email that we all received yes

i understandw ibeing -- she has a tice on the 25th that she was being transfered to the laguna honda nurse advice line. an advice line when people need r and r care. and her vision when they have a bladder infection and chest pains. she is much more of a service to u, toall of you, to the city of san francisco if she is with them than answering phones end i understand again attention of the resources of this field and for public services. but i just wanted to read this. so i just want to plea that please reconsider keeping her longer until somebody with experience to take care of the frailest of our seniors comes forward for th position or extend the period until sorry, atith myself. either extend the period for a while or make it permanent again. may i read this letter? >> thank you. your three minutes are up. however, is the letter from one of the residents or -- >> yes. >> one of your people from -- are they here in the room? >> she couldn't be here because she was sick. but if you'd rather hear from one of the people here i k help represent them, i'll allow you to read the letter

it looks like about 250 are in the low-income housing that may be from switching from laguna honda to the other two. but the middle income housing that dropped by 170 units and i didn't see discussion of that. maybe you could comment on that. >> there was a loss of units projected i t low-income housing unit because of the reallocation of funds. also because of rising costs,e have been able -- we have had to spend more on a per-unit basis for projects. also, the same is true of the middle income housing. we projected, even a year ago, we projected a certain per-unit subsidy that because of the costs and also at the federal level, i didn't mention this, but with the federal tax reform act that was finalized in december of 2017, we lost approximately $50,000 in equity per unit from our low-income housing tax credit program. the only source of replacement for those funds is the city. so we're facing dual challenges, less assistance at the state and federal level, and higher costs. so that is resulting in higher gap funding on a per-unit basis from us. but we can go back and give you more

francisco to receive federal reimbursement for costs associated with the construction of the new laguna honda building, which opened in 2010. and the potential need to repayback these funds, d.p.h. has set aside funding in its management reserve and the mayor's budget appropriated $56 million of these reserves funds to make the repayment as necessary. we will now go into the next phase of the budget that will be to the board of supervisors. we have two hearings in front of the board for a schedule for ju5. and either june 21 or june 22, we haven't been confirmed with that. so, we're working with the d wt this review our e analy budget and look at things that they would like to take out of our budget and we go back and forth in negotiations. we'll kept you informed of any changes that will take place and provide you a final update on the budget in august when the entire budget will be completed. that was a long list of dollars and i just wanted to give you an opportunity to ask any questions you may have of the budget. >> first, the list that you were talking about in terms of the initiatives,