supervisor chu: thank you. we have kathy widner. >> the item before you seeks approval to retroactively terminate a portion of the current lease of pacific gateway concessions to reduce square footage by 3000 square feet. there will be a new total amount. it will be existing bookstore space in terminal one, suggesting the guarantee downward to $69,000 per year, to affect the reduced square footage. this would retroactively approve the airport's termination of physical source space required to accommodate security lanes at the request of the threat -- transportation security administration. this would approve the reclaiming of the bookstore square footage and adjust the current lease it to lower the minimum annual guaranteed based on square footage, as well as reimbursing the tenant for unamortized tenant improvement costs. i really want to acknowledge that this is coming to you retroactively and i apologize for that. i believe that based on conversations with development staff, there was hope that a lot of the

chairperson chu: thanks.s item we also do not have a budget analyst report if there are no commission comment at this time, why don't we ask -- open it up for comment from the public. >> ♪ it's the right time of the tax night ♪ ♪ the stars are shining are ♪ it's the right time of the tax night ♪ ♪ for fixing the capital chairperson chu: thank you. next speaker. >> good morning, and supervisors. my name is douglas. i would like to speak in opposition to this resolution. i have to admit that i am not flinch when it comes to certificates of participation. my limited knowledge it seems to me that the local government could finance it through other means, it should be able to. when it starts to use things like participants of -- certificates of participation, it seems that most of the people do not know what they are. and if they know what they are, they are probably confused about what they are exactly. it reminds me of the general topic of voodoo e

chair chu: thank you. just in terms of a question for me, in terms of the rfp that you said went out in the spring, you said there would be no alcohol or tobacco. is that in the current contracts? >> the expired contract? no, that was not the case. chair chu: that could explain some of the differential. >> it could, it could, but i am not sure. chair chu: and the first bidder use that went into negotiations with the city but are not in the contract that you brought before us. can you explain that a bit more? >> sure. the concept of the minimum annual guarantee, we did not see eye to eye on what that meant, and when we analyzed the terms and conditions of what they put before us, it created so many potentials for a reduction as the landlord, we did not feel edmund minimum. it meant a potential, and when we looked at the actual minimum numbers that would be reasonable return, their ranking fell frankly to the bottom of those that submitted proposals. chair chu: thank you for the explanation. why do we not go

supervisor chu: great. in terms of the b.l.i.p. project or program, are there other ones in the next phase you are looking at? >> it is a wonderful question. we are looking at what we call it post-occupancy evaluation. there are needs to reassess the projects that were completed early on. for example, in supervisor avalos' district, it was the first completed in 2006, i believe, or 2005. we are looking at it delivered approach to looking at what the needs are to maintain the investment we made on this project, and through the use of any reserve balances that we have, we will put the money back on that. so that as part of the project. there's also three other projects outside the scope of blip that we will be looking at making investments in terms of capital infrastructure in the future. supervisor chu: great. so the idea would be to look at the previous investments and previous work we have done and see what changes might need to happen? >> absolutely. also, keep in mind the operational needs that are part

supervisor chu: -- >> no. supervisor chu: are there members of the public it wished to speak on item number four? seeing no one, public comment is closed. we have a motion? supervisor kim: move forward with recommendations. supervisor chu: we can do that without objection. item number five? >> item number 5. resolution authorizing the department of public library to retroactively accept and expend a grant in the amount of $99,680 from the institute of museum and library services for a planning process, in partnership with the bay area video coalition, the california academy of sciences, and kqed to achieve two primary goals to -- one, develop a vision, program design, and test a teen center learning lab at the main library -- two, develop a citywide framework for incorporating content-based curriculum in a shared online platform, with the help of a broad consortium of youth service providers and a team of youth leaders across the city. supervisor chu: thank you. we have jill, from the san francisco public libr

supervisor chu: $50 million? >> yes. supervisor chu: thank you. let's open this item up for public comment. are there members of the public that which to speak on item number two? >> good afternoon, supervisors. i am with the san francisco bicycle collision. we are very supportive of the public realm plan and the jefferson street project in particular. you have heard all of our reasons. basically, there was a gap in the bay trail. right now, you can rent a bicycle at one of the many rental facilities that are there, but you cannot bring it back to the bicycle rental company. which is frustrating. it is probably the densest bicycle rental market per square foot in the western hemisphere. more are being rented -- rented there that i know of. by itself, it is an enormous economic engine as a tourism industry aspect. based on that area of the business, this is an important investment. it will be important for the america's cup, important for all sorts of reasons that we move people through their. i totally agree with all the points on equity. we have

chair chu: thank you.re there any members of the public wish to speak on item number one? cnn, the item is closed. colleagues, do we have a recommendation to send it forward? ok, we have got a motion and a second. we will do that without objection. i believe that supervisor david chiu wanted to be here for item number two, so let us get over that one and go to item number three. clerk young: appropriating $5,448,350, consisting of the fund balance and america's cup event font -- even authorities reimbursement, for the port commission for the development of a mixed use cruise terminal at pier 27. chair chu: thank you. with a report, we have elaine forms. >> good afternoon. elaine forbes, support staff. this is to have money for the budget, but the reason for this item is to address the timing of the cash. there are three sources in the supplemental. the first is in the amount of three-point for under 48 million. -- $3.448 million. we need the funds appropriated earlier. the second source, the 2010 port reve

supervisor chu: thank you. i am just wondering, jennifer. the loans will expect to put out there might be at a rate of 4% to 6% for the businesses. >> correct. supervisor chu: comparatively, about a year-and-a-half ago we set of the opportunity fund, loans that would go to -- this is separate from san francisco, but about $1 million worth of loans that they were going to make available for ada improvements across the bay area, with the san francisco in mind. you know how our rates compared to the program? >> i do not know, but i do know our rates are some of the lowest available right now. i can ask emily again. >> typically the size of the loan would be an 8% to 12% interest rates. so i fixed 4% to 6% interest rate is pretty much the lowest you'll see for this type of product. >> supervisor chu: savers and the like the opportunity fun, it would typically be between 87 and 12%? >> yes, i believe they are around 8% or 9%. >supervisor chu: comparatively, we're at 4% to 5%? >> yes. supervisor chu: the administrati

chair chu: thank you. if there are no questions at this time, why do we not go to the budget analyst's report? >> we were advised by mr. rosenfield at today's meeting about the potential question regarding the $2 million. we were friends that at the top of page 5 of our report from the event of 40. they were to reimburse up to $2 million in actual expenditures related to the shoreside power relocation. i would recommend the fact that given there are other uncertainties, it be placed on the budget and finance committee reserve, that $2 million, and i think the committee would then get the total clarification whether or not that is going to be paid or not. regarding the fiscal impact, we point out on the bottom of page 5 that the funding sources for the entire cruise terminal project, phase one is $62.30 million, and the funding sources are identified in table two, the attachment of page 9 and the report, and the actual budget for the expenditures of the 27 cruise terminal project is $93 million, and that is

supervisor chu: thank you. i do not believe we have an analyst's report with this. let's open it up for public comment. are there members of the public it wish to speak on item number five? >> good morning, supervisors, my name is douglas. i would like to speak in favor of this resolution, that according to my opinion, i think that the teen center of learning lab needs to be viewed from a different point of view. most kids, by the time they are teenagers, to be realistic, are behind on the learning curve. especially in the public schools. i think that the teen center of learning lab should emphasize remedial education and give all of these kids a chance to catch up, since a lot of them enter junior college, csu, even you see -- uc, requiring remedial courses, which many people tell me kind of ruins the college experience like their parents had. i think that this learning laboratory should stress remedial education. another part that it should have is a kind of question and answer for where kids can basically as

supervisor chu: i see. so the comment you are making, in 2010, early 2010, the tickets for the parking were very much sold. in baseball season at least, which is when we would have charged a higher rate of $300,000 for a permanent rate. so, if we, at the port had decided to say, let's implement in april 2000 at 11, we actually would have seen an implementation, so it made no sense to do it at that time. supervisor kim? supervisor kim: i just had a follow-up question to that. selling spaces in advance -- why was the port not aware of this? i am aware at the time renegotiated finally, but knowing this was the president, would it not have been a surprise to the port that -- known this was the precedent, would it not have been a surprise to the poor that the parking spaces would have been given away -- to the port that the parking spaces would have been given away? >> yes, in retrospect. i think it was an oversight, frankly. in retrospect, we would have started negotiations earlier. we have a provision that all

supervisor chu: thank you. are there other members of the public it wish to speak on item number five? seeing no one, public comment is closed. we have a motion to send the item forward with recommendations, without objection. thank you. item number six? >> item #6. resolution authorizing a ten- year lease of 2712 mission street from redwood mortgage investors viii, a california limited partnership, for the department of public health at an initial annual rent of $768,000. supervisor chu: thank you. i believe we have two representatives on this one. >> good morning, supervisors. i am with the real-estate division. i am seeking approval for a lease agreement on behalf of department of public health. it is a 10 year lease of 32,000 square feet, $2 per square foot, per month. a decrease over the prior lease rent of $3.40 per foot. the maximum of 5% will be made at a yearly basis. providing up to $150,000 worth of landlord improvements with a rental credit of approximately $216,047 to the city if the commencement d

supervisor chu: thank you. >> what i want to bring your attention is that the mayor's office of economic development first has to get some facts right, ok? san bruno avenue, we talk about san bruno avenue where all the businesses really are, district 9. right off the bat the targeted areas are district 9, a tan, and 11. that correction is important. secondly, when you offer more loans to entities like renaissance who are connected with the redevelopment, you also need to offer assistance to other entities. one of the ways if you really want to find out about any entity, if they are very fair, is to do an audit. a simple audit on some of the entities that have been mentioned today, you'll find out that even if their employees cannot be working in those areas because of whatever. and the questions that were asked by the supervisor of wells fargo, even though he could offer you $5 billion, wells fargo was very instrumental in many foreclosures. [bell rings] so i am very dubious about bank of america and wells farg

supervisor chu: do you want to ask a question? if you could clarify the green and purple bars. >> i thought we were going to have an arrangement for me to have more time. supervisor chu: can you please elaborate on the use of the ryan white fund? >> there is information available in your package as far as what type of service is the funding is spent on. a variety of supported services that keep people in care, keep them healthy, and keep them from needing emergency services. there is also a list provided of which agencies in particular will see how much of a reduction in their service delivery over the next few months. these numbers represent roughly 19% of the ryan white award. you may see the name of an agency that you are familiar with. this gives you an idea of what the impact will be for that agency. supervisor chu: it sounds like this is across the board same%. >> its is the formula that greg discussed. supervisor chu: the first 5% going to core. >> in addition to the money that the department has control over, there is also

chairperson chu: thank you. >> good morning. i'm here today to respond to any questions you may have regarding this contract. chairperson chu: for the purposes of information to the public, which you just explain what the grant would do? >> it funds the inspection of the number of just about two hundred agricultural inspection lot. we do wholesale distributors and we have about 116 of those inspections to conduct. we also at 82 retail inspections that we conduct city-wide at the small stores and the large stores. what we do is we go out and we have a device, a tool that we use that is called an egg handler. it projects a really strong light. it places the egg up against the can lurk and can see -- against the candler and we can see inside if it is good. we reject the broken ones if they are not good. we can see inside it is good. we dispose of the not good eggs on site or return them to the plant where they were produced. chairperson chu: this is not requesting any new positions, correct? >> know. chairperson chu: why don't we o

supervisor chu: thank you. last question -- in terms of the 2000 bonn, all those bonds are called for? there are in process? >> are they accounted for in terms of expenditures? i believe they are. >> between the bonds and the bond interest, we have $109 million that has been spent to date, so they are not fully spend, but they are close to being spent out. supervisor chu: close to being spent out. ok. is there a large balance left? >> no. the total available is $112,900,000. supervisor chu: i guess the question is what was the authorization for in 2011? >> $105,865,000. the variance is the additional bond interest that has accrued overtime that has been appropriated over time to the project. supervisor chu: ok. probably i will just have to clarify with you offline. public comment on this item or these two items? items seven and eight. >> good morning, supervisors. i would like to speak in opposition to these two items. i am sure everyone is familiar with the elderly gentleman that comes before the board on tues

supervisor chu: supervisor kim.kim: it is always important to hear directly from the community. thank you to everyone. i do not know if -- one of the issues that has repeatedly come up over the years, it gets exacerbated every year, we make the same cuts. although it looks like a small cut every year, when you think about what we have had to cut every year for the last five years, it is hard to get an overview of the services. i thought it was really helpful to get the graphic of the ryan white funding. what that has meant overall. i was hoping that you could talk about the context of the cuts that have been made over the last several years. >> absolutely. your staff is doing a good job. i have the summary of the history of our caucus. spending -- of our cuts. spending reductions over the last five years. i will distribute copies. there are a few different things going on. if you go back and look at all the initiatives that went in front of the health commission and ended up making their way into the budget, it and

supervisor chu: thank you. let's open these items up for public comment. are there members of the public who wish to speak on items number six or seven? >> supervisors, some of us, including myself, have attended all the important meetings linked to the water system improvement project. as you can see from this presentation, some of the benchmarks have been achieved, and there are moneys out there where our community, especially communities here in san francisco, can benefit. now the details of how we can benefit, presentations have not been given to the board of supervisors. but in this dire economic time, some of us have presented some projects to the manager of the san francisco public utilities commission, and i guess it is would then his purview to filter that down -- would then his party to filter that down so that our community can at least towards the tail end of this project benefit from what has been accomplished up till now. so again and again, this is a very large project. if i am not mistaken, $4.2

supervisor chu: can you call item no. 1? >> hearing to receive updates for the fiscal year 20122013 and 2-2013 and 2013-2014. supervisor chu: we brought a number of topics to the extended committee to get an overview of the department and to provide early feedback before the budget is finalized with the mayor's office and the submission to us. >> good afternoon share, and members of the board. thank you for having us come to present a budget. joining me today is douglas legg, helping us prepare the two-year budget. it took a little bit of work, and the leadership has led us here. dpw, as you know, we have about 1116 employees. of the work maintains the city's roads. a lot of her work maintains many of the city's roads. we also maintain the street trees. a number of bridges and tunnels, and in addition, we managed over 158 city blocks, several thousand curb ramps, we answer to 311 about 110,000 calls a year. we're responsible for cleaning the streets. we're responsible for graffiti on private property. we have a team that wor

supervisor chu: thank you. >> the next slide we also want to mention what is going on with the enterprise department because they make up the majority of our 10-year capital plan. they have their own commissions and so forth looking at it. it is important to keep that in mind. the airport has been doing extremely well. most of you are aware of that. that has been reflected in their capital plan so we're happy to see that they are reinvesting in the infrastructure there to make sure it stays first-rate. they have seen an increase of 50% of their increase from last year's 10-year capital plan to the next 10 years. primarily, this is due to the inclusion of a terminal one preconstruction. this is similar to the work they did at terminal 2. this is an $840 million project. it was an emerging need. now they identified this, it will move to a funded project. other major projects over there, you can see the photograph at the bottom left of the new air- traffic control tower. there's a lot of run like safety improvemen

supervisor chu: supervisor wiener? supervisor wiener: it would be great if you could start with the hiv programs. >> ok. supervisor wiener gave him an encapsulation of the big picture. as he said, we have two major issues that are confronting us for the coming year. the first is on the ryan white funding. as of earlier the sure, there is a piece of our funding that has been in danger on multiple occasions of being reduced. over the past several years, we have always, with the help of our benefactors, have been able to make it through without those reductions. we learned earlier this year that that was no longer going to be the case. our funding associated with a ryan white would be going away. we have a supplemental appropriations approved to get tested the end of this fiscal year. -- to get us through the end of this fiscal year. but we have $4.7 million gap. i will just make a note that there are still some adjustments that could come to that figure. we are waiting on some final information on some of our awards that

supervisor chu: thank you. next speaker. >> good afternoon. steve, president of the outer mission merchants and residents association. i am really excited about this, especially -- asleep preaching to the choir of course, but mission street, basically between silver and the daly city border has most of the businesses, small business owners. we do have wells fargo and bank of america. but most of our business owners or small-business owners. one of the things i brought this morning at the forum is than most of these people, not all, and most of these people do not speak english and will have a hard time speaking english or understanding english. and when they have either call me or i have reached out to them, they are afraid to look at these are virginity funds are getting these small interest loans. so i am glad that jennifer had put down in her talk about reaching out to people who have a hard time with the english language. doing brochures. and i am willing and excited to do this for them and for the neighbor

supervisor chu: thank you. mix speaker, please. -- next speaker, please. >> my name is michael scott jarvis. i live at care facility for people with aids. budget cuts will see -- will impact the level of services needed. i know about my treatment because they used to be a volunteer their. medical staff and support has made things easier for me to recover more quickly than the doctors and dissipated after my recent surgery. my knowledge of one care in physical distressing live beyond normal nursing care. if i were not there, i would only have option of going through an sro. as a person with aids, i ask you to please put the money in the budget to support this during the time of ryan white funding cuts. supervisor chu: thank you. >> hi. my name is michael smith. i am the executive director of passionate care. we are a 24 hour residential care facility. some of our residents were formerly homeless and many lack medical support before arriving. we have served over 1000 in our 25 years. most of those residents exper

supervisor chu: thank you. >> good afternoon. i am a health services manager at larkin street youth services. i work as a part of the team that serves 45 youth who are living with hiv and aids. teen-agers and young adults are different from beyond our children and older adults. they are working on autonomy, and they are impulsive and fearless. it is an exciting and dangerous time. the proposed ryan white cuts will impact our ability to provide a youth-specific counseling to young people. i fear we will be left with increased numbers of young people in the bay area who are hiv-positive and not even know it. i fear our community load will increase substantially. many young people do not feel comfortable or save engaging in adult services. the most significant relationships are with peers. the role of the peer advocates is to support them and connecting with providers, go with him to appointments. it is crucial in getting youth engaged. our young people deserve the support funded through part d. thank you. supervi

supervisor chu: thank you. if there are no questions at this time, are there members of the public that wish to speak on item number one? >> ♪ dpw trees, very pretty and the budget very sweet thanks for sweeping those many streets ♪ ♪ the dpw tree very pretty and the budget very sweet thanks for keeping th streets swept and very neat ♪ ♪ dpw tree, very pretty and the budget very sweet and for thanks for fixing all the sidewalks and all the street leaks ♪ supervisor chu: thank you. are there other speakers that wish to comment on item number one? public comment is closed. if there are no questions, i would like to think the department and congratulations on your appointment. in terms of your budget, i think a few things to follow-up on, i think there is interest to make sure that we have full information on how -- for many of us, we would like to see him when the process is looking like. it is just about the street paving program, how we are looking in terms of paving. we have the bond, which is a great king, bu

chair chu: thank you for that. we have a number of people here, but before we go to that, i want to welcome our president been chiu. would you like to make a comment? president chiu: fisherman's wharf is a destination. and about 10 million tourists go through. this is in the heart of the wharf. as you know, it is not a good street level experience. it is poorly designed for people looking for parking, extremely difficult for cyclists and for muni. for many years, there have been discussions about how to build the streetscape. in fact, this project dates back to 2006, which is when this has happened. there is no consensus that will be presented today, and this is important not just for the neighborhood and for my district but for the entire city, and the budget analyst's report in addition to my strong support, mayor lee also wants to make sure that this project gets done for the eight america's cup. i hope that he will support this. chair chu: thank you. >> i want to start by saying that the supplemental appropriat