Skip to main content

tv   CCII Commission on Community Investment and Infrastructure  SFGTV  July 3, 2020 12:00am-3:01am PDT

12:00 am
there is another item that came into the chat. will there be any operatable windows on the folsom street side? >> so, yes. there are operatable windows. however, one of the things that was found in the acoustic engineer's report is that the -- in order to meet the s.f. noise ordinance that it has to be mechanically ventilateed so if you're annoyed with the noise that you can close the windows. so the upper windows -- >> dylan, i just heard gina. is she in here? >> yeah, so she's echoing. can you hear us, gina? >> she was just somehow on here.
12:01 am
>> gina, can you hear us? >> here, you guys can just look at her -- (indiscernible). >> this is shawn with sfgov-tv. you can upmute her in the attendees list. >> i did that. >> so i want to have daniel finish your comment. >> sure. so the question was if there are operatable windows and the answer is that there are. you know, typically in, you know, in each bedroom would have a couple fixed windows and then maybe one portion of it that is a window that you can open to get some fresh air. but the -- the key is that all of the units are mechanically ventilated with ducted and, you know, lugerred systems.
12:02 am
so if there is a resident that is annoyed about the noise from the nightclub because you have the windows open, they can close the windows and their space would still be adequately ventilated. so the fresh air is not contingent upon the windows being open. >> president bleiman: so i've got a question then. in your paperwork do you make a notation that windows, you know, not to complain, but the windows are open -- because a lot of people do thinking that with their windows open they're not supposed to hear the club across the street. >> i mean, that's something that we're happy to add. >> i think that you should add it. >> it's common sense, but i agree with you that a lot of people don't have common sense sometimes. and i don't know how you want to document it, but we're happy to add that as a recommendation that noise mitigation, to just close the windows and turn on
12:03 am
the ventilated air. maybe that's in the addendum and maybe in your disclosure notice. i'm happy to include it. or let us know and we'll happy to include it. >> i am sure that maggie knows how to say it. >> yeah, so you would have to offer that as a potential addition within a motion, just f.y.i. it's not standard commission nor part of our staff recommendations. i do have gina on facetime here. so here you go. >> hey, guys, i know that you were desperate to hear from me. what is the timeline for actually being rented? what year are we talking about rentals being processed in the building? that's the first question. and, secondly, you guys have been great to deal with, honestly, you have reached out and you've been very receptive to our statements. and as business owners in the neighborhood, this could be 500 new club-goers, yay, or 500
12:04 am
complainants too. so as suggested by lily, it would be great if there was some kind of line of defense against club owners that, you know, renters were instructed to reach out to the management company if they were having noise, you know, issues with the neighborhood or other issues with the neighborhood -- the traffic or parking or who knows what else. and then the management company would have some sort of dialogue that was, you know, in the entertainment district, this is all disclosed, so that these people aren't immediately calling police or calling entertainment commission and creating a lot of, you know, something for us as venue owners to deal with. so i feel that some stops in there where you call the company and maybe it's at three complaints and then it's
12:05 am
escalated -- just something so we don't have 244 units taking up the city's time and, therefore, like, you know, taking up our time moving into a neighborhood where we are, you know, we were here first and this is where we make our livi living. >> i have a response to that. as those impacted by the covid-19 pandemic, so have the real estate. so we're on a timeline but as far as commencing construction, our fingers are crossed and we're hopeful that things get back to normal within the next 12 months. so that does happen our earliest commencement of construction would be towards the end of next year and then a two-year construction period and then a one to three-year lease up. so the earliest that we'd see people living in the building is probably four years from now. if, again, this means that things get back to normal in a
12:06 am
year or so in the apartment markets and in the economy. with respect to -- i mean, i -- i wish i had an answer, you know, as we operate and manage a lot of properties and we have the same problems, you know. they'll call us, something is broken and your neighbors are noisy and they call the property management company and let us try to help you -- it's very hard to control every single tenant. but we could collaborate with you guys if maybe the entertainment commission could create a clearing house, a first responder type hotline for noise, we could definitely push -- >> it's called 311. [laughter]. >> yes, you know, adding the fact that we have closed windows, and recommendations to mitigate noise, whatever you guys -- all of these things we support. we don't need -- we want -- i
12:07 am
think that dialogue is always better than conflict. so if you guys could help us, we'll definitely those us into our leases and rules and regulations. >> president bleiman: got it. dylan, anymore public comment? >> clerk: there is none. >> president bleiman: i'll close public comment for this. and next i'd ask director wylan to have staff recommendations and could you go through what the recommendations are. >> absolutely. so they are pretty technical. (please stand by)
12:08 am
>> those are the staff recommendations. did you want to add anything for discussion. >> i want to add you know the
12:09 am
complainants should have windows closed before they make a complaint. it is like with windows open we get complaints. the rating is based on the windows being closed. it should be on the application. whatever they need to let them know when you sign on, don't complain with the windows open. >> what is the jargon to use for their recommendation? do you have any suggestions. >> please repeat that one more time. >> very simple. you know how we get complaints when windows are open they are too loud. the inspector goes and the
12:10 am
windows are wide open and they are complaining. >> the only way for you to condition that is to legitimately require the windows on certain façades of the development are inoperable and cannot open, and we have recommended that in the past. it sounded like the project sponsor was amenable to this. you may want to ask them. >> i want to be clear here. the reason we are in rdr is because of the legislation that president breed passed. that legislation is pretty clear in the disclosures that the ability of our renter and owner to complain or to cause problems if a venue within 300 feet is
12:11 am
acting with in -- compliant is extraordinary limited. >> i would be contrary within the fact that anyone has the right to complain, submit a complain to 311. it is within our staff to figure out if they signed the disclosure to use within the argument that he may be a nuisance. >> maybe it would make sense we could ask in the disclosures of the project sponsor they could provide a framework for how to handle noise. if there is noise, first thing to do is close windows. >> the other thing i will note around us going out to test
12:12 am
whether a place of entertainment is in complains when someone is complaining nearby. this area is very hard to test compliance with because of the sheer fact there are so many poes within one area. >> maybe we say can you add your disclosures the process for noise. the first thing is to close windows and turn on central air or whatever it is. >> i think in the disclosure we would be amenable to conditions that every at building has rules and regulations no dogs over 30 pounds. we could recommend the rules and recommendations would include the elements, economic all al -k windows, call 311. we can put that in rules and regulations versus disclosure.
12:13 am
>> maybe we say add to the rules and regulations prior to making a noise complaint to please close all windows. >> yes, second call 311. >> i am trying to cut back on some of the, you know, extra stuff. put that in there, that would be great. >> commissioner thomas. >> just i think 311 is appropriate. i think also what some of the venue owners were asking for was a more direct line of communication. instead of going to 311 and entertainment commission, residents are directed to call management about sound complaints and knowledge -- andg
12:14 am
management main continues the line. if none of the venues were operating that night you have a different issue and it is not a noise complaint. >> i am hearing in the rules and regulations prior to making noise complaint check windows and the proper way to make the noise complaint is first to contact the property manager in your rules. >> i would prefer that, too. happy to do that. >> did you have something? >> it is important to get the language right. this will be written as a condition of our approval. >> help me with that. >> well, you have got to say it. i think you are close. eric, if you could give us the language around the rules and
12:15 am
regulations that i am not super-clear on. is that something the tenant receives upon signing the lease? >> all attendees. >> all participants is fine. >> all panelists. noise issues.
12:16 am
check all windows and openings. [ inaudible ] >> i will go on record and say this is the weirdest hearing we have ever had. >> you can play with that as you want and add in this order, this priority. incorporate rules and regulati regulations. it is a standard preference to the document. >> the next course of action would be one of us to make a move to require this be incorporated into their rules and regulations?
12:17 am
>> yes, i would potentially if we were to adopt this just staff side, i would flush out these a little further. advice the tenant check and secure all outside windows and openings. untwo. contact property management prior to other complaint outlets. >> at some point can i talk? can someone let me know when there is a break? >> break. go ahead. >> i really think we are getting in the weeds. i think this is really problematic when we put structure how the public can make a complaint. they just need to deal with it. what we could do is provid is pe
12:18 am
instructions to 311. ask person are windows open. our staff could do the same. we are getting kind of weird putting together this structure. we are way in the weeds. >> we have no teeth when it comes to asking that of tenants. >> i understand, but i think we are asking a level of detail that frankly people are not going to read this paperwork when they move in. i think if you are moving there you are moving for nightlife. i don't anticipate a problem. if it occurs, i don't think they will pullout a 30 page document and say i need to shut windows. if you want it that is fine. we are spending a lot of time on something that can be hard to
12:19 am
articulate and getting evasive. that is my opinion. >> if only reason why it became an entertainment corridor because of situations like this. this is a big unit. this is 200 units in that little neighborhood, which is the biggest ever coming in. eleventh street was built on protecting those clubs. >> i am not disagreeing with you. i am suggesting the solution does not solve the problem. i am questioning this language issue. i don't see it solving the problem. i think part of our industry we have learned there is abuse and complaints. this is not going to solve that. i am convinced that well educated people will move into this building for the exact
12:20 am
intent to be in this environment. that is what makes it very attractive. >> commissioner thomas. >> i think you are both right. i think that people probably will leave windows open and complain about the noise. we have to deal with that the same way we always have. what is more important to me is ensuring there is good communication between building management and the venues and that is residents have some way to raise concerns that is short of engaging 311 and the entertainment commission. if they do that, that is fine. i would like to have a first line of defense and some communication. i feel like that doesn't necessarily need to be part of the conditions as that needs to be something building management
12:21 am
wants to do. >> i tend to agree. i don't think we are forcing people to do anything. we are asking the project sponsor to put specific language in their policies to ask that their residents make sure they close windows if they hear noise. they would prefer or would recommend to reach out to the building manager to sort it out. i totally agree with you. it is a slippery slope to tell people what they can and can't do. we are asking the project sponsor to offer a best case solution. i am sorry best practice. i don't think we should get too specific. i don't think we should really like lay out exactly what the project sponsor needs to do. i think in this neighborhood specifically because this is the highest concentration of nightclubs we have anywhere that
12:22 am
we should ask them to include in their regulation language saying the preferred method is first make sure windows are closed. second immediately contact the building management to help mitigate the issue. that does not tell them that it is forbidden for them to call 311 or police or anything they want to do. at least the project sponsor is in line and asking them to mitigate that. does that help address the concerns you had commissioner falzon. >> iowan to heai do want to heae language. >> i think we can look at the project sponsor's language that he had. i am not sure where we put it.
12:23 am
i have trouble finding it. something like we would -- the motion with staff recommendation as well as and then add what the project sponsor said. eric, i cannot see what you wrote. if somebody could that will be helpful. >> applicant shall incorporate into the standard rules and regulations protocol for noise. one, advice check and secure all windows and openings, three contact property management and three call 311. >> perfect. >> if that is the motion i will second it. let's do it. >> i will put it out there. >> i will second it. >> we have three people.
12:24 am
commissioner to thomas has something to say. >> i will make a motion we accept the staff recommendation with the added language that the applicant shall incorporate into the standard rules and regulations a protocol for noise advice tenant check and secure outside opening, three contact project management and three call 311. >> motion is out. did you want to second that commissioner falzon. >> i love it. i second it. >> public comment is closed we can vote on this. >> thank you, commissioner thomas. >> commissioner lee. >> yes. >> commissioner perez. >> aye. >> vice presidentca mean no.
12:25 am
>> aye. >> commissioner thomas. >> aye. >> commissioner falzon. >> aye. >> commissioner tang. >> aye. >> president blieman. >> aye. >> thank you for coming in. we appreciate it. you did a fantastic job reaching out to the neighborhood. we appreciate that. >> we do want to say thank you to all club owners. they are accommodating and cooperative. we got it done over one weekend. >> thank you so much. >> all right. this is now the final agenda item 7. commissioner comments and questions. anybody have something to say? commissioner thomas. >> i couple of things.
12:26 am
this is a very strange time but i am acutely aware of the nightlife that we have lost. i am proud to wear my san francisco t-shirt and recognizing the stud and other venues that we have lost. i know it is a hard time for everyone. also, recognizing the folks who work in the nightlife industry. i have been so happy to see the work of the queer nightlife fund-raising money for those working in nightlife. i encourage people to donate to the various go fund mes for bar and venue staff. recognizing how hard it is out there for folks in the industry. i am really eager to be back in
12:27 am
live music venues. i have a feeling it is going to be a long time coming. i really miss it. that is it. >> commissioner perez. >> i wanted to officially say welcome to the commissioner tang, urban planning representative. we are looking forward to working with you. best wishes to you. >> thank you so much. >> i will close it out here. one thing i did not mention all the hard work that vice president c a.m.i. mong put in. please accept my apologies. she is working on these things. i got flustered. this is my first web exehave done. i want to welcome commissioner tang. you asked for -- commissioner
12:28 am
wang. you asked what it is like. i would say i think the seat you hold is important going forward. i think we are going to see massive changes in urban planning in the next two years. i hope we do and it is driven and we can get into the planning side and zoning side to help us and guide us. we are excited to have you. it is a long time coming. thank you, staff, extra times. what a fun meeting to preside over. this is great. any public comment on our comments or questions? >> no callers. there is something here. thanks everyone. now to try to survive the next four years so we can get these
12:29 am
people into clubs as guests. thanks for the work you have been doing on our behalf. >> with that we will officially adjourn the meeting at 7:21 p.m. today. i hope to do this again soon. >> thank you. stay safe.
12:30 am
>> i am miguel bus bustos this d this is meeting for june 16, 2020. i welcome the members of the public streaming or listening via by phone and live and to the staff who have helped to make this meeting happen this afternoon. following the guidelines set forth by the local state officials during this health emergency, the members of the commission are meeting remotely to ensure the safety of everyone, including the members of the public. so thank you all for joining us. madam secretary, please call the first item. >> clerk: thank you, mr. chair. the first order of business is item 1, roll call. commission members, please respond when i call your name. commissioner brackett.
12:31 am
present. commissioner scott. here. vice chair rosales is absent. and chair bustos. here. and all members of the commission are present. and item 2 is announcements. a, the procedures. please be advised that a member of the public has up to three minutes to make public comments on each agenda item unless the commission adopts a shorter period on any item. viewers online will be instructed to dial 1-(888)-557-8511. and enter the passcode 7500645. followed by the pound sign. press the pound sign again to enter as a participant. and again that number is 1-(888)-557-8511. and then enter the access code which is 7500645. press pound and then pound again
12:32 am
to enter as a participant. the members will show up on the screen during each public comment section. when you are connected listen to the instructions and when prompted dial 1, and then 0 to be added to the queue to speak. you'll be lined up in the order that you dial 1 and 0. and you will be placed on mute and it will notify you when it's your turn to speak. all callers will remain on mute until their line is open. everyone must account for the time delays and speaking discrepancies between the live coverage and streaming. it is best to call from a quiet location and speak clearly and slowly and turn down your radio or phone to avoid feedback. and item 3, actions at a previous cloagzed session meeting, if any. and the next order is matters of unfinished business. there are no matters of unfinished business. and the next order of business
12:33 am
is matter 5, consent and regular agenda. first the consent agenda. 5a, approval of the minutes, regular meetings of may 19, 2020, and june 2, 2020. and 5b, authorizing the executive director to enter into a memorandum of understanding with the city and county of san francisco controllers office for financial systems accounting and audit supports on an ongoing basis in an amount not to exceed $245,000 for fiscal year 2020-2021. and in an amount for future years subject to appropriation discussions, resolution number 11-2020. and 5c, the director to execute a memorandum of understanding for the san francisco planning department for design review and environmental review services and subject to annual appropriation of funds. discussion, resolution number 12-2020. mr. chair.
12:34 am
>> chair bustos: do we have anyone from the public that wishes to speak on this item? >> your conference is in question-and-answer mode to summon each question press 1 and then 0. >> clerk: at this time the members of the public who wish to provide public comment should call 1-(888)-557-8511. and enter access code 7500645. followed by the pound sign and then pound sign again. when prompted press 1 and then 0, to be placed in the queue. let us know if there's callers on the line. >> there are no callers on the line at the moment.
12:35 am
>> clerk: and there are no members of the public to comment on this item. >> chair bustos: so hearing there's no request to speak on this item i close public comment. commissioners, these items are routine business items that are coming before the commission and that's why they're on consent. may i get a second -- a first motion to move these items? >> yes. i move that we would move on the item and approve of the minutes that were read. >> chair bustos: thank you. >> i second the motion. >> chair bustos: thank you, commissioner. madam secretary, please take roll. >> clerk: commission members
12:36 am
please announce your vote when i call your name. commissioner brackett. aye. commissioner scott? yes. vice chair rosales is absent. chair bustos. yea. the vote is three ayes and one absent. >> chair bustos: great. madam secretary, the motion carries. please call the next item. >> clerk: the regular agenda 5b, authorizing the executive director to enter into a memorandum of understanding with the city and county of san francisco's treasure and tax collector's office to perform investment funds held by trustee not to exceed $35,000 for fiscal year 2020-2021. and in an amount for future years subject to appropriation. discussion and action resolution number 13-2020. madam director.
12:37 am
>> thank you, madam secretary, and to the chair, this item before you is also a routine item where this is a first time to bring an item like this in front of you, the m.o.u. in partnership with the treasury and tax collector's office. and the treasurer and tax collector's office is the city's banker and we typically hold funds within the treasurer's office as well as by the trustee. and the treasurer's office is responsible for investment of all funds in the city's pool. we actually have bob shaw, the chief investment officer, on the line and available for questions if you have any. and because we've held the funds, we also hold our funds with o.c.i.'s instructions for within that fund. the treasurer's office has done an amazing job with the funds on hand in the pool that would like to actually invest not just the funds within the pool funds but
12:38 am
also funds held by the trustee. so what you have before you is a year contract and to see this ongoing up to 35,000 full investment management services, plus with (indiscernible). and also on the line as well is my deputy director of finance and administration with respect to questions. and so is bob shaw, the chief investment officer for the city and county of san francisco. and we really appreciate their service as well. >> good afternoon, commissioners, i am the deputy director for finance and administration. and the executive director said that we're here today to talk about an m.o.u. with the treasurer tax collector's office and as the executive director mentioned we hold our funds in two places. some are the less restricted
12:39 am
taxes are held with the city pool and they are invested with the treasurer and the treasurer has done a fantastic job with those funds. we earned in the fiscal year 2019-20, we earned multiple million dollars of investment earnings to now spend on projects. we'd like to apply that same success to the funds that are held in trustee, funds that are held in trustee are generally more -- legally restricted funds such as bond proceeds or pledged property tax. and we would like the treasurer to invest for us as well. and i should mention that we do have an existing m.o.u. with the treasurer that the commissioner approved in 2014 and it's under that authority that the
12:40 am
treasurer invests the funds in the pool. so what we're here today to talk about is an additional m.o.u. that would extend the same investment authority with our funds with trustee. you may recall that in 2014, the commission also approved an investment strategy and the investment strategy is a guidance that the treasurer would use when investing our funds. and our investment strategy prioritizes safety first and then liquidity and then returns. so what that means is that the number one thing that we care about is preservation and capital followed by liquidity which means will the funding be available for use when we want to use them. and then only once we have met those two goals do we think about gaining returns. and so the treasurer will ask under our existing policy that was approved by the commission in 2014 and they'll also act in the permission for each of the
12:41 am
blond documents. and as said, the expenditure for 2020-2021 is $35,000 and that's based on actual cost extended on an estimated blended rate per hour. and that's taking all of the rates for the projects as well as any non-labor costs for systems, etc., and blend it into a blended rate of (indiscernible). and the term of the m.o.u. would be ongoing which means that they would be automatically renewed each year and we would work out the costs of m.o.u. on an ongoing basis each year as part of the budget process. specifically the services that is provide side that ocii will provide the cash flow schedule to t.s.s. to know when we thank we need to draw on their funds. they will do the modeling to make sure that the cash is available when we need it.
12:42 am
they will recommend and then actually to direct the trustee to make the transactions and to do the settlement and then they'll also make all of the accounting entries to record all of the security transactions. and they'll also be doing credit analysis, looking at the creditworthiness of all of the investments. and making sure that the proposed investments pass muster with the committee. and as the executive director said, i have bob shaw here who is the chief investment officer from the treasurer tax collector's office. bob, you want to video on and give a wave. >> hi, everybody. i am here to answer any questions that you might have. i think that nadia and bree have done an excellent job on describe wag we plan to do. but i'm here to address any questions that i mighquestion y.
12:43 am
>> chair bustos: before we go to public comment there's someone who is near a window or is outside, if you could please put yourself on mute, that would be helpful. great, thank you. madam secretary, do we have anyone from the public who wishes to speak on this item? >> clerk: at this time members of the public who wish to provide public comment on these items should call -- on this item should call 1-(888)-557-8511. enter access code 7500645. followed by the pound sign. and then pound sign again. when prompted, please press 1, and then 0 to be placed in the queue. an automated voice will let you know when it's your turn to withdraw your question press 1,
12:44 am
and then 0. for any members of the public who were on the phone before this session came up and if you would like to submit your public comment request dial 1, and 0, so you can be placed in the queue. >> your conference is now in question-and-answer mode. to summon each question press 1 and then 0. miss lynn, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. mr. chair, there are no members of the public on the phone that the time wishing to comment on this item. >> chair bustos: okay. just wait a little bit more to
12:45 am
see if anyone wants to speak. hearing that there's no one wishing to speak on this item, i will close public comment and i'll turn to my fellow commissioners for their comments and questions. and let's start with commissioner brackett. commissioner, do you have any qhents or a question? >> commissioner brackett: yes, i have three questions. so my first question is do we know what the aggregate amount of benefits that we received from the 1.9% return that we got on the investment? so what that actually means in dollars? as a percentage. >> i can speak to that, and it
12:46 am
was about $6 million this past year. >> commissioner brackett: okay. and then my other question, was there a previous cost for managing these expenditure funds? if so, what were those costs? >> this is the first time that we're entering into a relationship to actively manage these funds. >> commissioner brackett: so they've just been sitting and holding? >> yeah, they've been held by the trustee up to this point. >> commissioner brackett: okay. and my last question is basically what are the proposed earnings for this fund or is there any kind of projection on what the return on investment would be for managing these funds through t.t.s.? >> well, you know, i think that the treasurer plans to use a similar strategy, so the strategy that they use for the overall city pool, so i think that you could roughly expect the returns to be similar.
12:47 am
but i'll let bob speak to that to provide a little bit more color. >> thanks, bree. i think that the way to think about the -- there's really two questions which is, one is always what's the interest rate that we're going to get? and then what are the cash earnings? the environment has changed dramatically over the last year, if you look where the interest rates are right now and what we would be able to get in the market, that 1.9% that you saw over the past 12 months and going forward is not attainable in the market. we're probably somewhere -- depending upon -- one of the things that we haven't completely reviewed yet is what that cash flow calendar for these bond fund says going to look like. in other words, how far out -- how long of a maturity can we invest. and if it's outwards of one to two years, then we're probably
12:48 am
talking -- sorry -- just about to go into jargon -- talking about half a percentage point in terms of yield as opposed to 1.9%. a lot of what has happened in the market in the last six to nine months as the federal reserve has taken interest rates from close to 1.5% to 2%, to closer to 0% right now for the u.s. treasuries. so my estimation of where the yield on the pool funds that we're looking at here is between 50 and 75 basis points. that's my upper end estimate, but, again, once we get the cash flow calendars, we'll know more. >> commissioner brackett: and then lastly, about how much of our -- or what is the aggregate total of the amount of funds that we're talking about? >> it is about $350 million. >> commissioner brackett:
12:49 am
okay, thank you. that's all. >> chair bustos: great, thank you. commissioner scott, do you have any comments or questions? >> commissioner ransom-scott: no questions. just the comment to thank bree and bob and for your questions you have really satisfied -- i have no other questions. but thank you for the report. >> chair bustos: thank you, commissioner scott. is commissioner rosales on the line? has she joined us yet? all right. just want to echo commissioner scott and just thank the staff for providing this presentation. i think that it's a good step in the right direction. and i'm glad that we have our city family helping us to manage these funds. so with that, i will need a motion and a second. is there a motion? >> yes, i motion that we
12:50 am
authorize the executive director to enter into a memorandum of understanding with the city and county of san francisco treasurer and tax collector's office to perform investment services for ocii funds held by trustee in an amount not to exceed $35,000 through fiscal year 2021 and amounts for future years, subject to appropriation resolution number 13-2020. thank you. >> chair bustos: thank you, commissioner brackett. >> second that motion. >> chair bustos: thank you for seconding it, commissioner scott. madam secretary, please take roll. >> clerk: please announce your vote when i call your name. commissioner brackett. commissioner brackett? yes. commissioner scott? yes. vice chair rosales is absent. chair bustos. yes. mr. chair, the vote is three ayes and one absent.
12:51 am
>> chair bustos: great, thank you. motion carried. madam secretary, please call the next item. >> clerk: agenda item 5e and 5f related to the budget approval will be presented together but acted on separately. item 5e approving a budget for the period july 1, 2020, through june 30, 2021, and authorizing the executive director to submit the budget and ratifying and confirming the executive director's submittal of the interim budget to the mayor's office and the board of supervisors. discussion and action resolution 42020 approving a budget for community facilities districts administered by the successor agency for the period july 1, 2020, through june 30, 2021. discussion and action, resolution number 15-2020. madam director. >> thank you, madam secretary. i appreciate, through the chair, i appreciate that we have an opportunity to come back to you.
12:52 am
if you recall last commission meeting we were before you to give an overview of our budget. and we got some feedback where the budget that would be presented before you doesn't have much changes so this is really a recap. but i wanted to also take the opportunity to just kind of highlight what our driving force is in terms of creating new inclusive neighborhoods and shipyard (indiscernible) and that the budget before you reflects an acceleration of the production of new housing which includes both market rate and affordable housing. it requires the investment in disadvantaged and at-risk communities. so funding for low-income families and public housing and seniors, homeless, including then creating not just low-income family, but low budget services. and creating new public infrastructure and open space and prioritizing the
12:53 am
connectivity and the ability for resilience and showing that we are building design, neighborhoods, transportation networks and environmentalally conscious infrastructure. and also includes the recognizing of the opportunities for local businesses and workers. we continue to strive for the participation of low workers and businesses in all of our projects. we use low-cost public financing to identify the long-term financing for affordable housing, infrastructure and open space projects. and we also have a majority of our portfolio that include investments in the value of our employees, making sure that we support employees' health and safety and wellness and professional development. so with that, i will turn it over to mina to present on the budget. bree, myself and all of the project managers are available to respond to specific questions. so thank you for that. nina, are you ready to present
12:54 am
on this item? >> yes. thank you, director. good afternoon chair bustos and vice-chair rosales and members of the commission. i am the financial reporting and management analyst for ocii. and i'm here to present on our budget action items. next slide. and so again there are two action items before you today. the first is to approve the agency budget for the fiscal year 2021 and the interim budget which is a prorated amount based off of the budget to cover the period of the end of fiscal year 2019 life 2020 to the approval of the budget. and the second the approval of the facility budget. next slide. so we were before you two weeks ago presenting the workshop on our budget items.
12:55 am
and as the director mentioned there's no substantive changes and so this reflects the budget presented at the workshop. next slide. and so our 2021 budget is $527.3 million. and the primary sources are a prior period authority, property taxes, and fund balance. next slide. and so this table shows our budget broken up by our uses which are project managers went over in detail at the workshop presentation. again, the majority of our funds will go towards the construction of infrastructure and affordable housing projects. next slide. and so this table shows a year-over-year comparison by our sources for the 2019 budget. our 2021 budget is a
12:56 am
$5.9 million increase. and this is primarily driven by an increase in the property tax collections and drawing upon our fund balance, issued bond proceeds and property taxes collected in prior years. this is slightly offset by our bond issuances and our existing housing loans. next slide. so this table shows our -- a comparison, a year-over-year comparison by uses. you can see that the majority of the decrease is -- the increase is due to the mission bay developer reimbursement and with our multi-year construction budget. next slide. so this table shows the impact of our 2021 budget on our estimated cash on hand. so we expect to draw upon $274.9 million through the use of our fund balance and prior
12:57 am
period authority. so this will result in our cash on hand balance of $334.5 million at the end of fiscal year 2021. next slide. and so this is just a summary of our budget by our project area. and our affordable housing costs are incorporated into our three major project areas. and then our non-project costs primarily reflect the debt service -- or the debt portfolio costs. next slide. the summary of our agency's budget, again the total is $527.3 million which is an increase of $5.9 million or a 1.1% increase from the 2019-2020 budget and our estimated cash on hand will be about $334.5 million at the end of fiscal year 2021. and then we went into detail on our operating budget at the workshop and this was -- this is
12:58 am
$26 million or 3.9% of our total agency budget. and we have positions unchanged from the current year. we will also be making six new affordable housing loans for construction loans and for predevelopment loans. we also issue one new bond for the infrastructure reimbursements. next slide. so you will also be taking action on our budget and so we administer seven c.f.d.s or community authority districts and these are special taxing districts approved by the voters in the district, and the taxes collected in these are used to operate and maintain and repair the parks. these are separate entities from ocii and their budget is not separate from the board approval but the commission does act as a legislative body. so these are estimates.
12:59 am
and in august we will confirm these amounts with the confirmation of the special factors. next slide. so, again, we have seven c.f.b.s which we estimate a tax levy of $18 million. we've issued bonds in three of these for infrastructure reimbursements. we'll be paying $11.4 million for debt service on those three bonds and there's about $176.2 million outstanding on these bonds. next slide. and so again the two action items before you -- the first is approving a budget for the period july 1, 2020, through june 30, 2021. and authorizing the executive director to submit the budget and ratify and confirm the executive director's interim budget to the mayor's office and the board of supervisors. you'll also be approving a budget for community facility district and administered by the
1:00 am
agency a period of july 1st through june (indiscernible) 2021. next slide. so we're here today presenting the action item before you today. we'll be submitting these budgets to the mayor's budget office by july 1 and then the board of supervisors by august 1st. and as the director mentioned we have all of our project managers who are before you a couple weeks ago, along with our deputy director of finance to take any further questions. thank you. >> chair bustos: great, thank you. madam secretary, do we have anybody -- anyone from the public who wishes to speak or provide a commenta on this item? >> clerk: at this time, members of the public who wish to provide a public comment on these items should call 1-(888)-557-8511. and enter access code 7500645.
1:01 am
followed by the pound sign. and then pound sign again. when prompted please press 1 and 0 to be placed in the queue. an automated voice will let you know when it's your turn and to withdraw questions press 1, and then 0 again. >> your conference is now in question-and-answer mode to summon each question press 1 and then 0. >> clerk: we'll allow for a few moments.
1:02 am
>> madam secretary, there are no callers on the line. >> clerk: thank you. mr. chair, at this time there are no members of the public on the phone wishing to comment on this item. >> chair bustos: okay. hearing no request to speak on this item i close public comment now. and i'll now turn to my fellow commissioners for their comments or questions. let's start with commissioner brackett. commissioner, do you have any questions or comments? >> commissioner brackett: i do not at this time. >> chair bustos: okay. commissioner scott? do you have any comments or questions? >> commissioner ransom-scott: i do not. thank you. >> chair bustos: thank you. and commissioner rosales, has she joined us yet? >> vice-chair rosales: yes, i have. >> chair bustos: commissioner rosales, welcome. commissioner rosales is with us. vice-chair rosales is with us. do you have any comments or questions regarding this matter?
1:03 am
>> vice-chair rosales: no, no, i don't. we went through all of the questions that i had in the workshop last time. >> chair bustos: great. thank you. yes, i agree. thank you for -- i want to thank the staff for, one, handling these two items and i'm thrilled that we'll be able to present our budget and our item to the mayor's office in kind, so i wanted to thank everybody for that. so i will need a motion for each of the two action items. we will vote on each item separately. so for item number 5e, may i get a motion? >> yes. mr. chair, i move that we approve the budget for the period of july 1, 2020, through june 30, 2021 and authorizing the executive director to submit the budget and ratifying and confirming the executive
1:04 am
director's submittal of the interim budget to the mayor's office and the board of supervisors, [discussion and action], resolution number 14-2020. and approving a budget for the community facilities districts administered by the successor agency for the period july 1, 2020, through june 30, 2021, [discussion and action], resolution number 15-2020. >> chair bustos: okay. may i get a second? >> i second the motion to approve the budget for july 1, 2020, through june 302021 and approving the budget for the c.f.d. for the same period in time. >> chair bustos: we'll take two separate actions. madam secretary, please call the roll call for agenda item number 5e. >> clerk: thank you,
1:05 am
mr. chair. commission members, please announce your vote for item 5e when i call your name. commissioner brackett. yes. commissioner scott. yes. vice-chair rosales. yes. chair bustos. yes. mr. chair, the vote is four ayes. >> chair bustos: thank you. item 5e, the motion carries. now i'll need to get a motion for 5f, and may i go back to commissioner scott and commissioner brackett for their votes? >> clerk: i believe they have made that motion. >> chair bustos: okay. so madam secretary, please take roll for item number 5f. >> clerk: commission members, please announce your vote for 5f when i call your name. commissioner brackett. yes. commissioner scott? yes. vice-chair rosales. yes. chair bustos.
1:06 am
yes. mr. chair, the vote is four ayes. >> chair bustos: thank you. the motion carries. madam secretary, please call the next item. >> clerk: the next order of business is item 6, public comment on non-agenda items. mr. chair? >> chair bustos: do we have any speaker cards for this item? >> clerk: at this time members of the public who wish to provide a public comment on these items should call 1-(888)-557-8511. and enter access code 7500645. followed by the pound sign. and then pound sign again. when prompted please press 1 and 0 to be placed in the queue. an automated voice will let you know when it's your turn and to withdraw questions press 1, and then 0 again. >> your conference is now in
1:07 am
question-and-answer mode to summon each question press 1 and then 0. >> clerk: for any callers that are already on the line you will want to submit a public comment and then press 1 and 0. >> madam secretary, there are no callers on the line. >> clerk: thank you, miss lynn. mr. chair, at this time there are no members of the public on the phone wishing to comment on this item. >> chair bustos: okay. hearing no requests to speak on this item, i will close public comment. madam secretary, please call the next item. >> clerk: the next order of business is item 7, report of the chair.
1:08 am
mr. chair? >> chair bustos: there is no report at this time. >> clerk: the next order of business is item 8, the report of the executive director. item 8a, info memo on the issuance of a request for proposals to develop, own and operate an affordable housing mixed-use project, which will include approximately 250 units of affordable housing for low-income families and seniors, and formerly homeless families and seniors, a child care facility, neighborhood retail, and streetscape improvements on transbay blocks 2 east and 2 west, transbay redevelopment project area. madam director? >> thank you, madam secretary. what you have before you is a proposal -- or offering a parcel for affordable housing development in the project area. the proposed affordable rental housing and retail mixed-use
1:09 am
buildings will provide one, two and three-bedroom units for families and studio and one-bedroom units for seniors. approximately 20% of the both family and senior units and -- sorry, family and senior members will be set aside for formerly homeless individuals. the project will also include a child care facility, retail space and publicly accessible streetscaping improvements. the r.s.p. is currently allowing for it to be consistent with the redevelopment fund and the design for development documents. the project will further the ocii's goals in increasing housing and reducing homelessness in san francisco. and in addition, it would also invite folks to consider the possibility that the site could be rezoned to increase the
1:10 am
height and portions of the parcel and to provide -- for them to provide a narrative describing the instances and the number of units, and the disability analysis and the construction costs and other issues associated with the rezoning. if the commission has an objection to these, they will release the r.s.p. in june and will allow for proposals to be heard in september, understanding that we -- because of covid-related issues we're allowing for that extended period of time. staff will then come to the commission by the end of the year for a selection, a developer selection and in february would come back for the commission to approve the agreement and predevelopment loan agreement. which is consistent with the budget that you would have approved by the end of this meeting today. i have -- i know that we were fortunate enough to get comments and feedback from two of our commissioners that are
1:11 am
reflected. and as usual we have an extensive marketing outreach process. we have tim here to respond to any specific questions that the commission would have. with that i'll pause and i'll wait to see if there's any questions from this item. i do have to two other announcements that i would like to make or see if the commission would have questions on this item. >> chair bustos: are there questions from my fellow commissioners? we need to call public comment, commissioner. madam secretary, are there any speaker cards on this item? >> clerk: at this time the members of the public who wish to provide public comment should
1:12 am
call 1-(888)-557-8511. and enter access code 7500645. followed by the pound sign. and then pound sign again. when prompted please press 1 and 0 to be placed in the queue. an automated voice will let you know when it's your turn and to withdraw questions press 1, and then 0 again. >> your conference is now in question-and-answer mode, and to summon each question press 1 and then 0. chair bustos: madam secretary, is anyone on the line? >> clerk: there are no callers on the line. >> chair bustos: okay.
1:13 am
so hearing no one to speak on this item i close public comment. and i will open it up for any commissioner who would like to ask any questions or make comments on this item. and this is a discussion item so we're not taking any action. >> i had a question for i believe nadia. i know that there's a mention of increasing height limitations to allow for additional housing and i just wanted to get some clarity around that on what is the existing height limitations and how high up future developer or the r.f.p. person -- group that we selected would be able to go up. or what would be an estimated number of units that could be added to this project to make it affordable and to get the maximum number of residents in
1:14 am
that space. >> i'm going to send this over to kim because she's anxious to respond to this. [laughter] we had a meeting last week. and so it was definitely an area of excitement. so, kim -- >> thank you very much. glad to be here. so the existing height limits that are imposed by the transbay and the zoning document for transbay, actually has a staggered height. so along clementina street there's a down townhome segmentt has a maximum of 55 feet. and then it steps up for portions of the site to 85 feet. and at the highest portion of the street along fulsome street and the eastern portion of the project, the height limit is currently at 165 feet. and, yeah, again, just revisiting those height maximums we think that there's a potential to consider a limited amount of increased height on the site.
1:15 am
definitely it would help to improve the project's financial feasibility. certainly, add much-needed housing units. but there's definitely considerations there. and the r.f.p. we have given guidance of no more than 240 feet. we think that for a constructability purposes there's parameters in the building code where we think that it's unlikely to be feasible to build above that height. and we started to look at shadow impacts to the future sites to the north and we wanted to make sure that we're not shading that park in a way that wouldn't be acceptable to the community. >> chair bustos: any other commissioners? >> i have one other question. is the r.f.p. going out for mainly the local providers, or is it a national search? >> so we will advertise it
1:16 am
locally primarily. but certainly open to a national search. we do have -- there's a subscription list and we have our own list through f.p.e.s and organizations that have registered with our contact compliance team, to pest it on the ocii website and, yeah, get out the word as much as possible. >> okay, thank you, that was it. >> chair bustos: great. any other commissioners wishing to ask any questions or a comment? >> yes. mr. chair, i have a question. just thinking -- looking at the impact now of covid upon just the whole nation, our state here, specifically our city, specifically, is there any consideration of what retail owners would have to pay now as opposed to what, you know, it
1:17 am
has been set or any of them. is there a lowering or adjusting to the climate of where we are right now? >> yeah, i think that is a good question. we -- so we don't have a prescriptive breakdown and we instructed applicants to consider a wide range of income levels. i think that they'll really want to tailor that based on what they're seeing in the marketplace about what -- about the income levels on the current properties and perhaps we want to skew a little bit low or this property to allow for changes or anticipated changes in the median income. and what folks are able to afford. so, again, we'll see what proposers come back with and then we won't have to really lock in those income levels for another year now until we start to really looking at funding applications.
1:18 am
and then on the retail side, certainly, there's going to some work done looking at market studies and feasibility and then going to adjust their rent accordingly to make sure that they're attracting tenants. >> thank you so much. >> chair bustos: thank you. commissioner rosales? >> vice-chair rosales: yes, i do. i have a question on the workforce and contracting action plan criteria and how proposers satisfy it and what i want to focus on is my understanding is that the teams can satisfy those requirements and seek to obtain this maximum of 10 points. and with the use of the internal staff rather than to contract out with the consultant. and i would like confirmation of
1:19 am
that and i think that is the way that we have been managing it and assuming that is correct, what are the kinds of internal structures or services that we've seen from other proposers in trying to comply with this criterion through their internal staff? >> go ahead, ray. >> yes, this is for ocii. there is a workforce in contracting action plan that is called out by -- that is required by the developer team. what we ask is that they identify an individual that would be responsible for implementing the plan. and that individual could be either an in-house staff member or it could be a contracted individual as well. what we've seen is that some do hire an outside individual to help the development team to
1:20 am
implement the contracting workforce plan. and under that basis we look at what is being prescribed by the development team in terms of how they plan on executing the reaching s.p.e. goals and working on workforce goals and other matters related to that. if it's an in-house individual, quite honestly, what we've seen in the past several proposals are contracted individuals or consultants to assist the development team. there is a single point of individual within the development team internal that they've identified that is responsible for the plan. but we've seen that much of the implementation has been contracted out. i hope that answers -- >> yes, it does, it does. and as i'm looking more carefully on page 24 i do notice
1:21 am
that it's both in-house or outside -- outside consultant. but it's good to know that there's collaboration between the in-house and the outside consultants to the extent that there is an individual selected on the outside. but that helps the inner workings of the developer team that likely will have good results, not just for this project, but for their future projects. >> correct. we, again, we have seen many of the developers hire an outside consultant assistant because they could use the additional assistance in the contacts that the consultant does have with the community. >> great, thank you. >> chair bustos: thank you, vice-chair rosales. i thank all three commissioners for the questions they posed were very good questions. i want to thank the staff for making sure that we do our best
1:22 am
to make sure that local folks as much as we can know about this opportunity. so this is the discussion item so there is no action, but i want to just commend the staff for putting this together. it's going to be a really great project. it's going to help a lot of families and it's something that we love as a commission. i know that. so thank you so much. madam secretary, please call the next item,. >> clerk: i believe that madam director still had a couple items. >> i do. i wanted to say that we were fortunate to do the first two which will be meetings, one with transbay that kind of blessed this item that you just heard and one with mission bay. we have the first one with -- with next week. so we're all excited. it's been interesting, and i'm
1:23 am
happy that there's an opportunity for more members to participate because of that flexibility. so we're looking forward to it so we have been in touch with them and trying to set them up. and in addition, i also wanted to share with you that the bayview industrial triangle expires at the end of the month. and the development plan. it's also known as the b.i.t., located between third street and fourth street from gerald avenue to fairfax avenue in the bayview hunter's point. it was adopted in 1980 with the objective of preserving and expanding the existing industries. and improving the third street to provide attractive buffer between the community residential and industrial uses. it was set up by the redevelopment agency in the 1980s with grants through the community development programs that were cut by the federal government. but with a limited funding the key plan remained inactive for
1:24 am
much of its life. and ocii maintained a land-use authority over the property in the b.i.t. and approved relatively few entitlements for private development in the area. we have the land-use authority through the end the month as of july 1, the planning commission will resume that oversight of land development in the area. supervisor walton co-sponsored the item. and it will applies to the commercial transit and the land use on properties fronting third street and the production and distribution and repair zoning on subsidies within the industrial areas between third and fourth street. so while we're closing out the b.i.t. over the last three years, it's been very active. the commission has approved three mixed-use housing projects that are currently in pre-development at 4101, 4128
1:25 am
and 4200 third street. and these projects will provide 125 new housing units, 23 of which are affordable housing and active for retail on the portions of the third street in the bayview hunters point. so i know that josé is also on the line and can respond to specific questions. but this is one where there wasn't any public financing but we had more zoning authority and we became very active in the last three years. and then going forward the planning commission will be responsible for it. we are -- i wanted to also just give a quick heads up that the apartments at 1153 within mission bay is nearly all occupied, all but two of the 119 total units. there are 62 veteran units, and then there were -- and then --
1:26 am
then there were other -- the remainder was for family units consisting of one, two, three-bedroom units. we're kind of excited. it was all occupied in may 2020. a lobby for the family as usual and we had 6,700 applicants and the population includes a combination of one for (indiscernible) and one for dpht, and then one for neighborhood (indiscernible) and for the -- 33 for applicants and two units to remain -- the construction site in december 2017 and completed in january 2020. and the developer was (indiscernible) and we expect to bring back to this commission
1:27 am
a marketing out report. so we're excited that at least that unit came online. and we were looking at covid and the shelter-in-place had a thought of long time occupying. and so we have jeff white also available to respond. and pam to respond to specific questions. but more to come in the october meeting where we'll be doing a full report out. so that's it for me. >> chair bustos: thank you, madam director. any questions regarding those two items? >> i did have a question. if pam would be able to -- once they give us the report next month, if she could give us a breakdown of the demographics in terms of the racial demographics of who actually is going to be occupying -- or who leased out for these spaces.
1:28 am
(please stand by) items?
1:29 am
>> chair bustos: hering none, vice chair rosales, anything? >> commissioner: no. >> chair bustos: anything else. >> commissioner: thank you for your wonderful presentations.
1:30 am
>> chair bustos: i don't want this meeting to end without us acknowledging what has been happening in this country around race. you know, the issues of race is not just california or a united states thing. it's been something that's been brewing across the world, the issue of color and how one color matters more than the other. and given everything that's been happening with our black brothers and sisters, i think it's really important for us to acknowledge that and for us as an organization as a city family doing a lot of the work to repair some of the systemic racism that happened during the earlier part of the redevelopment agency with the
1:31 am
races thank god we have a staff. we have a different mind set and we're having to undo the wrongs that happen during those days. and i think we need to take a stand that black lives matter. and black lives are also sacred. and it's not that we're saying others aren't but i think right now there's a community that's under attack and as a city family we have to stand up to that. it hurts that here we are in 2020 having to deal with this but remember there's over 400 years of systematic oppression against this community that we need to fix. we need to undo, we need to
1:32 am
acknowledge. so i would ask my commissioners, if we can, if there's no objection that we adjourn this meeting in memory of not only mr. floyd and breonna taylor but those in san francisco that have been targeted, that have died, that have been hurt because of the racism that is alive and well still even in our own city of st. francis. i think we have to make a stand. without objection i'll ask we adjourn this meeting in honor of all those incredible people that have suffered. hearing no objection from my commissioners, then we will adjourn in their memory and their honor. thank you.
1:33 am
>> commissioner: [indiscernible] >> chair bustos: what was that? ly appreciate our state leaders supporting us during these unprecedented and uncertain times, and thank you to the industry for your support and your continued support and
1:34 am
for coming out with your questions and being certainly engaged in this process. so first i want to thank our esteemed guests today. we have treasury fiona mah. we have state senator scott weiner and senior advisor to the governor, nicole eliot, and i will briefly read their bios for you and then we are going to sort of jump into it. i know we have about an hour. i want to make sure that we use our time wisely. i'm marissa rodriguez, the director of the office of cannabis. we also have eugene hillsman, deputy director of the office of cannabis and jeremy schwartz who is a permanent analyst with the office of cannabis as well. so fiona mah was elected to serve as california's 34th state's treasurer. the state treasurer's office provides financing for schools, roads, housing and other
1:35 am
critical infrastructure projects that better the lives of californians. previously treasurer mah was a member of the state assembly from 2006 to 2012 and prior to serving there, the treasurer served on the san francisco board of supervisors from 2002 to 2006, representing district 4. thank you, treasurer mah for being here. it's so nice to have you and it's so nice to have one of our own as everyone on this call today. so if you'd like to take this time to share with our community your thoughts on what's happening right now and any support for the cannabis community that you'd like to share. >> sure. can you hear me? >> -- our own, everyone on this call today.
1:36 am
so if you'd like -- take this time to share with our community your thoughts on what's happening right now and any support for the cannabis community that you'd like to share. >> sure. can you hear and see me? >> i can. thank you. >> all right. there i am. thank you, marissa, for pulling us all together and for everyone who's on the call who has been staying in touch and keeping in touch and very, very frustrated during this time where the federal government is helping most everybody else except if you're in the cannabis industry, which is not very fair, as we all know. over a year ago i testified in congress on the bill, the safe banking act as some of you remember. it finally did have a hearing earlier. i think it was -- was it when
1:37 am
the democrats took over congress again and it got through the lower house, but it is, once again, stuck in the senate. i know that some have been trying to get cannabis in some of the stimulus packages or assistance, however, because cannabis is still a schedule 1 drug, they are not eligible for many of the assistive programs that are coming out of the federal government. however, california is a little different, as we all know. not only in california can you deduct your ordinary and necessary business expenses against your income, unlike at the federal level, but we have really tried to move this industry forward the best that we can, at least here in california. so many of you, all of you, should be paying your tax, your sales taxings to the california
1:38 am
department of fee administration. there was a 90-day deferral on paying and filing your first quarter sales tax return. in addition, if you do need working capital, you may qualify to take a $50,000 loan and defer payment on a year. your annual sales revenues have to be less than $5 million, so that may not pertain to some of the bigger companies, but some of the smaller companies may be able to take advantage of this. and you need to call the california department of tax and fee administration and register for this program. again, it is interest free, $50,000 loan for up to a year, and you need to call sdtfa to figure out and sign up for their instalment plan. so unfortunately that's kind of
1:39 am
the only program that is related to some sort of relief for the cannabis industry. the i-bank also has put money into a loan loss reserve for [indiscernible] however, the only way you will be eligible for that money is if your bank is accepting cannabis clients, and i know there's probably close to two dozen banks now in california that have legally applied to take cannabis clients on, so you all know who you are out there. but definitely check your -- the and see whether your participating lender participates in that and you may be eligible and qualify to get certain loans from the i-bank. so that's about all i have to report right now, and i will be here for the duration to answer any questions you may all have. >> thank you, fiona.
1:40 am
we certainly appreciate your leadership, your unwavering support of the cannabis industry. you were instrumental in this webinar happening, so i thank you for that. we are live here at the emergency operating center for the city as we put this webinar out to our community. again thank you everyone for tuning in. next we have our senator, state senator scott weiner who was elected in november 2016, senator scott weiner represents district 11 in the california state senate. district 11 includes all of san francisco, broadmoor, daily city and portions of south san francisco. the senator helped to champion compassionate cannabis care programs by introducing senate bill 34 which was approved by the governor in 2019. prior to his election to the state senate, he served on the board of supervisors
1:41 am
representing district 8. thank you and happy to have you on the call, senator. >> thank you very much for -- excuse me, for having me, and hello remotely to treasurer ma and to nicole. and hello, i'm sorry to be here by phone, but i hope you can hear me okay. hello to the entire cannabis community. we're going through some really hard times right now as a community, and we all need to look to the light at the end of the tunnel. we are going to get through this, and our goal needs to be that when we do get through it we can get both individuals and businesses back up on their feet, and so a lot of the work that we're doing right now is just to try to preserve the status quo, to keep renters stable in their homes so we don't have mass evictions,
1:42 am
either now or after the worst of the emergency when people have massive back rents that they are expected to pay right away. we don't want that. we want to make sure that we're stabilizing people, and we want to make sure that we're stabilizing businesses in their spaces, and non-profits, so that we don't see permanent mass closure of small businesses and non-profits, and so we're working on a few pieces of legislation. on the residential side i'm working with someone on legislation to protect renters and i'm also offering legislation that's 939 to try to stabilize small businesses and non-profits in their retail and office spaces by saying no moratoriums -- or no evictions, and we're going to have to deal with how we look at back rent. and then we're going to have to particularly for hospitality businesses, like restaurants and bars, that when they do reopen
1:43 am
we will be required legally to have much lower capacity so that their business model no longer matches up with the rent in their lease, and we're going to need to address that as well. so we are working on these issues. specific to cannabis, we all advocated successfully in san francisco, and i know in other places it happened -- not everywhere -- to classify cannabis as an essential business, and that was a real win. and i'm glad that it happened. but i know that the industry is really struggling right now, like all small businesses are. and in particular not being eligible for the federal small business loan, forgivable loan program. i know that's a huge hit and just one more example of the
1:44 am
irrationality of our federal law. can't get any of these benefits. it's not okay. in terms of the legislature this year, we are going back into session. we've been in recess for about six weeks due to the pandemic. the assembly returns to session on monday. the senate returns the following monday, on may 11, and we will be pursuing a more limited policy agenda this year around covid-19, of course, but also around some of the highest priority areas, like housing and homelessness and mental health, addiction, wildfires and so forth. and so we're all reducing the number of bills that we have and making them much more focused. i don't know that this year is going to be a big year for cannabis. i know there are some bills that
1:45 am
have been introduced, and i'm sure that some things will happen, but i was hoping that this year we would be able to, you know, finally pass the tax reductions, you know, the tax -- the state taxes are too high and are i think really stifling the industry and encouraging the elicit market. so that's something we have to address. weren't able to get it done last year. and then we have to deal with the issues of cities just effectively banning cannabis, and big swaths of california where it's effectively illegal, and so -- but i'm not confident that either of those are going to get resolved this year because just of everything that's happening. but stay tuned. we'll keep working, and again, thank you to everyone for all you do. >> thank you, senator. we really appreciate that, and we certainly appreciate your
1:46 am
continued support of the industry as well. certainly difficult times, unprecedented times. there is no one who's immune to this, and we certainly appreciate that, and also appreciate the fact that we are deemed essential during these times. but you know, still, there's a huge impact and we want to see what ways and how we can support the industry to get through this. so thank you and we appreciate having you on this call. next we have senior advisor on cannabis to the governor, nicole eliot. we know nicole very well, and we are so appreciative that you could take this call today. ms. eliot serves as governor's senior advisor on cannabis. prior to her current post, she was appointed san francisco's first director of the san francisco office of cannabis where she helped to set up cannabis's regulatory framework and permitting process. she has worked in a number of capacities with city and county -- with the city and
1:47 am
county of san francisco, including stints as a deputy board liaison and director of legislative and government affairs in the mayor's administration. thank you for being here. this community really values you and appreciates that you are willing to talk to us during these hard times. >> sure, always happy to have these conversations, and really happy to be back with my bay area family. thank you for putting this together and for treasurer ma as well, for facilitating the creation of this. a lot has happened since i've left. first and foremost, i had a baby. >> congratulations. >> thank you! my first day back was the first week of the shutdown, so it's been a really interesting transition back to the work environment, but we really hit the ground running starting with
1:48 am
obviously deeming cannabis -- commercial cannabis as essential for the state of california, and since then have really been working with our licensing agencies, our partner agencies, like the treasurer, like cdtfa and others in trying to determine what we can do within the current framework and our current constraints to provide support for the industry, whether that be from a tax relief standpoint, which the treasurer really outlined in her opening comments, as well as from regulatory standpoint, and i'm sure some of you are very familiar with some of the regulatory relief that has been extended by your licensing agencies. so trying to figure out what we can do to be as helpful as we can sort of in the immediate term and figuring out what we can do in the long term to support what will be recovery, but i will quote the governor when i say that these are very sobering and challenging times.
1:49 am
we started this year with a multi-billion dollar surplus, and as he stated in his press conference today, we will enter the may revised with multi-billion, tens of billions of dollars to cuts. so it's a tough time for everyone. i think senator wiener really expressed the challenges that the legislature will be faced with when working through the budget, that there are a lot of priorities that we really sought to tackle this year, and on the cannabis side you guys are all familiar with those priorities, tax simplification. the governor clearly indicated a willingness to talk about the structure of tax and whether or not there should be a reduction, either permanently or temporarily, as well as consolidation. and so that's all being impacted by the environment that we find ourselves in now. so i look forward to addressing your guys's questions today.
1:50 am
again, i'm really happy to be here and happy to chat with you guys, and of course this is always an ongoing conversation. >> thank you, ms. elliot. i appreciate that. i want to jump in because i want to be cognizant of time here. i want to let folks know that, one, first of all, thank you for emailing in with your questions. they are really thoughtful, and they -- they are thoughtful and they span a lot of different categories, and so we broke them down by way of taxes, regulatory structure, compassion, unregulated market, the pandemic and banking. we have some general questions, we have some local questions. because i have the privilege of being able to be in touch with our community more regularly, i will leave the local questions to the end. if we have time, we will address them. otherwise we will send them out in a response separately. but we are going to start now,
1:51 am
and the members of our team will take each section and questions just to keep it a little bit more lively so you're not just listening to me the entire time. again, we are reporting -- we are live here from the emergency operating center here in san francisco where city employees in san francisco are keeping the lights on during this unprecedented time. and i'd like to start with the first question, and all three of you, feel free to answer this one. with the current lack of banking, covid relief opportunities for the cannabis industry are severely limited at the federal, state and local levels. while we recognize the legislature is tasked with the economic health of california, we would like you to talk about efforts under way by the legislature that would specifically address economic relief for the cannabis industry and the likelihood of those efforts being realized in the short term. we'll start with the first section of this question, which is what is being done at the state level to move forward equality for cannabis
1:52 am
businesses, specifically in regards to access to covid stimulus relief, lowering the overall tax burden, access to banking, and market rate commercial loans? and i know that the three of you did touch on some of this in your opening remarks, but if you could again just kind of share with our community just your thoughts and your feelings on this point. we can start with fiona ma -- pardon me, treasurer ma. >> that's okay, call me fiona. anyway, as you know, this has been a big priority for me, trying to get banking access since i was on the state board of equalization. i'm glad to report that there are more and more banks that are willing to take on cannabis-related clients. of course they want to maintain some sort of balance, so many of them will have a certain amount of cultivators, distributors, maybe put folks in test, and they are also looking for other private equity folks who are
1:53 am
investing. so they really wanted to diversify their portfolio and risk a little more, but every day more and more banks are willing and open to taking more cannabis clients. but it is slow, and i think this covid-19 crisis has shown how important it is, right, with all of the social distancing and not wanting to touch surfaces, that dealing in cash is more and more probably even maybe a contributor to the covid-19 spreading. so i think folks are realizing that it is so important that we try to bank this industry as soon as possible. however, we are still always stuck in the senate because the senate is republican controlled, and that is going to be the first step in november, if we really want to see changes to cannabis, we all need to figure out how to, you know, take back
1:54 am
the senate in november. >> thank you, fiona. with that, does anyone else want to respond? >> well, i'll speak to a couple of those points. obviously on the federal advocacy side, our federal liaisons are doing quite a bit as behind-the-scenes advocacy in d.c. around the stimulus funding to try to get cannabis involved in that and supporting the efforts of, you know, certain representatives who are pushing clarity via bills to incorporate cannabis as well. to the treasurer's point, it is a big challenge to get the senate there, but we've seen a number of senators engage, including our state senator, kamala harris, our state senator, i should say, and
1:55 am
kamala harris, who has really engaged in that space as well. so grateful for those efforts, but do know that we are definitely working on that in d.c. and then beyond that, on the taxes, i think, you know, obviously you heard earlier that the state has done quite a bit around taxes now, not speaking necessarily to changes to the overall cannabis tax structure, but really looking at the sales and use tax deferral, which the state, you know, believes applies to an extraordinary number of cannabis businesses if they are paying, if they are annual taxable sales, for instance, something like 77% of our retailers would likely qualify for that. so that allows for that deferral of up to $50,000 and provides a 12-month payment plan. i will note that i believe cdtfa is willing to on a case-by-case
1:56 am
basis consider operators that have a high amount of sales, so i think it's worth engaging cdtfa on that opportunity if you think that you are eligible or even if you feel like you might be on the cusp, do take advantage of that resource as well as you clearly now have time to file your tax via the tax extension. so to the extent that there needs to be more clarity provided to the industry on that, please do let me know because we will be happy to push out more information to you guys to make sure that all operators are taking advantage of the resources that the state is providing, that they know about it and that they are taking advantage of it where they can. and then when it comes to banks, i mean, we have an incredibly committed set of elected officials who are really clearly advocating for, you know, banks' involvement in this space. the administration is also working on that, also behind the scenes, to try and engage banks.
1:57 am
to the treasurer's point about the small business finance center and having support to back loans that are being given by lenders, we understand that there are not very many lenders in this space, and so we are working on trying to figure out if there are institutions that are willing to engage in that space, but as you all know, that's a challenging conversation. so do know that that work is happening behind the scenes. >> thank you so much. and where would you point folks to for information, the best place to start this process? >> so i would encourage people to visit cdtfa's website as a starting point, and again, if you guys need additional information, please do reach out so that we can make sure you guys are able to access all of those resources. >> thank you so much. and senator wiener, did you have
1:58 am
thoughts on this as well? perhaps the connection -- senator wiener, are you on the line still? okay, we'll work on that and get back to you. and then let's talk a little bit about, you know, the industry is ineligible for federal assistance. any talk on the state level about perhaps programs, grant assistance, that can help with economic relief in this space? >> do you want me to take that? >> sure. >> okay. so again, i think i mentioned in my early comments to level set everyone's expectations and unfortunately to be the bearer of a lot of bad news, you know, the state has set a budget -- has indicated they will be engaging in what they call a
1:59 am
workload budget. so no new expenditures. so it is highly unlikely we will see new programs stood up, and so when i talk to operators and to additional stakeholders in the industry, i really talk about how we can leverage existing programs. but we have a very challenged general fund, and so additional money going out is going to be very hard to come by. to be completely honest. so hence really looking at working within our existing framework, things like what cdtfa has done around tax deferral. i know there have been conversations about licensing fees, on where we as a state have capital and how we can get creative with that capital that already exists. but it will be a challenge to put out an additional program. i'll just be very transparent and honest about that, while still flagging that those are ongoing conversations. >> thank you so much. no, we appreciate the honesty. that's why we're here and we want to engage in this
2:00 am
conversation. and with that, thank you. we'll move now to a different topic. the unregulated market. >> sure. one of the things that a number of our operators have been interested in is around additional conversations about the state's plan to give legal businesses a chance to really compete against an illicit market that still controls a significant portion of the cannabis market. can you discuss existing state enforcement efforts and how the pandemic might impact proposed efforts? we can start with senior advisor elliott. >> sure. so existing state enforcement efforts i think we're quite transparent last year the governor outlined multiple pillars for his priorities. enforcement is one of those, and there was a stronger effort to
2:01 am
coordinate enforcement across a number of agencies, and i mean a number. it's a large amount. to really get at the issue of the illegal market, the informal market. and so that effort will continue this year. i think our challenge will be how we do that effort within this new work construct, but that is a challenge that we are wholeheartedly embracing, as well as of course there's dollars within our budget to put towards enforcement that includes funding that will go out through the bscc, to local jurisdictions to support local enforcement efforts, and also to our department of fish and wildlife to support efforts on the rural cultivation side. but i think it's -- the governor has made it very clear, enforcement is a top priority, thoughtful enforcement is a top priority, and so that will be something we continue to pursue
2:02 am
and coordinate this year. >> thank you very much. and now we're going to talk a little bit about compassion. >> jeremy schwartz here. thank you, treasurer, ms. elliott, senator wiener if you're still there for making yourselves available. i would like to acknowledge that in getting sportsnet bill 34 across the finish line regarding compassion programs and tax savings, to that point, i'll share an anecdote which is pretty shared amongst some of the inquiries we received. so this gentleman said "i'm renewing my medical cannabis recommendation with my physician on may 1. however, i'm unable to renew my state medical cannabis id card because san francisco department of public health card office is closed during this shelter in
2:03 am
place. is there a way that the state of california could temporarily amend its regulations or otherwise allow medical cannabis i.d.s to not expire in the coming weeks with the understanding that i believe the state vital records office is closed?" so i know that was a mouthful, but any sense about the medical marijuana i.d. card program? >> well, i would just jump in that governor newsom has a press conference every noon called newsom at noon, and he takes this opportunity to talk about executive orders. i do think he has been exercising a lot of his powers in this covid-19 pandemic, and certainly i think if the industry gets together -- like, this is the first time i heard that there was an issue about
2:04 am
renewing your medical cannabis card, that this is certainly something that should be on his radar. but you all have to -- and this is why we're on this webinar here today, is to really hear some of the day-to-day inconveniences or barriers that you all have. but certainly that is a good point. i know i oversee affordable housing, and there is a process called tefra hearings that needs to be done every year, and a number of them were expiring, but unfortunately tefra hearings are mandated under the irs code, so the governor cannot do an executive order to overturn the irs, so i've been lobbying the irs to try to get them to extend the tefra expiration or hearing process because many of the local governments are closed, like you said, and therefore they are putting in jeopardy a lot of the affordable housing projects that are trying to
2:05 am
continue to move through the process. so we are facing this type of, you know, issues when governments close and we still need to get certain things done. you know, what is it that government or the state government can help with. >> excellent. thank you, treasurer. ms. elliott, do you have anything to add? >> i'll just add, i mean, i think this -- you know, i want to give credit to the treasurer for setting up this conversation. she's totally spot on, that these are the types of forums that really allow for these types of challenges to be lifted up and brought to the attention of the state. and that was something that was brought to my attention yesterday. so we are running that down and hope to have an update, but we're definitely looking into it. >> thank you, kindly. >> and this is scott, i apologize, i had to jump off for something, but i'm back. >> thank you so much. and i don't know if you were able to hear the last question. if you'd like to chime in, happy to, or we can keep moving
2:06 am
forward. >> your call. i didn't hear the question, but whatever makes sense for you. >> no, that's fine. we'll keep moving forward. thank you so much. we saw the california department of alcohol beverage control mobilize quickly to provide unprecedented relief for their licensees by issuing sweeping industry-wide relief. to date, they have issued three significant regulatory relief packages, including the extension of licensing fees. conversely, cannabis licensees seeking relief must individually request relief and oftentimes each business has to request the same relief every 30 days. can you speak to efforts under way that would streamline and expand associated relief and associated timelines for implementation? >> so i'm happy to speak to that. the fee deferral program is based on fees that are shocking to the industry, not as high as your fees, and they have the ability as a long-standing
2:07 am
department or agency to weather the financial storm of fee deferrals. so it is not lost on us that that is a request of the industry. that is something we are looking into, but it does take quite a bit of analysis to understand whether or not that's something that the state can sustain, because we are working with a finite set of resources, and those resources support the work of these agencies and the legitimacy of this market. so do know that that is definitely something that we are looking into, but the abc's process is slightly different than the three licensing agency process. it's a bit more challenging, as you all know. >> right. thank you so much. thank you for speaking to that. and fee deferrals, any thoughts on deferrals? >> are you asking me that? >> yeah, just as a follow-up. >> so that's exactly what i was speaking to. >> okay, yeah.
2:08 am
okay. thank you. and i don't know if treasurer ma or the senator would like to speak to that as well. >> well, i would just say the squeaky wheel gets the grease, as we have seen in the last ppp stimulus package, a lot of the small business owners did not get any assistance, and there was a lot of folks who, you know, called their congressperson, their senators, and then now in the latest ppp round of stimulus money, they are really -- the banks are really focused on small businesses because they didn't have the chance last time because of the way the system was set up, because everything was done so quickly. so i would just say, you know, keep advocating. reach out to your assembly members, your senators, obviously san francisco is really small, so we know who they are. and of course the governor's office, nicole, myself, so that when these issues come up we can also chime in that this was an
2:09 am
industry that also needs to be supported during this time. >> thank you for that. eugene? >> sure. we know that there was a previous announcement regarding the pre-existing cannabis state licensing agencies. question: do you anticipate that the consolidation of those licensing authorities will proceed as planned? and if not, how will that affect the kind of general com lines associated regulatory change to improve efficiency? and anyone who has some additional knowledge about that can provide some feedback. >> so i know that the senator talked through some of the legislative challenges and framework that he'll be working through during the budget, and that the consolidation was proposed in the governor's january budget. that conversation is happening
2:10 am
in real time. we have a may revised coming out soon, so i don't have any news to break on that, but i will say this: we all know that there is a lot of work to do on the stateside around streamlining, and a lot of that work can be done administratively and will be done administratively. so if that moves forward this year, then there will be a lot of work to do. if it does not move forward this year, i know that this is a concept that the governor is very committed to, and there will be a lot of work to do. so regardless of what happens, i do think that simplification and streamlining in some form will be on our agenda for this year. whether or not that's in the form of consolidation in statutory language by july 1, 2020 or july 1, 2021. so i'll leave it at that. >> and i'm sorry, could you repeat that question? my phone was cutting out.
2:11 am
i'm having quite a day with my phone. >> sure. the question was about the governor's announcement about the consolidation of the state licensing agencies and whether the pandemic would impact the timelines and what are other opportunities to increase efficiencies at the state level. >> oh, yeah, that sounds like more of a nicole question. i think we're all always taking a look at how we can make life easier for people with various regulatory agencies that they have to deal with. i just cannot speak for this year because everything is in such tumult right now. the administration is truly drinking water from a fire hose on covid, and it's just -- it's too hard to predict what else will happen this year. >> and i'll just add to that, as far as opportunities, i think what i was trying to communicate, and i hope i
2:12 am
communicated, but i will be very direct, there is a lot of opportunity space here. we all know that, and we intend to pursue that opportunity space, whether that's done statutorily, regulatorily or administratively. it will be pursued. >> excellent, thank you. and, eugene, if you would -- i think the unregulated market, perhaps we can shift the conversation in that direction for a moment. >> sure. so you know, we talked a little bit about kind of what the potential actions at the state level and how they might impact kind of operators and the existing resources that will continue to be dedicated to fighting enforcement, and we talked a little bit, i believe senator wiener mentioned the possibility for kind of new legislation was unlikely, but there was a specific question
2:13 am
about the jones foyer and rubio bills and what the prospects of them passing this legislative cycle. >> i don't know -- if scott's still on, but i know the assemble is going to go back into session next week, and the senate is supposed to go back the following week. as i understand, they are really going to focus on the budget and covid-related legislation. so we're not really sure what -- legislation will move forward. scott, are you back on? >> yeah, i am. yes, so there -- i can't tell if there's going to be differences in the assembly. in the senate it's been made very clear to us we're not limited to only covid-specific bills. we have some covid-specific bills and obviously the budget
2:14 am
is a high priority, as bloody and terrible as it's going to be, but there are other non-covid areas where we'll be able to do work. and i think i mentioned those earlier on around housing, homelessness, wildfires, et cetera. the assembly is being -- it has been much more putting everything on the committee chairs so they can hear what they want to hear and prioritize how they want to prioritize. and so those bills, those are enforcement bills. i don't know whether under normal circumstances they would have political support to move forward. i am -- i assume those go to assembly public safety or maybe to assembly judiciary. i don't know how the chairs of those committees are viewing this, so it's very unclear
2:15 am
whether those bills will move forward. >> then again, this is democracy, and the legislators are coming back, so i would encourage you to, you know, continue to advocate on behalf of the important bills that you think are gonna move through right now. obviously not all the bills are gonna continue, but if you all as an industry can get together and prioritize, you know, these are the top three bills that we want to see, then it will have a higher chance instead of everybody just trying to, you know, support 5,000 bills. i mean, clearly 5,000 bills are not going to go through this year. >> we appreciate that, certainly. thank you so much. >> just to give you a sense, you know, i have -- and we -- and the senate, we're not like capping members bills, like you can only two five bills or four bills or seven bills or
2:16 am
whatever, but we have been, you know, asked to really self-edit and to move bills that are in very high priority areas, that are time sensitive, and so forth. and so i have jettisoned a majority of my bills, and these are some bills that i'm super-passionate about, and many of them i will reintroduce next year. but we have to be selective in what we move forward. we will have less legislative time, more focus on covid, and you know, it's going to be -- our proceedings are going to be clunky. like in the senate we're allowing remote participation. it makes things a little bit slower. so it's not going to be the -- as fluid and easy as previous sessions, so that's why we're really narrowing the number of bills. >> thank you very much. jeremy? >> jeremy schwartz here.
2:17 am
so reverting back to banking, certainly an exciting development regarding the $50,000 -- the potential for up to $50,000 for a bridge loan. treasurer ma certainly touched on increased operators perhaps providing some banking services, whether they are pilot programs initiated by credit unions. folks are wondering what this group feels is probably one of the most viable pathways forward for access to mainstream banking, whether it is a public banking option, federal intervention or other mechanism. >> well, i think during this time, you know, individual banks, as i mentioned, more and more are coming on-line, and many of them do have capacity. obviously they want those customers who have had, you
2:18 am
know, a good track record, have been filing all their taxes, have all their permits in place. that's the easiest way for folks to get a bank account in this new environment, and it is not easy because they do do an extensive background check, and if there's anything in your history, it may kick you out of, you know, their vetting system. so i would just encourage you to talk to your bankers, talk to other members in the industry who may have bank accounts. there's no list published. people, you know, still are being cautious in terms of how many accounts that they take, but clearly the industry is definitely moving toward opening up banking access for more cannabis companies. >> and i concur with that. i mean, i think if you're looking for the most expeditious pathway, it is really following the advice of our treasurer and trying to establish those
2:19 am
relationships with banks that will learn to trust you as operators but also will want to look into every nook and cranny, just like your regulators do when they review your licenses, your applications. so being transparent on that front hopefully will at least establish a banking relationship, understanding that lending is a bigger challenge in these economic times. you know, the federal government really needs to move on that to create a little bit more, you know, legal and regulatory certainty in the banking space to facilitate things like that. so continue to push your federal representatives and, you know, try to establish those relationships with your banks. >> thank you. again, i want to thank our esteemed guests today, treasure
2:20 am
fiona ma, state senator scat wiener and sfr advisor nicole elliott. we are reporting here live from the emergency operating center, and we are so thankful to have this opportunity to engage with our state leaders during these unprecedented times. i know i mentioned it earlier, but no one's immune to the challenges to date and ahead. one thing i do know for sure is that the industry has always been resourceful, will continue to be, and as a community we will work through these tough times together. it's been a while since we've had an opportunity to come together and talk about the state of our industry from a local level, so i wanted to take a few minutes now that we're getting to the end to talk to you a little bit about what's happening in the office. many of you know april marked my one-year anniversary, having taken over from nicole elliott, and thank you for standing up an
2:21 am
incredible office, and it's because of that hard work that i believe we will be able to make it through these tough times. we had the great advantage to be able to build upon a lot of that hard work, and this last year we had seen tremendous growth, momentum. we've built upon that, and we are proud of our numbers. of course we could never have imagined in a million years that today we would be sitting here telecommuting, having this webinar and dealing with a global pandemic that is going to impact all of us in a major way. and that means that during a time where things were booming we experienced slow process, and that was frustrating for a lot of our industry, and today that is not different. we will probably see more of that, but we will continue to work hard for the industry and to ensure that we are moving things forward. i want to take this time to
2:22 am
thank our mayor, our city administrator, naomi kelly, our deputy city administrator for their continued support of the passion and equity mission of this office. and i am grateful to all of our colleagues and to our industry for all of their support. we will continue to work hard and continue to be supportive of one another. that said, we'll put up our first slide. we'll share that for those of you who are calling in and can't see it. these are our numbers, just to get everyone caught up to date. we verified over 330 social equity applicants, which is tremendous hard work. we are very happy to announce that we met our q1 goal of -- excuse me, our q4 goal last year of permitting our first equity application. since then we have permitted four. i want to congratulate our last permittee, ms. reese benton, who
2:23 am
i know is tuned in today. she has received her permit. that is four, and that is even during these tough times, so i know that we will persevere. we have 15 applicants through the buildout phase. this number may look familiar. the reason is a lot of our important city processes had to be slowed in light of covid, and so getting those final buildout permits signed off is not happening right now, as you all know. so as soon as the shelter lifts, we expect to see a lot of movement in that space. we have 83 applications that were formally referred to the planning department for land use entitlement. that's incredible, and in fact there are six more on the way. we are able to continue to do our work. we are, as you know, six in our offi office. three have been deployed as emergency city workers. the others are keeping the lights on. we continue to engage. if you have questions, please,
2:24 am
don't hesitate to reach out to our office. we will have meetings with you, over the phone to ensure that you do still feel connected to our office. 83 applications formally referred to planning is huge, and we are very, very proud of that number. a year ago it was 24, and so there is momentum in that space. with our next slide. >> sure. so in addition to the general development of issuing four permanent permits, the office of cannabis also has about 160 temporary permits as a part of our amnesty program, which was an effort to bring the unregulated market into the regulated market as we continue to prioritize and process our social equity applicants. in addition, there are legacy operators, medical cannabis dispensaries who are able to sell adult-use products based on
2:25 am
their progress towards the equity plans and commitments they've made to the city. we have also developed some technical assistance resources. san francisco is one of the few, if not the only jurisdiction to partner with its county bar association, the bar association of san francisco. these fine folks panel with the bar, provide pro bono legal services to social equity applicants. to date about 250 hours have been provided. in addition, our partners at the office of economic workforce development have contracted with a law firm to provide additional pro bono legal assistance, which has started in about january/february, about 50 hours to date, for a total of 300 hours. and in addition, although there aren't events at this time, we
2:26 am
did issue a permit for cannabis sales, on-site cannabis sales and consumption at the music festival in golden gate park. this is a part of our pilot program which may be extended on a yearly basis through 2021. with that, i'll kick it back to director rodriguez to close us out. >> thank you so much, jeremy. i want to run through this just quickly. there were some questions on the local level for -- with respect to what is sort of happening during the shelter in place. people want to know whether they can have community outreach meetings. the answer to that is no. through june 1, community outreach meetings won't be happening. after june 1 we'll revisit that. there's questions about cannabis inspections, are they going to happen now. the answer to that is no. we are going to wait until the june 1 shelter lifts before we
2:27 am
do that. once it's lifted, we will certainly start to bring up all of those things and start to see some of that kicking off and momentum picking up. there are a couple questions with respect to the grants that i'm going to allow eugene to answer just so you can have some more information around that issue. >> sure. so i know folks have had a lot of questions about the process to -- [indiscernible] to our knowledge it hasn't been distributed to the city in the case of the fund, that they should be arriving any day now. we're really excited about the opportunity to provide some additional support to equity applicants who we know desperately need it. we're hopeful that those will start to be distributed in the summer of this year. the go biz fund which will require a resolution we're currently in the process of getting all of that information together. you may have seen the safe
2:28 am
announcements regarding an additional $5 million of support that will be provided to the city and county of san francisco, so we're really interested and excited about the opportunity to provide that money to equity applicants. we will need to enter into a formal grant agreement once the resolution is passed. it's unlikely that that will happen before june 1, but once the grants are dispersed, it's my understanding that those funds would need to be distributed in the next year. marisa, i can't hear you. >> apologies. sorry, i was muted. i want to give our esteemed guests an opportunity to close out, and i know there's a small surprise at the end with senior advisor elliott. for those of you who are tuned in visually and can see the screen. so let's start with treasurer
2:29 am
ma, if you'd like to close out. >> thank you. i do have a couple more items i would just like to talk about with this group. my website, has two links when you log on. one is to our which is our official excuse me, state website for health and other resources. and then i have a -- excuse me. covid-19 resources guide that is updated continuously for small businesses, tax relief, food, as well as individual resources, and so please log on. if you have any questions, you can email me at and we
2:30 am
will answer your questions as quickly as possible. be careful of scams these days as people are thinking they're going to get their $1200 stimulus check or other type of loans. government will never call you and ask you for your personal social security number or ask you for your bank routing number or ask you to pay over the phone. so those are all scams. and then if you could just take a couple minutes to answer the census questions, we count people every ten years. the federal government gives us over a trillion dollars to the states, and they allocate it based on some sort of census-related data, so every person that is not counted will cost us a thousand dollars per person for ten years, and we get a lot of money for everything from education to public safety to seniors to child care. and so please take a little time to do that. and then also the governor released this week a list of
2:31 am
approved outdoor activities, so please google it. you will find the list. it's a pretty extensive list. i know it's beautiful here in san francisco, and everybody wants to go outdoors, but the governor's really trying to make sure that we continue our social distancing so that we can continue to protect the health and safety of all the residents. so again, thank you all for accommodating us here today. i hope you all stay safe. be well. help each other during this time, and we will get through this together stronger. so thank you, marisa, thank you to the team and nicole and senator scott wiener and to all we're doing to get through this pandemic. >> thank you so much, treasurer ma. this would not have happened without your leadership, and thank you for continuing to support the cannabis industry. we really, really, really appreciate you. >> thank you.
2:32 am
>> next i'd like to ask senator wiener to close out. did we lose him? i know he was having some difficulty with his phone. okay. in that case, we will go on to senior advisor nicole elliott. >> thank you, guys, for putting this together, for having me. thank you to the treasurer for supporting the development of this discussion and to senator wiener for joining and all your advocacy behind the things that we collectively care about. and to the industry, hang in there. it's going to be, you know, a challenging couple of years. the governor's very -- clearly very committed to seeing legalization be a successful exercise, and so to the extent that you guys have more questions that we can work to answer or address, please feel free to reach out to me. i am a one-woman show, so i will do my best to respond as
2:33 am
promptly as i can, but it's and we have a special guest who wanted to say hi to her san francisco family. lucy. >> ah! so sweet. >> she looks forward to meeting you all in person at some point when we are released back into the wild. >> that was our surprise. thank you so much. again, thank you, and i just want to double-check, do we still have the senator on the line? looks like we have lost him, but we just want to thank you, senator, for participating and, of course, thank you to nicole elliott and lucy for always supporting our industry and our community, and hailing from san francisco as all of these great leaders do, thank you all so much. thank you for tuning in. we will have our newsletter out next week, so you will be able to get more information about the billings under the office of
2:34 am
cannabis in addition to answers to some of the questions that we couldn't get to today. some of them were bcc oriented, so we will point you in the right direction and get that information to you, and i also want to remind folks that now that it's may and i think you can still get it, but the san francisco magazine has a story about our equity program and features some of our equity applicants, so make sure you pick that up and support the community. we thank you so much. thank you for tuning in to our cannabis webinar. have a wonderful day. ♪ ♪ ♪
2:35 am
>> please type your name and your question exactly as you would like it to be read. submit before the last speaker is finished. we will read in the q&a portion. thank you for joining us. today we have doctor grant colfax, the director of the office of economic and work force development. cheryl davis, james executive director of collective impact. member of the latino task force and stefani garcia. with that i will turn it over to
2:36 am
dr. colfax. >> good morning everybody. thank you for joining us before this long weekend. i just have a brief statement to make with regard to where we are in the covid-19 pandemic. it is a public health message that is really that we need to send across the city, across the region, across various neighborhoods and communities. this fourth of july, th the saft thing to do is stay home. in san francisco we have had an alarming increase and significant increase in covid-19 infections and hospitalizations of the over the past few weeks, our rates have soared. we are in a situation where we could we seeing early signs of a
2:37 am
surge. our increases reflect across the region as increases across the state. as people know, we have put a pause on re-opening. it is vital that everyone take the steps that we know stop the spread of covid-19. slow the spread of covid-19. this means wearing a face covering, social distancing, good hygiene measures, and really limiting outings and staying home as much as possible. we know this works. we saw this work in the spring with our response in san francisco. as we hit pause, we need to ensure we are doing everything we can to slow the virus' spread. this weekend stay at home if possible, celebrate with people in your household. use as much as possible a way to
2:38 am
socialize virtually, socially distance, wear face coverings, keep your family and your neighborhood and community as safe as possible. thank you. >> thank you, dr. colfax. now we have the director from the office of economic and work force development. >> thank you so much, dr. colfax. i want to make a few brief comments about the importance of moving to this weekend. like many of the small businesses and community members who were very much looking forward to a more aggressive re-opening. we are thankful for the leadership of the department of public health keeping our health interests real and grounded during this significant time we are in right now.
2:39 am
i think we are excited about the long three day weekend and what benefit that may bring to our struggling small businesses doing everything they can to provide a healthy experience and safe experience for those who visit them and patronize them, which is very much needed right now. it is important to remember the virus doesn't take a holiday, it may force one upon us if we don't take responsibility as business owners and community members to ensure we are adhering to the public health guidelines. it is important the progress we worked so hard to create in phased re-opening, through our office, mayor breed's leadership, we want to continue to see the progress being made. it is only possible if you, as the public and business owners,
2:40 am
do your part to be responsible during this week end as we continue to mitigate the public health crisis we find ourselves in. we have been doing such an extraordinary job ensuring to get to this place of having many small businesses begin to see light at the end of a tunnel to enjoy a little activity and seeing liveliness come back to our neighborhoods and commercial corridors. it is only possible if we work together to take care of each other, practice social guidelines. it benefits our health and economic health. we need to keep an eye on that. we all have a part to play in that. over 153,000 residents in san francisco sought unemployment. we have a rate of well over 12%. our job is to add here to these
2:41 am
public health guidelines to continue to battle the economic crisis we want to successfully address. together with all of you, we know that we can do that. when it comes to the additional work to be provided, we have signage to be provided. make sure businesses know there is collateral to collect and gain access to to help them work together with their patronizers and those who come in and patronize their businesses retail or otherwise. we want to thank the public for being patient with business owners trying to do their part to be successful in this environment. with that, i will take questions later on. i am looking forward to a safe july 4th weekend in san francisco an and across the bay
2:42 am
area. for more information about resources or tools available to you, reach out to our web site. also if you are curious about the phasing going on and what plans we have, please visit sfgov re-opening and you will find the information there. thank you for the opportunity today. we look forward to working with you towards continued success and re-opening. >> thank you, director. our next speaker is cheryl davis, executive director of san francisco human rights commission. >> thank you. you know, the director talked about the virus does not take a vacation or holiday. dr. colfax and i have been having conversations it is not equal where it is impacting
2:43 am
communities and neighborhoods. we have seen the map where the virus is impacts greater numbers matches maps for red lining to highlight disparities in terms of economic and health issues and challenges. we realize in some ways we are battling two issues at this point in time. one is the pandemic and one is racism. these two things are very much closely connected. we are seeing a surge within latin x communities. most recently the african-american community and challenges with folks in sunnydale with younger pops. we are trying to make sure folks are staying healthy, working with communities.
2:44 am
the role of human rights is to engage with community and raise community concerns. we have heard from young and old people. there is a concern folks will come out this weekend and think everything is fine. they will be worse off as we go into next week. we encourage people to talk to their family and encourage them to stay home, healthy and be aware of the idea someone could have contracted the virus and not know it and be spreading it to others. as the human rights commissioners we have been working with collective impact to distribute face coverings, pass out sanitizer and pass out collateral that says stay home,
2:45 am
stay safe and remind people to get tested. i am grateful for the partners here today to share and encourage others. grateful for the work of the latino task force. we have to think about making the messagthe mess o the messag. those with health issues are more likely to contract the virus and have a harder experience or be harder impacted by that. we are trying to work with messaging around that so folks realize they are not mandated, we are encouraging people to stay home for safety of themselves and their communities. >> our next speaker is a member of the latino task force. >> good morning everybody.
2:46 am
i am with the latino task force. since the beginning of this pandemic we are working vigorously to ensure the latino community continues to thrive in the city. as director davis just indicated, there are a lot of challenges the latino community faces in san francisco that run parallel with covid. covid in many ways makes i would worse and highlights. one of the big pieces of advice to anybody that is listening out there, that is writing this down, ensure if you have the ability to shelter-in-place this weekend, do that. if you have a need to go out because there is an essential thing you have to do, wear a face covering and face mask. as we saw in a mission study, we
2:47 am
found 53% of the people who tested positive had no symptoms. people could have covid-19 and not understand that they do and be fine and not have symptoms. they could give it to somebody they love that could have an adverse effect. we are reminding our people in the community to ensure that you stay home if you can. if you have to go out, wear a face mask and ensure you are keeping social distance that is appropriate. if you are listening to this message, then you are an ambassador of this message to those that you love and you care about. it is important for all of us to take ownership of this. it is only with all of us participating we will get out of this. if you are absolutely have to go out because it is essential, please use social distancing space or face mask.
2:48 am
cover your face and enjoy this as safe as you possibly can. >> thank you. our next speaker is the executive director of collective impact. >> i am not sure if you can hear me. >> yes, we can hear you. >> i am working at the community center. i want be the community to understand. i am in the community to tell everybody to come to my community and ask where is
2:49 am
james, nobody would know who you comcome to. uncle stink they know who i am. i knew from day one when this pandemic started that we were opening the doors to the community. the resources were going to be hard for the community to get ahold of. we want our community to have a place to go, ppe, face mask, sanitizer and we did hot lunches here. i want to make sure the community knew that the door is open, they didn't have to go look for anything, it was right here. i have been all over san francisco and hunters point, the mission, we are supporting everybody with ppe. i know everybody is feeling a
2:50 am
little cramped up with the fourth of july coming up. keep your butts at home. please stay home. this pandemic and this covid-19 is for real. i don't want you to be the person that carries it home. i know a lot of us go home and we have family reunions to get together during the week and go do the fourth and do the fourth of july and you go home and you have a mom, grandparent at home. you know, you don't know you are carrying the disease. really as young people, you are the carriers. it is like looking out for the people around you at the time. it is not about you. it is everybody else.
2:51 am
it is bigger than me or you. it is protecting the elders and seniors and our family around us when we think about it as we go out. basically if you do have to go out wear a face mask. make sure you have sanitizer with you. i think about social distancing at all times. make it a habit that people keep their distance from you. make sure that you take it serious. this is serious. i am saying this because when you think about it is a lot we don't know about this virus. to be safe just make sure you are taking care of your loved ones and your community. make sure that you actually let everybody know that i don't want to get sick, i don't want you to get sick.
2:52 am
i will stay at home. i will not be part of that. we are going to recover from this. stay at home and be safe for this weekend. please stay home and be safe. the last thing we want to do is sacrifice your family. the last thing i want to do is go to another funeral. at the end of the day it is for us to look out for our community to make sure the community is safe at the end of the day. please, please, please, keep your butts at home. stay home, you all. another fourth of july will come up. we will be there next year. this year, please stay at home. thank you. >> thank you.
2:53 am
up next we have stefani garcia who is our final speaker, please submit your questions. >> good morning, everyone. i am here to talk to young people specifically. i have a message for young people in san francisco and around the nation. we the young people are intel get anchor -- intelligence and we can lead by example. i urge you to continue to practice social distancing and only go out for essentials, wear facings and plastic good hygiene. covid-19 affects all of us, especially those we love. our moms, dads, grandparents, great grandparents and others with underlying conditions in our community. we as young people have the
2:54 am
responsibility to act responsible and to leave our pleasures and fun behind. coronavirus is real. i have had relatives test positive and lose their life to covid. i know what testing positive does to the family financially. in some situations we live in multigenerational homes. we live with the elderly, parents and grandparents. as young people we must remember we are not spared from the virus. we have seen how serious it could be fou for our loved peop. i urge you all to take action and practice social distancing, practice good hand hygiene and
2:55 am
continue to wear face coverings. we all have the power to flatten the curve and stop the spread. thank you. >> thank you, stefani. we will begin our q and a. first question with rebecca. what percentage of cases tell contact tracers close contacts? has that changed over time. do they say why? that question is for dr. colfax. >> could you read me the question again. i didn't hear all of that. >> the question is what percentage of cases tell contact tasers close contacts? has that changed over time. when they don't tell the investigators close contacts do they say why?
2:56 am
>> contact tracing is one of our key interventions that we employ as a result of pandemic. we have 100 contact tasers in the field working with people diagnosed with covid-19. right now we are reaching 82% of cases. of the people that the cases report, we are reaching 88% of their contacts. we are doing relatively well there for our indicator in yellow there. the goal is to reach 90%. with regard as to why people do not necessarily tell people about their contacts or perhaps refuse with regard to engaging
2:57 am
with a contact taser, we have qualitative information. there is understandable concerns about providing information and how that will be used. that is why we have worked very much with multiple community partners to the train efforts by community-based organizations to function as trusted contact tracers. it is about the information that is given. it is also about providing support for people diagnosed with their contacts. across the city people are offered hotel rooms if they need to isolate and quarantine. families are offered social support services, food and other
2:58 am
key things that help people if they are diagnosed with covid-19 if they are at risk and to help them get through the two week period that is most acute with people diagnosed. the other thing to emphasize is the information gathered is 100% confidential. it is only used to get people tested during covid-19. >> the second question. how have moved to reopen san francisco complicated contract tracing efforts. >> we are working in a cultural appropriate way to engage people who are diagnosed with covid-19,
2:59 am
to support them and their families, and to support the contacts they have had. it just emphasizes the need to continue to strengthen this work across the city. >> next questions from ktsf for dr. colfax. how do we celebrate the fourth of july with our families safely? >> i think as i said at the beginning of the call and my partners also emphasized. best thing to do is stay home, celebrate with members of your household, and to be able to celebrate virtually with others. it is really a key right now we present the spread of covid-19. if people go out to emphasize
3:00 am
wearing face coverings, maintain social distancing which i know it is hard for me to do, but we need to emphasize that. as director about seized in the commenters, even if you feel okay that doesn't mean you don't have covid-19. if someone looks like they are not sick, up to half of the cases can initially be a symptomatic. we have got to continue to prevent the spread, wear face coverings, social distance and good hygiene. >> second question from angelina for dr. colfax. other counties allow social bubbles. what is your position on small gatherings of close family and friends? >> the safest thing to do is stay home with members of your immediate household.