make sure we remember our heroes and make sure we honor the current ones that are serving today. and let's get the filipino-american candidates rally going for more heros in san francisco! celebrate filipino-american history month. thank you everybody for being here tonight. [ applause ]

he jennifer low and the clerk of the meeting, mr. victor young. mr. clerk, do we have any announcements? >> yes. [speaker not understood] electronic device. completed speaker cards copy of any documents to be included as part of the file should be submitted to the clerk. items acted upon today will appear on the february 15th board of supervisors agenda unless otherwise stated. >> thanks very much. mr. clerk, can you please call item number 1 and number 2 together? >> item number 1, resolution authorizing the san francisco department of public health to retroactively accept and expend a grant in the amount of $519,945 from centers for disease control and prevention to participate in a program entitled "active, enhanced surveillance for viral hepatitis in san francisco, california" for the period of november 1, 2012, through october 31, 2013. item number 2, resolution authorizing the san francisco department of public health to retroactively accept and expend a grant in the amount of $300,000 from centers for disease control and prevention

to participate in a program entitled "hepatitis b early identification and linkage to care for foreign-born persons with hepatitis b in san francisco" for the period of september 30, 2012, through september 29, 2013. >> thank you. and we have dr. melissa sanchez here from the department of public health? >> yes, correct. >> thanks for joining us. >> thank you. yes, i'm the project director and the principal investigator for both projects. >> okay. >> i'll be happy to answer any questions you have. >> colleagues, do we have any questions about item 1 or 2? okay, i think we're good. thanks for being here. >> we just have a real brief presentation of the items, that would be great. >> sure, sure. the first item, the surveillance project being funded by the cdc is for us to maintain core surveillance of hepatitis b and hepatitis c in san francisco and to look at high-risk populations in our city. for hepatitis b, that would be

the asian pacific islander population. for hepatitis c that would be our baby boomers as well as iv drug users and then also african-american population. and then the second study is also -- it's looking at hepatitis b specifically and it's testing, screening, and looking to care for those chronically infected with hepatitis b and the target population is foreign born asian pacific islanders. >> okay, thank you very much. >> sure. >> supervisor mar? >> i'd like to open up to public comment. there are any members of the public that would wish to comment on items numbers 1 or 2. seeing none, public comment is closed. supervisor mar. * >> i wanted to ask dr. sanchez, i know there is a very broad and strong help b free coalition and within the baby boomer population, which i'm a part as well * , i'm just

wondering is there a similar coalition that works on hep b as well? >> yes, there is a hepatitis c task force that was convened by the previous mayor and we meet and try to appropriately target those high-risk population, the iv drug user and african-american population. >> thank you. colleagues, any other questions? i'd like to make a motion to modxv items 1 and 2 to the full board with recommendation. without opposition, so moved. mr. clerk, can you please call items number 3 and 4 together? >> item number 3, resolution authorizing the recreation and park department to retroactively accept and expend a nature education facilities grant from the california state department of parks and recreation in the amount of $5,477,193 for the randall museum renovation, for the period of july 1, 2009, to june 30, 2017.

item number 4, resolution authorizing the recreation and park department to retroactively accept an in-kind gift of project management services valued at $130,000 from the randall museum friends for the randall museum renovation project, for the period of october 24, 2012, to june 30, 2017. >> thank you. and we have jasmine from rec and park department here. i'll give the floor to you in a minute if you can provide a brief overview of what the project entails, that would be great. >> sure, i'll keep it brief. i'm with the recollect ask park capital improvements division and we're here to ask for your approval of both items 3 and 4, the accept and expend grant resolution as well as the in-kind gift resolution. these are both sponsored by supervisor wiener of crown heights. a brief summary, the accept and expend resolution is for a $5.4 million grant awarded by the

california park and recreation department for improving the nature facilities. the grant was awarded in april 2011 and approved by the rec and park commission in october of this year. the project involves renovation and modernization of interior exhibits as well as reception areas and installation of facilities intended to meet accessibility requirement, in particular the americans with disabilities act. the grant does not cover indirect project costs. so, those would be administrative costs. and the performance period for the grant is through june 30th of 2017. the contract period extends well beyond that and that's intended only to make sure that the project is used for its intended purpose through a later date. the second resolution is for the in-kind gift in the amount

of $130,000 from the randall museum friends. and that would go directly -- it's to san francisco rec and parks department for the services of a project coordinator. and included in this is a memorandum of understanding between the randall museum friends and the san francisco recreation and parks department outlining the roles and responsibilities for the project coordinator. and basically the project coordinator will serve as a liaison between the randall museum friendstionv and rec and park from design through construction. * friends the design construction documents are expected to be completed by the summer of 2014. construction will begin in early 2015 and it should be complete by fall of 2015. this is obviously a project of great interest to the community and it will provide much needed improvement to the museum facility including access to

the site as well as better access to the museum exhibits and collections. and i'm available for your questions. >> colleagues, do we have any questions at this time? okay. seeing none, thank you very much. at this time i'd like to open up to public comment. if there are any members of the public that wish to comment on item number 3 or number 4, please step forward. seeing none, public comment is closed. so, we have a motion by supervisor avalos to move items numbers 3 and 4 forward to the full board with recommendation. seconded by supervisor mar and we can do that without objection. * all right, mr. clerk, could we please call items 5, 6 and 7 together, please? >> yes. item number 5, resolution finding that a project proposed by the city to expend and renovate the north and south exhibit halls of the moscone convention center, including reconfiguring the north and south exhibit halls to create additional contiguous exhibit space, a new ballroom, new loading and building service space, and improvements to the landscaping, urban design, and public realm, within and adjacent to the north and south exhibit halls, is fiscally feasible and responsible under administrative code, chapter

29. item number 6, ordinance authorizing the execution and delivery of certificates of participation evidencing and representing an aggregate principal amount of not to exceed $507,880,000 to finance the costs of additions and improvements to the george r. moscone convention center; approving the form of trust agreement between the city and county of san francisco and the trustee (including certain indemnities contained therein); authorizing the selection of the trustee by the director of public finance, approving respective forms of a property lease and a project lease, each between the city and the trustee for the lease and lease back of all or a portion of the moscone center, including the moscone expansion project, to be constructed thereon; authorizing the execution and delivery of assessment notes payable from moscone expansion district assessments to further secure principal, premium, if any, and interest evidenced and represented by the certificates; granting general authority to city officials to take necessary actions in connection with the authorization, issuance, sale, and delivery of the certificates and the assessment notes; approving modifications to documents and agreements; and ratifying previous actions taken in connection therewith. item number 7, ordinance appropriating $507,880,000 of certificate of participation proceeds to fund the moscone center expansion project in the general services agency, office of the city administrator, for fy 2012-2013 and placing these funds on controller's reserve pending issuance of the cop's or associated commercial paper used for cash flow purposes in fy 2012-2013.

>> thank you very much, mr. clerk. and i want to welcome a number of people involved from the moscone expansion district and program here. first, john nagucci, if you'd like to start off. i know a number of people will be speaking, nadia, joe, brook and john. so, john, why don't you go ahead. >> thank you, supervisor. good morning, chair farrell, supervisor mar, supervisor avalos. i'm from the convention facilities. get the slide. >> sfgtv -- >> thank you. today we have three separate except but related items you'll be asked to act on today. an order authorizing the issuance of cops, supplemental appropriation for cops and resolution finding fiscal feasibility. joining me today are joe president and ceo of the san francisco travel association. joe will talk briefly about the

need to expand the moscone center. next brook, dpw senior project manager, will go through the project scope sequencing fiscal and feasibility. nadia, [speaker not understood], will go through financing cop issuance. i'll come back and briefly review the schedule and wrap up today's presentation. thank you again for your valuable time and continued support as we move through this important project through the legislative process. i would now like to introduce joe to discuss the importance and need for moscone center expansion. >> thank you, john. chair and representatives of the committee, [speaker not understood] i'm with the travel association. i appreciate the opportunity to be here before you to talk about a very important project for the future of san francisco economy and job creation. the moscone convention center is one of the most popular convention centers in the united states. it's not the largest, in fact it's number 25 on the top

convention centers in the country, but it probably generates the most amount of revenue per square foot of any in the country. it is very much in demand and frankly is at capacity. every time we open the new expansion of the center whether first moscone south, then moscone north then west, the building filled to capacity. we're at the point now we have to take the next step. our plans are asking for additional space. some of our larger conventions who generate a large amount of revenue and tax dollars for the city are forced to look at other options, look at other cities because they're outgrowing our facility. as you know, tourism is is a major economic engine for san francisco. in 2011 we had over 16 million visitors. about 40% of those are international visitors and they spent over -- almost $8-1/2 billion in our economy, generating over 500 million dollars in local taxes. these are taxes that the residents of san francisco would have to pay if it wasn't for the visitors doing that. it created over 71,000 darer

local jobs and really had a major factor in our economic recovery. conventions accounted for nearly $1.8 billion or 21% of all the tourism revenue spent in san francisco and 27% of all hotel room occupancy. * our independent study shows that without the expansion of moscone, where losing dollars right now, over $2 billion has already been lost between 2010 and 2019, for groups that had to leave san francisco or couldn't meet here because of the size of our center. and history has proven the success. the moscone tourism improvement district that we passed four years ago generated a great partnership with the public sector and the private sector resulting in the renovation of moscone and the lead gold certification that the moscone building has received and also the economic recovery that we are seeing right now in san francisco including the room tax collection, job creation is due in large part because of the passage of the tid four years ago.

so we encourage your favorable response at this time. thank you. >> sure. >> good morning, chair, supervisors avalos and mar. my name is brook [speaker not understood]. today i will go over a few slides to discuss the project's phasing and square footages to familiarize you on the project. so, we have an investment opportunity to expand an important facility for san francisco, that's the moscone convention center. the slide that you see before you today, we are looking to add about 26,000 square feet of meeting rooms to bring it up to 85,000. 80,000 square foot or more of contiguous exhibit space which is the most important space for the convention center. up to 87,000 in multi-purpose space and 178,000 of support spaces such as loading, service, restaurants and things like that.

the -- one of the key objections of the expansion project would be to maintain continuous operation during the construction for the expansion of the moscone convention center. in addition to the improvements to the facilities, we will also be looking to improve streetscape, connectivity, bicycle and pedestrian safety, and bring a sense of arrival of moscone convention center with [speaker not understood]. the image before you is an aerial view of moscone showing where where the areas of expansion will be. that is at the north, south, and at the east building what we call the esplanade building. the next couple of slides will show a sample of cultural facilities including existing deficient conditions at moscone center. as you can see there is an open space, yerba buena at the top left image.

sister cities garden, performing art center, restaurants b, and [speaker not understood] in north moscone. the bottom two images you sue there are the emphasis to north and south. these are two out of the three areas where we are expanding the moscone. so, bringing the building out to the street, activating the street, and improving the streetscape. this slide shows some of the deficiencies around the moscone convention center due to the loading and exiting of the trucks. we have the sidewalks that are up on the moscone convention property, the sidewalk on first street. as you can see in the top right image is closed. we have -- we show the egress exits on the side of course we'll be looking to reduce some of the egress on the expansion projects. and this slide would talk about how we will be able to maintain operations at moscone while we're doing the expansion.

the first step that you see there would be to provide connectivity from south moscone to the ball room at the esplanade. what this would do is it would allow us to be able to demolish the front third of the esplanade building and build a four-story building there. there will be three levels of meeting rooms and a ball room on top. that is essentially a fourth moscone convention center. what would allow us to be able to hold conventions at the howard street building while moving on to the next step of three -- improving the south moscone and step 4, the north moscone. so, it will act as a swing space for the three next steps. the cost of the project is 500 million. the project budget is 500 million. we are anticipating about 3 88 in pre-construction demolition and construction and about 112

million in [speaker not understood] architectural engineering construction management [speaker not understood] and other soft costs which accounts for 78, 22% difference between the two. the next slide i'll be presenting the fiscal feasibility on behalf of office of economic and workforce development. adam [speaker not understood] who is out of town today. the fiscal feasibility and admin chapter 29 requires that the board finds the project fiscally feasible and note that determination. and, so, some of the few highlights of the net benefits to san francisco are 7 34 million in direct and indirect impact through fiscal year '26. 5.8 to 7.6 a year in additional general fund tax collections. a net increase of 33,480 jobs through 20 22 over the next eight years. *

3,400 in 7 one-time construction related jobs. the advantages here, it allows us to leverage the private sector to meet the convention demand. it limits general fund in long-term debt capacity to transfer adopt district formation. and as i mentioned earlier, some of the public benefits would be surrounding the streetscape with pedestrian safety, tourism, and operationses and maintenance. and now i'd like to turn it over to nadia [speaker not understood]. >> good morning, supervisors. nadia [speaker not understood] from the office of public finance. this slide highlights the [speaker not understood] up front. there are three potential forces. the city contribution which is an annual appropriation including this year's appropriation of approximately 1.7 million and an additional 2

plus million proposed for the next fiscal year. there is also a combination of district assessments if this board approves the formation of the district and establishment of the district. we could potentially use some of the assessment from inception of the district through the construction period and a total aggregate of 82.6 million plus [speaker not understood]. in addition we are proposing an issuance of certificates of participation to fund the project and we are also asking that we would be authority to issue cop to issue commercial paper in the project and fund the project and sell the construction period. so, that shows you an aggregate of 500 million which is equivalent to the project cost. the next slide is a highlight of attachment 3 in the budget and -- >> supervisor mar?

>> ms. [speaker not understood], can i ask how this is different than how we financed previous expansions? >> thank you for that question. so, in the past the voters have approved and the city and the redevelopment agency now successor agency have issued lease revenue bonds to do construction from moscone south, moscone north and moscone west. and in that order. and those were backed by hotel tax revenue. in addition, in 2009 the board approved the delivery of certificates of participation as well as the establishment of a [speaker not understood] improvement district allowing for the district to levy assessmentses of up to 1.5% to do improvements. .5% of that was available towards improvement of moscone and the city also contributed by way of certificates of participation to the 56 million improvement that is now at moscone. so, we've already established

that partnership whereas in the first three pieces were voter approved and this is nonvoter approved. and we also partnered with sf travel improvement. we are now proposing as part of the expansion another collaboration. so, this is similar to what we've done historically. >> thank you. >> this slide is a highlight of attachment 3 of the budget analyst and legislative report. it shows you a huge cash flow. we are proposing a not to exceed amount of 507.9 million, and we've assumed an interest rate of 6%. we are requesting that as part of the approval you authorize the [speaker not understood] to use commercial paper during the construction period. and this would allow us to reduce the [speaker not understood] costs on the transaction. we are proposing an issuance of -- in january of 2017. we are also proposing a final

maturity of 2,047. [speaker not understood] appropriately expires in 20 45. we are proposing two years further out. as you know, the med assessment, if you approve this, would allow the med to collect and assess up to 1.25% with a .5% starting in july 2013 through the calendar year december 2013 and the idea is that because of the existing 1.5 in place currently, the improvement -- the renovation of moscone, .5 expires in december. so, started -- so starting in january 2013, that would increase to 1.25. the remaining 1% from the first tid would stay in existence but would expire in 20 23. that is not available to this project.

* 20 23. so, the 1.25%, the city would get 87.5% to 82.5% declines to for the first 10 years to 10.7 and remain 10.7 million flat throughout the term of the debt. i should also note that as part of the approval of 3the improvement for moscone, the board approved [speaker not understood] payment through april 2018. >> technical difficulties; please stand by >> and the 8.2 million is, as

it were by background, an annual appropriation by the general fund, making the convention visitors bureau rather than applying it to its operating budget. the proposal is to reallocate toward the repayment of cop. these are not new dollars. these are dollars that have already been committed historically to the convention [speaker not understood]. the next slide is the sequence of how the flow of funds would work. as you know, by requiring 6% proposing 6% interest, it is way higher than your typical -- the current market. in addition, we assumed in looking at the med assessment, if you look at assessment 3, that there are no -- it is just a cpr of 3%. it doesn't assume any additional growth in hotel tax revenues and so on. by using those conservative assumptions we have discussed and in agreements with sf

travel we would establish a stabilization fund of approximately 2 million. and the idea was by looking at the last 10 years we realized [speaker not understood] general tax revenues were volatile. the idea is you could essentially get a 50 million loss over a given period. so, the idea that this account [speaker not understood] and would be replenished over time if the city should use it. additionally, using conservative rates, that could potentially be situationses where the city's component in addition to the 87.5% of [speaker not understood] would not be sufficient to pay debt service. the idea would be the city would pay that debt service and then get reimbursed with future collection. additionally, the [speaker not understood] fund is for the final -- the 20 47 maturity, which would -- because we're asking for an extension, we don't know what the market would be like.

we proposed going further than the 20 45 expiration date of the district. this would allow us flexibility of future dates to take that out, but it just allows us to put money aside for that future payment. * additionally, all these extra surpluses, if you can look at the cash flow, the first few years are the most constrained because of cash flow reasons. and the back end is potential for surpluses. we are proposing that that goes to the med for improvements to the existing campus as well as future improvement to moscone. so, the way we are proposing is that the city would collect the assessment and we would withhold what is required for debt service. and we would give the delta of the 87.5 million to the med. and if there are any surpluses, we will fund all this [speaker not understood] and transfer the delta to the moscone improvement district for the future expansion as well as

capital improvement. * to the district. the next slide highlights the supplemental appropriation request. we are proposing a not to exceed amount of 507.8 million with the 6% assumed interest rate. we are showing a amount of 484 million. it would fund the project fund including repayment of commercial paper and [speaker not understood] which is required in these types of transactions which is almost equivalent to 10% of the transaction. and we are also proposing a capitalized interest. as you know, the project is expected to be completed in 2018. we would sell in 2017. so, there is still an 18-month period. so, this is an estimate of what [speaker not understood] would be. and [speaker not understood] underwriter's discount. so, you can note there is a [speaker not understood] $25

million cushion. the reason we're requesting that is that to address market conditions, the fact that capitalized interest is very costly. the 41 million in deposit is for 18 months. for every year we have to sell it earlier, it will cost the city approximately 29 million. so, we wanted that flexibility. additionally, we are going from -- if the board approvals the whole entire transaction including the cop, the establishment of the district would have to validate this transaction. * approves when you val dade you have to be as specific as possible. if you make any changes you have to start the whole process and we wanted that flexibility. i'd be happy to answer any questions with respect to the financing. >> so, [speaker not understood], thank you for your presentation. i know we spoke in detail about this before. ran through the cash flows. i guess thing something, a topic for a future date, but something we talked about. what's the interest rate difference between commer