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Monday, August 01, 2016
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>> >>
>>[Gavel]
>> good afternoon everybody welcome to a special meeting of the san francisco board of supervisors budget and finance committee. Monday, August 1, 2016. My name is mark farrell I will be chairing this committee. I'm joined by katie tang as well as by supervisor norman yee and supervisor mar as well. I want to thank sfgov tv for covering the meeting today. Mdm. Clerk we have any
announcements?
>> please silence all cell
phone electronic devices.
>> thank you mdm. Clerk. All of you involved in our budget process this year as we started late today we just came from opposite signing with mayor we can only thank you for your participation at congratulations as well. With
that mdm. Clerk: one >> item number one, >>[Reading code]
>>thank you very much. I
believe we have the mta to speak your?
>> June supervisor. Real
estate development manager. Thank you for editing in our proposal resolution. The nine year master license agreement
with new cingular wireless pcs llc, it is another new source of revenue for the agency. So we are not here to spend money today personally here to make money. And we thank you for taking the time to we have two very slight minor amendment to the purple soul that we would like to request. One is just completing the name has all an omission in it and adding the pcs, to then entered and the budget analyst will bring that up. Also, a reference to the
planning department a sequence determination committed by the sfmta a environmental agent. If you questions let me know. These agreements mure previously approved agreements back in November 2015. >> thank you. Colleagues have any questions be one with the budget analyst report? Can we go to that?
>> good afternoon Chairman
Farrell and members of as we show on the page 3 there's a scale of rent paid for each of these altered the plan on having 75 polls at this time.
The rents range from 4000-5300
polls to scale proposal over 50. Our estimated revenue on this is $3.1 million over the nine years that the agreement based
on average 2016 of that 4100 dollar purple. It goes up by 2%
per year. If you have questions? We recommend approval >> okay. Thank you will open this up to public comment. Anyone wish to comment on item number one? Not think so.
Public comment is closed. >>[Gavel] >> with that and have a motion supervisor tang >> thank good as I said on the past various different departments I can to support more of these companies
utilizing existing city property to put these antennas on versus deep inside communities in front of residences on. So, with that said I would like to make the motion to approve the minutes mta has approved and cement board as amended to the full board with a positive recommendation >> as a committee report did
thank you mdm. Clerk motion by supervisor tang. Moved and seconded. We can take that without objection >>[Gavel] >> mdm. Clerk please call item number two >> item number two, >>[Reading
code]
>> thank you mdm. Clerk. I will turnover in the second two supervisor mar is a sponsor of this legislation before I do make a few comments on my own. Given I think the nature of
this item for my perspective, this is one of the most misguided proposals I've seen during my time on the board of supervisors. It is one that will only serve to further divide us as a city. Is that of building the necessary bridges oh keep us together and for learning anything from the national presidential debate there's a clear difference between those that want to divide us and pit us against
each other as a country some our not welcome in our country, and those who wish to unite us and I believe we are stronger together. In san francisco this is no different. The past few years the number of actions in our city that sought to demonize the technology for causing if not all of the elements that we suffer as a
city and for my perspective, the reality cannot be further from the tree. As a city, I don't think we should subscribe to the politics of donald trump
and the republicans saying certain people are not welcome here in san francisco. It's not the san francisco I do up and it's not the san francisco I believe in. Members of our technology community are san franciscans. I believe for one believe we should embrace them
and those one new to our city seek to engage them rather than demonize it is a philosophy I believe we should subscribe to at a national level and we should walk the walk and talk the talk here in san francisco as well. In terms of the legislation itself there's a
few things I want to point out why I very much disagree with it. Aside from his overall thesis. First of all, I will not support legislation that is going to seek to push us into the next recession here in san francisco. It May seem like a lifetime ago in our city but
just a few years ago, in the great recession coming out of it when I first came into office in city hall, with double-digit unemployment in san francisco here locally and
hundreds of millions of dollars a vital public service dollars were cut in the budget. I do not want to go back to those
times. I would venture this war does not want to go back to those times either. During budget deliberations your
committee a controller controller emphasize it is to statistically we are extending the longest but not of economic growth as a city right now and dangerously close to having to the next recession just from a
time lapse perspective. Next economic junk turn whether we like it or not is going to come in I come up for one, will not support and don't want to see our board supporting policies that would push us in that direction. This policy has a
two potential to do that. Second, as I mentioned before my belief in scapegoating one specific industry one specific
group of san franciscans. To me, it's un-american and it's on san franciscan. Housing prices have today which we can speak on for volumes is not a
black or not a result of this industry. It's due to lack of
planning the of those that can be forged at least able to do everything in our power to remedy the situation I do want to stand by and let someone dialogue and pit one group of
people against another here in
san francisco. Third, from the history perspective what we don't over the past two years inside of city hall. Just a couple of years ago and consensus fashion, the board of supervisors and the mayor came together to reform our city's outdated payroll tax and switch it to a gross receipts
tax across the board. At the time we were the only major city in california to appear all tax. It was proven it was limiting job growth and new employment opportunities. Over 70% of the voters of san francisco can together to approve this change. In just four short years later, were
seeking to overturn that mandate . The idea for my perspective reinstituting a payroll tax it
just simply the wrong direction. We know it will kill jobs and force companies to leave the
city of san francisco. I simply don't understand why were going to be advancing policies that will hurt our city and not make it better. In addition, just before this committee convened
earlier today, our comptroller's office and the
office city chief economist
released the report that would this legislation would cost 1000 jobs. The city of san francisco and actually make
housing less affordable. Again,
third-party analysis as this will make housing less
affordable in san francisco. To me, this is more about politics
than policy and seeking to further scapegoat a group of san franciscans I believe should embrace your innocent. We're better than this. I believe we should be focusing our efforts on existing measures on about and for that reason I will be supporting
this measure today and if my colleagues the authors, don't do it themselves I would love to entertain a motion to table this item because I don't think
this should see the light of day anymore in our secured with that, turnover two supervisor
mar. >> they determine farrell. I'm glad that supervisor peskin is here. The other co-author supervisor david campos I'm not sure these hundred join us as well. I've never been associate with donald trump or calls
un-american before in my life. I will just say that when we hear from the public comments will you will hear from many communities that are not
feeling the benefits of the
five-year tech boom from our cities from small businesses to residence, seniors and disabled
people and many hard-working san franciscans that are feeling the fear of losing
their communities. I've never been called divisive as well and I know that the grassroot campaign we are building is about uniting communities and
neighborhoods across the city could I will just say with supervisor peskin and campos
and many of the committee coalition representatives from your jobs for justice san francisco, ace, lines of california community empowerment as the rising follows grass-roots organizations within, coalition on homelessness and others, we are about building community. Many of his call san francisco
home because of the we cherish the vitality and ingenuity and creativity and diversity of our
communities in the five years of the tech boom, though, have
strained the affordability of living in the city for small
business among four artists,
for tenants, residence for small homeowners even. I think it's increasingly difficult for
many working families seniors and disabled people to remain
in their homes and the fears I can I have the fears, to, being
pushed out of san francisco into another city because it's
so unaffordable and I think there's a clear connection with
the five years of the tech boom and the various tax breaks and benefits given to this one
sector. I think, this is reasonable legislation that would make tech corporations and these are billion-dollar corporations and focus on the big tech corporations to pay
their fair share in taxes so we can better keep residence in their neighborhoods small businesses running and ensure everyone who call san francisco home can afford to live here not just a 1% with a.1%, for
example. This measure we call the homelessness and housing impact tech tax. It assesses 1.5% workforce expenditure tax on large tech corporations
based in san francisco. It funds affordable housing and homeless services. We also are
considering a general tax that would not dedicate the funding but for this discussion is a special tax. It also, at this urging of supervisor peskin would reduce fees on small businesses because we know that small businesses are also bleeding in the city a budget and legislative analyst report
in 2014 show that in the first tech boom I think we were
losing about 500 businesses a
year in the 90s, but by 2011 -2013 and 2014, we are losing about 4000 small businesses each year from the city. So, I think the relief introducing a fee on small businesses is one small part to address that bleeding of the small business sector as well. About measure would raise 120 potentially over $140 million and I think report you cited many people
will speak to some of the data
in it but also how we need a
broader overreaching or override arching report looking more at the former housing benefits and looking more carefully at the impacts and the benefits of this housing and homelessness impact tax. The ballot measure brings in that 120-1 40 million to preserve affordable housing
and to go towards homeless services as well. I think it is about requiring large tech companies to pay their fair share. It also helps address the industry's impact on the rising rent higher cost of
living and economic instability that I in many residents and small businesses the oh in san francisco. I also want to say, two, the city has offered as
you know supervisor farrell billions of dollars in tax breaks to a handful of successful tech companies since 2011. I think eliminating a key source of revenue that would have helped improve our city I think the chronicles coverage
from a few years ago the headline was companies avoid $34 million in city taxes thanks to the twitter tax break. There's been a number of other measures our board has
passed as well that are that example of eliminating key source of revenue that helps
improve our city. I think the tech boom also has priced many
long-term residents, many seniors and people with disabilities as well as the merchants out of places to live and make a living. The tens of
thousands of new tech employees earn on the average two times that of an average san franciscan and in many ways,
it's leading to an
affordability crisis. I think right now the character of neighborhoods the soul of the city as some call, the beauty in the fabric of our beloved communities is been lost and I think we have to find solutions to address a. I think this is a reasonable one that provides concrete dedicated streams of funding for our affordable
prices as well. I want to say, too, mom and pop shops and working families are facing that fear and we will hear from
many in the audience and this is a simple measure that would
require the large tech companies again to pay their fair share and provide him
anyways options for many of the
long-term residents to continue to stay and thrive in san
francisco. With that I want to hand it over to supervisor peskin for his comments.
>> supervisor peskin
>> thank you Chairman Farrell. The Chairman's strong words notwithstanding, I don't think
this is about demonizing any
person or any organization it I think this is really a conversation that is overdue
about san francisco business tax policy. I was around in the
days when san francisco actually had an alternative tax structure where we had a gross
receipts tax and a payroll tax. I was one of the members of the
board who had to settle the lawsuit that was brought
against the city and county that gave us hundreds of millions
of dollars of liability, and as a result of that settlement, we abandoned our gross receipts
alternative and ended up with a
payroll tax that none of us, whether jim lazarus from the chamber of commerce or progressive supervisor from the board of supervisors like I
agree with chair farrell that we the payroll tax was a disincentive to drop growth in
san francisco. In working with the comptroller's office in the city attorney's office, we tried to figure out a gross
receipt structure which required a lot of research in years of work and ended up with the gross receipts that was
passed on the ballot, which unfortunately, by the way,
disproportionally impacted many of the small businesses as the registration fee went up
significantly not by 10%, not
by 5%, not by 20%, but I 100% the smallest businesses in san francisco, I know, because when I was off the board of supervisors I was one of them. Whose business registration we went from $150 a year and $300 a year and below the gross
receipts minimums. Having said
that, this is a conversation good time has come. I think everybody in san francisco in
the bay area while we welcome the jobs while we have
accommodated big tech in many
ways, knows that there are a
handful of billion-dollar, plus
companies that while they brought jobs, have had
remarkable impact on the city. This is a conversation and whether we got it perfect, whether there's different ways
and as a matter fact ted egan leads us on a potential other path, it is a conversation that I think we should all take very seriously, which is and I say
this is somebody who voted with two other members of the board against the regressive sales tax measure that will be on the November ballot. I come from a
background that says that the people who are most well off in our society should help pay for the people were the least well
off in our society. The aggressive sales tax that we put on the ballot this fortunately impacts the poorest
people in our society. The tech tax like this, actually could help deal with some of the ills of society that have been exacerbated in this economic boom. Whether or not this is the right way to do it, this is a conversation that is not going to go away. Mr. Egan says committee, let us look at the gross receipts data that is
come in and perhaps it is about actually changing the
incremental tax rates as a
gross receipts tax for big tech
companies, and 2018. Having said that, I want to thank supervisor mar for having the courage to start this conversation. I hope that this
will go >>[Applause] To the
full board-I hope this will go to the full board if, for no other reason, that all of us can have the beginnings of this very important public policy conversation. Then, let me say a few words about tech. Like everything, it is not
monolithic. There are small openings there are big companies. There are huge companies that have been
incredibly philanthropic. There
are tech titans who have been how should I say it nicely, polls in a china shop relative to politics in san francisco.
Who have had disproportionate
outsize influence within this building and it is time for
them to know that san francisco and this board of supervisors is willing to undertake that conversation. I think that is
very american. >> supervisor tang >> thank you supervisor peskin
for recognizing, yes, the tech industry is not a monolithic industry many different players and types and sizes here in san francisco. One of the things I
think I fundamentally have an issue with in terms of the
proposed measure was some of the language in the. For example, when we are saying in
this measure, that quote, that the knowledge he driven housing prices also brightens the diversity of our city cherishes because technology companies frequently to not employee
workforce reflects the diversity of the city as a whole. More vulnerable populations and children disabled and seniors often rely on fixed income been hit hard by the housing christ or second the comment says quote-unquote revenue measures such as homeless and housing impacted technology facts establishing ordinance are needed to old technology companies accountable for housing availability and cost in san francisco and to provide funding for affordable housing programs and homeless services. I quote those two parts of this because my fundamental issue has been we have attributed our
housing challenge to just one
industry. It is written very explicitly here is been done so. While I think there's many
many issues that we face and that there May be some contributory factors come I don't think we should single-handedly say it just because of one industry that
people are beating their houses and so did I to like supervisor mar am a renter and I also wonder what they'll be with to stay here in san francisco. So, with that said, I know there's
been a lot of focus on the
so-called quitter tax break for
midmarket and supervisor farrell mention, it wasn't that long ago we were very dire circumstances here in san francisco and the reason why he was brought forth in the first place was because of that circumstance. So there was a reference to some of the impact
that midmarket, sorry, central market payroll solution had. So, I want to check in with the controllers office because I know those airport picking out
about the impact of it and wanting to know, and yes some of these technology companies did get a break through this
proposal which will the minor sin expire in 2019. But was
also the next impact some of which I was fully positive to
the city?
>> [Inaudible]
>> that's fine.
>> supervisor yee
>> thank you Chairman Farrell.
First of all, I want to say
many of the issues that this
ballot measure would help fund
a really good causes. There's
nothing in there that says let's not fund these things. In
fact, whenever we introduce
ballot measures and ask for additional revenues, it's usually nobody arguing about
because that would help funds. Most of our discussion around
revenue is always individually sort of frames whether it's
fair or not there for somebody. When I voted against irwin went against the parcel tax to pay for trees, it was not so much I
didn't want to pay for trees but I do not think it was fair to tax our homeowners to pay for
the trees. I didn't say that [Inaudible] A tax someone like
homeowners to be a villain. I think we need to get away from
that type of discussion. And just say what it is we like about someone or not. When I went against the sales tax and
I'm not against that we share more resources for
transportation or to help the
homeless, but I felt it was not the right thing to do in terms
of who we are going to tax. So,
I would keep my discussion yes
these are good causes but I personally don't know, not
convinced, that this form of taxation is something that I
can support right now. And that
I like to hear the arguments as
much as possible. On this. >> supervisor mar >> I just want to respond to a
couple of the quotations that
Chairman Farrell brought all on jobs and I would just say that
in my reading of the report there is almost no job loss
over a 20 year period or what supervisor farrell did not state that number stretched over 20 years so it's about a
couple dozen jobs lost but the
benefits are not in lysed as
carefully, I think, when you invest in homeless services were the economic benefits of people that of homes and can be joining the workforce at times.
Also, the lack of an analysis when you funds more affordable housing so people have stability in their lives and it would be tens of thousands of units over for the housing that could be developed to small size acquisition fund were many other ways in the benefits of
people been stable in their communities and serving their small businesses and neighborhoods I also think
there is one other key point
that was brought up by
supervisor farrell. I think though the report says housing May become less affordable for employees I think it's focused on the tech company employees large tech companies, if salaries are reduced for example. So, for tech employees, housing May become
less affordable but for the
rest of the population, more
affordable housing really allows residents who do not work in the tech sector and are struggling to live in their
homes in our city like many families I know in my neighborhood, that there are tremendous benefits and I think
this analysis, and I think we'd other analysis, two independent ones, from hopefully some university researchers who have
been looking at the tech sector room in regionally around the companies but also its impact on the housing crisis. I don't subscribe to the notion that supervisor tang said it's only the tech sector but I think it's a major factor on the affordability crisis. I think an analysis that ignores the impact on housing costs of the significant increase in the supply of affordable housing that would be created from the 120-140 million dollars a year this would probably be the
largest amount of affordable housing and even larger than the mayor's affordable housing bonds from years ago. I think the primary intent of the
measure to create that for the housing and stabilize communities is not looked at by
the controllers report and it's baffling to me that analysis, again ignoring the impact of the significant increase in of affordable housing and stability that creates an economic benefits to people as
well. I think the last point I wanted to make was that I know amanda freed from the
treasurer's office is here but my hope is we can have as supervisor peskin said beginning a dialogue on the impact of the tech boom did the last point I want to make from the comptroller's report I was trying to put into context the 90s tech boom versus this
current five years of a tech
boom and it's like small potatoes from the 90s. I think the comptroller's report says
that by 2015 the technology sector was three times as large
words important as it was in at the height of the original.Com boom. This legit a lot of suggestions it's more stable because of many different reasons and why the fear of a downturn is not as likely as it was from the 90s tech boom but I want to understand that more. But also the impacts on the affordability of our city as well. I guess, with that I would just say I'm looking forward to the dialogue and
like supervisor peskin I would appreciate if this could move forward to the full board for dialogue even if it's voted with a negative recommendation by this committee. >> thank you supervisor mar. I
know this report is now quoted
here in committee 10 egan is not hear our city chief
economist but did want to offer
todd rufo I know there was some comments on certain parts of the reports. Mr. Rufo maybe before you go I want to say a few comments in response to some of the dialogue here. Agreed, this tech boom is very different than in the 1990s immolate 90s. The major
differences the.Com boom was based in silicon valley and this boom has been based in san francisco get that clearly the difference. The jobs are more here than they are in about it
although silicon valley is going tremendously as well the same time. I think it puts a spotlight on the fact we don't produce enough housing in preparation for what the situation we have today and the
supply-demand balances out of whack and are secured I do
think it is the old political trick your the board of supervisors when you disagree with a third-party report to question the author. You
question the analysis behind it and I think for my perspective,
teddy egan and rosen and whether I agree or disagree I do take them at face value. I
think they've done as some of the comments are, there needs to be a lot more dialogue and discussion about this topic for my perspective reports ready for prime time is only ready for the board of supervisors to boat let alone the voters of
san francisco. In any case and others might dialogue to come and I'm sorry Mr. Rufo for taking your time up
>> thank you. Todd rufo. As
supervisor farrell's mentioned either member the debts of the great recession we had double-digit employment rate half billion dollar budget deficit and san francisco faced
neighborhoods with empty storefronts and uncertain future. I will also number how
bad those tough times were and deeply aware of the challenges that we as a city face today.
Whether it is the housing crisis , the fear and worries of displacement for small businesses and nonprofits and the fact that there segments of
the population of long-term employment in san francisco who
sat out the economic cycle. Oewd and sister agencies are working every day to address
these challenges and drive shared prosperity for all the residents. However, with the greatest respect to supervisor
mar web work closely with your set from believe this proposal's not the right
solution. Voters waited in 2012 and said taxing jobs is bad
policy. More than 70% of the electorate at the time said to get rid of the payroll tax and moved to the gross receipts that. Honestly this measure would bring back the tax on jobs and lead the only city in
the region that taxes the payroll tax again putting this in a competitive disadvantage relative to those locations in the businesses making choice about where to put those drops. I particularly am concerned about the types of jobs that would be moved out of san francisco get we've historically seen that as cost of san francisco go up
businesses tend to choose the lower and middle wage jobs to move out of the city. These are exactly the jobs when he to keep in san francisco as a way
to provide opportunities for residents. We have also seen that spending by technology
companies as critical factor in providing employment opportunities and economic activity for those in the
construction industry opening tech offices or small businesses providing food services for local, good within a third of our recent new jobs are these tech driven indirect jobs small businesses local manufacturers service providers and construction firms. Last week the small business commission voted in opposition voted not to support this legislation. Additionally, I too am concerned President The sets and specifically singling out specific industry for
payroll tax. We brought before this committee last year the economic strategy for the city
which required by voters and this is not consistent with
that economic strategy. Other employers in the city and other
industries would be rightfully
concerned if there's a potential tax targeted towards a better
industry as well. I worry what
chilling effect that might have on employers looking to grow
jobs and what that says it helps influence their decision would not to grow those drops in san francisco. Finally, it is our assessment the proposals not a solution to the housing crisis. Certainly the proposal
does generate revenue to be spent on housing and homeless services but as chair farrell mentioned the comptroller's
office report shows this would result in a decline in earnings for workers in every industry except the social services intercepted a decline in earnings. Taking into account
the decrease in housing prices because almost everyone is earning less that's why the analysis of teddy egan chose the proposal would estimate housing more expensive on average. Additionally, this proposal does not fundamentally address the fact that san francisco is a great place to live and people want to live
here. If anything, moving tech jobs out of san francisco and those jobs locating outside of the city and elsewhere in the region would only serve to exacerbate our transportation challenges. Since tech workers
can so choose to live in san francisco I want to address one comment am not sure if the
console others comptroller's office is it but we mustn't oh maxis tax vision the economic
impact was $7.1 million in economic impact and it was from a three-year report teddy egan
did. Since some of the discussion if I May Chairman Farrell >> that one point
>> yes >> at the time which was open to small business small businesses restaurants as well as technology companies, at the time that legislation was
passed, with the support from various all parts of the board
of supervisors, the central
market had the highest
storefront vacancy rate in this. When the upper floors that were vacant and again I firmly believe and made others May
disagree but I firmly believe that exclusion was critical to turn around and see the revitalization we see in the central market today.
>> thank you Mr. Rufo
supervisor mar
>> I appreciate Mr. Rufo's comments but I believe think the report is so jobs focus it misses the point on the benefits of building more affordable housing and supporting homeless service. I think that's one of the critical weaknesses. It is also fear mongering that's going on in this committee on jobs and I would just repeat again the report concludes that it doesn't really cost jobs. It's
only 870 jobs over 20 years which to me calculated a couple
dozen per year, but again that's bounced off the benefits of stabilizing neighborhoods, residents, and building more affordable housing for the
city. The last thing I think, there's no comparison also with if we do nothing because I think right now if we do nothing will continue to see the bleeding of the artists and arts communities the small businesses as well, and since you mentioned small businesses
Mr. Rufo, just want to repeat, visit the success of the budget analyst report from a couple years ago. During the.Com boom of the 90s, we May have been losing about just looking at
this number around 500 small
businesses per year, but flash
forward to 2013 and 2014, and we are losing about 3700 jobs a
year. In 2014 was estimated we
would lose 4400 small businesses. I'm just wondering
how you address that? If we do nothing we probably will see
more of the bleeding of many of
these sectors, which are also jobs and will also continue to see the fears that I am supervisor tang and others many
of the residents here fear about losing the soul of our city as well. I'm just curious what you think?
>> thank you supervisor mar. Through the chair, one of the
important aspects of the work
were doing and partnering with your office in many ways supervisor as was everyone with a committee to provide assistance to small business and nonprofits and the reason we have been able to do that because of the strong economy and budget that is
unprecedented size today. The tech community as well as other industries in the city are critical to driving job growth
in tax revenue for the city and in turn, other spending elsewhere in the city. Again helping us with the city's ability to write this kind of
services to our agencies and other agencies provide those services to small businesses and non-profits and others.
again, think supervisor those are interlinked. But to that point, supervisors we'd been very specific very very specific and try to strengthen the connection between local businesses and large employers
including technology companies. So, we see the one of our programs the business connect program were directly linking small manufacturers like granola and organic pastry company directly receiving contracts with technology companies in san francisco. That are doing local purchasing
at small businesses. Thank you >> supervisor peskin >> thank you Chairman Farrell. This May be a procedural question where is the city economist?
>> he is not here today.
>> okay. Respectfully, to Mr. Rizzo and the Chairman I totally appreciate having oewd here but it's not a substitute for the city economist. And I take exception to the notion
that it's a political trick when I can ask the city economist who produced the report in question this no
political tricks here but there's a few things I want to say which is to the extent Mr.
Rizzo, you hold as the head of the office of economic and workforce development this is not the right tax it's
interesting to me that when city economist says the payroll
tax is going to 4-500 jobs
that's bad news. It's easy to
say pearl tax? I'm in the
payroll target the good news is that we are going to regain those of the public sector and we talk about training for the
future because inevitably, there will be economic downturns whether it's because
we have.Com 2.0 bust or a global recession, this is how the capitalist tenet works and that is what it is. I don't recall the office of economic and workforce develop coming to this board and saying, that the sales tax was something we should vote for. When you say this is not the right tax respectfully to the chair, what is? >> to the chair, this a different type of tax than the sales tax. This is a tax that
focus on specifically identified codes identifying specific industries and specific we identified in a whereas clause. The sales tax is a broad-based
tax. It applies to a range of businesses including technology companies and small businesses retailers and many others. I think that's the fundamental difference between those two taxes. Just to clarify supervisor, I came up in response to the question from
the chair waited to these office the office of economic and workforce develop an analysis proposal. It's in no way
intended to be and in my up your represents the position of the current comptroller's office. I would just siding publicly stated >> the only other thing I would say is that when the
government through the board of supervisors I think was widespread support by the board and the mayor, to put for the gross receipts tax to supplant the payroll tax, the gross
receipts tax was what before
the voters indeed 70% of the
voters voted for that. But as an admonition, I would caution
that we should not put words in the mouth of the voters that
they had an activity to the payroll tax. We bought them an entire new tax structure and they voted for it. I'm always a little careful about not speaking on behalf of the
voters. >> okay. Colleagues any further questions or comments?
Thank you did I know that we have a number will open this up to public comment it there's a
lot of speaker cards to. >> supervisor farrell either couple people asked to speak at first because they have to
leave as well. Could I call the
cards is the lead author? I will add osama mccall
>>[Calling names].
>> hello. Board of supervisors. My name is gilbert
williams and I'm a native speed san franciscan. I live in the excelsior district am also a
member of ace. First the
welcome I like to say to
supervisor farrell, isn't it true that you are heavily invested in the tech industry
yourself? Do you think that
you should actually be able to
hear this? This issue? Anyway, I'm in 100% support of the tax on the tech industry. I just think they need to pay their
fair share but I want to take
issue as a san franciscan and somebody seen this whole tech
industry take over our city.
With her diverse city problem. The tech industry as a whole employs approximately 4% latino and 2% african american. Let me repeat that. 4% with tino, and
2% africa american. At the same
time, it's at least partly responsible for the displacement of thousands of latino and african americans and working poor all over the
city. As a taxpayer, the general build o'connor drive a
small business here. And a latino, born and raised in the city, I have a real problem
knowing my tax dollars are subsidizing an industry that
does not hire people of color.
To me, this is just simply
unacceptable. Let me say this.
What kind of message as a city government are we sending to our young latino and
african-american san franciscans that we are okay with the single biggest
industry in our city that not only does not hire you, but
it's also okay within them
taking you out of the homes
>> thank you, sir. Next speaker >>[Applause]
>> hello. Thank you eric mar for inviting us here. I
appreciate it. I just have to,
my nurse. Because I was
supervisor farrell, I'm going to look at you I know you're
busy looking at the computer. You know, one thing about me I love the culture of respect but
I was very offended and had to meditate back there and, my nurse because it was very offended that you would compare
me, including a group of people
supporting this tax, tax tax, to donald trump and his culture
of fear and hate. Because, you know, we are not doing that. We
are basically addressing the fact. This is the only city,
the first city, that I have
lived in as an immigrant longer than a year or to get either
living in san francisco for 10 years. For me, it is more than
just a residence it is my home.
I am a teacher. I also volunteer and serve on the jonah commission and some
committees for the city. Unpaid. Even on top of my
duties. In 09-10, I been trying
to buy a home. At that time,
anglicized and late hugh was
not desired but it's basically the last working-class community inhabited living there for 10 years. Having
tried to buy on their sins 09-10 and at that time the homes were really cheap. 400-500,000. I could not
compete to the developers
>> thank you, ma'am.
>> before-
>> man, everyone has 2 min.
>> [Inaudible]
>>thank you, ma'am. Thank you,
ma'am. Thank you. Next speaker,
please.
>> hi. My name is called him from jobs for justices be. We will work with more than 20 groups who are comprised of teachers, nurses, service workers, city workers, workers who make the city run and who
are being displaced. I hear the supervisor say the tax will divide us. I would just say all us know that the divide is already here and it's growing and that is the problem that we face. This is the city were
99-year-old senior name iris-is facing a vision not about her. It's not about just one indigent cases it is about other seniors. This is about an
entire city that is going wrong. We have a project people think we can build our way out
of the project the project in the mission 494 square units
are selling for 644 g. We have two bedrooms at that place 19 for $7500. The huge majority of
us cannot afford this. Right the venture capital point into the city. This is not about getting one group of people against each other. This is about corporations paying their fair share. We have uber valued at $66 billion right. This tax is a first step get this the
way to bridge the divide by having corporate tech corporations pay their fair share and the fear mongering we
are hearing of trump being
either out the fear mongering is happening by the opposition by tech companies and their fun people saying would lose 1000 jobs when actually it's 870 jobs over 20 years. Meanwhile,
this tax will generate $2.3 billion over 20 years. That is
a housing benefit right. Thank you. >>[Applause] >> thank you. Next speaker, please.
>> good afternoon my name is tony vogel as good I work with senior and disability action.
The tech sector has thrived in san francisco. For some, it has been a windfall in millions
perhaps billions of dollars. But the success of the city's tech industry has had negative impacts. The influx of tech workers have driven up rents and forcing many who were once
housed into homelessness. In the last five years, either actions have risen nearly 50%. Median area rents for one
bedroom have eclipsed the $3500 mark. Seniors have been hard hit by a housing affordability crisis. With the income inequality gap swelling with
tech corporations benefiting from tax breaks while taking in millions of dollars in profit, it is time protect to take
responsibility for its share of the crisis it helped to create. Per instance, seniors on ssi have not got a raise and they
live on a paltry sum up $892.40 a month. That's about $14,000 a year in the city where rents
are increasing. Delia este abc seniors evicted were whose housing stability is threatened. We call the tech industry to share in the responsibility for our current prices with the revenue that
can be raised per instance funds can be used for housing through the community land trust that can purchase buildings. Again, tech needs to put the word, share, into practice. So that it doesn't
unlike the millennial tilt to the benefit of one section of our community at the expense of another. It is sharing responsibility, not demonizing. Thank you very much >>[Applause] >> thank you. Next speaker, please. >> good afternoon supervisors.
My name is-, political court, nader at san francisco rise. I am here to speak in support of the tech tax on technology
companies. On affordable housing and homeless services good I am also here to speak as somebody who has worked for
many years in the tech companies as an engineer who fully supports this. Our city is facing growing inequality is
not controversial. The type that room has raised a few individual boats leaving most of us in the mire of growing
poverty. Tens of thousands of handsomely paid technology workers are reshaping our city's housing market. This is a fact. The result is hundreds of thousands of working-class families in our city are struggling to stay in their homes and streets are simply exiled from the city that night
either helped build or actually concretely trying to build right now. San francisco's
should not be treated like externalities by tech models and venture capitalists. The
proposed tax on technology companies is a modest modest amount for the sector that is
making billions. But the 120 million it will raise a year would have a significant positive impact in addressing the consequences that the tech sector successes brought on san francisco. This tax is truly a
fair share tax it's a practical solution to our crisis. Please, allow voters to have their speak this November. Thank you. >> thank you. Next speaker,
please.
>> conducting supervised. Thank you for me to speak my name is cindy. I'm here speak in behalf of the housing rights committee. I live in district 9 and I work in our office in the richmond. At housing rights committee we [Inaudible] In the
morning and are hours we have seen displacement happening by any means necessary and what that means actually in the richmond we are seeing
[Inaudible] In the case according to the housing balance report published by the
city. By us having unprecedented rate and also harassment. Tenants are being harassed for being able to stay in their home. We've only been out in the richmond for the past six months but we've been following some of these evictions. We see units that were previously rented for 500-600, 700 seniors who been there for a long time go back on the market for thousand,
2000 $3000. These units are being marketed as being close to tech shuttles and for highway
truckers. On the doors of our church was seen different homeless folks sleeping on the porch where we share this basic and sometimes different people sometimes the same people. When tech industries are able to pay
their fair share we will fund programs like the community land trust it we do a lot of work with the community land trust we are actually working with him on a building in supervisor farrell district on california and lines. This
building we have three itself four-story building and the of the kind of thing three black women living there for 15
years. But one tech pays there should go find more of these programs and the richmond working six different buildings
were doing the same thing. Trying to get return their ownership of the building to
the tenants. The ability to stabilize tenants like this is directly related to tech paying their fair share. Thank you.
>> thank you very much. I hope next speaker. I will call a few
other cards. >>[Calling names].
>> hello. My name is sylvester-I am a homeowner.
I've owned a home since 1971 [Inaudible] I have been paying
taxes all this time and also in
2010, I nearly lost my home.
After paying the bank, getting these bad loans and I'm a member of a's and they told me
also the supervisor did, I have come to speak of for you before-but I am really done a
really outraged that-how come I don't get a tax breaks. I have been owning this home since I
been paying taxes since 1971
and I feel like discriminated.
That everybody else gets some sectors get a tax break and we
don't. Parking meters are rising up because you're not collecting the taxes because
the city needs to collect the taxes. It's very difficult to
live in san francisco, now. I'm
on a fixed income. It's so difficult now. Everywhere you
go. My neighbors, my child he doesn't have any friends
anymore. This is where I am asking you, [Inaudible] Also
I'm paying a lot of interest in I still can't get a home equity loan because I make so little
money. I should be treated more
fairly. Thank you. I do
appreciate what you been doing. I been here for four years.
Thank you so much.
>> thank you. Next speaker, please.
>> >>[Applause] >> good afternoon. My name is ramon and I just want to bring
the perspective of ima new worker did I said our job like
three weeks ago in the city. Unfortunately, I don't work for
the tech industry so I have to
commute from very far away.
this is, this I'm in favor of this tax because I feel like the best cities are cities that are mixed use. That have a diversity of income and a
diversity of people. With this, when you have an industry like
the tech industry or finance industry and you accumulate all these workers in one place, you are going to have also like
secondary job growth in other sectors and if you don't build the housing that those workers
can live in, then they're gone have to commute and they're going to contribute to pollution and also going to
stress our transportation
system. That is one of the
concerns. The other thing is, a
tax break for a company that
makes billions of dollars, it's
like socialism for the rich and
capitalism for people that
actually work and stay here. So
that is something I just want
to stress that the board needs to think of all the workers, not just the tech industry workers. Thank you. >> thank you. Next speaker, please.
>> hello. Thanks for the opportunity to speak with you get my name is kathy derek. I've been a teacher at city college for 37 years and university of san francisco for 18 years. A resident of the district richmond district about 40 and I at 66 years old wonder if I'm going to get to
live here anymore. I don't believe we are just being divided in the city. My friends and my family are being displaced. They're not in the
city anymore and I believe were [Inaudible] I believe were
asking an industry to get you
to a problem to help find a solution. >>[Applause]. When you say let's make the city
better, Mr. Farrell I'm sorry
I'm an old teacher. Every class
I have I'm sorry every class I have to signal would you please put your electronic devices away. I need your undivided
attention. U2 supervisor tang I'm sorry but this is a frustrating as a citizen who pays taxes to come to talk to
my representatives due to Mr.
Yee. My school is in your district. Do you know how insulting this is to everyone
of us who comes up here to pour our house out to you. This is the problem with the tech industry. We don't look at each other anymore. We'll look at
the poor people in the streets. But too busy looking at our gadgets. That's part of it. I think it's un-american to tear
down homeless encampment and steal the few belongings the poorest people in the city have. We need this tech tax. Fair share tax that. I pay tax good I wanted to pay taxes. I'm tired of the wealthiest getting away would literally murder. In the city. Thank you. >>[Applause] >> thank you. Next speaker,
please.
>> good afternoon. My name is leslie simon. I'm a member of a's and have also taught at city college. Ashley for 40 years and a colleague of kathy's. One of the class I taught for many years women in
the art introduced me to working san francisco ardis. One of whom was yolanda lopez. Now an internationally recognized chicano artist. She and her former partner renate yet as the originator of san francisco great popular day of the dead celebration and cofounder of the galleria and the rise of were facing eviction. Due to community was not unlike the one thankfully propose today thank you eric mar and others, they're safe and secure in a longtime mission building. Others are not so lucky. This past semester one of my students a
san francisco public high school teacher had his well-deserved sabbatical frighteningly interrupted with the news that the building in which he, his wife, and others san francisco public school teacher, and the two children live was being sold. He knew
his family was threatened. If they have to move out of the city, that's a loss of two more teachers. My daughter also the parent of two young children and the social worker in another local high school lives
in a rent controlled apartments. If the building sells another loss to the city we all love. Please, support this measure. Which will keep ardis, teachers, social workers and
other long-lived residents in san francisco. It's only just the tech companies whose employees have intruded into the skyrocketing rents pay their fair share to prevent displacement of the people are
rich and keep the city functioning for all of us. Thank you.
>> thank you. Next speaker, please. I will read a few more
speaker cards. >>[Calling names]. >> hello kitty good afternoon.
My name is-. I been living in the city for a most 44 years. I
live in a very nice place near [Inaudible]. I just don't like
to see my friend living in all
sorts of death in the city. I would like the tech companies
to give their fair share to the rising cost of living. Thank you very much. >> thank you. Next speaker, please.
>> good afternoon. My name is to razz. I live in has started
not only big population in
[Inaudible] My own sister from
chicago came last year. She is retired. I was not feeling well and she asked me to sign the paper, letting go my property
in san francisco. You know, I'm still looking for a good lawyer
to defend me because I cannot
afford to pay anymore lawyers. They of the tenants and this is
my problem now. I've also small business and home owner. Thanks. >> thank you very much. Next speaker, please.
>> hello. My name is sara jarman. I am a member of job for justice in the work of senior and disability action but today I be speaking for
myself and I'll try not to cry. I lived here for the majority over the last 20 years. My husband is the grandson and son of chinese immigrants to the
city. We just recently had to move to oakland because we cannot afford to rent here. In
san francisco anymore. He's a city librarian I work at a nonprofit we cannot afford to
live in san francisco. For me,
I feel very strongly that everyone should have the right to live in san francisco. I
look around my neighborhood that they come not allowed to live here anymore. This is not
a neighborhood for me. This is how I feel as a middle-class person I can only imagine and know about the struggles that people are dealing with were living on fixed incomes and low income in the city. It is always been the case in san
francisco has been a leader on progressive issues. Revolutionary issues in this
country. We have got the tech industry to town. We just bought a lot of economic
benefits. It has been beneficial for some people within the city. That is to brought in more money to pay for social services, but the truth is, they need to pay
their fair share. From what I been reading, even people within the tech industry would agree that they should be paying their fair share. I
don't think it's a monolithic thing but the tech industry is afraid and they will leave if they have to pay. I think it only makes sense to pay tax on
the people that have not been
fully taxed >> good afternoon I'm speaking for the northeast counter committee which we formed in
2013 when 20 was received I was active actions in one street. Within another year another 59 people disappeared from our neighborhood. Within four blocks of my home at that time.
It's about the dismantling of a close-knit community where we always looked after each other with stories told of someone
who lost their job lost their
home and have children but
someone who had money stepped up and limp the money and then said, you pay it forward to the uk to the next guy that goes
through that. We can't do that today. Those of us who never had much money it's been you
did in deeds. He looked after
one another that you do what
you could go into the grocery store to pick up things. It is
what you 08 community. The young techies who have recently moved into the neighborhood
moved in and out are gone. They are gone from early in the morning until late at night. They don't know the neighborhood. They regret they don't even know the neighborhood that they are living in for a couple of years because there never there. So, one way to say they can contribute to the community just as we've always done the
weather was money were deeds, is to pay a fair share in tax. This is not asking too much. This is asking to participate
in your community in a way that you can just as others have always done. So, I fully support this and I think
supervisor mar campos and peskin for bringing this all.
Thank you so much. >> thank you. Next speaker, please. >>> good afternoon
supervisors. My name is jean I serve on the board of
supervisors for the land trust. For four years am a working artist and I've also been displaced by employees that moved here from out-of-state the work for genentech did I feel like I represented intersection of many interesting. Clearly, this is an emotional and complex issue. I just want to address some facts good earlier supervisor mar you talked about tonight have some university researchers discuss actual statistics. With that does exist. They are graduate students that are involved in the inky of action mapping project and they've
shown that between 2011 and 2012 no-fault evictions
increased 47% between 2012 and
2013, no-fault evictions increased 57% and 71% of those evictions were in a four block radius of tech shuttles. I feel
like were getting into this us-them kind of divisive
speech. Chairman Farrell you brought that up as your opening
remarks. I feel like we've seen this a lot as housing while organizers and residents in the
city and it's not really about tech. It's about entitlements. I personally define entitlement
when people are not given the same treatment right. You know, tech workers that they don't
want to be demonized either as other people have commented to
a lot of tech workers feel if
they were not given such entitled especially treatment than they would not be so demonized by other longer-term citizens. So, yes, it is
complex but I think as peskin we much earlier, this is a conversation that needs to be
had. I really hope we give it some thoughtful contemplation and don't just kill it right now. Thank you. >> thank you. I have some other speaker cards.
>>[Calling names] >> I'm john west that I work
with a cynical south of market. The city rainout is pretty lonely place for me. Thank you my friends from childhood want to come back or can come back.
I'm also students which is a well spring of a lot of the ideology also the employees and the businesses. The tech industries I know pretty well for me this is not about those fine tech workers. My friends they don't want to move to the city and paid 6000-$7000 a month on an apartment affordability in the cities will pump a lot of people much
as the people here. I would also like to add unsetting chemistry there. I want to come
back and I want to teach your psyche me close to my family. I don't think that's a possibility anymore. They tech
tax is not something that the punishment coming out of the blue. To vilify tech companies
comedies like twitter have been
tremendously from tax breaks for you. It's time to pay their fair share of is more useful to think of the tech tax as a means to that end and permanent reliable funding affordable housing needs to grow. Reducing this to a supply and demand question for me is not
going to into the problem. This is a chance to get serious about fighting displacement and the tech tax is a call on the tech high-tech sector to step up and come up with some attachment is immeasurable damage that industries them to people here in this room. I also want to end by saying
among nations not metropolitan areas emanations the bay area has the 19 highest gdp. Not
every city in the world can give everyone who lives there a decent life. San francisco can
be a place of prosperity and I think we can do this. Thanks. >> thank you very much. Next
speaker, please.
>> hello. My name is sylvia
johnson. This tax should be
leveled out. Because I have
[Inaudible].I've been
researching on this issue [Inaudible] Parking is the same
way. This is not without police
officers should be doing.
[Inaudible] This enforcement,
therefore the people to be out [Inaudible] Associate. For his
many drunks [Inaudible]. Now I
don't see a point in this issue
that taxes [Inaudible]. I
waited all night long to
[Inaudible] And nothing came.
[Inaudible]. >> thank you very much. Next speaker, please.
>> hi. My name is isaac and I just have a couple things to
say. I just was in the audience and I notice, like, some of you guys are not paying attention I
think it's very disrespectful. I just don't understand why most of you guys are afraid to
stand up to the tech companies. Then, like why are you guys
more likely to pass a bus proposal to put holes on top of buses then fix the homeless crisis that's going on right now? I also don't think-I think the tech tax is the right
way to go. Then, lastly, I
don't think this certain supervisors should compare anybody to trump when the most like they have everything in common compared to trump more
than any supervisor. >>[Applause] Thank you. >> so if some next speaker
cards here. Please come on up. >>[Calling names]
>> hi. My name is sylvia-the visiting committee housing
partnership today. A nonprofit on market that owns in or
provide services as 16 properties in the fan. Mission is to help homeless people secure housing becomes so sufficiently served over 1500 people every year. We do not hold an opinion on the proposed measure but we want to offer some thoughts as a nonprofit
works closely with quite a few tech companies. To various partnerships. We do know tech, these are highly invested in san francisco donating over $112 million in the city alone in 2015. Many companies across
the city work collaboratively with nonprofits such as ours through their foundations and corporate social responsibility paramus. Community housing partnerships, tech partners include twitter google, and a lot of other smaller companies. They can provide invaluable
support to our work. One example is that last year we
were able to launch our -sorry-workforce training center with the sport of some
of these companies which are custom all customizable classes based computer lab where clients build the skills
required to enter the workforce after experiencing homelessness. Again just some thoughts from us without an
opinion on the measure. We know the board of supervisors has put a proposed sales tax
increase on the ballot that if passed would provide $50 million to fund homelessness
and housing. We believe having multiple measures with the same goals is confusing to voters.
We worry more tax increases we propose the more likely it is they will all fail. Thank you for your time. >> thanks very much. Next speaker, please.
>> hi. My name is julian gall. I'm an organizer with the community group a's. Many of us
are here today. We have hundreds of low and moderate
income members all over san
francisco. Our involvement in the housing crisis goes back several years. Several years ago and we haven't actually been calling for solutions from
the city for several years.
You know, a few years ago we were working to follow in the
footsteps of richmond and implement a program that took the loans away from the
investors that held some of the mortgages and give homeowners a chance to say prominently in
the city. We were told that's not practical. That's not going
to work. A couple years ago,
actually, last year, our
bayview members went to the
city and said we want you to work with us on a bayview 2020 plan that comes up with a plan to keep the remaining black
population in san francisco and keep our bayview members with a home in their community. We were met with airlock door at
city hall. We went last December and call for a down payment against displacement, $20
million for the small sites
program for emergency funding
and help for homeowners to stay in their homes. We were met with silence. Here, we are back today with actually a very
reasonable revenue-generating proposal to fund programs that keep people in their homes and we are being told we are unfairly scapegoating the tech industry. Frankie, were talking about a 1.5% payroll tax. This
is a tiny amount. Really just accounts developers have to pay
an impact fee when-[Inaudible]
>> thank you,. Next speaker, please.
>> good afternoon. I'm I am
emily [Inaudible] We strongly encourage you to oppose this tech tax. The tax would put over 3600 jobs at risk across san francisco in all industry sectors and levels of income including middle wage and working class jobs. It could also significantly damage the competitive advantage in technology and innovation that san francisco has worked so
hard to build over many years. This event is help the city grow employment by more than 150,000 jobs. Since the recession May, the fastest
growing economies in the us. By taxing the payroll of the largest technology companies
said be placing a tax on jobs. 1.5% payroll tax could depress employment in the city by 1% and estimated 693 jobs at risk
along with him was because of jobs of the tech sector support. We urge you to reject the proposal that be severely detrimental to the san francisco of economy. Thanks. >> thank you very much. Next
speaker, please. >> good afternoon. My Ms.
Emily schaeffer and him be interim executive director of the jedi one appreciate your time. The time of the many people in this room. They do dialogue about an important issue in our community. Your up is a nonprofit here in san
francisco we have a campus in
san jose and over 400 young adults across the bay area. We empower it else to move from poverty to professional careers. The training and internship experience at which 98% of our adults are employed were in school full-time in
four months of graduation. We have no position on the tech expo want to clear before the housing is a crucial issue for many bird dung adulthood are
young adults are going to lose middle school roles in the tech companies. There a chance of earning a livable wage. Right now one of the great challenges is the commute time competing
with taking three buses to find
opportunities here in san francisco. These are dislocated san francisco families. I also want to be clear the record accurately reflects the investment the technology industry makes in those same young adults through your
object the last eight years we
posted 702 internships at tech companies in san francisco. We have earned $16.8 million in internship sponsorship contributions, $6 million in donations and grants. We recognize this is a crucial issue for the city of san francisco to tackle with in the coming year. >> thank you. >>
>> good afternoon supervisor. my name is alex took representing sf-city technology advocacy organization over 1100 member companies and speak you in opposition to the proposed tech tax being considered for the November ballot. In the interest of time and the fact that many my points have been
raised by supervisors farrell
tang yee the as you to oppose but that's not only because the policy because because of the approach. Supervisor thomas I do not question your passion were resolved the question whether was zero outreach to any these companies do dialogue about this proposal. To discuss ways to collaborate, to discuss innovative solutions to homelessness to engage in ideas and build partnerships not one
phone call not one request did I cemented a package of letters from reputable nonprofits including clyde beatty ymca europe meals on wheels of san
francisco compass family services at united way of the bay area possibly opposing the
policy but the approach. San francisco has always been welcoming and the city that knows how can simply do better. We humbly ask you to oppose the proposed tax and instead reach out to these companies and participate and work with governments on the challenges we all face as residents of this incredible city. Thank you. >> thank you. Next speaker, please.
>> good afternoon. My name is debbie wilmot director of development at hamilton family center. As I hope you know him
up and family center is the go to expert on family homelessness here in san francisco. I also stand here as
a single mother is been caring for a sick toddler the past three days. This days I don't think I can make it an exhausted discouraged and overwhelmed and get each morning I look at my little
miracle and give thanks for her and must draw the stunt to face another day. In both roles as a fundraiser for hamilton family center and as a single mom, I know full well the important but difficult work that we are tasked with in life cannot be
done alone. Both roles rely on the support of my community to
tackle complex issues. Andy family homelessness or raising my daughter to be a strong
thoughtful and compassionate woman could hamilton family center has received tremendous community support since our inception. However the support we've received from the tech community over the past five
years has been exceptional. Salesforce has provided significant funding which helped us to expand our rapid rehousing program and quickly get more families than ever out of the shelter system and into
permanent housing. 18 years ago excuse me 18 months ago, $1 million grant from google
provided the seed funding for
one of a kind partnerships that we developed with the san francisco unified school district and the first year of the partnership we were able to reduce the average amount of time and family expenses homelessness by eight months. These investments are truly helping us move the dial in our work. The tech community is supported us in other ways as well. Volunteers have led drives for children extensive
homelessness and help serve
meals and empowerment aided and teaches how to use our platform for more effectively
spread their word about our work. At hamilton dems and were
grateful for the myriad ways -- because thank you, ma'am. Before the next because I have my last speaker cards and animals that want to speak, please line up. >>[Calling
names]
>> I am a little shy. I wasn't
planning on speaking to my name
is christine. I was born in san francisco and I've seen the
city change and businesses that were around for so many years as a risk rolling up and everything to my wicked close down because they can't afford
the rent. I can only-I was able to still afford to live here by
winning a lottery at an sro and
I jokingly but soon as we tell my friend that lives somewhere
else that might sro is the size
of her bathroom and I'm
serious. Anyway, I am
experiencing-I live in the mission district and I was going to the grocery store in my neighborhood and I was
walking down the mission and young youngster said, hey, go back home. Get out of here go
back home. I live in the
mission. I was I remember when I was like five years old I lived around the corner from there also in the mission.
Then, I came across my birth certificate in my birth certificate I didn't remember
what it says five castrate in the mission. So this guy was half my age. I was born and because of the gentrification that's going on I'm experiencing discrimination and not even part of the tech company. >>[Applause] So I
oppose [Inaudible] >> thank you very much. Next speaker, please.
>> hello. My name is collect
fletcher. I been a san francisco resident for 37 years and believe it or not I moved here because it was cheap place
to live and to be an artist. That's not the case anymore. I'm lucky enough to own my own home because my husband and I inherited money but most people
are not in that position. I personally don't know all the details of this bill and I don't know the tech tax is
necessarily the be-all and end-all for solving the many many problems that san
francisco faces. But, I just need the board of supervisors to know what a serious problem
we are facing in our city, and
a lot of people are getting
very rich and they need to give
back. If supervisor farrell is
concerned about demonization in politics maybe he could start by not calling everyone in this
room a fascist does to compare us with donald trump is incredibly insulting and with
very painful for me. I think a lot of people he owes an apology. Thank you. >> thank you. Next speaker,
please. >> hello thank you my name is tamara dunn chief development officer at larkin street services. I want to thank you for your time supervisors and for everyone in this room to
address this really really important issue. We do not have an opinion on the ballot measure that we are concerned
the tech tax measure could negatively impact other important revenue measures meant to address homelessness in san francisco. One of the speaker said it was kind of confusing to have so many issues. While we like to see efforts to bridge the divide between technology companies in the community in san francisco this is a serious knee. We do have concerns about this measure. We want improvements to create effective collaboration between the
technology committees in the community but were not sure this is the mechanism to do so. We don't know. But street youth services is benefited greatly from the productive relationships and partnerships with some of the leading
technology companies here in the bay area. Over the past couple of years received $1 million in contributions that helped us launch really successful programs that help keep young people from becoming homeless and off the street. We also have over 1000 corporate
volunteers to come and give thousands of hours of their time to help us meet our
mission. So, we hope you understand our concerns over this measure. We look for to working with you to find effective ways that tech can partner with the city and support revenue solutions for housing and homelessness. Thanks.
>> data. Next speaker, please. Anyone else that wishes to speak during public comment please line up and we will take
you in order >> hello. My name is carolyn boughton in I am speaking as a
citizen not a representative of the organization I work for. Which of the california nurses
association. I was disconcerted by a few of the comments made by folks did one person mention how much corporations that are here give in charity but that's great but they write off that charity and taxes, which then is a negative. >>[Applause] Why don't they just pay the tax
endemicity and the people can determine how it gets spent to resolve the issue. Another
person talked about their counsel that so concerned well
that counsel is made up of the
raiders, construction companies, delta dental, bank
capital, claremont partners, so of course they're going to be speaking against this tax. The fairest way to make sure that all of citizens are served is to tax those that they could benefit on the backs of all the
citizens. Not to let them beat out contributions to this charity they deem is appropriate or that charity
they deem appropriate. Leave it to the leaders that we have voted into office to make those determinations. Thank you. >>[Applause]
>> thank you very much. Any other members of the public wish to comment? Seeing none, public comment is closed. >>[Gavel]
>> supervisor tang >> I can do for to supervisor tim our first >> supervisor mar >> I would think is committee
for hearing our community and having this hearing on this important measure. I went again thanks supervisor campos and peskin for joining me. I know this the beginning of dialogue on how we get at sfs share on large multibillion-dollar
companies in the tech sector that had an impact so much on san francisco positive but also the challenges they've created
as well. I want to also just very quickly say that I appreciate all the different comments from neighborhoods and human stories of fears of
what's happening in our city. I'm really putting the focus on
what we do as a city on whether
it's taxation but also solutions of others have said on how to move forward with
stopping the bleeding and the displacement that's going on from within many of our
communities. On questions of
how we work together and rise above divisiveness come I think I'm definitely supportive of that. I'll be talking with alex burke after the meeting as well from sf-city and others. My hope though as this moves
forward this is allowed to move to the full board for a full discussion in I know that we previous ballot measures we've
seen that level of collegiality at this in this body and on other committees. I would just
urge that same collegiality to allow this to move forward. The last thing I would just say is as many of us in the community
drafted this important ballot
measure we do not see it as the end-all and the solution to the problem but a step forward to allow many of our neighborhoods to engage with the tech sector and others. I think reports can come out like Mr. Egan's, and I
appreciate the hard work of a chief economist and the comptroller's office but also our budget and legislative analyst office and I really do think we need independent
studies coming from university researchers looking at not only
jobs and economy but also the housing and homeless services
that come with a measure like
this. I also wanted to acknowledge, too, as we face national politics of demonization of immigrants and
low income people, women and lgbt communities, the comments
at the beginning relating many people that are trying to preserve their homes and their
communities as divisive and as factions and is demonizing, to
me, is not a way of building
broader relations with communities, but I think if we
all try to supervisor that are if we listen to each other and
work together instead of throwing terms like that come I think we would be a better board of supervisors.
>>[Applause]. This is a fair share housing impact tech tax. I just urge my colleagues to allow this to go to the full board so we can have this discussion and decide on the future of it at a board meeting tomorrow. I urge moving this forward so that we can have a discussion at the full board. >> thank you. Supervisor tang
is nice but in deference to
supervisor peskin who is a
co-author. >> let me concur with the chief author supervisor mar and his courage for bringing this for. I want to add one little
piece of history which I think
many people in the government and in the public have forgotten about. Which is that
the city used to actually tax the stock options from our
initial public offerings. It
was a few years ago that
provision was removed and the reason I raise that is because
this is also about equity and
fairness relative to the tech industry used to pay when initial public offering was offered. So, I think that should also be part of the ongoing conversation, whether it's tomorrow or next year or
the year after that. When you combine $34 million a year in the twitter tax break and you
combine the loss of the ipo money that the city needs to realize that's pretty
significant and I think it is
time to have a more fair equitable tax structure as relates to some of the largest billion-dollar corporations that are headquartered here in san francisco. >> supervisor tang >> thank you. A couple thoughts and thank you everyone for sharing your comments with us. I think a lot of it surrounded housing and affordability and the desire to stay here in san francisco, which is obsolete ago I showed supervisor mar. One of the things that they working on to do with the housing situation here in san francisco is to actually create more affordable housing for the low very low and middle income households here. Historically we've actually done nothing in the city drop support this and try to moment to the middle income families living here. Not to
mention family units but not just building studios that are cheaper to build but actually a family cannot grow and stay in
one of those. So all that said, I been pushing for efforts and many of you have probably read about but I can actually name maybe three supervisors here in
this committee that actually have not been supportive of what I been working on here. It's been really challenging it is to call it out. We have to do more to find alternative ways to support affordable housing development here in san francisco. If I is a website supervisor taking the risk to
do that, to put myself on a limb , to upset people don't want housing be developed in the backyard, well I'm doing that because I do believe there's opportunities to build housing along the transit and
commercial corridor where the right now the areas where the one-story buildings along transit corridors do we could do more there. I think that calls for creative solutions
not just for one of percent of what housing but also for market rate housing so people can't afford to live at market rate has and can go there so it frees up the units that are more affordable for the people
who need of lower income housing. So that something that again I've been putting myself out on incredible limb four is represented by the westside
which has historically been very insightful as he developments. Secondly this month I'm actually can be launching a program very soon in conjunction with the mayor's office of housing community development and two nonprofits where we are going to try to find solutions to bear all
people almost like eight home matching service matching people and matching homes modeled off of a successful 30 year old. In san mateo. We are trying to pair a people were 90% of the area median income or below with people that
housing and might want to offer some space to a tenant. So again I'm trying to find that creative solutions hearing none, and are very challenging with you in san francisco so that more different types of families can live here so that we can continue to promote the diversity in various cultures we have here. Which is what attracted many of us to be heard. So come I know again this conversation is around a tax on technology but really
hearing from all of you a lot of the underlying comments around affordable housing. Let's work together to do that and let's stop fighting those efforts. So, come falwell picking up my efforts on affordable housing bonus program that lets work together. >> supervisor yee >> thank you. As you can tell
from the comments of supervisor
tang many of us are trying to find different ways to get to
the same problem. They're just different ways there's no one
solution to this. I commend
anybody that presents any
effort to find the solutions.
That is I think I might've said
that earlier that the goals of the revenue-I don't think anybody is arguing with that.
It's really what is the process
there. Yes, the density bonus piece that supervisor tang talked about, I think we all
voted for it. 11-0 >> that was one of percent
affordable portion only. Which we build on average one or two each year on the city. >> thank you but we didn't
vote for that. One of the
things I want to do is today is
to-I don't think this is the solution. I think there is a
problem. When Mr. Turk came and
said supervisor mar did not
reach out, I would like to say that I don't think many of us
have reached out either way.. So, whether we could decide one way or another I face criticism
for me also and for the tech company for not reaching out.
So we all have something some
blame in this. What I would
like to do is I would like to move this out of committee with
a negative recommendation and just to have that discussion at the full board. I think is
really important discussion that it be continued and even though I don't feel like this
is the solution, we could generate other ideas as we keep on continuing to talk about this. So I am making a motion.
>> with a motion by supervisor yee. Before we start voting on how to proceed here, I
appreciate the comments. I think the supervisor tang mentioned, so much of it was talked about housing displacement. Things I
don't disagree with either. The past four years budget chair we put record amounts into new afford of a housing development. We prepare for the
long-term as well. I know there's not enough we can do every single day but we are working on it and we do for my perspective we've done more over the last four years than we've ever done at the board of supervisors in terms of this. So I totally agree with it uses the survey around homelessness
as well. To supervisor yee point my concern is on this
horse here. People don't want to talk about it that way but
this is getting one san franciscan against another and comment after comment our people about technology and assumed whether they criticize them for entitlement or otherwise and my perspective it's exactly the wrong approach in san francisco. We need to be building community and not pitting one group of people in san francisco against another. To me that is exactly what this item does. I simply will not support it. While I appreciate we can vote in a second
supervisor yee motion I will not be supporting anything today except for tabling this item because I don't believe it should be will forget I did not even realize the storage of the tech community either but I don't think this is something should move forward at all. So, supervisor peskin >> I just have one comment that corporations are not people. >>[Applause]
>> supervisor peskin obviously i agree with that. What this does, however and the people I
talk to in the technology industry there's some people that have created wealth. There's many others and most people I know technology industry a living different parts of downtime to make ends meet as well. They don't work
for companies that make huge wages. They work because they
believe in industry invigorated by its. To get those people there being targeted from weatherby the buses were this tax in particular they feel absolute targeted
>> [Inaudible]
>> by the class that existed today. They feel personally
targeted. And demonized. They feel like they were moved out of town as well and wanted people in this room might want that to happen, to me this is
not the right solution in san francisco to build our city together supervisor yee >> I just want to say one more last word about my motion. I'm just hoping you don't change
your mind what it is but part
of what we've been trying to do
is to allow for any of these to
go forward for discussion and I hate-I know it's late in the game but but certainly, what I saw in the last few weeks was not something I want to relive
as a member of the board. >> okay. Supervisor yee has made a motion. Do we need a
second on that mdm. Clerk?
Okay. Will call vote on a
motion's >> clarification supervisor yee would you like to refer this item without recommendation? >> I imagine is committee report, yes. >> yes. With a negative recommendation. >> on the motion tang nay yee
aye farrell nay. There's two nay one aye. >> that motion fails. >>[Gavel]
>> any further motions? >> motion to table >> motion by supervisor tang mdm. Clerk will call vote on that
>> on the motion tang aye yee
nay farrell aye there's 2-1.
>> motion is table.
>>[Gavel] Mdm. Clerk any other business in front of us today? >> know Mr. Chairman.
>> thank you. We are adjourned.
>>