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tv   Government Access Programming  SFGTV  January 10, 2018 10:00pm-11:01pm PST

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been in the news the past few year. it hasn't generated that much money for san francisco. because the quirks of the program but we think there's other available and think the program, they finally figured out some quirks and there'll be more money going forward. the more in the pot the more likely we'll get some of that money. there's no place like home and the state is bonding against tax revenues from a few years ago. that's exciting money. we'll get our own in san francisco going for new units for the homeless. it could potentially go for future programs and it balances
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the vhhp and one of the projects here is going to be applying for that. we'll be relying on the state for that support. another piece of the pie is local capital. that's why i'm here. our sources include our housing trust fund, the 2015 general obligation bonds for affordable housing. we have inclusionary fees. in 2016 we passed proposition c and there's different sources of funds that all go in the pot and these projects will be eligible for some and we'll also in addition to capital we're often in the position of providing direct rental assistance or federal government assistance.
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we had the operating support for homeless households and there's project-based rental systems through family housing at hud and cpd and housing for persons with aids. i want to draw a picture for folks about all the things people are going to need to do to successfully implement the housing and the village it will take with our federal partners. and we're getting most of our money from impact fees and inclusionary fees expected in an up market when there's a lot of
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market developments when people are building new office buildings. when it's down you'd expect that part of the pie to shrink the following year we'll expect more and then back down again and that reflects we'll have spend the bond money which is one time and also expecting the market to go down a little bit. i think that's an update. our federal funding sin -- is influx and the tax plan passed affects san francisco. we have had some of the most valuable tax credits in the
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country. people were giving us $1.23 for one dollar in non-cash forms. these days that same credit is probably worth in the low 90 cents and between before the tax bill we saw a major drop in value after the 2016 election because there was talk in charging parts of the tax bill.
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now that it's done we know what the value is and it's another 3% to 4% the value we estimated when folks were thinking about the worst-case scenario. it means millions of additional dollars to provide the housing and will probably be split between local and state government. there was a brief moment in the negotiating for the bill when there was talk of eliminating taxes and bonds called private activity bonds. that was terrifying for us as we were trying to figure out how to go forward without the tool we expect to use here on treasure island and the rest of san francisco. that made us feel vulnerable. it was an interesting and when they don't know the particular
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aspect of what we do and what the impact would be. on affordable housing in particular it was significant and we spent a lot of the fall trying to figure out how to keep the train moving and build the affordable housing we need the home and program has been building and the trend continues in the budget which still hasn't been approved this year. there's no expectation it will get better. because hud's budget has mandatory expenses things like paying the rent where there are natural increases to the cost of electricity or running an apartment building as the budget increases the discretionary portion has to be reduced and their down to a small pot of
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things they control unless they'll be starting to cut people's rent. we watched that closely. we advocate and that's the world we live in and we've foreseen interesting things happening in the state. don't forget to vote in november. one was a document recording fee a portion will be going to homeless housing. but that's a study permanent stream of housing as money for
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housing and we'll fight about how it gets spent but it's exciting it exists. the bond measure is where we excess our right to vote. look for that. that has a total value of more than $4 billion. not all would be applicable to treasure island but growing the pie for state funds we could compete for successfully would be phenomenal and we're looking forward to. we are au few years out if it passes it will take another six months to put out the call for applicants and another year for the money to go out the door but the projects down the road could expect to be recipients of this state money. we couldn't get it soon enough.
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they're planning to revive older programs as the multifamily housing program. there's a transit development program and the treasure island projects will qualify and maybe when improvements will be made we should be good for that. and the homeless -- there's a court action. those are bond funds. the court has to make a decision how the money has to be spent and they're expecting a decision in the late spring to put the call for the money out in the summer and the way they legislated is san francisco may be able to compete to get our
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own pot of money. it will probably be in the $80 million to $90 million range under the general offices. and general approval and it's exciting. it's pretty great. i didn't mention there's a project we'll be planning for and some changes with our local tax credit and prioritizing housing for the homeless through a special needs program they have. also again, the state's done work to consolidate their housing programs through the tax credit community and bond committee and lending arm and granting arm. that's been great to watch.
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some challenges. one is cost. it costs a lot to build in san francisco. we're very proud of the results of our work and it costs real money. in this case we have land so it's not a challenge on treasure island but generally speaking the things you need to pay for before you build. there was a director to streamline the process of approves for buildings located in major project areas and treasure island is one and that has promise for helping the whole island achieve what it's
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trying to achieve and part of and inclusive of streamlining should speed it up and make it smoother. very excited that's available to treasure island. and construction costs affects the overall costs. we've looked to reduce the cost. one is factory-built housing it's called modular. a couple benefits you get from building in the factory is shorter time frame and that builds money in things like insurance and construction loan interests. it takes less time. time is money. it's quite quantifiable and
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related to the building and it allows to work multiple shifts. it allows to have more quality control. you don't have people up ten stories working on boxes that are more safe and we've thought how to incorporate it should we get the consensus from the community that that's the way to go. there's been interesting developments in the industry with how easy it is to get the modules to a location. that's one of the things we've been looking at.
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if there's nothing else you have heard today is mocd is committed to the success and achievement of affordable house at treasure island. we'll be investing a lot of money and time in helping everyone achieve that. it's worth saying and showing up and making the commitment to you already in the resolution that was passed to establish the infrastructure and person it person we are tremendously committed to being your financing partner to the achieve the affordable units. i wanted to make sure you hear that.
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there's a lot of progress behind the scenes. we are kicking off the first one and that's a nice milestone. there's environmental work going on. the team will be applying for the housing program. you only get one shot a year. you have to be ready. they then decide and everyone scrambles and they're working hard to be ready. and then on the other there's ongoing discussions what the program will be. then we'll make our loan to that team as well. lastly i want to conclude my presentation with things that
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have happened in the past couple years what we call dahlia the city's flower it's also an acronym. it is our housing portal. it's a one-stop shop for someone looking for affordable housing can find out what the opportunities are if the house has been sponsored by the city. i put the link in here. if there's anyone in the room who represents organizations. and i'd encourage folks to send people there. that has everything except for
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home ownership opportunities which is one click away. it's a big achievement for us. we're behind the times with technology but here we are with dahlia. by the time treasure island is built it will be old hat. i'm hopeful people have questions. >> thank you for the report. much of which we already know but is good to get an overview of the program i was president
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of a project and what a great way to take leftover freeway ramps to incorporate into affordable house. though it took two decades to do. we are so blessed in san francisco to have great architects who understand affordable house and made the type of housing we build in san francisco to be wonderfully designed and fit in the neighborhoods. we're also blessed with
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providers to help do it well. with treasure island the challenges are so great. the tax credits have decreased and they're not what they were before. we have to put in additional subsidies to make up for the gap. there's almost no federal funds left it's from what we get from hud and other federal programs. the state is a brighter spot and many have been on the bandwagon for housing initiatives and were successful last year legislatively to get more
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dollars to local cities. even $4 billion which is what we'll estimate that to be in a state that is as needy as california when you pred it over the state, the amount san francisco will get is quite small and not enough for what we need. the value in overall housing policy and why we need to concentrate on treasure island is because we have the land. it's so difficult to get land because we know how land costs have gone through the roof. it's difficult to find land to
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make the project feasible and we have the land and commitment to do 2,000 units of affordable house. it seems to me we can increase housing on the sites we hold and so it teams to me we should target the projects if only we can get the financing resources available. i'd like to work with you and if there's not a way i've been asking the nonprofits to do and the city and our staff here to
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to look at the projects coming up not as individual projects but there's efficiencies if you're going to build 2,000 units of housing. the first three sites, is there not a way to have efficiencies in designs and operations that can being looked at where we pull resources. perhaps it's negotiating in advance the fee paid to general contractors or an insurance policy backed up by the city to be used by the non-profit developers on treasure island. perhaps special subsidy programs for the projects.
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there's a list of things that can be looked at. and i would ask your office work with us to think of ways in which we might be able to get those resources and use them more efficiently. for one thing san francisco, the cost of building an affordable housing unit in san francisco is so much higher than the rest of the bay area. there's certain ordinances we want to support but we have to look at them and see how much cost it adds to the overall construction and design costs
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and is there not a way to make them more efficient. i'd like the nonprofit developers involved i'd like to come up with a list of efficiencies. ways in which to fast track the local ordinance need to be looked at which perhaps can be streamlined but basically a list of things we can reduce the construction costs so there's less to put in as a subsidy because it's already too much. >> rest assured we're looking at these things. >> i know you're working in concert with the non-profit developers and our staff to come up with that program. i'd like to open it up to other directors.
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linda. >> commissioner: thank you for coming here today. i think it's a matter of time because we've been anticipating getting to know you and working with you a long time now. for the record we have people who have developed housing for decades and we're active in the community. we advocated for housing to chinatown to san francisco. your predecessor, mr. lee, no relation to mayor lee, was considered one of the foremost housing directors in the state of california and mayor lee was
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the first mayor out of the gate in the state of california and set up the successful agency and began rolling up his sleeves to stabilize housing and create bond measures and the rest is history. you're welcome here and we want to establish the relationship. at the end of the day, treasure island, we'll be working with you and fulfilling obligations.
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your predecessor worked on many sites. and some projects today are a great testament. when you look at san francisco budget and we're only spending $220 and thanks to mayor lee with the special bond measure it's a disgrace about the measures. i foresee the situation will improve and again citing mayor lee's legacy he was instrumental because again, san francisco is leading the state and because of the efforts now we have leaders in san francisco to push that.
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one of the things we know the state needs to advocate pore -- more leadership we only have 2% of the state grant but with all the bills in place now, but it's still not enough because we'll have to be creative locally to see how we can extract and we have the capabilities to work with you to make sure treasure island doesn't fall through the crack. and use influence to move it forward. one thing we mentioned and we know is about the cost of housing and also the entitlement. you were correct. san francisco is very hard to build even with the scarcity of
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land and i think it's a foregone conclusion as a member of the community we're pushing modular housing. it's no longer where we have concerted efforts that's the trend everyone is looking at. how can we put that on the joint board in san francisco. the discussion is not only going to be limit to us here but to the community. you need to help us to know modular shougs what -- modular housing is what is needed and use us to push the discussion. that's the bottom line. it's wishful thinking to think we have the deficit and the
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limited use of funding and the modular housing shows other places in the world are going to that way. when i look at your pie chart you mention mentioned the impact fees it's a substantial amount but what's the projection. what are the challenges that can make that because if that impact fees maybe you can site what you for see and how we can be helpful.
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>> i will do my best to answer that question but i'm not the director of mocd i'm representing kate hartley our esteemed director. it is with great difficulty we have an accurate predictor of the impact fees because of the way in which the legislation needs and the way the money comes to the city. in general terms we do expect significant fees to come in this fiscal year and next fiscal year and that's because the planning department does tracking and look at the projects that have submitted planning applications and have a sense of who's planning and who needs to do environment environmental assessment and who will get to the payment of the
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money. what we see trend wise is we're at big numbers now. this year and next year and then then there are assumptions made on what will happen about the economy in general and we'd expect there's fewer inclusionary fees. and inclusionary fees we're incredibly lucky to have the best inclusionary laws in the country in san francisco. one of the challenges of the
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rules are about the timing of the money and how to predict when it's coming in. >> yes. at some point, kay needs to come here to to be on the same page. lastly i have a question for how we're managing. i know we have all kinds of documents but i think it will in instrumental if we can have an excel sheet format. it would be great in march to know how many of the households
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we've have one-on-one with and on one spread sheet. that could be posted at the end of the day on were website and the supported documents would be there for people to review. it's such a significant aspect of the development and given the known issues we have to deal with so it's important to look at that and translate to that point. i know you collected on the house of tida. thank you again for your presence here today and ask your director we'd like the discussion and we're passionate about the modular housing and any assistance to find creative ways for treasure island. >> i will do that, thank you. >> thank you, linda. sharon. >> thank you for the
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presentation. i found it helpful to get the recent history on how tax reform has impacted the funding. i'm not familiar. i have a question on how the pads work. would the individual affordable housing developers be responsible for bond financing or can mocd look at more resources. it rates right now are pretty good. are there efficiencies with just taking issuing a larger bond
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versus having smaller bonds over the however many years. >> that's an interesting question. there are many kinds of taxes and bonds. the buyer is going to bank x and they give a rate. the city has issues of bonds purchased by the bank. the transaction for the borrower have to go through a required process but it's pretty easy. it's a loan backed by bonds. we already act adds -- as the issuer. we generally charge the lowest rates of most of our peers. we're getting efficiencies with the city in that function when
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we're the issuer. so it would be more challenging if you were doing one project every two or three years to cost effectively issue bonds that would have to cover a large amount of time. i think that would fall in the category of things you're colleague was asking about. are there ways we can efficiently do all parts of the transaction and since we are a major part of financing of the housing we would certainly be looking at that. we haven't done exactly that to date but we are always looking for ways to get the money out the cheapest. both our own and the private money. >> and then i think the city is
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in the process of exploring the idea of creating a municipal bank. will that impact our financing capabilities? >> i will be frank. i have no idea. >> commissioner: and similar to linda's question about the pie chart you provide. from what i understand it sounds like you're anticipating the federal funding section to basically be reduced over time because of the 4% or something. and the state portion of the pie would increase. do you see that to even out. are you anticipating a gap?
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we'll still be able to utilize them. they were worth less than a year and a half ago. we know that hud has less of their home federal grants money which represents that portion of the pie chart. where he don't know how the state will pull their money out every time they put out a notice they set a lone limit and said the parameters and and there's a program on how much money they'd
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need so it's hard to get to the point where we can say it will cost a certain amount more. we have been predicting though we'll get new state money.
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>> last question. part of the cost increase in developing housing project you've noted has to do with the duration also the labor costs associated. i'm wondering if you can speak how they're work the other offices to address trained labor shortage which is the driver for increase in labor costs. >> the labor challenge on the west coast with the fires and natural disasters creating more demand than we had before for
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residential construction -- i don't know anyone has a solution for that. we work with our city partners on programs like and participating in the development and that's a great challenge where there's so much work locally to get people to their jobs. i'd like to move the agenda forward. >> i'll ask a quick question. thank you for the presentation. it's very helpful and look at the impact it's having locally. i thank you for all your good work. we need to work together to make it work to build affordable housing of course.
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one of the specific questions i have goes to the impact fees. those are inclusionary fees. developers who put time into several ordinance. >> as it pertains to treasure island, do the funds go into the city fund or are they treasure island specific. so when we look at the budget for the development and in the budget there's impact fees do we benefit treasure island or is it
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exclusive of treasure island? >> i look for support. >> i'm wondering how we relate to the city wide budget. >> you're getting funds from the city pot. because much the escalation in the last five years we've seen some of the decreases in other revenues and other revenue
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values like tax cred its we have a shortfall and they're helping to find solutions. our program will be get significant contribution either directly there city funds or from city allocation of state funds. to help fund the program. >> and other fees. >> commissioner: thank you so much mara for your presentation. i would like to have a report back on the efficiencies that we can do think of. are there ways we can streamline the process. >> we'll calendar that.
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>> commissioner: thank you so much. let's see. for the next item i would like to have the item number 8 item. jill manton is here and has another commitment. >> the clerk: item number 9, art selection rfq results. >> we've completed the qualification phase of the art selection and she'll speak to the items short listed for proposal. >> happy new year. i'm excited to be here in the art selection process for the first series of sites to be for series of art works to be
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commissioned for sites on treasure island. the three sites are building one plaza, water front of plaza and herba buena plaza. there's an all-inclusive fee with the artists' fee and engineering, transportation and we met december 1. the selection panel was president of the art commission, ticd, our guest curators from san francisco museum of modern art and a curator part of the smithsonian museum. we reviewed of the 495
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applicants after multiple screening to pare down the list. 37 artists were select. after the first vote, that number was reduced to 15 short-listed artists and the panel looked more carefully at each site and identified corresponding artists and there may have another couple of votes before we established our lists of three artists per site. i'm pleased that our artists represent are internationally renown. we have artists from different countries and it's a diverse list. we have artists of color and from european. we have a great group of artists.
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i think the panel worked very hard. it was an all-day panel as you can imagine going through this much work. i think there was true consensus about the deliberations and later commissioner tsen would like to comment and in accordance with the arts master plan they reviewed and comment on the artist. the steering committee responded during the holiday vacation to line up the votes to proceed. now that we have the approval
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from our steering commission we contacted the finalists and let them know they have selected. i believe we have five or six of the artists or their representatives who will be in attendance with cmg, walter hood and ae com. if there are any questions about the process, i'd be happy to answer. i can also show you a quick thumb nail image of each of the artists.
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this is a chance artist and does projects all over the world.
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we don't have an x marks the spot location. i just heard back from the local gallery he's interested in developing proposal. those artists at the height of their career don't usually participate in competition but
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they found treasure island compelling and wanted to participate. a new york artist typically works in recycled tires. i'm please to say she was selected for a finalist for two sites. we look forward to seeing what she will propose and another artist has a studio in northern california near the russian river. though this is a glass artwork her work is typically characterized by her use of vivid color. we have a local artist that works with phenomenon. he has a number of works in the city and has been commissioned to do a water work for trans bay and he's an alternate in the event one artist can't
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participate. and for the herba buena park site we have a photographer who has start to work in sculpture and architecture. she was featured on the cover of the new york times and there was an in depth article about him. again, booker who's work i just mentioned and then andy götze a british artist and perhaps the best known in the world at the present time has done a number of installations in the presidio and those are our finalists and i'm happy to provide further details about next steps. i should stay speaking of next
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steps the artists will be asked to develop the conceptual proposal and paid a modest honorarium and we'll have drawings to know what the sculpture is going to look like and what materials and what the corridors are. it won't provide us with engineering. we hope the artists will be able to work with our time line. we're asking for submission. we would convene the selection panel after that and then go through the process of treasure island art steering committee and proposed to tida for your final approval. there's also a two-week public exhibition period built into the schedule. we'd like to have the works displayed on treasure island and then analyst -- in the city at a
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public site to be determined. >> commissioner: are you ready for questions? >> i am. >> commissioner: to be able to narrow it down to just a handful was a lot of work and the selection committee. i think that what we wanted to do was to set a real standard. these are the first art commissions that will be made on
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treasure island. i'm hopeful this will be will make treasure island a distinction. i came back late last year visiting a group of islands in the southern japanese inland sea it's very similar in history having basically industrial uses and then and getting people to visit has revitalized the islands. it's our hope treasure island will become an international art destination for people around the world to come and visit
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these incredible art works by the greatest artists of our time. it's wonderful we had such a response to request for qualifications to have incredible artists respond and this is a final grouping. you will all be involved in this when the final decision is made. it will come back to the tida board. very exciting. thank you, jill. >> my flash. >> commissioner: any comments or questions? >> i was present for the selection committee. though it wasn't expressly
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discussed as an objective, the result with the selected artist is we have a group of artists that have demonstrated a broad range of work in material and theme. often you'll see a piece of work and you'll be able to know the artist regardless of the location. you'll be able to say that was done by so and so. and they'll speak to the treasure island and herba buena island opposed to something that will be specifically recognized for work by a specific artist.
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it wasn't necessarily an expressed intent during deliberations. when you look at it after the outcome it was an underlying subconscious part of the process. >> commissioner: thank you, jill and the

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