>> good morning. the meeting will come to order welcome to the may 15 meetings of budget and appropriation committee i'm supervisor connie chan chair i'm joined by supervisor mefwar and walon short low by mandelman and president supervisor peskin. our clerk is brent jalipa. i would like to thank sfgovtv for broadcasting the meeting. >> a reminder for those in attendance silence phones and electronics to prevent interruptions during our proceedings should you have

documents to be included as part of the file submit them to myself the clerk. approximately comment will be taken on each item when public comment is called lineup to the west side at this time right my left along those kurt anxiety. not necessary on provide comment we invite to you fill out a card and leave them on the tray if you wish to be records. you misubmit comment in writingeck e mail them to myself at brent. jalipa sfgovtv. tell be forwarded to the supervisors include part of the fortunately file. you may send written comments via postal service to city hall 1 dr. carlton b. goodlett place room 244, san francisco, california, 94102.

this concludes my aupon nouns ams. thank you and let's call items 1-3 together. >> items 1-3. items 1, 2 and 3 consider the per se's may proposed budget for airport commission. board of appeals. dbi. child service, department of environment. library, municipal transportation agency, port, public library, san francisco puc, residential rent stabilization and arbitration board and retirement system for 24 through 25 and 25-26. item 2, a proposed budget and appropriation ordinance appropriating all estimated receipts and estimated expend tours as of may first and item 3 the annual salary ordinance positions in the budget and

appropriation ordinance. >> thank you this is for the general public. this is a series first of two of the series of hearings specific low on the major's propose the budget considering the may first budget this is really drilling down to the budget for enterprise agencies not the general fund budget. with this, colleagues before we do start our the department presentations i would like to make opening remarks to help frame this year. for the public and committee and our departments. yesterday the controller released 9 month budget status report and showed we were performing better than projected. but we still have i long way to go.

it has also clear for a time that even after we recover from the pandemic we will not be going back to a time of unprecedented growth in our city and economy. we much manage our spending so we can offer serves residents need in our means. if this is the case what does san francisco's budget say about our values as a city? as the board of supervisors, i know what our values are and our charge from our constate wens ceclor. we must make sure san francisco has a strong safety net so most vulnerable families, children and our seniors not only survive but thrive in our city.

we may funds program this is are prudent it work and deliver the city service this is residents not only need but deserve. we can do this if we work together to focus each department's budget and services on delivering their core mission. we must have the political will to cut wasteful spending. it is our job to scrutinize our spending to maximize the tax dollars our residents pay to deliver excellent city services with the mayor's proposed mibudget we are not starting the process but continuing the w tht budget committee has been doing and will continue to do so with

the 14 billion dollars plus budget we have the resources to make surety budget we end with in july reflects values to be proud of and residence emdentses serve. let's get to work. with this before we proceed to department presentations i like to invite the major's budget director. thank you i have a short presentation.

good morning appropriation's committee i have a presentation on the commuter from you want to share that. this kickoff the budget process. we'll be in here together the next two months. every other year we do a may first budget this is mostly enterprise and nongeneral fund departments but starts the budget conversation we will adopt. the may first budget budgets of 6 billion dollars. in the upcoming 2 fiscal years this supports the operation of 12 departments and 10,000 city employees. and you will hear from the department who is come up today there are investments and equity, sustain ability and public safety and economic resiliency. you will hear from the enterprises the airport, mt a, port and puc. some of the departments have two year fixed budgets than i will

not be back to the committee for two years. and a handful of most low nongeneral fund departments you will hear from today. so highlights, things you will see as they bring forward budget investments to improve reliability and rider satisfaction with the mt a, puc the afford at policy. library expanding programs for non-english learn and incarcerated vsed. we are funding the mayor's climate action plan in department of the environment the port a waterfront program and improving safety of street conditions. there is trailing legislation that will be heard next week. a number of ref now bonds that supports the puc's budget and

continuing prop j contracts. once previously approved. a few changes at dbi and the board of appeals to support operations. and a few [inaudible] those will come next week. and with that we will understand that over to the airport to start. >> good morning. airport director good to be with you. denise the director of budget is here and my chief financial and commercial off kevin and allen from the budget office and external affairs. >> the investment in positions represent a time as the airport recovers from corid in a position of financial strength. over the past year the board approved our new 10 year lease and use agreements.

40 airlines and a 49th on the way. in july of 23 we kicked off the 5 year plan with the new mission and vision in the early phases of our next program with 11 billion dollars of investment. we are well positioned for a future accommodating forecast passenger growth propelling revenue and continuing the momentum of the airport the power house in the region. we remain focussed on core values enhancing the culture of sfo for results for people and passengers and planet. look back on significantantentses over the years the strength of our recovery. you see after 911. but nothing as dramatic as the covid pandemic on the impact to operations. we did take strong measure early on to preserve cash through

managering expenses most all but restructuring of debt. we took advantage federal stimulus and now in a strong financial position appropriateed accommodate investment and growth. we are 90% recovered on a fiscal year to date basis of passengers. that amount is split between 103 international recovery to prepandemic numbers and 85% domestic. it is interesting what 96% of the traffic recovered china is still only 50% recovered and so we are excite body the additional china traffic once the governmental agreements are further loosened. and even though we are 90% recovered we have 83% of those precovid operations serving the 90% of the passengers.

that is a great trends i hope continues and show its is an efficient use of our facility and resource. passenger levels are expect today return. in 24/25 and this budget supports that recovery and the investment we'll make in health of organization and in the future facility developments we have planned and under way. pleased see our service payment is strong and supporting cities general fundful this will be the learningest piment to the city's general fund of 45 million, 55 million dollars and we are also anticipating that will grow to over 60 million in the next few years. it is interesting point this we have grown our service payment 6.7% the past 15 yearseen though passenger. mentes grown 4.1% speaks to the

offerings at sfo on concessions program and investment in dynamic parking program the grant sfo and the other amenities. for the budget context. through covid it hen lean. because of the pandemic. now we think of ourselves right sidesizing the organization and pursuing investments with the needs of our forecasted passenger growth. we are prioritizing the health of our organization by addressing work load and operational gaps. passenger growth and implementing our airport operation's center i will speak more of supporting our 11 billion dollars capitol program of along with our 5 year strategic plan and enhancing the airport's reserve. operating reserve funds. and to speak on the new initiative the operation's center. this is a model that is more

prevalent in europe. there are a couple of airports in the u.s. we are taking on this and have developed a facility in an organization to give us real time situational awareness through a cohosting of the various staff that communicate and help us manage our operations daily caused roadways to run ways and the integration of technology this gives us metrics and allows us to predictive insight in helping be proactive in front of with we may experience as congestion returns and impacts may be become more prevalent. around our strategic plan in 23, we launched the new plan. and built off the successes and the position of strength this we find ourselves in recovery from covid. supported by 6 goals. 26 objectives 90 initiatives.

that will be implemented the next 5 years and the core of everything we do is our deep commitment to our guests, employees and tenants and the communities we serve. in our operating budget alined with passenger levels. this chart is our debt service versus omn versus actuals you see the gray hatched reflect the savings we have seen through the cost custody kuth measures now time it catch up with our expenditures to support the needs that i expressed. we are now really we look at ourselves in a strong position to meet before passenger levels and the growing demands and it is time now to gnaw investment in place for the purposes. on the slide operating budget comparison in detail and proposed budget 1.6 billion

dollars is increase of 16% over the previous year and for the 26 fiscal year 1.74 budget or 10% increase overnight 25 fiscal year. debt service is a significant part of our budgetful driven by the investment we have been make the past 2 decade in our facility. personnel with 99ft e supporting the health of the organization. that aioc and other priors. and contractual service half needs are driven by increasing passenger loads and the other half is scope increases, inflation and activation of new facilities. we have our organization chart, probably the biggest change in the organization is the place am of the aioc under the chief operating officer. and then our 5 year historic look at staffing we have limited growth and get to spend hiring and now it is

time to support staff through sxhiers appreciate the support we got over the mid year cycle, we were afford 120 new positions and took advantage of this and we actually used 118 of those positions through permanent and temporary that bridge the the gap from july to october. the 99 new positions add 20 million dollars to the budgetful they are around enforcing the health organization and 41 position in our aioc initiative. and then to talk about passenger growth and c ip we invest. we are phase one was terminated and suspended the beginning of covid to preserve cash 2 billion dollars in 1.5 am you know the facility this is we brought online including harvey milk terminal 1. our extension of trin to the new

long-term parking garage and water treatment plant. and 1.5 is the new program and finishes you have the projects susupon spendsed. along with other projects like terminal 3 west and other infrastructure projects. and our capitol operating budget you know a couple adjustments we'll make. i will point out the facility charge rental contracts 10 dollars to invest in the future rental facility. and -- we are also funding our new reserve fund that gives us resilience to respond to covid type issues and invest in facilities. and we have a couple reappropriations we need to do to support terminal work. and then two slide on the contribution that you are aware of to the economy during covid

rew criminalitied opinion billion dollars to the region and poised with new supporting tourism with 10 new routes and leading with return of flights to and from china. and lastly a big job's center experimenting 48,000 private sector jobs and local business 80% of our concessions are local businesses. they are 100% open and spendserate is 115% of precovid levels and our construction is an important and positive impact to small business and we have afford 1 billion dollars of work to local businesses since 2015 and our forecasting 865 million the next program. apologies for going long. fwlad to answer questions >> and want to congratulations

for just all your accomplishments. director and really grateful to your leadership and your service. congratulations on the upcoming retirement. i think we are going to miss you. you will have built a great team. we are appreciative of the team. when i took office and met with the team the public finance team walk us through the strategy early on. how the airport will tackle the pandemic. the graph shows us unpredented time. i appreciate the 55 million dollars of the 15% of your revenue coming in our general funds contribution. i just want to express my thanks to your work and leadership and your team. thank you. >> i don't see name on the roster so we will go to our next department.

next department is board of appeals. >> before you start and yes we will have thank you to mr. clerk this we will have a 5 minutes timer for you but of course police finish your presentation it is when you are hear for we want to get through all 12 departments today in a timely fashion so there will be a timer for you. >> okay. thank you. good morning chair chan and the board i'm julie rosen about the burg the executive director for the board of appeals thank you for giving me an opportunity to shave. i would like to thank angels fret controller's office. and joshua from the mayor's budget office for their tremendous help throughout budget process. i could not do it without them. thank you. moving along. i know you have i longidate mission is to provide the public with final administrative review

process for the issuance denial, suspension revocation and modification of permits, licenses and other determinations. our goal to provide a fair public hearing and decisionmaking process before an impartial panel. our projected appeal value for 2 is then % below the 10 year average of 149 appeal and is thbl can be attributed to reduced permit,ance and changes that restrict or limit appeals. moving along. in terms of the appeal distribution by department, 84% of appeals are land use decision permits issued by db oishgs with planning approval. and our revenue sources are come from surcharges and filing fees

98% surchargeos renewed permits and rates prosecute portional to cases from each department they are arn lived by the controller's office and adjusted if needed the controller may make cpi based adjustments or rate changes require legislation. the filing fees make up two % of the budget they are collected when appeals are filed. moving on to the budget sum row. proposing an increase in fiscal years. the -- department does prosecute pose two surcharge rates to be increased by 5 dollars through legislation for dbi and planning permits and two surcharge rates through cpi, dph increase by 3 dollars and public works a dollar.

no changes in filing fees are proposed. moving on to -- you see we are proposing a reduction of revenue from filing fees to short falls and export surcharges will cover any short falls. then moving on to b. expend tours like most departments the bulk go to labor costs. salary and the next 2 interdepartmental work rent for our office. d. technology, sfgovtv are expensive as you know. and the city attorney's office. so -- moving on to c our organizational chart. 5 commissioners. we have one department head. one legal assistant who i like to recognize does a fantastic job and one legal process clerk. we did e eliminate a position

and have one vacancy for legal process clerk. we are running a tight ship we have 3 full time employees, myself and alec and [inaudible] and they are doing an excellent job. so -- let's move on to the surcharge rates. again i mentioned before if you can see the column on the right, those are the proposes increases for planning and dbi. dph and public works. and a reduction for sfpd. the filing fees are listed here they have in the changed and have no need or desire to change them. in terms of our performance measures issue one measure is the percentage of case decide upon within 75 days of filing. our target is 80% and the second measure written decisions issued

within 15 days our target is 90%. we have an initial employees whom performance appraisals were schedule and they were complete and theed boa will meet or exceed the targets and this concludes my presently agdz i'm happy to answer questions. >> we have communicated about stay stay the taxi driver's appeal. could you reminds me how did this resolve? >> yes. the sfmta as you know, the sfmta and board of appeals have an informal agreement for the board of appeals to hear appeals of decisions related taxi permits and the sfmta elected not to continue with this process. so -- we finished out and had a few pending case we no longer

accept appeals for those determinations the sfmta is permitted to do this as an independent department. >> thank you. >> thank you for your presentation. >> thank you. >> see you next week. >> and with that the next department is child support services. good afternoon chair chan and members of the committee i'm karen roy i'm here as the directored of the department of child support service. here with me today are my colleagues carroll becket and siren shift. thank you for inviting us. today to introduce our department's budget for the

upcoming fiscal years. this presentation will cover our mission. funding challenges and solutions and vacancies, performance and priorities. families with low income not eligible for public assistance depends child support. if makes up 40 percent. income for single mothers live nothing poverty and 63% those who are impacted. many parents responsible for paying child support are struggling with unemployment, poverty, justice system involvement and experience significant barriers to finding stable employment. we recognize the head winds the parents face and aim to assist in fulfilling their obligation. our goal empower parents to meet the needs of their children. the department of community

budget will rely on federal and state funding e eliminating county general funds. addressing the financial challenges the department has implements cost saving measures including the e elimination of 7 vacant positions. reduced discretionary spending. keeping administrative costs under 10% of the total budget and consolidating office space. department operates in budget through careful hiring practices and fiscally responsive investment and team training and technological efficiency. to maintain quality service wes stream lined the practices to e eliminate dubcasion and partner with the family court to simplify hearings, maintain the virtual appearances and expand e filing order processing. i'm grateful for the hard

working professional in our department who are dedicated to serving the public. i feel privilegeed work along side approximationate individuals and it is my honest torto be part of this team. the department will have 73 budgeted positions 61.5 filled and 11. 5 positions left vacant to save on salary and benefited. our case load and staffing levels declined. reduction in case load our department managed to maintain staff to case load ratios ensure excellent customer service and minimizing worker injuries. we don't have any plans to create new positions at this time. children must be able to count on parents to meet needs. our team provides services that

impact 7, 275 children in san francisco. >> income moderate below the proffer line our clients african-american and lettin extinguishing families with growing number of asian pacific islander families. for fiscal 23 the department collected 22.4 million dollars with 93% of every dollar benefiting families. the highest in the bay area. the department has a workforce this is culturally comp tent. caseworkers respect differences and take them in consideration in order to effectively provide excellent service to parents in a reliable manner. the department has prioritized

language access understanding that absent effective communication of culture of service deliver sepossible. we arn lives and criticize our system in relation to client feedback and concerns to ensure systemic barriers to access. the department has restructured service delivery system to one this is family centered. helping fragile families meet commitments to children creating stabilities and fostering parenting. the majority of parents paying child support in san francisco are fathers with low incriminal under scoring the necessary for tail ordintervention this is include relief of government debt. we ever also trained and prepared ensure that parent who isment to can safely seek child

support as a means of retaining financial independence in abuse. partnering with the community we built a program that motes parent's where they are. we have grown and now we have a service model centered on upon respect and empathy. our focus understanding trauma and working toward being a valuable resource for parents and create solutions and fulfill dreams.

>> partners on your slide and interested we have had and the initiative that is joint low by several departments which have proven be the most effective things in terms of out come for low income families and i wonder when the interaction is from your development this initiative?

>> through the chair, thank you, supervisor. absolutely. we -- are working with building a sustainable partnership. working with them they have been welcoming and -- we have been able to reach out to their community based organizations and service providers. to share the w that we do and our availability and the various -- interbe ventions zee to help families. that will be a key per inship in our work going forward. absolutely. we are with you >> thank you. seems should be the other way around. you know may be your case manager should refer folks.

we are not at liberty to share information however, we, too, reach out and reach out to the community and events and we partner with the staff. at early childhood as well as their service providers and we are rabble making sure that the community, the service providers as well as parentses and our aware of our services and what we can dom we created a liaison

to them so they can reach us efficiently. and quickly. and any parent that come you to regardless of income or income status. we are here for them. so we make ourselves available. >> yea. i understand the confidentiality issues is there anything workers saying to check out this -- yes. >> sure. so my apologies, absolutely. we have a link on our website to the services and we will definitely refer. we do refer to the office of economic and workforce development. we controversy human services ages and we will and we do refer to early childhood. my apologies i didn't understand your question. >> thank you.

>> thank you. director realliment to thank you for your service. and definitely wanted highlight the performance from your department especially around child support order. i know how critical that work is. and it is not an easy task. in fact, it is complicated and difficult and you are accomplished 91% with that child support order at work and when the average is 84%. so i appreciate the effort and consistent -- around the critical issue. thank you. why thank you. thank you for your work. the next we have department of environment. >> good afternoon.

chair chan special members of appropriation's committee. tyrone director of san francisco environmental department and i'm pleaseed present our budget. our department's mission is to advance the climate protection and enhance the quality of life for all in san francisco through 5 key environmental areas represented here. we have teams wing on zero waste. to beingic reduction. climate. energy and clean transportation and we have support teams that support this work from our policy team we have the director of policy and public affairs and our chief administrative officer. the education and out reach teams that support the areas. >> the big story for our budget this year is the success in bringing in outside resources. i have come before the committee

it was looking for leveraging our department's ability to apply for federal, state grants into the city. based on funding our department is receiveing year and reflect in the our budget, part of the mission is on going and good stopping point to recognize our work this represents the largeef single dollar amount in grant wes brought in to the department at 42 million. representing now 45% of our budget the largest in terms of percentage increase this is the area 45% from guarantees and 30% of the budget from solid waste or refuse fees and 3% from the general fund. 3% is significant this year representing a commitment by the mayor. work with the mayor's budget office on identifying on going funding to support key positions that are advancing the climate

action plan. they were positions that were sourced through one time source through the board. and now is made offering for continuing employment for the positions. dive nothing grants the 47 we received 42 million dollars. they don't represent off the grants currently that we are applying for or looking at and so with the 14 there are another 13 in the various am stages of grants and awarding what is great about the grant system they do unlook sources of funding so getting one of these federal grants it is unlooks the ability to get phase two to continue this work. which is here. this accounts for why you see the variability in our budget number. the two fiscal because it is hard to predict that second year

grants. you see that large discrepancy year to year. we can predict out when we will get in the upcoming fitsical year not in the second year. that is what accounts for that discrepancy. the met tricks which we define success is in our climate action plan adopt in the 2021 and codified under code 9. essential low we need to e eliminate all fossil fuels stop reliance on disposable items and enhancing our connectivity with nature this is all we have been advancing within our department. it is in the just us saying we are doing a good j.w. we announced today we were awarded the number one ranking for every city across the nation by the american council for energy

efficiency economies. and this is more of a reflection of the city's over all effort and so it is not about our environmental department wing alone it is all of the city departments you will hear from today that own different strategies in the climate action plan and our department's job is to coordinate the activities and reflects on the city's priority urined everaround sustainability and the community as well i thing our community partners. grands we bring in much flows out to community to dot work. you have 9 million dollars with the upcoming fiscal year and the next. and i understand you mention today is because due to grand funding and you can't be sure. so what is the strategy like to

manage that discrepancy and uncertainty? thank you. i think if you look we always have this short fall in this second year. we have been able to cover this throughout grants many grants have different cycles that may come up. and it heard to reflect this in the budget time lines we have. so. i think first and foremost right sizing making sure we dot right hires and attaching them to the funding that are secure and taking that long-term approach not over hires for positions that have precarious funding sources and making sure we have a track record of getting the grants. we have confidence filling gap through the guarantees that are still available. so -- now part of the reason we had success is the dollars from the inflation reduction act the infrastructure law. and so

opened update resources in the government this never existed before. and so we have been taking advantage of every opportunity to bring in the dollar. there are more guaranteeses as we see every day our team is work applying for more. we will have a good story at the next budget y. thank you. supervisor melgar. >> thank you very much, chair chan. thank you, director for this presentation. i worry about your budget. quite a bit because i irrelevant believe in your department and i want it to succeed. i'm wondering how much of your budget is made up of work that you do for other departments? if any. any policy? assistance or anything you do to support climate action goal in other department sns >> thank you. i might have go back to the previous of slide this shows

where the source of funding coming from i glossed over this . 12% of the budget from work orders from services our department provides to other departments like the puc and the mt a and a few others. these are all department this is keep an of close. >> the water goal and it is chapters they represent.

about their climate adaptations as planned and the work this than i are doing with the army corpses to cost out what will take from the water front not along the beach or other areas. i'm wonder whatting extent you see your department part of that work. you think this might make up.

>> we are work on the climate sf which is run by office of capitol planning. so we meet together regularly we are meeting with director 4 and her team to court nayed activities across the city. a lot of departments that touch the infrastructure that are. and we will get in the question the mitigation looks like for that and now they are in the infrastructure design phase and getting everything approved throughout army and engaged in those conversations and we am get more as we move forward. why thank you. >> thank you. >> thank you. >> and >> one shout out danielle and angels frethe controller's office and major's budget office and for support and help during the budget process. >> thank you. >> next the library.

>> good afternoon. chair chan and supervisors. i'm diane rodriguez director of lulibrary and with mow is courtney our reference libraryians. our director sends regrets she is out on medical leave. a bit about the law library, we are a life city agency. in addition to the city appropriation our main funds come from a small percentage the san francisco superior court civil filing fees. which funds our staff, collections and all the other resources that are outside of the upon appropriation. our nigz noigz provide free access to legal resources to

everyone to help close the justice gap. what is our budget allocation do for snus it is does everything for us. it provides for our base and library base without which we would not have one. provides two of our 3 charter mandated positions at this time. that includes marsha our director and myself the chief assistant director. we also get crucial department of technology resource for staff and to provide public access, computers and all remote resource. all of our service are fro to the public. we are constant low doing more with less. with our budget stretched thin. since covid-19 remote and in person librarian services and resources increased in great low

in demand. and since july of 2023 recorded over 12,000 patron interactions. this is a look at our organizational structure. we are governed by a board of trustees made you felt appellate panel of the san francisco superior court as well as local san francisco attorneys. 2 of throw charter positions are filled. that is the librarian, director and myself the chief assistant. the head position is not filled. and has not been for many years per budget cut this is we had to comply with and that was the only thing we could offer as a cut. the next slide represents a change this morning. in our appropriation due to our lease renewal and we thank the department of real estate, thank you supervisor supervisor peskin for working on that.

we look forward it welcoming more city department in thes building as well. . it is a little interesting over in our neighborhood. we welcome you to come in. our lease was going to be renewed 49% savings the next 15 years with one 5 year option the as a result a savings law library appropriation totalling half a million dollars annual and he thank you for approving that this morning. we think tell make a difference and so thrilled be staying in our location. next up we have the san francisco law library organizational chart for a look when the library staff looks like. as i said, our civil filing fees have been going down. we they have gone down 52% since 2009. the decrease happened in covid 19 and more people are applying

for andet going fee waivers in the courts take away from the filing fees. precovid-19, five pistol lulibrarians and post covid-19 due to layoffs and budget dealings of internal filing fee and monies we -- now only have 3 pistol referenced library yens and two assistances. we had to lay off our stack manager who organized all of our collections. we have taken that on in other ways. our staff is busy these days and spread very thin. so, looking to the future of the law library. we would like to suggest the funding the charter mandated ahead of technical service in the next budget cycle. it is too late for this budget cycle with those fadzing realized as of this morning and

like to put it out there for consideration in the future we could benefit from another professional library yen on our staff. with that position we would boost our out reach and neighborhoods and communities. across the city. offer more classes. create videos for you tube channels. build research guides and expand hours back to saturdays or evils. each would have time to work on priorities which are changing every day with the legal communicate. with that, that's our presentation. thank you for having us and if you have questions we'll be happy to answer them. >> thank you. >> thank you for your service. >> appreciate the flexibility. >> thank you. the next is public library.

>> all right. good afternoon chair chan and supervisor peskin, supervisors i'm joined by the library cfo mike fernandez and chief operating officer. we appreciate the opportunity to present the fy25/26 budget. city's longest running institutions, san francisco public library has afrmg ordour community since 1817 and consistent low the highest rated departments of municipal

governmentful our library workers are mission driven and, pyre to be stewards of the community resources and delivering the highest possible level of service. to that end, the library completed a rigorous planning press this resulted in vision 2030. a new vision for the public library. our new vision equal and vibrant san francisco for everyone our staff helping residentses to live best lives. our new mission is to xhekt connect our communities to learning, opportunity and each other. and our new strategy priorities serve the pillars for building this budgetful and reflects the commitment to are bust programming, partnerships and services to deliver greatest impact to our city. this budget cycle we developed investments to advance ecquit and he support economic recovery

making prudent investment in our staff and safety and security. the budget will allow you to maintain presence in neighborhoods without access to a branch will with replacement of two oldest book mobiles. vehicles allow you to reach under served populations and new users. and seek to investment in out reach efforts especially to those who speak languages other than english. our single largest investment in capitol will be another 4.8 million dollars and fy26 and ocean view branch library. our state of good repair needs investment of 3.5 million dollars over 2 years. we endeavour to w on the facility master planning press to determine the capitol investments are needed. to ensure our facility says are resilient and sponsive to needs for library service.

this budget allows for it and equipment at end of useful lives. i'm excited request 300 thousand dollars investment in collection's budget to fund our ground breaking partnership with the sheriff's department to deliver access to digital collections for our population and our county jails. and we are seek to invest 250 thousand in staff for deescalation training. budget investments will support staff in efforts to enhance service we provide for our community. the library preservation funds is the main source for the library's budget and, counts for 99% of the library's total funding source. thank you all again for your support of the renewal of the library preservation funds. with the library preservation funds this budget delivers service our residents come to expect including 7 day service

at every 28 library locations across the city. arc sesz to collections and public access to technology. the, 1 p.s. of the % from library fees, gifts to the library and guarantee funds by the state. as for use the main will cost to the budget is labor. 2 thirds of our budget covering salaries and fringe for staff am we extend 12% on collections which is in line with industry stoornlsd the investment highlighted early are against a back drop of rising costs we are all experiencing. a set aside department library absorbings all cost increases increases for work order agreements with our sister departments. rising labor costs and inflation and changes in the westerlied for print and digital content. my team and i are committed to

be stooudzs and clifr delivering high return on investment or residents med in their library system this value in the high levels of satisfaction with our department services. the newing viz 2030 strategic plan affirms commitment and continued innovation to meeting our residents where they are and booth quality of life in our city. thank you for your time today my team and i are happy to answer questions. >> thank you. supervisor melgar. >> thank you for the presentation. director, you are awesome and your staff is so wonderful. i had a quick question this is under the interdepartmental service, does this include the sfusd? i will dover my cfo or coo to my knowledge we don't have an

interdepartmental work or agreement with them but a robust partnership. >> i know you do! there is nell and agreement nor -- >> that's correct. no agreement. >> thank you. >> supervisor walton. >> thank you, chair chan. go through the last slide? does that say pat republican or paron. >> patron. >> thank you. thank you for your team and for all the work and i appreciate i want to let you know that you know i shareit@cbsaustin.com good news about the extension of the summer hours of the mix with our youth commission.

i think this when they present body their budgetextension of tf the mix with our youth commission. i think this when they present body their budgetthe extension hours of the mix with our youth commission. i think this when they present body their budget. uponing you were responsive and acomeidating i'm grateful for this temperature is a critical piece for our youth to have a place it go and safe place and thanks to you and your team's work. thank you and we will call on the next department. thank you and the next department is our sfmta. >> good afternoon i'm local government affair's cord narrator from the sfmta. director tumlin is on his way can i prosecute seed or we can go let. >> i see i saw that our port

director e lane was waving and so she really is next. >> i will call on the port. make jeff run. >> good morning. members of the committee. staff. i used to be behind the budget analyst 25 years i'm going know you are work hard this time of year. controller's office and budget analyst and mayor's budget director drorgz your hard work. i'm here with nate cruise. and nate will gift majority of our presentation today. i'm here with matt who is our financial analyst i will talk about key initiatives and how

the budget advance the port's mission. so to the port's mission as defined the port of san francisco manages the water front the gateway to a world class city and advance environmentally and financially sustainable merry time. recreational and economic activities to cervical cal. we run our organization on 3 strategic pill arts. economic recovery, equity and he resilience. and using the strategies, they governor actions and programs and our metric to see how we are performing to our strategic plan. so next slide. economic recovery. we have been acting much more and in the public space for our 10 acts and more strategic.

and to ensurety waterfront is clean, safe and i have brandtful that means for us w with our tenantos a shared model and figure out how to risk retail and how to get more amenities for crab sales. how to keep our ferris wheel turning for the partial those things that means a lot of cleaning and safety work from maintenance. means security work and, lot of actual place making work from the real estate team and leasing. you will hear from nate we had exceeded our prepandemic revenues. that is where we are. and the american rescue fund of 117 million got us overnight hump and thank you to the mayor's office for ensuring we never lost resources to ensure

recovery for our city. you will see that we have a terrible deferred maintenance problem. we are work on psychological stieft should conversations with jendz and race and disparity. working on improving teams and partnership framework search respectd and makes aing contribution. strorng transparency with

leadership. thoo this makes us a better organization. getting work done. and a happier and well organization. staff requesting rep 7ation and management and wages. we have gaps that we are trying to address and good strategies to get there. moving contracts and losing opportunity the money we have impacts community. we are finding great opportunity with lbe's and doing work with our tenants as well. our racial equity action plan is a guiding document and an amendment to the strategic plan and divigsz are doing what i call interesting work and we are monitoring to see how it is going. some is new. on resilience the biggest thing for the grand city at this

moment is working hard to figure out a flood protection plan for 7 envelope miles of water front for the sea level rise that is here and coming and to figure out an earthquake safety program for our water front so the water front is safe now and in the future. we are working with the army engineers we have a plan for the flood defense it is a foundation plan. where the line of defense would be. how high it would be and how wide it needs to be and the federal government at this point is showing 13 billion dollars. we work closely with you and the important agencies we guide them very long game project. and with this i will stop talking and turn it over to nate. >> this slide covers budget

allocations that achieves the strategy. on economic recovery, we have a new model for parking let management improve service. safety in the lots and revenue to the port. where the capacity to add an electric cruise berg. now near capacity and cruise ships at the port they plug in to the clean power source so they don't run diesel jen rirts we have want one. we are exploring a second and change happening shifting, way from reliance on contracted security toward bring in our open officers that will provide a clean and better security experience for tourists. the fiscally neutral shift. savings from the area and put nothing our own staff. on equity creating some new path way in most heavily by pock

divisions in maintenance. electrical workers, plumbers and now they work in craft shops the path to management has a big gam we are trying to fill this in so there a natural progression this is good for equity and he a move for efficiency. all of our projects require equipment at the same place and a specific order this requires cordination the level superintendent will provide increasing allocation resource available for internal staffing on retraining and race equity planning and advancing the army draft plan that the director spoke about the port funds the portion of the work this is not eligible for the bonds in 20 thaen is a component of the planful we are proud to do it this will be a project this

needs help from the city family. this san over view of charts requested by chair chan. a very 15 page of details with vacancies and happy to answer questions we are short on time. last piece i want to goet is changes. this graph on the left represents fill count. before pandemic to now. and one of the mechanisms was the hiring freeze, catch a wider and diverse pool. we are getting more application its takes longtory get through the process. so those other big changes and

smaller changes a pmo office a handful of positions for capitol projects and stood u. water 41 resilience project and analyst out in the divisions brought them in under finance this result in the savings. this concludes. happy to answer questions. thank you. supervisor walton yoochl thank you, chair chan and director forbes and i have two questions around equity. and i know i saw the slide. how are we perform nothing terms of ensure businesses are benefitting from all the construction and future construction on the port? >> thank you for the question. doing well. tracking we have a commission of 20% and always exceed it in the

50% sometimes 80% of our contracts are going to local small businesses. microsmall businesses getting contracting opportunities. we track it close low. in terms of ethnicity up for lbe's and this is booied us to wanting more partnerships in upon community that surround the port. especially in business that are business in various districts. we have grown our lbe's from d10 and grown them across business ownership. we can get you the information so you can see it. with our development partnership this is is an area we are doing well. in mission rock is an example they hosted an aprenticeship and

got people on the job and vast majority of the aprentices for women of color that was great to see and from the local community our partners had more capability to of hit equity and see them succeeding there. we will get you. port had a role? we have been hand and glove with them. yes and our commission's drivewaying that work and its successful we will have opportunity to grow, though that is where we try. thank you and there is talk about the sea wall and protecting san francisco. from floods it does not cover southeastern portion of tan san francisco. >> i have good news the flood

study the arm engineers 19 with our 13 million dollars is the whole water front. there are many billion dollars recommend for the southeast. we may take early actions in the southeast. another thing i would like to let you know collected 150 public comment on the draft plan. the big ment system your nought including >> yosemite slew? we are getting a wider reach in the southeast. way in which the arm recommending. protecting the southeast community suspect in two discrete areas. swon around our merry time fasill uts south and this involved just building up the if sillity. and proving the edge but there

is a lot of maintenance around the creeks. we need to work with the puc on how to make that work. and then there is areas where wield do some retreat and some building of park space, et cetera . society army has a plan for the areas and our job now is to figure out how to implement the projects successful low for the community and meet san francisco values. and how to pay for it. >> what is the time line on this? >> looking at a project this is decades. when you look what sea level rise is doing the plan has get to 2100 and monitor. we will be implementing the area's that flood first. and so that may be in the next be 10-15 years and flood next, et cetera, i may be speaking too ahead of myself we don't have a detailed strategy yet.

>> thank you. >> thank you. i don't see other names on the recovery. thank you. >> thank you. now the sfmta next. thank you. chair chan. we have a power point we can pull up i will start i understand you are work through all of these presentations quickly. i'm jeffrey tum lip the executive director of the sfmta. you largely know what we dom let me skip over that. and go straight to the budget context. as all of you know san francisco has faced the second highest rate of work from home in the country. 40% of work that was previously done in the office here in san francisco is now done at home. that had an impact on two of the

most critical source transit fares and park fees. our transit revenue is down 62%. compared to fiscal 18/19 and parking loss revenue in the downtown garages is 38% lower than it was in 18/19 and costs rise because of our obligation and the subsidy paying the workforce living wage. in order to deal with what the has been the worse financial crisis in history i'm on slide 5. we have worked very hard in order to do everything that we can to make muni fast, reliable, clean and safe and invest nothing speed and reliability throughout the system and wing hard at cutting other costs. even weapon federal loaf that we receive in the 2023, we are

expecting a -- 214 million dollars budget deficit in fiscal 25/26. so in order to address that we have been reliant on federal, state relief but it it is necessary that we increased our sources of ref now to close this year's remaining gap initial low estimated at 12.7 million dollars. slide 7. in order to do this, we have resumed index. every single one of our fee programs. it has been the mt a policy for many years to increase the service every year. by form well. roughly equal to the bay area cost living. what that has ment is immediatest increase in fares, fees and fines across the board.

that starts however with protecting the currently cash payor for muni which is 3 dollars. the transit department least like low to be bankd and lowest muni riders pay with cash and so erroring than starting with rigz the cash fare we decided to close the temporary clip are discount that was implemented a decade ago to encourage people to switch that discount is 50 cents in year one of the budget we proposed closing that gap down to 25 cents. every other fee. and fine program guess up slightly. in order to close our deficit. slide 10 we are working hard to maintain all of our upon programs. we are continuing to fund free muni for all youth and discount monthly passes for seniors and

riders with disabilities and low income. slide 11. throughout the course of our budget work, we received community feedback. hosted 2 city listening sessions. 35 community based. 5mt aboard meetings and the things we heard were consistent. highest protecting service we have focussed on speed and reliability and reducing crime. crime on muni is down 48%. since 2018. long subway delays have fallen over upon 70%. with moderate delays. and as a result of our investments ride everybodiship is up. increased by 25%. between last and this year. had priority around improved

street safety and in response we are investing in mission zero and thank you for the board interests in finishing to advance our priorities. hear about personal safety and security on muni. and in response we are continuing to expand our ambassador program and [inaudible] and -- revenue inspectors on board. we heard about equity and he tried to close our budget being conscious of when was impacted by the fees. and to make sure we improve our ability to interact. with our are priority communities. those who are monolingual, chinese or spanish speakers. slide 13, for kis fiscal year 26/27, the budget deficit was

estimated to be 222 million dollars. we are work closely with senator scott wiener and the region to develop solutions for closing that gam and final low, we are very data oriented agency. we track many, many promise metrics most available on our website. in order to make sure we are using our very limited resources for highest g. i'm happy to take questions. >> thank you. i just wanted circle back to the projected deficit its is significant and i will state this. thank you for your work. the team's work at least i have to say benefited upon the

deficit. and a very and i'm reallimented express i want to say it worries me a bit that who i we are able to balance the budget sfmta balance the budget today but the prosecute jection of the 240 mission deficit when is your strategy? you mentioned the work with seniority scott wiener. i feel we are aware of as limp so much television is there are a lot of variables with what it would have been the plan including requiring bills that have to be passed. potential tax measure figured out. help us

>> thank you for this. chair chan we are take a multistrategy closing a budget deficit of this manage tude the piece is sb1031 senator wiener's fwoil authorize a regional tax in part because the sfmta is department upon the city's general fund and there is no economic recovery in san francisco without bart. bart is not a far worse financial position than we are having been so department upon fare box revenue. we realized that in order to save muni we have to in addition save bart. if bart fails muni fails as well. this is the per of our strategy of secondary part include on going improve ams to efficiency. we have been surprised by the definiting cost savings by focussing on making muni faster

and reliable. on our main lines with transit only lanes getting a 15 to 30% travel time savings, for thus is like printing cash a 20% savings on muni equals more capacity and frequency for free. it has been really the tool that allowed us to continue expanding muni service the left year. has not been spending more montehas been making our existing service more efficient. so we have done new transit lanes have that savings on the overwhelming bulk of the budget is people who are delivering

service it is muni operators, mechanics and street maintenance people and finding ways to improve the operations to clean. making it easier and less toil some. in order to the economy recovery and we also get the learningest share of our budget now from the city's general fund. that's the other --

>> thank you. i think i have a lot of i have a lot of lingering questions and i do recognize it takes time. takes time to come up with funding strategies and sources. and it is not easy. and i would love to just look forward to hearing more. i know this you mentioned again, you know, state seniority scott wean and hope there is exploration of think burglar when keep can do in federal funding and other approaches. that is outside of what the city can afford and provide. and you can only go so for in your fees and in your ridership. some point thereupon is a limitation to bridging a 240 million dollars gap. i look forward to hearing that. i know it rirs work let's budget

this budget and we will get there supervisor melgar. >> thank you, chair chan i feel compelled to belabor the point you just made. i did get my budget from the sfmta earlier. and i have to say i'm disappointed. about this budget. i understand -- that we near a crisis and we need to meet that crisis with immediate steps. we need bart. colocated with muni and most our stations we need to bart to work before municipal tow work. get this. then when next? and -- i have frustrated about the lack of progress on income generation from your department that is just bold and a birth vision that capitolizes on our

assets as a tourist city. and a brand that you have this is really valuable. and for the life of me, i walk around the city with people, wearing muni wag that is not benefitting you all over. and i see the frustrations of my colleague in the mission. where there are bart stations with muni stops on to which them. and you know illegal venders this don't have permits this are selling you know -- stolen goods and ability to you know put order in it. and the total lack participation from the folk who is own this royals and actual coming up with solutions. like there are in other cities where there are you know legit -- space that can be rented out to microenterprises.

that can generate income. not everything has to be the potreroiard you have assets and a brand. i know tht umbrella i got for the subway i love that thing. every tour they felt come through would love to buy one. that is a small thing you know but indicative of like where are we thinking we can go with this brand. how can we per in with bart that capitolizes i mean this in a positive sense on your relationship. and also the shared assets you have. what is the long-term thinking around park? i see you know your data on the

loss of ping people are not coming inform but what is the data overnight last 15 years of parking? that is a trend. you know i know my kids did not get their driver's license until angie was like a you should in college. because of the city clid is no need. i think it is a different way of life for this jeneration. i pushed for free muni for kids because once you are a user of the system you tends to be a user when you an adult. nogz this there is a strong nas taggia factor with municipal and he youth nacarries through and you believe in the system.

i have personal attachment to it is important you to and fragile. small local makers in san francisco we are working on this and i urge you to sit down with us and i'm happy to brief anyone on the building process program.

projects that pencilled 5 years ago no longer do and the economy

is under doing the real estate economy under gone a structure change. we need sharpen pencils and help to clap collaborate with you and your office. >> thank you. and i think i have mentioned your new cfo. shoes not able to make it.

and i of course similar to what supervisor melgar is mentioning that there is an approach to your concession to -- some

location by central subway to get lease agreements that is most beneficial to you. if the parking structures this you have are in the generating the parking profits that you generate as you expect it to. what are other ways to use those spaces. i think there are other -- ways to approach your assets. but it does proo require a team iian i'm looking and kinds of thinking how your bridging between the finance team and as well as communication and out reach team. you know may be it is time to -- shift how you want to organize your divisions.

and once we have the budget report before us. we is k dive in the discussions and fringely i do expect to do so with sfmta again given the time and defy silt that you will face. thank you. i don't see other names on the roster we'll go to the next city departmentful next we have sfpuc. >> thank you to the committee

for sit with us today. i briefly want to thank it is mayor's budget office for w with us and the controller's office. devin mc collie i'm ron flynn department manager of the puc. core mission is delivering drinking water to people in the bay area. collecting and treating waste and storm water and generating clean power and clean electricity to the residential, business and customers it san francisco. we are building the utility of the future. whiches protecting the environment. serving an economic engine in lifting update community we serve. this budget embodies 3 over arching priors. the first is affordability. when we created the budget we focus how it would affect our

customers a component the affordable policy our commission adopted in november. established metrics impact of budget increases on future rates the budget in 10 year improve am plan meet those guide lines to do so we prioritize and contrained our 10 year plan upon savings versus our initial proposals. we continue to apply for low cost loan and grants from the state and the federal government to bring down dent service costs and secured 46 million dollars in state and federal reloov undzing to provide direct customer relief to pifor past due bills. we increased discounts for low income customers and now 25-40%. this program has grown from 2100 in 2021 to over 6500

participates now. the biggest reason for that growth and the learning scale out reach focussed on low income and environmental communities. that means meeting the requirements. maintaining our financial standing, rigorous system maintenance in invest nothing our work place. this budget supports our civil service employees the mirjt of new position requests are temporary to per minute innocent conversions job security without adding to the head count. the employees shepherded the agency throughout pandemic. emergencies and clear storm drains in the night. there is lite right low a lot of focus on speeding up the hiring

process it is important to retain employees that are here. the agency is also bolstering racial equity teams to ensure focus on equity accountability and transparency. the third priority is investing where it matters. this budget represents an investment in san francisco. the budget and capitol plan build a puc resilient and vibrant and equal. in the budget with a climate change lens affecting our systems, region and rate payors. climate change in every aspect of our work. the budget is beginning of an 11. 8 bilgz improve am plan that is i catalyst for economic growth creating and sustaining thousands of jobs over the next 10 years many will be good paying union jobs that provide a

dar we to the middle class the jobs will support local businesses and local economy over the next decade. recognizing historical inequity the plan seeks to bridge the gap prioritizing projects in disadvantaged communities equal access to vital service. each of our enterprises developed goals actions or standards that must be met or managed to satisfy the mission of the puc. these levels of service goals were adopted in public meetings. like all departments provide updates to the controller's office part of prop c. and our mission adopted policy this is guide our work this includes the environmental justice and community benefit's

policies and ensure we provide diverse communities with opportunity of workforce, economic development, arts, urban agculture and education. we are proud this lead to the work project exceeding local hire policy. using the program with an example 294 local businesses award more than 762 million dollars across 878 contracts. of those award lbe's 611 contracts worth more than 525 million awarded businesses owned by people color and women.

this survey reveals not having a permanent civil service position the top reasons temporary employees consider leaving the puc.

>> these do include costs pg sxeshgs for purgrid. followed by personnel and nonpersonal costs 14 and 19%.

next slide. our operating budget grow by 20% or 373 million the next 2 fiscal years. this is driven by capitol power purchase increases 214 million 54% of the growth. now straf and nonlabor and than i are 33 million over the 2 years and represent 9% of growth. when you electric at net new requests than i are 1.8% increase of our budget not a major budget driver. this is high level shown and includes staff through 25-26 and water, wastewater, hetch hetchy water and power and cleanpowersf

the infrastructure division this supports deliver of capitol program and funded by our capitol budget. over position requests. we have been responsible and developing our staff requests. first glance 170 newark pierce a lot. over half of this figure 87 positions are for existing staff who performed on going work for our agency. who are in temp refer positions. the new are budget and head count neutral we have been paying with existing funds. a core strategy to invest and encourage retention. the second recent lack of career opportunity and having a position that employees is key

retention strategy. lost many employees the past years to permanent offers leading to a loss of organizal building and gap in critical operational areas. 63 now budget positions to address staffing shortage in water quality, natural resource, infrastructure maintenance and risk management.

appropriated funds before now requests. as you may know we fund our projects through debt prosecute seeds and also requesting 3 billion dollars in debt authorization across the next 2 fiscal years this legislation will be before you next week. and not consideration before the body we are proud and want to highlight our approved 10 year improvement plan total 11.8 million dollars over 10 years. 10 year c ip representatives an investment to meet legal requirements and achief goals building utilities of the future. creating thouz ansdz of most low union jobs the next 10 years and prioritizing investment in disadvantaged communities. many investments are driven by climate change.

largest is the southeast reduction project in the this is the learningest and ensures we reduce nutrients this criminalitied to blooms. projects like ocean beach project. and the folsom storm water improve am project will help our community mitigate impacts of climate change and lastly clean projects reaffirm our commitment and responsibility to reduce carbon e missions. the investments in san francisco will support the economy. the infrastructure and reflect our agency's commitment to righting wrongs and tackling the climate change watch this this concludes and we are glad to take questions. thank you. why thank you. and supervisor walton. next for the present eggs.

a quick question. and i have conversation with thes department on this. we are i think the program is great and a lot of work finishes it will benefit entire city. i do have a question about the fact that we are giving contractors hundreds of millions of dollars for ss ip program and some are not fulfilling the promises to the social impact program. want to know what the puc is dog to make sure they fulfill those commitments. obviously, it assists with lessning the budget impact and provides benefits for the community. >> thank you. yes. the ss ip program is impacting

d10 temperature is a large amount of work. we are paying hundreds of millions that money is for infrastructure, personnel, labor. along with that came commitment to the community to deliver benefits in a way of both direct payments to nonprofits and a lot of internships and hour and work in the community. a variety of reasons that project started slowly on the delivery of the benefits. did not start slowly on the delivery of resource. >> no the project started. we -- we at one point looked at stopping that project completely and going back out and that slowed them up. we are back on track. they have not caught up. our social partnership program

in our external affair's team division is working closely meeting with them. we made it clear. have you and we made it clear we expect and will get all of those commitments to the community. there is catching up to do. there is new personnel at the contractor our contract points working with us. but it is important to us and we are we are focussed on it and meeting with them. but we are not just taking their word. we are public low disclosing when they are doing. when it starts to be even with where the levels should be we will let you know. we'll come and talk to you about the steps quo are take we are engaged in the program.

this sounds like we are prepaying we don't pay for the benefits. >> we pay them for the service they provide. we increase the contract it it is a contract that is general -- designd that they bid out subcontracts and those get added to the price. when we enter the general contract it was for the general

service when we bid out an electric package. >> i'm aware i want to be clear we need to stop increasing contracts if folks are not going to fulfill their commitments. >> i hear you. >> thank you. >> thank you. xrierz walton i appreciate that and wanted to energy for puc as well that is similarly to sfo, i get t. you have existing staff that you now getting the permanent civil service for 85 competiyou have a net 3ft e's are new. and then roughly 66 of them. and -- will have 99 that are new. i think this is something to be a discussion with budget and legislative analyst to see whether that is warrantied.

and our trailing legislation coming through next week look forward to having those discussion about the water bond and other capitol improvement this is is a significant increase in your over all budget. clearly many of it which i do believe and i agree that are necessary we have to do these improve ams. i do appreciate this in your presentation that while the budget over all increased for capitol project but you know -- especially not a significant increase the next 2 fiscal year i want to dive deeper for next week on the ft e as well as capitol budget. to see where we're heading. when we were just a couple weeks ago we were doing approval for

it was pine lake for the emergency. funding to approve for the emergency repair for pine lakeip mention third degree look forward to seeing more about your capitol maintenance budget. specific low for water. and alling that. look forward to see more on this and you can relate this information to budget analyst. thank you we look forward to returning to provide that information and we will do that in the meantime as well. >> thank you. and with that i will call on the next city department. this order i see that rent board is next.

good afternoon. thank you for your patience we had technical difficulties this morning. >> chair chan, president supervisor peskin supervisors mandelman, melgar and walton. i'm kristina varner the executive director of the san francisco residential rent stabilization board. and i appreciate your allowing mow to present on behalf our department the fiscal year 24/25 and 25/26 budget. i wanted thank joshua and the major's budget office and jesse at the controller's office for assistance. >> can you see the rent board's mission. the department's mission in a number of ways including counciling on just cause ordinance. and elis act and eviction

filings and tenant buy out ordinance and maintaining eviction records hold rent mediations and issue decisions to ensure property ordinance receive a fair return. council owners on rights and responsibilities under the lu. maintain housing to better inform the residential landscape of san francisco and the law in a fair and equal way with a lens in keeping community centered. next you will seat organizational structure of the rent board. the department was allocate increased number of and position in response to housing inventory, fee and increased jurisdictional related legislative amendments in 2020 and 2021. one rust amendments was the ability to create more prosecute motional opportunities in the department and have seen employees promote internal low as well as having hireded external talent with most new

employees people of color. vast majority are filled or in interviews. you can compare with chair chan requested the organizational structure of the department. you see here this was fiscal 19/20 delivers from today's growth and previous the ft e count was 35 and positions. you can come per se difference in count from the previous slide. you will seat budget sum row data. proposed fiscal 24/25 with budget of 13 million. you see this shows a reduction from fitsical 24-25 which is due to completion of the board's move and tenant improve am project in the new office space. and to high slight there are no

significant changes nor cuts to budget that xaet major changes. and the budget increase by 560 thousand dollars in fiscal 25/26 due to salary and fringe increases. you will seat budget for the fiscal 24-25. rent board is a department in the expect our source of funding the fee will remain the same as the last 2 years at 59 dollars for dwelling unit and 29 per sro guest unit the department pace attention to residential unit data collection to ensure assessing and collecting the purpose fee to support the d. over 80% of the department's

allocation apreviously the mission by going toward wages to support our w that i earlier described the remainder, 20% including service of other departments and nonpersonnel service support work. the i don'ter's performance measure department uses to determine whether meeting objectives including collaboration with planning department. data collection regarding the number of reason controlled units the average number of days for petitioning pressing of course effective information to tenants and land lords and providing information to limited english communities. our objectives to provide and on the reason ordinance and relay as laws through our call center. front counter, website and out reach.

and hold hearing. the dwfrns a tenant reside in their unit or not. to work with property owners and report in the housing inventory seanother object and i have use this data to inform the landscape and increase transparency to the stock in san francisco. all of this while we are keeping racial equity and he service to commune at the floor. we cannot stress this rent scroll a piece to address the housing crisis and promote preservation of sound, affordable housing. i wanted address a focus we will have for fiscal 25. improving did thea to improve service deliver etch one way is making data better and available and converting more out of hard copy files we have requests for data and make it available.

we will collaborate with data sf and hiring the rent board's analyst for madernization and ease we work with quantities inform housing policy in the city. that is my conclusion. i want to acknowledge the staff for hard work and dedicated public service every day and thank you chair chan and supervisors for your attention to this today. >> thank you. i adopt to thank rent board. i thank you for your leader ship amazing work. i am grateful that the fact we have a rent board in san francisco. and i wanted to highlight one thing and i really look forward to seeing and hoping this rent board highlights. i want to let you know besides the fact you provide spit think

that it seems to mow small prospect ordinance not realizing rent board is neutral organization in the goal is to resolution for lands lords and tenants and to ensure that protection for attentive when is they are in a disadvantaged position. the town hall with the mall property owners show and up monolingual and chinese speaking with your website i was able to translate on the website can i click on chinese and show them that one of the fielths had your website is to indicate that you do support upon landlord and help to make sure they do get rent. from your fasilltation at your -- i don't see names on the

roster we will go to the next department y. with that keep will go to the employee retirement system.

good afternoon i'm alison from the employee retirement system and joined by our chief operating officer. thank you to the supervisors here today for your efforts on behalf of the citizen of san francisco. and for your attention as we present our budget. i would like to thank [inaudible] from the mayor's office and customer tammy from the bla for tireless efforts. and i like to thank all of my clothes that presented before me and i believe there is one after me for their thoughtful presentations and all the w they do again on behalf of the city. >> apologies. right in the mic, please. >> thank you, much. why thank you.

>> so with respect to spurs our budget is tieed our mission. i will start there. spur is dedicated to securing, protecting and investing the assets, mandated benefit programs and providing benefits to the active and retired members. to achieve that mission we are organized in 3 areas. investments, benefits administration and business operations and implementation. for you to achieve we need to sufficient low funds each the areas of our organization. today we serve over 78,000 members in i pension plan and manage 34.8 billion dollars in assets. we managed deferred compensation plan on behalf of 35,000 members and 5.4 billion dollars.

the assets of the retiree health care trust fund. with the budget support of the board supervisors, mayor and retirement board and the dedication of our tremendous staff we have been able to deliver on the mission. i want to provide the supervisors with a couple data points of when we achieved. our funded status as of july 1, 2023 is then %. investment performance exceeded the rate of return and performance over 5, 10 and 20 years. if we had a billion dollars 10 years ago to invest would be worthy 2.4 billion today. on one billion dollars generated additional 1.4 billion dollars. in addition to the investments,

we am upon responded over 12,000 inquiries on spurs connect. over 273,000 members log in our portal. so they can answer questions and look at information specific to them of deferad comp plan a pen % participation rate. to provide context i have data that is dated but when we look at pierce average is 20% participation rate. that's a look back. we are focused on looking forward. put together a plan approved a year ago and that is designed

around 3 pill arts. best in class. financial trenth and institutional adeptness i will focus on the areas where we ask for budget dollars. you understands the importance of pursuing excellence. what we are pursueing year there is ron operational excellence and leveraging technology. with 35 billion dollars in assets we managed for our beneficiaries we have prioritized id resilience and he capabilities. we worked productively with department of technology to work with them utilize their expertise and develop our platform when i come to you

today to present our ask this tie to additional things we need to do this tied to the initiatives to better serve our members. we are look to broaden capabilities for stake holders and the self service for members and capabilities to foster communication. and always primary vigilent with cyber security. we establish a path way. my ask here is to support the initiatives for funding and head count. >> the second area where we're asking for budget is our retirement service. i presented left year to the committee about our initiatives around everaround retirement service and -- thank you for

approving the plan to increase head count. looking for the head count in left year's two year budget this this budget season. in 20 between the contribution rate was upon 25.19%. in 2025, this will be 16.9% a

reduction. the same time we have grown assets 31% increased membership 25% and assets increased 41%. increased assets growing complexity and employ are thkzs we can condition with the right team to invest and serve our members. so with that again thank you for your attention and for that cooperation of the bla and major's office i open up to questions. are you saying you are right now have a total of increase of staff for ft e for it and 7 of the retirement sxefshs 7 that is so a total 11ft e i prosecute

pose out of which 7 suspect approved from the last fiscal year and you are asking for additional 4. but for it? >> correct. >> okay. all right. i wanted to clarify that and the bla is we indicated with other city departments. we are going to evaluate about new ft e's. it is not just about and i think that i am talk to the right person here who understand its is in the just about the spending and revenues of the existing year butt projection of when we are trying to looking at and what that increase the ft e's will look like, too much i think that today we are talking to the earnprize yourself included and the departments and nongeneral fund departments i think that is a consideration

the city has to think about. in the event this some point who knows. d. building inspection.

>> good upon afternoon cheaper and member of budget and appropriation's committee i'm patrick o reerdon. our department protects the communities compliant construction and building safety and maintaining for our community. if we maintain a workforce and focussed on customer service. transparency. ash counselability and professionalism.

this is on track a little heard for to you see in detail. it illustrates our department's 3 main service area permit service. significant game in issuance times and conscience and response inspection requests within 48 hours. so we review plans faster and

with other permitting departments i'm proud of the efficiency gains we have made and want to thank our staff for their hard work and dedication to continuous improvement. this is our two year budget for 25 and 26. and a 3 million dollars increase in labor costs. city over head decreased by a million. and our grant's budget reduced by 500 thousand dollars. this pie charty shows. you see by far the expense is in labor and benefits. dbi revenue based on cost recovery for our service.

in order to determine the true cost service the department engages in a fee study with a consultant from time to time. to costs to provide services and bench mark the costs against the fees of other building upon dealts throughout the state. the fee study found our fees were more than other departments in california. and that we were under recovering in many areas. we propose raising fees which we plan to do responsible low. our plan is to phase in fee increases over 3 years will use our reserves to make the difference until we reach full fee recovery. the ordinance to raise our fees reflects that increase. and on this slide the gray line is our expenditure reflects our costs have increased.

the orange line is the revenues post pan dem and i can our projected recover to match our expenditure in 2027. and the yellow line is our reserves alcohol stable lives in 2027. in order to maintain our improvement i discussed earlier we need to maintain our staffing levels. the budget decreases attrition toarc rit low reflect staffing levels. thank you for your support and i'm available for questions you may have. >> thank you. supervisor melgar. >> i'm sorry director. you are the last and i'm tired can you repeat that last sentence. reduce attrition? what did you say? so -- in order to maintain the

improvements and the build on the improvements we are making, we are decrease attrition to reflect our staffing levels. so in other words, we have many different programs and we are decrease our attrition level to feel have enough staff to be able to do their work >> thank you. >> i have a couple questions for you. so -- the first is that your department is susceptible going on admit city in building industry. interest rates are high. construction costs are high. how do you than you will recover by 2027? when we can't predict what the federal reserve will do? >> we can because as we all understand we are the department on the economy. and budgeted best is a guessing

game is we follow up. we are hoping for the best, of course. >> my second question you and i had spoken about your it systems. and how they coordinate with others in the departments. specific lowly, planning, dpw and fire. i don't have like second degrees. you know this is something we may want to ask the bla but i then and there a lot of folks who may do unpermitted w on their properties do so because of the perceived difficulty. in navigating our system. i know you have done a lot of work and make things you know more transparent. there is this imped am of having

to use multiple systems for one project. even if it it is a deck. i'm wondering if that you know -- sort of improvement in your use technology is in this budget that you presented to us? or if it is something this you may are thinking of deferring until things are better ref now wise? >> we are not deferring our planning for having new are technology, in fact we are work width planning department right now. and the permit center and want to be collaborateerating in the effort, as you stated, the permitting departments all intertwine. so -- tomorrow we are having a meeting with the permit center and planning and will discuss when a new system might look like. thank you. thank you for all your work. >> thank you. >> and i think here is the

question -- similar torwhat supervisor melgar was skchlg it is about your i think your slight aid about revenue and fund balance available to you. is that my assumption that the orange line for the revenue. that is catching up from 2024 all the way to 2027 with your expenditure is because it is your plan that you are increasing your fees over the next 3 fiscal years you are catching up with your revenue and expenditure. why correct y. that's the plan and with gradually increasing revenues that we will come into alignment with expenses and revenues by 2027.

i will include the use of what remaining reserves we have. >> yea, i see that, your fund balance is decreased by 2028. okay. kroo thank you. thank you so much and look forward to the analyst report. around your trailing legislation with your fee stsd the increase coming next week. okay. >> thank you. >> thank you. and i think that is all the city departments buffers today i believe we have to open to public comment. for all the item 1-3. so let's go to public comments for all the 3 items >> we invite public joining us who wish to speak on items 1-3. regarding the mayor's budget for the selected departments. each speaker is given two minutes.

if you -- once you begin i will start your time. >> thank you i'm cyrus hall peek to the sfmta budget you heard about today. i'm an oldvacate in the city for public transportation we near i difficult mobile home and i -- it is doyle say the budget is the best budget we could achieve in the political context. advocates pushed and we did win in the budget including reduced fair, 14% over 2 years instead of 20 pvrms a new push from the agency on low indm riders for important measure and focus vision zero. i want to bring attention to the board fact that low are fares were possible. maneuvering on the board of supervisors made keeping lower

fares impossible. moving forward we cannot say no to funding opportunity without getting serious about taking up every funding opportunity like the expansion of our pp. like expanding hours in the city, we brlgd toward massive service cuts and the service cuts don't start in july of 2026. they start before july of 26 as the agency has to staff down and does not back fill. we need everyone in the city alined on making sure that our option does not fail. we don't have time from an environmental stand point, building more housing or all the riders only option is muni for another public transit melt down in san francisco. thank you very much. >> thank you.

if we have in further speakers? that completes our queue. >> thank you. no more public comment it is closed. and mr. clerk do we have other business today? >> we need to dispense with the items if we continue them to next week >> that's right. >> i will make the motion to continue all item 1-3 to next week. and a roll call. >> >> second. >> and on that motion seconded by member walton. that items 1-3 would be continued to the may 22nd meeting of the committee. vice chair mandelman. >> aye. >> member melgar >> aye >> member walton. >> aye. >> member supervisor peskin. >> absent and chair chan. aye >> thank you and the motion

passes. and mr. clerk do we have other business today. >> that concludes business. >> thank you and the meeting is adjourned.

>> good morning. today's wednesday, may 15, 2024, and this is regular meeting of abatement appeals board/building inspection please mute yourself in you're not speaking. >> roll call. >> president chavez here. >> vice president neumann here. >> commissioner alexander-tut. >> commissioner shaddix here and