make it said that jackie bryson does not have to turn into jackie chan to get up and down the street. back grex any other public comment? -- >> any other public comment? >> that afternoon. i am chair of the western soma citizens planning task force and some of you may know that i also served as the neighborhood representative of the entertainment commission for the last eight years. no longer on the commission and i have to make it clear i am only speaking on my own behalf today. i am also speaking as a resident 35-year resident of south of market. i live within a block of the 11th street corridor and have

expertise in the area of neighborhood nightclub relations. there is no doubt that there have always been bad players on 11th street. the dna lounge is not one of them. their security has always been excellent. they have developed a particular expertise in handling crowds, especially those under 21 since they got their type 47 liquor license. they made major physical improvements to the building, tens of thousands of dollars worth of structural improvements to mitigate sound issues and they work very well with the neighbors. the general manager did attend this, leadership council meeting a couple of months ago. and the group voted unanimously to support this project.

these are among the real grown- ups 11th street. i fully support of their application to expand this entertainment use and i hope you do as well. thank you. >> any additional public comment? >> hello. i am -- i read one of the letters that is in the packet. i live on north fixed-rate something like 200 feet away from the lounge. i have lived there for eight years. i have lived in the city for 15. i wanted to restate i moved to the area at explicitly because of places like the dna lounge. i love being near there. there also a neighbor. when i heard about the combination, that sounded like an awesome thing to me. i have been to other places that are like this, more unified,

awful restaurant and performance space. it is a great kind of thing to do. it is also my live around the corner from this. that is all i wanted to say. >> thank you. president fong: any additional public comment? >> commissioner borden: this issue of making sure the sidewalk is kept clear, i know that happens to people and i know that there is stuff that looks after the sidewalk. all -- this is a very good neighbor. overall. i would advise to make sure the sidewalk is kept passable and move to approve with conditions. >> second. commissioner sugaya: i wanted to know the changes are fairly minor. the entertainment space remains the same. there is perhaps additional second floor space that could be

used. it seems fairly minor to me. commissioner antonini: i know of other establishments that have connections between, there are two parts. under two different names but it helps the flow lot. people could come in and out in different places but could connect between the two. it would be one. with assurances. i think the standard approval conditions that the killing will allow space for a sidewalk passage. -- queueing would allow space for sidewalk passage. you have to leave space on the sidewalk for passage when you kill up. i am supportive. vice president miguelcommission concerned with fostering and

maintaining the right environment. i am comfortable supporting. president fong>> the mission --n the floor for approval. thank you. on the variance. president fong: noting there is no physical expansion of the building. there is a communicating opening between two existing buildings. there is no increase in this area. that would be all for that item. >> thank you. >> with your approval we will hear this next item regarding the budget and take a short break. >> thank you. commissioners, we will go to item number 12. this is the fiscal year 2012 to

2014 program budget. >> good afternoon. this is the first of several budget presentations for you for the coming of two fiscal years. as you may recall this is the first time the department will be preparing a two-year budget for fiscal years 2012 and 13 and 2013 and 2014. i wanted to give some preliminary comments and our finance minister -- manager will present the details of the budget. you have copies of the powerpoint. a couple of things. one of the highlights of those accomplishments of the current and recent fiscal year, to remind us all that while some of our work does have very extensive time periods, we have accomplished a lot in the last year. namely, eirs and approvals of

parkmerced and the executive park north. the america's cup terminal. america's cup and cruise ship terminal. the glen park plan. many projects related to the puc water system improvement project and the largest of those being the calaveras dam. eir's in midstream include the transit center plan, the academy of arts, cpm see, the mexican museum, and the western soma plan. all of which should be coming to you with this fiscal year. the environmental planning staff has done a lot of work this year related to the bay area air quality management district. and those regulations which have taken an enormous amount of time this year and have affected a lot of development projects. there has been some recent court rulings on the case which we

will be bringing to you shortly in the next few weeks. on the legislation side, a few highlights. the restaurant legislation that you recently passed on to the board, student housing work and the first safe building ordinance are three of the highlights we are seeing. we're seeing a record of number of legislative proposals by the board. we're seeing 40 or 50 pieces of legislation a year. one of the things we will -- we are looking at in the new budget is whether we should be actually adding additional staff to that function because of the sheer amount of legislation. there is more legislation produced than any other part of the city code. a lot of time has been spent on the academy of art. and just a note that the board of appeals have issued their first appeal, decided their first appeal related to the historic preservation and the upheld the decision in that

case. on the preservation side, we have finally completed all the eastern neighborhoods surveys which i am pleased to say and the board -- commission has adopted a number of administrative procedures for certificates of permits to alter. finally, the long-range planning side, the housing element was adopted late last fiscal year. the better streets plan was adopted, the part blend plan was adopted. we initiated the central corridor plan for the fourth street area. we produced some of our initial thoughts for the future land use scenarios for that area. of course we're continuing to work on a number of urban design and park projects for the city received the latest round of proposals for the park place for the coming years. before i turn it over to keith, a couple of highlights for the coming fiscal year which will be affecting us in our work plan and budget. the most significant is the

permit tracking system. that project, now that we are in the implementation mode, i am pleased to tell you that project is under way. we have to develop as well. we are developing a serious amount of staff time. we have eight fte's. it is very important. because as i said to several folks, this is a 40-year investment we're making for the city and it is important we get right. our preservation staff will be initiating some new surveys and community outreach work funded by a certified local government grant. we're looking forward to that work. the long-range plan, the city wide planning staff has proposed a new initiative called better neighborhoods programs which you'll see in your budget. witches -- which is a new focus on existing neighborhoods, specifically commercial districts. we will be getting a dialogue

with some neighborhoods who are seeking to strengthen their communities for policy and improvements and not necessarily through zoning changes. this will focus on how to strengthen the existing districts without necessarily doing a longer range neighborhood plan looking at zoning changes and height increases and that sort of thing. we will work on the transportation -- we have been working on it for quite some time. we will begin the eir for the transportation sustainability program which is the program that we used to call -- this is the program that will be restructuring how we do transportation financing for development projects and we will have a major impact on the ceqa reviews for those projects. that is under way. legislation will be introduced very soon on that. that will require an eir. and the eir will start within the next few months. finally i am pleased to report that finally after several

years, our new communications manager will start next week. i am pleased that you will be joining us at long last. with that, i will turn over to keith demartini to give you the details on next year's budget. >> thank you, and good afternoon. i have some handouts for the public. if anyone would like a copy of the presentation. thank you. it is my pleasure to be here today to present a draft board program for the upcoming two fiscal years. going over first draft of the on -- upcoming budget calendar for fiscal into what the current projection looks like. and over what the mayor's budget instructions have been for the upcoming two years of how it affects our department and going

to more details about each division's work program. starting with the calendar, today is the 12th. we will present a draft of the program to you and next week to the historic preservation commission. in february staff will be presenting the draft budget revenue and expenditure budget for the department, followed by coming back to the commissions in mid-february to go over the final work program and budget in order to submit our department's budget on february 21st to the mayor's office. over that -- the next couple months we will have dialogue between our office and the mayor's office about finalizing the budget. we'll come back if there is a need to review the changes at which that -- time they mayor will propose his budget on june 1. i will continue to keep everyone updated throughout this process. moving on to a projection for

the current year's operating fund. in a memo that i distributed to the commission's last month i had provided a projection at that time on the department's operations and at that time i was projecting approximately $600,000 shortfall in the operating account. due to mainly a lower volume the department was experiencing in permits being reviewed at that time. since then, volume has ramped up pretty substantially over the past few months especially on some of the environmental pieces. on the revenue projection has been updated and i am projecting -- not projecting any shortfall whatsoever. that is a good sign. this information will be used as the baseline for our base of revenue projections for the upcoming fiscal year as well. moving on to the upcoming budget cycle, this is the first year

that all departments will be required to submit a two-year budget for fiscal 12-13 and 13- 143 the mayor's office has informed departments of its general fund projections and those two fiscal years, you can see the general fund is projecting a shortfall of $262 million in fiscal 12-13 and i and 13-14. there are many institutions built into these figures. this does assume current staffing levels across all city departments in the current fiscal year moving forward. it also reflects financial ramifications of the passage of proposition c, pension reform. requiring greater contribution from employees into account. it does assume continued slow and steady economic recovery of continued cost growth and. benefits. the answer any of the state budget situation and the upcoming labor negotiations for any of the opening of 27 labor

negotiation contracts and to the upcoming fiscal year. there are many uncertainties still imbedded into these projections. for the department, we're required to submit a budget that shows a 5% reduction, the target of our general fund support each year in fiscal 12-13. this is $95,000. in addition, 5% in the following year as well. on top of that we are to submit a budget with a 2.5 contingency target. that is $40,000. on top of that as well, we are to reduce our general fund full time equivalent of possession count by 1% each year. that is approximately $10,000 worth of positions, 0.12 per position. it is rather minor. we of -- will submit a budget that meets these targets for the upcoming budget years but i wanted to mention, the mayor has issued his 17.

jobs plan. and i wanted to say that the department will consider the strategy that is included in the plan and our budget submission. it includes things such as attracting a growing jobs, reforming the payroll tax, hiring san franciscans, things of that sort. we direct the departments to consider those strategies in their budget submission. moving on to the department's base draft work program for the upcoming to budget cycles, this graph shows a resource allocation across the five divisions within the department. there ft count and the percentage of the total resources within the department. the discount in 12-13 is over 152 full-time equivalent positions. the department is still exploring whether additional positions may be required to meet additional priorities and needs in the upcoming tv zero fiscal years and we will be communicating that information to you during the upcoming

budget briefings. i will go into more detail for each of the divisions. what the major work program activities are for the upcoming two budget years. first the current planning division. it will experience a slight decline in its full time equivalent count. from the current fiscal year to the upcoming budget year by approximately 1.84 fte's due to the reassignment of staff from planning to other divisions which are will talk about in a little bit. also removing some one time funding for work related to the america's cup. that is similar to what is going on in environmental planning as well. a majority of current planning resources are dedicated to application review and processing. it represents more than 40% of the staffing in its division. at this time, we're expecting application volume to hold pretty steady and consistent as we're experiencing right now.

we will continue to look at those projections throughout the coming weeks to revise those projections as well. as the director mentioned, a significant staff resources dedicated to the permit and project tracking system implementation. planning has over three dedicated staff to this implementation effort. moving on to historic preservation, there is a slight decline in resources. some of the major activities will be documentation of the social heritage resources in japantown and wes soma. work on the central corridor serving in the civic center. -- resources in japantown and west soma. this is showing a slight decrease in dedicated resources. that is mainly due to more dedicated resources at the public information counter. it is assuming there are not a lot of public inquiries coming into other staff which has made for more efficient process.

graeme planet continues to control its overhead expenses and -- current planning continues to control its overhead expenses and they have increased the amount of time billed to fee based application were. we can build our time to the project. the department has completed a two-year effort to create a new paraprofessional classification called the planner technician. planning has two planning positions that are recently filled in fall 2011 and these positions should result in better efficiencies and consistency in perma-press is in reviewing. we want to make sure you were aware of that. moving on to the of long-range planning or the city wide planning division. the city wide planning division will experience a pretty insignificant reduction in its fte count due to one time or on

the america's cup project. with the conclusion of the planning efforts that the director had mentioned earlier, the division will be able to focus many resources on updates to the city's general plan. the health care services master plan, and the urban forest master plan. the group will strengthen the city's neighborhoods as the director mentioned as well. on to the community planning program, showing a slight reduction of resources dedicated to this program. they will be focusing on two major community efforts. one being the central subway downtown corridor plan and to being the center for services district. on to the plan implementation function. they will be focusing on public realm needs in other areas such as the interface between south of market and mission bay. in the analysis and reporting, information analysis program,

they have that capacity to expand its analysis. [no audio] without expanding its overall staffing levels. changes that are related to management and administration line item include moving some of the managers in the division to activities reflect more of their actual time on some of the work they're doing on a variety of pratt -- projects we mentioned earlier. in the environmental planning division, a majority of resources are dedicated to preparing the documents. they're experiencing over one full time equivalent reduction in their account due to work on the america's cup project. many of the projects that are currently under way is with the director mentioned. two important eir's that are expected to feed and is the better market street plan.

environmental planning has been playing a role in the intervention concerning high- speed rail. the director provided you an update on the transit sustainability program which there will be also involved in. moving on to the zoning administration and compliance division. this is the newly created division this current fiscal year and the code enforcement staff and the general advertising sign program. there is a 0.5 of an fte. due to reassignment for more support work. the general advertising sign program turning its focus on to maintenance and the upkeep of the annual required filing by advertising signs. -- sign owners. the administration division.

there is about one fte account of a year-over-year change and that is due to the reassignment of the graphic artist position in the current planning division which will be reassigned to the administration division to support the new communications manager which will be starting next week. and the administration division does have quite a few dedicated resources to the implementation of the tracking system as well. i would like to mention that the finance division -- finance office will be focusing on a comprehensive fee study this fiscal year. we have contracted to comprehensively review the fee structure for the department and we have also ended take -- undertaken an effort to review and update performance measures to focus more on efficiency and outcomes in customer service. with that, the division chiefs are here as well as myself to answer any questions you may have. thank you.

president fong: thank you. is there any public comment on the presentation? seeing none, commissioners, commissioner more. vice president miguecommissione reflected in the bad -- budget allocation -- not to say significant. yoof staff means you need to transition. >> that is a good question and the answer is i do not know yet. it is not going to -- quite clear what our budget implications will be. i do not know yet if we will be able to include it in the budget that you see. before we send it to the mayor or it will be somewhat after that. it affects some number of

departments and we're working together to figure that out. my hope is we can do it in time to incorporate it into the budget before it goes to the mayor in february but it might be a separate package that comes to you at a later date. i do not know yet. >> yocommissioner moore: quite a bit of work needs to be done in applying [unintelligible] those are very big pieces. if the project will go forward their respective if they are under previous development or under your leadership. >> to reiterate, the three big project areas i mentioned will be handled the way they are now through the successor agency. what is not clear is how much impact the department will have on projects that are in other redevelopment areas that do not have contractual obligations. that is what is the unknown

right now. >> otherwise i thought the presentation was very good. it was very tight. many of the questions which we used to ask in previous years have been clearly answered and it will be very difficult to -- declining resources to have -- respond to the continued mandate to reduce your reliance on general funds. i think it is a very difficult task to meet, given what we all know has happened within the last few years. >> thank you. president fong: commissioner sugaya. commissioner sugaya: this is following up on the redevelopment agency's devised -- demise. is there any thinking about any departmental realignments, or combining? we have planning and we have dvi, the mairs housing office

and the community development, umpteen numbers of agencies of and apartments that seem to overlap in terms of what the redevelopment agency was doing. i do not know of there is anything about perhaps reorganizing the city in any way. >> there has been some very brief discussions but i have not -- to my knowledge, i have not been involved in any discussions with mayor lee. i believe that would all be on the table. commissioner sugaya: i do not have specific ideas but just curious. >> i would like to comment on the department being nimble with the america's cup. iand point out the long term planning things that have been great successes. there have been awards that have been given, the better streets

plan and we're looking at things like what first programs. i want to give emphasis to staying nimble and keep those types of long-range programs that can affect a lot of people. the appreciation overall san francisco. -- of san francisco. >> we will be back in a couple of weeks. thank you. we will take a 10 minute recess. >> commissioners, you have a 10 minute recess.