spanish] >> it is going to be a good thing for us to take used motor oil from customers. we have a 75-gallon tank that we used and we have someone take it from here to recycle. >> so far, we have 35 people. we have collected 78 gallons, if not more. these are other locations that you can go. it is absolutely free. you just need to have the location open. you are set to go.

>> good morning, welcome to the budget and finance subcommittee. do we have any announcements? >> all persons attending the meeting are requested to turn off their cell phones and pagers. if you have a speaker part,

please place them to the box to your left. items taken of the full board will be taken next week unless otherwise indicated. >> thank you. please call items 1 and 2. >> hearing to consider release of reserved funds, san francisco public utilities commission (file no. 081453, ordinance no. 311-08), in the amount of $170,549,282, to fund the construction for the water system improvement program (wsip) project cuw37101 - crystal springs/san andreas transmission system upgrade. item 2. resolution adopting findings under the california environmental quality act, including the adoption of a mitigation monitoring and reporting program and a statement of overriding considerations related to the crystal springs/san andreas transmission upgrade project, part of the water system improvement program for the improvements to the regional water supply system, otherwise known as project no. cuw37101, including the mitigation habitat actions at two sites in san

mateo county; and directing the clerk of the board of supervisors to notify the controller of this action. >> good morning. i am a project manager with the assets puc. i will give you a brief presentation on items one and of the vote. the project we are talking about is the san andreas transmission system upgrade. this is part of the program. the main objective is to increase and improve the seismic and deliverability of the facilities. the crystal springs and san andreas system provides for emergency and supplementary water supply for the san francisco peninsula by moving water from the various reservoirs and feeding into

other locations which would then be traded through distribution systems. the system consists of three primary reservoirs, the upper and lower crystal springs reservoir, the san andreas reservoir. there is a major pump station -- thank you. pump station, pipe line, and various other facilities. this map out lines the system. san bruno is over here. the full extent of the math is about 10 miles. the shaded green area is the watershed we are managing.

the project consists of three major components. one is the replacement of the existing pumping station. the second one is various improvements in seismic and various facilities. a third component is a substation from pg&e. this is the status of the environmental review. we have released the eir back in november, and we closed the bid. eir was considered by the planning commission and certified.

sfpuc adopted it on may 11. budget and funding. the total project cost estimate is $192 million. certain cost is estimated at $147 million. we are in agreement with the budget analyst recommendations. for corporations. major milestones of the project. we total lies the construction bid last june. we expect it due on august 12. we extended the bid psycho because of the complexity of the projects. we hope we can achieve the award in september and begin in october. in total, this will be about 36

months at a totatotal construct. construction would be finished a bit earlier in october 2013. >> how many proposals have you received so far? >> we have not closed the bid to get, so we do not know. i will be happy to answer any questions. >> thank you. let's hear from the budget analyst report >>. >> inadvertently, the commission requested a release of the fund unreserve for construction costs. normally, as the department indicated, construction bids are just around the corner. normally, i would have

recommended to continue this item until you get the construction did, however, the department pointed out that that would delay the process. our recommendation is on page 6 of the report. we recommend you put this on controllers reserve and any difference between the construction bid amount and the estimated cost of the project would then revert to budget and finance committee reserve. of course, we recommend that you reduce the requested release by $22 million for the reasons that i mentioned. that was just an error. we also recommend you adopt the seqa findings. >> thank you for the report and for your presentation.

we can open this up for public comment. seeing none, public comment is closed. i am told that there is some concern about the water quality as an effect of this. q you have any information? >> i do not. i understand the water quality bureau will be looking into it. i do not have any specific information. >> assistant general manager, cfo. the water supply is completely safe. we have been working with the scientific community to review accumulation of mercury in fish. there is some natural levels of

consumption, in lower levels species, bottom feeders. our water, however, has no signs of measurable or jury. >> do we know where the source of the mercury is? >> it could be naturally occurring. it could come from particular matter selling into the stream bed and then into the soils. as fish feed on the bottom and consumes soil, lower level plankton, matter, they could accumulate in the fish. as far as the water goes, while the fish swim in the water, it is not a function of the water. it is safe and we are not reporting immeasurable level of any concern. >> thank you. motion to except the budget

analyst recommendation. moved with recommendations. without objection. madam clerk, -- thank you for your presentation. we look forward to hearing from you again. madam clerk, item 3. >> resolution authorizing and directing the port executive director to execute the third amendment to the maintenance and management agreement between the city and county of san francisco and the redevelopment agency of the city and county of san francisco for the maintenance and management of rincon park by the port, extending the term of the agreement from june 30, 2010, to june 30, 2013. >> thank you, terry avalos. --chair avalos.

the proposed resolution looks at need agreement between the port and redevelopment agency. this is to extend the term from july 1, 2010 to july 30, 2013. this agreement was first executed in 2003 to accomplish the park improvements in the ring, park development plans. under the existing agreement, the port is maintained with maintaining the park. the four phones and the land. the cost is approximately $219,000 annually. we are here because this third amendment extends the terms more than 10 years. we agree with the it budget analyst recommendations to provide for retroactive approval and to change the date

of the extension. i am here with david to answer any questions you may have. >> mr. rose, if you could share the report. >> the only thing that i would add, as ms. forms indicated, the estimated cost under this amendment are about $190,000 annually. that is the money that would be reimbursed by the lead development agency, together with the developer in the board. our recommendation is to amend the resolution for retroactivity and to stay the correct extension period is july 1, 2010, instead of july 30, 2010. so it would be retroactive to that july day. >> thank you. we can open up for public comment.

>> walter paulson. the port commission and rincon park and was not july the port commission and rincon park you are fixing it up good for everyone we are going to have a good time will you help us fix it up i hope you will the port commission and rincon park. >> thank you. if there are no other members of the public that like to speak, we can close public comment. move forward with recommendations. without objection. thank you.

>> good morning. welcome to the budget and finance committee. i am john avalos, the chair of the committee. i am joined by supervisor mirkarimi and supervisor elsbernd. madam clerk, can you share any announcements? >> all persons attending this meeting are asked to turn off all cell phones or pages. if you wish to submit speaker cards, please turn them in at the real to your left. if you submit any documents to the committee, please submit an extra copy to the file. nebraska items recommended out

of committee will be discussed at the board of supervisors meeting later this week unless another date is indicated. chairperson avalos: before we start, i would like to say happy birthday to supervisor ross mirkarimi. [laughter] call item one, please. >> resolution approving the issuance of tax-exempt revenue obligations by the california enterprise development authority in an aggregate principal amount not to exceed $11.50 million among other things to refinance various capital facilities owned by brandeis hillel day school and other matters related thei reto. >> good morning. i am with the controller's office. the item is an approval to

issue $11.50 million by california enterprise development authority for brandeis hillel school. there is no fiscal impact to the city and the city is not responsible. chairperson avalos: thank you. any comments or questions? we will have public comment on item one. seeing no one come forward, we will close public comment. a motion from supervisor mirkarimi without objection. it will go to the full board with recommendation. >> item 2, approving the issuance of tax-exempt revenue obligations by the california enterprise development authority not to exceed $8 million among other things to refinance various capital facilities owned by the urban school of san francisco. supervisor mirkarimi: i brought

this item forward. it is a straightforward matter. for the urban school revenue organizations it will be used to refinance, construct, and equip the urban school. they requested that the california enterprise development authority issue these revenue obligations. the city and county as an associate member is required to approve the revenue obligation. chairperson avalos: ok. let us open up item number 24 public comment. -- and let us open up item number two to public comment. we will take that without objection. madam clerk, please call item 3. >> item 3, resolution accepting and expanding a gift valued at not less than $1.50 million from the friends of dolores park

playground and the mercer fund to the recreation and park department for the renovation of the children's playground. chairperson avalos: do we have a representative from the rec and park department? let us go ahead and open it up for public comment. seeing no one come forward, we will close public comment. a motion to approve. we will take them without objection and move to the full board with recommendation. an >> item 4, resolution authorizing the san francisco department of public health to accept and expand retroactively a grant from the centers of disease control and prevention in the amount of $166,666 to fund the stop study for june

15, 2010 throughout june 14, 2011. chairperson avalos: any representative from the department of public health? >> i am from the department of public health. the purpose of this study is to look at the feasibility, cost effectiveness, and yield for a new training for acute hiv. chairperson avalos: public comment on item number four? we will close public comment. thank you for your presentation. supervisor mirkarimi: motion to approve. >chairperson avalos: without objection, to the full board with recommendation. >> item 5, resolution authorizing the san francisco department of public health to accept a grant from the california office of traffic

safety in the amount of $200,000 to fund the san francisco pedestrian safety project for october 1, 2010 through september 30, 2011. >> i work with the department of public health. this is from the office of traffic safety to help develop a city-wide pedestrian network, which will help us prioritize spending on infrastructure projects in the city regarding pedestrian safety. this is a collaborative grant with the planning department and the mta. chairperson avalos: very good. we can open this one up for public comment as well, for item number five. we will close public comment. supervisor mirkarimi: motion to approve. chairperson avalos: we will take that without objection. please call item six. >> resolution authorizing the sheriff's department to enter into a third amendment to the

agreement between the city and county of san francisco and a remark -- and aramark correctional services to increase the contract from $24 million to an amount not to exceed $30.50 million and to extend the contract term to june 30, 2010. >> i am from the sheriff's department. we are requesting approval on the extension of our contract. we have renegotiated with our provider, achieving some significant savings. we are asking for a two-year extension on the food service contract. chairperson avalos: mr. rose, please share with us the report from your office. >> mr. chairman and members of the committee, as shown in table 5 -- this is on page 6 of

our report -- depending on whether or not the contingency is expended, you will note in table 5 there would be an estimated savings, if you approve this third amendment as appeared to be -- as compared to the existing agreement, you would achieve a savings. furthermore, we note on the top of page 7 of our report that the cost per meal pricing model -- that is what this would be. that is new. it could cause total cost to exceed the current cost provided under the fixed cost pricing model under the current provisions. according to the cost per meal pricing schedule provided, it would require 665 inmate increases of the inmate population. that is a 36% increase.

that has never happened in the past 10 years. the highest in the population was 2157. we think it was a great idea to do this on a cost per meal pricing model. we also point out the reasons why the department is asking you to exercise or amend the existing agreement rather than go out for competitive bid. this contractor has been doing this work for a long time for the sheriff's department, since 1980. we concur with that conclusion also. on page 8 of our report, i would point out to you that there was a prior third amendment, which

the budget analyst had concerns with. as a result, the sheriff's department withdrew that amendment and has submitted this amendment that is before you. if you compare the initial amendment that came before the board, it was never heard. this proposed amendment you are now hearing -- the estimated savings per year is approximately $52,191 to $356,393. we recommend you amend the resolution to reflect the correct not to exceed amount. there is an error in the resolution. the correct amount is $22,885,000. we recommend that you amend the resolution to reflect that the third amendment is retroactive to july 1, 2010, and recommend

you approve the resolution as amended. chairperson avalos: thank you, mr. rose. supervisor elsbernd: mr. rose, if you could just verify this contract. i remember a couple of years ago an issue came up. i want to make sure it is not included. there had been an executive order issued that food purchased had to be purchased locally, and as a result the contract costs were significantly more expensive. that provision went away in this contract. i want to make sure that provision is not in this contract. >> that is correct. >> that is my understanding, supervisor. supervisor elsbernd: good. chairperson avalos: i want to thank you for the work of a department on finding cost savings and negotiating contracts for the