[laughter] >> we are going to be going live in just a second. mr. president, the police commission is returning to open session. first of all, we passed item

eight, but we are on item 12 at this point. >> please call item 12. >> item 12 is a vote to disclose the information from closed session. >> move not to disclose. >> so ordered. >> do you have something you have to announce? >> public comment? >> none. >> moving on to the adjournment item. >> will move to item 13, adjournment. >> the meeting is adjourned. thank you, everyone. >> the police commission will adjourn.

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>> good morning, welcome to the budget and finance committee. my name is supervisor john avilos, the chair of the committee joined by supervisor sophie maxwell who will be sitting in as a member of the committee in replace of ross who is at the coastal committee. the clerk of the committee is mr. victor young. mr. young, do we have any announcements? >> yes. please turn off all cell phones and pagers. if you wish to speak during public comments fill out a card and turn it in to myself. if you have any 2k0789s please include a copy to the clerk for the file. the board of supervisors agenda on september 21, 2010 unless otherwise stated. >> thank you, mr. young. please if you could call number

one. >> item number one, resolution approval the agreement between the city and county of san francisco and the nonprofit institute of aging, community living fund and linkage program services to adults with disabilities for a total not to exceed $13,941,544. >> very good. an and colleagues, i have and perhaps you have on your desk as well, an amendment, actually reset the total amount for the agreement to $16,144,186 and make that amendment here. >> if we can do that without objection. okay. >> good morning, chairman and members of the committee. i'm david flores jr., senior administrative analyst for the human services agency and contracts manager for contracts

of aging and adult services. with me is david concern erner. we are here to introduce for your consideration amended resolution 10-0832 requesting your authorization for the agency to enter into a new grant agreement with the nonprofit institute on aging to provide case management and linkage, respite, program services to seniors an adults with disabilities for a total not to exceed amount of $16,144,866. the maximum term we are proposing under this grant agreement will run from july 1, 2010 through june 30, 2015. the institute on aging has over 30 years of experience serving elders and adults with disabilities through uncommunity based and social services. the i.o.a. currently operates 16 programs reaching over 20,000 members of the community.

the i.o.a. programs address issues affecting frail elders with cognitive imparents and mental illness all of whom are at risk of institutionalization. it ranges from day services to therapy offered in the consumer's home. the agency maintains an appropriately diverse staff with knowledge of diverse cultures to ensure services are delivered effectively and in a culturally appropriate manner. specifically, the purpose of the grants, the purpose of case management is to provide assistance in the form of access or care coordination in circumstances where the older person or adult with disabilities and or caregivers are experiencing diminished capacity to function including personal conditions or other characteristics which require the provision of services by formal and or informal service providers. just to briefly summarize the intent of the linkages program which we're also asking for

your consideration is to prevent premature or inappropriate institutionalization of function lale impaired adults 18 and old are by providing intensive case management, care planning and monitoring and follow-up and comprehensive assistance and services. finally, the basis for the community fund living program is intended to reduce unnecessary institutionalization, providing older adults. untense dwriff case management and purchase of services to avoid institutionalization of seniors and adults with disabilities. i'll now hold my report in advance and respond to questions the chair or members may have. >> thank you very much. let's hear from mr. rosen.

>> mr. chairman, members of the committee, given that these agreements would begin july 1, i recommend that you amend for retroactivity and based on the r.f.p. process we recommend you approve as amended. >> very good. thank you, mr. rose. i just have one question, pretty simple one. that is i notice these contracts have different terms and what is the reasoning behind that? >> the reasoning behind sit under -- we do receive a level of state funding for linkages and case management. the maximum allowed by the grantor is a maximum of three-year term with a one-year option where we have more flexibility for a maximum five-year term for community living fund. >> that will go to 2015 with the extension. >> yes. >> okay. we can open up this item for public comment. any member of the public who would like to comments on number one please come forward.

seeing no one come forward, we'll close public comment. motion to approve from supervisor maxwell and we can take that without objection to the full board. >> the further amendment for retroactivity. >> we'll except the recommendation as we move forward as when. without objection, colleagues. we're done. mr. young, if you could please call item number two. >> item number two, resolution authorizing the, entering into agreement with the tournament players club of california for management of clubhouse and golf course at harding park and fleming park, excluding operations. >> good morning, supervisors. this morning i have the pleasure of presenting to you a management agreement between the city and the tournament players club of california, a wholly owned subsidiary of pga golf courses for the operation

of harding park club and golf house. the city and the pga tour have a master agreement which will bring a total of six international golf tournaments to harding including the amex cup in 2007, last year's president's cub and the shjuan cup later this fall. similar to the america's cup, each of these events has a significant impact on the city. the president's cup alone brought in $80 million in economic activity in to the city in 2009 on top of the 28 hours of international television coverage that displayed our city to 550 million households in 235 countries. events such as this would make harding one of the top three public golf courses in the country. right along with torrey pines in san diego and beth page in new york. both of which have hosted the u.s. open. when we opened or the newly renovated harding we all thought we had a gem of a public golf course on our hands

but i don't think we expected it too become the international tax breaks while it is. while kemper, our current manager of the golf course has done an excellent job managing the facility the past seven years we've learned some lessons along the way with the help of the board's budget analyst and several community members about -- that have helped us shape the agreement before you today. we think that the agreement that you have before you is in many ways a significant improvement over the existing agreement. and we've tried to actually learn and benefit from the golf course that we have which is one of the reasons that we decided not to extend a contractual option to continue kemper but rather to put the course out for bid to see how much better we could do. and we think we've done a lot better. first and foremost in partnering with the tbc and pga golf courses we're hiferinge a manager that is synonymous with the name of golf. the added exposure will not

only increase the harding park brand but generate additional revenues for local hotels and restaurants. as my staff will discuss, the ttc will receive no management fee but only an incentive fee, a savings of over $290,000 a year. it's important to note that the tbc and pga are so interested in becoming affiliated with harding they're willing to do so with no guarantee of receiving a penny of revenue. the tpc and the pga is not as economic. but it is rather inin sharing a grand brand and maintaining a course that has become an incredible treasured asset for the city and the game of golf. in parning with the tpc it is reassuring to know we will be working with a manage deeply committed to public golf and as committed to keeping the golf course maintained by our own employees. in fact, even before the tpc

was selected to manage the golf course, the pga had placed a renowned agronomist at the course to provide training and expertise and some leadership to our city staff on site in the -- some of the finer course of golf course agron onlyy and maintenance at no spence to the city. if you look at harding at the moment you'll find two things. the course has actually never looked better and we think staff morale has actually never been higher among our gathered first and maintenance staff. -- gardeners and maintenance staff. i was out there a couple of weeks ago and i was stopped repeatedly by my own staff who said how guide they were about what was happening at harding and how appreciative they were of the relationship we've cult state vathed with the pga. we are doing quite well out there. i'm also very excited that tpc is committed to partnering with the first tee program. the first tee teaches children

not only about the game of golf but promotes character development and leadership values. over the years at harding the first tee has worked with countless at-risk youth and given them the opportunity not only to participate in athletics but to learn more about themselves. so we're very excited about the agreement. nick kensgri my staff is here to walk you through the details and we will take questions you have, but i want to take a moment to thank, we're blessed to have sandy tatum in the crowd today who has worked tirelessly at harding over the last 10 years to create the harding park we know and love and i did want to single him out and thank him for being here today. i'll turn it over to nick kinsey who will walk us through the agreement. >> good morning, supervisors, nick kinsey, the assistant

manager of concessions, we do have a power point presentation here. >> you're a little tall. if you want to speak more directly into the mike. >> i'll try. but we'll need an extension. thank you, supervisors. as general manager ginsburg said the general manager before you is a management agreement between the city and tournament players club of california for the management of the harding park golf course. to give you a little bit of background, seven years ago the city signed an agreement with kemper management for the management of the facility and as general manager ginsburg said that agreement actually had a two-year extension which the department felt that we could put this out to bid and perhaps obtain better financial terms for the city. so in february of this year we put out a request for qualifications soliciting bids to manage the golf course and we received five timely,

responsive bids, ultimately the department and our commission selected the tournament players club of california as the highest ranked respondent and we have since negotiated the management agreement that's before you 3. to give you a little bit of background about the tpc they're a wholely owned subsidiary of the pga golf course properties, incorporated and they're focused on the tournament caliber golf courses. as the general manager said, that's their interest in managing harding. a property over the last decade or so has become one of the premier public golf courses in the nation and they're very interested in obviously managing such a course. nationwide they manage 30 premium golf courses including a number of public premium golf courses and according to the pga estimates, affiliated with the network increases revenues at the course by 10% in addition to strengthening the

course brand and they are very committed to retaining affordable local golf courses. the management agreement you have before you is a nine-year, three month contract which sounds a little bit odd but that would make the agreement coterminus with the master tournament agreement between the pga and the city of san francisco. and that would expire in december 31, 2019. similar to the existing agreement with kemper, all course maintenance would continue to be performed by city staff. this was an important point for the department. we have 30 gardeners and laborers on site and we wanted to make sure they were retained and that work continue to be provided by city staff. the tpc would receive no annual management fee. this is in deference to the 192,000 dollars that kemper

receives and i think that this is one of the things that we learned over the intervening years, really the value of this course and that we could solicit a partner to manage this course at a lower rate than what we had onlyly been receiving. a lot of that as general manager ginsburg said was because of the nature of this course that it is indeed one of the best public courses nationwide that people want to attach their brand to this course and that's something that we could frankly take advantage of. the tpc would receive incentive fees equal to 25% of all net operating revenues above the budget amount set forth in the approved budget. basically it should,, the revenues exceed the tpc's budget by -- should the revenues exceed the tpc's budget for their portion of the course budget, they would receive 25% of that surplus

with the department receiving the additional 75%. and then additionally there would be a second incentive fee that would be equal to any -- to 25% of any positive net operating revenue for the entire golf course budget and again, that the department would receive the other 75%. of the budget. i think this is one of the most important lessons we learned. currently, the incentive fee is calculated as kemper receives 6% of all operating revenues above $6 million. and so that's not necessarily tied to their performance, every time we would increase the fees for example which we have done on a few occasions over the last seven years, they reaped the benefit of that. so we thought by calculating the performance -- the incentive fee in this manner it more closely tied their incentive fee with their performance. under the terms of the agreement the tpc will be

responsible for supervision of all golf activities, collecting green fees, registering players, scheduling tee times, daily and tournament reservations, providing golf instructions, operating the the pro shop, clubhouse restaurant and bar and partnering with the first tee program to provide activities and programming fauria at-risk youth. that's something very important to the department to have a significant presence in the southeast section of the city and we're very excited about that, that they're reaching out to children throughout our city to try to teach them not only the game of golf but the leadership and positive values that they are. and then again it's important to note that the city's responsibilities will remain exactly the same. the course maintenance will be continue to be performed by our 30 gardeners and we are maintaining the same maintenance standards that are currently -- the city is currently maintains the course by. just to give you a brief

financial comparison of the existing contract and the proposed tpc contract, in fiscal year 09-10 we paid $223,000 to kemper. under this contract had been in place in fiscal year 09-10 we actually would have paid no fee to kemper. in -- or to tpc would have paid no incentive fee. in 08-09 we paid $277,000 to kemper. if this contract were in place then, we would have paid no payment to tpc. then in 2007-2008, the total fee to kemper was $284,000. if the contract had been in place with tpc we would have paid $105,000 such that over the last three years where we paid $786,000 to kemper if this contract were in place we would have paid $105,000 to tpc for a total savings to the city and

rec-park of $681,000. projecting it forward the next three years, we would expect annual savings in 10-11 of $265 -- annual savings in 10-11 of $265,000 annual savings in 11-12 of $256,000 and annual savings in 12-13 of $232,000 for a total of $754,000 projected savings over the next three years versus if the existing contract were to continue to be in place versus implementing the tpc contract. the budget analysts i'm sure you'll hear from them in a second estimates over the nine-year contract this could save versus the existing contract over $2.3 million. to the department.