sometimes there are roadblocks in regards to nonviolent climcrimes, but thats disrespectful. talking about the police passing out those pamphlets. offices are trained, and while they show they are caring in terms of offering those services. i also want to speak about the ambassadors program. that is a win-win situation. it not only shows the people that we care about their safety and well-being, but also provides a good role model, in the sense that community members

can take care of their elders. i have had been in the nonprofit, mental health, substance abuse field for the past seven years. it may be my lack of research, but i have never heard some of the organizations mentioned today. i would like to see some of follow up on why there are such an array of services, but how about a collaboration? i have seen this booklet called the cdo booklet, but i have never heard about the department on status of women. thank you. >> any other members of the public debt would like to speak? seeing none, public comment is closed. i want to thank all the representatives of the various departments, members of the public, for participating in this ongoing conversation. my office will be convening city

stakeholders to talk about what we can do moving forward, and hopefully, move forward with administrative proposals and legislation to address this. if there are no other closing comments, i would like to see if there is any more business. >> no, mr. chairman. >> ok, at this time, the public safety committee meeting is adjourned.

>> 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. >> supervisor maxwell? >> could you give me an example in numbers on what the incentive would look live, the 25 -- the annual net operating cost?

an example in numbers what that would look like. >> yes. one second, supervisor. okay. so for -- essentially for the harding course, the harding course budget we have two pots of money. we have a pot of money that is the -- that is the entire course budget, that includes the course maintenance as well as -- the course maintenance performed by city workers and the pot of money that is expended by the tpc or currently kemper but hopefully in the future tpc on the city's behalf. so we have tied incentives to both of those pots of money. on the first case for the pot of money that's expended on the city's behalf by kemper if we were to budget -- i'm sorryry,

currently by kemper, under the proposed contract by tpc, if they -- that current budget for fiscal year 10-11 is $3.287 million. if that were to go to let's say -- if they were to bring in $ 3.5 million of revenue this year, they would then keep 25% of the delta between the budgeted operating expenses and budgeting revenue and the actual. so in that instance, that would be a difference of approximately $213,000, so we would keep just -- tpc would be given an incentive fee of just over $50,000 with the department receiving a 75% unexpected surprise of approximately $1245050,000. in each case they do receive -- $150,000. in each case, it's important to note we're still getting 75% of

that unexpected amount of money for the fiscal year. the same could be said for the entire budget. this year that course for 10-11 the total revenue is $8.1 million. if we were to bring in $8.5 million in revenue, we would split that with tpc and they would receive an incentive payment approximately $100,000 with the department receiving approximately $300,000 in unexpected good knew, so to speak. >> thank you. >> mr. kinsey, if you could continue. >> i was done. >> you're done. okay. let's hear it from mr. rose, the budget analyst. >> mr. chairman and members of the committee, you can see there was an r.f.p. process on page 2-3 of our report and pga tour or tpc had the highest

score, 476 points. and as a department -- the department has stated under this proposed agreement there would be no management fee, there would just be the incentive fees and they are described on page 2-4 of our report and on page 2-5 based on data provided by the department, we have extrapolated over the 9.25 years and from a financial standpoint this looks like an excellent agreement for the city in that the rfpd would save about $2.3 million over the 9.25 years, when you compare it to kemper. so under the kemper -- if you look on that table two, kemper would have been paid about $2.9

million. the tpc would be paid about $644,000, $645,000, that's a savings of $2.3 million, a 78.3% savings. actually we only have one question on this agreement, and that is on page 6 of our report should their is a new arbitration and termination provision. interestingly, this provision is not in the existing tournament -- master agreement with the rpd and what this agreement effectively states is that the city cannot reduce its maintenance expense at the golf course from one year to the next. and our take on that is we feel that this is unan unnecessary provision. we feel that if the city becomes more efficient, the city should benefit from that efficiency as the city has done in numerous cases. and we don't understand why there has to be a termination

provision in this agreement unlike the existing agreement with kemper or unlike the existing agreement with the master agreement. however, we conclude on the bottom of age 2-7 that because it would be an overall savings of approximately $2.3 million which we estimate, so from that standpoint we consider this to be a policy matter. we're saying from a fiscal standpoint just on the savings this agreement is excellent and we have just the one question about the termination provision. >> harvey? >> a couple questions for you. you made the point that the arbitration language is not in the tournament agreement. that said, the arbitration language is referring to maintenance standards. >> right. >> it's those maintenance standards that are in the tournament agreement. correct? >> supervisor, we totally concur that t