took me through this and we're very synched and thorough -- and work -- and were very succint and thorough. >> good morning. we will be presenting to you today some of the highlights from our performance audit of the alemany farmer's market and the real estate division in its capacity as operator of the market. our study focused on the effectiveness and efficiency of the alemany farmer's market and was conducted in accordance with the yellow book standards. the study took place during the summer and fall of this year and was initiated by a motion of the full board sponsored by supervisor maxwell. the draft of our report before revision on september 24, and the final report went to the

full board on october 13. the audit has four main focus areas, including management of the market, current market finances, the government structure of the market, and the market's compliance with applicable laws, regulations, and codes. in the absence of a well-defined purpose for mission statement, the alemany farmer's market has not logically come under the jurisdiction of a specific city agency. as a result, for your different departments have operated and managed the department over the last seven years. we found that the real estate division does not have a formal process for ensuring long-term needs are sufficiently manage and finance. we also found that the farmer's market needs a more effective governance structure, including revised rules and regulations and the appointment of an

advisory committee. the alameda -- alemany farmers market has not consistently complied with state and federal codes, and we found this is due to inadequate training and tools. before getting into the specifics of the findings, i overview of the farmer's market. the alemany farmers' market was established in 1943, primarily z>÷as a means of providing local farmers a way to sell excess produce the other was would have netted more federal regulations in world war ii. in 1947, the market move from dubos avenue and market street to its permanent home near the intersection of highway 101 and 280. of the approximate 20 certified farmers' markets in san francisco,z

one operated by the city. the market has a long and successful history and is popular with local residents. it is held every saturday, rain or shine. it is one of three markets operated by the real estate division. the division also operates the alameda -- the alemany flea mine plaza gallery on mondays, thursdays, and fridays. alemany farmers market as opposed to approximately 110 farmers, also known as the agricultural producers, and approximately 20 food and expenses were aboutvññ $108,000, and revenues came in at about $336,000. total expenses for both markets operated at 100 alemany/h

boulevard were about $306,000, and total revenues were about $700,000. the real estate division has a total of about $425,000 in net revenues for the two operations at this site, and this amount was transferred to the general fund. supervisor mar: can i just asked -- was that over several years? that is the average? >> it has actually increased over the last few years. ?@ç$425,000 wasgh just fiscal yr 2009-2010. in our review of market e market does not have a mission or purpose statement and5 lacked managerial consistency. the lack of it purpose for mission statement has prevented the market from continuing to broader city-wide folds such as eating and small business

development in a healthy weight. there hasjlx been a lack of stability in management. responsibility for operating the market has transferred to four departments, and the real estate division has had difficulty w ötime manager for most of the last three years. this lack of consistency has helped the market backáfrom fully addressing ongoing challenges such as developing an ongoing security plan, which is arguably needed, as there has beee property, and neighbors have complained4y about side shows n the property at night. second, there is a lack of parking and as a re@p)s of traffic congestion on the market during peak market hours. d'ythird, there is no facilities and maintenance plan, even though, as mentioned the infrastructure is old and deteriorated.

1min our review of market finances, we found that the ,q'd -- collected enough revenues to support enough revenues and contributed enough ÷to beat -- and he needed more than $400,000 each year to the city general fund, but therew]s inadequate planning to make sure there is sufficient investment in the market.  assessment of what is needed and what it will costvn as mentioned, the market facilities are old and in need of repair. >wñinstall routes need significt repairs, as illustrated by thew" five that a piece of one of them fell off during the market day last year. also, the market haspkñ poor signage.  no perimeter o secure the property at night. there is limited parking but potential tosr expand supply of parking two vacant public utilities com8vs lots across

the street. additionally, there is no formal plan for,a increasing revenues r the market. although the site is vacant much of the year, ñ the real estate division has not come up with additional uses for the property. at best, the divisioné them to use taximeters on the property for a portion of the year. in exchange, the agricultural commissioner waive the annual j$u$e market. at this time, my colleague will discusç remaining findings. >> good3y morning. oft governance, we found that the marketó needs a more effective governance structure. specifically, the existing marketá not in full compliance with state and city administrative

kicodes. the admission of farmers into the market, the admission of ep& products, and thesion of removal of tests for l[ market. the market also lacked a formal structure forsó farmer and venr participation in the governance of the market, a process for dealing grievances, specifically if the market managersgkñ for the real estate division, as well as a disciplinary process farmers and vendors who violate market rules. for example, there is process if a formal or vendor is take out of the market. additionally,yñ we found that fd vendors are paying varying rates ranging frombr $35 to $120 fore same small size. this differs fromyx)pá we found with the city of santa monica, which requires vendorsktpv@f

the stall fee. the city they want to@i consider fixed stall fees in÷wjt &e%ei bidding for fees, which might be more equitable. another difference been found monica and the city of san francisco is that is were chosen based on their rent proposal experience as wasn santa monica, food vendors were chosen based on what bus%x was located in the city or if locally grownsed and organic foods, providedy environmental sustainability as well as offering a variety of products in the farmer's market. t8supervisor maxwell: before yu go forward, wheny0wásq'tion the scale, the variance in the amount people pay, the you talk with the real estate division, and did

>> it was basedñ's proposal. each vendor propose what they thought they could pay. super+p maxwell: so that is what you meant when you said bidding. pay this amount flows " and that is8ñ÷ what they would pay. >> right, and they would not ñ vendor who had the same cell size was paying, and that benefits be paid two or three times as much. /.ssupervisor maxwell: i'm goino ask tell us what your reasoning was and what you think about this.ci thank you. fi, which focused on compliance with regulations coast, we found that

staff lgo+ejt)(rq't training tools to ensure that the farmer's market was being compliant with local regulations. we also found that the farmer's market has been inconsistent recordm@ñ of complying with stae and local laws. department of food and agriculture and the county commissioner have cited the farmer's market2 noncompliance on multiple occasions within the past three years. in8u addition, on a site visitn august, we found additional potential violations ofj÷÷ state and local laws. n include farmers selling products not under siege of it, gos not displaying certificates, farmers selling organic products as well as on six sampling and storage of food. by state law. finally, we also found that

several required department of public health permits, which is likely due to a,j prohibitive cost. for example, the food vendors pay more in permitsux fees for their one or two days per week at the farmer's market comparedi to a restaurant operating full time. in d legislative analyst's office would like to thank the management and staff ofznz the l estate division and the environmental health section of the department of public health for all their hel would like to open up for any questions. supervisor maxwell:]t÷ your last comment that the vendors pay more -- did you find out -- wasñ there any reason -- why do they pay more? >> cqñthe fees are supposed to e cost recoveryp[, and we found t that the infrastructure for farmers market, they have to

pay(o a special event permit fee per quarter, including an application fee as well as an inspection fee, and over the more than the one-time payment for restaurant, and we are not sure why. supervisor maxwell:@

wrong,y invite them up to the podium as well if we!qñ get into specific questions i cannot answer. i would like to start by thanking th his staff for the way in which they worked with my staff and conducted this aud!zs we certainly appreciate the communication, the opportunity toçmñ review and comment on the report, and by and large, as you will see at the back of6=y the report, we agreed with most of the recommendations and are already working on trying to we do take great pride in our jjr( with the alemany farmer's market, with the fact san francisco. we do very much see our mission san francisco with respect to healthy food and making sure that fresh produce is available to all))ñ people, all residentsf  had a

robust language out reach effort at that marketboz, while we have been a leader in the use of electronic benefit tokensyiñ, to hae access to fresh food, so we very much look forward to trying tow encapsulate that in the mission statement because we believe in q dedicated to that. one of the first things we think is most important toip address t of the recommendations is the formation of thecac%qñ, an adviy ommittee -- formation of a÷ cac, so-0?ááu)e that all our constituencies are represented in that. some of the outbreak has occurredkfñ already, but we have more to do to try to come up8kñ with aposal that people feel good about going forward.

once we do;o that, have confidee that our -- unless you have specific questions -- supervisor you are doing is fine,#÷ especially the executive summary. it= face, well-defined mission statement. &ji think you are going on the right track, so just continue. >>ñ thank you, and if i missed something not need to address, pleaseh- just jump in. we absolutely agree with what mñthe budget analyst said about the lack of stability here we are very aware that thisq] wasn operation that, despite its importance in our view to the t f are happy that we have been the stewards entrusted with it over the last t1q÷ years and look forward to growing with it and building of one in moving forward in the future,u we like that we have been able to provide some stability.

we acknowledgeat in the last three and a half years we have not accomplished everything we would like to, and we have had "$vááuqj with staff turnover, for example, and things like that. committed to providing training for the folks wev÷÷ have there. we feel like we have a good nucleus of a team, and we are hopinglç to see that stabilityn terms of staffing, and again, continue to be a home for the very important operation of the city. we agree again withm&ñ the advet code sections being updated. that is something we have been working on in partnership withmq dph. we have been exchang:+ drafts back and forth. we have a draft that we think is about ready to submit to the iwboard. there may be additional things you all will want result of this, but we do have the nucleus of a draft]o almost ready to submit to the board.

giñthe facilities maintenance ad revenue enhancement -- we have certainly submitted requests=÷ o the capital plan each year. we have been successful in we were able to do a major + were just horrible, when we got the market back under real estate three and a half ye ago. we were able to secure money from the capital plan. bathrooms, which turned out very well. 45the roof repair worksw is unr way right now. wekt have got folks out there right now doing more comprehensive roof repair there, so we have tried to(iñ see capil funds. we have to be just within the o general services agency for this request that move forward, and

once general÷oñ services agency submits all their requests, we have to compete with all general fund departments for the3rv(s@&i and limited fund salaries that are available. we are happy to be, moe aggressive, to be more comprehensive in putting together a wish list. ÷ -- i'm also cognizant of the factwm tht we need some help. we will keep that running wish lie@ we will make it more robust, and we will advocate as much as we oeñcan for it. some of those decisions are outside our hands, unfortunately. lnñsupervisor maxwell: have you done an assessment of theih farmer's market?

and a capital improvement assessment? have you done an assessment? kwa wish list is wishing, but these are small businesses. thisñ=q is something that bringn revenue to the city, so it cannot just be a wish list.úh it has to be means you need that will in france and improve the abilityñ" of the city to make revenue and to give this service togd its citizens, so it is not just about a wish list. so do you have that? ícñwith a lot of the things youe talking about, i want to have timeline, a frame. when are you thinking about having these things done so that we have'/ something to work on? what is your goal? and when you work with other departments9? in a way that wen >> certainly, supervisor. no, we have noty1 done a formal engagement with someone from dtw

to do that facilityei needs assessment. we have used our own knowledge from running othersóy facilitie, from managing other facilities to put together things lic3 the bathrooms being in horrible condition. we beautification, like putting murals in there. j2we just replaced the cited in front. signage in. we have8@y not commissioned a formal facilities assessment, and that is subject to budgetary restrictions. +xñsupervisor maxwell: i am concerned that you only fix the sinkhole only gets fixed when it becomes a problem. know they are coming, kind of need to do a thing before we get there. that is my concern.

front of things. if we&(wo say, why don't we allow you to keep so much money for a whilebj -- well, we need o know what that is. wywhether it is formal, whether you spend $150,000 from dpw>?y i am not saying that at all. i justxxñ hope that we can get n front of the obvious things. >> wesc addressed the simple problem as soon as possible. -- sinkhole problem as soon as possible. the roof, we got the funds in ]y÷the capital plan before it fl recently. we had permission2c carry those funds forward because we had difficulty getting the contract in place> to do the work. now we have read and park -- ret right now.

it is a challenging, it is not an issue of health only fixing 12ssomething once it breaks. this is the process we have to work with. i understandq7r what you are asg for, and we will work with that. with respect to ana÷ timeframe,e will flushes out further. again,.qñ we want to do this in partnership with the cac. at least for the next nine $+months, here is what we thougt we could tackle, to work on the recommendations fromigñ the budt analyst report. i would certainly welcome any input from all of you. 2dthe first thing -- because we form the cac. supervisor maxwell:® do you have any hard copies? >> yes, içmç do. gwork on that has already begun.

we project that could be in place- year. once a cac is put together, we statement. we have some staffmáx ideas, but again, we want the input of cac. we would6÷ formalize with theme short and long term agenda for addressing these iságé&e%ei the st. vacation is something that we have already been working on. @dthe budget analysts report cd issues with an ability to>b÷ secure the perimeter with traffict/ñ control, pedestrian safety, things like that. one of ther@x factor that contributes to that is there are actually on vacated public market site --dnñ unvacated cl@i

the marke[public streets runninh the market site. mbefore we do anything with a poor record, for example.th a setting aside thedz cost for that, we cannot do this for a street that has not been vacated legally. z dpt to get a traffic management plan. we did not have the1[ money to move forward with that. but we will get that rfp ready to go1a out. as part of vacating, we want to do something moreu'ñ comprehense to deal with traffic management. nee with puc to secure the use of twoz adjacent vacant propertis oní& putnam street.

they severed from -- suffer from similarqsu issues, illegal dump, and we would like to take control of them and% additional parking for the market, and in exchange,q maintain them and include them in the market site that we would manage. weñm would welcome your assiste with that. qtñwe already are working on an update of policies and procedures with the new market éqmanager. we have already reached out to uc-@uñdavis and uc-berkeley. there are some relevant classes refresh the training program for our staff. ÷p÷we have done best practicesq, research, if you will, through the california association ofç>ñ farmers' markets, through discussions with other markets. that.

we also had a productive relationship with the is here today. if you want to hear from him will be here to answeruó questions. this showsy these time periods, and into the future,tfu which is something tt you have to keep on doing. we plan to do the first y)zretraining before the end ofe calendar year. market, without any outstanding jj dph is slated] return this saturday to the farmers' market. they were out there on the 16th. í violations found. food sampling was one

ones. we have been trying to do education with ourx? vendors. we hope not to have any ofvoñ those violations when staff returned. did involve educating and provision of fresh water to the vendors. we have taken care of that. and again, capital plan. we are in the process right now and are getting ready to submit f?k next year's capital plan. we will be sure to submit a r2wñ set of requests through that process. turning to the beginning of9 calendar year, continue to engage the cac?d÷, hopefully see the approval of the street vacation: bid down and avoid the traffic management plan,

introduced the óuz the admin code that addresses not onlylbç the management of the market, but also the cac. complete the81ñ update of the rs and regulations for farmers and foodarñ vendors. we do have processes in place forw(ñ discipline and appeals. that is not to say they are not outdated, but that will be a part of ÷ our trading efforts, securing those capital plans. turning[ó to the second quartef 2011, continue working with the  out and bid out the perimetev+÷ fencing. then we can turn to what it will take to secure the site. 3 funded capital projects, what we are successful in obtaining mone