make educated guess and then adapt as the state's plan to become clearer during the next fiscal year. supervisor chu: thank you, madam chair. to the budget office. there has been a strategy proposed for the sheriff's department, such as changing out the jail health services, perhaps outsourcing on a contract for a different security service for some of the buildings. is the mayor's office contemplating as? so we can be prepared for this discussion? >> we are not contemplating a

geo health proposal at this point. -- a jail health proposal. it has been proposed by the health commission. a security proposal, so that is an option that is on the table. i know that the mayor is going to want to talk to all of you about that before june 1 and have that discussion. that is compared to the jailhouse proposal. you mentioned it was potentially more tolerable for a lot of reasons. number one, the way it has been proposed by the health department, this version of what they have sent to the commission, it would not involve any layoffs. the ip's at the clinics would be reassigned, and then it would

release some share of staffing to be returned to the jail to offset staffing needs due to realignment, so i think that is the primary kind of policy idea if, and i think the mayor will want to have discussions with you about that over the next couple of weeks. >> i wonder if there is a discussion. about how there might be some savings things they have taken and done before, like the transfer units, dollar for

dollar, this would still be a savings if those relationships were coordinated. -- supervisor mirkarimi: >> we were in the process of refreshing that list and looking at the opportunities. with the comptroller's office, i would be interested on the take as well. a couple of the issues around these proposals, and we have looked at the pump at pass, and we have spent some significant time to this and made adjustments back-and-forth over time about whether the sheriff or the police department is staffed in various functions. the factors that come into play are who can do it more cheaply and also staffing availability. we're going to have a crunch of availability of staff either a

the sheriff's department or the police department, to perform their existing functions, which means we would have to hire new people to perform those functions, and there is the example of station transfers, and we had to hire new sheriffs to perform those functions. there is not really a cost savings, so there is a lot of push and pull on the math on whether or not those are actual budget savers, even in cases where they may be more cost- effective in a perfect world, so that is a great question, and there is a lot of analysis that has to go into figuring it out. supervisor mirkarimi: if i can swing this back, and i want to talk to mr. hennessy, retirement and academy classes, we have not had that discussion

with the sheriff about the forecast for prospect on the issue of retirement and bringing in new deputy sheriffs. maybe we should get something for that, as well? >> supervisor, we had approximately 20 people leave the department this past year, and we do not really anticipate a higher rate of people leaving next year, in the next fiscal year, so our attrition rate seems to me on a relatively steady bases. we may have to hire additional staff based on the alignment, in the jail population. with our current staff, we have been able to redistribute staff and drive down our work time rates considerably, and at one

point, 1.5 years ago, if we had to open up the small jail in san bruno on a very rapid basis, we were able to do it entirely on overtime, and if we were keeping the facility open on a longer- term basis, which the alignment proposal seemed to suggest we will be, we will have to start hiring additional japanese shares, because it would be cheaper to have full-time employees than be running the place on overtime. supervisor mirkarimi: is there a theory that with the 20 you are looking to lose, you would be hiring and 20? >> it kind of depends what happens with hospital security. if hospital security is removed from my department, then the deputies who are currently assigned there can come back in and replace the 20 people who are leaving. if the debate over hospital

security carries on for another fiscal year, then i would have to hire people to open up the small jail as our population rises. that is one permutation. supervisor mirkarimi: mr. wagoner, i am curious. if the sheriff is able to go on and bring new deputy sheriffs, and there is a range, a modification on the security potentially, could that not then begin the discussion of whatever additional staffing, how we might be able to complement the police department, sort of actions, tasks, and activities,

because the question of a dollar is a dollar, it is still a savings. without detracting from their current duties that they are assigned to do. >> sure. the issue would be that it may be cheaper to perform a service with sheriff's deputies than police officers. however, unless we have an excess of sheriff's deputies, which it looks likely that we will not, we hire sheriff's deputies to perform a service to do something currently done by police officers. we are paying the salaries of the police ulcers and those going to work patrol functions or whatever they are going to do. it may be more cost-effective for that particular service to provide it with sheriff's deputies, with budgetary costs

if we need to hire additional staff and have a greater number of total staff in the city in order to transfer a function to the sheriff's department. supervisor mirkarimi that makes sense. that is clear as day. this is what is before us, too. through a program or through the process of bringing on academies or lateral hires, we are still doing it through that pathway, as well. if those were positioned that could be assigned in other locations, a sort of pressing or priority position. that is all i was looking for. >> i think that is a good point, and the fact that there is flexibility on both sides of the equation, i did there is some ability to look at what is most cost-effective, so to the extent

that we have that flexibility, it is absolutely a good point. supervisor mirkarimi thank you, thank you. supervisor chu: thank you. why do we not open this up to public comment? other members of the public who would like to comment on this item number two? >> ♪ the sheriff's department has been budgeted, all around the town, when there is budget money love they have been made blue, and i thought you knew when will the budget for the sheriff's department be loved? ♪ supervisor chu: is there any

other public comment on this? seeing none, public comment is closed. supervisor wiener: i want to thank you for your years of service. 31? >> it will be 32. supervisor wiener: in a city where there is often a lot of drama, the sheriff's department, a political drama, i just wanted to thank you. >> thank you, supervisor. i appreciate it. supervisor chu: thank you, supervisor wiener. i am sorry. i do have one more question for you. i see money in a great program will could you just explain what this is for it?

>> yes, that is the funding we use for alternative programs inside the jail and outside of the jail. under management. -- anger management. supervisor chu: thank you, supervisor wiener, and we will have one more budget meeting before we are done. if we have no other questions from the committee at this point in time, can we get to this item to the call of the chair? ok, thank you very much. do we have any other items before us? >> that completes the agenda. supervisor chu: thank you.

we are adjourned. >> hello. welcome to the regular meeting of the budget and finance subcommittee meeting. my name is karimen chu. joined by ross mirkairmi and supervisor jane kim. our clerk is victor young. do we have announcements today? >> if you wish to speak during public comment, submit the card and present them to myself.

please provide a copy to the clerk. items not appearing today will appear on the board of supervisors agenda unless otherwise stated. supervisor chu: thank you very much. we will lose quorum if we don't take a quick recess. the mayor will be announcing the police chief and i believe a number of folks will be on hand for that announcement. so what i'd like to do before i call our agenda items is to take a brief recess. we'll say that we will return roughly around 10:20 or so. that probably will be enough time, i imagine. , before we are -- we return. so if we can we'll just take a brief recess, roughly about 10, 20 minutes and we'll be back. thank you. supervisor chu: i thank everybody for their patience as we watch the new chief get

sworn in. we want to say congratulations to chief suhr. if we can call item number one. >> resolution approving the execution of lease number 11-0049 with cargo warehouse and support office space in building 648 at san francisco international airport. supervisor chu: thank you very much. i believe we have kathy white from the airport. >> good morning, chair chu, vice chair mirk reama. we are trying -- mirkarimi. the new lease would carry a term of five years from may 5, 2011, to may 5 -- may 4, 2016. the lease is for a total scare footage of 2,608 of cargo space, ramp space at the

airport. this is the exact same space that the airline currently has with us. there has been some reconfiguration from cargo space to office space but the scare footage remains the same. under the proposed lease, the asi anna airlines would pay a rental rate of $it 2 per square foot for a total of $800,000. as the budget analyst report it is a rent reduction of approximately $94,000 a year. we saw a similar rent reduction when the committee approved our cargo lease with china airlines. we'll see this as things come before you where at the end of a few 10-year leases, particularly with some of our cargo tenants and the cargo market is substantially different. much smaller than it was a year ago. so the new lower rental rate is

the result of a negotiation between airport staff and the airlines. and we feel that it is a fair market rate. supervisor chu: ok. let's go to the budget analyst report. >> madam chair, members of the committee, debra newman. as she indicated and as shown in our report on page 4, table 2, the current lease with asi anna airlines is at a rate -- asiana airlines it is a result the $943,146 per year under the new lease. although the square footage would remain the same, the rental rate per square foot will go down to $21.40 so there will be a total of annual estimated revenue of $849,000 or a reduction of $94,037 per

year. however, because of the airport's residual rate setting methodology that there will not result in any budgetary shortfall overall for the airport because the cost will be reallocated and rerecommend approval of the proposed lease. supervisor chu: why don't we open this up for public comment? are there any members of the comment who would like to speak on item number one? seeing none, public comment is closed. can we move this item forward with recommendation? we'll do that without objection. thank you very much. item number 2, please. >> item number two, ordinance appropriating $6,995,000 of loan funding from the california department of boating and waterways to the renovation of west harbor of san francisco, arena yacht

harbor for fiscal year 2010-2011. supervisor chu: thank you. i believe we have katie from the recreation department. >> thank you, commissioners. i'm here this morning to ask for your approval of a sublamental appropriation in the amount of $6.9 million which is the final installment of a $23.5 million loan that the city is receiving from the california department of ++ --

supervisor chu: let's go to the member. >> it would appropriate $6,995 loan from the california department of boating and waterways to the recreational and park departments. this would complete the $23,495,000 loan in addition at a 4.5% interest rate. interest is calculated at $222,583 or a cost to rec and park of $46 million. it is estimated to make increasing amounts of loan payments, increasing up to $1.4

million annually over a total of 35 years. as katie indicated, the rec-park department would repay the employee posed state loan from the west harbor operations from the marina yacht harbor fund. and given the state requirements, the proposed cash flow analysis that is shown on page 9 of our report does indicate that the recognize park department would be able to complete the loan as indicated and note that the board of supervisors previously approved a 37% rate increase in the rental rate in the west harbor which are anticipated to begin in fiscal year 2012-2013 when the project would be completed and with the rent increases, the birth rental rate increases, they are projected to be sufficient funds to meet the state's debt obligation under the proposed

loan agreement and we therefore recommend approval of the proposed supplemental. supervisor chu: thank you very much. why don't we go to public comment on this item? are there any members of the public who wish to comment on item number 2? seeing none, public comment is closed. ok, we have a motion to send the item forward with recommendation and also a second and we'll do that without objection. thank you very much. item number three, please. >> item number three, resolution authorizing the director of the mayor's office of housing to accept and expand an economic development initiative special projects grant from u.s. department of housing and urban development in the total amount of $750,000 to assist with the redevelopment of the sunydale housing site into a mixed housing community. supervisor chu: thank you very much. we have amy from the mayor's office for this item. >> thank you, chairman chu. supervisor mirkirimi and

supervisor kim. i am director of the mayor's office of housing and i would like to ask for your approval today of an extend of $750,000 of an economic development initiative grant from the department of housing and urban development. this grant would be for the sunydale revitalization project which is one of the five active hope f.s. sites that exists today. hope f.s. is the program where the city is revitalizing one of the most distressed housing sites into mixed income communities. sunydale had been working with the mayor's office of housing for the last three years to preprayer pour the revitalization process. they are at the point which they have completed the master planning process and are working towards completing their entitlements by summer 2012. sunydale currently is a 785 unit public housing development which once revitalized is

planning to be a 1,700 unit project which will actually have 25 square feet of life center, a 15,000 square foot neighborhood serving retail component and a 15,000 square foot community serving retail which will serve for job training and resident services for existing residents on the site. we ask for approval because the city financing is very important to the overall project as it is a very large and ambitious effort to revitalize this project. especially during these very difficult times. thank you. supervisor chu: thank you very much for your presentation. this item does not have a budget analyst report with it so why don't we go directly to public comments. are there any members of the public who wish to speak on item number 3? seeing none, public comment is closed. supervisor mirkarimi: motion to accept with recommendation. supervisor chu: ok, we have a motion to accept this item with recommendation. we will do that without

objection. thank you. do we have any other items before us? >> that completes the subcommittee agenda. supervisor chu: thank you. supervisor chu: thank you. we are adjourned.

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