much better situation than they currently have. >> the human interest to me is how people could work out so many challenging differences to come to a design that we believe will give us a jewel. landmark of a place. >> i am sure it will have refining effect like embark did. and there were people about that and no one would think of that today. and when you look at growth and transformation of the embark, the same with doyle. it will be a cherished part of the city and a worthy addition to what is there. >> it will be a safe and beautiful entrance to a spectacular beautiful city. it will be the entry to golden gate that san francisco deserves.

>> 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. we are adjourned.

hello, i'm david, presiding judge of the superior court of san francisco. the court is now accepting applications for the civil grand jury. this investigative watchdog body is comprised of 19 public spirited citizens selected by my colleagues on the court. as a grand jury you will receive an extraordinary opportunity to investigation the -- investigate the workings of city government. you will meet city officials who run the city departments and agencies and be able to discuss current policies, issues that they're dealing with, and their plans for addressing these issues. the grand jury is charged with conducting independent,

confidential investigation of city departments of the grand jury's choice to ensure the agencies are operating effectively. so if you are interested in our local city government and would like to work with 18 other enthusiastic citizens, committed to improving its operation, i encourage you to consider applying for service on the civil grand jury. thank you for your time. for more information contact the grand jury office or visit the grand jury website. [gavel]

supervisor chu: i am supervisor chn -- chu and this is the budget and finance meeting. would you please update us? we have a short agenda. thank you very much. this item is a hearing on the ongoing budget update. we will get to item number two very shortly. so quickly, for the update on the ongoing budget, is there any new news specifically with regard to the federer budget or the state budget. >> the mayor's budget director. i will be brief.

we will have some more soon in the relatively near future. the governor may revise these on the 16th of may. they will look closing the remainder of the deficit and the plans for the november ballot or special election. additional cut proposals. my guess is that we will start hearing ideas trickle out about what we are going to see within the next week or so, but we will actually see it in mid may. probably the working assumption by the time we have just met the mayor's budget on june 1, there

will not be much certainty given that he is going to have to make a proposal on legislature over the summer, so we will have to make some assumptions about what we will assume and what we do not assume. other items that are coming up, we are in the process of working on the nine month report with the comptroller's office. that is the state of the revenues, and we will update them. for the last couple of months, we have been expecting to get a little bit of good news in the report.

lastly, we will have our five- year financial plan next week drafted, so at least we can begin discussing the things that this committee. supervisor chu: thank you. supervisor mirkarimi? supervisor mirkarimi: we're talking about a special election? >> i think it is not clear about what the plans will be.

the original date was to quality june special election, and that we're looking at between june and november, but i do not think we have something special on the table. they love an update of what their own revenue looks like at the state. kabbalah those factors are likely to play in with their decision making. -- all of those factors. for the proposed measures to pass on.

your guess is as good as mine. supervisor mirkarimi: opt -- others would be? >> for the across, the costs of just organizing the election, -- for the other costs. the last state action was taken and it was changed after the date of the election. supervisor chu: thank you,

supervisor mirkarimi. why do we not go to public comment on this section? " >> ♪ you are the budget sunshine of my life i love you, and i need a million more bring it back, woa, woa, woa, we would like the budget back again. bring it back again ♪ supervisor chu: any other public comment? public comment is closed.

camera continues with the objection? item number 2 below. >> for fiscal year 2007, two dozen 12. -- 2012. >> -- supervisor mar: this is a good way to get people familiar with the issues with the sheriff's department, so with that, they keep. >> but to be here from a supervisor -- nice to be here, supervisor. we can use your overhead.

if you look at the far right hand, what it shows in a long bolt column, our expenses have been $154 million. the budget submitted to the mayor so far is about $10 million less than what we intend to spend this year, so our budget proposal for the coming year is, in the words, as i said, about $10 million. we hope to spend about 10 dozen dollars -- $10,000 less this year. a different charge, you can essentially see where a money goes. a large section is our custody division in the county jails.

the second largest, court security. a lot goes into what we call city services, including the entryway to the building. field and support services are services that provide evictions and help the police department for new been -- for halloween or for other events, such as when we win the super bowl, and a small amount goes into our programs, mandated training.

and though there is a concern about the jail population. supervisor chu: there is a question. supervisor kim: what is port security then? >> the security includes the hospitals and the community health clinics. i misspoke. supervisor kim: and then programs? >> they are basically

rehabilitation programs, everything from drug treatment to buy its programs, women services, and the like. supervisor kim: thank you. >> answer is the largest part of our budget and staffing is dedicated to a county jails, we did provide a chart which shows some historical data from january of 2007. this was from october 2012. as you can see in the past, since a january of this year, our population has taken a dramatic downward turn.

one of these has been closed all year. one of our budget goals is to keep the facility closed as a way of saving money, but we also have vacancies in the of the jails because of the jail population. why is our geo population declining? i can really give you a good answer. the geo population, to a large degree, is based on police activity, and they do not always know what the police are up to, where their priorities are, where their priorities have changed. when chief gascon came in, it shot up by