>> i have been a cable car grip for 21 years. i am a third generation. my grand farther and my dad

worked over in green division for 27. i guess you

>> good afternoon. welcome to the san francisco board of supervisors meeting for may 17. could you please call the roll. >> [roll call]

mr. president, all members are present. supervisor chiu: thank you. colleagues, can we have a motion to excuse supervisor campos. ladies and gentlemen, please join me in the pledge of allegiance. [unintelligible] into the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. colleagues, you should have copies of the april 12 meetings.

motion to accept? motion by supervisor mirkarimi, second by supervisor mar. are there any communications? >> i have no communications. >> if you could read the consent agenda. items one through 14 comprise the consent agenda. supervisor chiu: colleagues, would we like to sever any of these items? roll call on items one through 14. >> supervisor kim? aye. supervisor mar.? aye. supervisor mirkarimi? aye. supervisor carmen chu? there are 10 ayes.

supervisor chiu: next item. >> item relating to a conditional use authorization. supervisor chiu: colleagues, same call? motion is approved. >> administrative hearings on appeals for work contractors or subcontractors and certification for for for a or noncompliance with waivers to additionally conform to provisions for state law. supervisor chiu: colleagues? this ordinance is finally passed. >> item 17 establishing a three- year pilot program in the distribution of waste in private residences and businesses in san francisco. supervisor chiu: colleagues, i

want to thank you for support of this measure. as i did indicate, i had conversations with one of the stakeholders in this matter. at&t had proposed a number of measures to limit the number of yellow pages that they had. unfortunately, the model that they still wished to use was an opt in option. as we all know, under an opt out system if residents do not have a strong preference, it is natural due to human inner show that they take no action. this will result in the maintenance of the status quo, which is the continued mass distribution of yellow pages. from my perspective, i think any system that requires individuals to opt out would by default undermine the goals of this ordinance. in particular, the environmental impact would not be adequate given the scale of the problem. with that, colleagues, i would

like to ask for your final support on the final vote on this measure to move it forward. this ordinance is a balanced effort to solve our issues related to the mass distribution of yellow pages in san francisco. i would ask for your support. supervisor elsbernd ? supervisor elsbernd: one way or another, it does not change my vote on this. i hope everyone heard president chiu's remarks about opt in/opt out. i hope that we remember this when we have the conversation about community choice aggregation. supervisor chiu: if we could take a roll call vote on this

item. >> supervisor elsbernd. no. supervisor kim. aye. supervisor mercury me. aye. supervisor of a los -- avalos? aye. 9 ayes and one no. >supervisor chiu: this ordinance is finally passed. >> item 18 appropriating 100900 -- $1,925,000 of the general fund reserve and the public library preservation fund balance to various departments for litigation expenses. supervisor chiu: roll call vote.

>> [roll call vote] there are twn ayes. supervisor chiu: item 19. >> item 19, an amendment to a construction management service agreement for laguna honda, changing the amount from approximately $15 million to $16 million. supervisor chiu: this resolution is adopted. item 20? >> approval of modification #one of lease and use agreement at san francisco international airport.

supervisor chiu: this resolution is adopted. item 21. >> item 21 -- resolution declaring the intent of the city and county of san francisco to reimburse expenditures from proceeds of future bonded indebtedness, authorizing the director of the mayor's office of housing to submit an application and related documents to permit the issuance of residential mortgage revenue bonds in an aggregate principal amount not to exceed $8 million. supervisor chiu: this resolution is adopted. item 22. >> resolution approving the fy2011 emergency shelter grant program and authorizing the mayor to apply for and expand the emergency shelter grants program entitlement. supervisor chiu: this resolution is adopted. >> item 23, resolution approving

the fy2011-fy201012 community development brought -- block grants in approximately the amount of $19 million. supervisor chiu: this resolution is adopted. >> item 24 resolution approving the fy2011-fy2010 wealth does not partnership program on behalf of the city and county of san francisco to apply for, except, and expand the city's program entitlement. supervisor chiu: this resolution is adopted. next item. >> item 25 is on the budget and finance committee without recommendation. an ordinance in many of the tax regulation code by adding a new section to establish a payroll tax expense exclusion for the eligible persons payroll expense that is attributable to stop- based compensation. supervisor chiu: supervisor mirkarimi?

supervisor mirkarimi: thank you. colleagues, i want to thank so many of you on the board, particularly supervisor farrell and supervisor david chiu for helping has moved beyond the deliberations that occurred with the twitter deal and begins to address the panoply of the companies that were seeking relief because of the great concern, to concoct any kind of law that would help them stay in san francisco to help nurture their growth, and in return, benefit from that growth so that they would then help enhance our general fund through the payroll tax, while providing any kind of incentive that diminishes any impact whatsoever towards the

general fund. it is exactly the kind of legislation we are trying to advance your. that legislation is a stock option tax exemption. through the controller's report, we have seen that this would create very little impact. ain our ability to provide that incentive for a number of companies -- it would provide that for a discreet population that allows -- discrete population allows san francisco to track what would be capable of. we would be able to understand what the true impacts are, whether that has to implicate stock options for companies, that are free -- pre-ipo and already public. it is important that we understand what that is, because the treasurer's office,

the tax collector and the comptroller, have yet to be faced with this exchange. i think the deliberations that came out of the last few months on the questions of tax breaks and tax reform helped us arrive at this particular place that gives us this antre to determine what it would look like to overall our business tax structure. working with mayor lee and others, we are investigating what those options would look like. this is unmeasured step, one that is unanimously supported by the small business commission. and to the mayor's office, you can ask them, they have been supportive of this legislation. we believe it helps answer the interim call right now for companies who are watching very carefully -- vigilantly -- in

seen how we will negotiate with one company in particular that wants to stay in san francisco but needs relief. instead of just providing for payroll tax, it is exactly the right formula for us to proceed. that is what is before you today. i would really ask for your support. thank you. supervisor chiu: supervisor kim? supervisor kim: is my microphone on? first, i want to thank my colleagues for continuing an important discussion that already been started, but we really engaged in over the last four months with the midmarket, taxes and legislation. we talked about efficient and effective ways of taxing our businesses and investing in our city, but in ways that encourage job growth, and retains

companies that we need here in san francisco. it touched on many areas previous legislation talked about. we are the only county in the state of california to levy a payroll tax. it is done out of concern for companies that may not be in san francisco, and to prioritize the attention of companies that might be here and how that contributes to our tax base as written into the ordinance. also, and in the spirit of the ordinance, it is not hurting our general fund. so, ensuring that we are maintaining levels we have had in the past. i did have some concerns about this legislation because there were some differences. one, a lot of community advocates had asked when we passed the midmarket legislation