federal level, there will be a student loan program where -- when you are in college. we have maximized the student loan program on a federal level by getting rid of, interestingly enough, the banks that were making $60 billion a year servicing those loans. we decided that we could do that as a federal government. so we are all looking at ways to tighten our belt. how many of you think your parents do not spend enough money on things for you? [laughter] how many of you think they are taking that money and stalking away for your college education? [laughter] you know they are. that is really what this is all about -- prioritizing what is important and putting the money away. as much as you want that new ipad 2, think about how much you will save by putting that money away, gaining some interest on it now, but using it for your

college education. most kids i talk to in college to they have hundreds of thousands of dollars in loans that they are saddled with that they end up having to pay over a long time into their adult lives. you will want to be there -- you do not want to be there. and you certainly do not want to get these credit cards that you might find at a giants game where they are going to give you a free tall, and you sign up only to find out that it is a 29% interest rate -- i love the giants, do not get me wrong. i go to as many games as i can, but we have got to be smart. whenever anyone is trying to offer you something to get you to do something relative to credit, think about it. ask them what the interest rate is. ask them how much it will cost you per month. you are going to learn a lot today, and i think it is going to be a great opportunity for you. let me just begin by telling you this -- people in this country

are saddled with debt. personal debt, much like the federal government is saddled with debt. for the longest time, we thought that we could basically put it on plastic. that has been the american way. unlike many european countries where they do not have a lot of credit, we have used the credit card in ways that we should not have. so that now, the credit card debt in this country is it hundred $66 billion. that is the equivalent -- $866 billion. that is the equivalent of every american -- man, woman, and child -- having credit card debt that equals almost $3,000. imagine $3,000 of debt that you are paying interest on every month. so you never can get out from under that. you are going to learn lots of things here today. i hope one of the most important

things you learn is that money does not grow on trees. you should always have money stocked away for emergencies and all those great new fan a gold video equipment and games and things that you want to have today, that you just have to have today -- wait a couple of days and see if you still have to have it. or that dress or those pair of shoes or that hers. more often than not, what happens to all of us is it looks great for about 20 seconds, and then we have lost interest in it. so enjoy the day, and i am delighted you are all here to gain greater experience of our financial literacy. [applause] >> we have been joined by our treasurer. i do want to give him the opportunity to say a few words. >> thank you, everyone. thank you, supervisors, mayor. it is great to be here as the

city's treasurer. our office has the responsibility for handling the city's money. that is a big job. that is a lot of money that we collect, that we spend, that we used to provide valuable services all across the city. i am excited to be your with you today because in our office, we want to do everything we can to make sure you have all the information and tools and resources to handle your money successfully. it is so important that every community, every household in our city is able to be successful, save for their future, and make themselves and their kids financially successful going forward. i'm excited to be your today. i'm going to be back in a few minutes, i understand, to introduce our keynote speaker. i am excited about that, and i will be telling you more about what we're doing in the treasurer's office to help families in san francisco and even an exciting new program helping public school system in san francisco have a chance to

save for college. thanks so much for being here. learn a lot. [applause] >> i will just keep my comments brief. i hope you do learn a lot. you're going to see a lot of financial institutions around the rim, talk to them, speak with people can talk to you about financial aid. a lot of departments might have summer job opportunities. talk to them. make sure you use all the resources today, learn about what you should be thinking about in the future. the covers woman was talking earlier about identity theft here i will tell you, i myself actually was a victim of identity theft. someone opened a cell phone account under my name just this past year, and i cannot tell you how much time it has taken for me to go and talk to credit bureaus and try to sort out the whole mess. i will just tell you, it is something that happens to a lot of people. you might not think it is you, but it is something that is good for you to start thinking about. i will not be saying anything further except to thank the people who have helped us today.

principle pain, thank you for the use of your wonderful facility -- about princ -- principal payne. in my office, tammy as the one who pulled all this

supervisor chiu: good afternoon, welcome to the sprn board of supervisors meeting. mr. clerk, would you call the role? >> avalos present, campos present, chiu present. chu, cohen present. elsbernd, farrell present. kim present. mar present. mirkarimi presently. wiener present. all members are present. supervisor chiu: thank you. ladies and gentlemen before we do the ledge of allegiance, i would like to take a moment to recognize the tragedy from last week. supervisor wiener will be offering an inmemory of the firefighters. if we could take a moment to

recognize them. all of san francisco mourns their loss. supervisor chiu: thank you very much. if you could all join me in the pledge of allegiance?

supervisor chiu: colleagues, you should have copies of the april 26th, 2011 board meeting mention. could i have a motion to approve? >> motioned by farrell, seconded by campos. minutes approved. >> supervisors we are in receipt after letter from the mayor dated june 1, 2011 indicating the mayor's notice to the board of supervisors of a transfer of function between departments in the executive branch. there are no other communications. >> and if you could please call the consent agenda. >> items 1 through 7 will be acted upon by a single roll call vote unless a member requests discussion of a matter. then it should be removed. >> colleagues, would anyone

like to receiver any of these items? >> mr. clerk, call the roll on items one through certified? >> campos aye, president chiu, eye, chu aye, cohen, aye, elsbernd, aye, farrell aye, kim absent. supervisor mar aye, mirkarimi aye, wiener aye. avalos aye. mr. president, we have 10 ayes. >> supervisor chiu: order andses adopted. let's skip over items 8-17 related to treasure island until that special order in our agenda. let's go to 18-21, the items regarding park merced. >> items 18-21 are without

recommendation from the land use committee. item 19 is an order nascar amending the planning code to include the park merced planning district. item 20 is an ordinance mend amending the planning code. item 21 is an ordinance amending the height map with respect to park merced. >> thank you. supervisor chiu: colleagues, i wanted to let you know that in the two weeks since the first vote on this project, i did sit down with several tenant leaders. as a result of the meetings, we negotiated, and the developer has agreed to a number of technical amendments as well as several additional tenant protections. first, that there not be any operation or maintenance pass-throughs for the

relocating tenants for the rest of the life of park merced. and then secondly we have added additional restrictions on the city's existing prohibition on converting the rental units in the tower units into condominiums. i fully appreciate the concerns raised by some tenant leaders. i before never support thd project if i did not feel comfortable that tenant rights have been protected. i say this as one of the few tenants on this board of supervisors, as someone who has been a staunch advocate for tenants before i was elect and with my vote on this board. if there anything else we could have put into this agreement to address the concerns, i would have supported that. that being said, after years of planning, meeting and discussion, i think it is time to move forward. this is the right decision for our tenants, for the west side and for the future of san francisco, and i ask that we

move these forward. thank you. >> the president has made a motion. is there a second for that motion? >> colleagues, can we take that without objection? supervisor chiu: that should be the case. any further discussion? if we could take a role call vote on items 18-21. >> on items 18-21 as amended. campos, no. chiu, aye, chu aye, cohen aye. elsbernd aye, farrell aye, kim, no, mar, no, mirkarimi, no. supervisor wiener, aye. avalos, no.

mr. president, we have six ayes and five nos. supervisor chiu: these ordinances are passed. item 22. actually let's call 22 and 23. >> items 23 and 23, ordinance reconvening the ordinance task force and amending the city's conflict of interest to include it. >> i want to remind members of the public that the application for restricting of the task force is online. it is going to be approaching quickly. people should start to submit in the next week or so. supervisor chiu: roll call vote on 22 and 23? >> campos, aye. chiu, aye. chu, aye. cohen, aye. elsbernd, aye. farrell, aye, kim, aye, mar,

aye, mirkarimi, aye, wiener, aye. avalos, aye. mr. president, we have 11 eyes. supervisor chiu: these ordinances are finally passed. items 24 and 25? >> 24 approving the issuance of water bonds and refunding bonds, and 25 is an ordinance to sell bonds to finance improvements to the water system and the treasure island project. >> can we say theeks items same call? supervisor chiu: without objection the resolution adopted. item 27. >> amending the administrative code to -- for the water. supervisor chiu: this ordinance is passed on the first reading.

can we take a role call vote on this item? >> i have a couple of questions i wanted to ask the m.t.a. >> through the chair, one of the things i am trying to understand is why the length of the lease is 10 years. my understanding is there is at

least a possibility that before the end of that term, you could end up moving out of this proposed location. i am trying to understand why it is that we have a 10-year term for a lease? >> my name is carter ohan, deputy director of the sfmta. two issues. one is the trance bay objection, which i will let him speak to more in depth. but that opportunity does not avail itself at the earliest until perhaps year eight of the lease. but more importantly from the ownership's perspective, because they are providing significant improvement to the building, they need an amount of time to amortize those

improvements. really the other thanship is the one driving the 10-year request for release. they have a .1.7 million investment, and they need a return. supervisor chiu: i understand why they want the lease as long as possible, but the question is what the need of the city. if well in fact not need the property for that amount of time, i am trying to understand the rationale for the term of the lease. i know that this has been amended, but i thought it was troubling that you had two additional 10-year extensions, which is a very unusual thing to see. i am trying to understand why 10 years? >> supervisor campos, the two additional 10-year extensions i believe we are not moving on, correct? correct. that was part of the initial

plan when we thought trance bay would be a viable option for an ultimate transportation management center. we are not moving in that direction. trance bay is not a viable option for us. supervisor campos: another question if i may through the chair. you are requesting an additional 39,000 square feet of new lease space, and yet you are only given up about 3,800. i am trying to understand if we have managed to function to this point without thatch space, what is the justification for the difference, through the chair? >> that is correct. the current facility houses all of our control center operations, and it is about 16,000 square feet. it is over capacity. with the fact that we are going to be adding footprint of control for center subway when it is implemented as well as

the functions created by the radio system, we need a greater amount of square footage. now the square footage that we are vacating -- offense, initially lennox, that is about 8,000 square feet, that has to remain intact interest we are fully operational and commissioned with the transportation management center. there will be a point as to whether we will give that space up. one of the decentralized areas we are giving up. three of those areas were used as part of our planning for business efficiency. we heard the budget committee and your body very loud and clear last week that we need to take a hard look at creating efficiency in processing to see if we can give up other space as well. we started looking at what other opportunities we have,

and we have come up with one viable option. 821 howard is a potential for consolidating in the near future. and we are not going to stop there. we are going to try to move as quickly as we can to get the amount of square footage that we are moving on for the facility, which is about 16,000 square feet. if we move on the 821 howard lease to consolidate and move those folks into the areas that we have currently, i think we are at about 69% of the square footage give-back. supervisor campos: if i may through the chair, what does that do if you -- if you actually move into the howard property, what does that do to the need of this particular lease? >> it is totally outside of this. it is an overall reduction for the agency. it is not a one for one for this space. the decentralized area being combined right now are actually

functions within, near or adjoining other muni service functions. to make our business processes more efficient, there are opportunities for those areas to grow as well. so hearing the message that we need to get a little more efficient with our business processes, we have looked universally across the agency to see if there is other square footage to give up. supervisor campos: from my perspective, i am all for making sure that you have the latest facilities in terms of the control center and making sure that we can provide the best service possible. i don't think that anyone questions that, which is one of the reasons why the traps takes authority has approved the fund s to be used in this way. the question is whether or not this is the best way of actually implementing that strategy, and i have to say that i don't know that it is.

you are talking about $16 million that we are talking about spending here over a 10-year period. that is a lot of money to invest, and we have to make sure we do our due diligence as much as possible before this kind of expenditure can be approved. for that reason, i will not be supporting this item tied. challenge you. supervisor chiu: supervisor wiener. supervisor wiener: i will be voting for this item today. i think it is important to acknowledge that this is not just an important or valuable expenditure, or an important project. this is, in my view, a mission critical project for muni. we have had many problems in our subway system in terms of some of the meltdowns we have experienced, an inability to

regulate the movement of the vehicles so that everything is properly spaced, problems getting the vehicles in and out of the subway. this improvement or revamping of the central control system is a huge step in terms of effectively managing our subway system. i know that ideally we will place this in the trance bay terminal. transbay terminal construction hasn't even started yet, and it is hard to say when that is going to happen. i believe that m.t.a. has made a prude and intelligent choice in terms of procuring space. i think a 10-year term is reasonable because even under the best of scenarios, we are not going to see it in six years. after that, m.t.a. would be

able to move the operation in. i have confidence that m.t.a. will release space if and when it is appropriate to release the space. fitch muni's budget wes, i don't see m.t.a. hoarding office space unnecessarily and paying unnecessary rent. it would make sense they hold it and release it as it becomes appropriate to do so. this is a very, very important project. i will be supporting it, and i hope that others will as well. supervisor chiu: supervisor kim? supervisor kim: thank you. i also sit on the budget committee and had an opportunity to hear this item. first of all i want to say i agree with supervisor wiener. i am very excited we are moving forward with finally putting together a transportation management center. riding the underground a lot. i know how much delays actually impact people on a weekly basis. this is an important next step

towards getting towards time efficiency and making sure that our trains and buses are running on time. with central subway coming, we have a great need to move this forward. i under that transbay is not going to be a reality for at least the first or six years. but to say we will never be able to put in transbay terminal is inaccurate. i hope we do it inthat conversation in the long-term. my concerns were these. it was not the center itself. i wasn't convinced by the process -- although it could have been we found the best space possible, but i wasn't convinced that we necessarily found the best space given the price of the building we will be doing the lease in. currently we spent from there are 3,2,000 a year up to $78

,000 a year on current real estate. this is going to had another $1.4 million annually towards what we spend on real estate. on howard street, i think that is a positive step forward. i am worried about the additional cost. i wonder if we could have negotiated a better deal. i am also curious as to why, and i brought this up as budget committee, when we looked at around 10 other sites, all of which were owned by the city, there were at least three hours that did not score that much lower than 1455 market that were a lot cheaper that i felt like we could have put our space in. i know there was an argument that maybe those spaces weren't the most appropriate. i brought this up with the data consolidation center that we approved earlier this year. i really think we need to put city programs in city property. we have a lot of surplus

property, a lot of under ute louis are liesed property that over the long-term would cost us less money and have a lower impact on the budget. if there is ale larger up front cost for the work we need to do, i think we absolutely have to invest and put things on city property in order for the long-term of our budget to be spending less for city operations. trying to be very consistent in terms of how i would like to see our centers move, i was happy that the data consultation center is looking in the long-term to be at the airport and is waiting for. that i wanted to see that with this as well. that is why i will always not be supporting this. if i had maybe additional time, i could be convinced otherwise, but at this time item not prepared to support this. supervisor chiu: supervisor chu? supervisor chu: thank you, president chiu. i wi