supervisor chu: good morning. welcome to the budget and finance committee. i am joined by supervisor mirkarimi, supervisor kim, and supervisor chiu. our clerk is victor young. do we have announcements? >> yes, please turn off all cell phones. if you present any documents to the committee, please provide a copy to the clerk for inclusion to the file. items acted upon today will be on the board of supervisors agenda on july 12, 2011, unless otherwise stated. supervisor chu: thank you very much. ed sfgtv, we have michael and bill, thank you for your coverage. mr. clerk, would you call items one through 11, please? >> item number one, consolidated budget an annual appropriation ordinance appropriating all estimated receipts and estimated

expenditures for the city and county of san francisco for fiscal year ending june 30, 2012, and fiscal years ending -- june 30, 2012 and june 30, 2013 for the airport, port commission, and public utilities commission. item two. annual salary ordered its enumerated positions in the annual budget and appropriate ordinance for fiscal year ending june 30, 2012 and june 30, 2013 for the airport, port commission, and public utilities commission. item three, or in its appropriating for select departments, ending june 30, 2012 and june 30, 2013. item four, proposed annual salary ordinance for selected departments for fiscal years ending june 30, 2012 and june 30, 2013. item number five, ordinance amending the san francisco public works code by amending section 724.1 to modify monthly

fees for temporary street occupancy for construction and daily fees. item six, and ending the san francisco administrative code by adding section 2a.211-a and to add a fee of $37 for services provided by the the public administrator/public guardian representative fee program. item seven is no longer under the jurisdiction of the budget and finance committee. the san francisco unified school district. item number 8 is no longer under the it jurisdiction of the budget and finance committee. public education enrichment fund, children and families commission. item number 9, declaring the city's intention to appropriate available rainy day reserve funds to the san francisco unified school district to help with the loss of state funding for 2011-2012 school year. item 10 is no longer under the

jurisdiction of the budget and finance committee. contract certification of specified contacted-out services previously approved for various departments. item 11 resolution concurring with the controller's certification the services can be performed by private contractor for a lower cost than similar work performed by city and county employees for security services at the department of public health hospitals and clinics. >> thank you. just so we're clear, items number seven, eight, and 10 are no longer in the jurisdiction of the committee, because we have already acted upon them. just so you know. item number 7, 8, and 10, we already moved out of committee. so they will not be before this committee today. we started with a lot of departments and kind of walked through the presentations last week. many department came back to us on monday to talk about outstanding issues that they were not in agreement with with our budget analysts.

today represents the balance of departments that have yet to come to agreement. let's begin that process. health service system. >> good morning, committee members, and chairwoman chu. we will agree to the cuts that have been proposed. supervisor chu: ok. budget analyst? >> madam chair, for the record, it is $52,981 all general fund recommendations. >> we have that amount for the cuts being proposed that the health service system, mostly in staffing adjustments, some copy machines and specialized services cuts. the department is in agreement with that? >> efp president chiu: can we take that without objection?

ok -- supervisor chu: can we take that without objection? ok, thank you very much. the next department is the public library. >> good afternoon. i am the city librarian. we are in agreement with the analyst recommendations and very much appreciate the support and the help we received from javier and kate. we're pleased with the proposed budget. supervisor chu: thank you. >> madam chair, members of the committee, the total recommended cuts are $264,486. they're not general fund reductions. supervisor chu: thank you. and to the comptroller, because these are actually savings from the library baseline, these would remain within the library's budget department. correct? ok, thank you. given that we are in agreement, can we take these cuts without objection? that will be the case.

thank you very much. >> thank you. supervisor chu: our next department is the fire department. >> good morning. i am from the san francisco fire department. i just wanted to let you know that during the last week, we were able to work with the budget analyst and his staff. there reductions changed somewhat, and at this point, the total is $713,389. we are prepared to accept that. i should state that it is very lean for us. this assumes that we will have regular days in the year, 2011-

2012. if there was any major catastrophe, obviously a natural disaster or act of terrorism, this would not cover our budget. so it is something that has absolutely zero in there as padding. i remain concerned about it, but understanding the economic times, everyone has to make some concessions. we will accept the most recent revision from the budget analyst and accept the71 dollar sign his3,389. -- excepted the $713,389. the last item i wanted to review with you is near and dear to my heart, and it should be the year and dear to your hearts as well, and that is our neighborhood emergency response team program. it is a hallmark program that has been modeled by other communities. as you know, it came about after

the 1989 earthquake. what we saw in 1989 was so many members of the committee be stepping forward and wanting to assist. they did not have the training or education about what it would take for them to be able to assist us and not be in our way. as we embark upon this program early on in 1990, and it has been successful ever since. at a minimum, we train 2,000 people for year -- per year. we believe it is efficiently run. there's a policy recommendation today. mike position as the same as last week. we strongly disagree with this recommendation to reduce the operating budget by $259,519. the monies for the overtime we pay to our instructors. ther air members of the san francisco fire department -- they are members of the san francisco fire department. they're enthusiastic about this program. they have a desire to teach.

and as evidenced by the many letters that are written by members of the program, what makes the program is successful and has people coming back time and time again and has graduates referring to their neighbors and co-workers that this is the great program. it is a free program, and we feel this expenditure is of vital to the continued success and viability of the program. so i strongly encourage you to disagree with this policy recommendation. supervisor chu: thank you, chief. supervisor wiener. supervisor wiener: thank you. i will not repeat what she said, but i agree with it and i am prepared to make a motion on the fire department budget. supervisor chu: thank you. supervisor mirkarimi. supervisor mirkarimi: i will make the motion. it is to accept the agreed upon cuts but to reject the proposed cut to nert. >> second.

>supervisor chu: first, let's go to the report. >> as stated, the agreed upon recommended reductions are $713,389, and our policy recommendation is on page 19. supervisor chu: thank you. just a quick question for the mayor's budget office. a large part of the budget hangs in the balance in terms of where we are with the negotiated mou's. do you have an update on that? >> absolutely. gosset the mayor's budget director. as of yesterday, we have a tentative agreement, which is consistent with the mayor's budget submission. it still has to be ratified by the members of the police officers association, the firefighters' union. however, it is a very significant concession that we have agreed to. it tentatively. and it will keep our budget in balance.

there'll be a few administrative changes we will need to make to implement it, but is absolutely manageable. i just want to thank the police officers association, the firefighters' union for their agreement. they stepped up again to provide a significant help to the city to help us balance our budget. i think we just need to be cognizant of the importance of that and what it has done for us to be able to protect services in this budget. supervisor chu: thank you. supervisor wiener: that is really good news. if i could just ask you -- is it -- i know that the 3% raise is going forward, compensated by a corresponding 3% increase by the firefighters and police to their pensions. it is that 100% cost neutral,

given that the 3% salary increase also brings benefit costs? >> it is a great question, and we should have dhr in here to walk you through the specifics of the agreement. but the big picture is that it is a very close to cost neutral. as you point out, there is a slight difference, for exactly that reason, that we had initially anticipated that it would be a deferral of the wage. instead, it is a pension contribution pick up of an equivalent value, so there are some slight differences as to how it is implemented in terms of how we calculate the impact on overtime rates, premiums, that sort of thing. so there are some small differences, but they are administratively manageable. we will be working with the police and fire department to manage those changes.

it is essentially equivalent to what we had some guy in the budget and will not affect our ability to continue forward. it will not affect the bottom line for the budget for this committee. and we are in balance. the valley of the concession is essentially equivalent to the mayor's budget. >> thank you. i would like to echo what was said from the mayor's budget office and acknowledge the men and women of local 798 and the san francisco fire department and the men and women of the police officers association and to protect our streets each and every day. obviously, these are dangerous jobs. these were close contracts. once again, the members understood that something needed to be done, and they needed to be part of this solution. i know that in my close to eight years working as chief, every time speaking for local 798, they have been at the table wanting to be part of that

solution. i want to acknowledge them, as well as dhr and the mayor's office for the hard work they put in to get to this resolution or near resolution. supervisor chu: thank you. supervisor wiener, did you have further comments? supervisor wiener: wasn't there another step increase scheduled for january? wasn't it a two-part increase with another one coming in in january or am i wrong about that? >> there are slightly different schedules for the poa and the firefighters. do you know what the schedule is? >> my understanding is firefighters, and this is all tentative, but from what i have been told, firefighters would do a 4% increase on july 1. the 3% will be taken with the offset being 3% contribution into the pension at that time.

that 1% will roll to january 2012. poa would do a 2% increase in its january, and that will roll 90 days to april 1. >> and we will have a summary sheet. the dhr is working on it as we speak, outlining the specifics of the agreement. that will be in your hands very shortly. supervisor chu: thank you. i also want to express my gratitude for both the poa and local 798 for the work they have done so far. i know it has not yet been ratified by the membership, but getting to this tentative agreement is a big deal. so thank you to the leadership. supervisor mirkarimi: thank you. i think, probably on behalf of all of us, you speak for us in our gratitude for both local cahow 798 and the police -- for but local 798 and vdot poa.

on nert, i support the resolution to make sure the funding to be not cut. i think nert is a dynamic program, one that deserves the funding, adequate funding. i think the proposal to cut it would subvert its potential in its major contribution. a few years ago when i was on the budget committee, and as i have been every year that i have been on the board, there had been a chance to cut nert then, and it was in its youngest days back then. there was resistance and then. but over the last quarter years, there has been great demonstration of how effective nert is. san francisco depends on this infrastructure for psittacine brigade, for any man-made and natural disaster. it is -- san francisco depends on this infrastructure for citizen brigade. so, enthusiastically, if it had

not been mentioned, i would have motion did. i think we should restore the funding. supervisor chu: thank you. ok, supervisor i to -- chiu. supervisor chiu: i want to echo what my colleagues have said. it has been a tough month, and i appreciate all the work that you have done to make sure that we're all continuing to bear the burdens of this budget. i appreciate the fact that our budget analysts and your office have been able to come to an agreement on the budget. that is good and appropriate. i also want to echo my colleagues as far as support of the nert program. i often wished there are other ways for san francisco residence is to take part in how we keep and protect our city, whether it be working with our rec and park department, working with our

libraries, and working with the first responders. we have seen how valuable it is to make sure that our entire city is prepared for the next earthquake, for the next five years, for the next disasters. i think this program is incredibly important, and we need to nurture it and protected. again, happy to support that. supervisor chu: thank you. so we do have -- we have gone to the budget analyst report, in addition to the chief's comments. thank you to the mayor's budget office for providing the update with regard to the mou conversation. we have a motion to accept the budget analyst recommendation but cannot accept the policy recommendation. do we need a roll call on that item? ok, so we will take that motion without objection. >> thank you, supervisors. supervisor chu: the next debarment is the emergency management. -- the next department is the department of emergency management.

>> chairwoman, members of the budget and finance committee, i am the director of emergency management. i am happy to report that we have worked over the last week very closely with the budget analyst and have come to agreement on the cuts before you today. i would like to especially thank mr. rose and ian hart, our budget analyst, for all the work they have done, and certainly the mayor's office. of course, the comptroller -- controller's office through this entire process. supervisor chu: thank you. why don't we go to -- [no audio] please stand by

to cut the department is in agreement with closing out the in balance for projects and in agreement with the cuts, correct? >> yes, we are. supervisor chu: given that we are in agreement with the budget analyst recommendations from the department, can we take is that without objection? thank you. >> thank you very much. supervisor chu: our next. and it is the district attorney. -- our next department is the district attorney. >> good morning. we have worked out our differences with the budget analyst and are in full agreement, so we are ready to move forward. supervisor chu: ok. to the budget analyst. >> madam chair, members, the agreed upon recommended reductions, these are general

fund reductions, $295,101. as you know, we also recommended the one-time additional general fund revenues of $1,025,000, anticipated to be received by the district attorney's office. the total general fund savings for your consideration are $1,320,101. supervisor chu: thank you. the department is in agreement with the ongoing cuts for the department, in addition to the settlement dollars. >> yes, we are. supervisor chu: ok. colleagues, given that there is agreement, can we take those cuts without objection? ok, thank you. >> thank you very much. to go our next department is the adult probation department. -- supervisor chu: our next department is the adult probation department. >> good morning. i am the chief adult probation officer.

i am pleased to report that we have worked with mr. rose, and public to thank he and his staff, and i would also like to thank the mayor's budget staff. we have come to agreement on the proposed reduction. >> and that includes the project close out? >> yes, it does. supervisor chu: thank you. but an analyst. >> the agreed upon a general fund recommendations are 100 and thousand 592. there is also -- $110,592. total recommended reductions for general fund is a $111,800. supervisor chu: thank you. supervisor mirkarimi: i have a question. i know it is hard to anticipate, but you have been one of the primary representatives in

talking with the state on a prisoner realignment. in this budget that is before us, it is a little bit of an enigma as to what we can anticipate in terms of how to prepare for what might be coming down from the state, since the funding is supposed to escort the prisoners that come down. i am curious if any part of this budget is in anticipation of that infusion of inmate population? >> the current mayor's budget anticipates some funding for the sheriff's population for the anticipated increase. adult probations budget does not anticipate any. we do have cost estimates. we have a realignment plan that we have been crafting. fortunately, because we have been meeting so frequently and working with all the realignment partners, we will be prepared to come forward startin. starting july 5, we will release

a plan for public input on july 12. the funding specifics are blank for what we're going to put out publicly, because we're waiting to hear from the state. what i can tell you is that the revenue will not match what the anticipated expenditures are. i anticipate there could be upwards of a 50% in difference between the two figures. for adult probation, we anticipate a significant impact. we will have up to 700 realigned prisoners under our nauert post- custody release supervision. murder -- under our now post- custody police supervision. supervisor mirkarimi: ultimately, the adult probation is really the backstop in helping process and to manage these significant portion, if not everybody, that has spent realigned back to us. since the state now has a green light by the governor to sign the budget and they're still

waiting to see how funding is materialized based on tax extensions or whatever the funding mechanism is, are you anticipating a supplemental by the adult probation department come mid-year? >> yes, i anticipate a supplemental. the governor's budget has funded a realignment as it was originally intended. there is a slight difference in the vehicle license fee money. there's money for additional court security. there is separate set aside for public defender for representation. also, the district attorney's office. i have a recap relative to what is known right now and what is not known. there are several bills to be passed that will impact the nature in which we are managing the population. but bottom line is that we really think that the probation department will be the first apartment impacted. the reason being is, as of october 1 when this law becomes effective, cdcr will release prisoners that are non-serious,

non-a violent, but they have serious and violent prior convictions to our supervision. effective october 1, the court will begin changing their sentencing, but that will take a while for those court dates to come. so we know the estimated state's population is 412 immediately to us, and then building up to 700. supervisor mirkarimi: what would be your projected -- i know it is a guess right now, but what a supplemental would look like by adult probation? >> i anticipate we will be impacted to probably, when it is fully implemented, and it will only be a partial year, i would say probably $4 million to $5 million. supervisor mirkarimi: so it is literally 10% of your budget. ok. >> i am the mayor's budget director. i would agree with everything

that she said. our plan is, and we have been working with the probation department -- i think we all understand that the probation department is going to be one at the core parts of this realignment strategy, and they are really at the center of the changes that are going to happen, but operationally and financially. our goal is to, now that we actually had a state budget that is giving us some details, is to start getting the numbers ready, both for the probation department and for the other public safety departments and come to you with a plan and a funding proposal that would be part of the larger state budget discussion, where we make a determination about how we allocate out the state budget reserve and how we're going to implement some of the other proposals in the state budget. so we will fold that conversation together and bring that to the board probably within the next couple of

months. the timing is still a little bit uncertain, but this fall, to have bought the policy discussion and financial discussion about what the impacts are on operations. supervisor mirkarimi: now that some of the blanks are being filled in, because the state appears to be arriving at a budget resolution, there will be another meeting, and we have already hit -- already had two on this. we can begin to round out what we expect to win with the first infusion be? january or sooner? -- when will the first infusion be? >> likely, october 2. when they release on october 1, they released into our custody for probation supervision. the court commitments will take a little bit longer. one thing i would like to say is that as we're building this realignment plan, alternatives to sentencing will be key. so the judges are going to have a core component