. they can add value to these wonderful artists and -- artisan-designed ceramics. >> he is already selling for us. " those orders come through. >> one of the other attractiveness is that we are here not hiding place where there is a work force, and we want to be able to hire people from the neighborhood and we want people how of living and working in that same neighborhood, to be able to not get stuck in golden gate bridge traffic. have the option to ride their bicycles, walk to work, all the bbc is working to make that an

offer its citizens -- of the peace the city is working to offer its citizens. >> [inaudible] >> it is going to be a mix. the plan still in the works. we will need more people with everything we're doing here. there will be a mix of people who will want to stay there, and there will be new jobs opening as we expand other operations in sausalito and here at the same time. it will be a mix of people. we do not be exact number right now. we will see how we view after one year or kabila -- or two or five ro ten years. >> we are linked with the city. we have a program we have launched an partnership with the city that allows us to work collaboratively with the city's

workforce development network of organizations to help local manufacturers higher, so will be able to work with that program to access workers through good will and trees and are highly qualified people out in place that people and also help exorcise the city's enterprise zone tax incentive program which will still have available that is an act for this neighborhood. as are some examples of how this very collaborative environments we have set out in partnership with the city is really going to benefit an organization. >> there are a lot of incentives because there's a lot of access to these kinds of programs that are not always found in urban areas that are not san francisco. we're very excited about that opportunity.

a lot of the questions i have been asked when i imagine we are opening another facility is why we're doing that because it is so expensive. when we run the numbers, it is actually cheaper to give incentives the because we have all these incentives. the hiring programs, the resources for the employees that we will be able to hire, and there will be good quality employees that will stick with us year after year after year. webinar distinctive for any business that leads into success is hiring the right people -- one of the or any business that leads into success is hiring the right people write off the bat. there's a lot of it manages to it. >> can you tell us what kind of incentives you have got >> >> we have not gotten any actual incidents, but the opportunities are there.

were company like ours that believes in paying a fair wage, paying health benefits and retirement benefits, we start with that. the city does have certain requirements for employees and the way they provide for employees. we already do that. we already did that because it is the right thing to do anyway, so it is not really a difference for us to move to san francisco. we are ready to go above and beyond what those levels are. >> as we have discovered in working with manufacturers over the last couple of years, one of the bandages we have because we have this partnership focused on manufacturing -- one of the advantages we have, a city would

try to reclaim its own manufacturing sector, and it seems almost frivolous to some people when we started. i do not think that is the perception any more. part of what we are able to be a as an organization is really act as a guide to any of our manufacturers existing or companies that might be thinking of coming into the city to help them navigate and best it ended of the existing incentive programs. phyllis oakley, the city is trying to do a better job of taking advantage out of the things we already have deployed into of companies. if you use the example of the enterprise zone, on average, i would say 70% of our manufacturers when we first meet them who are already here do not realize they are in the enterprise out or have not figured out how to file for their own tax credits. this is a perfect example where

what we do is be very proactively make it very clear not only what these opportunities our -- are. we have an egyptian deprograms in place that many of these companies can take it canada but it might not have occurred to him to do that. we have programs at the state and federal level are out on the job training credits for particular employees. we have equipment depreciation programs. as i talk, your head starts to spin. my best you. part of what tried to do is make it much more straightforward to help companies navigate. sfmade now has a house capacity to help companies piled their

enterprise tax credit. we now are as a city are trying to see it as a bill it banished to having this concerted public private initiative focused on the sector because it allows us to abrogate our resources -- aggregate our resources and a much more collaborative way. >> thank you, everybody, for being here.

supervisor chu: good morning. welcome to the regular meeting of the budget and finance committee. the agenda was noticed with five members of the committee, but because we passed the budget yesterday, the true committee for the budget finance committee is now the three-person committee comprised of myself, supervisors kim and mirkarimi.

mr. young, do we have any announcements? >> please turn off all cellphone. please submit your speaker cards to myself if you wish to speak. if you submit items to the committee, please provide them for the file. supervisor chu: thank you very much. please call item no. 1. >> item #one. ordinance amending the san francisco administrative code sections 12r.5, 12r.7, 12r.16, 12r.17, 12r.18, and 12r.25 to -- enhance the office of labor standards enforcement's enforcement of the city's minimum wage ordinance by clarifying agency access to places of employment -- require a policy to resolve complaints or initiate enforcement actions within one year -- raise the penalty for employer

retaliation -- impose a penalty for failure to post minimum wage rates -- provide for posting notice to employees upon commencement of an investigation and public posting of employer non-compliance, and impose penalties for violation of these posting requirements -- impose a penalty for failure to provide employer's name, address, and telephone number to employees -- allow for back wages held in escrow for an employee for three years or more to be used to enforce the minimum wage ordinance or other laws enforced by the office of labor standards enforcement if the office of labor standards enforcement cannot locate the employee -- provide authority to immediately issue an administrative citation upon sufficient evidence of certain violations -- require industry- focused outreach materials for employees. supervisor chu: thank you very much. i believe we have a representative from supervisor campos' office. i do not see them in the room at

the moment. let's perhaps pass through this item first. back to the city attorney, last week we heard a testimony and a presentation that we submitted an amendment to. do we need to submit public comment for this item? or have we dispense with that? >> the purpose of the item was to take this for amendment. supervisor chu: let's go forward first with public comment on this item. are there any members of the public that wish to speak on item number one? >> good morning. we wanted to thank the supervisors for hearing the public comments last week on this ordinance. numbers were briefed on the changes to the ordinance.

if there are any questions about ordinance, we would be happy to answer. >> thank you very much. are there any members of the public that wish to speak on item number one? seeing no one, public comment disclosed. colleagues, given that we do not have representatives from the supervisor's office, but that we did hear testimony and presentation last week, are there any questions? do we have a motion on this item? supervisor kim: motion to move with positive recommendation. supervisor chu: without objection. item number two, please. >> item #two.

resolution authorizing the execution and performance of an option to purchase the approximately 33,000 square foot industrial building and land at 1 newhall street for $5,304,500 contained in a lease dated for reference december 20, 2006, by and between 1 newhall, llc, as landlord, and the city and county of san francisco as tenant; adopting findings unde. supervisor chu: thank you very much. we have dr. amy heart from the migrant center. >> good morning. my name is john updike, acting director of real estate. today we see the recommendation to acquire this property that jennings and newhall in the india basin subdivision. i have a general map in the overhead. the property is on a street that leads to the postal service facility and is somewhat disconnected from the basin as a result. it does a for the city to secure an excellent match for the

office of the chief medical examiner, subject to design, cheaper review, and authorization of funding over the left -- the next two to 2.5 years. originally leased in 2006, housing the laundry facility, dislocated from a hospital project. primarily as a result of an arbitration between union representative laundry workers and the city. set aside, subsequently, the laundry is now an outsourced function that never moved into this location. however, the property jurisdiction has been used as a warehouse for off site storage during construction. it served a very valuable purpose, housing everything from art works to kitchen appliances.

in the past year the property has not been put to any particular use, although the city did to engage in an aggressive attempt to sub-lease the property. one final alternative uses conformance. the 10-year lease has 35 your options for renewal with options for purchase. the current term expands the january 1, 2017. recognizing the serious deficiencies in the current space at the hall of justice outlined in our report and in the budget analysts report, a robust study of the space needs began a few years ago. pressuring to prepare for the additional inclusion by a measure of 2010. while it was not included in the final package, the subsequent review of the space needs leads

us to today's actions. critical spaces have not risen, nor has pressure from the credit ratings agency, the national association of credit ratings managers. there were several other properties examined, but none matched this properties ability at a fair market value in the location for appropriate sizing and the property entitlements that go with that this property. some of the details of the purchase agreement before you, it is for a 33,000 square foot building on a lot over the entrance. there are further is a in the particulars of the lot location. $4,500 with a close of escrow on september 1, 2001. this was supposed to be an all

cash transaction has appeared yesterday in the budget under the general services agency. so, in negotiating this transaction we extended the closing date as long as we could, beyond the range allowed for, technically, the purchase option and a price reduction for the amount that should be followed for an additional savings of $323,044. it compared this purchase to the leasing of property 331 for the same purpose, considering the potential costs of operation, finding the purchase approach with a 11% savings over that time. let me be clear, this item solely seeks authority to acquire. it does not commit the city to place ocme in to the property for super-review or funding

source secure all. although the measure is subject to that design and other findings, should the city choose not to place in this facility, the purchase provides us with a greater our right of options that we have today. holding a lease that does not expire until 2017 and no immediate user. through ownership we create opportunities for direct leasing or direct use by city entities. failing those options, we can also dispose of this asset, given the competitive purchase price and the market's recovery since the appraisal that was almost 1.5 years old, we should be financially whole on the sale, retaining future option should be used not come to pass. the current circumstance of us

having a long-term lease and a vacant asset is a rare. i know it has caused some concern. we have revealed records to see how where this was. we have seen no similar incidents of these improvements that are vacant. that is not the driver of this recommendation. it meets the needs of ocme at the right time to potentially package this for the future. that is why we are here today. i am joined by dr. amy heart, our chief medical examiner. we are happy to answer any questions you might have. supervisor chu: thank you. doctor, is there anything you would add to this presentation?

>> thank you for asking for my comments regarding this. we have been working with the capital planning committee and the people in the real-estate division for many years, trying to find an adequate location. at this time i think that a location that meets all of the needs of the medical examiner's office and fits in with the city's plan has been found. i am in agreement with mr. updike regarding this presentation. i see the purchase of this facility as a good faith from the medical examiner's office in the future, meeting needs for accreditation. supervisor chu: i was curious. does accreditation, up at the end of 2012? >> correct. supervisor kim: if we move

forward with this proposal, you will not be able to move in until 2016. what are your thoughts on the impact on your accreditation? does this impact your ability to get accreditation? >> i see it as a positive impact. i say that because the people that come to do these sections are also people who are in the medical examiner's field and have to deal with issues regarding capital needs for their facilities. so, they have an understanding that the process will take time. it is something we have been working on at the medical examiner's office for over 10 years. i believe that the purchase in the building will show a good- faith effort on the part of this city to move in a good-faith

direction, usually sufficient for an inspector to see that we are actively working to remedy the deficiencies they have identified. supervisor kim: thank you. supervisor chu: mr. rose? >> madam share, on page 6 of the report would point out that the total cost to purchase the facility, as shown in table one on page 6 of the report, that amount does not include the total cost for needed capital improvements. as shown in the second table on page 6, the total capital improvements are currently estimated to range between 25,000 -- [unintelligible] on page 7 of the report, as shown on table 3, the total

estimated cost of purchasing an occupying the facility, including acquisition costs, capital improvements, and other costs, would range between $40,000,000.50 $0.2 million. -- $40 million why and $50.2 million. we have compared leasing this facility with purchasing this facility. it would cost about 5,325,000 more, or about 99.1% more to lease, rather than purchasing. of course, capital purchasing would need to be constructive whether it was a lease for a purchase if this building could use the location for the medical examiner.

currently we are considering approval of this resolution for the supervisor and i will be happy to respond to any questions. supervisor chu: let's open this up for public comment. do any members of the public wish to speak on item number two? seeing no one, public comment is closed. supervisor? supervisor mirkarimi: thank you. dr. carr. perhaps you covered this earlier. as the accreditation of the examiner's office ever been a concern bell or in jeopardy? >> it has been continuous, to my understanding, for over 20 years. it is only reason seat -- recently, during the last accreditation, that we had the issue regarding the facility and were told that if we did not

seek a suitable replacement, we would lose accreditation. supervisor mirkarimi: how does a warning like that come to be? does that, in a visit by the state or national authorities? is it a three month warning? of one year morning? describe what it looks like. >> the actual inspection is a plan to inspection by the national association of medical examiner inspector. it is a rather extensive process. the physical plant is only one part of it. at the end of the inspection they write a written report, which is provided to the jurisdiction, a summary of their findings. the main deficiency that was found for our office in the last inspection was the physical plant. at that time we were still able

to secure full accreditation, which lasted for five years. it will be ending in 2012. i am scheduled to undergo another inspection at that time. does that answer your question? >> in part. we held a hearing in public safety about two years ago, when the implosion of the drug crime lab happened. we had even stay theory that perhaps these laboratories should be independent and put under the city administrator, much like the medical examiner. testimony back then, in our trying to understand the fit, the question of fit, of putting the crime lab together with the medical examiner, at no time did that testimony bring questions of accreditation problems with

the medical examiner. i am curious, with that have shifted in the last two years of them love or should we now believe that there is a problem with accreditation? -- two years of them up or should we believe that there is a problem with -- two years? or should we believe that there is no problem with accreditation? >> we were told that we need to put together a plan for the improvement corp. -- of the physical space we were in in order to maintain accreditation. supervisor mirkarimi: i must have missed that, two years ago. it was not mentioned at the end of 2012 that there may be some question over accreditation being jeopardized if there was not a physical move from the current facility. that is what is being proposed today, correct?

>> yes. supervisor mirkarimi: on the deficiencies side, can you describe, is it a question of being able to accommodate the need for, what is it, an additional body count that is being examined? or is it the forensic facilities? what is it, exactly, that is deficient? >> the overall efficiency of the building is that we have outgrown the facility. not only the technological advances that have happened since the building was established, things that we can not accommodate, but also the service needs of the department. especially including the forensic toxicology laboratory, whose services have expanded whose services have expanded manyfold over the original