[please stand by]

captioned by the national captioning institute --www.ncicap.org-- supervisor chu: good morning. welcome to the regular budget and finance committee meeting. mr. young, do you have any announcements? >> please turn off all cellphone. please fill out a speaker card if you wish to speak during public comment. items acted upon today will appear in the board of supervisors agenda on november 8, 2011, unless otherwise stated. supervisor chu: please call item no. 1. >> item #one.

resolution authorizing the office of economic and workforce development to retroactively accept and expend a grant in the amount of $5,724,203 from the department of labor for transitionsf. supervisor chu: thank you very much. for this item, we have rhonda simmons. >> the grant that we receive from dol, the department of labor, is to risk -- is to survey unique population of non-job ready, non-custodial parents. it is a citywide grant. some of these folks are 121 days delinquent in their child care payments. we are looking at a caseload spread over four years this city wide. we would use stops to access these folks, doing outreach in services across the city. we do special outreach.

the program is built off of jobs in the sense of a transitional jobs program with good will being our primary service provider for this grant. we will have a combination of case management, transitional employment, job readiness, as well as assistance for child support. we are also working with adult probation, as a number of these adults overlap in that system as well. i do not know if there is any other system that -- information you would like. supervisor chu: this item does not have a budget analyst report. we can open this item up to public comment. are there any other members of the public that wish to speak on this item? seeing no one, public comment is closed. colleagues, this item is before us. we have brought a motion on this

item forward without recommendation. thank you very much. item no. 2. >> item #two. ordinance de-appropriating $17,080,000 of 2008 clean and safe neighborhood parks bond proceeds, series 2008a, which were appropriated upon sale of the second issuance to specific voter-approved projects and re- appropriating $17,080,000 to other, voter-approved projects. supervisor chu: thank you. for this item, we have the recreation and parks department. >> i am happy to report that we are in the middle of a banner year in terms of implementation for 2008. in the coming calendar year we will either complete construction or start construction on every one of the 12 neighborhood parks that were called out of fun for funding and completion. just last week, we finished our first project to be completed by the 2008 bond.

appropriation is being triggered by the need to appropriate funds for the rec center, one of the largest projects in the bond, with a total project budget of over $20 million. over the past two years, and when we last approach to the board for appropriation two years ago, since that time things have shifted. we have moved faster on some things, slower of others. this appropriation allows us to move funding from projects that have been slow on the city side. projects that will lead funding over the next few months. our intention is to approach the board in february or march for a third and final bond sale. supervisor chu: thank you. taking a look at this item before us, it might seem like it

is appropriating income from existing projects, but that is not really the case. can you explain that? >> yes. we are going to reallocate funds from projects that do not need the full amount to get through the next three months. when we do the 30 final this spring, those funds will be replenished. supervisor chu:-the reason that we do not want a number of excess dollars to be outstanding without using that money, is that because every time we borrow that money, we are paying interest on it if we are not using it correctly? >> exactly. supervisor chu: thank you. let's go to our budget analyst. >> madam chair, members of the committee, on page 5 of the report we point out that the projects at this time, which had a short-term surplus, shown in

table 2, the next is on page 5 of the report, eight projects. they will be real appropriated into other projects, shown on table 3. these are separate from every appropriation, then be appropriated to the eight projects shown in table 3, page 6 of our report. we recommend you approve of this supplemental. supervisor chu: let's open this up to public comment. do any members of the public which to speak out item number two? public comment is closed. we have got a motion by supervisor -- supervisor supervr mirkarimi to move this forward without objection.

thank you. item #3. >> item #3. ordinance de-appropriating $314,092,249 in existing water system improvement program project budgets and re- appropriating the funds to the revised wsip program budgets adopted by the san francisco public utilities commission, and placing $227,779,748 on controller reserve subject to completion of project-related analysis pursuant to california environmental quality act, where required, and receipt of proceeds of indebtedness, as certified by the controller for fy2011-2012. should i read item number four? supervisor chu: yes, please. >> item #4. hearing to consider release of reserved funds, public utilities commission in the amount of $27,283,174 to fund the construction for the water system improvement program cuw374 -- calaveras dam replacement, a component project within the sunol valley water region. supervisor chu: this item came before us previously. we did not go into a leveraged

details, to allow for the department to work with budget analysts to make some revisions. i believe that they have come to an agreement with some amendments. i know that todd will be speaking to us on the amendment later on. >> thank you very much. in the general manager of the san francisco public utilities commission. it really speaks to the importance of the water system improvement program rebuild, as much was stressed by our colleagues at rec and park, we are well under way with construction on the rebuild. $2.6 billion is under construction right now. leaving only six left in pre- construction. we are significantly far along with half. to put this in perspective, $4.6

billion was the budget. before you today keeps the budget at exactly $4.6 billion. it allows you, the finance committee, to carve off savings earned it chiefly so far from very low bids from contractors, put it into a savings account, subject to your release and review. as far as it extending today, we have extended cash out the door. we have also awarded contracts in controller assistants, another $3.7 billion. we are bringing the total to $3.4 billion, extending and encumbering the contracts on the way. we have achieved very large

savings, able to sell our water revenue bonds at historically low rates in the united states. the items before you today, i will summarize them. $304 million, up or down, so that the totals are the same. " we are doing with the legislation and an amendment distributor has been distributed to you. we are the appropriating be achieved savings in the system -- we are de-appropriating the achieve savings in the system. coming in in such a way that we have been able to rearrange them with other needs. those needs are down below. program, locked savings. $104 million have been put into that savings account.

we will need some additional money for water supply, however, like the drilling in the station on the peninsula, as well as a local water supply for groundwater. additional enhancement for habitat reserve programs, where we do mitigation and are impacting a landscape in search locations, making improvements in others. working with five agencies to make sure that we have all of the sacraments in place for the proposal in the project. the recycled water project is also leading the additional $7.5 billion. proceeding with the recycled water. the ups and downs of $304 million are zero with a total budget remaining the same.

we are asking you to increase the reserve for this project, for those programs that had savings. that is part of the normal process. in addition, we are establishing new reserves, as recommended by the budget and a list, for the program reserve savings of 144. putting new money for habitat reserve and water on reserve, coming back before you anyway to ask for those to be awarded. leslie, the release of reserves for the project. we have reached a milestone this summer. we were able to start construction on the first major

dam built in california since the 1970's. congratulations to you and the city family for moving forward. the amendment as a whole, just to recap, realigns the budget, bringing it up to date based on what has been reviewed and reported on in every single change and update, coming not only to the commission, but to this body to go through that. in addition to the items mentioned here, we have also asked for the amendment that you allow us to take any future savings on future contract rewards and moved it to the purview that you have under your reserve, locking in savings that we would only be able to pullout if you give us permission. i know that we have concurrence with the budget analyst on that

as well. with that, i am happy to answer any questions. i am also joined by julia, who has done many -- much of the heavy lifting here. she oversees all of our capital projects. supervisor chu: if there are no questions, let's go to the budget analyst report. >> madam share, down members of the committee, under the proposed ordinance, puc would appropriate $304.1 million. this is money from six projects that are shown, in table no. 2, page 6, that money would be real appropriated -- we appropriated for five projects shown in table 3 of the report. going to this new system program

reserve fund, which she spoke to. -- which he spoke to. we had concerns that the fund would not have been subject to approval by the board of supervisors and under this proposed legislation, as stated, any expenditures on that fund would be subject to the approval of the board. we recommend that you approve this ordinance and the release of reserve funds. supervisor chu: let's openness -- these two items up for public comment. any items -- any members of the public that wish to speak of items 3 and 4? >> good morning, supervisors. ♪ i would like to see water for

free puc in an octopus' garden with electricity be would be warm in a power storm in a little octopus' darden beneath the the c p u c i would like to see more water for free puc in an octopus' garden under hsc ♪ supervisor chu: thank you. are there any other members of the public that would wish to speak? seeing no one, public comment is closed. i would like to thank the budget analyst for his recommendation, working through language that adequately allows for the department to be able to put away savings into a central reserve, rather than have it be a natural project, maintaining