chairperson farrell: good afternoon. welcome to the government audit and oversight committee. i am joined by vice chair sean elsbernd and president david chiu. i want to think -- thank sfgtv. >> please make sure to silence all the vices. speaker cards should be given to the court. items will be acted on during the april 3 board of supervisors agenda unless otherwise stated. item number 1, adopting and implementing amendment 2 to the service employees international union, local 1021.

>> this amendment is an amendment to the current contract the city has with sciu local 1021 to implement a legal settlement surrounding some outstanding litigation. it does not affect the current year budget in any way. all agreements will take place at the close of this. supervisor elsbernd: the costs associated for the out years, the next two years -- there was a lot in the controller's letter i did not understand. the employees have agreed to notice these costs in current negotiations and credit them as such -- what does that mean? >> based on our agreement to start paying released individuals' premiums, it will cost the city approximately

$4.80 million, which is about 0.65% of payroll. that will actually count toward the settlement in the city's favor during the current year's negotiations. we are in bargaining right now for a successor agreement. this will count toward the cost of that agreement. supervisor elsbernd: thank you. chairperson farrell: any other comments? with that, we will open it up to public comment. other members of the public that would like to comment on this item? please lineup on the side. come on up. >> my name is gus feldman. i am a field representative. i have the proud owner of representing and advocating for the hard-working employees of san francisco general hospital. as we know, back in 2009, there was a stream of unfortunate circumstances that left, i

believe, approximately 300 of our members previously classified as nursing assistants with pay deductions amounting to about 20%. there were doing the same work they're doing prior to what we called the de-skilling of the patient care assistant classification. they are doing the same exact work, yet woke up one day with a notice that their pay was to be reduced by about 20%. this was a gross injustice. as you guys probably recall, we fought against it with the utmost vigor and passion that we could. it is very much a relief that since 2009 our members voted to sacrifice their own pay to create a fund to supplement the loss in pay of these 300 edec =

= de -- 300 the classified employees. -- 300 declassified employees. we would like to thank the labor relations portion of human resources for working with us to resolve this matter. we think this committee as well for reviewing this and hopefully of proving it. thank you. chairperson farrell: thank you very much. next speaker. >> my name is douglas yep. i used to work at san francisco general hospital. i am a little puzzled by this mou. mainly i am puzzled as to why it was assigned to this committee. it seems this is a financial matter rather than an audit and oversight matter. i do not know whether it actually belongs here. i have a feeling that maybe it is here because there is something else to do on this

committee. i find that a little hard to believe, but maybe i am wrong. i would like to thank mr. feldman for his comments. he is part of the new 1021. in my opinion, it is a vast improvement over the previous 1021 i had to endure with. hopefully, this mou, whichever way it goes, will benefit the union. hopefully, the union will continue to improve itself. we have to be optimistic in the future, even though, according to my interpretation, the union sometimes cooperates with the employer to often. it is kind of like the nfl situation, where you need a commissioner to put down the hammer on people that obstruct justice. the last thing i have to say it is -- who is the next coach sean peyton? chairperson farrell: thank you.

next speaker. >> gabriel holland, san francisco but the coordinator for 1021. i want to thank the city for bringing this to your city. i hope you support it. our union supports it. as gus feldman mentioned earlier, deskilling captures part of the picture. to go more global, it is about valuing the work of people of color. that is why these classifications years ago had a raise. we had a comparative for the study and found those positions were underfunded because the were primarily women and people of color. 80% to 90% women and people of color. the value of their work, because of sexism and racism, is considered lower. those wages were increased. we were sorry to see the decrees and fought vigorously against

that, as some of you may know. we are pleased this wrong was addressed before. we are pleased it is being addressed again. thank you very much. chairperson farrell: thank you. any other members of the public that wish to speak? seeing none, a public comment is closed. colleagues, any comments? entertain a motion. a motion to send this forward with recommendations to the full board. can we take that without rep -- without objection? so moved. >> there are no further items. chairperson farrell: meeting adjourned.

>> good morning. thank you all for joining us. we are here to announce that macys.com signed a long-term lease here on 680 folsom streets. i want to thank our partners for opening of their building and allowing us to do the event here today. before i handed up to the mayor, i want to introduce our speakers. we have ken anderson, president of macy's.com as well as a

partner from tgm. >> i have to have a joke. what do you do when it rains in san francisco? you move the construction indoors. i can hear them whispering -- ok, what is my next job? i want to thank the construction employees behind me, i want to thank michael and tmg. they have been working with the city so well in all of the properties that they manage, and that is consistent with our tone in the city, one that i registered strongly, that our technology companies, including macys.com and so many others, if they want to stay in the city, we will make sure that they are welcome to. i know this is an exciting day,

almost as exciting as in 1998 when you started maycys.com, tried to bring technology into the retail business, setting the groundwork for that success. you look across the country today, 166,000 employees. multiple stores, billions of dollars. in fact, $25 billion for fiscal year 2010. those are serious numbers in retail. i am familiarize myself with the numbers. if you are at home with my wife, she just says, macy's, go ahead and support them. she goes in the store whether she intends to buy anything or not. it is a brand that resonates with so many people in our city.

thank you for locating here, for making it the technology headquarters, along with your head covered -- headquarters in cincinnati, new york. thank you for being a great partner and making sure this technology environment that we are building, not only to stay and grow here, is invaluable. also the work with michael and others at tmg to make this building complete. macys.com, including with what we announced last month with riverbed, this is now a building that is 80% complete with technology built appear when they moved in it in 2014, hopefully it will be 100%. that is the intention, to bring in a spirit of innovation into our city and to make sure that we were growing at it. you have to see what is going on

in the rest of the city to realize how important it is. with this announcement today, we have a larger announcement, that this joins the rest of our technology companies in breaching the 1 million square foot mark in the city, just in the first two months of the year. 1 million square feet of leased by technology companies. that is a wonderful market, significant for our city. it means jobs. not only renovation jobs, which the people behind me represent, but also the technology jobs and the wonderful things going on to continue and sustain the building of our modern workforce. i also want to say to you, what makes macy's such a wonderful company to work with, when the economy was down, when the government had to put in money for special programs to hire in people, macy's stepped up.

they hired 45 people in the jobs now program just to get started. they were not saying, we aren't coy to put this to somebody else. we are going to stay in san francisco and work with the jobs now program. through that program, through the training we created, jobs created -- prepared this programs, helping people to do with technology and marketing and customer service. that is the wonderful spirit in which macy's has made a commitment to the city. i want to thank them for that. i have been going around, understanding where the heart is in the city. it begins with people making a commitment. even in the hardest times, they will be hired locally to make our city were better. the announcement comes in with all kinds of other technology companies making a bid for these office spaces. it is becoming even more

precious, but it is exciting. i think we are doing all the right things and registering our commitment. every week i have a chance to unveil for myself, companies where even the names were hard to spell out. i did not know what they meant. now they are leasing office spaces in the hundreds of thousands. salesforce begin with a big announcement, 400,000 square feet, and then there was linked in, and then riverbed came in in the same building. i think folsom street is lucking out. there are other companies in the area and they feel the spirit of being south of market, the spirit of innovation. i want to thank kent anderson,

who has been personally involved with the company, but also the spirit of macy's, macys.com and being part of the spirit of san francisco making innovative solutions and customer for the retail, to be more than just the old macy's. it is the technology mode that everyone is using. thank you very much for being part of this announcement. michael, thank you for your work in this effort as well. plant construction, keep moving. thank you. [applause] >> now kent anderson. >> we are thrilled to be here. thank you for the kind words. the core of our strategy is positioning our company in downtown san francisco. it is the most attractive place in the bay area to work. we are able to attract the talent we need to grow the

business. this is part of our strategy. we are excited it came together. we're looking for to the partnership with tmg, working out through the building and making it the headquarters of macys.com. we look forward to a long relationship with the city of san francisco. [applause] >> i am the most thrilled to be here three weeks later, having had the opportunity to announce the river bed police with the mayor. there are a lot of people here from my company that have a lot to do with this. -- riverbed lease with the mayor. we were able to buy this building a couple of years ago as a result of the down market. that allowed us to be competitive in this cycle, to be doing some leading

transactions. i am excited about our two tenants. they are both publicly traded, both profitable, and have a history of success. we were able to attract quality of tenants that we had hoped for. as you know, this building, as you walk into it, thinking it needs a facelift. it is an opportunity for us to come up with what will be one of the best looking buildings in the city, designed by s.o.m. with the highest quality of features. we are building of the core. we have a huge floor plates which are very efficient. for the tenants up above, they will have great views, and as i said, very efficient floor plates. we end the partners are very

excited about the team that put this together in a short period of time. the effort was next two herculean. we are very happy. thank you for being here. mayor, once again, thank you. [applause] >> i think we have some time for a couple of questions related to this announcement. >> [inaudible] >> yes, i do. i do not have any specific sites but i think building new buildings, designing new buildings will also be a big part of this. i think it is very smart for tmg to team up over existing buildings. these are just as valuable got -- jobs to reconstruct these buildings. new buildings is a part of it.

clearly what is on my mind is the salesforce campus, as we talked about. we will continue to work on that side. we have some other sites that are vacant and very appropriate for building, so we look forward to that. definitely in the agenda. >> [inaudible] >> yes, in fact, i have already started a working group on the abandoned school sites. forever writing a reasons. the first one is, why is our school district sitting on abandoned school sites? of course, they need a rainy day fund. there is always the threat of the state. if they do not get the sales tax, it could be hundreds of millions of dollars depleted from the school district. we have got to be smarter. we are going to provide that level of smart mess. i think we can get companies to

work with us, even on school sites. they are situated all through the city in very good opportunities for development. >> [inaudible] >> i do not even see that as a setback. obviously, to people that want to immediately start on the design, there is a bit of a slow down there, but i believe it is such a valuable piece of property. we were already feeling some pressure from other industries that wanted to expand. getting a message from partners from ucsf, the growing research

and development technology area. we thought they may need to go south of pier 70 to look at that, but this offers another opportunity. that dialogue is alive and well. when it comes to development in the city, we are going in a strong, positive direction. i have said time and again on one the city to be confident with investors. i know michael is part of my group of people i look to to keep doing the kinds of things we need to keep investor confidence up. there will be twists and turns as people figure out -- as salesforce has done -- where they need to be. it is their employees that told them they feel so comfortable in this downtown area with all of the built in transit infrastructure already there, so i welcome that strongly. we will have a lot more of these kinds of buildings for them, but we are headed in the right

direction. what i wanted to say to these workers, work hard and make all the money you can. it is your spouses, girlfriends, and second girlfriend's but i do not have, that will be shopping at macy's. >> [inaudible] >> good question. one of the reason why i go to this technology companies on a weekly basis -- part of it is to listen to this cfo's, ceo's in

the company and educate me on what they're doing with products development, but the other part that is as important, i have sessions with all of their employees. they tell me why they want to live in the city. a lot of the drive of these technology companies, reasons to stay and grove, they are finding that talent. if i do not take care of the needs of that talent, we will have empty buildings. i pay attention when they say, the reason i am here, the reason i am an engineer here at macys.com, or river bed, or twitter, i want a good school system, good transit system, a good night life. or i want to be able to start a family and get affordable housing. if i take care of those other issues and not the single

dimensional in the way we approach business, i have the essence of why these companies are here. it is not only investment friendly. we also need to the employee currently so that they know they can start a family here, have good transit systems, have infrastructure that supports success and our business development. i think that is key. >> thank you so much. we will be here for any further questions. thank you for being here today. [applause]