>> hello. the welcome to the creditor meeting of the budget and finance committee. my name is carmen chu, the super -- the chair person of the committee. i'm joined by supervisor avalos. mr. young, do you have any announcements for us today? >> please silence all electronic devices. items after deposit they will appear on april 3rd, 2012 on the board of supervisors agenda unless otherwise stated chairperson chu: would you call item no. 1? >> item number 1, the acceptance of a state grant in the amount of $3,883.76 from the california

department of food and agriculture to participate in a program for a quality control program. chairperson chu: thank you. >> good morning. i'm here today to respond to any questions you may have regarding this contract. chairperson chu: for the purposes of information to the public, which you just explain what the grant would do? >> it funds the inspection of the number of just about two hundred agricultural inspection lot. we do wholesale distributors and we have about 116 of those inspections to conduct. we also at 82 retail inspections that we conduct city-wide at the small stores and the large stores. what we do is we go out and we

have a device, a tool that we use that is called an egg handler. it projects a really strong light. it places the egg up against the can lurk and can see -- against the candler and we can see inside if it is good. we reject the broken ones if they are not good. we can see inside it is good. we dispose of the not good eggs on site or return them to the plant where they were produced. chairperson chu: this is not requesting any new positions, correct? >> know. chairperson chu: why don't we open this up court comment -- open this up for comment from the public. are there any members of the public who wish to speak? come on up.

>> thank you. good morning. my name is fredrik. i have lived in san francisco for 60 years. i would like to speak out in favor of this resolution. i've always thought a partner public health group used every -- could use every dollar it could get its hands on. even though it is only four thousand dollars, i guess that is better than nothing. in my opinion, the department of public health probably wastes more than $4,000 a day, so maybe this is a step in the right direction. since we're talking about quality control programs, i would like to take this opportunity to assess -- maybe we can get state funding for the overall quality control program for the department public health, especially for the general hospital. thank you. chairperson chu: thank you. >> ♪ one more

♪ item to answer ♪ one more and to find ♪ one more item ♪ to make it all better ♪ and make it better ♪ and we will be happy ♪ we will have a programs ♪ to make it better ♪ and we will make it safe to eat ♪ ♪ and we will be there ♪ and we will answer the budget called ♪ ♪ today thank you. chairperson chu: are there other members of the public who wish to speak on item number one? seeing none, public comment is closed. do we have a motion? we have a motion and a second.

item number two. >> item number two, up resolution authorizing reentry on behalf of the council to retroactively accept money from the institute of local government as a recipient of an award of the california reentry council network. >> jessica went off here with the department of reentry division. thank you for considering the resolution to accept and expend this grant of about $40,615. it is a small amount of money to continue some of the work that we started last year. the roosevelt foundation institute for local government originally founded as when the reentry staff went to the public defender's office to lodge a statewide reentry council.

there are about 12 bodies braintree around the state -- for reentry around the state. the rosenberg institute reached out to local government for this project. since that time we have developed monthly conference calls, one statewide convening various side presents, and the website. this has been valuable book for san francisco, as well as to further good practices in other communities. i'm happy to answer any questions that you have. chairperson chu: this is also an item that would not require additional positions, correct? >> correct. chairperson chu: why don't we open it up for public comment? >> ♪ coming to the subcommittee was not what i had planned ♪ ♪ and i wish you good luck with reentry plans ♪

♪ i want you to be all free ♪ and now you're looking at me ♪ ♪ and that is what i want for you ♪ ♪ is reentry chairperson chu: thank you. are there other members of the public that wish to speak on item number two? seeing none, the item is closed. we have a motion and a second. we will do that without objection. item number 3. >> the resolution of the parks department to expand and urban grant for the boat bekker part funded by the safe drinking water, water quality and supply river protection act of 2006. chairperson chu: we have take a bill pressed from the department of recreation and parks -- we have jakob from the department of recreation and parks.

>> i would like to reiterate the importance of the park. that was opened in 1985, i believe. there was one of our newest parks in san francisco. in years -- there is a lot of need for renovation. we need to update the park so we can open it to members of the public. open space is very important to the neighborhood because we have one of the least open spaces of any neighborhood in san francisco, but also a high- density of seniors and families and adults who like to use recreational open space in order to build the neighborhood for a healthy model long term. chairperson chu: thank you. jacob? >> thank you. this is a culmination of a five- year planning process of the community.

i'm happy to answer any questions about the grant. chairperson chu: do you want to explain what the grant would be used for generally? >> we have a $5.8 million estimate for the renovation of the park as part of the trust for parks for people san francisco initiative. it also included the renovation of the playground and the current construction at balboa park. this will be part of the overall reclamation and renovation of the park space. chairperson chu: if there are no questions from the committee at this time, i believe it did not have a budget analyst report. we will open it up to members of the public. are there members of the public who wish to speak on item number 3? >> good morning. my name is douglas. i would like to speak in favor of this resolution, but i would also like to mention a couple of my own observations about this location. when i drive through the neighborhood, especially late at

night, i do notice that there are some interesting occurrence is around its border. maybe that should be considered when it comes to renovating the place. also, during the daytime, i do notice that it has been closed a lot, and when it has been opened it seems like it has not been used as much as i would think. maybe that should be discussed a little further. and also should be considered in upcoming renovations. thank you chairperson chu: thank you. next speaker. >> i know this part. i mean, i've been through it. ♪ long and winding park road ♪ has no exit to the end ♪ ♪ don't leave me standing here ♪ ♪ can't find my way on through ♪ ♪ don't leave me standing here ♪ ♪ lead me to the other side

♪ chairperson chu: thank you. are there other members of the public who wish to speak on item 3? seeing none, public comment disclosed. do we have a motion to send this item forward? a motion by supervisor kim. we will put the item forward with a second and will do that without objection. item #4. >> a resolution approving the form of and authorizing the distribution of a statement relating to the execution and delivery of the city of county -- city and county of san francisco authorizing the preparation and execution of delivery of final official statement ratifying approvals and terms and conditions of a previous ordinance and related matters. chairperson chu: thank you. >> my name is anthony. i'm with the public controller's office of public finance.

the item before you is this securing document for the city's planned sale certificate of presentation. -- of participation. a related ordinance was adopted by this board in october of 2010 that approved the issuance of the cop along with the finance of the various transmission documents, not to exceed $40 million, of which $38 million would finance its three acts as an improvement. since october of 2010, the projects that have relied on the city's commercial paper to provide interim financing, and as of march of this year, approximately $10 million has been drawn upon and expanded by the project. with the cop, the current plan is to refund the commercial paper and then balance -- and then the balance through the project completion, around may.

the city's disclosures, but that we call attendance -- that we call appendix a, the results of the november election, several bond measures that have been approved and issued, along with updates to the current fiscal year budget and finances, and the related agencies. those details are provided in appendix 8. -- appendix "a." i'm available if you have questions about the project. chairperson chu: thank you. you did say their updates to the official statement with regards to what happens in the november elections. any other updates to measures or

elections that the city has voted on it added, correct? >> that is correct. the unified school district proposed proposition "a" for general bond and the city also approved road disclosure bonds. chairperson chu: in the disclosure, and we also have measures that get in that are not on related? for example, the pension reform one had a big impact on our finances. does that go in as well? >> yes, it does. chairperson chu: thanks. before this item we also do not have a budget analyst report -- for this item we also do not have a budget analyst report if there are no commission comment at this time, why don't we ask -- open it up for comment from the public. >> ♪ it's the right time of the tax night ♪ ♪ the stars are shining are ♪ it's the right time of the tax night ♪

♪ for fixing the capital chairperson chu: thank you. next speaker. >> good morning, and supervisors. my name is douglas. i would like to speak in opposition to this resolution. i have to admit that i am not flinch when it comes to certificates of participation. my limited knowledge it seems to me that the local government could finance it through other means, it should be able to. when it starts to use things like participants of -- certificates of participation, it seems that most of the people do not know what they are. and if they know what they are, they are probably confused about what they are exactly. it reminds me of the general topic of voodoo economics. i always get a little uneasy when i continue to read about

the housing crisis that was basically caused by so-called different financial instruments used cleverly by wall street organizations. as a general concept, i think maybe the city and county should stick with things that everybody understands, and maybe we should shy away from something like certificates of participation. it seems to me, it is getting a little over most of our heads. and usually, when that happens, it is ripe for abuse. thank you. chairperson chu: thank you. are there other speakers? given no other speakers, public comment is closed. do we have a motion? we have a motion by supervisor avalos and willison nat ford with recommendation -- we will send out forward with recommendations. item number 5. >> resolution approving the form of execution by the city of two

san francisco -- of san francisco for equipment to be used for city purposes. >> good morning, supervisors. i'm with the comptroller's office of public finance. we have a request for public authorization for issuance of not to exceed $10.5 million in public revenue bonds issued for finance corp. the finance corp. is a non- profit organization created solely for the issuance of voters approved lease revenue bonds. in 99 -- in 1999, voters approved the issuance of bonds for equipment with increments

of 5% each year. the idea is that you pay down debt. as of now, we have the capacity of $55.7 million. we have about 25 available for issuance. we're proposing to issue $10.5 million in equipment that the board had already approved. this is coming later. we expect not to have any debt service payments in its fiscal year, but it will start accruing in the next fiscal year. the fund is approximately 10% of the paramount. you have to have occupancy before you can make payments. some of the equipment [unintelligible] in addition, some of the accounts that will participate will be the sheriff, police, fire -- the usual suspects.

it will be about $8.7 million in equipment proceeds. additionally, we have included some documents that include a preliminary official statement. the plenary official statement includes appendix "a" and that is updated to end -- be included in the most recent report that is included also with the budget analyst report. with respect to approval that we would need to sell it immediately, the finance committee has also approved this as of march 6th, 2012. if you have any questions, i will be happy to answer them. chairperson chu: thank you very much. supervisor kim? supervisor kim: i have a question about how the equipment lease revenue works. not the bond itself, but how do we take the city departments and

how do we allocate the funds and which equipment is approved? i know this came through the budget process last year, but i'm curious how that happens before it comes to the board. >> we work with the budget office. they get a request from the department and we go through the list and see what is legible and what would be a good equipment for a lease. when you do a lease structure, you need to put assets for collateral. we tend to use items that are bulky. vehicles, fire trucks and so on. and we also have the capacity not to exceed a certain amount. we presently do not want to issue more than $10 million. that is also taking into consideration, but we work with the mayor's budget office. supervisor kim: generally, the department submit requests for the equipment lease revenue, and then the mayor's office of budget determines which end up on the final list.

>> that is right. k. howard, mayor's budget director. every year, we ask departments to submit priorities for a variety of expenditures, including capital, 90, and equipment. and our office -- including capital, i.t., and equipment. and our office works with the comptroller's office and office of finance and the fleet reviews all of those requests and prioritizes them and figures out which funds will be available to support which requests. supervisor kim: thank you. chairperson chu: thank you, supervisor kim. why don't we go to the budget analyst report? >> as shown on page 3 of our report, we had a table based on information provided that identifies the dollar amount for equipment to be purchased by 11

different departments under this proposed issuance of $10 million. that includes 8 million net $780,000 in equipment -- $8,730,000 in equipment. and on page 4 of our report, we work for the total debt service for the 10 million two for $5,000 is estimated to cost 5 million. and that includes $10 million in principal and $8 million in interest. all of the equipment shown in the attachment on page 5 of our report as has been previously reported to you was approved by the board of supervisors in the 2011-12 budget. that services costs are subject to board supervisor corp. annually in future budgets in the city. this would be through 2017-18.

we recommend that you approve this resolution chairperson chu: thank you. why do we open this up for public comment? are there members who wish to speak? >> ♪ well, they are working their way back to you ♪ ♪ with a burning equipment program ♪ ♪ yes, they are working their way back to you ♪ ♪ with a burning equipment program ♪ ♪ bringing it along ♪ they waited so long ♪ they waited so long for these bonds ♪ ♪ bring it to them chairperson chu: thank you. are there other members of the public who wish to speak? seeing none, public comment is closed. and a quick question for the budget office, in terms of a number of equipment, i notice there are a lot of vehicles being purchased. it typically is in terms of this equipment program. i wonder, after your thought

process and your evaluation, generally, has it been that you are authorizing the purchase of cars to replace those that are out of service? i know there has also been an effort to reduce the size of our fleet as well. >> that is right, supervisor. we are using this process to purchase replacement vehicles as vehicles go out of service. but we have also been over the last several years making a concerted effort to reduce the size of our fleet. if we were to take a look, we would see that although we are replacing some vehicles, we are not replacing all of them. that process is something we are continuing to look at this year with fleet management. to figure out if there are better ways for the city to share vehicles, to find other kinds of cost savings so we do not need as many. chairperson chu: thank you. we have heard public comment on this item. do we have a motion to send the item forward?

we have a motion to send the item forward with recommendations and we will do that without objection. item six. >> ordinance authorizing the director report to execute an agreement with the san francisco ship repair to install power equipment at dry dock no. 2 at pier 74 an amount not to exceed $5,700,000 and exempting the contract requirement of the administrative an environmental code. chairperson chu: thank you. we have brought with a report. . brad with a report. >> brad benson, special projects manager with the port of san francisco, representing the port director, monique moyer.

while i am pulling up the slide show -- the port through the america's cup planning process and the cruise terminal planning process has identified that it needs to disconnect shoreside power at pier 27. this pier 27 shoreside power project was a marquee project for the report. funded by combinations of sources that i will describe in the presentation.

we got a lot of scrutiny from the bay area air quality management district, who partially funded this court -- this project. epa and several nonprofit organizations that advocate for clean air about this proposal to disconnect shoreside power at pier 27 during the construction of the cruise terminal and the america's cup event. and through the ceqa process identified another short power project at pier 70 that could offset increased emissions that would result from disconnection of the pier 27 facility. this item does to how the court would implement the year 70 shoreside power -- how the court would implement the piers 7 shoreside power project and to

rely on our bea systems of sham -- of san francisco ship repair to install these at the dry dock port. i will go over the two systems at pier 27 and peers 70. i will give a little bit of discussion about the proposed project at pier 70, give a little bit about the project we have proposed at the utilities commission and the bae project. i will try to do this very quickly. the pier 27 project was a $5.2 million project, very close in cost to the cost of the proposed project at pier 70, which is by -- $5.7 million.

the epa and sfpuc combine forces for the project. the portland after the commission the project for construction services at pier 27. the eir requires the report, and the board in certifying the appeal of the eir also requires the port to install this shoreside project. even without the ordinance before you today, that particular strategy that we have crafted with the public utilities commission, this would be the option for the board to do. >supervisor avalos: eventually, we will have shoreside power at the cruise terminal and that will be reconditioned, correct?