study different methods of financing and maintaining trees. we're hopeful that a couple of months, we will have some recommendations of how to maintain these trees and what the best financing should be. >> certainly, to me, it would make sense to have a consistent way to do tree maintenance. if i could ask some questions on your previous slide, i was going to wait to the end but since i am already speaking, i have a question about the own property for electrical vehicle battery switching stations. who are releasing this to? are they private companies that are using switching stations? gosh the mta. a piece of property that was

part of the embarcadero -- >> you said we have been able to reduce the dpw by 28%, and i know that as regent hold as the current fleet? >> in total, there are a little over 300 vehicles for paving. we are continuing to work on mothballing some of them. we have been having conversations with treasure island where vehicles are used on a regular basis get part and use them as we need them. >> i appreciate your work on finding efficiency.

>> other opportunities when the director was there, there was some reorganization that happened in the architecture on construction. well done some additional reorganization there and also creating some leadership. the project delivery program, many of the project that we're working on, the hospital and public safety building, the projects that are coming on line. they are giving us opportunities to do better.

we have another ramp up to make sure that we -- will be able to move them into one more steady planning. >> how do we expect to see --

>> we hope to do many of the residential streets, and they are scheduled for 160 blocks. they will be starting within the project management side. the have a lot of current work, design, will be staffing and working very closely with the mayor's office to make sure that the contract is approved. and making sure compliance is met. supervisor chu: given the bond will only last for three years in terms of the resurfacing program, and we don't yet have unidentified source going forward after the three years, one of the things is to have a

sustainable bond. after that, is expired. are you hiring? not necessarily temporary positions, but those that will go away after a period of time? >> one of the opportunities is that it has allowed the agencies to work closely like the puc to get tehe streets cleared for water and sewer. they have also passed a master plan. by looking at projects coming on line for the bond, it allows us to begin to plan and see what is coming ahead. hopefully, working closely with the mta, there are projects

coming on. hopefully, this team in-house will be able to do some of the work. there are also other streetscape projects coming on line. the bond is a small portion that will fund the needs. there're tons of opportunities to apply for grants and funding. hopefully that will take us beyond the bond itself. projecting what should be done now, when the work force will be to continue to improve the right of way. at this time, that allows

someone to complete a training program as we figure out how to move forward. one more slide, a think we talked a lot about what proposition b will do. supervisor avalos: just a quick question that was brought up to me on the street in my district, someone was concerned about how when the repair sidewalks, it is just a section of the sidewalk and she was concerned that there were different colors along the sidewalk. is there an effort to blend, or do they, after years, start to reuse the same color after a while? is there a patchwork consensus? i thought i would relay the question to you directly.

>> concrete from 20 years ago and concrete from now, trying to get the right coloration can be difficult. we asked contractors to work as close as they can to match. supervisor avalos: i thought i would bring it up, but i think is great that the sidewalks get repaired. >> as we go to pave many of the new streets, they are fixing many of the sidewalks. the goal is to do a complete street at once. and more curved ramps, it makes the sidewalk more accessible. supervisor chu: finally, prop b, the street resurfacing component the think will be part of your

five-year paving plan? has the department developed talent is going to prioritize or work on projects for those items? or will it be dependent on a number of things, other streetscape work that is coinciding? >> right now, over the next three years or five years, and the streets are to be pai -- tht are to be paved are identified. of the pedestrian safety projects, we have been to many neighborhoods and have had quite a number of walks with supervisors. the have been put into a list of the has been prioritized with city staff.

the bicycle coalition, advocacy groups, trying to prioritize what that list would look like, hopefully you can help us pick the top ones. we only have 2 million or 3 million. hopefully we can take it to counsel planning and have it approved. supervisor chu: in terms of the budget solution is laid out for 13 and 14, is the consolidation of the items meeting the budget instruction? >> yes, to the best of my knowledge. supervisor chu: thank you. if there are no questions at this time, are there members of the public that wish to speak on item number one?

>> ♪ dpw trees, very pretty and the budget very sweet thanks for sweeping those many streets ♪ ♪ the dpw tree very pretty and the budget very sweet thanks for keeping th streets swept and very neat ♪ ♪ dpw tree, very pretty and the budget very sweet and for thanks for fixing all the sidewalks and all the street leaks ♪ supervisor chu: thank you. are there other speakers that wish to comment on item number one? public comment is closed.

if there are no questions, i would like to think the department and congratulations on your appointment. in terms of your budget, i think a few things to follow-up on, i think there is interest to make sure that we have full information on how -- for many of us, we would like to see him when the process is looking like. it is just about the street paving program, how we are looking in terms of paving. we have the bond, which is a great king, but how do we do with puddles and the other things that are necessary. i would like to know more about that. yet to get more information from you, the bulky items picked up,

it would be a helpful update for us. colleagues, can we continue this item to the call of the chair? thank you. item two. >> receiving an update on the city's capital plan for 2012- 2021. supervisor chu: brian strong for this item. >> good afternoon, committee members. i am brian strong from the city planners office. thank you for letting me give you a quick update on the capital plan. as many of you know, this is the first year that we switched to a two-year capital plan. this year, we really had

discussions about trying to only focus on changes that were significant. those are what we have been discussing on the capital planning committee. that is what i will review with you today. in the capital planning committee, let me see here. i won't focus on that, but i wanted to remind people of some of the accomplishments we have had over the past 10 years and especially over the past year. it is definitely two or three years' worth of work that we have been able to maintain and improve our condition to move toward a more permanent funding source in the future. if we started work on the veterans building, one of the more vulnerable buildings that houses critical programs and

various gangs. that work is underway, it is -- we have a constructedfour bran -- constructed four branch libraries over the last year. we also did quite a bit of work in the past year where we've had about $45 million -- excuse me, $53 million worth of work. five of the six projects have been completed on time, on budget, without business destruction. this is really quite an accomplishment that we are really proud of. dpw owes a lot of credit for that. 14 major part in direct projects will be completed by the end of the fiscal year.

another quick accomplishments to mention, following up on some of the questions from his presentation. we paid the 260 blocks, broken ground on the public safety building in the mission bay area, we adopted a policy for an infrastructure and financing district. we are looking forward for refinancing agreements. we will use that as a way to get additional infrastructure for those neighborhoods. we have 21 fire stations that were part of the earthquake safety bond that right now are under design. some of them started to do repair work. we should mention that we sold a coordinated bonds for -- we received 2.9% interest on

that. it is remarkable. i think it speaks to the strong financial capacity of the city and the way that we mentioned resources and so forth. we're also making progress on the water supply system, the hospital, the puc headquarters and so forth. we are starting to go into some of these cisterns, draining them, looking at renewal were. -- renewal work. it is about a $25 billion program that includes $5 billion of general funds for general fund apartment investment, enterprise departments of about $11.4 billion, and a lot of the extra no private led

development. some of the hunters point shipyard and some of those things is part of the redevelopment agency are included in that figure along with the school district and a similar other partners that affect us. let's move on. thank you. so the capital plan, here are some of the highlights of what we have for the general fund program. this is slightly new. i should say that the shelling of percentages is slightly new. we are funding about $5 billion if you remember from the previous slide and it shows how has broken out. we are deferring about $1 billion, so that is one of our primary concerns at the capital planning committee. enhancement, it is primarily for

earthquake safety. you can see the percentage, this is the new part. this is what is being covered by the cash program and other types of debt. there are federal and state dollars there as well for some of those projects . so the major capital projects that we wanted to remind folks when budgets, around shortly -- budgets come around shortly, it was part of the earthquakes if the bond and is contemplated for the next earthquake safety bond. drives the size of the building. that is where a lot of the discussions have been.

what we have done so far is verified the in house work versus doing it outside or outsourcing is roughly equivalent. we do have other options we can go to that will not break the bank, so to say. estimated construction start as spring 2015, depending on passage of the earthquake safety response bond coming a year from this november. one year from 2013 november. these are the jails at the top of the hall of justice, 900 or so beds are located there. this is one of our more vulnerable buildings. we have done two two population studies -- two population studies. these have been helpful. pellett -- part of what we're

struggling against is the realignment of the state. more prisoners are being pushed down to the local level. we are doing more studies in the future. we do not think we can wait on this so we're looking at a phased approach. looking on strategies to purchase the block next to the hall of justice and see if we can face the development of the new jail. we may build the capacity for 400 beds in phase one. a similar or maybe smaller capacity on phase 2 depending on what the projections look like. >>supervisor chu: this is jail funded? >> that is right. the next slide, we talk about another part of

the hall of justice. that is the medical examiner. this last year we added some funds to the budget to pay for one new hall. that is the photo in the bottom left of the session. we have purchased at. they have done some studies on it. it will meet the level of service we expect. what we're doing is looking for that earthquake safety bonn to pay for the majority of the capital improvements there which will be around $50 million. we should mention that the expansion is something that was in the capital plan last year and is moving forward. we have done quite a bit of work on a conceptual design and the cost-benefit analysis. you can see some of the green representing some of the areas that we would be expanding, contiguous space underground. there are opportunities to develop some other spaces as

well. that is a project that will require more planning. we were hoping by next year we should have some good options as to what it will cost. supervisor chu: we have heard a lot from folks in our tourism and convention business is that this is very important extension to make sure our space is desirable and is competitive with other locations. right now in terms of the capital plan, it does not come -- contemplate issuing geo bonds or back bonds. we would have to get to a different place or of different funding source? >> that is right. it is not contemplated in either of those sources. we're looking at ways that -- this is a big partnership with the hotel. the hotel industry has stepped

up and increase taxes on themselves. it helped pay for renewal project and we're working with them on how they would contribute and we would see this as a public-private partnership with them and looking at how we leverages our dollars and work with them to develop a program that can be funded. the next slide shows because we know a lot of people have questions about our geobonds. this is an update of the geobond rate. the red line at the top is the 2006 rate. we have not increased property tax rates while we have issued $1.50 billion worth of bonds. the white on the bottom shows the bonds that have been issued. the colored bars above show the

ones that are to be issued. some of those are contemplated in to the future. we have had lots of discussion and we always do at the capital planning committee about this graph and how we can continue to manage all those on that needs -- unmet needs in a way that is responsible and not overly burdensome on property owners. one of the drivers of this graph and people have asked can we increase the spawn or about one, one of the drivers is the assessed value of property across the city. that read bar moves up or down based on the excess of value. early in our days we were looking at a 4.5% growth in value every year. the past two years we have seen that taper off dramatically because of the recession.

and now the estimates forc fiscl year 13 -- a goes to 3% for two years and back up to 4.5% after fiscal year 16 to the end of the plan. supervisor chu: in terms of the commitment, we have gone out to say we are issuing a certain deal bonds -- geobonds. it does not represent rates that we pay back in the day. we're holding this line to make sure people feel comfortable with the tax obligation we're faced with. we talked about the assessed value of the property. the market the u.n. has changed. similar to that, we have seen very good market sales at rates that have been historically lower than the historical lows and that has been good but it

might be a momentary blip. how does the capital plan accommodate for this? do we assume an average, assuming potentially a onetime thing? >> do you want to answer that? go ahead. >> good afternoon, supervisors. i am from public finance. you're right. the assumption we have been using was conservative at the time but now it is pretty aggressive. what has happened is the fact we're able to access market -- short interest rates and take advantage of the low interest- rate. we have been able to maintain this line. the office will continue to actively manage this portfolio to make sure we take all that into consideration. supervisor chu: the low interest rates are offsetting the interest value. >> exactly. supervisor chu: and -- in terms of the long term funding, we do

not say we have rates at two. whenever, we should assume that we take an average overtime, is that right? >> what we do is we project the interest rate of 6%. the actual sales is adjusted to reflect actual interest and the projection is conservative. supervisor chu: thank you. >> the next slide we also want to mention what is going on with the enterprise department because they make up the majority of our 10-year capital plan. they have their own commissions and so forth looking at it. it is important to keep that in mind. the airport has been doing extremely well. most of you are aware of that. that has been reflected in their capital plan so we're happy to see that they are reinvesting in

the infrastructure there to make sure it stays first-rate. they have seen an increase of 50% of their increase from last year's 10-year capital plan to the next 10 years. primarily, this is due to the inclusion of a terminal one preconstruction. this is similar to the work they did at terminal 2. this is an $840 million project. it was an emerging need. now they identified this, it will move to a funded project. other major projects over there, you can see the photograph at the bottom left of the new air- traffic control tower. there's a lot of run like safety improvements that are going on. the picture is not an actual test crash, it was testing the new runway material that we are putting in place so of plane -- of a plan has to land and it does not have the wheels down,