specialty is in managed care. in the initial portion of their contract with us, they were able to assist us with some refinements of our procedure to capture more revenues, which we implemented for workers' compensation, for example. and with the recommendations, we have been able to tighten up our procedures and of course their collections of been reduced based on that. but that is the relationship we have with them. supervisor chu: thank you. why don't we go to the budget analyst report? >> madam chair, members of the committee, supervisor farrell -- first of all, when the contingency policy was adopted by the board of supervisors, there was never -- it was never

contemplated the contingency -- we talked about an original contract and a contingency on an original contract. not in that policy was a first amendment or a second amendment or a third amendment. so now when we have amendments, it is absolutely ridiculous to have a contingency amount that would be based on prior expenditures already incurred. it is also true that the department, as the the promise did it, that all funds are subject to appropriation approval by the board of supervisors. but if you inflate a contingency amount to an amount that is miscalculated, that is an invitation for an outside contractor to come back to the department and intend to convince the department that funds are needed. i am not saying the department did not do a good job in monitoring it, but it is absolutely an invitation to the bottom line is the contingency amount should be based on future expenditures. it should never be based on

prior expenditures that have already been incurred. the contingency is for something that may happen that was not anticipated, not on prior expenditures. our recommendation is, on these items, to reduce the contingency amounts to the calculation we made which is based on the prospective expenditures and to approve the resolutions as amended. supervisor chu: thank you. to be clear, with regards to your room addition for the contingency levels, it does not eliminate the contingency. it says for the contract that has already been incurred, you know what need a contingency for that. the going forward, we're still allowing that 12% contingency. >> that is absolutely correct. we're not questioning that the department to not have this flexibility in the contingency amount. you're totally correct. supervisor chu: thank you. i would like to go to public comment on these items, but i do have a question to the department with regards to

contingency. let's open it up to public comment. if there are any members of the public who wish to speak on items six, eight -- 6, 7, 8, or nine, please come forward. seeing none, public comment is closed. to the department, given that -- at first i was kind of ambivalent about which way i would go on this contingency issue, but i think the rationale that our budget analyst has laid out is pretty compelling. so aside from allowing the department flexibility, is there any other compelling reason? it is not as that there is no flexibility. there is still a contingency that allows for the department and the contract to move forward. is there any other reason or rationale that we would have to sort of not take the budget analyst recommendation? >> no, it is logical. it is just that we have been doing the same methodology since 2003, and it has worked. it has allowed us the flexibility of the full range.

when something does come up that is larger, like the recent closure of a program, we can manage that. but i get it. it is just that -- yeah. supervisor chu: ok, thank you. it sounds like we still have a fairly large contingency for these two areas, correct? ok. colleagues, we have a recommendation from the budget analyst on item number six to reduce the contingency by 1.166252. can we take that recommendation? we will do that without objection. on item 7, we have a recommendation to reduce the contingency by $5,388,999. do we have consensus to do that as well? we will do that without objection. items number 6 and 7, moving those two items forward with recommendations as amended. to items 8 and 9, to move those forward as is with a recommendation. do we have that motion? we can do that without

objection. thank you. item 10, please. >> item number 10, hearing to consider release of reserved funds for the san francisco police department in the amount of $7,212,750 to fund the cops hiring recovery program. supervisor chu: thank you very much. we have the police department with us on this item. >> good morning, supervisors, ladies and gentlemen, i am the dubie chief from the administration bureau. with me today -- as a deputy chief from the administration bureau. we have two captains with us. on behalf of chief suhr, we're requesting the release of the department of justice cops in grant funds awarded to us in san francisco in 2009. this would be the fourth and final installment that was used to hire 50 police officers to help our continuing efforts in community policing.

all 50 officers have been hired and the funds should be a policeman did in up -- suspended in approximately 19 months. the project will end in 2013 -- the funds should be fully spent in approximately 19 months. thank you. supervisor kim: thank you. could you talk a little bit more about how this is able to increase community policing capacity and what the specific outcomes were of this grant? >> as you know, we're going through an enormous phase of attrition. for example, the month of may and june, we will lose 31 officers. this 50 officers helps us remain at staffing levels to continue foot beats, help us with efforts in community policing boards at each of the 10 district station, helps put officers at community meetings, funding several -- staffing several of the projects

at all the district stations. we have got several examples that the captain can talk about, including great efforts and the tenderloin station in helping children and seniors did to and from locations in the tenderloin -- and get to and from locations in the tenderloin to other districts. i will ask the captain to come up to expand on it. >> good morning, supervisors. yasser from the community relations unit. i will give you a double-i am from the community relations unit. i will give you a snapshot from the area community policing. we have the fishing program. every year, we take 1500 kids out to san francisco bay and go fishing and the deep sea. it is a 10-week program. it is a public-private

partnership. we also had the wilderness program. we take kids from san francisco school district to angel island for a daylong cams and hikes to the presidio. we have river rafting at the american river, sailing and pie act -- kayaking in the san francisco bay. we're partners with operation dreamed. all through the year, we have a project that is going on. for instance, during christmas season, we're with the forty- niners for a toy drive. this past year, we had 3000 children participate. during thanksgiving, we have a turkey giveaway. over 700 families benefited from this giveaway. recently, we had our easter egg hunt at garfield park. we're currently working on summer camp programs and field trips. recently, chief suhr had a basketball tournament. he partnered with the university

of san francisco. there were 15 teams of boys and girls who participated. we provided lunch for all the kids, and we were treated by the university basketball players during lunch time. they did a three-point shooter out with the chief and several students who participated in this tournament. there were police officers who also participated, and it was organized on a volunteer basis. right now, we're working on the youth work program. 125 kids vying for jobs and mentoring this summer. and this is going to be involving fortune 500 companies such as google, zynga, and wells fargo. we're partnering with the sheriff's department for a garden program for these kids and internships in the police stations. the chief has been going to numerous high schools in this

city. he has been talking to at risk youth who are on its defense on whether to continue or quit -- who are on the fence on whether to continue or quit school. he emphasizes the importance of staying in school. he brings in a special speakers who work for the city and graduated with a high school education and have flourished in their careers in the various departments of the city. i have numerous, numerous programs, and i could go on and on if you like. supervisor chu: no, thank you. that was helpful to learn about the community programs that sfpd has, particularly with young people. the hiring program, does this have officers attend community meetings and the district boards as well? >> yes, it does. another project is the citizens

police advisory boards. each police station has a citizen's police advisory board. we have residents from that district meet with the captain. the captain meets monthly in a general community meeting. we also have various forums, such as the business forum, asian pacific islander forum, african-american form, arab- american forum, latino forum, and a faith based forum where we can keep an open dialogue and have two-way communication between the police department and the various communities we serve. supervisor chu: i do appreciate that. particularly in the tenderloin station, the community outrage that happens there is incredible. i think the quality of the relationships that the foot beat officers all the way up to the captain have with the residence is wonderful to see. i think we have a strong relationship there. guyandotte -- i am not sure how

that is replicated throughout the city. but as important as it is for the chief to be out there, it is important for the officers that what the beat to also be able to go on these trips with the youth in the committees and attend the meetings because their the ones walking. it increases the trust and the sharing of information that makes the neighborhood safer, and it helps those officers also develop a good perspective of the neighborhood. >> thank you, supervisor. supervisor chu: thank you, supervisor kim. why don't we go to the budget analyst report? >> madam chair, members of the committee, supervisor farrell, on the bottom of page three, we point out that a total of nine milk -- 9,000,003 and $60,000 of the previously released funds

leaves a value of about $7.2 million bid of the police department has accounted for were they spend that $7.2 million when they release it, and that accounts for a projected budget shortfall. $3.6 million in 2012-2013. the remainder in 2013-2014. as you know, there is a requirement of general fund monies due, for one year after the grant has expired, and in accounting of the general fund money shows on page 5 of our report of about a little over $7 million in projected general fund monies to be expended in connection with this grant. we recommend you approve the release of that amount in cops in grant funds on reserve. supervisor chu: thank you very much. are there members of the public who wish to speak on item number 10?

seeing none, public comment is closed. ok, we have got a motion to release the reserves. before we do, i ask that the department also follow up -- you talk a lot about community policing and that it is also present in the teravelle district. a lot of our neighborhoods have talked didn't -- have talked about the fact that they do not see the presence. i hear it but do not see it. i would like to know what your real plans are for community policing. if you're going to be implementing community policing, which we think works, it should be in every place that is appropriate. many of our neighborhood commercial areas are appropriate for that. >> yes. supervisor chu: thank you. we can take a motion to release reserves, and we will do that without objection. thank you. item 11. >> item 11, ordinance amending the san francisco administrative code to extend the fell rebate program for two additional years, through june 30, 2014,

and increase the total amount of available funds to $2 million for film rebates during that time. supervisor chu: thank you very much. i should have mentioned this, we're joined by supervisor farrell, who has been patiently awaiting his item here and brings this film rebid extension funding to us. would you like to make a few opening comments? supervisor farrell: thank you for having me here today. today we're talking about the film rebate program extension that i introduced a number of weeks ago at the full board of supervisors. and suzanne is here from the film commission, and she's going to be speaking. but to refresh your memories, this legislation. -- essentially extends the current film rebate program through june 30, 2014. it is currently set to expire on june 30 of this year. it appropriates up to $2 million

in additional funds for the rebate program. the program dates back to 2006, was prompted by a report commissioned by our film commission here in san francisco neshoba employment in motion picture and video production in san francisco had dropped by nearly 50% from 2000 to 2006. it revealed that the city's high cost of production was its greatest competitive weakness. since the program was enacted in 2006, approximately 1,135 san francisco residents have been employed, bringing over $12.5 million in wages to their households. in 2010-2011, film production spent over $56 million here in san francisco on a hotel, laborers, supplies, and other services. i will talk more in detail about it, but i wanted to introduce it briefly. i will ask, through the chair, suzanne robinson, executive director of the film commission, to come up and speak about the

program itself. >> thank you. could we turn on the powerpoint presentation? thank you. my new film office coordinator is going to help me with the powerpoint. thank you, supervisors, for having me speak today. as executive director of the san francisco film commission, i strongly support the extension of the rebate program. i wanted to start by giving you a little bit of background about the state of the film industry today. gone are the days when productions would shoot wherever the script was written for it. now productions but whoever they can find the best incentives. -- productions go wherever they can find the best incentives. this is because of videos and on demand services combined with the economy. it has affected their bottom line. so they cannot count on dvd cells or theater tickets as a

steady source of revenue, and they're going to were the confine the largest rebate to make the best cost-effective decisions. productions are being taken away from california, and hence san francisco, by large incentives offered on the state level as well as internationally. states like new york, louisiana, new mexico, georgia, and illinois offer large incentives to productions that should there, with incentives as high as 30% to 40% in tax credits. according to the motion to adjourn association, studio feature film production in california has dropped 40% in it -- since -- has dropped 40%. this lores production away from california and san francisco, it is and essential to have an incentive to offer producers to entice them to consider filming here. our rebate program is just that. for productions that can combine our rebate program with the california film estate tax

incentive, which is a 20% tax credit, being able to combine that incentive with our rebate program makes it much more cost effective and much more appealing for them to shoot here. without the rebate program, most of the rebated productions shot here since 2006 would have gone elsewhere, wherever they could get the best deal. feedback from filmmakers indicate that our rebate program has been a key factor in their choosing san francisco as a location for their productions. according to dean jones, the co- producer of a show was shot here in 2000 and two dozen, a pilot cannot have happened in san francisco without the rebate program. the show employed over 125 people every week for a year equality in wages with thousands of dollars spent every day with local vendors. each episode qualified for a $30,000 to $50,000 rebate from the city. the series would have gone to another city without this type

of support offered through the rebate program. the exhibit of producer of an hbo show city center in rebate is a key factor in bringing mlb to the bay area. the rebate combines the california state tax incentive, makes san francisco a real drop for filming. it is particularly helpful for midsize budget films where every dollar counts. when choosing between shooting locations, the extra $600,000 really helps san francisco to edge out the competition. lastly, a producer of another show that was shot here last spring said had it not been for the rebate program, we would have likely shot in l.a. and kunduz san francisco for no more than three to five days. the program was key to our production to reduce san francisco for the full run of production in principal photography, a total of four months. these three productions hired

90% local crew and the local actors, local background, so they were supportive of our san francisco work force. since its inception in 2006, the scene in the san francisco rebate program has been used by one television series in six feature-length films. one and title animation project by disney, which is currently in san francisco for three years. it has applied and been approved to receive a rebate. the disney production has not submitted any fees yet to be rebated at this time. as you can see, four of those related productions participating in the program since january 2011. this increase in rebate production is in part due to the increased visibility of the scene in the san francisco rebate program, which our office has been promoting strongly through attendance at trade shows, one-on-one meetings with producers and studios, and placing targeted ads in trade papers, making the rebate much

more visible. we're also currently seeing a lot of press mentioning our rebate programs with the impending release of the hbo movie. so the word is out and the interest is increasing. as you can see, we have had recent coverage in the "l.a. times" and the hollywood reporter and a location died. our rebate program was the topic of conversation at a recent california film commission brunch for more than 200 producers. a panel spoke about shooting the hbo film in san francisco. that was a great meeting to be at, because those producers were taking down notes and coming up to me afterwards and arresting more about the program. we got a lot of coverage from that one breakfast. the combination of this recent press and positive reaction at the breakfast is creating buzz about san francisco and our rebate program. i expect this to translate into

more production shooting here in the near future. overall, i feel the scene in san francisco rebate program has been a great success. since 2006, the city has rebated a little more than $1.5 million. those productions paid more than $12 million in wages, employed almost 4,000 when you add in the background actors, and had a direct local spend of more than $40 million. i think these numbers show that this estimate we're making with the rebate program is paying off. already for the coming year, i know of two feature films which plan to apply for the rebate program, including the woody allen film that will be shooting here hopefully in august, provided this continues. and a third which plans to apply before the end of 2012 but they're able to get the california state tax incentives. and they would be probably starting production in december. the momentum for filming in san

francisco is on the rise, now that protections are aware of our rebate program. it is isn't so that we extend the program to continue to attract these productions -- it is is essential that we extend the program. it will provide jobs for local group, actors, and we will have these large amounts of direct spend coming into the economy. i respectfully ask you to extend their rebate program for another two years. thank you. the have any questions for me? -- and do you have any questions for me? [applause] supervisor chu: thank you. why don't we go to the budget analyst report? then we'll open it up for public comment. >> on the bottom of page two of our report, we point out that as shown in table 1, page 3 of our report, that of the previous appropriation by the board of supervisors, it shows the rebids

for production companies. a balance of $260,179 for additional rebates. on page four of our report, we point out that the balance of $2,260,179 would be available for additional rebates to qualify filming and television production to but is it the board of supervisors appropriates the additional $2 specify. we consider approval of this to be a policy matter for the board of supervisors. supervisor chu: thank you. before we go to public comment, i believe supervisor farrell has a few comments to make. supervisor farrell: yes, three amendments that are administrative. one to clarify the this program was effective july 1, 2012, simply a date issue. as well in terms of making sure

that we were clarifying, a clarification about the dollar amount. on the title of the ordinance itself. we're going to say up to $2 million, understanding we are in the middle of the budget season. that will be included in our budget going forward. on page 3, line 22 -- exceed $2 million by june 30, 2014, and insert subject to annual appropriation. supervisor chu: thank you. it's open this up for public comment. i have a few speaker cards. eric, catherine, dan, debbie, jeff, lauren, and lydia.

>> thank you. my name. eric, -- my name is eric, a third-generation san francisco movie teamster drivers. i spoke the last time this came up for approval. it is a huge difference. we had a "trauma" and the others. we just finished a "maverick." i was the transportation person on the hbo movie. we probably had 20 to 25 of our men and women, members that were able to work. it is huge. it is a blue-collar job that pays really well. it enabled my family to send me to college. it is something we do not want to lose. i hope you do not think it is like a giveaway for hollywood. it is actually a gift for us. also, it pays huge dividends for the city. you never see a movie that is

negative about san francisco. it is like a promotion that never stops giving into the future. it will bring tourism. we are a city that is great for [applause] supervisor chu: if i could ask folks to hold their possibly could get through public comment. next speaker. >> it good afternoon. i'm with the travel association and from all indications, this program has been highly successful in stimulating the local economy and creating jobs. in addition to direct jobs, this program has a significant impact on attracting tourists to the city in a number of ways. first, the production crews support the hospitality industries like lodging, restaurants, caterers, rental cars just to name a few.

but equally important, the scenes ever filmed here are basically free advertising. they create aspirations throughout the world to come visit our beautiful city and doing so, attract visitors that support our local economy and help create jobs. for those reasons, we hope that and strongly urge you to support this extension. >> i am a location manager working here in the san francisco area for 27 years. i wanted to speak directly to the financial impact that network television series can have on san francisco. i worked this season on ",." i was asked to gather a one page briefing forth