doesn't dollars. closed session reduct for may 22, -- read out for may 22, the board approved a contract of one assistant principal. in existing litigation matters, gw vs. sfusd, case 2012030858. we authorized a settlement of one doesn't $560 -- $1,560. to provide two 30 minute sessions per month. in a matter, the board by a vote 7 of -- 5 ayes and 2 absents

latourette is an amount of $3,102.70. meeting adjourned. >> 01 more. >> i am side to end on an unhappy note. i would like to the knowledge the passing of a louis perez, a close friend of mine. i served with her. the first latina president of csba. she served on the sacramento city school board. she was the founder of the community resources project. a major multi service agency serving for immigrant and farmworker families. she died last week. we will miss her. i will. >> thank you.

meeting adjourned.

supervisor chu: good morning. welcome to the budget and finance committee meeting. i am joined by supervisor @ avalos, vice chair, supervisor cohen, supervisor kim. supervisor wiener will be joining us shortly. victor young is the clerk. do you have any announcements for us? >> please silence all cell phones and electra devices. -- and electronic devices. supervisor chu: colleagues, if

it is ok, we have been #abbottabad will be going forward with the enterprise department budgets, but we have a quick hearing on the update from the conversation we have had around the conversations of the office of early how could education. i want to call that first because it will be relatively quick. item four. >> item 4. hearing on the creation of an office of early childhood education (ece), consolidating ece functions of various city departments such as the department of children, youth, and families, department of public health, first five commission, and human services agency. supervisor chu: thank you. supervisor avalos. supervisor avalos: thank you for holding this hearing on the early end of the session today. i am very excited about the results and the work that has been going on in the mayor's office, police departments together on the creation of an independent office of early care and education.

we have, from the mayor's office, ms. mendoza. i want to thank her for her work and for renee willett for bringing in departments that together. we look forward to hearing your report. >> good morning, supervisors. thank you for allowing us to bring you up-to-date on the progress we have been making with regards to the office of early care and education. we met once since last sunday sauce and we have been moving the ball down the road. excited to report back on a few things that we shared with you last time. the next as we were focusing in on were the governance structure, staffing in the office, and then the community outreach in engagement plan. through the work of staff, we

have been very cooperative and supportive and thoughtful about what this office should look like, thinking about the need for it to be an independent office. they have been doing a lot of shared thought and joint planning on this. it has been really great working with them. i want to give them a quick check out. with regard to the governance structure, we have to think about what kind of staffing positions were currently available, and what we wanted in this independent office in order for it to encompass all of the three priorities that each division, -- each department has been working on. the way that we are going to be proposing this is having the mayor's office be the overarching office that oversees this independent office. the governance body would consist of the department heads -- actually, we're pushing for

it to be the department heads and not the designee. we think it is extremely important for all of the departments to continue to support this office. we would have the department had from dcyf, 1st 5, hsa, and representative from the mayor's office, and the superintendent from sf ust. that would be the governing body and this would be viewed group that would review would be the group that is responsible for -- would be the group that is responsible for making sure the final decisions are done. supervisor avalos has shared with you a rough draft of that structure sobecause it can the complex. from the government body, we would have a new director of this independent office.

three policy planners, community engagement. we would have five staff members doing the work and then there would be an assistant for the director. all of those positions, you should know, are coming from the departments. all of the wrecks are being supported and identified, supported by the department heads. we have gone as far as loading the changes into the mayor's budget. we have gotten approval from all three department heads to move those positions over. that is huge. the funding piece of it, our goal was to come up revenue neutral, so there was not going to be any movement around that.

all three departments will share in the allocation for the director so that it is not coming just from one department. i do also want to note, with this independent office, there is some real wonderful possibility about private funding to support the efforts of this office. i just wanted to note that. the restructuring of this is going to help people be more targeted about the investment they make in this work. that would be the governance a piece of it. the advisory council is -- we were having good discussions about this. the way the current advisory peace fits -- piece fits, there is cpac, cac, and other organizations.

some of it is over the department, some is advisory within. we wanted to find a way to bring all that together. cpac was a very good body for us to consider. we are taking the cpac advisory under advisement. there is a little bit over 22 on that, so we do not know what that will look like that -- left over on that, so we do not know what that will look like. we want to make sure that this is representative of the larger work we're doing and not just representative on who they have incurred the advising. supervisor avalos: i appreciate that. one of the conundrums i saw was that we had these different commissions and bodies that need to play a role still, but how did they do that with the new office? moving in this direction of cpac playing that role and fitting in parts of all the others is a

good direction, i believe. >> and this would certainly not diminish the work, the authority of the ages 8 and first -- hsa and first five. they can really advise across the board. the next up around that is working with cpac's staff person to identify what the current structure is. we may be coming back to you, if there are any changes, anything that we need to do legislatively, to ensure that cpac is representing this independent office clearly. we are working on that piece of it. that will be really helpful ones we can sort that out. we are meeting with the school districts between now and the 18th, which is when hsa will be presenting their budget to you. we have got that in the works.

it is graduation this whole week, so everybody is offline over at the school district. as soon as they are back, we will work with them to work on their calendar to fold them into this full peace. the community outreach and engagement plan will depend primarily on the outcome of this overall plan. what we want to be able to do is to goad jointly to the various commissions to share with them what the plan is and not have the individual of that department go solo to their commission, to show that there is unified voice in all of this. we will be doing quite a few commission meetings to talk to the various advisory and commissions and then the mayor, with your side by side work, supervisor at avalos, we would like to host an overall stakeholder conversation.

for us, our next question is, at what point do we want to have the actual proposal in hand to present to you so that we can start thinking about commission conversations and stakeholder conversations? ours is more of an xtech. high and this really thrilled that we have been able to move along as solidly as we have. -- more of a next step. they have been a great group, recognizing more of the commonality that the differences they have. i also wanted to thank my partner in crime and all of this, renee willett, help me put this together and work with the department heads. supervisor avalos: thank you. i want to thank many of you for

your work and the school district as well, for coming together, for being a flexible, being able to put commonalities forward and some of the differences aside to come up with a plan. i expect the mayor's office will have a transfer of functions as part of this budget, talking about a shift of positions. those will probably be heard, i suspect with the hsa, dcyf budget. i would continue this to the call of the chair and then dispose of it on that day when we actually discussed the transfer function. >> that would be really great. we will figure that out with our budget director. just so you know, the generosity of all of the departments, we have two positions coming from dcyf, one of fromfirst five, and one from hsa. they have been really great

about identify how the work needs to get done and who needs to get it done. lastly, i was reluctant to bring this up, but i want to note, we have gone as far as a thinking about the location of this office. all of the back-office work will be provided by hsa. questions about physically if they need to be close to those back-office functions or if they could be elsewhere. and we also want to be able to provide them a nice rent-a free facility that the city can support. 1650 mission has come up. maybe that is a first-year consideration and then may be potentially have them move over to fox plaza after that. we are thinking about that next part of the work as well. supervisor avalos: we can get an update on that. thank you. >> if there are no questions. supervisor chu: thank you.

is there anyone from the public that would like to comment on this item? >> good morning, budget and finance. is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. i am picking up good vibrations in early education. i am picking a good vibrations. good vibrations and early education. i am picking up good vibrations in the early education maybe you will say some and you will have a big money some and you are not dumb you are picking a good vibrations in the early education

good, good, good vibrations and early education supervisor chu: thank you. other members of the public that wish to comment on item 4? seeing none, public comment is closed. supervisor at the lows, when you -- could you make a motion? supervisor avalos: it would be nice to have this continue to the call of the chair supervisor chu: we have a motion to continue. i want to thank everyone involved in this process. i think it is very upper river for hsa to provide the back- office functions for it. we will >> item #1 -- proposed annual appropriation ordnance for a

select the department's for the city and county as of may 2012 for the fiscal year ending june 30, at 2013 and june 30, 2014. item #2, proposed annual salary ordinance for selected departments, ending june 30, 2013 and june 30, 2014. item #3, services previously approved can be performed by private contractor for a lower- cost than similar work performed by city and county employees for the fiscal years of 2012 and 2013 and fiscal years 2013 and 2014. employee parking management, admission booth, security comments a shuttle bus service, paratransit, security, parking citation and collection, meager

collection including accounting, telling, transit shelter maintenance services and the public utilities commission. supervisor chu: all three of these are related to but it's coming up before us. the rent board, the permanent appeals board, they will be speaking about their budget tomorrow. tomorrow, we'll have the public tildes commission and the department of the environment. the first item is an appropriations ordnance for those departments. number two is the salary component, basically the position authorities for those departments, and item number three is for all existing proposition j's so that there are no new ones. this is just carrying out what we're doing at the moment. just for reference, the department's we're first going to the department presentation and then go to the root report

by mr. rose, and then the public comment is going to be heard on a different day, not today. we have asked each of the departments to talk about five major categories, so i hope they will address some today. we want to hear about the major revenue and expenditure trends. the most important parts of this year's budget -- this is the first of a two-year budgeting process we rolled out for the entire city. this is something new that we will all be learning from in this year's process. to, we want the department to talk about capital needs that will help to inform us about what we can expect with your budget's going forward. we want to know about any changes, reorganizations are things we need to know about happening in your departments. to other areas that i think many of us have shared interests in for the departments to highlight to bring these topics to the

front, the issue of jobs and the economy. how is it that apartments are helping to make sure they are improving the economy going forward? where the summer youth opportunities the departments are helping to contributes this year? we also talk about access for all communities, in particular, language access, making sure we're serving all of our residents, regardless of their ability to communicate in english. i want to hear from apartments to hear about what they're doing to provide linguistically sensitive services. this is something that never really gets are brought forward, that would be an opportune time to address these issues so we can know we're doing as a city to make sure that does happen. with that, i would like to call first keith howard and see if the majors -- seek the mayor's budget office wanted to provide any opening remarks. >> thank you. i'm kate howard, the lead -- the

mayor's budget director. you had on many of the key points regarding these budgets. we will be hearing 7 enterprise budget department, the first time we will have to year budgets for the city and for major enterprise department. those budgets will not come back before you. this is the opportunity for a full two-year review of these targets. these investments reflect significant job creation. we expect the infrastructure and capital investments you will see as part of these budgets will be over $1 billion and create nearly 9000 new jobs as a result. finally, we're putting the final touches on our budget that will come before you in june, which is the remaining departments for

the city. we look forward to working with you and thank you to the budget analysts. supervisor chu: why don't we begin with the first of the departments, the san francisco airport. >> i'm with the airport directors. i would like to highlight our budget and some of the topics on how the airport is doing. our traffic is booming right now. we are up 11% year over year for the last four months. this is the strongest growth we have seen in 25 years. we will break record passenger numbers, coming in around 42 million passengers for the year, placing a set number eight in the u.s. for the number of passengers. -- placing us at no. 8. we will see services starting to paris and we have new nonstop service to washington national recently started by united and virgin america. that's the first time we will

have nonstop service to those airports. we have a significant capital investments, well over $2 billion in the next 10 years. terminal no. 2 has set the standard for customer service and environmental standards for our airport and we think industry-wide. we will be carrying through similar improvements in terminal 3 which will come on line in the next 18 months. we will undertake a large program in terminal one beginning in 2014 and that will be completed over a five-year timeframe. the $2.5 billion in spending will create almost 12,000 jobs. in addition to those projects, we will start work on a new air traffic control tower next month. we are undertaking runway safety area improvements as mandated by the faa at a cost of about $220 million. we are committed to making sure

the spending on the capital side and operating side benefits san franciscans in terms of job creation, contract opportunities. we are meeting the hiring goals and requirements and achieving a high level of local participation in the construction area. 50% of all construction jobs, 43% of concession leases to local businesses, and all lot of new job creation from concessions as well. we are holding the line, our budget, even with the passenger growth. for 12 and 13, we're looking at a 1% growth in employee count, we have about 1500 total employees today and in 13-14, our budget request is for an additional three new operating positions. we continue to see productivity improvements from our staff

overtime. over the last seven years, we've seen almost a 30% growth in passenger traffic but only 6% growth in employee count. the profit payment which might be thought of as a dividend to the city represents 15% of our total concession revenue. that will go to $32.9 million next year and $35.7 million in 2014. that is driven by passenger traffic growth as well as improved concessions sales and we continue to rank as one of the top three airports in concession sales on a per passenger basis. we have seen very strong growth in parking revenue, almost $25 million annual growth in parking revenue and strong growth in rental car revenue as well.

the concession performance, the growth in passenger traffic allows us to keep airline costs low. we're very competitive with the oakland and san jose airports. with the fees we charge the airlines, we are actually lower compared to our peer group, international gateway airports like boston, miami, and los angeles. are on the low side compared to those airports. some of the key programs to highlight -- we do not have any major new programs in the budget. we have a big increase to reflect the potential of a new san mateo county parking tax. voters will decide on that the first tuesday in june. that could have an impact of $5.7 million. we have $4.2 million budgeted for security blessing. united is growing quickly, they will be adding 40 new daily

flights this summer. we will allow them to operate from boarding area be in terminal one in the old continental area. the airport, under an agreement with united, will operate from terminal 3 in the international terminal to boarding area b. united will be paying us $11 million in rent, which is profitable for the airport. we are now responsible for staffing the exit lanes from all security checkpoints. in the past, the swiss retsa -- this was a tsa responsibility. the big challenges are building for growth. our traffic growth is occurring much faster than we anticipated. we're moving very quickly on getting improvements in place in terminal 3 and getting boarding area e