if we're going to sit here and handled budgetary matters, i think that this kind of hard to believe, too. thank you. supervisor farrell: any other members of the public who wish to speak? public comment is closed. thank you for being here. the marina yacht harbor is a treasure. as we think about the america's cup coming forward this year, this project will burly showcase our waterfront in an extremely positive way. i want to thank rec and park. colleagues, can we have a motion to move this forward? so moved. do we have any other items? >> meeting is adjourned.

>> you can see that it is amazing. you can hear that it is refreshing. you reach for it because it is irresistible. and the taste. simply delicious. san francisco tap water. it engages the senses. 311 is an important resource for all san franciscans. should

>> thank you. good morning, everyone. thank you very much. as many of you know, i'm a person that doesn't like a whole lot of drama. but i do want to make sure that we take this opportunity to enjoy. this budget is one that's important to all of us, it certainly is one to me and one that reflects a lot of great work.

first of all, let me thank everybody for coming this morning. certainly board president david chiu for helping me co-host this and carmen chu and her work with us already started and will help guide us, along with board president david chiu on all of the hearings that the rest of the board will have. i want to thank each and every member of the board of supervisors as well. you've been weighing in and we've been creating a different dialogue on the front end to make sure that all of our constituents know what we're doing, more transparent, and ultimately where our values are. i also want a big shout-out and thanks to everybody in this room. there's a lot of department heads and commissions and labor representatives and representatives from our non-profits and community members as well. thank you for engaging us in this really dedicated six-month process. i want to go back to the very first neighborhood budget

hearing that we held about almost six months ago. it was one where i was asked at the very beginning, what does the budget mean to you? and i wasn't the only one. there were several supervisors that were there, and we all said pretty much the same thing. it really is a reflection of our values as a city and it's one that we want to work hard at, but ultimately it is who we are and it's a combined effort here, a collaborative effort. so it still is that way, and you'll see from the highlights that we'll be announcing today, as reflected in this budget, it still is a reflection of all of our values. so good morning, everybody. thank you for joining me here today. again, thank you for board president chiu and budget chair carmen chu and all the others that i've identified here today. i also want to say at the

outset this budget reflects countless hours of work. a lot of work behind the scenes. in addition to all the neighborhood budget meetings that we had, there were numerous, numerous staff meetings. kate howard's done a wonderful job with her staff. they've met with all of the different departments -- [applause] this is her first full year budget working with us and she's done a great job and her staff has done a great job. it isn't just putting numbers together, it's listening to each of the finance personnel from each department, it is engaging in the numerous meetings that we have with community, it's engaging with staff of the various supervisors, the non-profits. we had special meetings help,

it was health and human services and housing and homeless advocates and others. she was there and her staff was there at every turn making sure that we listened and it reflected in both number-crunching and challenging what the priorities are and so forth. also want to give a shout-out to steve cava. steve, wonderful with all your work. [applause] it's not easy. you and micki callahan, it's really not easy at all to face a year when there's 27 contracts open, trying to face everybody in the room, trying to make sure that we can make promises we can keep. having been a former employees relations director, i know that keeping promises with our labor representative is critical to building trust and to make sure that we carry out and we honor

all that they do every single day in carrying out services for us. to all the department heads and your wonderful staffs, thank you. i also want to make sure i acknowledge all of our labor unions, all of our representatives. for years you've worked with us and sacrificed and bemoaned the bad budget years, but you've stepped up in every occasion. for the department heads and non-department heads who we've shared challenges with, thank you for sacrificing so many years. and now we get to, i think, a budget that has some relatively good news and a good foundation. this year we begin the hard work of presenting the city's first two-year budget. and we began that year with a $263 million deficit for our general fund. and then the coming year, the second year of $375 million

shortfall. that's what we faced at the very beginning. but because of the fiscal discipline that we put in process, a discipline that's reflected in the great work of ben rose enfield and his staff and the controller's office that keeps reminding me of the credit ratings of our city and that we must make sure that we do things in a very solid financial way, we made investments in job creation and we made commitments to reform with that guidance. now san francisco's economy is recovering and reserves are going. in fact, during the last nine months the controller has reported that our revenues were $172 million more than projected. this is good news. this is good news, but it did not come without commitments, without sacrifice by everybody and all the groups represented in this room. i would like to again thank owe employee unions for working

with us to find a common goal, saving more than $28 million in your contract negotiations with us. i'm happy to report that i'm presenting a responsible and balanced two-year budget. while we spare the city the deep cuts we've experienced over the last several years and one that i present to you in a san francisco economy that's recovering, in this budget you will see investments. investments that ensure that people who live, work and visit our city feel safe, investments that protect our social safety net that supports seniors and youth, low-income and working-class families, investments that support our neighborhoods, our infrastructure and our commercial corridors. this budget reflects a lot of collaboration and partnership with our san francisco community. one thing we agreed on early was that in a time of state and federal cuts, protecting our social safety net is more

important than ever, and in this budget i've rejected all service reductions in our health department and human service agencies. [applause] s i've included full restoration of federal cuts to programs and services that serve people with h.i.v. and aids. the loss of redevelopment has been a severe blow to our city, especially for this first street corridor. so we will invest in economic initiatives in the heart of bayview to stabilize businesses and attract new ones. [applause] we will also continue our

investment in central market and especially sixth street, where the elimination of redevelopment has left a gap in services. with our community partners and including the very spirited arts community that's been so wonderful in helping us lead that effort, we'll support businesses in that sector, attract new ones, and keep the area clean and safe. we will also invest in the youth of sfsk and in their education. i will propose releasing the $6 million in rainy day funds to support our public schools, to offset the state's deep cuts to education. [applause] most importantly in this budget we are putting san franciscans back to work. you've heard me say on many occasions recently our unemployment rate dropped from 9.6% in early 2011 to 7.4% today, our lowest since 2008. [applause]

we, as a city, along with our business partners and every neighborhood, we created 22,500 net new jobs in san francisco in just the last year. [applause] that's good. that is really good, but we need to do more. with this budget we are continuing to invest in strategies and incentivized job creation, training, and place our residents for their jobs for the 21st sent re. we are creating a climate that gives entrepreneurs and investors confidence in our city, allowing them to work with us to innovate, grow and create jobs, whether they are in neighborhoods, small businesses or tech start-up or a thriving global headquarters. in neighborhoods, we are more than doubling grants available to small businesses, and we are including $4 million for neighborhood commercial districts through our new

invest in neighborhood strategy. that includes job squad and the recapitalize the small business revolving loan fund. we are bringing staal to the neighborhoods -- city hall to the neighborhoods where it belongs, to support small businesses. my proposed budget includes $4 million in smart capital investments and $441 million in smart capital investments in our city's 10-year capital plan to improve and invest in the city's infrastructure. [applause] over the next two years we'll invest in and improve or water system and continue investing in our waterfront. we will also continue to invest in our parks. and i've joined the members of the board of supervisors to introduce $195 million bond measure to keep our parks clean

and safe. [applause] all told, over the next two years enterprise departments will spend more than -- will actually support more than 8,700 jobs in san francisco by infusing $1.3 billion into our local economy. as our economy grows and as we add jobs, we must redouble our efforts to expand housing opportunities and build more housing for people at every income level. i get it. i know there's anxiety out there, because rents are start together creep up again in every neighborhood as our economy recovers. but the answer to scarce housing and rising rents is not to stop growing our economy or creating jobs. that's why we proposed the housing trust fund measure for this november, to create a permanent source of housing and revenue to fund the production

of housing at every level of our economic spectrum. i am pleased to share with you, too, that my budget also includes a six-year police and fire hiring plan. [applause] this hiring plan for police and fire will train the next generation of san francisco public safety personnel. we are planning for anticipated retirement, reducing overtime and making sure our public safety departments are appropriately stand. mow, of course, this submission of the bubt is not the end of the process. i've looked forward to working with the full board to ensure that our residents receive quality services while we balance the budget and continue in our economic recovery. i again want to recognize supervisor carmen chu and the board of supervisors for their

steadfast leadership and commitment to building a collaborative process, backed up with our board president, david chiu. thank you steve cava, chief of staff, thank you budget office, director kate howard, and to best rosenfeld, thank you to you and your wonderful staff and i will advance, thank you harvey rose, for his work he'll be doing. this is very less dramatic presentation, i know that. but all the work that's been done in a very comprehensive way, and i want you to know that the values of the city are intact, we are moving forward, and we are investing in all of our neighbors in san francisco. thank you very much. [applause]

ok, back to work. >> this is the most contemporary art show in the history of the museum.

let me give you some numbers. 31 artists across the 50 nations. 60 monumental works, the largest of which is behind me. this is a gift to all the people in our beloved city of san francisco. a gift to all the visitors near and far. let me give you our honorable mayor of san francisco. [applause] >> thank you for being here today. this month is a celebration of asian-american heritage. i wanted to thank our asian art museum, all of its staff, the director. the board of directors.

not just parts in san francisco, but asian-american art throughout the world. this is another example of something that i told my friends, if you see some people walking around here, they might be looking for a red lotus. i do not think they knew what i was talking about. i want to welcome this wonderful piece of art. the artist is here today to join with us. it is a reflection of what our asian art museum is contributing to the dialogue around art itself. a year ago, we had the three heads and the 6 armi buddha that

was another example of international art. this lotus suggest to you the feeling of international modern art. it is one thing the that that our asian art museum begins this month with their exhibition of -- what is the spots going on in the rest of the world? i know the asian art museum did a great job with the historic artifacts. but they wanted to be much more than that. they want to contribute to what is going on in the world today. what are the international artists thinking about? what message are they sending to the rest of the world? what is going on in their mind across the world that would perhaps contribute to our own

thoughts and values? this is an example of what i think will be an exciting contribution for years to come. what else can we expect from the rest of the world's throughout our asian counterparts in the far east? i have been happy to help cris andhristen -- help christen this effort. activities that will happen in the month of may. the street heritage festival will happen right here on the street beginning this saturday, along with so many other activities. the rest of the asian communities in san francisco want to help signify and reflect.

this is a wonderful city. part of its beauty is inheritance of being a gateway to all the different viewpoints that happened around the world. i want to thank all of our artists for helping share that with us. through their various art forms and participate through this movement of more voices, more viewpoints, more languages, more different cultures, contributing to the diverse views that we want to have in our city. that is how we established ourselves as an international gateway of the viewpoints of innovation around the world. when you see this, and i hope you come here at night because it is not just the beauty in the daytime, its contribution to what we want to see happen in the evenings as well as for all of our residents and neighbors. this is going to liven the

discussion about the contributions of art to our daily lives. thank you for being here. thank you for helping us chr isten this beautiful piece of art.

>> ok. call the meeting to order. >> [roll call] item 2. approval of minutes for the may 8, 2012 meeting. >> so moved. >> seconded. the approval? all in favor? >> item three. public comment on executive session. >> is there any public comment on this item?

>> executive session. conference with legal counsel and real property negotiator. >> i move that we reconvene in open session. all in favor? i move that will not disclose anything discussed in executive session. >> second. >> all in favor? aye. i would like to move public comment on all items on today's agenda be limited to two minutes each. >> second. >> all in favor? aye. the motion has been passed, thank you. >> please be advised that the ringing of and use of cell phones, pagers and similar sound-producing electronic devices are prohibited at this meeting. please be advised that the chair may order the removal from the meeting room of any person(s) responsible for the ringing of or use of a cell phone, pager, or other similar sound-producing electronic device. please be advised that a member

of the public has up to two minutes to make pertinent public comments on each agenda item unless the port commission adopts a shorter period on any item. commissioners, with your permission, item 9b will be taken out of order and will be heard first. >> it is agreed to. >> 7a, executive director of report. >> thank you for joining us today. i have just a few items on the executive director's report. the first is with respect to the grand celebration of the 75th anniversary of the golden gate bridge. the port was happy to participate by welcoming the uss decatur, a 105-foot destroyer. she was at pier 31/32 in celebration of the golden gate anniversary. as part of her being here in san francisco, there was a change of command ceremony, which is a

very official ceremony in that the navy and other armed forces undertakes when the commanding officer is relieved by another commanding officer. that was a very exciting weekend for us. she sailed out today. equally exciting was the arrival of the uss nimitz, a 1092-foot aircraft carrier. she has visited us several times before. she had on board between her breasts all staff and aircraft staff 5700 men and women who were able to come ashore for some well-deserved leave and visit our city and participate in the 75th anniversary. we are proud to be able to effectuate that. the uss nimitz will be leaving tomorrow. if you have not had a chance to see her, please take the chance. the uss iowa was also towed out

this weekend out to its new home down to the port of los angeles, where she will be turned into a museum. the uss iowa was a world war ii battleship, and an important one to the defense of the pacific. it is sad that she is leaving the san francisco bay area but we are happy that she will be having a good new home in the port of los angeles. very happy about that. i would also like to report on our big triple header that we had on mother's day may 12. we had four princess ships in port, three that were passenger carrying vessels, a fourth and went into dry dock. we think that is a fairly uncommon event, especially here on the west coast. we are proud to be hosting these four ships. we had two birds at pier 35 and we are most grateful to our

friends, neighbors, and colleagues who helped us to accomplish that. there was one birth at pir 31/32, and other at piers 70. combined, there were at 18,400 people involved with these ships. that included all the passengers and. there were over 2000 passengers on each of the three vessels. we needed to employ 300 longshoremen, 100 ground staff, and over 150 contractors. all told between the crews, passengers, and services provided, 18,400 persons were at our waterfront on mother's day. it was a great event and again, we appreciate all the support we got from our community, other tenants, and the city family.