this carries the bicycle lane down from 13 through 19. that project is scheduled to go into construction september 2012. the street scape improvement project is also expected to go into construction in september 2012. we have ipw staff here to answer any specific questions. the 15 mile per hour signs around the schools, at these locations include district 9. the traffic coming implementation project, the majority of them in district 9 are from traffic calling plans. we included the maps in your packet, and also include the list of projects in their current status. i know the traffic coming project is homes own implementation. this is a project where they combine them in a martial state across the school project.

also a map included that shows a map of the projects and all of the improvements in their current status. converting standard crosswalks, this is converting what we call transfers or parallel line spots. these projects are both moving along well, and you can see the locations here. the next slide is what i call this week of 24th street. this is all centered around a grant that is federally funded and prop k leveraged improvement to the 24th street in mission. two pieces of this that we broke off to do implementation are on the northwest section and on the southeast section. we broke off early to make sure they go along with the mission street repaving project. the next few projects are

similar projects we did an overview for on district 3, signal modification project. i just wanted to note that 30th street is actually already implemented. there was already across walk along the southern side of the intersection, and we were able to use prop b funds to get this already implemented and in the ground. the final project for district 9 is the 17th street pavement renovation project. this notice was issued in february and should be completed by this summer. with that, we will take any questions. we have agencies back here as well. >> thank you. supervisor campos: in terms of the overall time line of the project, have there been delays in any other projects?

>> currently district 9 has no delays that would affect federal funding. we're waiting for the review that is going well. those are moving well. just a question related to the point that commissioner chu raised, which is how do we make sure that commissioners can inform you of new projects that they might have or issues that should buy priorities that are not currently priorities? taking that further, how we make sure there is also community involvement or input on that? the kosher. >> sure. speaking specifically to the

one-state area plan, we certainly have a schedule established to do an informational item. then we will come back for an action item, and that is just on the policy aspects that is a reflective project to get your input and community input on the actual guidelines and then move forward to a project selection process from their where we will be doing our reach through channels we have worked on to select projects for that, and we will come back to the board as an information item and action item. we will work with project sponsors once we have selected the projects to make sure they are getting out to the community and making sure the community is brought back in as a whole. when we ever project combining several different authorities together, we can get back to the community and say this is the input. >> i would simply ask that you

continue to work with individual supervisors to make sure that folks in their districts that need to be involved are involved. commissioner olague: i just have a quick question about outreach. i know in district 3 there are a large number of folks that are bilingual, as well as in district 9. our most of our reare most of t materials culturally sensitive or bilingual? >> we strive to have all of them bilingual. then we can obviously have translation services available for those that needed at meetings and things of that nature. >> how do you approach that out reach? >> do you go to the schools?

do you go to nonprofits? to g>> one of the challenges ise are not implementing agency. we try to put a higher priority for projects that are coming through this. >commissioner campos: any other comments or questions? we want to thank staff for the work and presentation. we will open it up to public comment. >> [inaudible] supervisors, you must remember, do not take this personally, what you can do is the guys that come here and give you a presentation, you can ask them for a power point presentation, and you can give this to the schools, merchants, other

organizations. let me focus on district 9. it is crazy to have a bicycle lane on san bruno ave, unless you have $500 million to pay for casualties. we have already had six deaths. unless the writers were born to ride their bicycles participate in the x-games. it is unrealistic to have a bicycle lane from silver to bacon. why? because of the muni buses. the people who ride their bikes, they go on the sidewalk, because that is the only way they are safe.

there are about 20 blind spots because of how narrow the road is. we need engineers to figure this out, and not do it with remote- controlled. these guys here do not live in the community. i do not know from where they come and what they feel about us. when it comes to bicycles, of course we all love bicycles, but we have to love safety. we do not want some supervisor to be knocked down just because he rides a bike. supervisor campos: thank you. next speaker. >public comment is closed. one of the things i would like to explore is as we continue

with these discussions is how do we also inform members of these communities and all the other districts would projects are being funded by the county transportation authority and to hear about other priorities that are not on the list that should be included, so if you have any thoughts or suggestions on the process for making sure that happens, i am very open to doing that, and certainly these discussions are the beginning of making sure we shed light on everything that is being funded. another thing i think is important that we should bring other agencies to have of discussion to the extent the county transportation authority is providing funding and how do we make sure there is coordination and input from the district supervisors, not only

from the county transportation authority, but from the other agencies? >commissioner olague: i am concerned a little bit about the coordination. i am not sure how this is all getting -- how the work is being integrated, and that sort of thing. we have so many departments working on transportation issues. the mta, planning. we have the mayor's office that has their own adviser on transportation issues. i would like to have a better sense of how the efforts are being coordinated. and decided on and that sort of thing. at some point i think it would be useful to have a better sense of that. taiga right. maybe at some point of transportation authority meeting in the neighborhoods might be appropriate. something to consider.

any other comments on item eight? seeing none, this item is closed. >> introduction of new items and information items. supervisor campos: any new items for introduction? item 10. >> public comment. supervisor combampos: public comment is closed. item 11. meeting adjourned. at the harvey milk day. meeting adjourned. -- happy harvey milk day.l

>> good afternoon, everyone. welcome to the regular meeting of the government audit an oversight committee. i am the chair of this committee. i would like to thank our clerk and the sfgtv staff covering

this meeting. do we have any announcements? >> silence all cell phones and electronic devices. items act upon today will appear on the supervisors agenda unless otherwise stated. >> can you call item number one? >> ordinance amending the business and tax code. >> we have a few people who will be speaking on this matter. i want to make a few comments. this is something that i have sponsored with a number of co- sponsors. this bill creates jobs and supports our small business community. we have done a lot here in city hall in terms of job creation over the last year and a half. we have not done much in the way of small businesses.

i believe this is changing here in city hall. this legislation is a big step in that direction. this will allow small-business this with a payroll under $500,000 to expand their peril of to $250,000 a year. -- their payroll up to $250,000 a year. it extends through fiscal year 20 -- calendar year 2015. this will create hundreds of jobs for san francisco residence. the notion of underemployment, i am sure many in this room and watching know a lot of friends, former colleagues, that are currently working, but may be working less hours and making less wages. hopefully, this will also fuel our economic recovery and continued to do that in san

francisco. we currently have a 7.4% unemployment rate in the city. that is dropping. this is time to accelerate it. before turning over to the speakers, supervisor campos. supervisor campos: thank you for allowing me to sit in on this item. i want to thank supervisor farrell. this is something we have worked with his office on for quite some time. we have had many discussions in the last few years about the pros and cons of the tax cut. i know there are very strong opinions on either side of that issue. from my perspective, the reason why i am supportive of this item is it is an issue of fairness. i think that if tax breaks are going to be provided to certain

companies, certain industries, i think it is important for us to also do something for the small business, which is the one that is the real economic engine that makes this economy work. the vast majority of jobs are created by small businesses. it is especially the case that small-business is have a unique commitment to job creation in specific neighborhoods. what i have seen in my district, and whether it is the mission, is that when the small business owners in those neighborhoods higher, they hire people from the local neighborhood. it is not just about creating opportunities for them to hire new people. it is also to deal with the issue of underemployment. what this legislation does in

addition to allowing them to raise the payroll by hiring new people, it also allows these businesses that might be on the fence about giving an employee more hours to work, it allows them, incentivizes them to actually give that complete the additional hours. it is not just unemployment, it is under employment, that is a big concern. i appreciate the approach that supervisor farrell has done because it reflects the reality of what is happening in these communities. the numbers we have seen in terms of the numbers of businesses we have the neighborhoods like the mission, the vast majority of businesses in that neighborhood have anywhere from five to 20 employees. these are the kinds of businesses that this legislation is targeting and trying to help. the other thing that was important for us was to make sure that we also recognize that

it is important to reward businesses that are following the spirit of the laws around the treatment of workers. i am appreciative that the supervisor was willing to work with us, which is also interested in helping small businesses, to include language that insures an order to benefit from this tax break, there can be no finding of misconduct by the office of labor standards. i think that is a very good thing because we want to promote people following the rules and playing by rules. the vast majority of businesses do that. we want to reward those. i am very proud to support this piece of legislation. colleagues, i look forward to your support. thank you to everyone who has

worked on this. >> i'd just wanted to make a couple of introductory comments on this as well. reforming their payroll tax is something i have been working on since my days on the small business commission. i want to sink the small business leaders that are here. we all know that we have a tax system that is not only a disincentive for hiring, but has disproportionately impacted our small business community. over the past half year, working closely with our city economist, and our treasury's office, we have been engaged in a conversation around comprehensive business tax reform so that we figure out a proposal to replace wholesale the payroll tax that we have. i do hope we will be able to move forward in the coming weeks

to work on a proposal that we can put on the november ballot. i want to thank members of the business community who have been working on this. this legislation we have in front of us today is important to move forward because of our -- are small businesses need all the help they can get. we do not have time to waste. >supervisor farrell: we did sped a lot of hours together, working with a lot of the neighborhood merchants. i think they were very valuable in terms of the template and what we did with this legislation today. -- input and what we did with this legislation today. >> good afternoon.

i will give a very brief overview of our report. if you have questions, now or later, i can respond to them. we did look at this program. i am not going to summarize it unless you want me to, but it would provide -- based on the first year perrot. we estimated -- payroll. we estimated that the reduction in revenue to the city would be about $2 million per year. we raised a couple of policy considerations. one is it would apply to any increase in payroll, not just new hires. one of the second issues we raised was that as a business

expense -- expands, we continue to apply to them. we do consider this to be a policy matter. supervisor farrell: questions? thank you. much appreciated. i asked our city chief economist to come up. i think one of the things we should -- i should think you personally. if you have any comments or the one thing i do want to ask, we talk about $2 million from harvey's office, we also talk about the job creation. if you could address that. >> our office reviews all legislation introduced at the board for material economic impact. as the work on this item, we

determined that it would not meet our threshold likely. because i did work would supervisor farrell, i would be happy to offer with the drop in tax might be. we had provided the estimate to the budget analyst and we did despite modeling what this legislation would have cost in 2010 -- we did it based on what this would have cost in 2010. we are more in an economic recovery and i would expect the cost of the policy to go up. $2 million per year is a reasonable estimate. in terms of the job creation, payroll taxes increased to the cost of labor. it reduces their affected cost of labor and incentives for job creation.

the chief question when designing a payroll tax cut is the tax cut sufficiently designed to minimize the amount of forgone revenue that is spent on payroll and job growth. i do think this policy measure is carefully tailored in three ways that makes the cost per job lower than a straight payroll tax cut. first of all, it is a payroll tax reduction only for net new pay row. it is an incentive for businesses to add payroll and at employment or hours or salaries. it does not provide incentives to businesses that are contracting in the city. secondly, by focusing on small businesses, businesses with less than $500,000, that is a broad range of businesses in the city. with estimated that to 30,000 businesses. -- we have estimated that to

30,000 businesses. the fact that the new peril is capped a $250,000 in one year. it does mean that you are eliminating the risk of subsidizing a business. you are limiting their exposure to any particular growing business to $250,000. on that basis, i would estimate the cost per job is somewhere between $6,500 and about $10,000 a job. that would mean the job creation you could expect is somewhere between 150,200 50,000 job -- $150,000 and $250,000 jobs. >> we normally say if it is less than $10 million a year, that is not material for the purpose of our reporting. supervisor farrell: next

speaker. one of the offices we worked with was the tax collector to make sure we insure that this was a relatively small piece of legislation that could be implemented easy. thank you for being here. >> good afternoon. i do want to thank the supervisors for their willingness to work with our office. it will be straightforward for us to implement. this exclusion would be granted for all qualifying businesses that make a timely filing of their payroll expense tax returns. what is going to be helpful is this is gone to be automated as part of our existing tax return process. it does not require us to collect and track any additional pieces of data. that is why our costs were relatively limited.

we've started the conversations with the office of labor standards enforcement as to how we will incorporate the recent amendment to make sure that those businesses that have of finding against them for violating wage laws are not included. it is going to be a process very similar to how we handle other exclusions. i am happy to answer any questions. supervisor farrell: questions? thank you. thank you for your work on this. last, we have the small business commission, office of small business. >> good afternoon. i am the director of the office of small business. this year's small-business weak theme was saluting the heroes of our economy. -- small business week the

muzzling the heroes of economy. the commission heard reviews of -- the amendments you have proposed fall in line with what the commission would support. it would very much support what you were wanting to accomplish with that. the commission had the same similar findings as what was noted by supervisor campos in terms of this getting to our small neighborhood businesses and helping not only had with the underemployment, but also with job growth. just want to express our appreciation and responding to the need that -- when we have had the enterprise tax credits, we have heard from businesses, how come is not in our area? when we do sector based tax credits, businesses have also

said, why not our sector? this will cover a broad range. we are very much appreciative, thank you. supervisor farrell: thank you. colleagues, any other comments? we would like to open it up to public comment. still free to step forward and line up over here. i see a number of colleagues here from our small business community. everyone will have two minutes. >> thank you. thank you for introducing this. we truly appreciate it. the other part that is not looked at is when more folks are hired and folks are making more money, they will be in the community's spending more money. that comes back in a different way. there areal