supervisor chu: we're back to

the budget and finance expanded committee. but just come back from recess and finished introduction for budget and city attorneys budget. colleagues, if we can resend the previous action we took, the motion to accept a budget analyst recommendations on page 65. upon further conversation, he wanted to work through a few more of those items and, so can we send that motion? without objection. why don't we continue with the office of economic and workforce to about? >> i was just at the beginning of my presentation, looking over the comparison of the current fiscal year budget and the next two years of budget. i was listening to the budget presentation and i understand there are some threshold questions the committee has with

regards to internships and i thought i would refer to those now for my department. the office of economic and workforce development currently has 19 intern's the summer. they're mostly undergraduates but we have had some high-school students. just as the city attorney mentioned, we have in turn to all year round but tend to get a bubble in the summer and average about 6 to 10 and turned all year. department wide, including the office of small business and film, we have about $900,000 in professional service contracts. if you would like a breakdown of that, i can provide it later in the hearing more next week.

getting back to the core of my budget presentation, if i could have the overhead. the budget is supposed to increase in 2012-2013 and 2013- 2014, though in the second year it does increase. an addition of seven new positions related to economic development positions and three positions related to work-force development and to federal workforce grants totaling $3.5 million and the extension of the rebate program recently approved by the board of supervisors and signed by the mayor. the decrease in our second year is primarily attributed to the removal of the $4.9 million for the cruise ship terminal projects and the removal of the work force development grants which takes out the $3.5 million.

they can be broken down thusly. to for the jobs, three for the invest in never its initiative, one for manufacturing, a manufacturing sector manager, one for a private-public partnership position assisting with large capital projects and an additional half time position for economic development related to my life. one of the budget hearing request made by supervisor carmen chu -- due to some administrative problems, our language access issue is not submitted to the department and we wanted to provide you with this high level overview.

we serve a range of business owners and employees with 14 bilingual staff in contact position to speak spanish and chinese, both manned and cantonese. our largest direct service is the office of work-force development. office of small business has a total number of clients with limited english proficiency -- proficiency -- the total number of clients is 2014 and 266 are clients of limited english proficiency. we think that number does not accurately represent a small businesses out there with owners with limited english proficiency and we think the jobs proposal will help us reach those businesses much more effectively. i will get into that program later in my presentation. with regard to the work force, they have served 2709

individuals as of april 30. 657 are of limited english proficiency, about 24%. with regard to work force, the budget is projected to grow in fiscal year 2012-2013. that is largely due to federal grants. there are three department of labor grant initiatives we are currently working on. one is a technical training grant, a disability program and an enhanced job demonstration project. this together total about $10 million. ongoing programs include our job readiness service and the ongoing projects serve about 4000 residents per year and 8000 youth, about 2000 job

placements and the director of the workforce development is here to elaborate on anything you like to inquire about regarding work force. with regard to the film budget, the overall production has increased by about 3% since last year. we have seen the number of -- the number that has applied for the rebate program has grown significantly. there were only three feature films between 2006 and 200010 that applied for and received their rebates. we saw three feature films apply in two years between 2010 and 2012 at just in 2012 we have had brief elms apply for the rebate. it has been funded to 7000 -- $700,000, an increase over what

was previously available what we think it will spur the growth of this industry throughout the city. the film commission established the sf film collective. one of the main goals of the film commission next year is to work with local unions to promote san francisco as a film friendly and affordable place to film. the increases you see in the budget are due to the increased revenues we're receiving from permit fees as well as automatic increases in personnel. the major development projects we are working on in the next two fiscal years is quite extensive. these are large, and packed full projects that hold a significant value to the public. we will be working on cpmc,

which will move forward, the proposed warriors are arena, the sea wall lot development, commonly known as a giant parking lot a. the america's cup and implementation, continuing to work on the octavia boulevard land sales and the old chronicle building at fifth and mission. i have milestones i can't go through -- i can go through with any of those projects. with regards to economic business development, despite a still struggling economy, we had a great number of successes in retainer -- retaining major employers and ensuring job growth stays in san francisco. we were able to retain and

accommodate the growth of a significant number of companies and attract impact will new ones. our goals for fiscal year 12-14 are to continue these efforts, going on-line, allowing for easier implementation and obtain tax credits. for the purpose of the budget, we will be launching and manufacturing initiative which would create a manufacturing desk in the city and work with manufacturing businesses that need assistance navigating the city's approval process these. that will help san francisco resident get connected to manufacturing jobs and promote made in san francisco items. we propose focusing on fashion design, food and beverage, all sorts of consumer products, as well as small scale prototyping

manufacturing we see happening in the city. we will be working with the airport to expand our international program and strengthen the international business recruitment. china has been very successful on a very modest grant provided for the city to a nonprofit attractive chinese-based businesses and technology exchange. we would like to expand that model and work with the airport and continue to find ways to attract international investment. supervisor chu: where is that the zone, generally? >> in the eastern part of the city. is determined by census tract that had a certain amount of poverty or unemployment that has criteria established by the state and you are allowed to add a certain amount of adjoining districts to ones that have

underserved populations and it is largely the eastern half of the city. >> we have a lot of people to participate in the program? >> to date, the total number of businesses that have taken advantage of the program is 1222, 25% decrease from last year. we can only attribute that to the slow economy and businesses being less aggressive about hiring. we have also had in the last three years massive outreach on this program, so we think we have reached a saturation point for those businesses that were previously unaware of it. it's a program that allows you to retroactively get state income tax credits. once businesses are aware, they can look back and see if the have qualified expenditures or qualified hires. it is just anecdotal but we think we have reached a lot of businesses that we may see a

smaller number as new businesses are eligible. with regards to america's cup, we have a proposed budget next year of $10 million, down from a 12 million we had originally budgeted this year. that number is proving to be in excess of what is needed to cover the america's cup city costs. when the board of supervisors was discussing the americas cup project in march, we do the budget was down to $10.9 million. costs are now projected to come in below $8.5 billion. next year we will be focused on implementing the america's cup at hosting events in august and october at we have executed a

mou. our initial reimbursement is targeted before june 30 that we will be reimbursed a quarterly basis. mike martin is your view of further questions. supervisor avalos: on the question of how they are beating the june 30 funding deadline -- >> i'm the america's cup director -- we have had several meetings of the course of june to go over are expected expenditures by june 30. they are fully expected to pay all of those costs at a lower number we saw that during our march urines and we will be executing that payment,

basically everything through june 1 will, june 30 and then there will be 30 days and the final invoice to make the remaining payments. there'll be additional time to make that payment. supervisor avalos: i do recall the 8.5 million figures -- do you recall? >> there were a mixture of pledges and money received ino's the -- money received. i know they have been pushing out in time the board hearings. supervisor avalos: hitting that target? when are we going to hit that? >> might understanding is they will hit the 12 million. that memorandum of understanding

is to by the 12th of june showing their id -- ready to pay for their embarrassment's going forward. supervisor avalos: thank you. >> moving forward to small business -- the office of small business has served 2500 clients as of the end of may and is expected to ebb and with a number of clients served a year over year by 3%. a of increase the number of workshops by 30% and the office of small-business is actively doing our reach, averaging more than one workshop for week at this year, they have highlighted compliance the zone benefits and they have three workshops of mobile food facilities.

the goals for next year include the small business commission meeting twice a month rather than once a month as well as returning to full counter service hours. they have been open monday through thursday but next year, they expect to be fully open 8:00 to 5:00 monday through friday. they will engage in an analysis of their services and programs. the office of budget of dallas's four years old. analysis of the client data, we have a lot of good data but we think now is the type to do an assessment to understand how impactful the office has been. the office is not entrenched in a lot of long term practices of there are changes to be made, this is a good year to do it. they are also going to launch a