this commission does not deal with liquor licenses or the taking away of liquor licenses. that is not under our purview. that is what the state of california. whether they have a permanent liquor license or not. what they are asking is for us to grant them an entertainment permit for their existing use. what i understand is that anything that is before the courts or anything that is before an the other commission or board of supervisors in the city is about an intensification of their use. i understand this permit has been put forth not for an intensification of their use but just to codify their existing use. based on that and the fact that

their occupancy is of paramount importance in this city, there is no other venue in this city with the occupancy load, i move to approve this permit for their existing use and incorporating all of the existing conditions as put forth by the planning department, the board of supervisors, and any additional conditions by the abc. that is my motion. president newlin: thank you. commissioner: i second that. president newlin: thank you again. why do we not have a roll call on that? clerk: [reading roll] the motion carries. president newlin: good luck. vice president joseph: good

luck. president newlin: ok, item number 6, a discussion and possible action to review the existing place of entertainment conditions of rock it room, located at 406 clement street. >> to report on their activities, we kept the item on calendar because we wanted to track it and make sure we did not miss out on the timing. they have asked for a continuance, as the permit officer is on vacation, i think, and so with respect to this, we're asking that the commission to continue this item. we have been in communication

with the venue. they are complying with conditions, and there are quite a few of them, says staff is requesting a continuance. i think he will be back in mid july, so if you wanted to be specific, it would be a second meeting in july, at the very earliest. president newlin: ok. any public comment on the continuance of the review of rock it room? commissioner: second. clerk: same house, same call? ok. thank you. president newlin: item seven, commissioner comments and questions.

vice president joseph: the lineup is very cool. donate at the door as you come in. please all attend. president newlin: thank you. any public comment on that? [laughter] commissioner: this is june 12, the anniversary of filipino independence. i would like to join the filipino community and celebrating that today, and i'd also like to thank the mayor's office and the mayor's office on protocol and thing them for hosting a very nice flag raising ceremony this morning on the mayor's balconies. happy independence day. president newlin: ok. in that vein, i would like to share a story when i was a weekend captain, and they were celebrating philippine independence, and they started out been meant that was being

held -- i got it. that is next item. they had a venue at bill graham's auditorium, and they started the event by marching around civic center plaza with a drum and a lot of pop and ceremony, and this was a period of time when all of the homeless were camped at the civic center, so i was standing there, and all of these homeless people came up to may, about 9:00 in the morning, and they said, "we want to file a complaint. we are trying to sleep here." vice chair joseph: i love that story. commissioner: i just want to say there will be a joint queeer sumit -- summit with the harvey milk club. i am not sure who is going to be

there, but it is a good meeting, and i believe bryant tan and scott wiener will be there, and if you are looking for something to do, the screening of my movie "running in heels" will be out, about my running for the district supervisor, and it will be in the old tower records at 10:00 p.m. president newlin: if the movie is half as good as the title, it will be a blockbuster. item number 8, a request for future business items. i have an item. according to our bylaws, we are approaching the election period, so i'm going to throw two things out there. the current bylaws require maximum service of the president for two years, which i believe,

i am not sure what the dates are, but i have probably used those up or close, so we have two options. i would not mind staying on as president for another year, and then that would be it, but on the other and, i submit welcome that if there are people on the commission you are interested in taking office, i would be glad to handed over. i do not want to hog the thing. the on the thing i can say about taking this role of president is i think the key issue is to be able to keep the meetings on track and to keep them as expeditious as possible. other than that, the rest of the commissioners, as yet witness, have been part of a wealth of information and handle all of the questioning and stuff, so what i am proposing is sometime between now and the next meeting, you contact jocelyn at the office and let her know if

you feel we should have elections scheduled for the next meeting or we should amend the bylaws to allow the current officers, and i know audrey would be more than happy to serve for another year as vice president, so it is completely up to the commissioners, and, again, i just throw that out if there is somebody who is interested in the position, i am more than happy to pass the gavel, and if there is nobody interested, we will that do change the bylaws to allow audrey and i tuesday for another year, so i do not expect any comment now, but if you can think about it and contact jocelyn about what direction you would like to see the commission go, i am 100% behind that. vice chairman joseph: i want to say that the bylaws need to be

looked at. they have been there for nine years and a to be brought up to date anyway, so under new business, whether or not you guys want to have elections or not, i would like to put on the calendar a discussion about the bylaws, forming a by law committee with a date certain not later than the end of july to amend the bylaws, so i would like that to be put on the next agenda. president newlin: we would not have time to form it for the next meeting. vice chair joseph: we put it on the agenda, and then they come back at the end of july. president newlin: ok. i have no problem with that.

the first is amending the bylaws with the president and vice- president and the other is just a complete overview of the bylaws. jocelyn sent them to me. i am not saying there is not anything that needs to be amended, but i did not see anything, and it is quite possible that i missed something that somebody else would pick up on, and then the other is if anyone else on the commission would like to take over office of president and vice president. if you want to keep it as it is, we will have to amend that specific item, and aside from that, i have no problem reviewing the entire bylaws. any other comments? commissioner: when we do this, do we have to get permission from the board of supervisors, or is that allowed? vice chair joseph: no, we do not. president newlin: ok, is there

any public comment on this? you cannot sit there for an entire meeting and not say anything. >> something in the bylaws, and they show up for weeks and weeks and months and months, and we have had situations where there are only four people at a commission hearing, and that becomes a problem when there is a contested item, because that is my only -- president newlin: do you mean a lack of quorum? you probably have those on the top of your mind better than i. i do not remember any, but i am

sure there are some. >> well, there have been a couple. bis jered joseph: how is bella? president newlin: that will conclude the june 12 meeting of the antar containment commission -- of the entertainment commission, and if anyone knows who would like to take neal's place, that is a board appointment, so let us know, let the board no, and i am sure it helps to aggressively pursue somebody internally. ok. we are adjourned. captioned by the national captioning institute --www.ncicap.org--

captioned by the national captioning institute --www.ncicap.org-- supervisor chu: a lowe, of welcome to the expanded budget committee. -- hello, welcome to the expanded budget committee. are there any announcements? >> please silence all cell

phones and electronic devices. include documents as submitted to the clerk. ockham to drink it -->> -- supeu very much. mr. young, would you call items one through three? >> item number one. interim proposed budget and annual appropriation ordinance appropriating all estimated receipts and all estimated expenditures for departments of the city and county of san francisco as of may 1, 2012, for the fys ending june 30, 2013, and june 30, 2014. item number two. interim annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fys ending june 30, 2013, and june 30, 2014, continuing, creating or establishing these positions; enumerating and including therein all positions created by charter or state law for which appointments thereto; specifyingcompensations and work schedulespositions and

fixing compensations therefore. item #3. resolution approving the interim budget of the treasure island development authority for fy2012-2013 and fy2013-2014. supervisor chu: thank you very much. pour the next two weeks, and we will be deliberating on these house cleaning items. items one through three. again, these are basically the authorization, the ability for the city to continue authorization during the process carried over the budget for the month of july as we continue forward. generally, there are not too many changes in these items. again, it just allows for the city to continue functioning during the month of july. why not open this item up to mr. rose or the budget office if he would like to say anything. >> madam chair, be only thing i

would add besides that which you have already stated is on page 2 of our report. there are exceptions to the interim budget. in this case and the mayor's office is requesting 162 new positions, full-time equivalent. as you know, if those are approved, they would start on july 1 rather than august or september. so, we will be reviewing these positions in the ensuing two weeks on a department by department basis, making recommendations there. secondly, we point out that regarding the hotel tax allocation, the steinhardt aquarium does not get an application, but that is not shown in the administrative code.

the recommendation on page 5 of the report, except for the exceptions to the interim budget, which include the hiring of 162 new positions as of july 1, 2012, positions that i stated we will analyze and make recommendations on in the next two weeks, we recommend that you do approve the ordinance, the 12-13-14 annual salary ordinance and 12-13-14 honoraria authority budget, and that you amend the business of the tax regulations code to include the annual tax allocation to the annual aquarium, which would be consistent with previous border supervisors policy. supervisor chu: thank you very much to the budget office. is there any item that you would like to speak to?

>> good morning, supervisors. in the mayor's budget director. i will be presenting to you in a few moments and more thorough overview of what is in the mayor's proposed budget and how we appreciate the work of mr. rose's office. his approach at this time is appropriate. thank you. supervisor chu: thank you very much. let's open these items up for public comment. are there members of the public that wish to speak on items one, too, or three? seeing no members of the public, public comment on these items is closed. a question to the city attorney. with regards to the budget analysts recommendation on

business tax code, that item is not before us. it may simply need the administration code? >> i think that the budget analyst is referring to provisions in the budget. then correct, the tax code is not before you. >> if we were to make an amendment on the budget analyst separating it, you would have to introduce that item? >> correct. supervisor chu: given that the item is not before us, i would suggest that we cannot make an amendment at this moment. the budget analyst report recommends that we move forward with these items and that exemptions to the authority will be coming before us department by department. do we have a motion to send these items forward to the full board of supervisors for this coming tuesday?

without a motion, can we keep that without objection? kept without objection. thank you very much. please call items four through 12. >> item #4. hearing to include financial update and information on budget instructions and process for fy2012-2013. item #5. proposed budget and annual appropriation ordinance appropriating all estimated receipts and all estimated expenditures for departments of the city and county of san francisco as of may 1, 2012, for the fys ending june 30, 2013, and june 30, 2014. item no. 6. annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fys ending june 30, 2013, and june 30, 2014, continuing, creating or establishing these positions; enumerating and including therein all positions created by charter or state law for which compensations are paid from city and county funds and appropriated in the annual appropriation ordinance; authorizing appointments or continuation of appointments thereto; specifying and fixing the compensations and work schedules thereof; and authorizing appointments to temporary positions and fixing compensations therefore. item #7.

resolution approving the budget of the treasure island development authority for fy2012-2013 and fy2013-2014. item #8. resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by city and county employees. item #9. resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by city and county employees, for the following service: custodial services. item number 10. resolution approving expenditures from the budget savings incentive fund for one- time purposes in fys 2012-2013 and 2013-2014. item number 11. resolution concurring with the controller's establishment of the consumer price index for 2012, and adjusting the access line tax by the same

rate. item number 12. ordinance amending the san francisco administrative code section 2a.22.1 to revise and increase the fees charged to city administered or city funded construction projects for plan review and site inspection by the mayor's office on disability for compliance with federal disability access laws; and making environmental findings and findings of consistency with the general plan. supervisor chu: thank you very much for reading all of those items. to the members of the public, a quick announcement, items four through 12 deal with the upcoming budget and the budget thereafter for the city and county of san francisco. most of these items will be continued until different dates, because we have to wait for public comment. if you want to speak on these

items, we will not want -- we will not be taking public comment on the budget today. we will be consolidating all of the budget to be heard on friday. of course, you are welcome to stay and listen to the proceedings, but the bill not be taken public comment today. the bill be -- but we will not be taking a public comment today. we will be taking public comment on friday. because it is so lengthy, we will be taking a break at noon. a quick announcement, we will be taking a break at noon. with that, we will head right into the budget deliberations. on item number four, it is generally the ability for the budget office to provide a quick update for us. i would like the comptroller's office to present on the revenue

late -- letter. could ms. howard please give a brief introduction to the budget? if we can, right after your brief introduction, we might go right into the revenue letter. after that, we will come back for a quick overview on redevelopment agency, given that the overview will have bits and pieces of the reconfiguration within. >> thank you. happy to be with you this morning to talk about and provide an overview to you of our first ever two year budget. so, if i could have the overhead, victor? i would briefly walk through what is happening in fiscal 12, 13, and 14, talked a bit about

what is driving the growth. share some highlights of our budget with you. and then talk a bit about how we balance. so, at the highest level, our fiscal 1213 budget is for the whole city $7 billion, of which $3.5 billion is in the general fund. the number of employees in the city is willing to 26,878. we came to agreement with our labor unions and from the general pattern in the first year, the furlough day that had previously been agreed to expired. that was worth about 4.62% of wage. that did contribute significantly to our costs going

up. this side is showing you buy service area how we are proposing to spend the city's money this year. you can see a significant amount in public transportation and commerce. public health, 19%. in fiscal 14, the budget grows slightly from the proposed budget to 7.5 $5 billion, with a general fund up to -- up to $3.6 billion. we offer a couple of other hundred positions growing into 50,000. in the second year, the general pattern was 1.75% increase. reflecting changes in the employee participation only

health care. that would increase annual access to 3% in the second year. this slide shows you, again, what is happening by service area in the proposed budget. not significantly different than the prior period i have been asked a number of times about why our budget is growing. i think that there are a few main drivers i would want to point out to you. the first, as i mentioned a moment ago, is that employee wage costs are increasing due to expiration of furlough days. as well as the increasing costs of our health and pension benefits. secondly, the city is absorbing the entire budget of the redevelopment agency into our own budget. you will see that the majority of the increase, as well as some

of the increase in the mayor's budget office, is due to that absorption of that function. we are also increasing the costs related to capital services, related to the implementation of federal health care reform, and other growth in the enterprise apartment. notably the puc and airport. in general, the city's proposed two year budget has service reductions, which i think you are aware of. it also includes public safety hiring for police and fire. the police department in one class with the fire department in each year, we include the quota for nonprofit organizations in this city, as well as the $95 million in

general fund capital for the next few years. i would like to point out that our reserve position is strong and improving in this budget. our general reserve, which has historically been $25 million, annually rose to 32 million in this budget. in the first year of the budget we have included a state reserve and in the second year we have not included that allowance. finally, the budget stabilization reserve, similar to the rainy day reserve in terms of when it is available, is also growing. up to $45 million in the first year. now, to provide a brief overview to you about how we balance the city's budget this year and next. as you will recall, the joint