supervisor elsbernd: good afternoon. welcome to the june 14 meeting of the gao. could you please call order no. 1? >> item number one, ordnance uprising municipal transportation authority to exit the end the contract. >> we are asking to extend this for one year silicon complete the park project. there are five major issues -- one is we did not receive funding for it -- until a year later than we expected.

we have been having some technical problems. sfpark is a one-of-a-kind project. it originally did not work as we intended to. we originally had many vendors involved in the project which resulted in delays. but the biggest reason is the federal government is looking for an analysis of the project, which we -- if we were not able to provide the data in 24 months, we wouldn't be in violation of the agreement. -- we would be in violation of the agreement. we are in the middle of preparing a full rfp city-wide and we believe the sfpark project is providing new data for the rfp.

supervisor elsbernd: any public comment? seeing none, public comment is closed. can we send us the word as a committee report? that will be the order. we're going to skip ahead on item -- of items 2 and 3 and move to item no. 4. >> and designating the examiner to be the official newspaper of the city and county of san francisco. item #5, resolution designating the san francisco bayview and small business exchange to be outreach newspaper for the city. the western addition to be the neighborhood outreach newspaper ad provide outreach to advertising in fiscal year 2012 and 2013. >> i believe we have jennifer

brown here? >> the first resolution as for the official advertising contract. the estimated annual value of the contract is $50,000. this contract is for fiscal year 2012-2013 and would expire on june 20, 2013. per the requirements, we have to conduct a solicitation, i evaluate and score the bidders for the contract award. this year, we received bids from "the examiner" and the " chronicle." the highest scoring better was "examiner." thank you. the "chronicle" does not meet the requirements because it is

printed outside the city limits. the board has the discretion to award the contract to serve the city needs for public noticing. historically, this has been awarded -- [audio difficulties] -- [audio difficulties]

>> i know there has been some

discussion and how many people get information and giving advertising in that direction. could you give this a quick update on moving all advertising to that internet? >> going back to 2010, there were two ordinances approved by the board. we still have to place ads for the administrative cuts. those ads clearly state the committee, to date, time, the place and where they find the information on the web site. supervisor chiu: that is still a requirement? >> that is why we have saved $150,000. >supervisor chiu: is there any reason we should not practice and our six months and six months? >> not any reason i can think of.

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>> i make the motion to have a six-month split and send the item afford. supervisor elsbernd: so moved. we have called already item number five. jennifer, welcome back. >> this resolution is for the contract for outreach newspaper advertising with an estimated annual value of $45,000. the purpose of this contract is to reach a range of separate and diverse communities about city operations and meetings.

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[continuing audio difficulties] >> item #7 -- ordnance adopting and implementing the memorandum of understanding between the city and county of san francisco and the international federation

of professional and technical engineers. i am number eighth, or dance adopted and implemented the arbitration award in the establishment of the memorandum of understanding between the city and county of san francisco and the union of american physicians and dentists. [audio difficulties]

>> item number 25, ordnance adopting and implementing the memorandum of understanding between the city and county of san francisco and the transport workers union of america. item number 26, ordnance adopting and implementing the arbitration award establishing a memorandum of understanding between the city and county of san francisco and the international union of operating engineers and stationary engineers. -- item number 30, a memorandum of understanding between and the national federation and professional technical engineers. item number 31, ordinance adopting and implementing amendment no. 2 to the 2009-2007

memorandum of agreement between the redevelopment agency and the city and county of seven tesco and the service employees international union, local 1021. -- item number 33 -- item number 34 ordinance amending the san francisco of the ministry of code, updating job classifications and bought -- and bargaining units. item number 35, ordinance adopting in the bombing the memorandum of understanding between the city and county of san francisco and service employees international union, local 1021. supervisor elsbernd: thank you. you can take a breather now. martin gramm is here with the

city employees of san francisco. >> it took that long to get through the reading of the amendments. it took a lot longer to reach these agreements and i would like to thank my very talented staff who worked diligently. we bring to you a package on behalf of dhr and the mayor's office. together, we bring a conclusion to sometimes that were very difficult to us budget-wise and the city and county of san francisco. the last full round of bargaining for miscellaneous unions was the one where they agree to a two-year contract. before the last rays of that contract went into effect, the

bottom fell out of the economy and we were back at the negotiating table in 2008, 2009, 2010, and 2011 asking for concessions. labor came through in each of those years. in 2009, over 20 unions came to the board with a 2% concession. in 2010, 2011, had 2012, labour stepped up with a concession and in the wake of those concessions, they negotiated with the mayor and board of supervisors with the many sponsors this afternoon, proposition see in which employees began to 0.5 to 3.5% contributions toward retirement. we have seen commendable participation by labour dealing

with this economic crisis, and i want to recognize labor for that and acknowledge what they have done in those years. unfortunately, this year, we are being plagued by labor- driven cost. we have a deficit facing us for fiscal year 12 and 13. while we have appreciated labour possible role in trying to bridge that gap, we were not free to began cost-of-living increases and what you see is a collection of memoranda in which there are nearly zero increases in year one. in the fiscal year 13-14, we start with the first crossed of living negotiated since 2006. increases spread out over the

year so that the this call impact is 1.75% as opposed to 3% -- in addition -- the 3% tracks the projected cost of living increases and it is the figure included in the five-year plan proposed by the mayor and passed by the board last year. in addition to the wages, there are two notable items. we put a focus on premiums and we received some reform in the category of travel pay we have a rather archaic means dating back to before collective

bargaining in the early '90s in which you had to be a resident of san francisco to be a city employee and we had some residents driving all the way down to san francisco international airport. it was felt that was worthy of a $5 a day premium. we have people commuting from farther away than san francisco residents travel to get to the airport. we have reforms and a small number of contracts and we are trying to make a more transparent and make sure these assignments are in writing so that we are rewarding the value to the people leading fellow workers in daily tasks. that is the premium part. we see a modest step toward reforming our health program.

we currently have for the employee-only category, we have 100% coverage for any of the three medical plans offered through the health service system. this year, we have made sure every employee has some incentive to choose a health plan that is right r his or her family. the model is we are supporting 90% of the two lowest plans. for the city plan, the city supports will be capped at the blue shield level. we encourage all employees to make intelligent choices about their health. >> that is for employee only? >> the dependent care benefits stay exactly the same.

there is already an incentive to make intelligent choices there. we believe we have presented a package of contracts that are extremely fair to the city and to taxpayers which acknowledge labour's support and concessions in years past, which are modest -- almost no growth in year one and we recommend respectfully the committee approved them and send them to the full board. supervisor elsbernd: was there must discussion about well mess? -- well mess? -- wellness? >> yes. council members, including most of the biggest unions in the city, we will be looking at models were we can save money in

a number of ways, but we are looking at other jurisdictions, including chicago and los angeles were there has been a carrot and stick approach where you are looking at baseline treatments and rewarding people who are taking preventative care of their health. there are a number of places where we felt we did not quite have the time to craft a package centered on that. supervisor farrell: could you throw king county into your analysis? >> yes. supervisor farrell: we had some talk of this about how -- what it means for retirement, calpers, health care -- >> we

were given quite a task by the governor lays let -- late last year when the courts decided the agencies would be abolished and the work would be integrated into the city workforce. we have been required to absorb a certain number of employees and figure out how to mesh the classification position rubric of the redevelopment agency and to our rather byzantine civil service rules. we have in doing our best to create a crosswalk between those classis. there are a number of benefits that do not line up. the retirement system, the retiree health care is contrary to the rules most of us live

with. we have done our best to integrate them and some of the benefits the employees received above and beyond what employees have been addressed by this very amendment and the unions have agreed to drop the employer pick up of the retirement contributions so they will be harmonized where almost every employee and this round -- there were only one or two that are not paid the full rate. >> that is the current opinion of the city attorney. we still have a lot of work to do. we have the contract being amended will officially expire on june 30 and we will be renegotiating that and we still have a lot of work to do.

supervisor elsbernd: at this point, let's open it up to public comment. are there any members of the public who wish to comment on items six through 36, excluding 28. anybody? seeing none, public comment is closed. colleagues, any further discussion? supervisor chiu: i want to thank all of the parties and i know was a lot of work. good to see these issues resolved. with that, i am happy to make a motion to move these forward. we can do that without objection. madam car, can you call item no.

28 cluster >> or to its adopting and implementing the mou. >> motion to recuse because of my wife is a member. supervisor farrell: supervisor elsbernd is excused. >> we bring you a labor contract which is very much in line with the city's ability to pay and in recognition of the role in past concessions. this contract has very little cost in the first year and it includes the 3%