if you're comfortable delegating that authority and having a written report, then i agree with the puc's suggestion. but if you're not comfortable with simply receiving a quarterly report on what's planned and being spent to our office releasing the reserve, i think it's simpler administratively to leave it on committee reserve. >> if i can, perhaps i can suggest if i can rollover this item for just a second and have the puc to consult with folks and make sure it works out programmatically for you. so if you do come on a quarterly basis, does that hold up your projects, do you expect that would be okay? and then we'll come right back to it. could you call item number 10, please. >> item number 10, ordinance amending the san francisco business and tax regulations code by amending article 6 (common administrative provisions) to revise the bonding requirements for parking operators; revise the time to bring an action to collect tax; clarify the extent of a surety's liability; revise the administrative citation appeal process; and make other minor technical changes; amending article 22 (parking stations; revenue control equipment) to clarify that non-city governmental entities operating parking stations are exempt from the revenue control equipment requirements; and amending the san francisco police code article 17 (miscellaneous license regulations) to clarify that government entities operating parking garages or parking lots are exempt from the permitting requirements applicable to other commercial parking garage

and valet operations. >> thank you very much. i believe we have a representative from supervisor campos' office here. >> good morning, supervisors. [speaker not understood] on behalf of supervisor david campos. the legislation before you amends the city's parking enforcement laws under the business and tax code. it reduces the bonding requirement for operators that have a strong record of tax compliance and simplifies the bonding categories. additionally, the legislation includes other clarifications and administrative changes that ms. florence mar who manages the business tax section of the treasurer and tax collector's office will present on. supervisor campos introduced this legislation after hearing from small parking operators that were having a difficult time meeting the high bonding requirements and larger operators that have operated in

good faith with a proven record of responsible third-party tax collection. the sfmta has informed us that their staff has reviewed the legislation and has no concerns and chris schulman is here from the office of small business who will represent the small business commission's findings. i'll now turn over the presentation to ms. mar. thank you. >> good afternoon, supervisors. florence mar, tax director of the office of treasurer tax collectors. we'd like to thank supervisor campos for sponsoring this ordinance. it follows the efforts of former supervisor montgomery gold rick, alioto-pier, [speaker not understood], enforcing the san francisco parking tax. as background, parking tax has been in effect over 40 years. rent tax paid for parking, the operator collects the tax from the occupant, holds it in trust and remits it to the city on a monthly basis. it is a significant and growing

revenue source for the city generating over $70 million annually. most of the tax is appropriated by board and to mta. the three components that i'll mention briefly here relate to parking bond, administrative citations, and the government agencies. parking bonds are required of operators to protect the city's interests and provide security for the taxes that the operator remits to the city. the legislation expands to a level of the bonding required of parking operators from 7 to 18. and this is in response to industry requests for smaller bands of bonding. the legislation also provides for reduced bonding requirements, for operators that have a strong track record of tax compliance, reducing by as much as half. the legislation makes

clarifications about surety rights and obligations. notably, that policies must cover the specific time periods. this provides additional city protection. administrative citations are the tax collector's equivalent of a parking ticket. and they are used to help enforce compliance of tax law. the legislation simplifies the administrative citation process [speaker not understood] for a hearing by mail. this is similar to how the city handles the parking tickets. persons who receive a citation may still have the opportunity to request and have an in-person hearing. if they so choose. legislation clarifies that government -- what government agencies other than the city are responsible for when they operate a parking location. this change does not apply to third-party operators, but are hired by the government agencies.

and those are briefly comments i'm making and thank you. i'm happy to answer any questions you may have. >> thank you very much. just a quick question with reductions in the bonding requirements. do you anticipate any risk associated with it? >> any risk associated with reducing the bonds, these are for those that have a good compliance record. so, there's always a risk but we anticipate it would be a very low one. >> and this is over a track record of generally how long would you determine that they've had a good track record? >> well, the criteria calls for three years. >> three years, thank you. why don't we go to the budget analyst report. actually, i don't believe there is one on this item. okay. and there's no additional administrative expenses associated with this. are you presenting?

>> i'll be very brief, [speaker not understood] on behalf of the small business commission. the obtaining the bond is the most significant barrier to entry for this industry for small businesses. and the commission strongly believes that the increased increments along with the provision for reduced bonding for operators to qualify is a very important step in the right direction and we urge your approval. >> just a question for you. we also have a program to the hrc to provide surety bonding program for small businesses. i understand that the reduction in the bonding requirement would assist small businesses in general. has the small business commission also helped to reach out with the small vendors, parking vendors who may participate in the parking program? >> we did not reach out in the hrc program. we have one of our commissioners is in the industry. he provided a little bit of expertise, but we did not reach out in relation to the hrc program on this matter. >> and again, we're attacking it from different ways.

one is to reduce the bonding requirement for the vendors, which makes sense to me. i think that sounds good. we may also want tone courage people to look into some of the programs that we have for surety bonding. >> and i'll follow-up on that. thank you, chair. >> thank you. okay. thank you. why don't we open this item up for public comment. are there any members of the public who wish to speak on item number 10? good afternoon, supervisors. my name is tim [speaker not understood]. i'm the president of the san francisco parking association. first and foremost, i want to commend treasurer cisneros for [speaker not understood]. and laws like this that require tight reporting and compliance. this is a great piece of legislation and the amendment is very helpful with small businesses. we have a number of small parking companies in our association. they're very appreciative of this. in addition, the part of the

legislation that addresses parking operators in good compliance, the incentivized to pay the tax, to be compliant, and to be current is also a good approach and a good way to go. so, thank you, supervisor campos, for the small business piece. and also for the incentive for the good operators to continue to pay 100% of the tax, which is sorely needed for the city. thanks so much. >> thank you very much. are there other members of the public who wish to speak on item number 10? seeing none, public comment is closed. okay. colleagues, do we have a motion? okay, we have a motion to send the item forward with recommendation and we can do that without objection. okay. and now we're going to return to item number 11. i believe that the department ha worked with the controller's office to have different language potentially. i think that perhaps you can

indicate what the language is. >> yes, we have steve general manager from water. the language would not put the money in the controller's reserve but basically amounts in excess of $100,000 would be on reserve at the budget committee. so, we would come back rather than on quarterly reports, we would just come back for expenditure of funds in excess of $100,000. that we agree is probably the simplest mechanism to put in place for all concerned, give you guys the authority to control it. make it administratively easy for us to do that. >> thank you. to the budget analyst, in terms of the 100,000, remind me why there is the threshold recommended at 100,000. >> we recommended that threshold to be consistent with the grant approval, accept and extend threshold. >> okay. so, colleagues, we have with recommended change and i'll read that into the record. so, let's see.

on page 1 lines 9 and 10, which is consistent with the version that you have before you, the language should have "and placing various mitigation funds on reserve with the board of supervisors." and we would not have the controller. it would just be the board of supervisors. then on page 3 lines 16 and 17, we should add item number 10, that should read the puc will receive any funds for the mitigation [speaker not understood] to mitigate any impacts on the city's electric system. and finally, following line 9 on page 4, it should read, phone fund in excess of 100,000 for a given mitigation agreement shall be placed on budget committee reserve." so, that would be the language that will be proposed for the amendments in the legislation.

and then, to the city attorney, would these be stantive and require a continuance? >> they would not. >> okay. so, colleagues, do we have a motion to accept those amendments? >> so moved. >> we've got a motion to accept those amendments. can we do that without objection? we can do that without objection. and then to the underlying item as amended, do we have a motion to send it forward with recommendation? we have that and we'll do it without objection. thank you very much. okay. let's go to item 12. >> item number 12, hearing to consider the release of reserved funds, municipal transit agency, in the amount of $1,600,000, fy 2011-2012 amendment to ordinance no. 59-12, for the san francisco municipal transportation agency's radio replacement project. >> thank you very much. we have an mta representative on this item. >> yes, good afternoon, supervisors. my name ashenery kim. i am the project manager for the smt [speaker not understood] replacement project and i am here to present this

item. * is henry kim this was presented to the board in april for 1.6 million in revenue bond funds were set aside for sfmta for radio replacement project [speaker not understood] regarding voice and data communication systems for the city. this item was presented on october 18th, endorsed by the committee, and we are here today to request release of the funds. and i believe there is a budget analyst report on this item. >> okay. why don't we actually go to the budget analyst report. >> madam chair, members of the committee, deborah newman from the budget analyst office. as mr. kim has indicated, these funds were placed on reserve last april when sfmta came forward with proposal for issuing revenue bonds. and at that time, recently prior to that, the board of

supervisors had approved the large motorola regional agreement that was a 12-year agreement with motorola to do a public safety regional data communication and radio communication system. and at that point, when the mta was coming forward, they raised a number of questions about how the sfmta project fit in with the regional motorola project and other city departments. there was a request to take a look at this and coordinate the efforts. as mr. kim has indicated, coit has looked at this and on october 18th recommended that the budget and finance committee release this reserve. we are therefore recommending approval of the release from the $1.6 million on reserve for the sfmta's radio system replacement project.

however, i would also note that on october 18th, the coit also approved several other motions, one of which is directing the department of technology to host quarterly radio communication stakeholder meetings with the department of emergency management, sfmta, the public utilities commission, police, fire, and the motorola bay with staff to ensure there is clear and consistent communication about the status of the current and future planned radio communication projects, and directing the sfmta to provide regular reports back to coit and their subcommittees on the project -- on the progress of this project. in addition, in terms of the regular projects for the city, coit has directed the department of technology to do

a study as there is not a plan for the current facilities, the condition of those facilities, and recommendations on how to proceed for other city departments' requirements, technical specifications, timing and a budget for the rest of the city to move forward for their -- to upgrade their radio and data communications. i would also note that the regional motorola bay width system regarding that project in february of 2012, the u.s. congress enacted the middle class tax relief and job creation act which had a provision in it to create a nationwide inter operable broadband network to assist police, firefighters, and emergency medical personnel on a national -- nationwide basis

as opposed to the regional motorola system that we are moving forward with in the bay area. as a result of that, this -- it's called the first responder network authority, first net, this new nationwide system has just met. they had the first meeting in september. the fcc has now assigned all of the communications spectrum rights to this new national organization. my understanding based on our conversations last week is that the motorola system, the bay area regional system is now on hold. so, given the status of the motorola bay width system and the status of the other city departments' radio communications systems, we have also made two other recommendations requesting that the department of emergency management, which is the lead agency on the motorola bay web

system, update the board on this system and how that works vis-a-vis the new federal policies and regulations. and to request in the department of technology, working with the department of emergency management. once they complete the studies that they're doing now on their coordinating the efforts for the rest of the city to bring those forward to the board of supervisors so that they are fully informed on what is going forward. >> thank you very much. supervisor kim? >> thank you. and i know that you don't represent the department of technology, but i'm curious as to whether they agree with the recommendations of the budget analyst. >> i believe we have a representative from dp here. they can speak for them.

>> good afternoon, supervisors. i'm joseph jones from department of technology. the department is presently working on those recommendations that the department hired a consultant. consultant has studied the radio side and he has recommendation and the department is reviewing that. and the department is also talking with san francisco police department, fire department, to study the replacement of the radio project which is a 14-year old radio system. [speaker not understood] we have department of emergency management here to update you. >> if i can be more specific, the recommendation is that gt work to present the finding and recommendations to the board at a future date on the current radio facilities conditions, including recommendations on the future use and city department user needs, technical requirements, timeline of funding. so, would you agree to come back and present to the board

on your findings on this work? >> yes. >> okay, great. and the same with the -- would you accept this recommendation by the budget analyst? >> the department of emergency management? * >> yes, supervisors, department of emergency management agrees with those recommendations. we'll be very happy to come back and provide an update. >> thank you so much. you know, i know that this has come back to the budget committee several times at this point. i think it's great that we're updating our radio system that is out of date and, you know, probably is not as efficient as it could be. also doesn't currently comply with fcc standards. i'm glad we're able to do this finally. but i still continue to have a lot of questions. we have three different potential radio systems right now. one is, of course, proposed regional bay web motorola system which is no longer and is now being reviewed by, you know, by first net which is now

a different national single wireless public safety network. a lot of questions about that. of course we don't have all the answers to that because that discussion is happening at a national level. and then of course the city's existing radio systems amongst our fairious departments, police, fire, port, the dpw, rpd and of course the sfmta 700 megahertz, am i correct, radio system? so, i want to make sure we're aligning all of these system so we have effective uses of funds and resources it so there is as much alignment as possible so that we have the savings that we need. so, i think those are the questions that continually come up for me. not the need to replace the system. i think the need is very, very clear and i'm happy to support this today. i just want to make sure that conversation continues and i'm glad that it started. these meetings, in the past six months, but i do really want some answers about how we're going to share on these facilities and leases and what it's going to take to improve these facilities to meet the needs of our city and our

communication system. >> yes, i'll be interacting with the mda and other departments. in fact, this particular project, we are recommended that the transportation agency co-locate their system, the bd system, thereby they share the existing fiber, existing wireless, [speaker not understood], air conditioner, generators and also the staff is going to maintain the [speaker not understood] that will benefit transportation agency. also as regards the other three projects, [speaker not understood] recently. the consultant was hired also recommended the same thing. >> thank you. >> okay, thank you. why don't we open this item up for public comment. are there members of the public who wish to speak on item number 12? yes, ron rubina. i just asked mr. kim if a

little radio device would work in the bus shelters where they have, you know, number 22 arriving 50 minutes. he said yes. so, i wonder if not in this project, in some project, and if not with this money, some of that big emergency management money, you could put in at least the most used lines in some of the shelters emergency giants crowd bus arriving in 7 hours or bus broke down. i hope you'll get some of these little radio receivers in the shelters on the most used lines so people will know the bus is delayed. thank you. >> thank you. are there other members of the public who wish to speak on item 12? seeing none, public comment is closed. colleagues, do we have a motion to approve the requested release of 1.6 million on reserve for the sfmta radio program? >> do we have to first motion to approve the amendments as recommended by the budget analyst? >> and to also accept the budget analyst recommendations.

we have a notion to do that. and can we do that without objection? we'll do that without objection. thank you. thank you very much. colleague, if i can, i'd like to actually call back item number 11 and see if we can rescind the votes. one of the things i failed to remember to do was actually strike section 4, which was the effective date, the effective date so that this ordinance shall become effective 30 days from the date of passage. i think we want it to be effective immediately. colleagues, can we rescind the vote on item number 11? >> so moved. >> we have a motion. we'll do that without objection. and then on the item, can we take a motion to strike section 4 that reads "effective date this ordinance shall be become 30 days from the date of passage" and then to authorize the clerk to make those changes? >> so moved. >> we've got that motion and we'll do that without objection. and then to the underlying item as amended, can we send that item forward with recommendation? we've got that motion and we'll do that without objection. thank you very much. okay. now we are item number 13. >> item number 13, resolution

authorizing the termination of the lease agreement between the city and county of san francisco and the downtown parking corporation and authorizing the director of transportation to execute a lease termination agreement that will expire on december 31, 2012. >> so, item number 13, do we have a presentation from the port? >> good afternoon, chair chu, supervisor avalos and supervisor kim. [speaker not understood], san francisco mta. this report requests your approval to execute the emission agreement for the current lease between the city and county of san francisco and the downtown parking corporation. by the way of background, downtown parking corporation, a nonprofit entity, was formed in 1955 to assist the city with the construction of the 5th and mission garage. in 1957 the city and the downtown parking corporation entered into a long-term lease by which the corporation maintained the garage

day-to-day operations while getting [speaker not understood] oversight and the policy reaction from the mta. the garage has about 2600 spaces and about 25,000 square feet of retail and [speaker not understood] 18 million in annual gross revenues. * generates in july 2012 mta issued revenue bonds which paid off the debt held by the corporation. subsequently the corporation requested that the lease be terminated and [speaker not understood] the duty that they currently have. so, the last few months the mta staff and the corporation worked on the termination agreement which is presented here for your review and approval. the approval of the agreement will [speaker not understood] effective december 31st. it will bring back the oversight of the garage to the mta. it will eliminate many of the services and save about 200,000 annually.

the draft determination agreement has been approved by the corporation board in october 2012 and it has been approved by the mta board of directors yesterday. with that, i will be happy to take any questions that you may have. >> thank you very much. thank you for your presentation. we'll go on to the budget analyst report. mrs. campbell. >> okay. under the proposed resolution on termination of the lease agreement with downtown parking corporation, mta would assume all the administrative and oversight responsibilities for the 5th and mission garage, including the existing vendor and subtenant agreements. the mta actually estimates the savings of and the savings from reduced administrative costs carried currently by downtown parking corporation of about 200,000 a year. and we recommend approval. >> okay, very good. thank you very much. we can open up this item for public comment. any member of the public would like to comment? seeing none, we'll close public

comment. and this item, can we -- we'll reserve -- we'll go when the chair comes back. we'll skip item number 15 -- i'm sorry, we'll skip item number 14 and go on to item number 15, please. >> item number 15, resolution authorizing the 2012 south of market community stabilization fund program and authorizing the mayor's office of housing to expend soma community stabilization fund dollars in the amount of $760,000. >> supervisor kim. >> thank you. i've introduced a resolution authorizing the mayor's office of housing to expend the soma community stabilization fund dollars in the amount of $760,000. this innovative fund, as many of you know, was approved as part of the rincon hill area plan that is intended to be used to address the issues of destabilization of residents and businesses in the south of market due to development in

the rincon hill area. the fund that we are authorizing today is the third round of funding through the soma stabilization fund and is consistent with the latest strategic plan for the fund. as a south of market continues to grow and improve its new development and projects it is important that we continue to work on stabilizing current residents and businesses that have been a part of this neighborhood for decades. the stabilization fund gives us the opportunity to pilot tools and strategies outside of the mayor's office of housing's typical grant programs that are often restricted by guidelines from federal government to help support residents stay in the south of market. an example of how this fund has been helpful in doing that is that the fund has helped stabilize 49 below market rate units at 333 harrison, the new rincon green project in rincon hill. the rents for these units are deeply affordable for families making 30% ami or less. the rents start at $550 for studios and $6 94 for two bedrooms.

the fund also supported the bill for our housing program, a project of veterans equity center to help south of market residents and workers actually fill out often these complicated housing applications and the ones for rincon green. [speaker not understood] to fit 149 eligible families in the south of market throughout the month of october and they've helped another 190 south of marketes are didn't and workers making 40 to 60% of ami fill out applications for future development. the lottery for rincon green was actually this morning and we are hoping that many of our families were selected. this is a concrete example of how this fund has been used to stabilize the residents and families in our community. so, i wanted to introduce from the mayor's office of housing claudine to talk about this round of funding and how it is going to be utilized. * [speaker not understood] >> good morning, supervisors, claudine [speaker not understood] mayor's office of housing the community development divisi.