and the controller. consistent with the approved two-year rolling budget plan we provide this had past june, we intend to present a draft budget recognizing the city's financial constraints. ms. landis is present to answer questions you may have about the current year's budget should you request. first i want to talk about three major budgetary considerations to take into account when directing budget guidelines for the department. the first is the upcoming expiration of the harvey rose contract. the second is the third legislative aid position added to the department's budget this year. and the third is the youth commission position, and i'll just touch briefly on each of them. the budget analyst contract expires on december 31st, in 2013 which means that the department must pursue either a request for proposals process to select a vendor, or bring the services in-house. either of these options may have an impact on the department's draft budget. regarding the [speaker not

understood] position, the salary cost for supervisor increase 1.3 million during the current year due to the [speaker not understood] position. new cost will be incurred the next fiscal year as the annualization will occur -- will be providing for salary for 12 months rather than i think the 8 or 9 months that we have in the current year's salary -- budget. and the third factor is the youth commission. staffing. as a pilot program, the department is l telling the coordinator of community outreach and civic engagement youth position. we will continue to do that through june of 2013 at which case we will be able to demonstrate the position's impact. we intend on collecting data. we'll be able to provide information to the committee about the efficacy of this position beginning in the spring 2013. if there aren't any questions about the current budget, i can move to the action items that are before you.

i have put it up on the overhead. there are about four questions there. there is a committee support drafting 13-14 and 14-15 in your budget a approved in june 2012 as a baseline to start from. budget analyst the committee can authorize me to bring it in-house or to rfp the services. contemplate the third a position and annualizing the salary and fringe for those positions and the youth commission, third position. so, perhaps i can jump right into it. >> in terms of the budget analyst services, in terms of that one, can you tell me a little bit about what it would take? * this is a question that has been asked time and time again about whether or not we can actually bring this in-house or not. i think there is a fair amount of members on the board who are interested in exploring that idea. in terms of the logistics of

it, would we be able to do that immediately in time for this budget? can you help us walk through that? what would be sort of your recommendation? would it be to go through an rfp process first and then to evaluate another time? can you just tell us logistically how it would work to do this? >> yes, madam chair. it's my advice that the committee directs me to competitively bid these services. i am happy to at the end of awarding that contract, be able to take some further time and investigate the actual details around the independence issue, the chain of command and who the budget analyst would report to, how our office would interact, how they would interact with the members of the board, where exactly they would be housed here at the board of supervisors. you could also direct me to investigate other jurisdictional cities. los angeles, san diego, new york to look at how they are

provided budget analyst services. so, i think it's from the comfort of actually having a contract that you could then further direct me to provide that information to the committee. >> okay. and if we were to go forward with an rfp and eventually that rfp would have to come back for approval, could we have it be flexible such that if there was a decision by this body at a later time to actually do a contract, any type of proposal we would be flexible enough to make sure that contract is not existing at the same time as we bring in folks? >> yes, supervisor chu. there is currently in the contract the ability to cease contracting with the joint venture at the board's convenience. we would, of course, have something in the new contract once approved for that same convenience for the board should they choose to go in that direction. and, of course, we would dovetail service -- we would allow for the dovetailing of services to occur if the board chose to bring the house.

>> okay. for this item, i'd like to hear from my colleague as well, in terms of the budget and legislative analyst services it steams to me to make sense to take your advice so we are able to secure services [speaker not understood] during the time we are actually analyzing the policy to whether or not to do something in-house. i think if we were to try to do that immediately in this coming budget year, i think that would be too fast, in addition to kind of figuring out what the structure would look like. we would have to do the hiring. i think that's just not something that we could do in time anyhow. that would be my preference. and for you to come back to us at a later time to report back on how it is we might proceed forward, thinking through the prowl is choices of bringing it in. so, whether that might mean direction from the board and the future to go with other jurisdictions ask what they do, what that looks like, we would look to you for some guidance on that. >> happy to do that. >> that would be my preference as well, that we would rfp and

have a contract in place in the next fiscal year for at least certain duration of time. i've always had the discussion about an in-house budget and legislative analyst in a vacuum. it's really hard to know what we're talking about. what we have to compare with is what we have the current situation with our budget and legislative analyst. but can we expect the get the same level of service whether -- i think there are situations that harvey rose's shop has where they were able to actually bring in staff or keep times during the budget season. do we have the same kind of flexibility with an in-house staff? how would we actually know how to make the best comparison between the two to make an informed decision? i think that having an analysis and a report before us to compare will help us to decide in the future about bringing in-house and we can also

ascribe to -- in developing a plan for an in-house operation for budget and legislative analysis services. we can create a menu of options as well that we know we're actually getting ourselves into by going down that pathway. so, i'd like to create a similar pathway to make a decision around in the future in-house versus contracting out that service. so, in the meantime i'm happy to support contracting out and moving with a contract for at least a couple years before making that decision about bigger change. >> great. if i could make a suggestion, just to follow-up on your point, madam chair, that once we award the contract, it isn't until that point that i'm directed to begin the informational hearings which could [speaker not understood] how we can bring it in-house. >> that would make sense. that would limit staff in terms

of having your folks focus on completing that and doing that well and moving forward with the next step. >> okay, thank you. >> okay. and then on the second or the first bullet point which is designate the board drafting 13-14, 14-15, [speaker not understood], i think i would support having our current budget as our baseline. i would just be cautious of if there are any one-time monies put into place we would kind of strip those things out because they're not intended to be baseline. >> yes. >> okay. on the third a question, do we continue to support drafting the budget to include third a? my preference to have it as a priority for the budget, but that being said i think during the budget process last year a majority of the board members did vote to make sure that third a was in there and we budgeted it, it was also included in the second year budget as well. so, i would actually say that to be consistent with the budget we would want to include

the third aid in the budget. >> yes, that was actually thinking about a fourth aid. just kidding. a third aid, i think that's the right way to go. i'm actually very happy with our decision last year to do that. so, we can continue that as part of the baseline. that will be great. >> okay. finally, the committee supporting the draft budget salary [speaker not understood] engagement position, can you just explain to me a bit how many folks are there at the moment, kind of what the trajectory has been on hiring, and how you're paying for it? >> thank you. currently there are three positions in the youth position. there are two that are filled probably in a year and a half ago, we removed the salary from the third position. the position is actually still in our department. we have unexpected salary savings that we are willing to scrape together to actually fund this position for the next six months.

and we are currently in the recruitment process. we have the director of youth commission who has just finished reviewing the applicants and is now sending several of his highest candidates to me for a final hiring. >> okay. andin terms of a salary savings, i guess what are you foregoing to do that? >> in the department this year we have had and last year several high profile retirements which we have -- with huge endeavor tried to work with the department of human resources to fill these positions. but because there is a new system in place and things are taking a significant more period of time as everybody gets trained on the new system, it's taking us longer than we expected to hire into these positions. so, some of these positions have been just delayed hiring and it's from -- it's that extra salary that we're taking off the top of several positions.

one is in it. this youth commission position is being funded by a position in our accountant or payroll personnel. we have a clerk position that was vacant for a while. there are various positions we're hiring later than expected. >> got it. it's being funded by one-time salary savings for positions -- >> yes. >> -- that we would be paying for on an ongoing basis? >> that is correct. >> okay. i may differ on this one, but i actually would not include that as a priority for me. if we are talking about one-time savings supporting from another as an ongoing expense, that just doesn't fit. but also i think in terms of a third position at the youth commission, there are existing two positions or two full level staff in order to support the youth commission. i know that there is a large need in term of being able to get policy or to have people and have the engagement of

students and that tasectiontion a lot of efforts. but i also recognize that within our own clerk's office we have a huge amount of needs to do more things like being able to digitize our records, something that we have been woefully behind in. * takes so, if it were my priority, i would not use your salary savings to actually pay for an ongoing position, a third position in the youth commission. personally, i would rather see that money actually go towards getting more ahead of our digitization programs. and, so, that's my own preference. i think that that may be a different opinion among different supervisors and i'm not sure we're going to have a definitive direction for you on that one. supervisor avalos, any comment? >> i would support the position to be included. i think the work of the youth commission, deepening the voice and strengthening the voice of the young people, play a key role, this is a good position to make that happen. i think all too often we make decisions that don't really incorporate a lot of input from young people and this is key

for making that happen. so, i would like to -- at least have it before us that we can see what we're talking about in terms of cost. >> so, madam chair, if i could, may i ask for the permission to fund the position from my salary savings for this current yearv, placing the full salary in the draft budget, for the board then to determine the efficacy of the position in june with some measurements and we will show you in advance to get your approval on. and then come june if the position does not hold as much value as you would expected it to, that salary could be removed from the department's budget. >> that is a problem i see. once you hire someone, it is very hard and very difficult to actually not -- to say that you're going to terminate that position. >> we can hire them with the expectation that this is a pilot program to be determined by the board. >> right. i guess the other question that it raises for me is what

metrics are we using to say what the value of that extra employee would be for this purpose. and, so, not kind of understanding what those metrics would be would be hard. would it be the number of engagements that they have, the number of additional legislation that they put out? there is not really -- and i think people will value that in a very subjective way. so, i just don't think that you're going to get direction, unified direction from this committee on this item because i truly believe that in a place where we have scarce resources to deal with all the money issues that we have, that currently being able to have two members support youth commission is a good place to be, knowing that we have the possibility to help with digitization of our records that go back so many years that we are woefully behind in. so, you know, personally, i can't, i can't agree that that's the best thing to do, hire someone and say we'll keep

you on, maybe we won't. i don't think that's the best [speaker not understood]. so, i think you may have to go back and speak with the majority of the members of the board and just get your feel from those conversations. >> thank you, supervisor chu. >> just a question. are we looking to get additional support to do the digitization of our files? is that something that you could actually have here before us as a recommendation? you're looking for additional funding for it? you only do that within your existing budget? >> every year the last five years i have brought the issue of digitization before the committee [speaker not understood]. last year's budget i received approval from the committee and the board to hire a position to start the process. and what we have is a position that we utilized previously for it services is actually going to assist us as well. so, we'll have two in-house positions to help us with this,

which will be just a part of the it's duties. we will be bringing a proposal to the board in the next year to do that digitizing the board's records. madam chair, i appreciate you bringing that up as i didn't mention it today, but we are on track to bring a proposal to the board to do that. probably -- possibly in june or the following year. >> is that a project of a certain duration in time or one we expect to be permanent -- >> i understand the puc has 10 years ago started digitizing their records and they are at the precipice of doing that work. we have 2000 boxes in storage. i'm not sure how that compares to the puc's load, but i cannot at this point put a time frame around how long it will take us until we investigate how much time it takes to digitize our records.

>> okay, thank you. does that provide the information that you need to move forward? >> it does. thank you very much. >> okay. and then do you need to prepare a file -- >> yes. thank you for bringing it up. clerk young has already done the research for me. he's pulled out a motion, the original motion that it took to competitively bid these services. we are going to amend it together. we'll show it to you and to you, supervisor avalos, before submitting it to the board on tuesday [speaker not understood] and adopt without reference to the committee. >> thank you. >> thank you. >> thank you very much. with that, can we file this item? >> [speaker not understood]. >> sorry. why don't we open this item up for public comment. are there any members of the public who wish to speak on this item? >> no one here but us chickens. >> seeing none, public comment is closed. thank you very much. and can we entertain a motion to file this item? okay. we have a motion to file the item with the direction to the clerk to prepare an item for the adoption without committee

reference that reflects the conversation we've had today. and we can do that without objection. thank you. do we have any other items before us? >> that completes the agenda for today. >> thank you. we are adjourned. [adjourned] >> so nicely here, and very

happy that all of you could come out and join us, you know, on this evening. my namey. the director of the night rover challenge. i'm going to kind of be the moderator for tonight, as we go through this first-ever challenge america summit. so i've got just a few things that, you know, i wanted to do with everyone, before we get into the program. first of all, i just want to take a minute and have everyone just look around this room. in this room, we have amazing people that are corporate, nonprofit, and government, all focused on challenge driven innovation in some way or another. this is a really powerful,interf people that are gathered here to look at how competitions can drive innovation. that's what tonight is all about, is, you know, the next step in creating a real wave of

innovation. my job tonight is just to give you a little bit of background on what we are, what we're tiqp)q)s that we have.roup of so just to get going with that, i want to tell you a little bit about this thing called the night rover/< challenge. this is a collaboration between the clean tech open, unoodle, and nasa. it's a program from nasa's office of centennial challenges. and it's challengin the best innovators in america to create radical new energy storage technology. you know, way above what we have now. this is something very powerful, to be able to keep rovers going on the moon, in mars, things that could be useful, in your cell electric vehicles, something that just is a radical leap in new technology. but i don't want to go into a lot of detail on that. you'll hear more about nasa's

efforts later. and what i'm going to do1r is ge a little more background on challenge-driven innovation. and i'm going to do that just by plaijerrizing some people because it makes it a loteasier for me. i want to look at this quote, prize is a very old -- an old idea that is surprisingly powerful in our modern society. this is by a study that by mckenzie and company, back in 2010. prize is a very old idea, very powerful in our modern society. surprisingly powerful in our modern society. mckenzie also said this, 32,000, in 2010, there were 32,000no competitions, competitions, prizes, awards. that's a big number. it could be bigger but it's a big number, for one year, 32,000 competitions happened. to continue on in myk mckenzie also said this, while

tens of thousands of prizes and awards are give out every year, we've been struck by the lack of conferences or professional associations to share best practices and facilitate collaboration. now there's some kind of relationship between what doing here today, and that. i don't know exactly what it is, but hopefully by the end of tonight and tomorrow, we can start j we're doing here, can really start toqphp having an organization, or, you know, somethingd exactly what mckenzie is saying is missing. so this just brings me to myó last question. and it's why are we here. here inca this room. that's just one side of it. i'm not talking about why we're here in som galactic cosmic sense of theá@ word. what i'm talking about is a more

important part of that question. i am missing a slide in there. so the important part of that question was why are we here in san francisco. and we're here in san francisco because san francisco is one of the most innovative cities in the galaxy, and it's a very great place to be the home of the challenge america summit, the first-ever challenge america summit. so it's now my job to introduce our first speaker of the night, who is going to officially kick off the first-ever challenge america summit, somebody who has been verylfe instrumental in creating a movement around innovation in san francisco. just a few months ago, announced october as innovation month inla whole lot of work on, you know, creating a@g real ecosystem for

entrepreneurs, for governments, for everybody to create new ideas and new innovations. please join me in welcoming mayor ed lee to the floor. >> [applause.] >> thank you. thank you, josh. welcome, everybody. now that i know where i'm at, i want to welcome all of you, i want to of course thank the night challenge -- night rover challenge, nasa, of course, for being here. i also want to thank s.p.u.r. again for hosting it. you know, when i started working with s.p.u.r. many years ago, i knew they were a spacey people. didn't realize it would ultimately end like this. wanted to thank s.p.u.r. because they really have always been host for so many of our great ideas of how to do better planning in the city. i also want to thank -- i know jennifer is here as well -- i told you when i first met you, i love your title, director of

prizes? are you kidding? of course she has the longer title, but i thought that when bevan dufty and i were creating the director of hope in san francisco that we thought we had a pretty good title but now i'm going to change over, director of prizes. i may have to adopt that for some of our programs. but that's exciting for you to be here as well. certainly for green tech, open, for their contributions here, because it's really a neat blend, with the efforts that we're doing, both in innovation, as well as being greener and trying to continue earning the greenest city of america title that we earned just this past year. we've been pretty lucky. as i announced this innovation month, there has just been scores of ideas that has come forward about what we could do, how we could celebrate, and how we could expose a lot more about what our technology companies are doing here in collaboration with so many others.

but i'll begin by saying, first, you know, there are some things happening in our city that are just incredible. you know, i didn't declare myself to be, you know, the tech mayor, even though i've kind of fallen into a lot of that. i actually wanted to be -- and earned the title being the jobs mayor. the jobs for the city has been my number one goal. and we've been doing pretty well. when i first began last year in 2011, unemployment rate here was 9.6. and just a few months ago, we celebrated the milestone that it went down to 7.4. and that's like the third lowest in the state. well, today, we got some even better news. so how about we flip 9.6, a year ago, to 6.9. today, it's 6.9. >> [applause.] >> and technology is leading the way. we're home to now -- just within

our 49 square miles, we're home to 1,635 technology companies, still growing, over 225 clean tech companies, more than 100 biotech companies, and we have owncone of those categories or growing more every month. imgetting excited because that means a lot more jobs. i think we will soon lead the whole state. and i kind of say that too because marin county has traditionally been lower than ours and so has san mateo. i think marin county has been lower because we have their wine, you will probably have some tonight and san ma taiee because it's our airport that emploaxcju everybody there. so we will take credit for all three counties. i told jerry, i'm never going to complain to jerry brown, what he to happen in the state legislature, because i used the

first year and a half to insulate myself from all of that, emotionally as well as programmatically to say i'm not going to let the state hurt our city or the federal government. we've got to innovate our way out of this economic dole drum and we are doing so with inviting people here. those of you who take this word challenge, and really can really seriously bring that to fore with your best ideas, this is what i'm doing with all these technology companies. i'm not satisfied with just hosting a new company in the city, i want to know what they're doing, who's working there, where they're coming from, what they plan for the five or 10 years and how we can help them grow. as they're growing their jobs i want to know technologically how we can help. that's why i love going to accelerators, to find out what are the next five years that we're incubating so when it

comes like what happened last week with dr. yam naka working at gladstone institute at mission bay becomes one of the newest nobel prize winners in medicine working with uc-san francisco and the pharmaceutical companies there, they're on the verge of discovering wonderful stem cell research that will cure a lot of cancers in our lifetime. you're going to see some cures come out of mission bay. we're doing the right thing, we're creating this wonderful, exciting innovative spirit in the city and we're doing it, not just with the companies locating here, with the people that are here, we're asking employees of the company to step up, through our sf city, our tech chamber of commerce, and volunteer their time to improve things that are not working as well as we'd like in the city. we have on-line ability called improve sf that allows people to come on line, tackle a lot of the issues that the city ce