in the budget office to the board of supervisor, she's been with me all five years. to think and see her grow, be in this place where she's now the supervisor brings me so much happiness. it couldn't have happened to a better person. i think you will all get to know katie and you have see how hard she works for the district today. today we were wondering where she was before the swearing in and she is in my office sending the last newsletter. we are as a city so lucky. it couldn't have happened to a better person and i want to thank mr. and mrs. tang for raising a wonderful person and an allowing know work with her. i couldn't be happier. supervisor tang? [ applause ] >> thank you so much, carmen. i

would like to thank everyone who is here and thanks for supporting me throughout my career. i'm so thrilled that a lot of my mentors i saw today have been able to join me today. a lot of what i learned i still bring with me and hold today. thank you for being here. i would like to thank my parents. my partner. i look forward to working with you, members of the board and i have to thank mayor lee forgiving me this incredible opportunity. i want to acknowledge tammy black stone, my dear colleague. and i can't look at carmen, i'm going to cry. i really have to thank

carmen. someone said yesterday at her last board meeting. it really is a testament to carmen. the fact that she is able to mentor me. she set a really great example to me and someone i look up to in the highest regard. thank you carmen, assess or chu, thanks to everybody again. [ applause ] >> all right. let's go to work for the city of san francisco. thank you everybody.

>> good morning, everyone, and welcome to the san francisco board of supervisors budget and finance subcommittee meeting for wednesday, march 13th, 2013. my name is supervisor mark farrell. i will be chairing this committee. i am joined by supervisor eric mar and supervisor john avalos. i would like to thank the members of sfgtv who are covering this meeting, jennifer low and jessie larson and the clerk of this committee, victor young. mr. clerk, do we have any announcements? >> yes. please silence all cell phones and electronic devices. completed speaker cards and copies of any documents to be included as part of the file should be submitted to the clerk. items acted upon today will appear on the march 19, 2013 board of supervisors agenda unless otherwise stated.

>> thank you. mr. clerk, can you please call item number 1? >> item number 1, resolution concurring with the controller's establishment of the consumer price index for 2013, and adjusting the access line tax by the same rate. >> thank you. we have monique zamuda from the controller's office. >> good morning, members of the committee, monique zamuda deputy controller. consistent with the 911 fee requirements, the controller reviews on an annual basis, the consumer price index that allows us to set the fee based on the consumer price index that we have determined this past year to be 2.22%. and what is before you this morning is a resolution agreeing with that and authorizing us to increase the access line tax rate consistent

with stpi adjustment. >> okay, thank you very much. colleagues, any questions for ms. zamuda? seeing none, we'd like to open this up to public comment. any members of the public who wish to comment on item number 1, please step forward. good afternoon, budget subcommittee. ♪ you fell into a budget ring of fire the tax, it went it went all hire and it burns, burns, burns the ring of fire because your mind the taxes shine you walk the tax line because makes the tax shined you walk the line >> thank you, mr. paulson. (applause) >> if there are any other members of the public who wish to comment on item number 1, seeing none, public comment is closed. colleagues, do we have any discussion? can we have a motion to approve

item number 1 to send it to the full board with recommendation? and we can do that without opposition. mr. clerk, can you please call item number 2? >> item number 2, resolution authorizing the sheriff's department to retroactively accept and expend $599,894 in funds from the u.s. department of justice, office of justice programs, through the second chance act reentry program for adult offenders with co-occurring substance abuse and mental health disorders, for the keys to freedom program to increase public safety, and reduce recidivism among incarcerated and recently released women and transgendered adults in the city and county of san francisco; and waiving any indirect costs for the period of october 1, 2012, through september 30, 2014. >> thank you. and we have coner johnson, legislative aid for supervisor london breed whose item this is. mr. johnson? >> thank you. johnny cash medley this morning, that's great. supervisor breed is happy to support and accept and expend on behalf of the sheriff's department. this will allow them to collect about $600,000 from the federal department of justice to benefit the sheriff's keys to freedom program which serves women and transgendered adults in the city's jail system.

and we have bri ma shorter chief financial officer here to discuss the [speaker not understood] with more specificity and answer any questions you may have. so, thank you. ~ mahorter. >> good morning, supervisors. i'm the new cfo of the sheriff's department. this is my third week on the job, so, have mercy. the keys to freedom grant is a department of justice grant for $600,000, the term of the grant is two years, and we will be using it to fund a program called keys to freedom. the city doesn't have to provide any matching funds and the target population, as coner said, are women and transgender, people who are either incarcerated or have been released from incarceration into the community of san francisco. they are medium to high-risk offenders and they have dual diagnoses of both mental health disorders as well as drug addictions.

we will be partnering with he will health right 360 which you might better know as walden house and the haight/ashbury free clinic. both of these organizations are long term partners of both the san francisco sheriff's department, the department of public health, and the california department of corrections. the services that we will be providing to these women are first and foremost a needs base assessment which will be done through compass, which is the department of adult corrections or -- i'm sorry, adult probation's system which does a needs based assessment of inmates and identifies which services are most appropriately provided. based on that diagnosis, we will be providing services that [speaker not understood] management and getting to the roots of criminal thinking. the majority of the funds will be spent on three case managers as well as two supervisory case management positions both of which will be provided by health right 360 as well as a

small portion of support for administrative staff in the sheriff's department. if you have any questions, i'd be happy to answer them. >> colleagues, any questions? okay, thank you very much. we don't have a budget analyst report this time. so, this time like to open up to public comment. any members of the public who wish to comment on item number 2, please step forward. hello. ♪ city budget hard to eat city, i hold the lock gang you hold the freedom key open your heart to us i hold the lock and you hold the freedom key and someone's knocking at the door somebody's ringing the bell

do me a favor, city open the door with this freedom key and let them in >> thank you very much. any other members of the public that wish to comment or sing on item number 2? seeing none, public comment is closed. colleagues, once again, any discussion? like to make -- can we have a motion to send item number 2 forward with recommendation? so moved, we can do that without opposition. mr. clerk, can you please call item number 3? >> item number 3, resolution authorizing the recreation and park department to retroactively accept and expend a grant of up to $3,350,000 from the trust for public land for the design and construction of improvements to father alfred e. boeddeker park for the period of august 2012, through june 20, 2014. >> thank you. and we have abigail from our rec and park department. >> good afternoon, supervisors. my name is abigail ma her, i'm with the park and rec department.

thank you for your review of the resolution for the accept and expend grant for the decker park. this grant from the chester public land also known as tpl is supporting and will continue to support the improvements being made at boeddeker park and grant house. [speaker not understood] inkind professional services, project management, consultants, design, construction management, those types of things towards the boeddeker project. in addition to the in-kind portion of the grant, tpl is holding $646,000 construction contingency that could be spent on the project during construction. once the recreation and park department has authorization from the board of supervisors, then the rec/park project manager will request parts of this construction contingency if it's needed during the project.

i'm happy to answer any additional questions. >> thanks very much. colleagues, any questions? okay. seeing none, thank you very much. at this point like to open up to public comment for item number 3. and anyone from the public wish to comment? ♪ you're looking over a four-leaf clover land that you overlooked before and now that the item is on the budget floor i know you're gonna give it even more cause you're looking over a four-leaf budget clover for this land grant, too and you're looking over a four-leaf clover so remember to give it even more >> all right, thank you very much. any other members of the public that wish to comment on item number 3, please step forward. my name is rebecca evan son.

i encourage you to accept this grant. when i was first appointed to the open space committee back in the '90s, the first event i attended was the original opening of this park. it needs to be improved to serve the neighborhood, which is in dire need of green space. thank you. >> thank you very much. any other speakers? all right. seeing none, public comment is closed. i agree with that comment, this is going to be a great project. colleagues, we do have one technical amendment inserting dates into the last item of the title, august 13th, 2012 through march 3rd, 2014. like to make a motion to amend. >> second. >> we can do that without opposition. and take a motion to approve this item as amended, send it forward with full recommendation. >> second. >> we can do that without opposition. okay, mr. clerk, can we call items number 4 and 5 together? ~ >> item number 4, hearing to review the status of the

america's cup organizing committee's efforts to raise $32 million from private sources to reimburse the city for a portion of the city's costs related to the america's cup, including an update from the controller on the acoc's financial position, what the city's potential liabilities are if the acoc fails to raise this sum, and what the city's options are for recovering any outstanding fund-raising obligations, and will also consider the original determination of financial feasibility for the america's cup, and whether the city is still responsible for staging the event when the event organizers have not fulfilled their financial obligations. item number 5, hearing to review the status of the america's cup event authority's compliance with their commitments in the workforce development and local small business inclusion plan to comply with the san francisco's mandatory local hiring program and use union contractors for all construction and temporary installation work, and with the prevailing wage provisions in the san francisco administrative code. >> thank you very much, mr. clerk. this is a project i certainly have been involved with quite a bit on the america's cup board committee.

he's they'rextion have been called by supervisor avalos. so, i will turn the mic over. >> thank you, chair farrell. and thank you, colleagues, for entertaining these two hearings. these hearings are a status report on the fund-raising effort of the america's cup organizing committee as well as the status report on our business inclusion, small business inclusion plan, our plan for prevailing wage, and our plan for local hiring as part of the america's cup effort. back when he approved the plan last year, last march, there was a strong effort to make sure we were going to be meeting the needs of san francisco residents. we wanted to make sure that we have specific measurable outcomes that would show we're actually hiring local residents and we're bringing our businesses into what will be benefiting as well from the work of putting on the america's cup and the america's cup tourism. when the america's cup first

came to me in my office in 2010, it was probably september 2010, we were asked if we would just sign on to an early, early notice that we were approving the project. i could not do that at the time. i felt i was actually signing onto a blank page and i needed to have more information, more detail. i think the idea of the america's cup and bringing events like this to san francisco is god and worthy, but we have to make sure we are doing our due diligence, that we are minimizing what the overall impact would be on our environment, on our bottom line, and what it means for the city to be putting this on. ~ good we have to answer a lot of questions. and i think the public process we've had about putting on the event here in this committee, on other committees of the board of supervisors, and other agencies around the bay that permit a lot of the efforts of the project need to be covered and need to be addressed. and that's where -- the public

process is important to show we're doing our due diligence and creating in a transparent way for the city. i actually have heard the reports from our departments, office of economic workforce development, olse, office of labor standards enforcement, that we actually have not been living up to our commitments for the america's cup, especially around small business inclusion, especially around prevailing wage and local hire. i think that is something that is significant. we come here, we have discussions in our committees. we are told that certain things are going to happen and then when it comes to actually implementing a program that's actually going to show how we're going to support local residents, that that is not actually performed. and, so, i see a hearing like this today is to make sure that we can actually right the ship, that we actually move forward and actually do what we say we're going to be doing. we actually have to look at applying certain measures and

penalties [speaker not understood]. we'll have a discussion about that here today as well. on the effort around fund-raising for the organizing committee for the event, originally there is a commitment that the organizing committee would endeavor to raise $32 million that would offset what the city would put in to support the project. we know the organizing committeev, for many reasons that will be discussed today, has not actually lived up to that promise. we've been told now and i would agree that our event of the america's cup is not as big as we expected it to be so our costs will be somewhat less. that could actually a leave -- alleviate the pressure to raise $22 million. what i'm concerned about today is since we've only raised maybe $13 million, i'll get a report from the controller what's been raised to date, we actually don't have to raise that much more money because we're going to use the revenue

from the overall economic impact from the america's cup to actually pay for the effort that will replace what we're expected to get money raised from the event. that to me is not what we had expected to see moving forward. we would actually expect that the city would live -- the organizing committee would live up to its commitment even if they use the word endeavor to raise money to offset general fund costs. so, we have money that's coming in from revenue. that can get siphoned back into our overall general fund that could actually move towards benefits for perhaps the port, perhaps for downtown, but also for our neighborhoods, for park, for streets, for public safety. those are things the general fund generallies covers. so, this hearing will cover these two big topics. ~ i want to make sure we give ample time for the fund-raising effort. we'll be doing that at the end. i want to actually start off talking about the efforts around prevailing wage, local

business enterprise and participation and local hiring. so, i'd like to first before calling in our departments of economic workforce development, olic, i'd like to have mark provide an overview about some of the commitments that were made from the america's cup side and the port, and then we'll get into the meat of the hearing. [speaker not understood]. >> good morning, supervisors, mike martin, america's cup project director and the office of economic and workforce

development. very happy to be before you today and supervisor avalos, i want to appreciate the way you framed the hearing. i think it's exactly right. certainly we want to show both to the people in this room and the city that we are living up to our commitments and looking ahead to this year's events that we're able to do an even better job of bringing home the economic benefits and the social and sort of a broader, i guess, san francisco image benefits of america's cup. you know, i think my team remains very excited. and as do all the people who work with in city government and the event authority to put on a first-class event. and it starts here. it starts here with how we're paying for it. it starts here with how we're bringing jobs and opportunities to local businesses and local workers. so, i'm going to do a brief overview of sort of how we got to today. but in the timeline since december 2010, then i'll hand it off to representatives from the off to you from here. thanks. can we have the slides up, please?

so, to begin, in december 2010 as described by supervisor avalos, san francisco was selected as the host city for the 34th america's cup and its related rigattas. included was a host and venue agreement which was an agreement that outlined the roles and responsibilities of the city, the america's cup organizing committee as a local nonprofit corporation formed to support the city's efforts in hosting the events, and the america's cup event authority which is the private entity that is basically the project sponsor in this case. i realize that those names and that alphabet soup sort of get confusing so i just want to emphasize the event authority is the entity, the organizing authority is the local nonprofit. in december, that agreement before i move on, that agreement obviously required us to pursue approval under the

california environmental quality act before we could actually agree to proceed with the project. that was something that was very near and dear to everyone's hearts to make sure we do this in the san francisco way and really address all of the potential impacts. we had a very intensive effort over the course of 2011 to pursue this c-e-q-a clearance. we did have the final environmental impact report certified the end of that year in december. and then we moved on to approval at the board of supervisors. as many here recall, originally there was a set of approvals that included a long-term developments arrangement with the event authority. that arrangement was not finally approved and we sort of recast the agreement as more event focused with the port of san francisco carrying out a number of the capital projects to host the event at the port venues. and that's the agreement that was brought back to the board of supervisors in march of 2012. that agreement attached the

workforce development and small business inclusion plan that will be the focus of our attention today and, therefore, that agreement sort of becomes binding on the parties with the execution of that lease disposition agreement. so, the parties -- that approval included a delegation of authority to finish off the lead disposition agreement including some issues that we still had to negotiate around the security for the performance of the activities. obviously with the complex project like this that had sort of changed role and responsibilities. we had to similarly change the roles and responsibilities for who was securing who for what construction work, for example. those negotiations proved difficult. we were basically seeking an insurance product that was very much a one off because not many people have to host an event of this kind. and eventually the realization came to all the parties that we weren't going to achieve that particular piece of a delegated authority. so, what we proceeded to do was

on august 14 of 2012 we negotiated a lease disposition agreement that specifically set forth that the security provisionses would have to be reapproved by the board of supervisors, and it was the execution of this agreement that brought all of the other pieces from the board approval into play including the workforce plan. shortly following that august 14th agreement execution, the event authority moved quickly to set up for and host the august america's cup world series events from august 21st to 26th. because of this timeline, i just want to point out a couple things that are important for the hearing to follow, we did not have the lead time to get out ahead of these issues with respect to small business inclusion and the local hiring and the workforce plan. it's certainly not an excuse and it's only an explanation to say i think this year we have a much longer runway to do things appropriately and we're hopeful this hearing will help us really layout what that work is

going to look like. so, moving on, about five weeks later after that first event, we held a second event from october 2nd to seventh, that was the second america's cup world series rigatta. also september 2nd the board approved the provisions before the lisa disposition. at that point we had a finally approved agreement. again, october 2nd to 7 i think fleet week and other events, but really gave us a really good test of all of our operational plans and part of why i think i can express a great deal of confidence about the work that's gone into the budget projections with you later in the hearing. moving on from the october events, as i mentioned earlier, a key provision of the new lease disposition agreement was the port of san francisco constructing the improvements at piers 30-32 that was originally part of the long-term development arrangement that was not pursued. the port of san francisco always had the responsibility

on top of that to construct the pier 27 cruise terminal. i'm happy to report that both of those construction projects were completed by their deadline of march 1st, 2013. again, i'll come back to this later in the budget hearing, but that was a key issue because, as the supervisors know, when we came back in october, one of the risk management approaches was to basically self-insure for certain risks associated with those construction requirements. and at the same time purchasing extra insurance on other risks. so, that strategy has paid off and i think -- i really want to thank the port, dpw for their project management skills as well as turner construction for achieving that. looking ahead, what we have in front of us is the cup challenger series from july 4th to september 1st, 2013. followed by the america's cup final this september. so, right now we are very much in the stages of ramping up our efforts and really forming our plan based on what we expect for this year and i'll talk

more about that later in the hearing. so, with that i'll sort of stand down and move on. >> okay, thank you, mr. martin. next i'd like to call up donald levitt from the office of labor stands enforcement. my office has been working with the office of economic workforce development, with labor unions, with small businesses, community groups, all to make sure we're maximizing what we can in terms of the benefits for local residents and small businesses and for workers. we've actually found that through thea departments that there have been violations, violations of prevailing wage, violations of the first source agreement, and violations of the workforce plan for local business enterprise participation. i know mr. martin talked about a lot of the -- there was a lot of lead time that the office of

economic workforce development had in order to put in place the standard for these programs for prevailing wage first source and local enterprise business participation. but i'd like to say we knew all along these were going to be things we wanted to do as a city. we made a commitment we would have the highest stance possible for these types of programs and we didn't live up to them when it came to that happening last year. so, donald levitt is here to talk about her findings, findings of the office of labor standards enforcement and i'll cede the mic to you, donna. ~ >> good morning, supervisors. the office of labor standards enforcement conducted an audit of the america's cup world series events after receiving a complaint from carpenters local 22 that alleged that employees who were installing bleachers were not being paid the prevailing wage rate for the work they performed. on the day we received