years. since 2009 we have experienced multiple cuts in san francisco both in public healthcare and other services. as we look at what's going on with the financial system and the money they've taken out from us i urge the board of supervisors to investigate any form of fraud or any pleens by which we can recoup money taken from the city. it's a great city and we need to fund our services and not allow the banks to take money away from us ever again. thank you. >> supervisor avalos: thank you. >> i'm rebecca morrow, the public health nurse and i live in district 5. i think about this kind of in general terms, in family terms. when you have small children, and they have done something inappropriate, they have a time out. when you have a kid in high school, and they're not making the grade, they're acting up, they're breaking the rules, their report cards, their sat scores and there are

consequences for what they do. if you're an adult and u a dui and you hit somebody you don't just pay the fine but you need to be accountable to the family of the person you killed. what i'm seeing with the vague response from the city attorney's office is well we're going to kind of look at things. we need to follow through. we need to go forward. i'm really sort of disappointed that san francisco wasn't leading the way on this and that we're waiting to see if we want to join someone else. we've seen too many service cuts. if u been to a hearing and heard these people, whose lives depend on a program that are just windd off the map it's heart breaking. now is the time to act. thank you. >> supervisor avalos: thank you very much. next speaker. >> my name is christy, and i'm a resident of bernal heights. i'm here to ask the supervisors to do everything they can to

recover any money the city might have lost, due to the libor scandal or any other shenanigan the banks might have pulled off in the recent time period. we've seen an -- horrific financial crisis leading into a recession, based on fraud, first of all, it was fraud, high cost -- based on high cost predatory lending. that in turn was bundled into fraudulent mortgage-backed securities. there's been fraud at every step of the way and thus far we've seen hardly any accountability against the banks. and it's really time, now, we have this opportunity to investigate any fraudulent lending at the local municipal level, and to recover that. it seems that a good bit of this

money was perhaps in the interest rate swaps at the airport. i'm sure there are other areas where that has happened, and this is based on maybe those interest rate swaps help bring -- provide insurance, and stability, but nonetheless, there were losses there because it was based against a much lower -- the banks actually were based -- had a much lower rate. so i think there's opportunity there if we do study, that we can see that there are a -- a lot of money has been lost and it's really time for the city to take a stand, because it's really at the local level where we can see -- finally have some accountability, some restitution, and we're only asking for what has been lost, what has been documented in our losses. we're not asking for compensation or other kinds of

restitution. so i do hope you'll take action there. thank you. >> supervisor avalos: thank you. next speaker please. >> hello. i'm sherry zin from sciu1021. a long time ago when i was a little girl my grand papa told me don't loan people money because you're not a bank, you know. i still believe in that. i'm 51 years old today. so i find it pretty unjust when, you know, cities and counties, or even banks treat me as though i am a bank. one of the supervisors, sean elsbernd came to the union hall with all of the retirement and everything, when it was thought to be in crisis and drew all this stuff all over the walls and everything, and how we

needed to come through, and we needed to help out this crisis and everything. to the point that the city-county helped make this a law for us to pay. now, it's presented in our faces where we've been horribly, horribly lied to about our retirement system, and what was being done with the money. not only do i think it's your duty to research this area, and get this money back for us, but if you don't, i think it's a big shame on you. i love working for the city-county of san francisco. but to me, this is -- it's a huge slap in the face if we do not take care of this. it only says to the rest of the world that, you know, we're a city that doesn't have any mocksy, and it's, you know what, we're a powerhouse. we're san francisco. we need to not see what other places are doing. we need to go out there and lead this, and say this is what

happened to our citizens of san francisco, and we will not stand up for that behavior. thank you. >> supervisor avalos: thank you. next speaker please. >> hello. my name is brenda baros. i'm a -- member out in san francisco general hospital and i've been before you guys a lot of times before. and everybody knows how i feel about us having to pay more money towards our pension. and when i hear about things like this, it infuriates many of the city employees because, you know, what we were told, and what actually happened were two different things. so we're still stuck paying all this money. so what we want to say to you is we hope that you guys will all get together and make sure that everybody, not just us, is paying their fair share. if the banks are ripping off money from the city, from our pension plan, which caused it to

be in problems, abilityd then you have to come to us to get more money to cover the problems, then it needs to be fixed. and we insist upon that. because the city cannot come to us for more money, until you collect all the money that you haven't collected already. i know even for healthy san francisco, they're still not collecting all the money from the businesses. i mean where does it end. when do those other people have to pay. you hold us accountable all the time. but when you going to hold all those people accountable too. so we're hoping that you do that. i'm going to be doing everything i can to make sure that the banks don't get away with this. i mean they've gotten away with it. too many of my coworkers have lost their homes behind those loans that they got, that they shouldn't have got. it's just outrageous that they keep getting away with this. the richest of the rich keep screwing the regular person.

is we hope you stand up for the regular people and not the banks. and not the big businesses. we need somebody to stand up for us. so i really hope you do this. >> supervisor avalos: thank you. next speaker please. >> i'm thanking you for your hearing. my name is ion hado, a resident of glenn park. i own a rental property. first blow, in 2008, generally regarded as due to malfeasance by the financial institutions, an economic collapse occurred and many of us, millions of us, possibly some of you, were stripped of your wealth. i am in jeopardy of losing my home, the rental property, due to non-payment for my mortgage. thankfully due to ace, i'm a

member of the alliance of californians for community empowerment, that hasn't happened, but it continues to be a risk. second blow, the -- we're learning the financial institutions conducted their businesses with municipalities in the same manner as they conducted their businesses with individuals. i learned recently about a program whereby money was provided to elderly people who had not been paying for the property tax. i'm in that situation. i was informed, although i might be eligible, the fund has been eliminated. i believe it's a california program, and california doesn't have money for the program. third blow, now that i have not

been paying for my property tax, i'm impacting san francisco's financial situation. meanwhile, so i understand, we all, the american public, are subsidizing the low interest rates at the benefit of the financial institutions. in my regard, we are either part of the problem, or we're part of the solution. i'm requesting of san francisco that it act to communicate to the financial institutions that say there are consequences to their behaviors. i'm requesting if san francisco has lost money, however much, that you ask for its return. thank you. >> supervisor avalos: thank you very much. i'm going to call a couple more

cards before the next speaker. annie sims, elliott cats, and ian hadel. >> i'm elliott cats. i don't know what happened to the other person. 35 years ago, i founded an organization here in san francisco that currently produces the ethnic dance festival with the hotel tax fund. in those days, i was fighting for the cultures of the minorities. there was a very strong effort to keep the ethnic minorities down by hotel tax fund giving all their money to the, in quotes, white cultures. that has been balanced out. now i see a similar kind of situation happening with the way the banks are treating the minorities, taking advantage of them and so forth. last week, i sat here and i saw

people literally crying with tears in their eyes, people with hiv, people with the catholic charities of america, pleading, don't cut back their budgets, their lives depending on it. i'm here to basically say that you have an obligation for -- not to turn your backs on people in need. and if there is an opportunity here to have additional funds, you should not just simply say oh, we don't want to be bothered, let's wait and see. there's too much at stake here. the lives of people are at stake. the homes of people are at stake. the health of our children, the education of our children. so, please, stand behind your obligation. that's why you were voted in. people trusted you. please don't turn your back on them. thank you. >> supervisor avalos: thank you. next speaker please.

>> good afternoon. my name's annie, and i'm a member of seiu 2021 and a city worker for -- i'm disappointed the city took so long to notice this problem which have exist since 2007, and i have been sacrificed because as a city employee, i have been doing -- give taxes since 2007 and at that time my minor son that was in high school, second year into a private high school because of this crisis that the banks created, now i have to give back to the city, i have no choice but to pull my son out from a private school because he's achieved scholarship was cut due to -- in order deficit. so at least if we're doing something i'm really wishing and hoamg that san francisco will take ownership and leadership of

this project, and be the leader to -- up with other counties. so hopefully we'll get down to this and find out how much was due back to the city. because i'm tired of the continuing to pay back as i have nothing to give back to the city anymore. and also, want to know that the bank not double dipping. they have been triple dipping us. first is the interest from the loan, the swap. secondly as the foreclosers and also the bank has been charging us penalties for being late, and also the increasing our interest, to -- interest rate and also late fee. so the banks are double dipping us for too many years. it is time to put a stop to it and get back what is due back to us. thank you. >> supervisor avalos: thank you. next speaker please.

i recognize former supervisor chris daly. >> thank you, supervisors. my name is chris daly, i'm the political director of sciu local and a vested san francisco employee retirement system. when i was sitting here, hearing from that there were losses due to the libor fraud in the retirement system i couldn't help to think back all those times that i sat over there, listening to chamber of commerce talking points about how public pensions are breaking the bank. today, we definitively heard it's the other way around, it's actually the banks that have broken the san francisco retirement system. you'll have to excuse me if i seem a bit incredulous, after a city presentation that was pretty much devoid of resolve to aggressively pursue the city's losses, due to bank fraud.

but if you wade through the minutia of staff presentation you basically come out with this. the city lost millions of dollars, whether it be the airport, the retirement system, you know, the general fund investment pool, various places. san francisco lost millions of dollars due to libor fraud. and anything other than an aggressive response to get every nickel of that back is not worthy of the city and county of san francisco. colleagues, we were all here one month ago today to discuss the city's efforts to cut wages for some of the city's lowest paid job classes, classes disproportion eely occupied by men and people of color. i think that we thoroughly addressed that issue a month ago, with the exception of the amount of city resources, staff

time, and expenditures to pursue those cuts. and i'm talking about multiple staff at dhr, calling jurisdictions all over the region to get data on 45 classes, obviously discussions with the mayor's office, legal strategies in the city attorney's office, fighting, you know, the big, you know, sciu purple union, and to dut these wages. -- cut these wages. all of these resources and do you know what the san francisco examiner reported as the savings of the city's proposal to cut those 45 classifications was over the next two years? $76,000. the city will save by going after some of the lowest paid workers in san francisco, and mickey and team had it together. they spent huge amount of resources. now we have a situation where we

have millions of dollars in losses, due to bank fraud. and the city's presentation -- >> supervisor avalos: continue. >> thank you, supervisors. i appreciate it, supervisor avalos. you came here prepared, and have brought into the light a subject matter that is relatively complicated, but i think you presented it in a way that's very popular and easy to understand. so i thank you for your leadership on that. >> supervisor avalos: thank you. and we'll thank colbar for that. any other member of the public who would like to comment? please come forward. >> just want to say -- my name is jurisa. i used to work at san francisco community college. i worked there 24 years. i was the lead custodian. ima proud custodian. imstill able to work but i had to leave because i could no

longer do four, five buildings, you know, where the people are gone, you know, they've died or something's happened to them and they've not been replaced, staff has not been replaced. yes i know the college has had its fair share of problems. but the workers are still working. they're still doing their duties. and you know, mr. avalos, i tell you, we love you. we thought you were the best fit. and i'm usually never wrong. i'm glad that you are still what we thought you were. you know, i did a lot of walking. i've walked for everybody in here at some point. walking the neighborhoods, being in it bayview, wherever. i had to move to oakland because i couldn't live here. i can't afford it. i got a one bedroom apartment. i forsake that, trying to have a home, because that wasn't going to work out. but you need to know that you

can't serve two masters. you will either help one or you'll do the other. you can't do both. and there are people who deserve to, you know -- even if you can't get back but five cents or whatever it is you've got to get we need to look out for one another. that's why we were all put here. this is a town that, you know, is well advanced in terms of being diverse. you know, it's because we all are put here to help one another. we're not here to just be -- you know, just talking and looking around. and, you know, i guess since i moved to oakland i feel like, as the kids would say, i feel like i've been played. you know what i mean. played means, you know, where people play you, and, you know, then you sit there and you say, wow, really, i thought they were my friends, you know. and i could remember when you all laughed. you said you all get out there and walk for us, and we going to take care of you.

so now i am 63 years old. i'm still strong. but i had to leave because i couldn't do four or five buildings a day. you know what i'm saying. that's hard work, honey. when i started, i started here, at this city hall, with diane feinstein. that was the mayor when i started work. i shined and buffed floors every day. i'm still able to do that, but i knew that my health was going to suffer if i kept that up. you all please help us out. don't leave us unattended. we know everybody. you know the bank, it's always a game. we know that. but i learned something from j. z. he said you can't knock the hustle if you're not helping nobody. thank you. >> supervisor avalos: thank you very much. next speaker please. >> my name's steve bristow, a business agent with 1021, born

in 1949, a little bit older than the last speaker. i'm a married man which means i get an allowance. the other day i parked in front of starbucks, ran in to get my coffee, in there not more than three minutes, i came out, there was a citation on my vehicle for parking. the second thing that occurred to me was, when i opened it up, my god, this is a stiff price to pay for a cup of coffee. being on allowance, i had to go back and plead with the spouse to try to find money to pay for the ticket. the consequences of it is i'm not going to park in front of starbucks without a bag of quarters anymore, ever again. there is a consequence to that. there's none for the banks right now, absolutely non-, unless people go after them for what they have done. and what they have done 800 --

is it trillion? 800 million to the world, and they're fined a total of what, 20 or 30 billion altogether, it's just not right. there are no consequences. san francisco needs to take a lead in this. thank you. >> supervisor avalos: thank you very much. any other member of the public who would like to comment? and seeing none, we can actually close public comment. i want to thank members of the public for being here, and sharing their concerns. i do believe that this it hearing is really addressing a real issue, a real problem. and i appreciated comments from supervisor -- former supervisor chris daly, that there have been choices the city makes about where the city puts its resources, and trying to recover money, and makes a lot of sense that where we see a large amount of real fraud and manipulation,

the banks, that we actually do our work, our effort, and fulfill our obligations to workers, taxpayers, and the public to recover any losses. and i want to encourage that from our city financial officers, and our city attorney, and i hope to see that come together in the next -- very short period of time. let's see. i would actually like to request that we continue this item to the call of the chair. and also want to encourage support from perhaps the budget analyst, mr. rose, if there's a scope of work that you might be able to help us with in terms of an analyzing how we might pursue understanding what losses have been to the city, your office might provide extra help to our financial officers in the city,

and what ways that we might be able to have any additional recovery as well. that's something that you can provide some help with? >> harvey rose: mr. chair, members of the committee, we would certainly be happy to prepare a scope and submit it to you for approval, absolutely. >> supervisor avalos: how long do you think that would take? >> harvey rose: supervisor, could we defer saying how long it would take at this point, until we take a look at our workload and see when we can do this? >> supervisor avalos: i think that's okay but everyone else -- doesn't make sense that you -- >> harvey rose: it would be before budget, supervisor. >> supervisor avalos: thank you. i'm just joking anyways. okay. so colleagues can we continue this item? >> chair farrell: supervisor mar. >> supervisor mar: i'm supportive of continuing this conversation. i think there was a disparity

between ace and others, are saying the hundreds of millions of dollars of losses from bank fraud versus what our department reps are saying about what the losses are given the fixed rate versus variable rate loans and various financial holdings that the city has. so i want to see from the budget our independent budget and legislative analyst kind of what their numbers look like. i think that would have been helpful for today. i also wanted to say that i am also frustrated by the city attorney's response of the wait and see approach. i don't really know what that means. i'd like more specifics on what communications there have been with the other cities from richmond, to san mateo county and the various other cities and counties. and ideas about, as some from the public testimony said, we can take stronger leadership from our city to recover every single penny as people said. i'm looking forward as it comes back to us that we have stronger

numbers to look at, but also that we take a more aggressive approach as our city attorney and our city looks at how we can recover money, especially as we go into the budget season. thank you to supervisor avalos and ace and sciu for bringing this forward as well. >> chair farrell: thank you, supervisor. with that we have a motion to continue this to the call of the chair. can we do that without opposition? so moved. >> supervisor avalos: thank you, colleagues. >> chair farrell: all right, mr. clerk, can you call item 2. >> 2. ordinance appropriating $38,689,454 in the department of public health, including $4,314,849 of general fund reserves, $8,410,605 of the city reserves for state revenue loss, and $2,600,000 from community mental health services; surplus hospital revenues of $6,504,000 in general hospital, $12,560,000

of laguna honda hospital revenues, and $4,300,000 of laguna honda hospital reserve for debt service (senate bill 1128) revenues are recognized, as well as expenditure reductions of $7,389,546 and additional expenditures of $35,070,000 at san francisco general hospital, and $11,009,000 at laguna honda hospital. >> chair farrell: thank you very much, mr. clerk. we have greg wagner from the chief financial officer from public health to present. >> thank you very much, mr. chair. gregg wagner cfo department of public health. we are here today to request a supplemental appropriation based on our current year deficit for the department of public health. as you all know, we were here last week, and discussed in some depth the history behind our

financial challenges, and some of the issues that we have been working with. so i won't revisit all of that. but i'm happy to discuss it further, if you would like. so we'll go through very briefly where we are on overview of the request to end the budget and legislative analyst recommendation. just as context, we have, in the department of public health, a 1.67 billion dollar annual operating budget. of that budget, about $1.2 billion is revenue brought in by the department through patient revenues, grants, other funding sources, and the remainder is general fund. our current year general fund deficit is $31.2 million. this is an updated