you can bring those over here >> the airport is not in the jurisdiction of the building trades but in the jurisdiction of the - bill has written to you in this regard but he couldn't be here he asked me to express the clear channel contract and it's the most union friendly company. >> thank you very much thank you. next speaker. >> i represent the carpets union the local 22. ispectro speck here today because so far as the local work is concerned we share it and we get a lot of work out of that as

well. clear channel has a long history of working at the airport and supplying jobs and i'm a big proponent of the trade - like to refer to the wheel of trade workers. because they make wages and benefits this actually allow them to save and spend money their traveling through the airport as well their digesting this as well. so i approve - i ask that you approve the clear channel proposal and thank you. >> thank you very much thank you. next speaker. >> good afternoon supervisors. i'd like my brothers to stand

local 2 61. that he represent thousands of men and women across san francisco and san mateo. this is safe to say this is a contract we've been watching for months. where the labors come down on the proposal now we know that clear exchange is going to hire local workers we're in full support. we can make the local contract work on this and put the san franciscans onto the jobs and make all community members that are impacted by itself this

commitment can set the stage for a new way of construction work. we ask you to support and approve this contract. thank you very much >> thank you very much thank you. next speaker please. >> good afternoon we're living in a new world every 18 months it will get faster and larger. the labor component of this i'd like to say that clear channel mobile is to reduce labor across the board. anybody who does their homework know that those folks have is a admission to reduce they're labor costs twron w between now and 20/20 with a digital

contract they won't need the amount of employees they have today. i would agree that the fact is with digital billboards and less labor they could accrue revenues that make double $10 million as the next year's go by you would hope the city consider that making plus is the way to go. and additionally i think originally this was $5.6 million i believe was in the r s p? so there's isn't going suspicious when somebody doubles the required amount to go from

5.6 to nearly $10 million as a minimal guarantee. thank you very much supervisors >> thank you. next speaker please. >> good afternoon for us we started tracking this issue around efforts to expand the construction related work and landscaping. this is something in place we want to see the local ordinance and points can he came up you've heard if from the labors and some discussions from the airport we personally would like to get consummation on this but whether this is a requirement

today but this could be a place to start prevailing wage in construction work to do billboards and promote the community to do that. this may have happened it's something that would be great to hear from the airport. that's very positive. can't really speak to the making or certain of those other dynamics but with respect to the labor dynamics this would be a really good thing so again, i'd like to hear an answer to the proposal. if that's the case we can use that labor on this work >> thank you. next speaker please. hi.

>> i'm here with the same ideas around the willingness of clear channel to hire the construction of those billboards. initially we were coming up in support of clear channel doing public service announcements as well as coming tout out to host services which is an area that a lot of people wouldn't come. we're in support of clear channel. the local hiring is outstanding >> thank you very much.

anybody else want to commit? >> i'm also about striking a good deal god knows i don't want to see any more parking meter hikes. if you guys haven't got the money you need the non profits are being told how you're going to cut their services god knows how many trees would have been planned. i support this because quite frankly we don't know where the economy is going. the job numbers are not through the roof and the housing economy is not back since nobody wants to lend us $2 billion to do our

- nobody can guarantee me he we're out of the deepwater yet. i'm listening somebody telling me about the money like how much does the making - how would an actual dollar finger in chicago what are they bringing in is it $0.89 a person what is the actual raw number. we're talking about the statistics and pirgz without actual saying what are the hard numbers we're getting. let's pass this so that community people that have good relationship with clear channel can keep it rolling >> thank you very much any other members of the public wish to commit?

seeing none public comment is closed >> thank you. i really appreciate this discussion i think it may have gone a little bit too long. it's a way to set up an rfp and lazy at the airport. i actually believe that the right way to do is it to have amassing. the question is whether we'd have a lower making but at the same time, we could actually see when we're actually getting in the revenue of $9 million we can see a larger amount of money and with amassing only we'd be leaving money on the table.

so therefore i am actually in the position to actually disapprove of this contract and would like to see come back what is the standard of the airport and having the making and gross income. >> thank you supervisor campos. >> supervisor. >> i was going to refer to a couple of pieces of information. the other 28 that were analyzed by office and i know that one of the documents that looks another miami, washington, d.c. and lax and numbers we're much more

restricted on the types of advertising we allow and it looks like others have alcohol and combaim and there's something called credit card books additional various other things for miami and i think that the other airports it gives me an understanding of how restrict active we are but i feel like the reality say we have to get revenue from attorneys but i feel like mr. martin and staff are doing their best to balance the arts but especially limiting key types of tvrdz that are the kind of clifrt and in your face things.

i also want to say this is a tough decision bus i appreciate the analysis by mr. hospital o rose and i see that in most cases the making or whichever is higher makes total sense to me but mr. martin has distinguished in san francisco's experience that financial needs of the airport and how he's analyzed this is the best deal for our airport. i also wanted to say that the community reps have coverage and given me the impression that clear channel is doing their best to reach out by the clear channel airports is different from billboards and this doesn't

include billboards it's a clear contract on what the 1 hundred and 79 sites are going to be using. i know that mr. rose said it will make more money but i think mr. martin have given information that the number of the digital spaces are smaller i think he said 34 sites and my understanding is one sixth of the time for the advertisement it's not making that much but i'd like to know more how to limit as much as possible the digital areas for adds. i also wanted to say that in the decision to an this one it's

very difficult. i've looked at the numbers that mr. martin and staff have provided i understand our airport is different from others and i'm going to be supportive in the expertise of our arrangement director and staff even though harry row have raised questions but i'm going to support the contract >> thank you supervisor. this is important even though the airport is a advertised. first of all, i want to thank mr. martin the entire budget analyst office perhaps we can

lesson our reliance an blood pressure pills but some how i we - i find quite frankly this has to do with the charger exchange contract as well i would agree with the supervisors comment i love to support the union folks and this is a financial issue right here about the contract with clear channel and it's really 24 decisions you kind of trust what the staff knows but you reject it because it's not a typical a structure. and it's very clear had there are the vast majority if not ail the advertisement contracts

include 8 percent and a making. i guess from envy prospective i approach this for a high bar for us to dive in and reject a contract and i think the fact that one i like the fact that the advertisement locations are going down but i want to say that i disagree with some contractors that building e binged more on a contract will get you more. i haven't heard from clear channel but i think it makes sense if you don't have amassing you would lower your percentage if i don't have is a making. i think i ultimately would come

down in respecting what the director knows best and i think has great respect from mr. rose and i - the fact that we're ♪ somewhat coloring to our peak of passenger traffic we're protecting against the down side and i'm scared about the dow closing but i would refer to your knowledge and how our knowledge and what i think it best. i in no time at all nobody doesn't believe that you're not going to do something in the interest of the airport that's

not best i will be supporting the contract do i want to make a motion? >> i'll move that we approve the contract. >> okay. can we take a role? >> yes. the motion passes. >> okay. the motion passes can you please call item 7. >> item 7 authorizing the contract purchaser to enter into an agreement for the not to exceed $4 million efforts of the purpose of engineering international airport safety program. >> okay. and for item.

>> he the resolution before you - the board of supervisors has approved our bid requirements

and as f co- is the only company that manufactures the products we

>> >> any questions? >> though not to exceed $35 million, the total authorization is $40 million and that's because it would provide for a contingency of about 4.8 million dollars which we think is reasonable. we do recommend that you approve this resolution. >> okay. questions? seeing none. we'll open up to public

comment. items on no. 7. seeing none? public comment is closed. >> we have a motion to send to recommendation. >> please call items no. 8 and 9 together. with respect to certain equipment be used for city purposes approving the issuance of not to exceed 2.5 million. >> okay. thank you. maybe you

know, are you presenting on this item? >> i certainly can. we have between 10 and $13 million that we use to fund leases for various equipment items within the city's budget and the legislation before you appropriates those funds as they were intended. we do have a budget analyst report that recommends approval. >> thank you. >> mr. chairman, on page 66 of the report we point out that

the 87500 is estimated at 12.2 million in $380,000 in interest with the annual debt service of $2 million over the six year period. all the equipment on the attachment on page 68 of the report was approved by the board of supervisors in the 2013 budget. we do recommend that you prove the resolution and ordinance. >> okay. thank you very much mr. rose. any questions. >> seeing none we'll open up to public comment. >> how are you. if there is anybody that would like to publically comment on items 8 or 9 step forward. seeing none public item is closed. call these items together. motion to prove the resolution of the ordinance? we can do that we can iv seconded and do it without opposition. mr. clerk

do we have any other items. >> that completes the morning agenda. thank you. we'll take a 10 minute recess before the next meeting begins. thanks, very much. meeting adjourned. >> >> i will be chairing this committee. i would like to thank sfgtv for covering this meeting. mr. young, do we have announcements?

>> yes. please close all electronic devices. items active today will appear on the may 14th, 2013. >> thank you very much. we have a long agenda here. please keep moving. please call item no. 1. we have mr. kelly head of puc. perhaps we can hold for questions at the end. >> that would be great. thank you for being here. so knowing that you have a long day ahead of you and you just finished yesterday's meeting this morning. what i would like to do is go over our presentation

and i would just want to thank you guys ferrel and members of the budget committee and manager for the puc and i want to let you know this is my first presentation as my new role and it is to deliver good news. it's always a great opportunity to be in that role. also this is our first time preparing a two year budget and this is a first midyear review. so i would like to spend time to walk through the presentation and just talk about all the changes that we have and mostly good because all increases that we have experienced we are able to offset it with savings and then the second major thing i want to talk about is two of our major infrastructure improvement programs which is a water system improvement program and also the sewer

system improvement program and really talk about how the rates are structured and keep that on track. and so one of the things also is that because we do a 10 year capital plan and 10 year financial plan, it pretty much helps set the vision to where we are headed to maximize opportunities. we want to go over that. so as part of the presentation, the focus today is to really talk about where we stand in mid cycle update an also i want to talk about the puc priorities and improvement to the infrastructure. and we'll talk about the budget adjustments. as we talk about the presentation one of the things i want to illustrate and

hopefully a key theme thank you walk away with is how the puc approach the physical balancing of three of our core priorities and our first priority is to really deliver high quality 24/hour for water and power and sewer. our second prior is to maintain our critical infrastructure to ensure our assets are in a state of good repair and also which is equally important is to preserve rate affordability. we think those are our guiding principles. in order to to accomplish that, we have certain levers that within our budget that we really try to control and so the first one is our operating budget and staffing and for the most part we keep that pretty much flat other than inflation as it