>> they are finding the same things happening on the phone where people call in and ask, how do i find this information? we say, go to this website and they go and get the information easily. >> a picture tells a thousand stories. some say a map >> good morning. thank you for joining me here at the board chambers, and thank you to board president david chiu, budget chair mark farrell, members of the board of supervisors, our elected officials, our commissioners, and our department heads. and welcome, members of the public who joined us this morning. this year's budget reflects a lot of hard work between city government and the people that we serve. we've met in every district of the city. we've worked with our elected city family. we listened to hundreds of community leaders and providers

who help us deliver services to the people of san francisco. and it's because of this consensus approach that i'm proud to propose a responsible and balanced two-year budget that reflects the core values that we share in san francisco, values of fiscal responsibility, social responsibility, and investing in our city's future. when we began this year's budget, we began like many years before, trying to reduce significant budget deficits. but because we have pursued policies to control costs, grow our economy, create jobs and stabilize our fiscal health, this year i'm proposing a budget that protects our social safety net, one that increases public safety, and one that invests in our city's infrastructure at unprecedented levels. and it is a budget that significantly grows our city's reserves.

this budget is being delivered as san francisco's economy is recovering, going, and moving in the right direction. and san franciscans are getting back to work. in fact, our unemployment rate has dropped, as you all know, from 9.5% in january of 2011 to an astounding 5.4% just last month. (applause) >> i know, i know it has -- it has not been easy. we've had to work hard with our health services system, our care -- our health care providers, and labor to reduce employee health care costs. and because of our collaboration, we will now save $52 million over the next two years. and we've made tough but necessary choices on everything from escalating pension costs to reforming our unfair job

punishing business tax. we've injected a healthy dose of fiscal discipline with two-year budgeting, five-year financial planning, and a 10-year capital plan to get to us this point. but it's been worth it. san francisco's credit ratings have been upgraded by every rating agency in the past year, making our tax dollars go further when we deliver capital projects, and giving our city even more investor confidene. so, now it is not the time to take our eyes off the ball. we have to continue reforms to protect our city's economic recovery and make our city safe, solvent, and successful. like taking meaningful action to address our $4.4 billion of unfunded retiree health care liability. thank you, supervisor mark farrell, for taking this on. you have my full support on this important issue. (applause)

>> while reforms and sacrifices have spared us deep cuts we've experienced during the deepest part of our economic downturn, we still have much work to do. this year's projected $123.6 million general fund shortfall and next year's $256 million shortfall requires strategic choices and strategic investment. so, in this budget you will see fiscal prudence, a high level of services to our residents, investments that protect our social safety net, increased public safety support for our neighborhoods, support for our critical infrastructure, and investments in our economy and job creation. one thing we agreed on early was that in the time of state and federal cuts, protecting our social safety net is more important than ever. so, therefore, i have rejected

all proposed year-one mental health and substance abuse reductions from public health department and i have restored $4 million in federal cuts to programs serving people with aids and hiv. (applause) >> and, and we will continue our efforts to be a healthier city. the affordable care act will extend health insurance to 35,000 san franciscans and our department of public health and human services agency will implement our nation's health care reform. but on our streets there are still too many people, families without a place to call home. and that's why we are extending a dedicated emergency family shelter to provide year round services, adding 25 more units of family supportive housing and supporting a new approach

to housing transitional aids youth and getting them connected to work. (applause) >> to offset the state's deep cuts to our school district, this proposed budget includes an unprecedented $110 million in education support over the next two years, and we are taking on additional responsibilities at our school districts where we will see new support from the private sector for middle schools, and new support with our federal partners with promised neighborhoods grants. and thanks to our city librarian, we will be extending library hours throughout our city. (applause) >> we are going to make san francisco an even safer city. we developed a six-year police

staff and fire staffing plan to train san francisco's first responders. over the next two years ~ san francisco will hire 300 new sworn police officers with six new academy classes. and we will add 120 firefighters with three new fire academy classes. with with 35 construction cranes across our skyline, you can see public and private construction jobs being created every day. in fact, an estimated 223,000 jobs will be created over the next 10 years from city projects alone. for our part, we're making a sound investment of $25.1 billion in capital projects over the next 10 years through our city's ten-year capital plan. this proposed budget includes unprecedented levels of general fund sub poderth for these smart capital investments. ~ support $72 million in year one and

$105 million in year two. thank you, president david chiu, for your collaboration on our city's 10 year capital plan that will ensure we strategically invest in our city's infrastructure. (applause) >> now, this budget will fully fund the street repaving program to improve streets and sidewalks and continue construction and planning on critical projects such as the water and sewer system improvement programs, our new general hospital, the bayview opera house, and improvements to muni. and thanks to the 195 million dollar voter approved parks bond, we will continue to invest in our parks and open spaces. (applause) ~ >> last year, together with the support of voters, we passed the housing trust fund, a $1.5

billion stream of funding over the next 30 years for affordable housing and assistance to first-time home buyers. over the next two years we have budgeted $42.8 million for new affordable housing development for helping first-time homeowners including first responders with down payment assistance and preserving and stabilizing existing housing. here's a fact. every public dollar for new affordable housing development will be leveraged with two private dollars. all of these investments are needed to protect the housing stock in our city and to make sure san francisco can be affordable. and we are doing it smartly with some of the strongest tenant protectionses in place. the small businesses are at the heart and soul of our local economy. my proposed budget includes funding for an online business portal to cut through bureaucratic red tape and make

it easier for an entrepreneur to start and operate a business in san francisco. this budget continues my invest in neighborhoods initiative that is creating customized plans in 25 different neighborhood commercial districts and providing job squad and providing a job squad that brings city hall to our neighborhood businesses. and because san francisco's truly a global city, we're going to build on the success of china s.f. and expand our outreach to latin america and asian market street, not just to attract businesses to come here, but i'd like for us to really begin to introduce "made in san francisco" products to these growing market street. (applause) ~ markets >> while the worst of the economic crisis may be behind us, we cannot deviate from our commitment to fiscal

responsibility and reform. we will continue to invest in our neighborhoods, in our infrastructure, and most importantly, in our people. i want to recognize budget chair supervisor mark farrell again for leading the budget effort and making this a very collaborative process. i want to thank my staff led by steve kava, and to my budget office led by kate howard. and also a great thanks to ben rosenfield, our city controller and his staff, and then an anticipated thanks in advance to budget analyst harvey rose for his anticipated cooperation. [laughter] >> so, i know this is short, but i think you look at the budget. to me it's quite a sweet budget. so, let's roll up our sleeves. let's get this budget done collaboratively. and then let's spend our time making sure that we get 6,000 jobs for our youth this summer. thank you very much. (applause)

>> good morning everyone. welcome to the san francisco board of supervisors, budget

and finance sub-committee for june 5, 2013. i'm joined by avalos and erik mark. i would like to thank the members of sf gks tv covering this meeting and victor young. mr. clerk do we have any announcements. >> yes, please turn off electronic devices. items act the upon state will be on july 5, 2013. >> mr. clark can you call item number one. >> rez collusion approving the execution of a lease amendment for a portion of property commonlyknown as block no. 0817, lot no. 30 (parcel k), by and between the city and county

of san francisco and proxydevelopment, llc, for an extended term through january 31, 2021, and a revised monthly base rent of $7,200 effective june 1, 2015.. >> okay. thank you this is sponsored by supervisor breed and we have breed's office to speak first. >> good morning supervisors. i'll be brief, but to give context for this context. it is in haze's item and this is by the freeway. they sold it which is dissolved so the property is in the hands of the mayor's office of housing which plans to develop it in development housing. in theen trum, the city entered into a lease with a city called approximaty development which has a use of this space. it's a nationally recognized urban design and honestly we were say tg could have gone to the land use city. what was previously

a parking lot is a model for development. it's a true haze valley. this is supported by the neighborhood association. proxy done a great job with working with job training companies. and the rent that the city receives is actually tied to what it would receive if the property was used as a parking lot and supervisor brief thinks this is better than a parking lot and happy to see the lease continued and ask for your support. thank you. >> thank you mr. johnson. >> we have john from our department of real-estate. >> john, director of real-estate. very briefly. this is an 11,430 parcel originally leased by the city in 2004 for parking purposes that in 2010 the board approved this lease with proxy

development and we're here to extend that agreement. as part of the dissolution process, the property was transferred to jurisdiction as mentioned so today this is a straight lease agreement. we're asking authorization for an extension to 1312021 which coincided with the reed property. it has a new base rate to the city and increases to $5,300 per month and that would carry with an adjustment and in june the new basin creases to modestly by $7,200 a month, reflective of our taking a look at the month and the increases therefore at 2>> good morning with work

force development. bare with me while i bring up my power point. >> so i'd like to follow john's comments with context on the proxy project. in 2000 the city received 2 thousand parcels. and they're named a-v and the redevelopment purchased seven of the parcel, a, c, g, k, and q and with the purpose of developing these parcels for affordable housing. it presents the redevelopment interest. to date four of these housing projects have been completed on the boulevard. parcel a is the park view terrace which is senior housing and parcel c is the senior community center which provides 100 units for

low income and homeless seniors and the richards apartments for homeless individuals and parcel q has the octavia court for those with disabilities. and the mayor's house says that parcel o project will start in 2014 which will add another 100 rental housing, parcel u has been programmed for h use. parcel k is on -- it's one of the 7 former freeway on octavia build and is affordable housing. it's programmed for 20 to 25 units and the units are affordable with ad to 100,

the mayor house has housing for those throughout the city and will not develop parcel k until 2021. in response to concerns to activate the space while waiting for development, they issued a question for temporary use if 2009. and the proxy was selected by parcel k and l. the project used shipping containers and small retail service and food services and businesses located on parcel a is smiten ice cream and coffee and basic training and city car share, parcel k hosts multiple food trucks, parcel l is part of the proxy project and home to the beer garden while part of the project, l is not currently in front of the sub-committee and asked for consideration. in addition to activating parcel k, it has

furthered economic development in the neighborhood since opening in april 2013, the tenants have created 109 jobs which are filled with san francisco resident. proxy done outreach to the surrounding neighborhoods including partnering with the mobile food program and offering discounting rates on site and priority and scheduling when they can be on the site and they have a working relationship place vendors on the site and working to have spaces for non prove i can and events. i like to introduce douglas to go over the design of the proxy project. i'm the

principal and ark trek tral -- architectural design and i like to give a brief over view by power point. and i thank you for considering the lease extension on this site. as timson noted, parcel k is located at the corner of haze and octavia and bound by lynndon street. and these projects are along patricia stream and the idea of the project is to activate vacant lots on these sites. so we started with vacant lots. lot l was vacant and lot k had day rate parking, $10 a day, no in and out. we then added -- we realize that we need to phase this project because we're

slightly under funded developer and we started with smiten and ritual which is phase one and add the beer garden which is phase two. we're basically just starting phases three and four, phase three is an art galore which will face lynndon street on lot l and phase four as the full implementation of the project on lot k. including more retail containers and more food vendors. this is rendering the project at a full build out. and it includes event space on the inside. this is last summer which shows the art installation on the corner of ocavia. >> is that from the music development. >> no, that will not be

permanent. that's the back of an outdoor movie theater so the idea is there will be a walk in movie theater that would be occasion nal events tied to a film series. so our vendors as timson went over with is smiten ice cream and coffee. this is ritual. the beer garden on lot l, either a parrel store on lot k, and you can see basic training which is a fitness boot camp that uses our site for training sessions. just a few recent press that we've gotten. this is ferna mcferson who is a graduate of the food program and she's vending at

proxy. we've been covered in the chronicle quite extensively and also in this past weeks new york times sunday edition, michael work about used proxy as a prime example of that and i'd be happy to answer any questions you may have. >> i think my question about the music was answered and i appreciate that. >> would you like it to be permanent? >> no, it's a good movie but you might want to switch out for different audiences that might want to come through. >> i've been to most of the sites there and been impressed with the use of space and the quality of the food and its openness to bring in people into the space. it as been pretty exceptional to see.

>> thank you. >> any other comments or presentations. we'll open this up to public comments. and we don't have much for item number one. anyone who wishes to speak, please step forward. >> i'm the neighbor association and the transportation and planning committee. we've been engaged with this project and everything basically about it as turned out better than we thought. the proxy group has been the best partner you can ask for in working constructively with the community and this is the perfect example of why temporary uses engaging spaces are the ideal thing so they're ready to be built on, so we very, very strongly support the continued use of this proxy development in k and l, even though l is not up for

consideration today. and look for your support on it. thank you. >> thank you very much. anybody else want to publicly comment on this item. public comment is closed. mr. johnson and i want to thank camton coming. this is a super cool project and thank you proxy for doing what you're doing. move this item forward and we can do so without objection. thank you very much. mr. clerk can you call three, four, five together.

>> item three, approving the persons with aid s rez collusion of approving the housing opportunities for persons with aids program and authorizing the mayor on behalf of the city and county of firefighter to apply for, accept and ex pend the city's program entitlement from us department of housing urban development in the amount of 9, 244, 988 and the ex pend program income and reprogrammed funds in the amount of 2, 546, 160 for the period of july 1,

2013 through june 20, 2018. mayorresolution approving the emergency solutions grants program and authorizing the mayor, on behalf of the city and county of san francisco, to apply for, accept, and expend the city's fy2013-2014 emergency solutions grants program entitlement in the amount of $1,528,852 from the u.s. department of housing and urban development for an unspecified period starting july 1, 2013.mayorresolution approving the fy2013-2014 home investment partnership (home) program and authorizing the mayor, on behalf of the city and county of san francisco, to apply for, accept, and expend the city's fy2013-2014 home program entitlement from the u.s. department of housing and urban development in the amount of $3,763,707 and to expend program income in the amount of $30,000 for the period of july 1, 2013, through june 30, 2018. >> thank you mr. clerk. >> good morning. director of committee development for the mayor's office and community development now. i'm here to present these four items, we usually present our had you had funded programs to you earlier in the year, this year because of some lateness in congress's decision making, we're here just at the he tail end of the year to present these expenditures schedules. we presented to you in the schedule when this