happy to answer any questions and i'm joined here by my colleagues at hss as well. >> thank you, mr. updike. colleagues, any questions right now? okay, thanks. why don't we go to our budget analyst report. >> mr. chairman, members of the committee, on page 37 of our report as shown in table 3, the total first year cost hss under the proposed new lease are $643,263. and on that same page the report that is shown on table 2 on page 36 of our report, the proposed lease rentals results in a total square footage increase of 5,98 4 square feet or 44% compared to the current lease. ~ now, approximately 4,00 5 square feet are to be used as a wellness center. the controller's office will begin a strategic planning effort in the summer of 2013

with a possible strategic plan to be completed in the fall of 2013 and also as mr. updike just indicated, hss is requesting new positions in the mayor's proposed fiscal 13-14 budget for implementation of the wellness center. so, our conclusion is that the controller has not yet begun the strategic planning process for the proposed city-wide wellness program and the board of supervisors has not yet approved the hss fiscal year 13-14 budget, the board of supervisors should consider alternative -- alternatives to approving the proposed increase in space for hss and actually our recommendations are consistent with what i understand mr. updike just stated. so, we seem to be in agreement. our recommendations on page 38 are to amend the proposed resolution, to clarify that the resolution is authorizing a potential 10-year lease based on provisions of the letter of intent rather than the actual

lease -- oh, that got changed, i'm sorry. i withdraw that recommendation. the second recommendation is we recommend that you amend the proposed resolution to request that the director of real estate find alternative or interim uses for the first floor space currently designated for the wellness center including locating other city difficultthtionv in that space and it's really the hss. just to clarify that's contingent on your approval of positions in the budget and what the result of the controller's strategic study on the wellness center plan for the city is, and finally we recommend that you approve the resolution as amended. so, i'm not recommending any reduction in space, but i do not believe that the lease should lock in right now 4,00 5 square feet of space for the wellness center specifically for hss at this time. >> okay, thank you, mr. rose. colleagues, any questions? can i ask, [speaker not

understood], in terms of the timing on the wellness center, can you talk to us about that? >>yes, mr. chairman and members of the committee, monique zamuda from the wellness office. we did conduct a [speaker not understood] with the department of human resources as well as health services, the major client, if you will. we've contracted with an outside expert in this area. we're doing a tremendous amount of data analysis with the consultant, looking at the various needs of the employees and what has worked in other places and doing benchmarking. we are very well underway. we are planning to release the report in the fall that will provide recommendations. we certainly agree with the health service system and the director of human resources that a wellness program should begin next fiscal year.

there are a number of funding requests including the space and individuals and so on to begin the program. we do know from all of the data that we've reviewed and research that we've done that wellness is a way of stemming the increase of health care. and we believe that there are a number of steps that the city can take to do that without reducing benefits. and, so, you will be seeing that report in the early fall. >> okay, thank you very much. also want to give -- we have lisa gape here who is the interim director of hss, wellness is out taking care of business. do you want to add any additional comments? >> thank you, chairman farrell, supervisors. i'm lisa gape, the chief operating officer for the health system and currently the acting director while our director dodd is out on a medical leave. we do appreciate your support for this lease resolution. it is important to the

department for our current activities as well as our potential expansion. under the direction of director dodd's management of hss has for the last few years really undertaken a deep dive into our compliance requirements under all of the laws that regulate employee benefits. one area that is addressing our need to prohibit compliance is the need to separate our areas where we speak with our members and allow privacy and also our areas where we do open enrollment and where we have seminars, and making sure those are areas that are separate and completely distinct from where we hold our members' personal records. so, [speaker not understood] expansion on the first floor does for purposes, it does give us the opportunity to grow into the potential wellness activities of the future. but it also helps us secure the activities that we're currently doing in wellness, and that

there are substantial seminars and training classes, et cetera, that we do including our [speaker not understood] assistance program. and we do need a [speaker not understood] place for that separate from our work activities. so, we appreciate your support. >> supervisor breed? >> i think mine is just a general question as to -- i just have a real concern with approving a lease for potential future needs in terms of space and we haven't approved the upcoming fiscal year's budget. and i do understand that these two leases he, with both the law library and hss, are somewhat linked and there could be potential compromises ~, but i'm just not understanding why this was actually not dealt

with differently in order to make sure that before we moved into this particular direction that the budget was approved. >> mr. updike, do you want to comment? >> certainly. thank you, chair farrell. supervisor breed, good question because this often comes up this time of year. unfortunately our real estate issues, no fiscal year boundaries, but you're right it's a bit difficult. we're either just before or just after the lease. but that lease resolution is subject to appropriation. so, way want to make that clear while you're making a decision about a space commitment which is necessary for us to engage the landlord to begin the process of prepping the space which will take us sometime into the fall so that hss can execute the mood [speaker not understood] labor day, that's why we need to make these

decisions now so we can make the legal commitment. but that commitment is subject to appropriation. so, there is still that issue out there that could reflect a potential change if, indeed, an appropriation was not made. so, i hope that helps address your question. >> supervisor breed, any other questions? okay. okay, if none, if no other comments right now, we'll open this up to public comment. if there is any member of the public that wishes to comment on item number 6, please step forward. ♪ you go a-walking after midnight all down market street like you used to do you go out walking after midnight searching for your medical health place

you go out searching, searching after midnight after midnight out in the full moonlight you go out searching after midnight down market street looking for your health care services >> okay, anybody else? all right, seeing none, public comment is closed. [gavel] >> colleagues, we have this item before us as well as recommendations. supervisor breed? >> just a follow-up question. where in the resolution does it say based on appropriation, what page number and line number? >> unfortunately, my apologies, i don't have the resolution in front of me, but i believe it is at the tail end.

it usually is contained in one of the final paragraphs, perhaps ms. zamuda can help me. >> if i might, through the chair to supervisor breed, the very last sentence of the resolution lines 10 and 11, said lease shall be subject to certification as to fund by the controller pursuant to section 31 05 of the charter. and then when the controller signs the resolution, we do note that funding is available pending approval of the budget. and, so, in both of those areas it secures the requirement that funds have to be appropriated by the mayor and the board of supervisors to make this lease effective. and that's boilerplate language for all of our leases and all of our staff looking to the budget, every lease, and

certify that money is available. if it's not available, then we state that. >> okay, all right. colleagues, i just want to add as a member of the health service system board now and working with the department staff and [speaker not understood] who does a good job, wellness is obviously a big push forward as a city. i know there seems to be a time lag issue here and certainly per mr. rose's recommendations which i absolutely appreciate, i do understand where he's coming from. i think without a doubt this space will be used for a wellness center. been talking about some of the folks involved na study. and in addition as we think about implementing president obama's health care act on the federal level where we are going to be adding head count for sure, ~ within the health service system. and, so, i certainly have no doubt na we will be able to utilize that space. but i do take mr. rose's recommendations to heart.

so, mighty suggest a slight tweak to it in saying that approval of this item, but make an amendment to say that we would direct the director of real estate -- if after the wellness study is completed by a controller's office, there is not suitable uses from the health service system to then direct the director of real estate to find alternative uses for the current space designated for the wellness center. that would be a suggestion from my point of view. mr. rose? >> [speaker not understood] recommendation. >> perfect. and from a health service system, was that -- >> speaking on behalf of my client department, yes, we would be amenable to that. thank you. >> perfect, thank you. can we have a motion to take that amendment? >> may we also add the additional resolved clause to request the department provide an executed copy of the

contract for the file once it's complete? >> we will do that. mr. updike, maybe in the future we can include that resolve clause in every single thing we bring forward. yes, we don't have to talk about it at committee. can we do this without opposition? thanks, so moved. and the underlying item as amended can we take that without opposition? so moved. [gavel] >> thank you very much. mr. clerk, can you please call item number 7? >> item number 7, hearing to consider the budget and legislative analyst's report on the socioeconomic equity in the city and county of san francisco, and how the report may be used to guide the city's budget decision-making process. >> okay, thank you. this was sponsored by supervisor avalos, so, i will turn it over to him. >> great, thank you, chair farrell. and thank you, colleagues, for scheduling and being here for this hearing. this is a hearing on a report that i had asked for of the budget and legislative analyst office.

and fred russo has been the lead in the budget office on the report. i want to thank him for his service. ~ budget analyst's office. this report was to provide a framework so we can look at our decisions we make here in the budget committee and as a city about how we are dealing with disparity. i wasn't trying to get a gotcha on the city so much as really trying to get a baseline on what the needs are in san francisco. i think perhaps at times i can be misunderstood about my concern about poverty and about how we spare economic benefit around and concerned about how we provide a lot of support for big business and corporations. actually, not so much worried about providing the support along as we make sure that we're providing a real benefit to everyday san franciscans, that we are using our wealth and not just trying to generate wealth, but make sure it gets to the places where it's needed

the most. and i don't think any one district, any one part of the city has a premium on what the need is in the city. we'll see from this report that it's pretty spared around. as we see reports like this, it gives us a sense of how we can be really strong advocates for our districts and for our neighborhoods within our districts as well as particular populations in need. we're going through a series of indicators of economic equity in this report and it's by no means an exhaustive list. and i think we can call it a working document as well as probably other ideas that can be generated. there are other ways that we can look at certain indicators in the city. and i welcome people's input on that. i don't want to say that this is the one reality we have. there are probably other realities to add in term of greater what reality is in the city. overall -- and i will say this at the end of the hearing as well -- i think -- i want to

see if it's possible for the budget committee to really look at how we can provide some guidance for the budget analyst to look at the budget and ways that we can be better informed about how we look at some of the priorities we make in the budget as it comes to us and we finalize in the last couple weeks of june. we'll see just recently the department of children and families had finished their [speaker not understood] allocation process. and we see that there are actually major changes about how districts are affected. and that's one way that we can actually make some adjustments about perhaps how we use any money that we're able to reprogram in the budget to focus on where there were big cuts in services and districts, especially districts that have a high level of children that are needed like district 5 where there were some major cuts there. overall, also i want to see that we're looking at how we can provide a framework for how we look at deciding where we

need to promote greater opportunity in san francisco. greater opportunity for housing, greater opportunity for education, and greater opportunity for better quality of life thaw can lead to safer streets, that can lead to playstations where young people without greater fear, with greater access to health care and things of that sort. so, i'll leave it at that and let mr. russo continue and share with us his indicators. and, colleagues, i encourage you to chime in any time with questions you might have as we move forward. mr. russo? >> thank you, mr. avalos. members of the budget and finance committee from the director of the budget analyst office, i'm going to walk through some of the indicators that we reported on in the reports of economic equity in the city of san francisco. this is requested by supervisor avalos.

the idea initially was that this would be a first phase of a two-phase report. this one is looking at the -- establishing the code file, looking at the allocation of social benefits or determinants of equity lot the city. and the second face would then take this information and look at how city departments and agencies allocate their resources to address some of the inequities identified. so, i'll start -- i have a couple of slides here. i guess that is on. the main variables we looked at to make the analysis of where disparities exist are race and ethnicity and neighborhoods and there are many other ways you can evaluate the city population and the distribution of social benefit. but these were two that are key and often lead to indicators of

disparity or inequity and they were used for that reason. in addition, we could get information from the census bureau and other sources including a number of city departments that enabled us to analyze the population by these two factors. there certainly, as i say, other ways of analyzing it. there are other subgroups that could be identified that might also be experiencing disparity, but these are the main indicators that we use, variable. so, the first slide is just looking at the population and the distribution of the population by race and ethnicity. it shows what probably everybody in this room knows, the city has changed considerably in the last 30 years and has become more diverse. there is a breakdown here showing the percentage change in population from 1990 through 2010, showing large growth in

the other population which is could be mixed race, people who don't choose to identify their race apart of the census [speaker not understood]. the second group that has -- their growth is 48%, second group is asian, latinos at 29%, and american indian, alaskan native 21%. there was a decline as you can see of 35.7% in the black or african-american population. the latino population just punish point on that and why it's shown below the total line because the way the census bureau corrects statistic, they don't identify latino as a race ~. it's identified as an ethnicity. so, latinos could be incorporated in the numbers above the total line, but then they also can self-identify as an ethnic group separate from the racial categories. so, you'll see this point of

distribution throughout the report. ~ one, not punish i appreciate the break out. i did mention in my opening comment that racial disparities are something that i wanted to make sure this report looked at, but it's a key area that i think the city needs to be cognizant of especially when we look at homicide rates, especially when we look at unemployment rates, especially when we look at access to after school programs and things that are going to help alleviate the conditions people find are high homicide rates and incarceration rates. >> the area [speaker not understood] in the report -- >> commissioner breed? >> i'm just trying to understand your statement that says the city has become more diverse. within your slide you said it's become more diverse over the last 30 years. i don't understand how that statement is actually accurate with such a significant decline in the african-american population.

>> because there was -- the majority of the population in 1990 was white. so, that has declined or hasn't grown at the same level that other groups have grown. so, the overall makeup is more diverse. and, yes, you're absolutely right, the african-american population has decreased, was offset in the asian population and latino population and it's called other, mixed race. >> okay. >> so, the net effect is an increase in diversity. this slide shows the mix of race and ethnicity varies by neighborhood. there is a mix overall in the city. certain groups are concentrated in certain areas. i won't go through all the detail. it's all provided in the report. but certain neighborhoods have

higher concentrations at different racial ethnic groups than others. and this shows the distribution. in terms of youth and an interesting point on this is that the population under 18 statewide is 24%. so, that's the average for the entire state of california. san francisco has a population under 18 is only 13.3% of the total. and, so, it's smaller than the state. and within the city it's concentrated in particularly in the southeast neighborhoods. and here we show the range of population under 18 ranging from 7.6% and this is all broken down by supervisorial district. so, both district 3 and 6 have 7.6% of the population under 18. and 22.7% is the high and that's district 10, shows the most youth of all the districts in the city.

just a word about the use of supervisorial districts. also our intent was to look at neighborhoods and get information by neighborhood. we were able to get some of the census data by supervisorial district and it's a nice way of grouping neighborhoods. so, a lot of the information is presented that way. it's not all presented that way because we couldn't get every variable allocated by supervisorial district, but where we did [speaker not understood] ourselves, we have done it that way. the other end of the age spectrum, seniors as a percentage of the city-wide population, 13.6% in 2010, and again, the distribution is shown here by supervisorial district ranging from a low of 9-1/2% in district 8 up to 19.7% in district 3. and then everything in between in the other districts. >> right, and i appreciate the pull-out of these two statistics. they're pretty significant for

my district. but also for district 10, the southeast sector, we have the highest concentration of young people. and you see to the western part of the city a really large number of seniors. and in districts like 11 and 4 probably a lot of multi-generational households as well, that is a pretty significant factor. >> in terms of language spoken other than english at home city-wide, there are 43.6% of the population identifies their household is a place where a language other than english is spoken. that doesn't mean the occupants don't speak english. they may speak english at home, but at home another language is spoken. there is quite a range from 17.7% of the population in district 2 to 66.4% of the population in district 11 where the language other than english is spoken at home. all the maps, by the way, are

done the same way. so, the darker the shade usually the higher the number. the higher the rate, whatever is being measured for that particular variable. in terms of education, and here are some of the disparity that supervisor avalos was mentioning starts to emerge. the city-wide rate of residents with a college degree or more, a graduate degree, professional school degree is 50.6%. so, half the population has college degree or more. but, again, when you distribute by neighborhood, it ranges from 28% and supervisorial district 10 up to 78% in supervisorial district 2. so, there's quite a range of residents in terms of their educational attainment. median household income is the next variable presented and this is based on 2010.

it's broken out both by supervisorial district and by race or ethnicity. in supervisorial districts it ranges from a low of $37,43 1 and that's in district 6, up to $105,509 in district 2. ~ and then you can see in the chart on the lower right-hand side the break out by race and eth kniss ithv. the spectrum isn't as large, but clearly there are differences there when you break it out that way as well. yes. >> how did you choose to look at median household income versus, say, per capita? because it's what was done in the past. what was the decision around that? >> well, median is the mid point of the data sets or taking all the incomes in each district and levels out for any

highs or lows. so it's a measure i think is particularly meaningful when you're looking at something where there can be a wide range of numbers. so, that was the idea of using median household versus per capita. it was data that was available. it seemed to be pretty representative of what is going on in each district and that was why we chose it. but per capita would be another way of looking at it as well. it tends to kind of water it down because you're also including non-working people in that income per capita income, whereas this is a unit of measurement i think is reasonably understandable when you think about a household income. >> thank you. >> the poverty rate, and this again is from 2010 census data, city-wide the rate was reported as 12% by the census bureau. looking at it by supervisorial district again, there's quite a range, from 6% which was the

rate reported in district -- excuse me, that's the low rate in district 2, up to 22% in supervisorial district 6. so, quite a range there. and that, what that means, the poverty rate, how that's defined is the census bureau gets certain amounts that are based on the number of people in a family or a household that can be unrelated individuals in a household. but there are dollar thresholds that range from 11,000 up to 49,000 if you have a family with many children. so, it's a pretty low amount in san francisco. and i know there are different ways of measuring poverty. you could certainly -- you will find certain programs in the city, for example, that are based on income and you could be 100% above the poverty level and still qualify for some low-income programs.

but these are probably on the low end in terms of actually having a livable income in san francisco. but, again, it gets at the disparity between neighborhoods. >> interesting to be able to link this poverty rate to kind of parallel, but these are the same people. what are the housing conditions they live in or what kind of housing are they in, is it rental housing? is it property owned by the household or public housing? that would be something i think would give a sense of -- drill down a little more of these people, [speaker not understood]. >> yes, i think that's right, supervisor avalos. and the census bureau does the american community survey, ongoing surveys and delves into more details. there is more information we can obtain if you're interested. ane