department estimates that as the sheriff's department just represented that the increase from 60 to 65 percent of gross telephone revenues is a result in an estimated 60,965 in annual revenues. on page 19 of our report, you notice table $19 of our report, you notice table two, there is $1.99 million in the fund as fiscal year 2013. we have two recommendations, supervisors, for your consideration. they're on page 20. we recommend you amend the resolution. let me give you background. there's another contractor prices which was a source contract which never came before the board of supervisors. under that contract required a waiver which was not obtained but as we understand that, the

sheriff's is obtaining that waiver now. that contract has automatic one year approval so it goes on forever the way it's written right now. so our recommendation, number one is we recommend that you amend the proposed resolution to urge the sheriff's to amend it to have a date specific. by the way, the purpose of that contract was to audit and collect the telephone revenues. that's what that contractor does. separate and aside from the gtl contract. secondly, as i noted, there's a large amount in that fund and in fact expenditures in that fund -- revenues in that fund exceeded expenditures consistently for the last three years so our recommendation is that you amend the proposed

revolution to have the sheriff's budget expenditures in 2014 and in the future to have inmate beb fits and we recommend that you approve this. i'll be happy to respond to any questions. >> colleagues, any questions for mr. rose. president mar. >> i was asking to ask if we agree with the recommendations? >> we do. >> supervisor avalos. >> yes, just a couple of questions about the inmate welfare fund and what types of services it provides. >> this fiscal year, one section is budgets to provide services through cbo. in fiscal year 2013-14, we were using it to pay for one family and that program provides

parenting education at cj 13 which is the downtown jail and 2 which is a women's jail and cj 5 and they provide parent child visiting and those two services are closely linked because we want our parent child visiting to be more than a contact visit between parents and their children. we want it to be a learning opportunity for parents to learn to be better parents and to build their relationships with their children because studies show that strong familiar relationships reduce recidivism. we fund case management pods and that's a pod devoted to veterans. >> thank you. and then. one of the recommendations is that we expend the welfare fund with what we have in the fund and wondering what will the sheriff's department will be looking for.

>> we have a $1 million fund balance and that was from under budgeting the revenues that came in, so for the last four to five years, revenued exceeded what we budge etded so although we expended everything, this fund is built year after year. there has been fluctuated. we have to budget conservatively because it depends on the number of inmates drives the call value and that drives that into the welfare inmate fund. since we have a large fund balance, we're looking to budget a portion of that balance, but we have to be careful about the way we budget because it's a one time source. if we budget for something in fiscal year 14-15, that money will be gone. so the sheriff's would like to

divide it into three on four chunks so we can provide the same amount of funds for the next three to five years and provide mental health or substance abuse which are three of the sheriff's priorities for programming in the jail. >> okay. and have you thought of any one time uses as well the budget funds? you might have capital needs or equipment needs or literature or anything like that? has that been a consideration as well. >> one thing that we considered is the tv is a great distraction while you're in jail and you have limited opportunity to entertain yourself and some of our tv's need to be replaced to we've contemplated with the funds doing a system wide.

>> that's great because you can show reruns. >> or the board of supervisors. >> what drives the cost of phone calls in the jails. i've heard that in prisons and jails the costs of making phone calls is much grater than for the general public for similar calls that are made to family members and if you could talk about that. >> sure. so the inmate -- the price of inmate calls is really driven by three things. at the federal level, the fc krks regulates in trust state calling. if an inmate calls someone out of state, the fcc identifies a ceiling above which rates can not go. calls s made within california, will be regulated. the third thing

that dictates inmate calling rate is the contract the city and county has with the phone caller and the rates were set that occurred in 2009. the sheriff's thinks that the rates are far too high and that inmate calls need to be provided as a price that is more in line with what his expectations are. >> is there a way to adjust the inmate welfare fund to reduce the price of calls. >> from a technical perspective, what happens is inmates purchase phone cards, and those phone cards are -- just like any other debit card you would use at any store in the outside world, so each inmate gets a phone call of $20, they plug in their pin number into their telephone and the calls are debited off so the revenue goes directly to

gtl. what the department could contemplate is guy phone cards that can be distributed to inmates on a fair basis. that's the way that that could be achieved. >> it's important that the sheriff's has flexibility but that could be considered. phone calls are high and inmates are calling family peoples and that's one of your policies to make sure there's strong relationships between the inmates and families and that seems to be useful. >> i'm take that under advisement when we budget. >> supervisor mar. >> i want to give a shout out to the collaboration partnership. it's a great organization -- i know middle schools have spread in

different ways and you mentioned the funds going to inmates with children, but how many inmates have children in our jails? >> that is a great question that i don't know the answer to, but i can find out. we provide visiting in the downtown jail one day a week. we provide visiting on weekends at cj 5. so the number of contact visits -- i don't want to speak out of turn, so let me check our performance metric examine and get back to you. >> it's great that family and children service is here. that's interest of me how we support women and men and make sure they have regular support with their children. we're talking about an item in the

last meeting called orange is the new black, i would hope the $1 million expands access to the families. i did visit with the chiefs examine also the 7th street facility and i could see how challenging it is at the 7th street bryant facility verses bruno that has better access. i'm hoping we put effort into that and that would be helpful for me to know the demographics of inmates with family members and how we're accommodating them and helping them stay in contact with their family. >> this year throughout r section p process we generated funds to support this program. that's how important it is to

the sheriff's office even when people are incarcerated. >> okay. colleagues, any further questions? okay. we went into our budget analyst report. any further questions for the staff. we'll open up to public comment. anyone wish to comment. seeing none, public comment is close. to our city attorney, the proposed title change, does that work with you and we have to continue this for a week to change? >> that's correct, deputy attorney john. one additional piece, the clerk's office general entitles says that the contract reflects the total amount, so perhaps you can amend the title and the clerk's office can work with the sheriff's department to make sure the right number goes into that title so it's noted next week. >> two sets of recommendation,

the budget analyst recommendation that the sheriff's department agreed on. so moved and the amendment to the title and we can work on the final amount. continue this item as amended until next week. we can do that without objection. thank you very much. mr. clerk, can you call item number 7. >> item number 7 ordinance amending the business and tax regulations code to provide additional penalty relief for payroll expense tax and gross receipts tax payments; to require combined reporting of the payroll expense tax by related taxpayers; and to clarify that fees and special assessments are administered according to the common administrative provisions applicable to other business taxes. >> item number 7 ordinance amending the business and tax regulations code to provide additional penalty relief for payroll expense tax and gross receipts tax payments; to require combined reporting of the payroll expense tax by related taxpayers; and to clarify that fees and special assessments are administered according to the common administrative provisions applicable to other business taxes. >> okay. thank you. we have our treasure tax office here and greg thank you for being here. >> good afternoon. has the short title explained, this legislation has three things.

and they're all add -- administrative. what this does is allow the tax payers to avoid penalties and interest if they make a minimum quarterly installment paument and if they make an under payment and an overpayment in one tax, our office by this legislation is empowered to settle that up so we don't have an overpayment in one and an overpayment in one when they make their final filing. if addition, it does require related entities. those are businesses that are considered unitary for the purpose of the franchise tax board and will file all one gross receipt tax returns and a business registration. this will require them to file

jointly for their payroll expense, this will allow our office to create while one filing experience for those businesses so they can go through and file the payroll expense and the gross receipts at the same time. there is an administrative change that's different from our implementation. it clarifies that business and property improvement assessments are to be administered the same as other taxes are and with the tax business code. and with that i'm available for questions. >> colleagues, any questions. >> seeing none. we don't have a budget analyst. moving to public comment. seeing none. public comment is closed. can i move this item. >> so moved. >> mr. clerk, can you call item number 8. >> item number 8 resolution authorizing the execution and performance of an agreement of

purchase and sale for real estate between the city and county of san francisco and tenderloin neighborhood development corporation, a california nonprofit public benefit corporation, for the purchase of real property located at 201-229 eddy street, san francisco, in the amount of $4,200,000 for the rehabilitation of 105 units of affordable housing for low and very low income persons; authorizing the execution and performance of a ground lease between the city and county of san francisco and franciscan tower associates, l.p., a california limited partnership; adopting findings under the california environmental quality act; and adopting findings that the conveyance is consistent with the city's general plan, and eight priority policies of city planning code, section 101.1. >> item number 8 resolution authorizing the execution and performance of an agreement of purchase and sale for real estate between the city and county of san francisco and tenderloin neighborhood development corporation, a california nonprofit public benefit corporation, for the purchase of real property located at 201-229 eddy street, san francisco, in the amount of $4,200,000 for the rehabilitation of 105 units of affordable housing for low and very low income persons; authorizing the execution and performance of a ground lease between the city and county of san francisco and franciscan tower associates, l.p., a california limited partnership; adopting findings under the california environmental quality act; and adopting findings that the conveyance is consistent with the city's general plan, and eight priority policies of city planning code, section 101.1. >> thank you supervisor avalos. this is an item that i sponsored. mostly in spot for supervisor jan kim who i expect will be put her name on the cosponsor at some point. but this is a project that is sponsored by the neighborhood development corporation, tndc and represents tndc are here as well and we have an over view. mr. uptight. >> thank you supervisor. thanks for your sponsorship as well. i appreciate it very

much. chair farrel and members. the property today we're talking about is at 201-229 eddie street. it has been owned and operated by affordable housing process by the neighborhood development corporation as supervisor mentioned. they're joining us if you have technical questions if you like to ask about the questions. that has been operated since 1989. the agency supported this. in april of 2011 the property suffered from a major fire which required displacement and relocation of all 127 resident. the property is under going a major rehabilitation and that's why we're here which is wide safety upgrades and green elements is required under the

code and beyond. and it will yield 105 units of affordable units upon completion. all the displaced resident have an option to return after the rehabilitation. they estimate 50 households are return and the remainders will stay housed it is tnc assets. to preserve the affordability of the site, city is prepared to acquire the land for a purchase price of $4.2 million. how we structured this is the purchase price which is substantiated by an appraisal we have reviewed and approved is paid by the forgiveness of $4.2 million in debt owed to the city for previous loans on the project. the city will lease the

property to tn cd partnership through a 75 year lease with a 24 year extension for a total of 99 years available under the lease for use as affordable housing. in addition the city wrote down the interest only owed on the existing amount of $1.7 million and that's to make this project financial feasible from a tks credit perspective. writing down the debt, the city will not be asked to invest new money into the action. it will raise tax equity in only to finance the project. the partnership -- >> that ^ debits debts structure is on page 23. what is remained after the transaction. the loans will be

for a 55 year period. and repayable with what are known as residual receipts and those are detailed in great detail in the budget analyst report as to how those calculations arrived at. the project, assuming approval, we assume the completion in july of 2015. move in connecting interest after and we're anticipating 80 percent of move in. we're happy to answer any questions that you might have. >> any questions. can we go to the budget report. >> mr. uptight stated the mayor's office will forgive the principal outstanding loans of 4.2 million in exchange for the

purchase of the land at 201 eddy street and forgive $1,000,700 of interest. on page 27 of our report, the report that based on the mayor's office of housing community development projected operating income and expenses from the 201-229 eddy street is shown on page 6 on page 27. the mayor's office will receive estimated grand lease annual residual rent of $101,000 in the first year of the operation and according to the tenderloin non profit 20 year cash flow projections, the building will have cash for the first 13 years of operation with total estimated residual, rent payments of 756, 470. i would

note of course those residual payments are dependent upon revenues exceeded expenses. we do recommend approval of this legislation based on prior policy decisions of the board of supervisors. >> thank you very much mr. rose. colleagues, any questions. okay. seeing none, we'll open up to public comment. anybody wish to publicly comment. seeing none. public comment is closed. we can move forward without opposition. mr. clerk, can you call item number 9. >> item number 9 hearing to consider release of reserved funds, office of economic and workforce development and department of technology, file no. 130535, ordinance no. 159-133 in the amount of $217,200 for the business portal project. department >> item number 9 hearing to consider release of reserved funds, office of economic and workforce development and department of technology, file no. 130535, ordinance no. 159-133 in the amount of $217,200 for the business portal project. department >> item number 9 hearing to consider release of reserved funds, office of economic and workforce development and department of technology, file no. 130535, ordinance no. 159-133 in the amount of $217,200 for the business portal project. department of economic and workforce developmentt, >> okay. thank you very much. we have jane down here from owd and thank you for your hard work.

>> thank you very much. and good afternoon supervisor avalos and mar and chairman farrel. i want to thank you for allowing me to be here to speak to you about the business portal project. with me is the executive director of the office of small business, regina and i like to recognize earlier that our deputy city cio miguel is here and due to the length of the hearing , he had to leave. i've been with the office of business for five years assisting businesses throughout the city and i've been asked to lead the effort in building an online building portal for san francisco. and today i'm here to request the release of the funding for this project that's currently held on reserve. i'm pleased to be here to tell you about the portal and pleased we received a favorable recommendation from the he budget and analyst committee. i'm going to take you through a couple of slides.

>> can we have the over head display. >> okay. as you can see, starting a business in san francisco. this is a quick he will -- this is a quick illustration. i understand the pinpoints of starting and a growing a business in this city. i don't think it's just in san francisco, but it's probably in every city in this country, but it's not easy for business owners to start and grow. with this example, i'm showing you starting a restaurant or a cafe, the business owner not only has to come here to city hall accident they have to visit the planning department, the health care, dbi and they can skip entertainment police, and mta but only if they're lucky. so how can we remove some of the arrows that are in this picture? and how do we make

things easier for our business owners? the vision for the business portal is the stream line with the city making it easier to start, and stay and fwroe -- grow in san francisco. we want to create a great experience for our business owners and we want to provide those business owners with the right information at the right time. while we're doing all that, we want to provide reporting back to city leadership in various departments. phase 1 of the business portal project was called license 123 and launched in february of this year. license 123 was an office shelf shoft wear product that we purchased and what it does is it provides a customized list of pdf forms based on industry types. we've been able to assemble information for 258 business types across 19

industries. it's interesting to note that most of the -- the highest number of searchs based on industry businesses are in the food and drink category which makes sense because that has the more requirements. 70 percent of our users are starting new businesses. and we've done preliminary research. some of the feedback we received from license 123 is that they liked having all the forms in one place, so that flight earlier where they had to run around to department departments, they don't have to do that. they can come onto license 123 and download. they enjoyed the choose your own adventure of your layout and they like to search for information at their own pace. what is this telling us? based on the preliminary research, our users are saying we're doing the right thing, but

there's so much to be done to improve this because having all the forms in one place is a great thing and it's a huge part of starting a business there's so much more information that business owners need to seek out in order to be successful. and that brings us to phase 2 of this project. face 2 of the business portal project is a collaboration between multiple departments, the department of technology, the office of economic and work force development, office of small business and the mayor's office of civic innovation. in phase 2, we'll research, design and implement a one stop personalized business portal with industry tool kits and i'll go over that in a second. we'll build a dashboard to allow agencies to track our progress and successes. we'll tea up the portals for online forms and e-signatures and payments so we can accept forms

online and electronic payments. we need to think about phase 3 and we like to map out a business plan to stream line the licensing process and we like to move onto e-payments and also we like to provide ongoing support and upkeep and maintenance of the portal. when we're talking about the portal, i thought how do we deliver services at the office of small business. when i'm sitting at the counter with a business client, i ask them, are you here to start a new business or are you an existing business? what type of business are you starting? as we begin this conversation, i get a better idea of the type of information that they need. i can provide customized information to the business

owner. and with the portal, the point with the portal is replicate that personalized one on one experience. when the client comes onto the portal, you'll notice there's a selection button for the language. we don't have the budget or time to hire translators to translate that so we'll start with the goggle translation, but we know we need to provide translation so the translated pages can save our mono logo business owners. they can answer whether they'll have a physical location or home business. if they chose a physical location, the portal will take them to the zoning check. this forces a business owner to make sure the space

they're looking at is compliant with zoning restrictions and people come in and know what they're looking for, so for those users -- those users can select quick tool kits and if they know i'm starting a restaurant, with a click of a button they can access the starter guides and this is a road map. it teaches a business owner to think about getting from point a to point b and it's not about selecting a space and putting together a menu, they need to think about ada compliance issues and getting the proper permits. the tool guide will help them for see everything they need to think about in order to start the business. in the business portal we will continue to support licensed 123 to allow the user to assess a list of forms that they need to fill out to apply for the proper

licenses and as i mentioned earlier, we'll have a dashboard. what is it this business portal? well, i like to think of it as the go to place for all things business in san francisco. we're here to request the release of the funding that's on reserve and we're beginning the process to hire a team to work on the process and selecting the right vendors. the bulk of the work will be done by the end of this year and early next year and we're looking forward to a soft lunch between may and june and a full launch between june and july. as we continue to build phase two, we need to think about phase 3 and beyond because there's so much more that can be done to simplify the business process in the city. with that, i'll take any questions that you may have. >> thank you very much. colleagues,