cheaper and more predictable. as part of the landmark designation for the do you duboce park designation, september 3rd mills act deadline was established. each property before you today has been locally designated under article 10 or 11 as either individually significant or contributor to a district. 7 properties are contributors to the duboce landmark under article 10 of the planning code. two properties are individual city landmarks also designated under article 10 of the planning code. and one property is individually designated as a category 2 building under article 11 of the planning code. each property owner filed an application to enter into a contract with the city. the property tax included are single-family residences, one flat and one commercial property located in the mid market. this contract can be revolving contracts that are renewed annually. each property owner has outlined a rehabilitation plan

with the in conformance with the secretary [speaker not understood] and has been approved by the planning department and the historic preservation commission. 10 of the 11 applications before you today are expected to receive a property tax savings for the 2015 tax year. one application that demonstrates no tax savings is not to be considered as the property owner has withdrawn their application. two applications required an exemption. as the property values exceeded the $3 million residential threshold and the $5 million commercial threshold. the historic structures report for both properties outline the substantial amount of work be conceded and necessitates the need for the preservation incentive. on behalf of the historic preservation commission, the planning department recommends approval of these mills act contracts in conformance with the hpc with recommendation for approval. on october 16 and december 4 of this year. the applications were approved on the basis but all were complete and had proposed with appropriate and consistent with

the requirements established by the mills act. supervisors, we're submitting to you revision to the last two resolutions that incorporates the budget analyst's recommendations, that the approval these proposed contracts authorizes an exemption to the mills act historical property agreement eligibility limits. budget analyst also recommended that an annual report be provided next year. both the planning department and the assessor's office are happy to provide this report by june 30th of next year that will detail the overall mills act program and not just the contracts before you today. this reporting mechanism has not been included in the revised resolution. i'm available to answer any questions you may have about this mills act application or the mill act program. representatives from the assessor and recorder's office are also available if you have questions regarding the property tax valuations. property owners for 17 72 vallejo, 1019 market, and 2550 webster are also available.

thank you. >> okay, thank you very much. >> good morning, members of the budget and finance committee, chair farrell, supervisors avalos and wiener. thank you very much for hearing our items today. on behalf of assessor-recorder carmen chiu i'd like to say a few quick words. i'd like to thank you for the opportunity to address you today. i'm joined by my colleague and our chief of [speaker not understood] matt thomas if you have specific questions about any of the valuations. i want to also start by acknowledging the hard work of the property owners for these mills act contracts and for their commitment to historic preservation. i want to also acknowledge and thank supervisor wiener for his leadership, supervisor farrell and supervisor kim for all of their hard work and the fine work of the planning department under director ram's leadership. i'd like to also thank and recognize the budget analyst for putting together their report in such a short amount of time. so, thank you.

as you all are aware, our office is charged with preparing an estimated assessment value for mills act applications so that you may understand the financial impact before taking action. our office received 11 applications from the planning department and as mr. ram mentioned 8 of which are historical contracts duboce park landmark district and the old commercial property contract is for the property located at 1019 market. the budget analyst has all of our offices's calculationses and matt thomas again is here to answer any questions that you might have. thank you for the opportunity to address you this morning. >> okay, thank you very much. to be clear, we've just been handed is this two amendments or resolutionses? >> these are two amendmentses to the resolution for 17 72 vallejo and 1019 market. >> okay, got it. thanks. okay. colleagues, any questions for staff at this point? if not, mr. rose, can we turn to your report, please?

>> yes, mr. chairman and members of the committee. on page 48 of our report, we state that approval of the proposed historic property agreements for the 11 properties would result in estimated reduced property tax revenues to the city in fiscal year 14-15 of $152,129. an estimated reduced property taxes to the city over the initial 10-year agreement periods of a million 52 1,290 and that's shown in table 23 on page 48 of our report. ~ the budget and legislative analyst also notes that estimated property tax revenues over 10 years is a calculation of the possible impact of the mills act historic property agreement and under the provision of the mills act historic property agreement, the property must be reevaluated each january 1st to determine the taxable mills act value for that year. estimated property tax savings over 10 years that will change based on adjusted assessed

property value and property tax rate. so, therefore, the estimated property tax reduction to the city over 10 years could be greater or less than the million 52 1,290 shown in table 23 on page 48 of our report. on page 49, we report that the total estimated reduction in property tax revenues to the city in fiscal year 14-15 will be 85 4,869 when you consider both [speaker not understood] for the existing six historic property agreements which were previously approved by the board of supervisors and the 152,129 for the proposed historic property agreements. so, our recommendations are on page -- bottom of page 50 and the top of page 51. we recommend that you amend the resolution as i understand it, this has already been amended

by the department, that is the legislation that you have before you. we recommend that you amend the resolution and that's file 1404 63 [speaker not understood] authorize an exemption to the mill historic property agreement eligibility limit of 3 million for a single-family residence, and then our recommendation number 2, we recommend that you amend the resolution and again as i understand this has been offered by the department, and that's file 1305 06, to specify approval of proposed historic property agreement modify exemption to the mill act, [speaker not understood] eligibility limit for 5 million for commercial property. we also recommend that you amend each of the 11 proposed resolutions to request that the director of property submit an annual report to the board of supervisors, mayor controller and budget and legislative analyst that details for each property with an existing historic property agreement, the original date of approval by the board of supervisors of

the agreement, the annual property tax amount under the historic property agreement, the percent reduction in the annual property tax amount due to the property agreement, the reduction in annual property tax revenues to the city, and conformance of the property to the provisions of the historic property agreement. and finally, we consider approval of the proposed resolutions as a medved to be a policy decision for the board of supervisors. ~ amended >> thank you, mr. rose. colleagues, any questions for our budget analyst? okay, seeing none, thank you. we will move on to public comment. is there anybody who wishes to make public comment on items 2 through 12 at all? come on up. everyone has two minutes. if anyone else wishes to speak, please feel free to line up. good morning, members of the committee. mike bueler with san francisco heritage. and it is extremely gratifying to see this number of mills act contracts coming before you today. heritage has been involved from the outset in efforts to

streamline the proposed legislation starting with the duboce park landmark district where this issue and really historic lack of access to mills act program benefits really came to light. we are pleased to work with supervisor wiener and the planning department in crafting the legislation and we applaud supervisor wiener's leadership as well as the planning department and the assessor's office to bring these contracts before you today. as for the two properties in supervisor farrell's district, i have personally toured both the property at 25 50 webster street as well as 17 72 vallejo, and i can assure you that both properties are extraordinarily significant and also in need of significant repair. the mills act property benefits will enable those improvements to be made to the property. both property owners reached out to san francisco heritage well over a year ago to discuss their properties and ask for our recommendations for making improvements as well as

accessing incentives that are available to them. heritage strongly recommends that you endorse the resolutions before you. thank you. >> thank you very much. is there anybody else who wishes to comment on those items? okay, seeing none, public comment is closed. [gavel] >> colleagues, do we have a number of recommendations by our budget analyst, first to specifically amend items number 2 and number 4 per the legislation we have in front of us as well as kind of an omnibus amendment for all these items. can i have a motion to approve all the budget analyst recommendations? motion by supervisor wiener. we can take those without opposition. [gavel] >> do we have any comments before the -- okay, the underlying items as amended 2 through 12? >> well, first i would make a motion first to table item number 8. that's the 70 carmelita resolution that has been -- the application was withdrawn. so, to table item number 8. >> okay, we have a motion to table item number 8. can we take that without opposition? [gavel]

>> so moved. >> and then for the remaining items 2 through 12 minus number 8, to move those forward as amended and as committee reports with positive recommendation. am i correct it's 2 through 12? >> yes, it will be 2 through 7 and 9 through 12. >> okay, that's the motion. >> can we take that without opposition? so moved. [gavel] >> mr. chairman, these items will be recommended as amended as committee reports to the board of supervisors meeting for tomorrow, december 17th. >> perfect. thank you, sir. >> i would like to request the department submit the revise or amended resolutions to me by 9:00 a.m. tomorrow morning. >> okay, mr. clerk, can you please call item number 13? >> item number 13, hearing to consider the annual review and approval of the board of supervisors annual budget guidelines for the department's budget for fiscal years 2014-2015 and 2015-2016.

>> thank you very much. we have the clerk of our board, ms. angela covy here to report on the item. >> thank you [speaker not understood]. allowing our item to be placed on this agenda today for review. i am before you today to receive the committee's budget guidelines for the board of supervisors budget. the department will provide the draft budget to the committee in january. ~ where we will propose recommendations that you'll hear today as well as any others that i may hear from the committee. i'll take a moment. i have six quick slides that we can review. the first slide is the expenditures by category for the current year 13-14. as you can see, the largest expenditure area is staff, making up 75% of this year's budget at 9.7 million.

the breakdown by nonpersonnel serve as at 21% of the budget which is allocated primarily to the budget and legislative analyst services in addition to the city's c-a-f-r. the next slide is the expenditures by division. it's a relatively small department, so, it's based on the committee's direction over the years we've sought to mostly efficiently deliver the chartered duties and functions, maintaining the board's legislative record, providing public access and compliance with the open meeting laws, providing resources to the 11 members of the board, and the administrative and operations necessary to support the board in its official duty in addition to the sunshine ordinance task force, the aab, the youth commission, the local agency formation commission. this slide shows the budget by division within the department. the supervisor's office account for 52% or 6.6 million of funding. the office of the clerk of the

board is 24% or 3.1 million. the budget and legislative analyst 16% at 2 348. ~ 2 million. [speaker not understood]. youth commission is at 2% for 300,000 and the sunshine ordinance task force at 1% at 100,000. expenditures by category a the committee knows, the city has moved to a rolling two-year budget. this slide shows the 13.2 million budget approved last year for fiscal year 14-15 allocated by expense type. as you see, expenses are allocated primarily to staffing followed by contract expenditures. the divisional indication from the current year is holding relatively constant. a special note is the assessment appeals board. they experience work load changes based on the economy. as you know, a recent

recessionary period, the appeals have gone up. and during that period a backlog what created. to address the backlog, as you know during last year's budget, a clerk position for evening hearings was funded as project funding for fiscal year 2013-14 and 14-15. this position was filled in november of this year and we expect to have it continue through fiscal year 15-16 when the backlog is anticipated to resolve. the 27aiing for the evening clerk position will be removed. that will be a reduction of 109,000. aab expects the number of appeals will continue to decline and it projects a $50,000 decrease in revenue to our department's budget in 14-15 ~. this slide shows budgeted and actual revenue from the appeals to illustrate the peak year and [inaudible] and the reduction since in revenues from appeal filings. and now for my final two slides.

it is a list of items that need to be addressed in the new budget. first, to reiterate, there will be a decrease in revenue. so, the general fund will be requested to offset that decrease. second, the department has selected harvey and rose associates through a competitive process and we are nearing finalizing the contract negotiations. mr. rose's group has proposed a contract hourly rate increase as the contract rates did not increase from 2010 to 2013. at the committee's direction in january, i will make a recommendation for a cola increase in the draft budget and will work with chair farrell on that proposal. third, i propose increase funding for bilingual premium pay and legislative assistant premium pay as required through ifpte local 21's m-o-u.

some of the legislative aide's regularly provide stern says of english use [speaker not understood]. they are entitled to bilingual premium pay in addition. the department expects that more legislative aides will become eligible for the legislative assistant premium in fiscal year 14-15 and 15-16. this will add approximately 25,000 to the department's budget. the job class changes in the clerk's office. as the committee may recall, i have made several changes throughout the years. some positions we've downgraded as we've seen high profile retirements and as we've hired new staff, we've hired them at a lower classification and now that they've had that experience we are moving them through the process. and to create a ladder in the department, we are now moving those positions up to their original classes. i will be requesting upward changes in two positions in my

office, our accountant position from a 16 52 to a 15 64, and our 81 16 legislative calendar clerk to an 81 18. this request is based on a review of job duties and selection of the appropriate class with dhr. these changes will increase the department's budget by approximately 44,000 in salaries and benefits. and fifth, the board of supervisors's budget includes membership in the following three associations. the national association of counties, the national league of cities, and the california state association of counties. currently we are sharing those expenditures with the enterprise departments. we understand that the california state association of counties has raised their fee by an additional $40,000. i will work with the committee in january to discern whether or not the committee is interested in funding that

increase in the department's budget. second to last, information technology. the department needs a new file server at a cost of 14,000 and maintenance for our aab, online system, which phase 1 is completed and we are now moving into phase 2 and we're on target for that project. we will need an additional 24,000 for that project. and finally, other recommendations by the committee, i'm happy to work with the committee as well as members of the board over the next several weeks to ensure that further guidelines that the department is interested in seeing be placed in the budget is, in fact, prepared so that when they bring it back to you in january, it will be close to being complete. that concludes my presentation. i'm available for questions. >> thank you, ms. covy. supervisors, any questions? >> yes, please. thank you for the presentation and your work on the guidelines

for the clerk's budget. a question about premium pay. could you go into a little deeper describing what that is? what are the changes that you're proposing, what is currently the status of premium pay for -- >> yes, specifically, if we're talking about the legislative premium pay for longevity, the legislative aide is working for the same supervisor for a period of four years and the fifth year they are working at the top step and they are entitled to an additional percentage based upon the m-o-u for retention and any special skill the supervisor may feel that they have. the bilingual premium pay, i understand that it is the supervisor who is working with the legislative staff. if the supervisor feels that the number of hours per day the legislative aide is utilizing of the extra language or languages, in some cases, then

the supervisor will let me know that the aide is in fact utilizing premium pay and meets the standard of the premium pay requirements. >> so, we currently have the ability to do that, but just haven't enacted premium pay? >> supervisor avalos, we don't have the funding in our budget, but this is the first year since i've been the clerk of the board that it has been requested of the department's budget. so, we'd like to provide that service if supervisors would like us to. >> and i think it's worthy of supporting. >> chair farrell, if i could just thank joe [speaker not understood] for all of her work on the department's budget. i wouldn't be able to stand before you without her good work and that of deborah landis. >> thank you very much. if with there are no other questions, we'll open this item up to public comment. seeing none, public comment is closed.

before we adjourn, i was just informed this is mr. victor young's last meeting as our clerk of our committee after now i believe a number of years of service. so, certainly we did the budget season together last year. thank you for all of your hard work, victor. you're going to be hard to replace, but thank you for all of your time here and look forward to working together, you'll still come bay and help us out once in a while. >> have we taken action on 13 yet? >> we will do that. first of all, can i continue item number 13 to the call of the chair? we can take that without opposition. [gavel] >> victor actually was budget chair when i was first -- he was clerk when i was budget chair in 2009 and the year before that. i think it's been at least six years that you were on the roll, but you served as the clerk for this committee. i know it's a lot of work and you've done a fantastic job and thank you for your service. >> thanks, victor. >> thank you very much. >> mr. clerk, do we have anything else before you? uous? >> that completes the agenda for today. >> okay, we are adjourned.

[gavel]

i would ask that you shut off any electronic devices that may go off during the proceedings. if you wish to have a private conversation, please take it outside. if you would like to speak on any item today, if you can please complete a blue r