>> >> >> good morning everyone and welcome to the san francisco budget and finance committee

meeting for february 26, 2014. my name is supervisor mark farrell and we are joined by supervisor avalos. and i want to thank sfgtv for recording today. madam clerk, do we have any announcements? >> yes, please silence all electronic device and cell phones. any items you wish to speak on please fill out a speaker card. >> madam clerk, please call item no. 1. city clerk: item 1: 131218:agenda[real property lease - employees' retirement system - 1145 market street - $119,228.21 monthly]1312181.sponsor: cohenresolution authorizing a 10-year lease of 37,289 sq. ft. at 1145 market street, for office space for the employees' retirement system from 1145 market street, lp, a california limited partnership, for $119,228.21 monthly for the period of july 1, 2014, through june 30, 2024.

city clerk: sf 11234 farrell we have mr. up dike to speak on this item. >> good morning. we heard loud and clear at our last discussion and i have with me the changes when we last discussed about a month ago. we have reduced the space foot print of the lease by 1700 square feet and about a $700,000 savings over the term. we have reduced the tenant improvement package by $145,000. we have reduced the interest rate on the additional tenant improvements that would have to be amortized over the 10-year term of the lease. that 2

percent reduction from 8 to 6 percent, a very competitive number with respect to borrowing private sector funds will yield about $131,000 in savings. what we have also done while we have affected all of those reduction is we have retained the market rate of $38 a square foot at the base rate. you may recall the chart we had as annualized base. we feel very confident we are below market on the rate. we have retained the 1 month free rent. we have retained a little over a half million dollars in base improvements that the owner will be required to improve

that don't count against the tenant improvement. we try to get more bang for our buck on the tenant improvements. lastly, the requirement system in tends to have a partial lease back of the space to prudential, their current provider of deferred comp through party administrator of the deferred comp program. that will help again and little additional offsetting expenses. the details are in the budget analyst report. we certainly concur with all the information submitted in that report and happy to answer any questions you might have and we are joined by mr. hughes, the executive director and his board member mr. make riis. thank you. >> thank you for being here. supervisor avalos?

>>supervisor john avalos: thank you. we appreciate you providing us with an alternative that saves us a bit of money. i appreciate that effort. i talked about going to the retirement board office and i have been so busy and i wasn't able to do that. i know that president mac and i were in communication about doing that. so there was somewhat of an effort. most of all i do appreciate coming back with new numbers. i have other questions, but we can hear the budget analyst report first. >> sure. why don't we do that first. >> i have one other question. >> your report, please. thank you. >> mr. chairman, members of the committee on page 4 of our report we point out that it's shown in table two the proposed amendment lease

reflection of 1710 square feet with savings about 4.6 percent or 1500 per month on $38.50 per square foot per year. the employees retirement system will not pay the first month rent to the landlord which was negotiated by the division so the savings is $510 for the first 6 months. on page five of our report we note the plan currently pays $24,000 in annual rent for the city owned on van ness and they pay a rate of 2256 for 22,00041 square feet. they will pay 1.3 million on an annual

basis over 38.26 per square feet and for office and bike room space. as shown in table 3 on page 5 of our report, under the proposed lease, the employees retirement system will increase the office space by 53 percent, the rent paid per square foot by 70 percent and annual rate by 60 percent. we note on page six that the lease is originally submitted would have cost the employees retirement system a total of $16 million and that is $751,000 than the proposed amended lease cost over that 10-year period of $15 million. on page 7 of our report as

mr. up dike has indicated, the improvements goes from 8 percent to 6 percent. i would also note that the mayor's office is presently evaluating whether a one time budget appropriation of $1.61 million would be the cost for the city's share improvements would be preferable in a budget appropriation in lieu of paying $147,000 for 10 years. that decision has not been made as of the writing of our report. finally on page nine, we recommend that you approve the resolution as revised by the real estate. >> thank you. do you have questions for mr. rose or up dike. >>supervisor john avalos:

it's for mr. hughes if he's here. thank you for your patience and flexibility for this item before us the second time coming here and we had questions about something related to what was before us before and i don't have those questions today but i want to be continuing to have a relationship and conversation with you about the fossil fuel issues. but one thing i want to ask there has been a discussion about wanting to have the commission meetings for televised and that can be created for the space for the meetings and we can see that happen in your budget for next year. what are your thoughts about that? >> supervisor avalos we've already had that consideration and we have in the budget that we'll be presenting to this committee later this year to have the funds to tell

televise the meetings because the meetings are every wednesday there might be conflict as to live tell cast. but we have in the plans in the budget for you to consider and approve to make it available on a live basis if the schedule permits. >> is that possible to have the meetings televised on a live basis? >> because of the day of our board meeting is set by policy there were conflict with the board of supervisors committee meetings and we couldn't get it on a live schedule and we didn't pursue it through sfgtv and i assume that's the way to have it televised because that's the way people would look for them. unless there is a position with the retirement board to change their meeting date to accommodate a live

broadcast, i'm not sure that we won't run into some sort of a conflict with a live tell cast because of the commitment to the board of supervisors meetings. we definitely have it in the plans and i would like to thank the committee and budget office and real estate for getting this revised resolution before you and appreciate the support. >> thank you for all of your efforts here and i'm glad we have this revised proposal before us. anyone wish to comment on no. 1. please step forward. >> my name is kathy seesh an, a member of 350 san francisco climate organization. i'm also by way of identification a delegate for the san francisco council identifying engineers and scientist at the u.s. environmental protection

agency. i have two comments on this item. the first one is that i support having safe and effective work places for the city workers and so to the extend that this proposal may facilitate that, i would be supportive of it. but the second is also that i'm a strong advocate of open government and of people being able to see how the decisions are being made and what's being said by whom. to that extent i would like to say what's already been said by supervisor avalos that i would really like to see these meetings televised, if not live. life would be preferable, but if not for them to be available to all of the city's retirees and active employees so they can see the deliberations that are of great importance to them. i don't know whether that needs to be tied to this item or

not, i will leave that up to the committee to decide that. thank you very much. >>councilman o' farrell: thank you. any others? >> hello, i'm with san francisco, i would love to echo kathy's statements. we spoke at the last time this committee saw this item about access to meetings, access to recordings. since then it has actually come up that there are some vague question about the record and we can't go back and just very matter of factually who said what. so that would be really great. at the february 12th meeting since the last time i spoke before you i attended the retirement board meeting and despite spending 3 hours there, the items i was most interested in were at the end and i came back and found out that post 5:00 the

receptionist is gone and you cannot reenter the meeting. i'm not sure if that's even okay. it's fine for me to go home and check the archive later if there is an archive, if there is not an archive then it's a genuine problem because it's impossible to know what happened at the meeting. i would love to echo kathy's statements if this is agreeable to the budget and i would like to thank you for including that in the budget for the retirement system. i'm not sure of the best locus to include the televising issue, but i think at this point especially with this kind of issue of public concern in front of them, it would be this time to make this happen. thank you very much. >> thank you. next speaker, please. >> good morning, budget and finance. oh what a beautiful morning.

oh what a beautiful day. i got a beautiful feeling on this item surely you will pay. welcome back walter. >> motion to approve. motion made, we can take that without opposition. madam clerk, please call item no. 2. city clerk: supervisor?

>> i believe the department of real estate was proposing amendments to reflect the changes in the lease. so you should accept those amendments before you adopt the admonition. >> okay, we'll do this. can i have a motion to rescind the prior vote. we'll take that without opposition. the amendments made by the director of real estate. can i have a motion to accept shows amendments? >> motion to accept those amendments. >> we'll take that line item. so moved. madam clerk call item 2. city clerk: item 2: [appropriating $4,515,000 from the general fund reserve for nonprofit rent stabilization program - mayor's office of housing - fy2013-2014]1400082.sponsors: chiu; kim and avalosordinance appropriating $4,515,000 from the general fund reserve to the mayor's office of housing for fy 2013-2014 establishing the nonprofit rent stabilization program, and placing these funds on budget and finance committee reserve pending a report from the nonprofit displacement work group to the board of supervisors 1234

>>supervisor mark farrell: supervisor avalos? >>supervisor john avalos: i would like to call the chair to hear in mid-march. >>supervisor mark farrell: we have a motion to continue this item. anyone wish to comment on this item? >> good morning supervisors. picarello. is there a reason why you want to fund this program at this time. it seems to me this program has not been proposed on enacted by the board of supervisors. i would like to see what the parameters of the programs are before you allocate a million dollars to this program. >>supervisor mark farrell:

thank you very much. next speaker please. >> i want to know what budget housing is. i wish you would show me. i want to know what budget housing is. i wish you would show me. and there is a place for us housing place for us and you will stabilize the rent you could. someway you should someway somewhere today. >>supervisor mark farrell: thank you walter. anybody else have public comment? public comment is closed. we'll take this to the call of the chair. >> i just wanted to be added as a cosponsor to this chair and look forward to a

discussion m in march. >>supervisor mark farrell: great. we can call it to supervisor mar. please call item 3. city clerk: item 3: [accept and expend grant - anti-human trafficking task force program - $159,469] 3. 140067 sponsor: tang resolution retroactively authorizing the police department to accept and expend a grant augmentation in the amount of $159,469 from the governor's office of emergency services, for the anti-human trafficking task force program, for the period of october 1, 2013, through june 30, 2014. city clerk: item 3: [accept and expend grant - anti-human trafficking task force program - $159,469] 3. 140067 sponsor: tang resolution retroactively authorizing the police department to accept and expend a grant augmentation in the amount of $159,469 from the governor's office of emergency services, for the anti-human trafficking task force program, for the period of october 1, 2013, through june 30, city clerk: item 3: [accept and expend grant - anti-human trafficking task force program - $159,469] 3. 140067 sponsor: tang resolution retroactively authorizing the police department to accept and expend a grant augmentation in the amount of $159,469 from the governor's office of emergency services, for the anti-human trafficking task force program, for the period of october 1, 2013, through june 30, city clerk: sf 31234 good morning supervisors. i'm captain joe mcfadden and with me our officer for the human trafficking and from the

police department. i'm asking for authorization of acceptance of a cal i ama grant. the original grant was for $200,000 that was in october of 2012. we have received additional augmentation of 2013 of $109,000. for $159, 469 in december 2013 and we have additional augmentation of january 2014, $71, 060. this is for human trafficking that is rampid in the bay area and a national and international crime area we are running here. sergeant has run the program and we have been very successful in some of our programs and we continue to use this grant money to do what we are asking for is authorization from the board of supervisors to continue this and to accept the new budget augmentations. >>supervisor mark farrell:

okay, thank you very much captain. quick question for you. i believe the file we have is for the 159 and not the 71. is there an amendment that we are introducing or can we do this orally to our city attorney? >> deputy city attorney john gibner, you can make the amendment orally and the department should submit a revised version to the resolution after the meeting. >>supervisor mark farrell: okay. >> it was sent over and we are trying to find a copy of it.

and we do have this. i don't know exactly where it is. >> when you say send in, city hall is a lot of people here. when you say send in, as a budget director i haven't seen it. >> certainly, i believe we received at an amended legislation. an as i understand the police department has received subsequent grant amendment from kahlo yes that would increase the sides size of the grant from the number before you by $71,000. so that's the amendment that we were hoping could be made today so that you didn't have to hear two accept and expense. >> if we can do this orally,

change the dollar amount by the additional $71,000? >> you can make that change orally and the department should submit a paper copy to the clerk's office and the committee will need to continue the item and hear it again next week because the amount is increasing. >> regardless whether it's oral or through paperwork? >> yes. >> so, we'll do that. we'll make a motion to amend to our department to get it to our clerk right away the fiscal amendments and we'll hear it next week as amended. >> will we hear it today? >> we'll hear it next week in one packet to our budget director. >> just so you have the exact amount it needs to increase. it's $71, 0 #6 0.

>> it should be 259. anybody wishing to comment on this item? walter? >> i got a surprise for you. something you didn't really want to do. you waited so long. waited so long. i have got two tickets to not paradise. make your bags and let this item ride. waited so long. i have got two tickets to paradise. make this item,

make it right. >> thank you. walter. is there any additional public comment? seeing none, public comment comment. can i have a motion to accept the amount? >> so moved. >> we can take that without objection and can i have a motion to continue the item to the meeting on march 5th, correct? >> that's correct. >> we'll take that without opposition. madam clerk please call item no. 4. clerk item 4: [contract - sheriff's department - secure reentry program facility - $4,195,576] 4. 131229 resolution authorizing the sheriff's department to enter into a contract with the california department of corrections and rehabilitation cdcrr to contract for accept and expend up to $4,195,576 to establish the secure reentry program facility srpff; the sheriff's department will provide housing appropriate for program delivery; the adult probation department will provide intensive, in-custody evidence-based reentry programming, which will address offenders' underlying criminogenic

needs; the sheriff's department and adult probation department shall jointly report to the state legislature and the cdcr on the implementation of this srpf after a period of one, two, and three years as part of this pilot program, to commence upon board approval for a item no. 4. clerk sf 41234 >>supervisor mark farrell: okay. welcome. thanks for being here. >> supervisors good morning. i know there is a budget analyst report and we appreciate the work that the budget analyst has conducted. this is really a very important day and it's one to i think recognize the fact that it's a partnership and precedent for the state of california that you have the elected county sheriff and the chief of adult probation that is here to help conclude what has been an on going negotiation with the california department of corrections rehabilitation. cdcr for the last 2 years. this is a first for the state of california for any county sheriff's department and adult probation to collaborate and partner up on what we are referring to is a pilot project in the eyes of the state known as the creation