>> all right. good morning, everyone and welcome to the board of supervisors budget & finance committee for wednesday, march 5, 2014. my name is supervisor farrell i'll be chairing this committee i'm joined bill supervisor avalos and we'll be joined by supervisor mar as well >> madam clerk, any announcements? please silence all electronic devices. and items appearing on today's agenda will be on the next

meeting. >> call item one. >> llc to have the are replacement services not to exceed $60,200,000. >> we have dph here. >> i'm the deputy financial officer this is for uncommon sat down care or recovery this contract represents medi-cal appeals and they evaluate be patients for eligible and they assist us with the services we typically can't recover that with without their just an $34 million is the estimated amount and after we pay fees to the krashlth it's a net revenue

of 28 million to dph. thank you very much colleagues, any questions mr. rose your report please. >> thanks madam chair on page 4 we reported the fee payments for medi-cal replacements to be made by the dph for the contract are $5 million $300,000 plus in table 4 of our report and on page 5 we report that the contract includes a amount of $33 million for replacements. so the total estimated payment to help are $600 million which is 4 hundred and 19 thousand not

to exceed the contract will amount of $600,000 plus so therefore our recommendation on page 5 is to reduce the not to exceed contract of $4 million to $67 million 3 hundred thousand plus and we recommend you approve the resolution as amended >> colleagues, any questions. public comment any comment on item 1 seeing none, public comment is closed. we have some recommendations do i have a motion to accept >> can we take those 1 o'clock. and the motion to approve those >> so moved. >> madam chair i'd like to ask the department submit the adjustment for tomorrow morning.

>> so at the 9:00 a.m. tomorrow. >> yes. thank you very much madam clerk, call item 2. >> it's approving the execution of the building in the plot 90 between southwest airlines and the city of san francisco with the rental amount of $104 million 3 hundred thousand for the boards approval. >> thank you. we have ms. wagon we have commented you should have an office here at this point. >> i thought you were going to say i hadn't been here for a few weeks. >> the we did. >> this is for the south west airlines for 4 hundred plus square foot ever cargo

warehouses space in order for the airline to conduct it's cargo operation. southwest has been operating on a permanent basis and this 5 year lease will lock in a structure they currently pay the airport 2 hundred thousand flue plus a year and this is subject to the annual adjustments based on the calculations. the airport has a guaranteed rent of 1 had the $3 million of the 5 year term and the budget analysis office recommended approval if you have any questions, i'll be happy to answer them >> thank you. any questions. mr. rose our report please. yes madam chair and members of the committee consistent with her comments on page 8 on the

bottom summarized in the table one southwest pays $362,000 for airport building 606 that's $28,000 plus a month. under the proposed new lease they'll continue to pay the same amount of rent but that will be subject to the airports subject annual rate adjustments so they'll pay nine hundred 213 61 at least for the is square feet of the ramp and that concludes annual rent we recommend you approve that >> thank you. any questions. seeing none, public comment on item 2? seeing none, public comment is closed.

colleagues, we have this item before us can i have a motion >> so moved. >> city clerk 3 items together. >> the administrator code for the administration in this area are considered local for the participation for the cities local hiring policy on certain locations item 4 is the resolution to expend the period review of the city's local policy and to determine the policy. >> i'll hand this over to the supervisor avalos. thank you chair farrell those who pieces of legislation legislation are the local hire ordinances that was passed by different configurations of the

board. the board can weigh in on the local hire issues before i talk this this is a resolution that would keep the mandatory percentage at the thirty percent while the city does a review period to see how the program for local hiring is working. the program review will look at the pipeline building and the workers and what perhaps with the contractors and what concerns from the contractors and ways we can see the troublg shoot any program features. we want to make sure we're providing the workers to meet the mandate. it make sense to keep it another thirty percent if we did nothing

the mandate would rise on march 23rd of this year. it's something i said we'd do back in 2010 there was concern that we were doing this right and i thought we would study it before we ramp up we're at the time now. i hope you support this resolution and in view of the workers in their supportive of this measure. the item number 3 is related to projects that are in the jurisdiction of the public utilities commission. it's my intention that we would extend the local hire principal to areas in the region that pay for the infrastructure that we're developing.

instead of actually doing that we created a 70 mile jurisdiction boundary of the united states that covers a lot of the public utilities projects and we feel the public utilities commission came forward with a defined region where rate pairs are paying and it extends beyond the 70 mile radius so essentially this will allow for workers outside the 70 mile boundary but whose region is paying they'll have access to the jobs that are being created in the service service of the public utilities commission i don't believe there's an item report on item 3 and if anyone is here to talk about the department we have pat here to talk about item 4 and perhaps 3

i can call him up to talk about item 4 >> thank you. the extent in the legislation review are period allows the office workforce development to have better data to accommodate 12 months of data. there's a significant lag time in how our office requires the data the percentage is based on the advertising date sometimes 6 to 12 months and an additional two most. so at this point it's different to measure the impact of thirty percent and it's important to have that benefit. with regard it the 70 million provision there were provisions

in the original provision we speak to the agreements that worked for san mateo community because of the nature of the puc territory it crosses any counties so thank you, supervisor >> thanks any future comments. okay. we don't have a budget analyst report anyone wishes to comment on items three or four can you do that? walter welcome back >> it's been a hard budget day and you've been working like a dog. it's been a hard budget day and i know budget you're going to my. but when i come home to you and the budget is all new you know

you'll make it, all right. . when we're budget home everything seems to be right. when we're budget home it's going to be budget right, right, right yeah. we're going to budget really good we're going to have a really high rate and it's worth it just to hear you say that your budget is going to pay but why on earth should we money because the budget is in the city doom it's going to be all right. the budget is going to be all right. >> thank you walter anyone else for public comment seeing none, public comment is closed. all right. colleagues, we have those items before us sponsored

by supervisor avalos can i have a motion >> i'd like to be added as a co-sponsor of both and move we support into both items. >> okay. we have commissioner dooley's as co-sponsor item 5. >> item 5 is the resolution retroactively authorizing the police department to spend approximately 2 hundred and thirty thousand 40 from the governor's for the fantastic force program. >> okay. thank you very much welcome back. >> i'm with the san francisco police department i was going to say this but walter took my statement away from me. >> go ahead you you can. >> with me is our budget grant

guru and tony who is with me we're asking for the approval for the first one hundred and 39 plus with the 71 thousand for a grant total of 2 hundred and thirty thousand 5 hundred and 29 human trafficking i mean grant trafficking grant program. 25 percent of that goes to the asian pacific islanders so we are asking for the approval of this grant >> thank you, captain and this was heard last week, we held it over one week. my any questions. open this up for public comment anyone who wishes to comment on this item.

please step forward >> at the anti human could by that time in a we're going to have a budget in this city at the human city music and budget passion and the budget is going to last in the cop pa. you'll make a good please make the budget good and make that great. >> walter that looks like a silver metal you get a gold metal for what you do here. >> it's a penny. >> anyone else public comment seeing none, public comment is closed. colleagues can i have a motion to send this is to the full board >> we move that to the full

board. >> this is a budget analysis report for the america's cup and for the america's cup see event in the workforce development and local small business plans for the local hiring program for the use of the importance of the hiring. >> thank you. this hearing was sponsored by supervisor avalos i believe the report was for that i'll i'm going to turn it over to him >> thank you supervisor farrell. this was a report i asked to get drafted of october of last year, we wanted to see how the america's cup authority met it's commitments and we sought the

approval to put on the event. it was my concern the cost to the city and whether we were going to say the inclusion of small businesses that would benefit from the event. we'd actually be meeting our local goals for hiring. before that october of last year, i held several hearings on the subject on costs and at least one or two on the inclusion of small businesses and the hiring practices. this report is on the earnings. we are getting the commitments but not getting the tracking and improvement that insures those commitments were followed on but i believe we have ms. campbell

from the office of the budget analysts or mr. rose >> i'm from the analysis office. i want to set i am the power point. we were asked by supervisor avalos to prepare a report for the 34th ownerships. we looked at the economic impact report that was responded we

look at cities revenues and expenditure the america's cup organizing committee to raise the fund to offset the costs and the initiative authority for the local small business solution plan. the 34th america's cup was the 2012 raise for the indicating man from 8 countries and those were from october and then the 2013 were the main america's fire department in july to september. there were only 4 hundred pomegranates in those races. so the event authority managed the cup and it was the fundraising and the community outreach arm of america's cup. the city entered into two

agreements the first a was the host and venue all the time in john january of 2011 they were to provide the waterfront use for the water authority and provide other sources. the board approved the agreement that set the terms for the licenses at the event authority and to make improvements of the properties that concludes m - >> so they have no costs what would have been the costs the lazy? >> the rental costs right. >> and on the lease deposition agreement what are the costs to the city and we'll go over those. so in terms of the economic

impact the office of economic workforce contacted the bay area institute and the economics to suggest what the impacts would be to the city to have the america's cup here this was in 2010 before the city was the host city and the impact analysis was based upon 15 syndicates but there were only 4 race sin cats so by the end of the 2013 when the bay area economic couldn't u council reviewed the impact their estimate is much lower so the impact to the city and its resident is 3 hundred and 64 million which is only 24 percent of the billion and in terms of the jobs 1 hundred plus jobs were created this was 24 percent

of the jobs >> in terms of - >> if i'm clear the 2010 report says the economic activity overall economic activity would be $104 billion and we added up 3 hundred and 64 $.4 million so that's over a billion dollars off. >> that's one way to look at it, yes. >> so this would in 2010 there was so much high blood pressure i questioned it at the time. i am not saying i'm right but it seems like there's the way the city goes b.a. about promoting those events that's disconnected from reality a billion dollars off 0 not right

>> the actual number of speculators was lower so the city was much less than anticipated. >> it's not just we're off but we also did a lot for the event based on the original numbers. but it set in motion a great deal of resources the city put forward >> we had costs for environmental reviews that were somewhat fixed. in terms of actual city expenditures we be went back to the city departments so if you look at the city expenditures the report suggestions there's 6 million of the general fund loss

and other fund losses. the city expenses includes the environmental review for 25 million it's less than the original estimates of 50 million because the city departments operating costs were less because of fewer speculators - >> i'm sorry, i don't want to cut you off but when you say port expenditures of 4.56 million the port did the economic by the people from the america's cup event. >> that's right i'll go through those. that's the city department costs 89 million were for virile review so in some