they referred to the champion of having the honor of putting open the necklaces race and while tailors ways to get back money they spent more than they took in. once you load on the team costs that's part of the syndicates the 872s were expensive to build and operate. you'll see the comments in the media finding the derivatives that will reduce the number of people on the boats and actually put down on the water and getting more syndicates they put out the money without return >> the boats were put together by - and oracle.

a race only oracle can win >> that's not a thing about the america's cup. by righttwo: that's the highest level of quoting they have a tack all composition >> i want to request as the negotiations go forward i ask and appreciate your discussion as how the costs won't be as high because we've done the performance already so in the future fire department i think it make sense that we are able to understand get a better commitment from alison and

oracle about, you know, they would pay more for using our facilities. that's my part and we said the business plan is going to have to be well-thought-out >> supervisor campos. >> thank you, mr. chair. thank you supervisor avalos for calling for this hearing i think it's long overdue. and following up on the question that supervisor avalos asked about oracle and mr. alison how do we know he lost money. i want to be sure we're careful about making statement we know their accurate. i imagine mr. alison will say he lost money >> this is in my opinion without reviewing the information i'm sorry you took had this as a fact.

>> i wanted to make sure the more money you have the more you're willing to play the violin and, you know, and complain about how bad things are yet i've yet to see the verification that mr. alison lost money and from the budget analyst report it's a thorough report shows it the city the general fund was hit, you know, people get the general fund at the tune of 11.5 million so i just think that we have verified that number but not verification of the numbers on the other side. >> i don't disagree with that. >> replacement when the america's cup was first brought

up to the board and i went meeting with governor newsom and his office. the way it was presented you would have thought san francisco 0 won the lottery and it's as large in scale in terms of the economic impact as the olympics are the world cup a that's certainly in a way it was presented to me. it's important to note that the actual economic impact was less than thirty percent than was first projected. it's important to note that promises were maiden with a scale down event that were not

met and you know, i i think that our brother from labor also pointed to a very important point if you can't do right by workers in san francisco where can you do right by workers in this state of the country. i'm not against san francisco hosting america's cup. but i want to make sure we get a good deal. and i know that mr. alison is good at norwalk for himself i think we the city needs to get better at that negotiating. if we're going to move forward with hosting this event we need to make sure there are delineated goals and those

benchmarks are met and there's careful tracking of compliance with those benchmarks because we know that for instance, if you look at the workforce ps that the event tolerate didn't work with the mayor's office in 2012 to route san francisco resident for event related contracts. we need to make sure we do something that's fair to everyone involved and fair to the taxpayers so did city i'm grateful and happy that some businesses bend love of the businesses on the waterfront don't share that prospective. you know, the views range if people who feel knoll to people feel it was more of a negative.

so i think we need to have a comprehensive assessment of what the benefits truly have been in going forward and making sure we're very clear about our expectations and especially clear about what's expected in terms of the contributions of san francisco taxpayers. thank you >> supervisor mar. >> thank you, mr. martin for the presentation. and also to the budget analyst for their thorough report. i support the conclusions of the budget analysts in saying any agreement between the future events host requires payment to the city other than services routinely provided by the city and on the local hiring issue

thank you to the carpenters and others for insuring with the workers finally get paid their fair share. i support the budget analyst report recommendation and make sure there's more a better local hiring and that the benefits our local workers and residents those commitments be strongly monitored and we have iron clad guidelines so they can't be violated again. i want to say as the bay area council presented this report with the estimated $1.4 million of economic impacts we as a city especially o e w d should have been looking at more careful that's a lessons from the whole period of the rosy report to the

bay area councils follow-up from late last year as well as much more critical eye and the economic numbers. i know that america's cup organizing committee made commitments of $32 million and how to make a better system it's not just a goal but there are clear benchmarks and we're at least holding those people account. i want to say as the port members came in kind of late how we can look at accident pictures to have a thorough economic number before us as we consider proposing to host again. a lot of the lessons i think my colleagues supervisor campos and supervisor avalos have made i agree with those but i hope we

use the budget analyst report recommendation to protect the general fund and holding those entities responsible. i visited erode the bicycle sharing transportation improvements to the america's cup and as the championships were being held and i appreciate the economic benefits and the point that if more than 14 participated it's more lynn like the estimated teams we're not in the economic situations but as one of the speakers said my hope is there can be commitment to having more than 4 teams as the process for the america's cup for 2014 moves forward. i don't know if mr. martin can

talk about as the america's cup moves forward to light into it to have an adequate number of teams that parliaments that impacts the city. >> supervisor mike martin. i would say that's certainly part for the dialog i hope the boats will encourage more folks to join. we have a push-pull here in our discussions so far we want to see a consolidated area where the teams are closer to the speculato spectators we want to fill that space out and individual the economic benefits

>> i worry about if we hadn't had the come behind oracle team we would be in a more horrible situations. is there any way to make sure there are more adequate teams >> i don't know if there's a way to guarantee your guaranteeing the acts of third pirates but we can sensitive that the next business plan will have to build that in we can't go from projects this time >> i appreciate the small businesses talking about the benefits but it's really difficult was there are interpretation commitments made and our general fund is taking a

hit given within our deficit. >> thank you, supervisor. >> all right. i just from my prospective mike i want to thank you for being her and thanks supervisor avalos for calling this hearing. we need to look back on this event. i for one you know obviously there are more than anything kind of lessons learned here i came into office and i remember the hype and those rosy projections tlrsz there's lessons learned about setting expectations einstein there were a lot of disappointment.

but also the interplay between the organizing committee that was all done on the fly. as we look forward and i'm hoping to get the america's cup back for 35. i'm confident we'll do it better from a city prospective. there are things be having to look at as well maybe some other point in the future but the economic impact to the city is what we received because those races were pumped will throughout the world. so not everyone went but those who did loved being a part of it. i love to promote those types of event in our city it makes san francisco a more dynamic place to live but we want to make sure

we protect our assets. i think we ail agree. so thank you, mr. martin to the entire staff and thank you supervisor avalos for asking those questions and let's moved on this together. unless there's any comments can i have a motion to file this hearing we can do that without opposition madam clerk, any announcements? >> no mr. chairman. >> see you a one we're

good afternoon, everyone and welcome to our first full budget and finance committee meeting for 2014. on wednesday march 5th and i'm supervisor mark farrell and i'm joined by mar, and supervisor john avalos and london breed and supervisor wiener. i want to thank the members of sfgtv covering this meeting, jennifer and the clerk of the committee, ms. linda wong. madam clerk do we have announcement. >> silence electronic devices and complete speaker cards and items will appear on the board of supervisor agenda unless otherwise stated. >> madam clerk, call items 1

and 2 together. >> item is a resolution approving a performance contract behavior health services and the department of health care services incorporating the mental health act in transition for homelessness and health services grants, program for the period of july 1, 2013 through scombrun 30, 2014 and authorizing the behavioral service so sign at greement ed agreements. resolution authorizing adoption of the fy2014-2014 annual update to mental health services act program and expenditure plans. >> okay. thank you. we have sims ons to speak on these items and thank you for being here. >> hold a second. can we make sure we have our mic lit up. >> is that better.

>> so the first item, the performance contract is a zero dollar contract that basically includes the conditions and requirements that the department needs to meet to get these different streams of funding, the federal funding, the past grant comes to serve services for homeless individuals, the mental health block grant is broader, and that comes through the state as well and the mental health services act funding that comes from the state controllers's officer month so they have their own mechanism of funding authority and go through the regular budget process. the state recently let the department know that we needed to get a resolution from the board, adopting the performance contract. it's not a contract that has been required for four or five years. the state recently transferred from the department of mental health over to the department of health care services, all the over sight for mental health so in that

transition, there was a feeling that the state that we needed to update this. so it's about data reports and do you want me to update -- the second item, the mental health service between 2005 and 2006 and we have plans and the annual update is the requirement to provide an implementation update so be update all the plans at one time and just as a side note, very soon i'll be back to present a resolution for adoption of an integrated plan for the next three years which is all those pieces together. but this is just for the annual update. >> okay. thank you very much. colleagues any questions? okay. we have a report from our budget analyst, why don't we go to

that now? >> good member dhar farrell, this is a zero dollar contract. it sets up the conditions by which the city accepts funding for the prop 63 and other federal grants for mental health services and it's fiscal year 13-14 and it's retro active and the board has approved $30 million in the 13-14 budget. they'll have to be another approval for the 14-15 approval and the estimate budget for 14-15 is $34 million. >> thanks. i presume given that the 14-15, we'll have the resolution before us, so it's not retro active. >> that's the goal now that we know the state is going to ask for it. >> i can't wait to have these come to the board of supervisors. colleagues, any questions. president mar. >> i wanted to ask mrs.

simmons, i know the budget items will come later for the department, but do you have projections for what the state's mental health funding will be coming up this year with the governor's budget, do you have any projections right now? >> overall budget, i don't. for these three fundings, the information is in there and it's my area and that's what i can speak to. >> okay. and i know with discussions about laura's law and even within the mental health commission, lots of debates and discussions going on that it seems like an important -- your budget items but the state's funding of mental health services are reestablishing a lot that was cut over the years and that's critical so i'll be looking forward to the information that you and others provide later. >> we're launching a planning commission and i'm sure the

board has looped in on that. but being around individual that's have been difficult to end gage into services so i think the laura's law sits into that discussion and it's a tool that we have to work with folks. >> okay. thank you. colleagues, any further questions or comments. okay. thank you. at this point we'll open up to public comment. seeing no public comment. public comment is closed. colleagues we have two items in front of us. can i have a motion to move to the full board. >> so moved. >> we can take that without objection. >> all right. madam clerk, do we have any other business in front of us? >> no, mr. chair. >> all right. we are adjourned.

>> good morning, this meeting will come to order. this is the regular meeting of the government audit and oversight committee. i'm supervisor london breed and the chair of the committee and supervisor tang and supervisor chiu will be joining us now. and i also want to thank sfgtv jim smith and jonathan. madam clerk, do we have any announcements? city clerk: please silence all cell phones and electronic

devices and please include in the copies into the file to the clerk. >>supervisor london breed: thank you madam clerk please call the first item. city clerk: agenda[hearing - implementation of audit recommendations status]1310431.sponsor: cohenhearing on the update by the city services auditor on the status of implementation sf 11234 >> good morning supervisors. my name is tonya, i'm the director of city audit of the controllers office and with me is cat skog an. we are going to talk about our follow up process for audit and memorandum issue. the benefit from audit work is not only in the findings or recommendations made but in the implementation of those recommendations. by conducting audit follow up ensures our

department to enhance change and city agencies and city management and assess the value of our work. our office does two kinds of follow up work. regular and field follow up. our regular follow up procedures are done for all of our reports and memorandums and auditees are required to report at 6 months, 12 months and 2 years. after 2 years, the department if they have not yet resolved those issues we will include those recommendations in our annual report of recommendations not implemented after 2 years which we will begin this process at the end of this fiscal year and we'll present 245 -- that report to you. in the follow up process we may select certain audits in the

field follow up. we go back to gather evidence to go by whether each method was implemented. we tuesday approach for the candidates for the field follow up and the factors that could qualify an audit for high risk is large financial impact and weaknesses, to errors, safety issues and high risk of slides. over the next few slides i will provide information for the last quarter and overview of follow up activities and finally some high risk audits in greater details. we followed up on 20 reports and memorandum uams and more are directed at one department. we conducted 22 follow ups that conducted 22

open or contested recommendations. departments responded to 70 percent of those 22 follow up request within the 2-week deadlines. we did not receive two follow up responses at the time of this report, but the department has since responded. so the follow up status is based on the department's responses of the status report of the recommendation. active needs the department never provided a response to our follow up request and we will continue to follow up even beyond our 2-year process until we received a response. as of the writing of this report two follow ups were still active. we recently received those follow ups and open means the department provided a response but at least one recommendation remains open or contested. aft these follow ups are still

opened, elapsed if not all recommendations are given at the follow up period. yet, as i stated earlier we give those follow ups on those recommendations to the reporting mechanism. two of those follow ups have open recommendations after 2 years. all of those recommendations have a status of closed. two are now closed. so after we receive a response from the department, our process is to have an auditor review the response and based on the department's self reporting actions, then we determine if the actions that the department have taken will that actually resolve the problem underlying the recommendation. close means the department has implemented the recommendation, the department has implemented a sufficient recommendation or

the recommendation is no longer relevant due to the change within the department system. department's closed 62 of the 146 recommendations we followed up on which is 46 percent and 70 percent of the recommendations remain open and they have elapsed an will be included in the report after 2 years. the contested means it will not implement the recommendation and could be due lack of resources or disagreeing with the recommendation or believing that the process was sufficient when csa has identified problems that need to be addressed. as a result four recommendations were contested and i will discuss those more in depth as we go through the presentation. there are summaries of all the follow up in the local

business audit report. i want to highlight 10. the 2010 audit looked at three factors in the enterprise provisions of their contracts and the audit findings indicate their contractors used non-lbe contractors or subcontract or that was possibly in eligible for lbe status. the contract monitoring division investigated sanctions against the contractors. in one instance the contracting monitoring division did not find the contract or at fault but the issue did not materially impacts it's compliance with lbe go. therefore cmbd did not impose any sanctions. however they did address weaknesses by the oversight by the department. they conducted training for the department staff so with hopes this would