total. our petitions, total petitions have gone up 26% in the last two years. now, some categories have gone down. for example, tenant petitions two years ago went down 4%. but guess what? this year it went up 24% so we have a 20% increase in tenant petitions orbv the last two years. our other major category of work is landlord petitions, of course ~ and the good news is those went down 1% this year, however, they went up 37% last year. so, we have a net increase of 36% in landlord petitions as well. the next category is ellis and we're not going to talk about ellis. we all know way too much about ellis these days. in addition, in addition, this chart shows you -- this list are all of the legislative changes that have been effectuated just in the last year. basically you guys are killing

us. not without very good cause, mind you. now, some of these initiatives are not going to require a tremendous amount of additional work for rent board staff. the more or come on condo conversions will require no work on our part. every other piece of legislation requires some additional effort on the part of rent board staff ~. it can be a database search for [speaker not understood] eviction notices. it can be a report to planning. a lot of them are hearings, will result in additional hearings. so, basically what we think is that due to the current state of the rental market and the shortage of housing for the foreseeable future we will anticipate [speaker not understood] recovering local economy. so, bring it on basically, but we are asking for additional staff to be able to deal with the effects from the impacts of all of this additional legislation in conjunction with our increased work load.

so, the net result of this in terms of the impact on our budget is a 6.3% increase this year. this is almost $400,000. it's for the two-year positions and it's to cover our m-o-u mandated salary increases and fringe. we anticipate that the following year there will be approximately a $70,000 increase from additional 1%. so, how does this get paid for? as you are all aware, we take no general fund support. we are totally funded through the rental unit fee that landlords and tenants pay. we have had a flat rental unit fee. it's been stable at $29 for the last six years which is really kind of contrary to my usual mo in terms of spending money. we are -- now have -- in the past to keepedth fee stable, we took our [speaker not understood] forward. we took our surplus and we applied that to reduce the budget ~ that needed to be

funded through the fee. and that's how the fee has stayed static for the last six years. however, we have now gone through all of our surplus. there is no more surplus to carry forward and, so, we will be looking at an increase in the rental unit fee for the first time in six years. that would be determined by the controller at the end of july when we see just how much money we have spent in this fiscal year and it is possible that there will be some carry forward to ameliorate the impacts of these additional costs. our goal and initiatives going forward into the new year are to implement all of this new legislation, including provided updating -- providing updated informational materials to the public. we have to bring other things current, of course. we want to increase the number of the documents that we translate and begin the process of translating them into politically correct, i hear is filipino as opposed to tagalog.

we also want to recruit, hire and maintain these administrative law positions should you approve our request. and we have no budget analyst report, but i am of course happy to answer any of your questions. >> thank you, [speaker not understood]. i did say that list of legislative changes for this past year, i didn't really realize how many different new laws there are that impact your staff. and also, thank you for presenting. any questions? our chair is back, chair farrell. >> colleagues, any further questions? okay, thank you very much for being here. let's see. up next we have -- okay, department of human resources. >> good afternoon, budget committee members, mr. chair, supervisors. thank you for the opportunity to speak to you today.

i'm micky callahan, human resources he director. as we hand out our powerpoint, i assure you it's very brief. i have the whole executive staff here to answer any questions you may have. i want to, before we start, say that we are fortunate enough to have been able to reach agreement to a revised cut plan with the budget analyst's office. i want to thank mr. rose, [speaker not understood] for their assistance in helping preserve what needs to be preserved to find any efficiencies we can find. [speaker not understood] i'll just do a very brief overview, kind of highlight the key areas in which we've seen some increases in our budget. first as you know, our mission is to recruit and engage the workforce for san francisco to meet the expectations and service needs of san franciscans. we have a number of requirements, boat charter and

otherwise, that we fulfill in doing that. in this year you will see that we have a tree ducks in our labor project costs. that is because we completed our cyclical labor negotiations and that will be a relief to all of us. however, we now have on cycle a number of public safety promotional examinations and as you all know, those tend to be litigious and controversial. we have a large number of consultants and we take efforts to make sure it is all done correctly. you will also note there is an increase in our eeo budget and that really is from a transfer function. we are taking over the eeo investigations from both the mta and human services agency which presents an economy of scale for the city. we have an active and professional program. i think those departments decided it would be in the interest of efficiency for us to do that instead. we will have also increased workforce development budget, primarily we have a cultural

competency program focused on [speaker not understood] issues. we also have a recruiter which will be devoting to -- in large part to police and fire recruitment at the entry level and also to improve deficiencies in it hiring in particular. sort of the single major area our budget has increased is workers' compensation. as you know we pay on the order of $47 million in claims a year to both current and retired employees. we are self-insured, so, that reflects directly in our budget. about -- the increase of about 2 million over the next year is due to a number of factor that are happening external to the city. one is the increase in medical costs. another is the effects of [speaker not understood] 863 which has added costs in terms of permanent disability, independent medical review and administrative fees which have gone up significantly. so, the cost in workers' comp are really being driven up [speaker not understood].

i want to note because it is something we're very proud about, is our workers' comp performance continues to exceed that of most public and even some private sector agencies. so, we're pleased about that. we have a program which is training personnel and it is for other departments. so, we have person in our budget to assist in running that program, but we want to improve the professional capacity across the city for personal [speaker not understood] as well. those are rather the highlights. be very happy to answer any questions or address any concerns. >> thank you, ms. callahan. colleagues, any questions? supervisor mar. >> thank you, am i callahan. i was going to ask about the increased outreach ~. was there a petition that was going to be included to help [speaker not understood] and your other staff increase the level of outreach to different [speaker not understood]

different city employees? >> absolutely. that is the recruiter we've added, workforce development [speaker not understood]. we have several initiatives. obviously it's tied in with our police and fire continues testing. our it hiring and also persons with disabilities. we are also looking at a veterans program. we have a great idea if we can fit it all in to do some high school outreach model and something they're doing in houston, career day for the city for various high schools. so, it's a tall order, but we have to hire somebody with a lot of energy. we'll obviously be providing support to that individual until they get on their own. >> supervisor avalos. >> thank you for your presentation, ms. callahan. just a question on the police and fire testing. there has been a lot of discussion over the decades about how to make sure we're hiring more local residents in our police and fire departments. and how does our testing program result in greater hires

that come from within san francisco or can that still be a goal that we have? >> thank you, supervisor. it presents a unique challenge because the constitution of california prevents us from having local hire for public employees. so, instead we try to make sure we do enough outreach locally. we have a new testing program which allows us to continuously recruit police and fire for entry level and a new advertising facility which if you approve the improvements to has opened. we are now able to test 200 people at a time on cesar chavez street at our facility there. the other thing that we've done -- >> excuse me just a second. i was told by many people in my fire department that the testing happens online and people are -- i'm coming to san francisco for police and fire to get tested. so, i was thinking you would say there would be other thing we can put in place.

[speaker not understood] it prevents us from hiring locally that we can put in place some types of incentives or types of measure assessing people that conditions they're living in san francisco have access to jobs with police and fire. that was really my question. >> let me try to address that. i will note first we actually can't condition or even give preference based on the advice of the city attorney. however, the examinations are administered via a computer. they can do them at our testing center. and we can have, you know, special recruitments and host them at our testing center which is in fact what we're doing. we just started the fire testing, we had one at our center last week. so, we can reach out to communities and we can actually look at our -- to the extent if we are available labor market, if we're behind, for example, we're not satisfied with the number of women showing up for our police exams. we're going to do a women in

public safety day so we can [speaker not understood] schedule for them and we can test them. so, while it is possible for people to test, it's not -- you sign up on line, but you actually have to go to a place to take the test. we are planning to have the most tests and we're having them at our facility. so, that is the key part of that. the other element which i think gets to some of what you're saying is on our new announcement for the fire exam, we have added -- the criteria which may increase the chances of selection would include the ability to speak languages common in san francisco and also demonstrated leadership and involvement in community programs which i think is a job related criteria which is supportable and promote a local focus. we can recruit locally and heavily and that's what we are doing and plan on doing. [speaker not understood]. >> we do have testing now for

police and fire that happens outside of san francisco, you mention? >> people -- there is testing -- san jose people can take it from almost anywhere. people in san francisco or the bay area who want to take it can go i think san mateo orwoll nut creek if they don't want to come to one of our hosted session in san francisco. ~ or walnut creek we are not having [speaker not understood] in terms of people coming from out of state because people still have to take, for example, for fire, the california physical agility test, firefighter agility physical test. they have to pass a background. there are local interviews, hiring interviews. so, just be on the list, certainly don't give anybody any preference. in fact, entry level police and fire [speaker not understood] the chief can apply criteria such as i mentioned, for example, leadership, those sorts of criteria which are job

related to enhance their selection. typically [speaker not understood] taken the fire service classes at the community college, those sorts of things. >> so, in terms of our test that the city administrators or that is administered in the city as part of the testing program for police and firefighters ~ separate from the california requirements and california testing, are there -- could you say [speaker not understood] people take the test, civil service test outside of california? >> oh, yes, we've only been doing fire for less than a month. it's less than 90% in california. again, that's before we get sorted is out for [speaker not understood] california emt certificate and all the other things you need locally. so, i think while people are worried that there will be somehow an influx, we don't really see that happening. for police we've been doing it longer. it was last fall that we started.

we're at about 86% from the greater bay area. so, we really don't see that happening. >> we previously did that in-house, but now that's contracted out, the service for the exams or -- >> what we did is we use -- the examination that we use is from the national testing network and we readminister it, yes. so, that's -- we have a contract to administer the exam, but they apply with us, they take the exam, and then we put them through the other steps of the application process. you know, some of which happens at dhr, some of which happens at the department level in terms of do they have their emt certificate. do he they need a background check, all of those thing. >> and then for people who take the exams, you know, it's a fee to take the exam, 4 to $5? >> it's $40. we've had for police [speaker not understood] in place longer, we've had [speaker not understood] and we've granted them all. dhr pays for it.

>> how does the person [speaker not understood] support our city? >> it's part of the agreement we have [speaker not understood] and the administration test and the scoring. so, there's no re-data kickback. >> i wasn't thinking about kickback. >> i there is no portion that comes back to us. >> great, thank you. ~ >> okay. and as i said, we're in agreement. so, if there's any other -- >> thank you, ms. callahan. i'll just say supervisor avalos and i share similar concerns [speaker not understood] work with the city attorney's office to see if there is anyway we can explore locally legislatively to make sure our folks have preference. [speaker not understood] we're working on it. so, happy to work together. mr. rose, can we go to your report, please? >> yes, mr. chairman, members of the committee. on page 84 of our report, i recommended reductions to the

budget total 350,000 14-15. these are revises i handed out this morning. [speaker not understood]. these reductions would still allow increase 3,5 59 [speaker not understood] ~. of that amount all ongoing saving, these reductions would still allow an increase of 2,294,950 or 2.8% in the department's fiscal year 15-16 budget. and as the department has stated, they concur with these revised recommendations which are shown on pages 85 and 86 of our report. >> okay, thank you very much, mr. rose. colleagues, any questions for mr. rose? or ms. callahan? okay. seeing none, much appreciated. thanks for being back or for being back. i should say for being here. you don't need to come back.

we have next, the department of environment?

>> good morning, supervisors. good morning, chair farrell and other members of the committee. my name is debby [speaker not understood]. and as of today it is the beginning of my third week on the job as the director of the environment. i've had a chance to meet some of you in fern, not all of you, so, i look forward to doing so. i want to thank -- before i start -- david osman the act the director whose prepared this budget along with the help of the mayor's office as well as the budget analyst's office. and with his great leadership, i think we have before you a very strong and sound fiscal analysis and budget to carry us forward to next year. so, i've had a chance to review the budget and i find it a very strong statement about the ability of the department to deliver meaningful and efficient programs. these are just a few examples of the kind of program areas

the department covers. what i'd like to do now is quickly walk through the budget details with you. i think when you look at this table what jumps out at you is it's a pretty flat budget transition for us. this current budget is about $17.2 million -- i'm sorry, it's $17.63 million and we're proposing 17.24 million, which is about a decrease of .7%. in other words, it's fairly flat. so, there's not a lot of change. if you look at the details of what has changed, it's pretty much any decreases have to do with grants ending and increases have to do with administrative costs. so, on the whole this is a very similar budget to what we have in this current fiscal year. when you look at our department position changes, it looks like we have added 3.2 positions.

those are actually -- represent temporary positions right now that are in our job training program and environment now. when we created the environment now program, we did it as a pilot, a test phase. it has turned out to be one of the most effective programs we have and, so, we want to ma make -- take those temporary positions and make them permanent. department of human resources has asked us to do so to true up the budget so what you see is simply moving temporary positions to permanent and acknowledging the success of that program. so, in conclusion of this very brief presentation, the budget analyst has made his recommendations which we agree with and i'm happy to answer any questions, as are my staff. thank you. >> supervisor mar. >> yeah, thank you, ms. [speaker not understood]. i wanted to just ask about the reduction of the clean air programming from $158,000 in

the current year reduced pretty significantly in 14-15 and 15-16 as well. i know through the leadership of supervisor avalos and [speaker not understood], the bay area quality management district, for example, increasing their staff with a more aggressive clean air climate change plan and i'm just wondering why we're reducing our clean air staffing or programming. >> that's a great question and i'm going to let dave -- there are changes in grants, but i'm going to let david osmond give you a little bit more detail on that. >> supervisor, there are actually two changes. one is that we are transferring to a transfer function. one position over to the city administrator's office to administer the healthy air and clean transportation ordinance which actually accounts for some of the reduction. the other major reduction in our budget is a result of an earmark ending, appropriation that we received from the federal government for electric

vehicle infrastructure, $1 million appropriation. that is actually ending this year. so, if you look -- if you take those things aside, the other parts of our budget are relatively stable. >> okay, thank you, mr. osmond. >> thank you, colleagues. any questions, further questions, colleagues? welcome on board. >> thank you. >> mr. rose, can we go to your report, please? >> mr. chairman and members of the committee, on page 91 of our report, recommended reductionses to the proposed budget total 75,123 in 14-15. of that amount ongoing, recommended reductionses to the proposed budget total 55,123 in 15-16. and of that amount all are ongoing savings these reductions would still allow an increase of 45,77 4 or 3/10 of a percent in the department's 15-16 budget. does the department concur? i didn't hear that. >> yes, i'm sorry. my last slide said the department concurred. >> the department does concur

and that is our report to you, supervisor. >> okay, thank you, mr. rose. colleagues, any further questions for mr. rose or to staff? okay, thank you very much. >> thank you. >> no need to come back next week, so, you're set. up next we will go to the mayor's office. so, we have kate howard here to present.

>> good afternoon, supervisors, kate howard, the mayor's budget director. [speaker not understood]. today with me i have a number of staff from the mayor's office of housing and community development. i will speak briefly about the mayor's office overview of the budget and then olson lee will walk you through the mayor's office of housing and community development. also here are theresa [speaker not understood], kate heartly, brian [speaker not understood] and benjamin [speaker not understood]. so, at a high level, the mayor's office budget has continued to grow over the last

several years and really you can see here in this chart that over 82% of the resource he he spent in the mayor's office budget are focused on affordable housing, with another 7% spent on community investment and community development. so, nearly 90% on the budget of mohcd. this slide shows you what is going on with the [speaker not understood] spending on affordable housing [speaker not understood], being the largest portion of our budget and about 7% on salaries and 3% on fringe benefits. overall the mayor's office budget increased by 37 -- $34.7 million to 86.8 million in fiscal 14-15. 81% of that total budget focusing on housing and community development grants and loans.

and as i think i've shared with you and as the mayor talked about in his budget speech, much of that growth is related to our initiative to leverage the housing trust fund by bonding growth in that trust fund to generate new resources for affordable housing production. the mayor and his administration excluding [speaker not understood] by about $8 25,000 and that's about 30% from salary and fringe benefit changes and about 70% from the new office of strategic partnerships that the mayor mentioned again in his speech ~. this office should really be focused on creating stronger public-private partnerships for the city, and of the resources that will be dedicated to the office in the first year about $550,000, more than $400,000 of those resources are coming from

philanthropic sources. >> supervisor mar. >> mr. chair, can i just ask ms. howard, so the office of strategic partnerships is that technology or innovation office that the mayor mentioned in his budget announcement, and that's roughly 400,000 from the private sector contributions and about 150,000 from general fund, is that right? >> that's correct. >> thank you. >> so, this slide just shows you what's changing in the mayor's office budget. you can see the largest change happening in the office of strategic partnership as well as in the affordable housing line growing by more than $30 million in the first year.

i'm going to hand it off to olson now to talk a little bit about the mayor's office of housing and community development and then i'm happy to answer any other questions you may have. >> great, thanks, ms. howard. mr. olson, come on up. madam clerk, can you call items 5 and 10 as he comes up? >> mr. chair, can i just ask ms. howard, i'm just looking at the office of strategic partnerships proposed for -- let me look at this -- fiscal year 14-15, 581 or -- >> that's right. $581,000 in the first year. >> for year two it goes down -- >> to 300,000. >> 300,000. and how much of that is already committed from the private sector, do you know? >> so, that's a very good question. thank you for asking. so, the $2 81,000 is committed from ~ the irvine foundation and that's focused on an

initiative called the pay for success initiative. it's a one-time grant which is why it appears in the first year and is not budgeted in the second year. we also have an additional $150,000 committed by partnership of foundations led by the haase foundation for $150,000 to be matched by $150,000 of general fund. >> great, thank you. >> item number 5 is an ordinance amending the administrative code to eliminate the mayor's office of housing and community development escrow account administration fee. item number 10, resolution approving a waiver of the payment in lieu of taxes for fiscal years 2014-2015 and 2015-2016 from the housing authority of the city and county of san francisco. ~ from the housing authority. >> thank you. >> hi, mr. lee. >> good morning, supervisors. olson lee, mayor's office of housing community development. ~ director of [speaker not understood].