good morning, everyone. welcome to the san francisco budget and finance committee. my name is mark farrell and i will be chairing this meeting and we'll be joined by mr. alvarez avalos and mar. >> please submit speaker cards. items will be appearing on july 8th. before we call the first item, our budget and finance committee meeting is considering the mayor's proposed budget through a series of meetings. you can find out when each city

deposited -- department is presenting at the website. with www .bos. public comment will take place tomorrow here in the board chambers. public comment maybe submitted this year by submitting the board of supervisors board website. these budget comment will be distributed to all committee members. the committee will not take any action to amend or approve any part of the budget. madam clerk, please call item 1 and 2. city clerk: item 1: 14069: [proposed annual budget and appropriation ordinance for selected departments - fys 2014-2015 and 2015-2016] 1. 140619 sponsor: mayor proposed annual budget and appropriation ordinance appropriating all estimated

receipts and all estimated expenditures for selected departments of the city and county of san francisco as of june 2, 2014, for the fys ending june 30, 2015, and june 30, 2016. fiscal impactt city clerk: item 1: 14069: [proposed annual budget and appropriation ordinance for selected departments - fys 2014-2015 and 2015-2016] 1. 140619 sponsor: mayor proposed annual budget and appropriation ordinance appropriating all estimated receipts and all estimated expenditures for selected departments of the city and county of san francisco as of june 2, 2014, for the fys ending june 30, 2015, and june 30, 2016. city clerk: item 1: 14069: [proposed annual budget and appropriation ordinance for selected departments - fys 2014-2015 and 2015-2016] 1. 140619 sponsor: mayor proposed annual budget and appropriation ordinance appropriating all estimated receipts and all estimated expenditures for selected departments of the city and county of san francisco as of june 2, 2014, for the fys ending june 30, 2015, and june 30, 2016. fiscal impactt. 1234 item 2: item 2: [proposed annual salary ordinance - fys 2014-2015 and 2015-2016] sponsor: mayor proposed annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fys ending june 30, 2015, and june 30, 2016, continuing, creating, or establishing these positions; enumerating and including therein all positions created by charter or state law for which compensations are paid from city and county funds and appropriated in the annual appropriation ordinance; authorizing appointments or continuation of appointments thereto; specifying and fixing the compensations and work schedules thereof; and authorizing appointments to temporary positions and fixing compensations therefore. item 2: sf 21234 >> >>supervisor eric -- welcome, everyone. >> good morning supervisor farrell , avalos, wiener. it's a beautiful day. this is one of the most wonderful institutions in the city. what we are trying to do is ask

for long-term success and achieve and maintain financial stability and increase impact and improve organization effectiveness. i would like to point out the way we try to ask for long-term success is to build very healthy educational platform pipeline exhibitions and increase our community participation engagement. particularly proud to say that this year on behalf of the asian art museum i was given by the san francisco unified school district the premium dream catcher award for the effort and support of the school programs from san francisco area in the school district. so this is on behalf of the board and myself that i'm proud that we have a strong partnership with the school district. this year the illustration to my earlier point to the exhibit to saudi arabia. this is important to

learn. it's important to learn about history and the culture of that region. this is one example. moving on for our fy 14-15 public assessment, the accessibility, i would like to emphasize the free admission. 45 percent of all our visitors last fiscal year will be free and we'll continue that and children under 12 and of course students and military and their families. we are the first in the area to designate one 1 day each month to be free for all. to provide public access is what we do. if you look at the city budget for the last fiscal year, you can tell it's really flat. we

understand the challenges that the city faces and the standard of our economy improving but there are still on going challenges. we are very much in partnership with the city and mayor's office and we are very mindful of the fiscal challenges in the city faces. you can tell the increase very minuscule. even below the inflation rate. it's great for the city to in -- increase the capital funding. this city, this grant for the people. we have that for 10 years. it's time to invest just a little bit into maintenance and ensure for the future generation to upkeep this building to the quality that it deserves. that's why there is a little bit of

funding. overall you can tell it's 1.8 which is low the inflationary rate. given all considered the mayor's proposal of the department for the upcoming fiscal year. the revenue side that you can look at the total revenue that we do will have a healthy increase for the upcoming fiscal year and that is from our foundation #150id -- side. this private side. this is an effort to engage the private sector to help our city to learn the wonderful constitution. as our budget size increase, actually the city's percentage of support to the museum decreases. i think that's of course a wonderful think that we have a broader partnership to learn the city organization. lastly

i just want to show how our staff structure is and the city funded employees that we have 58 full time equivalence and the foundation for the employees 113. in short, we thank the mayor's office and the controllers office for their effort and work for the budget and we are in agreement of the proposed budget for the next fiscal year. if you have any questions, i will be more than happy to answer. >> thank you. colleagues, any questions? okay. we don't have a budget analyst report. thank you for being in front of us. >> thank you. up next we have our arts commission. i see tom here. madam clerk can you call item 3 with this budget, please. city clerk: item no. 3. item 3: [administrative code - use

of art enrichment funds and maintenance of public art] 3. 140623 sponsor: mayor ordinance amending the administrative code to define "art enrichment"; to allow aggregation of art enrichment funds for use on any city property rather than only the funding department's property; to allow the arts commission to reserve up to 10art enrichment budget for maintenance and conservation; to allow art enrichment funds to be used exclusively for maintenance and conservation under limited circumstances; and to clarify references to the arts commission's jurisdiction over works of art consistent with the charter; and making environmental findings. city clerk: item no. 3. sf 31234 >> thanks. welcome. >> good morning, supervisors. thank you for having me this morning. it's my pleasure to go over the fiscal year proposed budget for san francisco. i'm going to use the overhead projector. first, i wanted to share the arts commission this year, the full arts commission approved a

new strategic plan. it's a five 5-year strategic plan for the arts commission. the plan was based on a comprehensive community engagement and planning process that included many focus groups and stake holder interviews and our interest departmental partners within the city. as a result of that planning process we adopted a new mission station which you see here before you and that mission statement is that the arts commission, the city agency, that champions the daily life by investing in the arts community and urban environment and shaping the cultural policy. the shaping of the new cultural policy, the new focus to address affordability and as well as the capitalization of our small and mid-size arts organization. we also define some community values to guide the work of the arts commission. i have this here before you. i won't read them

all but some highlights include access to high quality arts experiences for all residents and change and prosperity, championing artist in our city and healthy democracy and government. responding to community need, collaboration and partnership as well as accountability and data driven decision making. these will be the values that will guide us in the next 5 years. there are accompanying goals to this available on our website. these are our highlights. we want to focus on the arts commission was a more united arts eco city to continue to thrive in san francisco and will continue for years. i will switch to the projector. is it possible

to make that switch. moving forward for our budget year. our proposed fiscal year 15 budget is $13.9 million which is two 2 percent two 2 percent less. our proposed budget is $12.7 million which is 8.4 percent less than the proposed fiscal year of $13.9 million. our general fund decrease is due in large part to one time funding through capital projects that we will not have moving forward which is a maintenance and renewal for our city owned cultural building. the art enrichment funding which you see here

has been moved out for three 3 years and driven by the capital timeline. the timeline for those projects varies vastly. we have moved them for you to see here. the other category is this pass through gift that we receive at the arts commission which is 40 percent of the charter allocation that is passed through to the san francisco symphony. the budget comparison here you see does not include the $2 million for general fund reserve which the board passed earlier this year to help us mitigate the small and mid-size budget arts organization in the city. fce for current year is 34.63, in fiscal year 15 is 35.36 and it will be 35.61. >> supervisor avalos?

>>supervisor john avalos: you are saying it is not here? >> because it is administered over three 3 years we did not include it because of the base comparison to our general budget. >> okay. right now you have the 13-14 general fund support for the arts commission at around 11.5 percent. whats the prior year, are we saying that was a surgeon -- surge of one 1 year because we see it decrease over the year and it doesn't reflect this $2 million reserve. what the trajectory has been looking back for the years before for the arts support? >> i would have to get back to you or ask our cfo if she has that number handy. i don't

know if we have the last figure for the total. we'll get you that number for fiscal year 13. the decrease in general fund you see here is related to the capital allocation that we have seen necessity last -- in the last year that we won't see going forward. >> moving forward to our expenditures. combining our grant making activities under a broad you umbrella community investment to make sure we support all community investment and showing here related to urban infrastructure includes the public art program through art enrichment and civic design review. you can see all the programs in comparison here. moving on we want to give an overview of capital. one

second. to give an answer to your question. our total general fund for fiscal year 13, was $11 million 685. >> moving on we want to give an overview of our capital budget request this year. here you have an image of our cultural centers throughout the city. in supporting our neighborhoods arts infrastructure, we have a capital project request in fiscal year 15 with a request of $545,000 for the mission cultural center for latino arts for a fire life safety panel and in fiscal year 16, we have two projects budgeted, one for mission cultural center for latino arts hvac system for $100,000 and the african american culture of $123,000. also, in our capital we have had a long standing

need for care of our civic art collection. in 2011 we were featured in the new york times for our challenges and art collection in the city. we are pleased to have a number of assessment complete and ready with the assessment completed in in fiscal year to begin with a work in a number of projects throughout the city. particularly we are looking for a request of fiscal year 15 of $395,000 of the care and civic art collection and in fiscal year an ask of $418,000. our budget includes a request for support of furniture fixtures and equipment for the move of the committee -- complete san francisco arts commission memorial building of the project. we are excited to move the arts project to the war veterans memorial building and have access to that space as well as have appropriate

storage for the civic arts collection which we have not had to date. we'll be moving into the storage formally occupied by san francisco museum of modern art. we'll have the appropriate storage necessary to care for the civic art collection including works by -- and we'll have the adequate space to conduct those repairs that remains on that collection. we are excited to be part ners and activating that building and through the cultural centers to have access to that space and partners to be activating the building and working through our partners for the building. we are excited about that move and you snooe our request for the fix you -- fixtures of $1 million. it's approximately 1.2 that we are estimating in cost. so i will then open up for

any questions. >> thank you. colleagues, any questions or comments at this point? supervisor breed? >>supervisor london breed: mr. decaneey, how r you? >> good. >> i just wanted to understand the changes in cultural equity and where the increase came from for cultural equity funding that's listing in your budget? >> yes. are you referring under expenditures to the total community investments? >> unto cultural equity i'm showing from 2013-2014 fiscal year to-fiscal year to 2014-2015. and another $500,000 increase in the budget. i'm trying to

understand specifically where the increase for cultural equity grants came from, those specific increases? >> yes. so looking at these numbers, i know there have been increases related to the cost of doing business increases that have been included across city contractors because cultural equity grants are administered on an annual competitive basis through a panel process. we pull that cost of doing business increase as an addition to the total grant pool. so i believe that is a portion of those funds. let me confer with our cf o to ensure if that's the complete allocation of that $76,000. >> hi. the grandz are going up because of the cola and we did receive some one time funding in our grants line for special project, one time special

projects. >> okay. i know there is a cola. there's a cola and increase forlt -- for the arts in the previous fiscal year and for this case there was a cola for my understanding. the number is low. it's 5846 in terms of the increase. i'm trying to understand why. >> the cost of doing business increased citywide in the mayor's proposed budget i believe is being administered centrally and we are going to request and receive those funds through year. the increase is our special projects that we received for the budget year that we haven't had in years past. >> there is a possibility that these numbers will change? >> yes. >> there would be an increase of 1.9 percent. 1.5 percent, excuse me. >> yes. that's why i thought

the number was a little low. okay. thank you. thanks for the clarity. >> okay. colleagues, any further questions? okay. supervisor avalos? >>supervisor john avalos: could you just explain where we are at for the process for support for the non-profits facing displace ments? >> sure. brian from development and myself and my team have a final draft of request of proposals through intermediary that would administer the total 1.5 in funds. we will be releasing that rfp next week. we will have a window open for applicants for those funds that would apply to the city to administer those funds both the technical assistance to non-profits but also the direct financial assistance in the form of subgrants for things like tenant

improvements and down payments and security deposit. and then when we have the intermediary contract in august, we'll work for a public rfp for all non-profits that are facing displacement in the city and we hope to do that bycep. >> we are on time? >> we are on schedule so far. >> great. any other comments, questions? okay. mr. rose, can we go to your report. >> yes, mr. chairman, on page 4 of our report. can i comment on item 3? >> please. >> we have described item 3 on page four, we consider approval of that ordinance to be a policy matter for the board of supervisors. our recommended budget include $275,000. of that amount on

going savings and $50,000 one time savings our recommended budget. all of the recommends reductions are on going savings and we'll report back to the committee next week on the final recommendations. >> thank you, mr. rose. any last comments otherwise we'll see you back next wednesday. >> no, thur for the consideration of our budget. >> great. thank you. up next we have our department of building inspection. madam clerk, can you call item 5 and 6. city clerk: item 5: [building code - temporary fee reduction] sponsor: mayor ordinance amending the building code to reduce all fees for staff services by 7 a 6-month period and affirming the planning department's determination under the california environmental city clerk: sf 51234 item 6: [building code - use of repair and demolition fund for telegraph hill stabilization] 6. 140627 sponsor: mayor ordinance amending the building code to authorize use of the repair and demolition fund specified in building code, section 102a.13, to address costs associated with private property owner responsibility to stabilize telegraph hill, as part of the rock slope improvement project, and affirming the planning department's determination

under the california environmental quality act. city clerk: sf 51234 sf 61234 >> >> thank you. welcome. >> good morning, supervisor. my name is tom hoit department of building inspector. we are presenting our two 2-year budget for 2014-2015 and 2015-2016. thank you for helping me out and also the mayor's budget office. we all worked together and then my staff, gail is day and night working on this budget. because of the growing economy, our budget is getting more exact. that's why we

have both help us from controllers office and the mayor's office to work out this budget. first of all you can see our mission statement. our department mainly function inspection and enforcement for different building code, mechanical, electrical and housing. the second slide you can see our budget because the economy growing so rapidly and the revenue come in. then you can see 2013, 2014. and then increase to 2014, 2015 and project out to 2015, 2016. you can see the related

budget. it's related to our project. the fee increase 16 percent for 2014 and 2015. the additional 30 percent for 2015 and 2016. the technology reserve, we try to do a little bit more there and then the funding for the emergency order and the new legislation for illegal in law and also additional housing unit for $30,000 by year. then due to this we increase our staff as

you see of 20.77 of personnel. this slide is showing you how much is coming in from the economic down turn and rapidly growing. besides the number of permits, you need to keep in mind the complexity of the project. the building is more higher and higher and also go down deeper and deeper for exploration. the pension is getting more involved. also to keep up with these changes, that's why we request to increase staff for all those legalization and also the 40,000 units. and then this slide is showing you the

performance and then we are lying to to do the number required inspection increased because of the number of permits increased. we also emphasize the code enforcement. sometimes we need to worry about eviction, how to deal with those. those are unexpected. but we are going to deal with it. then, because of all this starting july 1st, this year we have a new energy call and that's why you will see lots of people try to submit the permit this year by june 30 th to award the new energy code. also that's the budget proficiency that we have. keep in mind we learned from the last economic down turn. some of the project

will be temporary and then we will budget those positions based on project as a temporary position. then this is summary of what we are talking about. the new legislation and what is the work load. for example, i mentioned about one time project. those are summarized here. we increased the capital reserve by $5.25 million. create a technology project reserve for $7 million. and increased the funding and repair fund by $5 million. and create a work order to access office. because we find out there is a time between access office to increase the property