comment on the nomination seeing none, the motion is to poiappoi mr. fuller and mr. ac guarantee to the board of aquariums. president mccarthy. supervisor mar. commissioner clinch. commissioner suga sxhais sxhaish that motion carries unanimously and to read the oath of office >> the peanuts step forward for their oath of office please. clau (clapping.) no longer a nominee. so thank you su, very much. please repeat our own name after me. repeated

>> (repeated.) that i will support and defend the san francisco public utilities commission constitution co constitution of the united states. >> (repeated.) the constitution of the state of california california. >> (repeated.) >> against all enemies foreign and domestic. >> (repeated.) >> that i will bear full a alliance to the constitution of the united states and to the - go ahead. >> (repeated.) and the constitution of the state of california. >> (repeated.) and that i take this obligation freely wouldn't mental hesitation or purpose of eval evaluation. >> (repeated.) 5:00 and that i wiwill faithful discharge the duties about which i am boo about to intenter.

>> (repeated.) and . >> during such time as he hold the office fof the meb fmber of board of aquariums. >> (repeated.) a and i have different seat to repeat. for the city and county of san francisco >> (repeated.) >> congratulations and again, thank you very much (clapping). >> can i ask you guys to sign t the oath please congratulations and again, thank you for your services. >> thank you.

>> thank you supervisor mar and congratulations on that getting those positions filed it's inform easy task a. >> thank you. >> thank you and supervisor wiener is present with us as well. item 5 is the director's report dr. huh-ey. good morning, commissioners it's my honor to formerly introduce my chief of financial and administration officer and d deputy director clarence maddisn and she will present you regarding the finance report today. i believe to further introduce her, she was with dbi before in various departments in my an

announcement i u, you know, put forward before >> you pt want to koucome up. >> good morning, commissioners torrance maddiison two to thre f for the directlhe department of inspection i'm glad to be back i look forward to working with everyone there's a lot of chooift things happening in the department with that, why don't i jump into the report before i you have the june #114 financitl report i'll take a few minutes to go over some highlights on s the roeport. . so i will just go over the sum for june 2014 before you have a a assembly of june 2014 which is

the final most of the fiscal year the year to date budget and a projected budget the reason for the project ed it's take longer to close out to the first year to date is in the system as of the printing of the report but we're still collecting revenues and clook closings out that item pass probation office po as uyou see for revenue s wee projected to get 2 to 3 million dollars more$3 million more that's preliminary do you to collecting nor fees of our charges for services that's a9 9 perris increasing over 2013 and a large portion was this revenue it contributed to one particular

revenue source the clerk revenue this was budgeted to 16 million dollars and it was $16 million and it was actually about 2 #9 million dollars to s$29 million to it is attributed to one revenue course sou revenue the building permit is 4 million dollars ov$4 million over as well as the central permit almost 2 million dollars over t$2 million over the budgeted your on the expenditure side we're projecting a 5 million dolla$5 in expenditures and those expenditures are preliminarily in similarly savings i'm sure you're aware of the department has had vacant positions and we're working diligently to fill those for the 2013-2014 we'll have 5 million dollars $5 milli savings i'll go over a sum of what we are doing to address the revenue surplus and the expenditure what we're going to

be doing going forward but overall given the #23 million dollars in$23 million in revenue surplus and the 5 million dollars $5 million in expenditure surplus we're projecting a 28 million dollars surpl$28 million surplus for the 2013-2014 now, one note and koconcave i do not lot of the revenues we've collected in the 23 million dollars adoll$23 million are revenues we're collecting up front but not earned those we're working on a rappoeport we'll h s to put those in a separate r report about 7 million dollars so$7 million so roughly about 20 million dollars will$20 million will be left oever 0 for 2013-2014 that's what's happening in the last fiscal year jill one we start a new fiscal year so we're going to address this on the revenue sidoes the staff has be diligent in working on the revenues and budget them

quarterly to for 2015- 204-201ve collected 23 million dollars we a$23 million we are being nor pro actually so we doo vdon't have to wait until the ed of the year to see that. on the expenditure side we're doing for instance, we talked about salary salvations i talked about earlier we're working aggressively to fill the positions since i've been there, there are four or five different improvemen improvements and recruiting the it and inspection and engine engineering classes and bey the end of the august we probably will fill 14 position in this span of a kouch couple of monthe aggressively looking at that and as well as spending other items capital consortiums we'll be

aggressively working to make sure we use our budget at wisely as possible. at this point, i want to thank e everyone especially on the hiring fund as i'm sure you're aware of the city is hiring there's a process it takes time and effort particularly our h.r. staff has been good another hiring managers we've worked with h.r. to get this ball rolling i pt want to thank the operation the hiring margins or managers they have to be experts and make questions for interviews and sit into interviews all the while jug juggling the swork they do so we're on the path to fill the positions and really use youp o budget. if you have any questions, i'll be happy to answer them >> well, i guess the big

challenge here is, you know, most f of us sit in the xhigcomn where we had no money and it was an trinteresting educate is soyu /*you have a nuunique position we are profit able department i nknow feel strongly where a lot of this money could be looked at with the future growth fof the department. but it seems like we really do don't have a strategic plan on w where a lot of this money is g g going to be spent we'll wait and see and do you think at smpome point for example, you can director we will have a very kind of certain where a lot of this money goes for captains in our office there's go bacing to

discussion do you envision a lot of this money going to help us on p that >> that's is big project besides our department you've eaten in the nuewspapers there w will be a board hearing to discuss that that's whehat we e were, you know, to reserve some of the money to get it start aed of the money to get it start a d and get our office to move there that's a d ssh ashg they'll raa all the departments. >> supervisor mar. commissioner mar. yeah. i think the project p president mccarthy was referring to in particularly was the potential of dbi moving to a larger office and i think like a lot of potential construction projects the estimate also comes

in below the actual costs. whether itself city is doing the construction or a private sector so with some of the surplus is it possible to set aside i think one ft skerof the concerns is se some of the monies for the co t construction, however, it ends up, you know, we know there's a lot of balls or options in the air about what the new offices l will en tatail. i have another question you talked the third work i think all f uof us are concerned abo t the seismic safety question because so many property owners are not come in yet there's going to be a lot of work for the staff all of a sudden and whether tiit's our inspections geological issuing noah's or the

property owners come in at the latin last minute so i wanted to make sure that we have a doubt little bit of an center staff capacity to deal with that >> commissioner mar we agree with you for example, the space wece question have two long-term and wone short-term we're working with the real estate to find a space to host some of our division to move and expand it also regarding the staff we're i in the budget to have project base it have some staff, you know, to come in to help besides the inspector and the support staff we foresee those coming e and besides we are more and more ordinance we need to take care

of later for the commercial and oother stuff coming in. but we forecast those issues we're working on that. for the new site hopefully come ahead but it l will be construcd by pine wood and back to the city and then for, you know, tenant improvements is ours a o also. >> this is a smaller question i just noticed that 3 thousand dollars transferr$3,000 transferred from supervisor kim discretionary fund that is nice but i was wondering of the 3 thousand dollars is it$3,000 is issues she's interested in a. >> yes. all the supervisors i think get about a hundred thousands for the discretionary funds we tactually received 3 thousand dollars to $3,000 to work with wone f ouo

nonprofits for something it was earmarked for something that's why it's not under the total operating revenues it's actually under a separate revenue source. >> do you know first hand what project. >> i don't know but i'll follow-up with you a. >> and just wone ootther thingm talk talked about the capital before th projects when i spent time talking about the actual hiring we're aware of the projecgramstt require other staff we're going to put you a lot of effort to make sure we have the staff for the new things coming down the pipeline a. >> thank you. you're welcome and welcome board >> john with the scity attorn s attorney's office i nthink it rment towe

went to the tenderloin housing p project for the educational purchas purposes in working with tenant. >> item for the update on the legislation . >> i'm bill month is the legislation we've talked about the - the director made reference to the supervisor tang reference the vacant commercial store fronts it's an expansion of the existing vacant building ordinance that was originally sponsored several categoriyoore supervisor chiu in which it is residential focused. that list i've mention before and economic recession was about 5 hundred to 6 hundred buildings today, it's about 2 hundred and 50 buildings.

on a particularly track the mayor's office mayor's office of economic workforce development has people going out to check open commercial store front vacancies at about 25 commercial districts all over san francisco they've generated a separate data b backing base that kucurrently h about one hundred and 80 identified vacant are commercial fron fronts. the supervisors intentitranspor with this legislation to try and make sure those are not source of blight or eye sores in commercial districts and esse essentially dbi b lwill be charged with chand our vacant building list to also include commercial store fronts that means we'll be invited of a hundred and 80 that are on the

existing mayors list and sgrarl that with our own list the director pointed out the su supervisor agreed during the fi first year they'll do a lot of community outreach to try and educate those commercial corridors of the dpak impact of this new legislation because ultimately we will issue a notice of violation and the owner like in the residential ordinance b will v thave to register within thirty days.30 . if that didn't happen the inspector will post a notice of violation a first notice of violation. the difference in the legisla legislation the supervisors is giving people 2 hundred and 70 days or 70 days or 9 months before you we go back to issue the second notice assuming

they've not paid the registrat registration fee of seven hundred and 65 dollars each$765 year awwhile the property remai vacant the thrust is to trie y encourage people to laease to small businesses and improve the property so that, you know, it d didn't remain empty or subject of graffiti or oother blight lie conditions. anyway this legislation passed unanimously from the land use committee on a that zero vote and heard on the 22nd of july and finally, there's passed on the 29 that lwill be the boards last session before the august recess it f it will effectively take effect in september when we all return to our normal business we're going to be p preparing there our code

enforcement division in the nxts month during the month of august so we'll be ready to implement that ordinance even with the understanding that the firef firefighterhe first year is devoted to community outreach and also on the #119 t annual leon property hearing at the boards this year's list those r are the diligenr taredao haven't met the requirements and owe the fees. this year's sollist is #3 hund e and 10 that calories can or embarrasses to a list last year of one hundred and 20 it will radically decline because people keep coming in otherwise they'll

have a financial linancial eman proclamation incumbrance on thar their property we are expecting that list to go down but that will happen on the 2 9 when the f final list is lowestaded. the oother thing i want to me s mention has to do with our ma mandatory schematic retrofit with this advertising campaign we have in the neighborhood publications we're seeing some increase in the number of screening being submitted we have more 3 thousand and preparing the code enforcement side of this including signage that lwill be in aull 3 languag to post on the buildings come in the mildddle of september or e f of september when we have a true

picture of what we do have as referenced earlier we're all expecting that late august early september a delusion of last minute oh, i guess that means me and will need the 14 additional hir hires had clarence was referring to the place will become very busy and the fninal thing i wan to mention the legalization of the in-law units the first 6 weeks we have wilhad r abouabou inquires and new about 45 so the immediate public maybe everyone has gone on holiday we're not get many inquires but to at a time we've not issued one pilot

to legalize one unit but, of course, that may change when we g get into this year >> any questions. >> i actually do yeah. so is they're going tre going nd is they're re going to be a evaluation on this after an "x" amount of time open which illegal unit >> what's required is an actual report from goib and planning that will essentially let the board know what the results of t the first 6 months. >> 6 months. >> 6 months yeah. , this le legislation took fiscal in the mild middle of may so we're looking at really well into the end fof the year before we get to the 6 m months. >> let's say around january.

>> rig >> right. >> is tlhere a feeling there's only one permit code is it an educational things are people redundant reluctant is there anything we can do why this is not happeni g happening. >> the public wants to weigh what's happening they need to weigh and because you'll increase the property tax and under rent control. and also i remember right confronting there's a pan app c application and i go to see the that an >> right there is 10 applications by only one permit issued. and the way the legislation is s set up people haare supposed to

engage if n the program to make sure this is a legal unit and then they'll able to come to our technical staff and talk about what does this mean in terms of making those changes and even getting a ball park idea of costs. so it kcould be that we're stil very much in the information gathering stage it has not been out there 2 months at this point so i don't know if titit's beca people are not that focused on t it right now or again as we get into the fall towards the end of the year we'll see an uptick in actually movement >> i have a question on that have we been receiving any calls on the illegal units. >> we've keeping a log san as d

said and i meant actual complaints. >> no, i'm not aware of us receiving any complaints t traditionally over the course of the typical year we get about a hundred i don't know we've had a any recently. >> i suppose if there rwere recently complaints i pt to wan know how we handle them. >> the way the ordinance tries to orient this we pamake it cle to people who are interested in looking at this if uyou are flur a notice of violation that l wi be suspend while our pursuing legalization you have woone yea to actually legalize in i don't legalize you're going to have to pay the fees and actually in sm kazsome cases eliminate the uni

but if i do legalize we'll fo forgive the fees. >> probably would like to know. >> sure ie'll check. >> prayer by the chaplain. >> on p that. >> superhat. >> commissioner mar. this is another legislation on supervisor tang's on the vacant store front a lot of legislation gives the property owner a larger length of time than the noahn nova's to roespond to the issuei think the vacant commercial space stance in the months we issue a 90 days notice the property owner knows they have 89 months it subvert our novas we're trying to clean up it's pabl the problem in the department we're cleaning nova's

there's a lot of pieces of legislation in the kcase of th i illegal nchlonprofi in-laws it' our posting an nova ovn the property means almost nothing we give them 60 days to resolve the prosperiblem they know it's 9 m or l11 months yes, i think so i we pull proprietiedicaments itte that amount of time by other property owners know they have0o no intention of doing anything so i want to know how does that effect our nova process that's thirty 050 day to 60 days we dis

that with the supervisor there's a lot of push coming from the small business community to give people more time for marked forces to swork our ascertaicon this mrparticular piece of legislation it's given more by market force than incentives as much as r such as you're going to pay a larger bill for whae whatever reason and some of the reasons have to do with the oerwners being difficult to loce even the mairzyor's office of economic workforce development has told everybody involved in this discussion it's like a deputy hunt too often find where the owner maybe. much less actually get a respond from those code enforcement postings so you make a good p

point it will once again cloud our effort to try and cleanlnd a lot of nova's that need to be posted a >> thank you. >> thank you. i guess at the 6 months we'll take a look at it and see how successful it is working. i guess is there an end if those programs are not working what do we do i mean, if they're not recessed nationally the types of results, you know, as a department we're spending money on this; right? >> maybe second step we're going to warning those of the nova on those illegal in law and encourage them to come in to remind them maybe a next step we're going to do. >> so anoer