contributing to the health care sales tax account or come up with a medical indemnity plan but that is something that expenditures for health care services for your employees. >> so the option to pit it into a health care plan with that employee. >> yeah. a health savings account that is an option i've heard a number of employers that will be contributing to the city option i think i believe it is because we can do that with a specific dollar amount that can be a one-time payment and i've heard a complete opposite i don't think that any employers are planning on giving money to the city that's why i'm asking

questions ems they can spend most of the small businesses it's going to be difficult not to have those funds back to the employer so just wanted to, if what the other options. >> valid health care. >> uh-huh. >> commissioner tour-sarkissian. >> i have a quick question about the opting out if the employee opts out and the employer has to a different option to put it into a savings accounts. >> the opting out is for hr a triktsdz too january 1st, 2014, if an employee volunteering and knowingly and in writing to opt out of the funds then the

employer is relieved of their health care options but need to make the expenditures for 2014. >> the phase out of 2014 receive cable funds we have 60 percent in eventually and 80 percent - 60 percent and 80 percent and one hundred percent from 18 to 17. >> uh-huh. >> there is a 24 month period for the employee to use those funds correct. >> correct. >> that's correct. >> does that assume that the employee is still employed with the same employer or. >> yes. i'm sorry the 24 month period if the employee remains

employed with that employer if he or she separates that's a 90 days period. >> commissioner dooley. >> thank you for your presentation i read this about 5 times and we read this type of stuff everyday unlike the average small business owner i still find it incredibly hard to understand you know, i feel like we've really should have some kind of grace period because people are a going to be making a lot of mistakes here it's kind of beyond the cabinet of small businesses if the employee ochts out so they can be eligible for california what

happens to the money accrued prior to the year does it vanish. >> it type of reverts to the employer and great. >> 83 and then the thing about reasonably circulated to benefit the employees are we referring to the hourly amazes u amounts you've mentioned. >> there are a few criteria so the hourly amount i've mentioned a requirement that the plan be in place or you know for - >> the plan if urge you to use it for 2014 it had to be in place by 2014 that won't apply if you're creating it now and the third drae criteria it reimburse for the full ranges of

health care benefits is can't just reimburse for only orthodontists. >> i'm wondering about the employer that contributed to the accepted benefits. >> uh-huh. >> certainly i know in the restaurant industry a lot of employees are very young and typically maybe don't use their benefits then what happens to them? by that extradition date and we've not collected did day we've only seen this in the last year we don't know what their look like in prior years when

the reimbursements wblth were reimbursed for the full range of medical and dental we saw the reimbursement of 20 to 25 percent and unused funds reverted to the employers with those limited benefits in hr a's i can't speak i don't know but the funds revert to the employer after the 24 month period usually >> any other commissioner comments before we go into. less take public comment is there any public comment on this particular item? seeing none, public comment is closed and this is just a discussion item correct >> yeah. with tops such as this i agenda device it to provide

the opportunity for the commission should they deem they want to take action but if there's no direct ask for you to take action. >> thank you ellen for your presentation i actually learned something tonight on this so - although it is daunting and you are to figure out how to enforce did you have any sympathy so but i thank you for your comments tonight and your slide presentation helped me a lot because of the timelines and everything i hear about it from small businesses throughout the city so thank you, again yourself presentation. >> any other commissioner comments? okay. next item please.

>> commissioner we are on item number 5 which is a presentation on the makers and movers for the food and beverage disrespects this is a report and presentation on the report and we have diane in a who is the senior a planner from the planning department and tiffany will she be - no okay. take it away diane. >> thank you. i'm diane in a the senior planner with the planning department just a presentation while it loads up i'll talk about where this came from whether a year and a half ago i had xhfrgsz with the executive director of the hotel produce market that is in our audience

about the dwindling space for the manufacturing and distribution in san francisco i'm sure you're aware of you're familiar with the problem we talked about what can we do about it and we had many conversations about what businesses face and the challenges and hearing they're actually different between murray's and sdrshts and what we do to solve them we've accepted a sheri committee made up of local businesses and some of them are shown i worked closely with the office of economic workforce development tiffany garcia who is in our audience today and also spur who is here

today and some of the businesses that are placing an actual rule in the recommendations so this is a slide showing some of the businesses we've worked and spoken with and the idea yirnd beyond the geography businesses and how they can create the economy to scale when they're located near each other with common interests this slide shows a general dime of the overall suppliers to consumers that is nor the middleman the manufacturers and industry people some of the things you're familiar with i

think the one that spanks to me is the employment and the diversity especially the fact that a lot of those businesses hire workers that don't have access to higher education and those jobs provide a significant career lard and the wages are generally competitive to that level of education i can talk about in a minute so this slide gives us a bit of a general picture of where the industry stands so i'll point to the bottom left statistic about one in 4 production and distribution jobs in san francisco are food and beverage it is kite a significant sector in our economy that's one of the reasons we wanted to focus on it that

this shows generally where they're related to the manufacturers include backers and other makers their spaced throughout the city but complicate in the east side of the city and the same for sdrshlts that is a significant concentration around where is the produce market is associated in this area here so this shows regional trends in san francisco as i mentioned the food and beverage manufacturers and district courts are one and one fourth of all manufacturers jobs in san francisco that's 25 percent of the larger economy here so it's quite a few and

significant contribution and that's one of the reasons we wanted to focus on that here's some regional trend san francisco is the purple line this is a tlien in the businesses from 2008 to 2006 we started to see a pickup in the businesses and the number of jobs. >> again, some employment trends highlighting around 2006 when we started to see a general increase in the number of jobs and businesses in the foods and distribution this data is 2012 anecdotally we know that there's been a continual increases in jobs some additional trends in san francisco that embarcadero from

jobs this shows a general wage chart it shows that the acholic beverage wholesale and distribution you can generally make a nice saliva if you're in that business it is comparison other other sectors where people can access jobs generally speaking those are really good jobs for folks in the low to mid income in jobs in san francisco we held a business affirm with over 60 businesses here in the city and also businesses that have left the city and asked them what are their challenges and what they're facing those are what bubbled up to the top dribbling real estate and difficulty getting financing developing their workforce and

transportation and just we have a highly regulated environments that's one the challenges this summarizes some of the things we've heard in the industry and some of the reasons why it is important to pursue helping them resolve their issues again quality wages and career lard and the recent growth those are things that are driving us to understand the issues and our recommendations fell into those 4 categories that match the issues that they were facing first is affordable and suitable space we're definitely trying to promote a model those folks can start and grow their biz in the city one it working with

nonprofits and looking at community development corporations and trying to mold the model to help those businesses adapt space to accommodate in their will unique space needs i'm going to turn it over to they have unique space needs unlike businesses in the city they need floor drains and loading docks and those kinds of things that developers today do want to spend the mind and money promoting when there's other kinds of land use that are lucrative so it is important for those folks this is about technical assistance and looking at the kind of work we do in the city to target those city's and help them understand the workforce challenges they may not to

overcome and those businesses have simultaneously profit margins they learn on the job it is very important to help give them a leg up we're looking at creating a new position or possibility reallocating work from one if you remember staff member in office of economic workforce development so help strategize on how to solve those issues we're designating someone with the planning department's besides myself to help folks said the new codes so they have a dick line to understand the direct challenges a little bit more of the same the workforce development helps those folks to look at the existing tax credits

to start and grow their businesses and to just promoting new training and job safety programs access and mobility is quite a challenge for folks when i'm come back coming to folk a lot of folks are wrapping and going home our transportation is built to get even though mass to work downtown and it doesn't necessarily serve the areas of the city very well especially for folks that have jokes that start and end at peak times that don't account for the mass of the people we provide jobs for in the city so this is a representation to work closely with mta and the ta try to help folks to understand the options out there and really pair up those mta and ta with those

folks so they can understand what their issues are and try to resolve for them we're entertainment commission we have a late night entertainment group we're working with as well just a little bit artist information from the businesses that donated their time and answered surveys and providing their time to answer questions and to interview with us we're very grateful they're contribution. >> i wanted to if it's okay to introduce my colleagues who that might say a few things about the study. >> thank you pr good evening, commissioners i don't want to take up too much of our time i'm a manager at spur

i was one of the project leads with diane in a and tiffany one of the things i wanted to say the city put in a lot of time and effort to make that happen it's great to see if you haven't seen it i mention in this case you know someone in the industry we're transitioning to pushing for the recommendation and i might ask if you know anyone especially business owners that might be interested in the recommendations there's a need forces voices to continue to push the city is committed to the recommendation it helps to have voices on the inside and outside if you know anyone that is a business owner i'd like to have their contract name we're planning on having a business gathering in full board february

and like to invite them there so get them on the page to implement recommendations with that. >> great. >> thank you thank you i don't have anything further i'm happy to answer any questions you may have. >> do we have questions let's take public comment. >> just the basic report. >> public comment any one have items on number 5 seeing none, public comment is closed. >> that was a very good presentation thank you very much that was awesome and it's nice i'm happy yourself working with spur and oewd because commissioner drith it is starting to become an issue in the city i notice on our map you have fisherman's wharf scrapes and it's busy over there when

you go into especially the southeast section of the city we're losing space right now it is i'm really, really happy that planning is involved with spur and oewd and everything o everybody is coming together. >> we definitely come total with ray gunmen we've been working together and and spur does great work so i'm glad spur is involved thank you next item. >> thank you diane next item is an update and discussion on the legacy business program so for today in our packet under item 7 i want to walk through kind of some of the tasks and the timelines that are before the

commission i also want to introduce sing a song full of the faith that the dark past has taught us, eddy apologize going i don't know your last name that is part of the dr. hudson's studies that did permanent work so he's going to work through and then dr. hudson has provided you an overview and he'll walk through that and to sort of end our conversation and presentation is i have dr. isabel la guiles and dr. ill bell i'm going to say is a business harpoon and working with dr. hudson shield e she'll

lend her expertise to you commissioners think about the quality active components to need to ply to some of the legacy business program once it's officially passed so first so that's going to be the order of which we have our presentations and then what i need to start what hey what staff is going to need as we start to develop this program is likely every meeting some point of constitution this is the beginning we'll take the information and flush out the meetings for the creation of the criteria to give you an update of the legislation it is still in committee it will not be heard the

earliest sometime in john january there are a few items that supervisor campos office wants to refine so this give us an opportunity if we need to effect some of the items that are in the legislation that helps us to provide have some clarity put spot legislation if it's needed so a list of the timeline in terms of acts and things that need to be done is by january 2015 we need a sort of good list of our legacy what are businesses that are in business that are thirty years old that fall within the criteria i need to meet with the controller's office to set up the criteria to take payments and during the january february period is to start to develop the guidelines for the registry for the designation of a legacy

business including the obligations a procedures and the documentation and you know probably an appeals process should a business want to appeal a decision and another other necessary provisions then during the january february period our office is required to insure that we conduct a survey to businesses and to property owners is there a need for technical assistance what are some of the issues brown around lease and acquisitions financial incentives and what kind of marketing pr program, mini public education and continuity issues that need to be developed those needs to be defined because they will likely require

is budget ask and so the timeline that i'mic with is so we have a good idea of what this is by the end of the march i need if we're going to have this budgeted for the we're in the 2014-2015 the 2015- 2016 to run the program and have to have a good idea of our budget ask beyond the 50 discolors current registration fee currently in the legislation and again february march program is gsi also to develop the rules and regulations along the legacy program and the rebate was the transfer tax for the property owner provides for the property and extends the lease for 10

years for the legacy business or what the legacy business are purposes the property than the property tax rebate we need the rules and regulations and then the finalizing the program and per the legislation currently, the we need to have by june 30th go before the wrvrz with a fully developed program that's the timeline this could adjust some depending on the passage of the legislation but i want to be more prepared than wait he until the legislation is pass before we especially thinking about the timeline to be able to get the budget allocations. >> you need staff.

>> what and you need staff. >> and we're partnering with the ucsf and the gallery to help with this as well just a reminder under the legacy program it's thirty year to year of businesses currently in the legislation dnsz as bars and restaurant and performance venues and distribution and repair activities and businesses that contributed to thirty i mean to neighborhood history and identity of a particular neighborhood or community and businesses that committed to making physical features or traditions that are defined as businesses including the crafts and other forms it's not worded i think there's a lot of clarity that needs to be put in here so that's kind of the overview which we need to expand and

provide definition and direction so workman's comp i think i'd like to steve if you could come up and go through the work that your class did and provide a summary with that, i tablet the presentations and there was some actual good questions that came up for us to think about. >> good evening, commissioners and on behalf of the university of the san francisco school management and resource center thank you for giving me and my peers to work 0 the adaptation the implementation of supervisor wiener's legislation the ordinance lazy the foundation for expanded support for businesses that have existed in san francisco for more than thirty years we know