fully to be honest we've envelope spent what we normally budget it is so normal to budget the $72 million but passed the city hirings process and a variety of other things we will will we spend $72 million at the end of fiscal year 2012 we spoent spent a lot lower it takes time to get the hirings and doing big prurpz like purchasing vehicles and e.r. mosque things for staff all those things take a while what's happening in the past we've gun or been aggressive

about 18 340i8dz was lost because of the revenues but we had so much expenditure fees we're trying to balance those things so there a budget we can spend need. >> commissioner vice president mar if i can tell you to make our questions to the chair commissioner walker. >> yeah. thank you, again, for the report i concur with commissioner walker to 345ur we have the staff but wanted to go back to the previous agenda item

we might need more of a bigger grant to have the ability to fund a larger rfp if we are hollering 5 hundred units of public housing will we be able to there that pot if we have to put out a larger rfp. >> if you are not to make an amendment to the budget or increase the commission can vote on that so i what i want to be clear we have more than a funding to fund a variety of different things and that's why we are we have to dot fee study we video a huge balance we want to make sure how long will this fund balance last when things slow down what did that mean more the department

part of the reason my departments expenditures have been lower because i think the department is still remembered 234r508 and 2009 when they had to make drastically reductions to the department has been trying to live within it's means and rate that's constitutional yeah, so i believe for the most part anything that is needed i'm going to ask the position authority of if we did funding it is going to be extremely difficult for the vacancy that's the first thing the budget analyst will look at why are you increasing that happened last year the new positions that the budget they were decreased why are r you decreasing the ftes count so that's something to

look at it and, of course, is isn't we can't come up with the justification there's new initiative but i'm hoping we'll be covering what we haven't and commissioner walker everyone made a good point beer first responders and want to have money available to at some point in time we need to know your revenues do we want to get our budget up to high we need $20 million to balance it i don't know if we want to do that we have to balance that. >> please continue. >> commissioner walker and so the point of the grants you show a decrease in that this year why. >> the decrease is because there are a one time add back in the budget so that wasn't from

our department actually decreasing this was i think maybe a $15,000 in 2014. >> it's 40 thousand. >> so that was that one time add back i don't know the details by a one time add back yeah. >> it was a one 7, 8, 9 through the chair inspector one time add back by supervisor kim and those monies went to a couple of things one to a unheard 15 thousands for the pilot program we partnered with the projective services and the rest went to 1r5i7b89 for that the clafbdz to deal with the services for clean up for the station that was a one-time

thing. >> so it's not needed ongoingly are we do know the supervisors can do that; right? >> please continue. >> where are we let's go back to the budget summary i think this addresses some of the questions we have all those things that need to handicap italy's for enough money the answer is yes in the 2015- 2016 or 2014-2015 budget we set up a variety of budgets $7 million and the beauty of the project funding it's not angle annual appropriation p so we have $7 million we can do adds in my

estimate to work on the recovery and software upgrades that's why we're staking we'll stay 33 at the base we have project funding we haven't used it the whole purpose was to late years one good thing about the budget it has money for training we're not going to cut the training the director talked about the xhefrz you talked about funding 09 departments in the controller's office and also in the hallways and you're absolutely correct we fund other functions in other departments and services that are provided were in fact work orders were $2 million by far the largest non-salary

expenditure when i tangible the expenditures one the places we normally have expenditures although we budget a lot bans what the department telling me tells us we have one million dollar of the funding the department is not spending so that's one expenditure we fund a variety of work orders in the controller's office to doing varieties existence eir things the city attorney is our largest funding 8 point plus million dollars and the budget was increased in 2012 so we have materials and to pick up the new code cycle and the new code circle we'll need for boxes we have that increase in the budget thank you pretty much stated as is

and so basically conclusion the next steps the department had maintain funding at 2015- 2016 and maintain the funding allows the department to plan for more study and the department has adequate fund balance the estimation is previously he approved funding to fund the project clkd the it and building, etc. whops the it 17 fee study is completed we'll rise the estimates and see how much revenue to expect on the next two or three years and how much we'll have to eye and have a budget skeletal but i'm feel free to ask any more questions if you have them. >> commissioner walker

thank you, again. >> can you explain whether the retirement amount is one million dollar less. >> different contract terms or - >> i can explain in general broad we don't budget that that is something that happens from the controller's office overall it looks like for that the most mart the general is going down i don't have details on that but it is going do you thing this is something we don't - we include salary information but not access to those religious are calculated enhanced the positions. >> any other questions public school i don't believe so this is something we're getting used to the budget i know the difficulties you have to submit a budget that has to see pass

the test draft share informative for the lack of dialog to impressing express it's you frustrating you have to fight for certain dollars i get that and we're talking as a commission we're confident you're going to know get done what you propose no to the hash but it is to if we could get to the controller's office mindset you know we're talking about major changes that are happening whether it's going to be the new you know policies that are implemented and that are coming from the board of supervisors; right? >> and that there's going to effect our staffing level and then to kind of rally it takes a long time to bring those people broad and even though you have

20 or thirty divisions on not necessarily all those positions p are resist i'm going to appeal to your street smartsd on behalf of the commission we don't want this kind of conversation when we don't have the nell necessary level to do our jobs we're putting up the red flags for addressing i'm not sure what you're going to be able to achieve so i up it is just to most of the commissioner points we're concerned buyout future and the job description so it's hard to arraigning to the issues. >> 0 so i appreciate what the commissioners have saying i

believe that the controller's office maybe of some assistance we're trying to ask force o things the controller's office is helping us in funding they want us to get rid of the fund balance but when we go the budget analyst that didn't mean we won't try if we get information now and some justification for us to do something with the positions, of course, we'll fight i'm trying to laid down everyone everything what happens when the budget is reviewed by a budget analyst and that budget analyst is looking for so if there are things that will impact us and it sounds like in october 2014, 2015 is when this is going to happy in the middle of 2015- 2016 so we'll try to address that and once again the good news we have funding to cover those things.

>> commissioner walker. >> yeah. to that issue i mean we have i mean, you're already saying you're going to be using our fund balance we're under budgeted i rather see us not do that we have needs for the fund balance we're going to be in a location and i mean, there's really solid good reasons for having a fund balance i'm saying we can't go to the general funding and ask for money it's the balancing act. >> read the tea leafs. >> right we're being efficient there's you know there's projects that have been around while so there's efficiency build spot logistics so, yeah

i'm concerned about going too much into our fund you reserve as a practice. >> so thank you. >> thank you and we see your calendar would you go over your calendar the next steps we have another special meeting on february 3rd to go over this again and i'm sorry - are we voting today on the budget. >> this is the first. >> this is the first presentation. >> okay. >> on february 3rdrd. >> we'll be able to vote on february 3rd and come back on february 18th for the 09 one basically between now and the 19th we will be loading the budget into the system and putting any changes at this point it is easy we're not making changes and after we kind

of think about what is going on a couple of things up to date buyout fee study and the budget is due february 23rd is to the mayor and controller's office and the mayor bh will submit the budget to the board and there's a budget committee 0 the budget committee will get the budget will work with the budget analyst and finally by july 24i9 the budget needs to be voted on and approved the next step we'll come back to the controller's office and i believe mr. steve son mentions she'll be able to give us an idea of the recommendations or fees and on our end we'll talk about some of the things we've heard about

today about public housing and looking those do we need to do anything else. >> thank you deputy director. >> this is just to remind the charter reminds us when we vote on the budget there be an firm active vote from 5 members a majority to patios as that's on february 1st, we don't all have to be here. >> everybody has k34i6r78d. >> thank you city attorney. >> just on that special meeting we'll be dealing with that. >> the budget will be the item. >> is penthouse on item 7? seeing item 8 director's report on the finances

>> ms. madison deputy director of dbi before you, you have the year to date financial report december 2014 one minute thank you sow we've been talking about our

finance over the past 6 months so we'll talked about our revenues and at this point we know one hundred percent fee will actually extend this absorption is due to the fiscal year so based on our year to date and indications of what sometimes happens in january or february we're projecting to have a slight deficit in right side about $2.7 million less than was budgeted but in the budget presentation if you go and look at the expenditures we'll have saving so that will be we have $2.5 million in a surplus at the end of the fiscal year and those are just things that bans where we are at we anticipate this is where our

expenditures will be so we talked about the expenditures for a other departments i'm hoping the current year we'll spend almost all of the $10 million and project only $8 million last year that of those over one million dollars and we're working with department their submitting billings billings they're providing things so we're hoping that will happen one spot i've not talked about is over head so when pick steven so that was here she lacked the indirect cost this is a citywide overhead it is $4.5 million and historically we've never at the end of the year we don't spend that you much off the bat we're spending this from there and the

other location that you'll see is the salary savings we're recruiting brought on three or four people and doing other recruitments it takes a while for the recruitments to happen so that's why you see the salaries there. >> overhead for a year to year comparison if you going to the next week next sheet you'll see that revenues are slowing we look okay for the budget the front page is actual to prejudicial the san jose last year we'd collected our $6 million in revenues a 6 percent drop the next table shows the evaluation that evaluation is really going down

a 14 percent drop in evaluation so the number of permits this is key the work continues and that navigated the work increases if you tally it up 16 thousand permits this time versus 15 thousand last year the evaluations that transitions what happened with the revenue and on the expenditure side year to date the expenditures this box is comparing apples and oranges it feels we're 75 percent less than last year and twaubd u talked about that we had this project funding in our budget it gets moved if you go back to the front page we have $30 million no project we don't move that funding it is moved afterwards so once that is moved

you'll see the number up our frontals is the $30 million if you take a look at we're doing better than we were last year we are almost $2 million more spending this year than last year and then i'll be happy to answer any questions. >> i do not see any. >> thank you deputy director. >> update on the legislation. >> good afternoon bill perspective affairs i'll hit on a couple of the highlight we've been talking about the authorization of unit of dwelling units without a permit remains we've issued 3 permits we still have a number of those under review many of the ones under review

are actual in planning something like that 54 of '90 in planning planning has a number of requirement that an owner needs to deal with prior to actually getting a permit on legalization of the unit and we're trying to work with them to see if there's a way to make the process for efficient we're seven months into this program it is going to take a few months longer than we vaccine see where the demand is and as the directors pointed out there may be a need for more aggressive outreach to make sure that people understand the incentives and advantages of doing this program i also wanted to mention on the soft story retrofitting the sdrooen forms were down to approximately 35 non-k3450i7b9

property two schedule directors hearings looking at those owners one is scheduled for february 10th and the second he february 17th so essentially that program as i've mentioned 99 percent successful we're in the interesting phase of building those rooits into earthquake safety the immediate program i've mentioned the vacant 77 that was supervisor tang's legislation we've set up a dbi website a would you to encourage people who that might have a vacant storefront to register it the legislation is set up to not get two notice of violations on those types of vacate for the first 2 hundred

and 70 days to provide people ample time to find another renter or small business to release the property we're working closely with the mayor's office of housing and economic development and also with the small business commission which has an active program trying to identify and match people who are looking for properties with vacancies and maybe available i would say the only element we're expecting no legislation from supervisor wiener dealing with code enforcement we don't yet have the details but we're keeping a close watch on it and working with supervisor tang's office 0 who is interested in 345ur7b9 improvements for accessibility and we're trying to make sure that the language is implementable and particularly it doesn't resolve

in small businesses being unduly burdened. >> commissioner walker. >> i don't see an you want on enforcement of short-term rentals i believe there's a directive issue about the process i think that is reasonable to assume our special circumstances are going to be pulled in at some point not necessarily take on enforcement as but as commandments come in like illegal unit we're out there. >> it takes effect as far as planning is concerned february one they've posted on their website rather details specifications and stipulations about someone who want to do

short-term rentals is going to have to do i did notice that there isn't very much said about code enforcement aspects of that and i'm assuming that they're trying to get the program up and running before they get to that part as well as i know we have not had any new classrooms complaints in the past we haven't had very which we were the ones responsible for all the enforcement under chapter 41 a-32, 3, 415 years that came in as complaints image that rosemary in the housing organization has 20 or thirty in the early part of this year prior to the passage of the two

short-term rental legislation so we from a total prevention we have not had that many complaints whether or not this changes that the whole new environment we're about to enter remains to be seen our conformity will respond accordingly. >> thank you, bill. >> okay item 8 b update on major projects. >> tom director of the bidding that inspection i want to inform you, we got the demolition of the candle stick park the issue regular type of method for january 5th january 5th you know they've objected the permit my question 307b that parting first. >> so it's not for imposition

only a mechanic. >> they're waiting. >> got to. >> an update on the major project on the january meeting people you know remember the last two reports we give you the major projects slow down a little bit on december maybe due to people wanted to take vacation and submit the project and go up but january i expect they'll go down we're up and down a little bit that's what i expect my question on that? okay. thank you >> thank you director. >> item 8 d update on code enforcement. >> good afternoon commissioner this is a code enforcement dbi update december the