or should it be born during the budget process and discussed during that process? and i think there tr pros and cons to both of those approaches. what are the drawbacks to seeking a global answer and the cost-of-doing business for this broad diverse base versus acknowledging more variance in the group in terms of services and pressures they face? is there means of addressing this that can minimize city costs? and then lastly which i know supervisor mar is really a key part of your focus here is are there means to increase predictability and certainty for providers and the workers and the city itself? and i know some of the ideas on the list for discussion here might include contract mechanisms and terms. since i was at last

involved in this discussion we now as a city we now adopt a five year financial plan for a city and a two year budget. do those longer range financial tools increase ability to increase the predictability for the city and the provider network? and are there others? by no means an exhaustive presentation today but some background and some questions we're considering and i am happy to answer any questions. >> thank you and through chair farrell we have a number of speaker cards but i know may 1 our minimum wage goes way up in san francisco. oakland has the highest in the nation right now and i think we jump may 1 to join oakland or as close to the highest in the nation but i know that creates some challenges for non-profits and others in the city. could you talk about how non-profit contracts are adjusted for -- going to be

adjusted for the minimum wage and how -- i know some of the executive directors are here to talk about the wage compression you talked about as well as a result of the increase in the minimum wage, and then once the minimum wage hit hitss $15 an hour and 2018? >> as i recall. >> and increase by cpi yearly after that. how can the city adjust to that with the non-profit sector? >> those are choices not made yet by the city so the mayor and the board will grapple with. i think kate howard is the best to speak to your question supervisor. >> thank you supervisor mar. through the chair i am the mayor's budget director. as you recall we set aside money in the budget last year to address the impactings of the non-profits of the minimum wage increase that

we hoped would be passed by the voters. through the five year financial planing we made estimates of the cost of that impact going forward. our current estimates are the direct costs to the city as we rise to $15 an hour or about $10 million a year and we set that money aside and we will certainly submit a budget that includes that. on the issue of wage compression or the ripple effect as some are calling for you know i think this is a topic that i don't think we fully gotten our arms around and i think there is more work to do and discussed it with folks in the non-profit community and will continue to do that. >> thank you and then one other question is on the parity between non-profit or the lack of parity between non-profit

contractors and for profit contractors according to our -- let me try to remember, our minimum compensation ordinance. could you talk about how for profit contractors are able to get annual multi-year increases in the contracts with the city? >> there's nothing in the charter that prohibits either -- or in practice that prohibits a non-profit or for profit from entering into a multi-year contract with the city that specifies anticipated funding in a given fiscal year. the charter of course creates a limitation though on the effect of that, that multi-year contract, so the contracts can only be appropriated one year at a time and each contract has a non appropriation clause should the funds not be appropriated for the multi-year contract. what we will see on a typical for profit or private sector bid construction project for example would be a number of bidders

would submit bids that would include the expected costs over the duration of the construction project and a low bid would win. the one that submits the lowest cost wins. the practice on the non-profit side has been somewhat different. generally speaking mayors and boards -- rcht simply this -- not simply this mayor and board but recent mayors and boards preferred to make a global decision what cola you're going to provide to this base. that's not a global rule so there is nuisance how departments manage this and we have departments here today that can speak to it but generally speaking in recent years the desire is make a single decision and apply it to the full base and you're reserving that right annually and doing that annually. ways of entering into the multi-year contracts could be part of the work we're

talking about. >> in the future maybe we can talk about that subject and the parity between non-profits and for profit contractors. maybe i will leave it at that if we have no other comment dprs from -- and colleagues and i will open it up for peculiar. >> that sound. >> >> public comment. >> that sounds good. >> i will limit it two minute and i will begin to call the speakers. [calling speaker names] >> mr. fields. >> supervisor farrell, supervisors, i am steve fields. am here representing the human service network as one of the co-chairs. i want to thank

supervisor avalos and supervisor mar sponsoring this hearing and thank the unanimous support from the board in this past budget cycle for the fact that we have to finally address the dysfunctionality in the way that we as a city and county deal with the funding stability for what is becoming the most important vulnerable population providing sector for the city which is the non-profit service systems so i am very optimistic and the think the membership of the human services network is as well that we're moving toward a really monumental shift in deciding how we go forward recognizing that we can no longer expect to resolve these issues of non-profit service funding, the salaries our workers deserve through the insanity of the june add back process and if no other reason is going to hold us all

together not going through the june 18, 24 hour days on this should hold us as we look for solutions. i would like to present a proposal to the board and i think the questions that supervisor yee and mar have asked under scored this and even clearly the points that ben made about this which is we would like to see a study, a group convened that will look at resolving all these complex questions with a guarantee two year cost-of-doing business increase agreed upon with the mayor and the board of supervisors for this current two year budget cycle for each year, 15, 16 and 16-17 and we can study and come back and appropriate period of time with recommendations to resolve and explore all these really important questions that have not yet been resolved, so thank you for your support. we look

forward to finally resolving this. thank you. >> thank you mr. fields. next speaker. >> i'm going to move over here so i can monitor the time better. i am peter mace iac and a representative with seiu 10 to one and i agree with everything that steve fields says. there is nothing more frustrating to be here in june sort of at the 11th hour not having no idea what's going to happen as far as funding goes. workers not knowing if they're getting a raise. non-profits not knowing if they have funding to deal with increases in health care and rent and other things. it's a very chaotic situation and it's one i think we can all agree that we shouldn't repeat and at the supplemental hearing that we had a couple of months ago i think i heard unanimous support for seriously addressing this permanent fix and it's to see we're having a hearing now

and moving towards that. one thing there are a lot of nuisances and complications with this, but one thing that we can't do is neglect non-profit workers while we address this long-term fix. i do think that we may need to study and put together a working group to look into this in a more detailed way how we do something permanently but we need to establish a cost of living increase bridge that we can walk across while we get to this permanent fix that we will be discussing. non-profit workers -- if we're going to hear acknowledge this situation is real and going on we can acknowledge it in the future but not address it in this budget year and the next budget year and i will say that the non-profit workers every year are doing amazing work with less and less money in their pockets and less money in the agency. i

talked to non-profit workers. i never heard them say the requirements who we serve is going down because we didn't get an increase. the requirements stay the same and go down for the requirements and we need to provide those services. >> thank you. i will call some more names. [calling speaker names] mr. o saki. >> good afternoon supervisors. i'm here as co-chair of the api council as well as a member of the human service network. i am very pleased to be having this conversation not just about a conone time fixz but a solution to the cost that non-profits have beening. supervisor mar summarized this issue succinctly and if the city values and wants these services we have to be

willing to pay for what they cost. now the api council submitted to the mayor a cost of doing business proposal for 5% for the coming year and addressed prior years of getting zero or funding decreases as well as to address the impacts that have been mentioned today, the rising minimum wage, not just in terms of the direct costs but the indirect costs on employees in the organizations and i want to stress this point and that as pointed out earlier many of the non-profits look very differently and our structured differently and funded differently. my organization is funded through a blend of city funding but federal and state funding so i think it's very important to take that into account that a one size fits all solution doesn't necessarily work for everybody that we have to be careful about strings that we attach to this. i know there

has been mentions of performance measures and direct pathways to employees and it's important to keep in mind this issue has many levels. it's very complex and i urge us to take the time to review it carefully and come up with the best solutions so we can provide the best services to those that need it in san francisco. >> thank you. >> hi. i am rebecca and intensive case manager at hyde street community services and the out patient clinic in the central city. i know that one of the focuses is creating safety and we're talking today about hiring police. we're talking about a new jail, right, and i believe that we don't need those things to be a safe city. i think what we need is make sure we're taking care of our workers and one way to do that is make sure that our non-profits are really taken care of. my agency is having a hard time staying open, right,

and our salaries radio so much less than people. >> >> doing similar work in other arenas and we have to address that if we're going to make our city safer. we have outcome measures that show the longer the clients work with us the more likely they will be housed and connected to vocational programs and primary care and the outcome measures are there. we're doing good work but it's harder to do that work. we can't even afford to live here even more. even 3% doesn't account for the cost of living increases happening so if we can actually start to build some measures that make this work sustainable then i think we will see a safer city. i think we will city -- like san francisco be this thing that we want it to be, and so i think that's something to really think about. i think always we should talk about like mobile crisis is having -- they should be the ones that are responding. we

should have non-profit workers and case managers. like we should have enough people out there to respond to mental health emergencies and not rely on the hospitals and the police and jails and things like that so i hope you guys can create like a really beautiful and sustainable plan for non-profits. thank you. >> thank you. next speaker. >> good afternoon supervisors. my name is jane and i represent the non-profit sector for opeiu local three and i wanted to address directly something that i feel like we talk around a lot when we have these conversations about non-profit funding, and i want to ask you to see the services provided by these community based agencies and these non-profit workers as services on par with the services provided by the workers who do wonderful work and are

employees of the city of san francisco. the non-profit community based agencies are funded by the city and rightly so because they are community based. every survey ever done will tell you that services are accessed more frequently and more effectively and have better long-term outcomes when they're located and in and culturally competent within the community and all of you know you represent different populations, very different areas of the city and the folks in your district want services that speak to their needs and that's what our non-profit workers do, so the city needs to see those folks as important as the city employees, their work as effective and as professional, so we're asking you to provide some leadership here and help us get to a

long-term plan. i'm in agreement with folks who spoke about how complicated that plan might be. the need for that, the need for something going forward, so we're asking you to provide that leadership today, and to support and recognize the work of our non-profit folks. thank you very much. >> thank you. [applause] a couple more speakers. [calling speaker names] ms. adams. >> thank you. cheryl adams with larkin street and co-chair of the human services network. i want to echo the comments that steve and john made and we greatly appreciate the hearing today and the opportunity to really talk about the complicated issues that face all of us in tries to address having a good cost of doing business

increase or methodology for determining out of the budget process what that should be to sustain a healthy non-profit community that is providing critical services to vulnerable populations in san francisco. we are a diverse group of non-profit providers that provide an array of services and i think having both some mechanism for looking at how best to do that over time while addressing the immediate need for this budget upcoming year and the year following it to have some stability for the non-profit sector, so to have a cost-of-doing business increase -- i will go with john and 5% and api and have a process that actually addressing all of the issues that come up when we try to have this dialogue and i support and appreciate this opportunity and look forward to continued dialogue. thank you. >> thank you. next speaker. >> good afternoon supervisors.

i am jonathan vernic and the executive director of baker places. i want to thank you again for having this hearing this afternoon and better than june 20 something and at that point normally this room is filled with people and there is a human cry and decisions are made, not really in the light of day but in the rush of too many need and too little time. i have worked for baker for over 30 years and baker places has been around for 50 years and we like many other organizations represented here have tried as best we can to respond to the changing needs of san francisco and to the many social and cultural crises that have occurred over time whether that was the aids epidemic or the substance abuse crisis over time, the changing face of

mental illness and a variety of other things and we come up with unique and creative and innovative programs that we take great pride in. for 10 years myself and my colleagues came every year simply to try to survive the year literally, to try to save programs, and what ben's graph doesn't really capture by drawing a straight line is the sense of uncertainty during all of those years as to whether or not specific programs would even survive, and now that we've gotten back to having a conversation about these things we encounter times when people look at us and say -- supervisors will look and say "you know we gave you something last year." there needs a permanent fix, solution to the ongoing problem. that process doesn't work. these are serious long-term issues and the workers who provide the service to san

francisco need to have a permanent solution to these problems. thank you for your time. >> thank you. next speaker. >> good afternoon. i am with hamilton family center. i wanted to start out by sharing the waiting list for family homeless shelter hit a high mark of 287 families a few years ago and now down to 137 families and that is not due to a reduction in demand but due to hard work at our family center, catholic charities and other non-profits in the city and ts embarrassing frankly that we're not able to pay these workers a fair wage that allows them to stay in the city that they have given so much to. a couple of facts i. ed to point out. >> >> yee you asked about the cost savings and contracting out with non-profits. a case

manager and the fully loaded case working for the city is $140,000 a year and the fully cost at well paying non-profit is only about $80,000 a year. multiply that by the number of case managers that you're paying for and i think it's a significant amount of money that the sector is paying -- the non-profit sector is saving the government, but this shouldn't be done on the backs of workers. i think it's great we can save money and provide excellent services but should do so in a way that is fair. we're under a lot of pressure in the non-profit sector. some of you may know due to changes in the health care reform in january organizations that are between 50 and 100 employees are looking at double digit increases in insurance and we can't increase wages with this and philanthropy isn't the answer and not to

back fill government contracts and it helps the mission and be innovative and grow and be better. we look to you to solve this problem and i appreciate your time and interest in this topic. >> actually the numbers that you gave 140,000 versus 80,000 -- that's about a 40% -- you operate at 40% less than a city employee or department might operate under? >> i can't do the percentages in my head -- [laughter] but i know the $140,000 number is correct if you look into it and the $80,000 number comes from our own budget. >> thank you. [applause] >> next speaker. >> hi. my name is william camp nelo. i'm a crisis counselor at progress foundation acute diversion unit called the avenues and member of the seiu. i have been working in the non-profit industry in san francisco for 15 years now and

i never got into it for the money, but the fact is in those 15 years my salary has gone up almost zero in 15 years of working in the non-profit sector. now granted i could have taken an administrative job and sat in front of a computer all day but that's not what i want to do. i want to work with clients. not only has that been the fact but the fact is over that 15 years the a cue itd of the clients that i have been working with steadily increasing, increasing, increasing, increasing. we're dealing with people who are basically completely incapable of taking care of themselves with very inadequate funding and a very inadequate infrastructure. the other thing i would like to point out is that that the san francisco department of public health has been providing these services now for many, many years and i

laud them. there is no where else in the united states that provides services to the homeless and to the mentally ill that san francisco does, but the department of public health has been balancing their budget on the backs of non-profit workers now for a very long time, and i think it only fair that we get paid what they pay themselves, and even if it were within 20% which it isn't. now he mentioned earlier the speaker before me the difference in the case management costs. most of that difference is the salaries and it's just -- we work with the most difficult -- we are on the front lines of the problems that all you have to do -- >> thank you so much sir. >> thank you. >> thank you. i'm going to call a few more names.

[calling speaker names] those are all the cards that i have. next speaker. >> hello. i am vivian davis. i am here to represent baker places, non-profits specifically, jo roughin. we are a residential treatment center housing 16 people. a little bit on perspective. i recently moved here from out of state. i am from tulsa oklahoma and moved here in september and when i left the state i was making about $40,000 a year and i know in tulsa the median income is about $47,000. i have a house and mortgage payment that is 550 a month and moving

to san francisco and i love this beautiful city i expected to make a little more due to the cost of living but as a masters level licensed clinician i make $18.44 an hour and my rent is 2700 a month, so for the first time in my adult life i had to be financially self sufficient on my own. if i didn't have a partner here i'm not sure what i would do and it's a very vulnerable place to be and i love what i do and i love the non-profit work that i do but if any assistance would be greatly appreciated for the non-profit agencies. thank you. >> thank you ms. davis. [applause] >> hi. my name is jordan wigins and with the local non-profit. i have been in this work for 15 years and i am here to reiterate that i think the 5%

would help the case managers like myself very much so. i don't know if you know but we work -- as everybody said the most challenging clients, families and children in the city of san francisco, and other places as well. i feel that overall you have to take care of your workers period point blank and i work with a lot of people who are homeless and i make a running joke. maybe it's not funny to them but i am one paycheck from being homeless so i think the 5% will definitely help and i think that you guys should take a look at that. thank you. >> thank you. next speaker, mr. bradshaw. >> hello supervisors. larry bradshaw seiu 1021. i think we remember the wal-mart store that sponsored a food drive for needy families during the holidays and

america was shocked that the recipients were full time workers at the same store and similar outrage that mcdonald's had a resource line for employees to call to find out what public assistance they qualify for. i think in san francisco we think we're more enlightened than these companies but we come to you every year to tell you that the policies regarding city funded non-profits is not more enleidenninged. we had a conference this weekend and the workers shared stories of the programs they administer and the same ones they qualify for based on income. we have a member working at the native american health center and what it's like to line up for the wic benefits at her place of employment so as we talk about the permanent fix and i am thank will we're finally talking about a permanent fix we want to talk what it means to be a full time worker at a city funded

non-profit that you qualify for the programs that you administer or that many non-profits do not offer family health care and the few that do offer health care it's about a thousand dollar per month which assuming $15 minimum wage is half your salary so as we move forward we would like to find a permanent fix that's dignified that's enlightened and something we can be proud of as san franciscans and we have better labor policy than some of the bad actors. thank you. >> thank you. next speaker. >> good afternoon supervisors. name anymore is natalie nailer and i am the elected leader of opeiu local three and i want to say i am extremely grateful to be speaking on this topic and not fighting to retain basic services and retain the jobs of our members so thank you. what i would like to