up. and then we're going to garnish it with olives. and some lime and a fresh stalk of selly. right on. >> we like . >> good afternoon and welcome to the lafco i'm supervisor avalos the chair of logical today is clerk call the announcements

please. yes please be advised the ringing of and use of cell phones planning code are prohibited at this meeting. . >> thank you. let's go to the fir item rrlt. >> on that call of the role supervisor avalos supervisor breed supervisor campos supervisor chiu's supervisor mar is alice griffith absent mr. chair you have quorum. >> approval the lafco minutes regular meeting cultivation have you had a chance to review the minutes questions or comments going on to public comment seeing we'll close picking up public comment and rrlt vote. >> first and second.

>> motion from commissioner cruz and second by commissioner linda commissioner linda is an additional sxherld and item 3 consideration of the lafco budget for 2015-2016 thank you we have clerk of board. >> good afternoon supervisor avalos and members of the lafco the clerk of board i'm here today with andy our administration and finance deputy to answer questions that surfaced during the lafco review of the proposed 2015-2016 budget as the commission is aware in 1963 the state legislation created the lafco in all county

the responsibility stepped from the 19985 local government reorganization act sxhaenl in san francisco the coincidesed with the san francisco lafco being activate the lafco locally the lafco established their mission bay and created a work plan for the adaptation of a conceptually model of gfrnsz for the future of san francisco including among other things a straight utilities strict within the framework of the city and services at the pleasure of board in 2007 when i became clerk of board the economy was in recession he determined at this point that lafco had a massing

one million dollars carried forward i worked with lafco they've agreed agreed and the board of supervisors agreed that the lafco instead of proofing more dollars would conduct a general lafco business under this agreement lafco retired the reporter for primaries in the future if approved by the board fast forward the chair is reaching it's end life in 2007 the board requested that lafco take on additional roles of the project so do to they asked for clerking assistance when the board of supervisors authorize via motion and memorandum of understanding

was created between the puc and the lafco for the ability to utilize costs not to exceed $2.1 million for a virus role for the puc implementation of cca provide are 7 slides i don't intend to review only the first 4 for the clerking support the remain 3 slides provide the current general fund carried forward and the puc carried forward on slide 2 the versus actual in 2008 the board approved the motion authorizing the clerk for additional administrative assistance for the additional support in corneas with the agreement my office charges lafco a $27 million support of costs and

half time clerk is about $72,000 a logical and the board agreed to the arrangement that was the exception for the advisors role the frequency of the lafco meetings and the workload due to the sires will increase 3r5ish8 instead of him or her new staff they absorbed the duty and fin they moved the friendly benefits cost from the general fund to the logical carried forward-looking back we understand it never materialize as you can see on table on slide 2 through the clerking services will lower the actual costs of the services are much higher than 20 thousand and supervisor

breed you've identified a structural issue that needs correcting it currently charges more staff time to lafco than is utilized or needed so since lafco general fund carried forward will be decompleted we'll recommend did half time clerk will be moved back to the general fund. >> supervisor breed. >> can you explain that because i think that i'm a little bit confused by the statement. >> the statement that it is paying for more than it is using. >> thank you, madam president the halftime salary the entire salary oozed used to be paid for by the general fund when the cca advisors fund lafco for clerking services ramp containing new

staff we absorbed those staff and rather than continuing to have ism of them pick up the lafco and board allowed them to pay for the other halftime similarly for that staff you started did conversation and appreciate you're asking the important questions if no other questions i'll move to the staff and clerking services provided by the office through the chair. >> oh, sorry linda there's a difference of 61 thousand dollars for actual to the budget for the halftime per year. >> that's correct as far as the information that is on the slide i will be a little bit more forthcoming we engaged in a conversation with the lafco clerk that indicated it is

actually more than that in terms of the the hours utilizes. >> the follow-up question is mined is lafco paid the $71,000 anticipating halftime employee who has that money. >> in terms of the staff who are currently hired in my office. >> i was wondering it went through a certain budget line item. >> the lafco is a line item in our budget so it is in the budget for the board of supervisors lafco - and the board. >> in the clerk of the boards budget that's correct so it is currently a line item in our

budget. >> understood okay. >> hi the lafco carried forward is off budget it was bucked in the prior fiscal year the funds are in the reflected in the we are talking about the clerk of the board has a division within the board of supervisors the hours clerk of the board the logical has it's on separate index soda code those are not coming into our office we charge those expenditures separately and it is throughout the year to cover the costs. >> basically move the expenditures from the side to lafco kinder forward because the clerks funds are supporting the sore the assistant clerk we moved those expenditures

quarterly. >> from the clerk to the lafco carried forward. >> yes. >> if i may i first time to say the clerk work is good but the difference i'm wondering i guess to put to blueprintly are we anticipating to get that back? >> i think that is a lafco question the answer is no when we bring the budget every year this predates mr. frooedz time although he was hired in 2009 we authorized two positions to lafco we'll give back to the general fund our entire budget we don't get that back that's a conscious decision we made during we had a surplus figuring

out what our budget needs were and glen eagle golf course back to the general fund that came from the general fund originally so it wasn't as if it was anything not known so to speak so once now our surplus with you we don't have the available fund now we're staurl a partial general fund charge and so i think that is the question now we're dealing with what should be our budget going forward. >> so i'd like to ask a followup question so monies have not been because in this current budget what's going to happen the rest of the reserve will be used and request to ask inform additional general fund dollars which has to identified in terms

of where those monies low come from in order to support of the budget federal or state for the entire year that's my understanding so we have a make a determination the question is where do we anticipate those money coming from. >> well, my understanding is that there is a certain amount of that is overhead dedicated to the clerk of the board and the fund that go to zero fund come from many, many sources we're requesting at the board that the clerk is allocated a number of funding to cover the diets of the clerk that includes lafco. >> thank you chair and going forward we as the individual that will assign the allocation of hours of the clerk will not

just assign a halftime clerk going forward any longer weighing we'll assign the hours that the lafco is using and the ancillary hours will be used checking e-mails. >> i think i'm hearing two different things i want to make sure i'm clear i guess what is accident amount of money that is remaining that's in reserve for the general fund that was given back previously by lafco where are we - i know we started with a 4 point something million dollars surplus in giving that back to the general fund for lafco by reserving the right where are we. >> on slide 4 in your packet the loovg carried forward balance currently it is.

>> that it is 1 hundred and 16 thousand and they're going to need to use all of that this coming fiscal year and additional money they don't have necessarily access to. >> yes. that's correct. >> yes. >> so, now and i want to make that clear because we have to i'm not clear as to where this money is going to come from any cannot speak for you know the budget a created by the mayor and voted on by the board of supervisors and other members of the board of supervisors say yes weerng we're going attorney general fund this or no. we're not i want to make sure we understand how to get the remaining money to support lafco for next fiscal year and let me

interject it is not educates the money it is not we make an allocation and the money is available we do it in certain years we have to break what the practice has been over the last several years relying on the reserve is not possible it come down to we make that allocation now that's it there's a lot of work with the departments like the clerk of board does with the mayor's office to request the budget that meet their needs we're one of the departments that hadn't seen substantial growth this was done by board action i know that is possible that the board given our authority and we have lafco that we request the mayor put in his budget that we have fund that accurate for staffing of our function of the board that also

include the staffing in support of lafco this should be where it comes from the general fund and the mayor putsdz that in the budget but if he didn't we should decide as a board operate from lafco we consider or allocate fund from the general fund as we make the budget for lafco i don't understand what he will it will be in terms of of you know educating fund that's an allocation a general fund to ours there's a certain size to allocation and allocate it for 8. plus billion dollars. >> i understand this can be allocated in that way but still has to go though the process find approval there are no goes this will be approved there the board we can say yes we support this budget yes we'd like this

amount of money allocated for this purchase because we as lafco allocate it is not set in stone. >> it's not lafco allocating it is the board of supervisors and the mayor allocating the fund. >> well, i want to make sure i'm clear because i think that i feel like you might be hearing devil supervisor avalos we at logical will make a decision as it relates to a budget and that will be referred to i guess the mayor's office and the board of supervisors and those funds this is what we're to request and if it is inserted into the budget and approved then it move forward if it is not it didn't move forward that's all i'm saying i'm just saying it differently. >> i agree with that

commissioner crews or. >> through the chair you're both right your executive officer has submitted his budget to you on slide 8 we've indicated what that is that you feel shortfall it madam president $148,000 plus and once the board determines that appropriation and weed we've not made the question request. >> actually the executive officer smumentd an amount we included in our budget we know it will be presented in june but for the mayors approval. >> we haven't reviewed that in previous years. >> it will be before the department of finance in just

that. >> commissioner crews i'm sorry you've been waiting. >> thank you for your presentation i have one quick question you just referred to as slide 8 i don't have a slide 8. >> we handed them out individually. >> i didn't hand it out to anyone else and you may answer this further along in the presentation as we get through the slide are you suggesting we go to by the hour? like a billing system that i'm familiar with in my world in business world of vendors and billing by the hour or something he have a minimum or maximize of hours we'll utilize

>> unless lafco provides direction the lafco clerk ms. miller will aggregate her hours and we'll present them on her time sheet she'll fill out the hours open lafco matter pea for the clerk of the board which is the way your executive officer does it now delineating lafco hours on his time sheet. >> but it is the oneus on us to make sure there is american people enough in the fund to cover the hours based on historically. >> it is important to watch and know your budget would we'll bring it to the executive officers evolving. >> supervisor campos. >> i want to make a point about the budget before i do that i

think it is more complicated as described i want to ask our council because there are legal requirement that state law places on the board and mayor to lafco i'm wondering exactly where we are relate to the legal allocation to the city in terms of lafco. >> nancy miller or miller through the chair it is to be funded as it was before unless you make a determination and lafco or make a determination that approves a budget that is smaller that gives rise to why we we the once you approve the doubt budget the mayor has the room object this is a statutory

requirement. >> what happens if there's a situation we approve the budget and the mayor and board don't provide allocation. >> i'm assuming someone about the legal requirement will we'll demand if you wanted to we demand that the budget be what was approved by the logical board. >> the reason i ask i want to make two points one is clearly there's a budget process we follow here and there is approval that has to happen by the mayor and the board of supervisors that said it is different for lafco we're not a state agency if you have the situation that the mayor and board explicit allocate the budget we believe is appropriate we can take the city to court,

if you will, i hope that doesn't happen by the point and this is the most important thing the second point i make is this i would hope that the mayor and the board of supervisors through the budget process approve what is we decide collectively is the right budget because i think there has to be context provided here we as lafco have also have the opportunity to have a larger reserve to keep for a money and when time were pretty bad for the city's budget we made a conscious decision to work with the city to work with the mayor with the board of supervisors and to really you know utilize

our reserves knowing that even though we have ever legal right to keep the money we wanted to be part of the solution as the city was cutting services left and right. i hope the same spirit that lafco worked with the city that the city through the board and mayor will work with the board to as we've will decompleted our resources to gusts the resources that are needed and you know i would hope the city does that because it's the right thing to do but i personally building that lafco has been very conservative in terms of how much money it puts in pittsburgh its budget over the years and i think that that

very conservative possible approach should be rewarded by the city and mayor that gimmick lafco what is needed and if the mayor and the board of supervisors decide that they don't want to fund lafco as we're asking you think this is a mistake and i certainly will not personally approve the budget as a member of the board of supervisors not speaking as a commissioner that doesn't provide lafco the reserves i'm one of 11 that's all i can speak to but my hope is that we won't have to go down the path but if that's the cats that the money is not provided we have every right to go to court and request so hopefully, we won't have to. >> supervisor breed and thank

you supervisor campos for asking our attorney to explain because that is very helpful i have one other question about the money that we spend for the clerk because i think i was concerned about the fact we pay for halftime for the clerk for a lafco from my prospective i'm not seeing is it demonstrated that lafco should be responsible to pay for half of the clerks time especially, if there are other committees and other things that don't necessarily more than halftime in terms of the time but not necessarily paying for their sufficient piece of by based on the fact we meet a few times, yes i know there is preparation but overall

i just don't understand how lafco would be responsible for that half of the clerks time that seems a bit much so. >> i think before you came into the conversation madam president, we received the history how the clerk became the standard going forward we're going to change the properties. >> into the point you'll do the billing per hour this is somewhat take advantage of. >> no madam president, it is an agreement between lafco and my office and the board and lafco and does that make sense to make that kind of a agreements. >> at the time it was i guess an important addition to the budget crisis we were not asking for more staff to do the work that lafco thought was coming

because of the lack of a cpa so lafco thought it was going to kip kick up the schedule and rather than asking for more staff we absorbed those duties so we moved the 45u6789 excuse me. the lafco carried forward understanding that there is a description that you point out we'll had had billable hours scenario. >> it is with the ed and the attorney and the clerk as well i mean the reality is yes we need to continue with lafco but things are definitely changed considering and the expectation of implementing cca we've been pushing a real possibility but as that comes down to life the

need for lafco becomes less of a need so i'm just trying to understand i do not like to waste money i want to make sure we're using our current dollars efficiently where it is almost as if we would not be in this situation to ask for additional fund if we billed by hours in the ways your proposing not only with the clerk but everything that we're required to pay for i just wanted to make sure we're keeping in mind and moving forward in the future i'm presented to move this budget along and to submit this budget as is but moving forward in the future there may be a need to make adjustments especially again on a path of pushing cca through i want to make that point. >> you're okay to move the