. >> cynthia goldstein welcome to the board of supervisors budget & finance committee dumb my name is it supervisor farrell i'll be chairing and joined by supervisor tang and supervisor yee and supervisor mar and supervisor wiener want to thank the clerk andrea ashbury as well as the members of sfgovtv jessie larson and charles kremenak that madam clerk, any announcements? >> yes.

completed speaker cards and documents to be included should be submitted to the clerk. items acted upon today will appear on the gin 16 board of supervisors agenda unless otherwise stated. >> okay. thank you very much so colleagues, we're to go in and out of order to get authorize those items items 4 to 7 quick prelim all item 4 for the jury room appropriation pro appropriate all receipts and expenditures for the city and county of san francisco as of june 2017 area item 5 the proposed sdprirm annual owners and positions if the annual appropriations ordinances for john 2016 to 2017 and item 16 the interim budget for the treasure island development authority for 2015-2016 and 478 or 2016-2017 and item 7 the interim budget for the office of

investment & infrastructure operating as a series agency for the 2015-2016. >> okay. thank you madam clerk those are the jury room salary ordinances to continue to fund our city's operations was we continue. >> good afternoon supervisors krorms the larger amendments requires the mayor and board to couldn't the budgets on july one at the end of the july the budgets you've consider not go effect until july 1st is passed the interim appropriations owners to cover the month of july those reflect the status quo continuation during the 12

month period month period required by virtue of the controller. >> mr. rose items 4 and six. >> we don't mr. chairman as please be advised the ringing of and use of cell phones, rosenfeld said this is to continue the budget we have no comments we have having a couple the recommendations for the deletion of the provision in section because is it allows the controllers from ocii staff services to salaries and benefits without the supervisors approval we don't believe that is needed and to deleted delete the proposals that allows the director of human resources to authorize the new progressions to provide services without the board of supervisors approval

again not needed so except for the potential exceptions to the interim i'm sure you're aware of are new positions largely the mayor's office maybe recommending that we start on july 1st until august 1st and each of those positions is important for the fornicating annual budget process we recommend you approve both 0 jury room salary ordinances with the amendments we ask you accept. >> okay. mr. rosenfeld. >> i am in concurrence that was intended to be a major budget but 83 it can happen. >> at this point public comment for items 4 to 7 seeing none, public comment is closed. >> colleagues entertain a motion for the budget recommendation and the nicaragua items 4 to 7 and amended to the

full board. >> so moved. >> we have a motion by supervisor tang seconded by supervisor mar and we'll take that without objection. >> okay madam clerk call item 3. >> item 3 is a hearing to consider a lease of the did you want in the unanimous of $6,000 plus with a chair salary and benefit fund. >> we have mr. wagner. >> that good afternoon greg wagner with the department of public health in the budget process last year as you recall we placed about 8 nature million dollars on salaries an reverse because of the budget and analysis we are respect through a program under the health care there was a lot of change in the

budget the budget analyst identified the salaries they recommended plaza think reserve we're here at the end of our fiscal year coming back to ask inform a releases of a portion of the letters only $5.2 million of the 8.5 originally reserved we've benefit working with the budget analyst to do bring that number down from originally submitted as a request to release and we're in agreement with the budget analyst on the recommendations ♪ report >> thank you mr. wagner mr. rose can we go to our report. >> on page 2 according toronto our preservation or projection the release of the reserves 8 hundred and 61 thousand dollars plus less than the request and

that is shown on table one on page 2 of the report and page 3 we point out that the remaining balance on reserve of $3 million blues plus should be returned to the general fund on page 3 of the gentle report and examiner we discussed this we happen we will be working with the controller to determine with what amount if any can be used but i will this board of supervisors budget & finance committee and we'll report back our recommendations to approve the releases instead of the original numbers and we recommended you return to the general fund monies a balance. >> thank you very much mr. rose colleagues, any questions for the department or mr. rose. >> okay. seeing none open up

for public comment anyone wish to comment on item 3 on item 3? public health along with public relations how can we relative 3b9 to public relations in the course of our lives we no matter what type of functions that each one is how to approve the health standard by observing the middle principle is servants of how to good to on behalf of self a bit of a culture vacation party culture vacation >> thank you very much anything else wish to comment seeing none, public comment is closed. >> so we have the budget

analyst recommendations to release the amount of 5176808 on recess and return the remainder to the general fund reserve motion to that effect and i move the budget analysts recommendation and move approved as amended. >> move forward by supervisor mar and seconded by i supervisor yee. >> i'm going on item 3 would you like to file it to the funded. >> can i have a motion to file. >> so moved. >> we'll take that without objection. >> can you call item 2. >> item 2 is a hearing to receive budget update from the poor san francisco 2015-2016. >> thanks i know i see ms. lane thank you for patiently waiting but thanks for being here. >> my pleasure elaine ford

deputy director for the san francisco i'm pitch hitting so to speak for mrs. mirror she was a hosted in collaboration with the gold man school they apologizes she can't be here today, i'm to back off the port is not making any requested budget changes we're here today to tell you how we're doing and give you an update of the unprojects for the port if i could turn to the overhead please just a reminder for the public the port is a self supporting agency matt haney all we make our own funds and spend our own resources and manage 7

nature million dollars of waterfront from fisherman's wharf to the harding hark or park in the south a public trust fund held in the trust for the people of san francisco we promote and preserve airing area natural resources to promote and maintain our assets much of what i'll be talking about today is the ports significant capital backlog and the process we've made to address that backlog as i mentioned we're on a fixed two year budget 2015-2016 represents the second year and the port is not needing any changes we're happy to live within the budget you established last year our operating budget is hundred million dollars this as the slide shows the major driver is

real estate at 51 percent that is real estate laelgsz leasing and parking 25 percent that's our parking lots and meters and maritime those revenues support our various divisions the majority of our expenses are personnel 36 non-personal is 28 percent force utilities and insurance, etc. our primary admission to control our control position and could control our net as much as possible and spend on the capital assets you'll note not slide we're designating 10 percent in the budget year to search per capital in the next year. >> while we won't be asking for budget changes during this process we've had a lucky influx

of one time sources in the current year both from pg&e prepayment of $15.2 million and for park improvements and our final settlement of the 2012 fire procedures we have almost $20 million of surplus revenue which will be coming to you to designate as capital we're work with the port commission we have the backlog projects which projects are the most critical to fund and we'll be coming to you in the fall to discuss that. >> while we are stealing excited we may have a $32 million capitalized you'll see from the slide the port is facing a very, very significant structural deficit in our ability to address other capital needs as you can see on the

slide the line on the top represents what we should be spending and the blue line on the bottom represents what we're showing in our 5 year forecast of what we'll be able to spend we have one million dollars - one billions of unopportunity repair that represents both the backlog and the good repair spending we're not able to fund in our current promotion these that includes this extraordinarily exorcises o forces that is projected in the 10 year goal plan the fee and the geobond the park bonds despite osgood efforts to infuse the support with the internal forces we're facing a very, very significant backlog with that said, we have a very

complete strategy we've worked out with the city family if a maintain our assets for the benefit of the public and really respond to the adopting waft we have excellent financial policies and have a 15 percent reserve we have the geopark program and the city helps us with short time phillips and help us with the cop financing and the 10 year fifrnz that has significant investment over $200 million in public investment and we're prioritizing our unlimited is capital dollars to projects that generate the revenue to address our capital shortfall and designate everything how we don't need to spend for operation into the capital budget our partnering with the city is extraordinarily important and

the leadership you're providing the port moody's put us on a positive outcome with the last revenue bond it was the ports partnership with the city the ports balance sheet alone can't address our structural but seeing the plan for the infrastructure districts precedes is giving the agencies of you that the port will address this structural deficit and provided for more stable future for the ports assets i just wanted to note the accomplishments you've done this is showing the accomplishments since 1997 this plan provides the policy directions for the port and establishes the 10 year and annual budget and since 1997

we have induced 1 point of million dollars of public and private investment 63 new acres of open space that is significant we restored 19 of the assets and we've roved 7 dir elect projects and in lot 337 and 44 new planned acres over the course at&t park was constructed and this is connecting the visits to connect the residents with the embarcadero freeway, etc. and anyone that walks along the waterfront we've met the goal of connecting the city and visitors with that waters edge we're also making great goals in developing projects for our own account more significantly the

cruise ship terminal is hundred and $15 million project the port contributed from debt and the landfill and 25 percent that is $30 million of other sources to accomplish that project and here we have politic ridicule from the crews passengers and jobs e we're proud we accomplished that on primary on our own count on the smaller scale other rehabilitation the good example you've approved forever the historic pier 31 it was red-tagged and unable to be used we're spending $6 million to open that up for pdr and are shortage use avoiding more significant investment needs this will generate $750 million

for the port. >> and when you see us back in the fall with the supplemental appropriation bill you'll see more and more those kinds of projects the port is in dialog with the waterfront use plan it is not updated in 17 years we completed a review in 2014 where i showed showed you the steps we're beginning to discuss with the public the view and the visions to the next way to use the piers not yet development the plan we adopted previously looked at many of the issues but we have any challenges we didn't address and importantly sea levels and it is complicating

the facility conditions their aging and more and more expensive to rehabilitate. >> regarding the seawall we at the port combined with our integration of capital planning committee are aware the seismic risk and vulnerability of our sea level that is not repaired since built we're currently doing a study to understand the seismic reflex them our seawall and see what the improvements will be to the seawall the range is so high but when the studies comes in we'll know what projects we should prioritize and we'll be working with the mayor's office and the planning committee on a proposal to address the seismic vulnerability of over seawall we have sea level rise that is

awhile this is not simply a port problem the property is added the epic center this is a citywide look at how to respond to seawall rice the bay halls religion not notedly but it will continue to rise we'll be looking at a strategy to address the sea level and we'll respond to 9 region issue we have exciting upcoming projects in addition to the capital supplemental this will be seen on pier 38 a rehabilitation for $12 million and we're excited to get this facility that is red-tagged and not open to

public use rehabbed and opened to the south beach neighborhood and with voter powerful on the height increases now headed to the ballot to really improve the areas and more housing awhile rehabilitating historic resources for the port so it concludes in my report i'll be happy to answer any questions. >> colleagues, any questions or comments i won thing i'd like to ask one thing eave by an talking about ms. moyer the alcatraz ferry know that is not directly recommended to the budget can you give us a status update. >> the port is very committed to retaining the national park

service and the ferry property we've been in negotiations with the services our preference is 31 half it is a good location in terms of the public accessibility and really the alcatraz landing is leading into our businesses we're stymied on the business terms and n t s times to take on capital responsibilities and we're logan for the significant revenue that comes from the service to pay for those capital expenses we're held up and ironing out. >> what's the next steps. >> weeping we've gotten since the port agreement the port is

not protecting to make a huge profit only fair rent and not have new obligations to the service with that new information from statue of liberty our team is negotiating with the business terms that the city can support. >> thanks very much colleagues, any questions for the port own e okay open up for public comment seeing none, public comment is closed. >> colleagues that is one of our departments to our budget we're not up to year but thought helpful to give us a status update a motion to file. >> supervisor tang and seconded by supervisor mar we'll take that without objection. >> madam clerk item one. >> the budget i didn't want for the mayor and the budget analyst forced the shortfalls rent and additional revenues. >> thanks very much so

colleagues, we have this standing item using the budget assault weapon nothing today to speak on item one will we'll make a motion to continue this item until next week open up for public comment public comment is closed. >> motion by supervisor mar and seconded by supervisor tang objection. >> madam clerk, any other business before this committee? >> no further business. >> thanks everyone we're adjourned

meeting. >> live from san francisco. (laughter) we need to have our own orchestra