had budget analyst. okay, thank you very much. up next we have civil service commission. #w50e8 rr take a half hour break at 12:30. who ever started then we'll finish your item and break. hopefully we can get [inaudible] before the city attorneys office. we'll take a half hour break [inaudible] >> good afternoon, now supervisor. my name is michael brown and executive office for civil service commission. i want to give a brief overview and talk about our goals and objectives and give a high level view of what the budget request is for the next 2 fiscal year. for the chart [inaudible] charged of providing quality persons for it the sitdy and county of san francisco.

[inaudible] the mission is to establish insure and maintain a equitable and [inaudible] for the citizens of san francisco. the commissions goal is to provide the best qualified can dts. it is the ghole in policy of commission to provide fair treatment of applicants without regard to membership in a category and to [inaudible] nepotism or favoritism. [inaudible] they are appointed by the mayor and reviewed by the board of supervisors and they are required to be sworn with the special statement of not opposing the civil service appointment for political activity. we usual have meet ongz the first and third monday. it is a small staff of 6 employees for the civil

service commission itself. the commissions authority and responsibility of the [inaudible] include but not limited to the purpose definition administration and organization of the system and civil service commission. the establishment of policy procedure and rules [inaudible] discrimination applicants [inaudible] the charter empoers to undertake reviews and conduct of [inaudible] oversight includes inspection service and also have general power to conduct system audit

program. we hold appeals and hearings-we have hearings on appeal and there are over system issues. we review proposed personal service contracts that are-instead of using city employees we review the purpose and those service contracts. we aprieve the wage and benefit responsibility for the city for city official squz also for prevailing wage certification. we also manage employee relation ordinance administration. i want to go thoferb sknauls priorities for fiscal year 2015, 16. we want to increase the access and utilization of resources, creative transparency in

procedures and communication, insure timely resolution of appeals so issues are addressed fishly effectively and fairly. continue to address sitdy department needs for personal management while maintaining the cities system. streamline and insure the xhirgzs rules policy and preerjt are understood by all steak holders consistent and compliant with the department. continue to [inaudible] tublt meet the man dates and oversee the operation of the system. as you can see the civil service request for fiscal year for 2015, 16, and 16 17 is [inaudible] increase in commission budget over the next 2 years are primarily used to projected increase in employee sl razz for the

cities labor organization agreement, projected increase in benefit cost and renewal of copier agreement with umgrade to handle large scale projects. finally, continue to work the city attorneys office for needed legal advice. no changewise the changes over the next 2 years and no projected overtime cost over the next 2 weirs. we are in agreement with the budget analyst request submitted to you. if there are any questions wree reedy to take them now >> thank you very much. any questions? okay, thanks very much. you are one of the departments off the hook from the budget analyst so congrats on advance. appreciate you being here. up next we have the controllers office. ben rosen field. in the mean time madam clerk can you call item 6-9, please?

>> item number 6, resolution concurring with controllers establishment of consumer price index for 2015 and [inaudible] item 7, ordinance adopting the neighborhood location and graffiti clean up tax [inaudible] tax year 2015. item number 8, resolution designateing the city and county of san francisco [inaudible] item 9, resolution concurring with the controllers certification that services previously approved can be performed by contractors [inaudible] >> thank you. acolleagues when we are done dw the controllers aufs i would like to make a motion to approve the items and send them to the june 24 budget meeting. continuing to the that date

which sth first date and hopefully will succeed in passing out the budget. mr. controller >> good afternoon, ben rosen fieldsism i'll very briefly walk through highlites of the budget for the coming year. the office work is cleesly aligned with the cities financial cycle so we are involved with thou city manages its money. this is a functional cycle that shows how our work flowsism we are involved in projecting city revenue and economic impact. we assist boat the mayors office and board of supervisors in the prepivation of cities annual budget. we then, once that budget is adopted by the board, we work to monitor, control and report on spending over the course thf fiscal year. we then as the fiscal year unwind we spend

time reviewing, auditing, assisting and helping development recommendations for the department and policy makes to improve city operation which hopefully ends up the fiscal year cycle. we help this feels like a vuch ws psychosqul we spend a lot of time organizing our work around it. a couple key highlite toods hit a couple of them, i won't read through the slides, but generally speaking we spend a lot of time as a controllers office modernizing the cities financial system and process. you see the budget for the next fiscal year, we are spending as we always do time reviewing and helping policy makers plan for and implement initiatives. during the past year we spent time with all of you, the mayor and others

analyzing proposed ballot measures and falloge adaupgds to sit them up and assisting treshiers office with the gross receipts tax from the prior cycle and others of course. as a office we do work along with the mayor with the board of supervisor for financial helths. the board adopted revisions to city reserve policyism we spent time supporting long term financial plans that the mayor and board adopt in a given fiscal year and spent time modeling and working on long term liability for the city whether pension, retirey hemth and capital. lastly for quick hilite said we do work to support policy choices and operational best practices. somebisms includes work with the

police department on redistricting district bound razz. we conducted a review of support chb housing in the city. zee put time and effort in place creating a employment management system. we work to grow the crubz auditing program. spending fime with department of public heblth for ifordable care act. we are happy to receive a [inaudible] award, which is a nation wide award provided for out standing audit work at a local government level. if you review functionally thou department is organized, this slide provides a snap shot of the 14, 15 budget. these are some tof the functions. you see in the bottom right corning the city auditor inory office makes

up just over a quarter of the budget and pay roll service orn the left side makes up over a quarter of the budget chblt we do pay city employees and run the human capital pay roll benefit squz hr suite upon which a lot of the cities human capital functions operate, but you can see here as well theficial system project making up about 8.2 million or 15 percent of the budget for the coming year and this is our focus in the office for the last couple years. as we talked about replaced over 30 year oldficial system mainframe based sat sth end of the life and replace with something that better supports the cities needs. we do use a planning process. this is a very quick mapping of our controllers office jigz goals to the resources

allocated in the proposed budget. iowon't go through this in depth but you see in the middle slide, the portion of the budget alcailted to support the financial system is the focus over the last couple years. looking ahead into the budget year to highlight a couple key budget initiatives, again the one that is dominating our offices focus and resourceed in the budget brf you is replacement of the cities aging financial system. this is a 59 million dollar 2 year project we have been working on twr had past 2 and a half year tooz get to the this point cht you do have the contracts that allow us to proceed on july at your boretd meeting tomorrow and ready to move into implementation july one.

budget is revision down from the estimate last year when we estimated 75 million at the time. still very costly and very large project, but also sig significant late less expensive than we thought last year. a couple other things we are trying to accomplish in the budget for the year ahead. we developed a new way to allocate overhead in the office which enables to shift cost to non general fund workordsers and user of the service that results in about a million dollars in general fund savingsism we reallocated that in other places to other priorities in the office. a host of complex acounding and reconciliation actiffinties in the office including the retirey health fund and erecen sillerations that need

to occur. pay roll and hr, we do plan to update the system to its currents version and also deploy self service features given the new tool we turned on a few years ego. we took over 99 percent of city employ aiz to paperless pay this last wreer and we'll work to continue to push out sevl service pay features, e learning and new training tools in the year ahead. lastly, the city services auditor function within the shop is tied to the city wide overall budget. 2/10 of one percent is [inaudible] the growth in the city budget is reflected in the resources of city services auditor funchgz that provides opportunities and capability to expand both the audit and technical assistance programs in the

year ahead. there is a very quick world wind tour of the budget. i thank the mayors office for their help and help during the budget cycle and want to thank the board of supervisors budget analyst for their work. we are not yet in agreement but look forward to coming to one in the week ahead >> thank you mr. rosenfield . supervisor yee >> thank you for the presentation and all the good work you always do. i'm having trouble figuring out the project you are talking about. the new system. to me it isn't a new function, maybe it is a new function, i don't get it. it seems it is a system to support the functions that you do. at the same time you are king in 2 years 20 new people to do

something that i don't understand. if this system is supposed to be replacing a system that is 30 years old i assume it is more efficient so i don't get why you need 20 more people to operate the system. maybe i don't understand the definition >> the cities financial system-this is a mainframe base system implemented in the urbly 1983's and last upgraded in 199 saevl. the vendor that provided the product no longer exists so it is no longer supported. that is effectively meant fl last decades or so we have frozen development work on the cities financial system so it serves a very narrow array of functional use in the city, just very basic accounting. modrb financial systems, the kind we are

looking at provide a array of different functions. in particular pure curement, inventory management, cost and accounting. what we have seen in the decades [inaudible] can't support those functions is the department have grown subsidiary systems and hooked into it. you have 5 or 6 departments that have a contract management system independent of the central one that will likely at least some of them will be assumed innernew system. it is a change we need to make t. is a change that will bring new functionality to the city. it is also true though that the newer systems are more complex and therefore more costly to maintain and operate. it is by virtue of old mainframe baste

systemerize stable but limited. with complexity comes new and staff intensive resources to support them. >> that is a partial answer to me, but one of the things you just said was there is functions that-you don't have the capacity-not you, fwhut system doesn't have the capacity other departments are setting up smaller systems-does it mean once you get this up and running they don't need their systems and that where there is a balance of savings. i don't understand why wree spending more money >> the newer financial system just like the newer human capital system we implement in the city they provide more functioniment for the government and better support our employees and departments to get the business done,

but they are more complex than the legacy systems we implemented 20 or 30 years ago so with the new functionality there is need to [inaudible] a helpful analogy is on the pay roll human benefit system we implemented just a couple years ago which was our last legacy replacement cystment. our pay roll system had limit atublt do modern things allowing paying employees electronly, look at w 2 on line, allowing self service and time and attendance entrance and ultimately do things like manage open enrollment on line or much more robust management reporting. those are examples of things we could doont in the old pay roll system that we now k. they provide great benefit tooz

the city as a whole when we turn on the new functionalitys but it comes with complexy which comes new staffing needs. >> thank you. >> any further questions? mr. rose, can you go to your report >> regarding item 6 on page 13 of the report we consider aprovel of that ordinance to a policy mat frr the board, however we do note in the 15, 16 budget included the revenue of a source of funds to balance the budget and similarly on item 7, we consider that a policy for the same reason. on the recommendations which is on page 14 of the report, recommended reduction to the proposed budget total 960, 677 in 15, 16. 629, 075, on

going [inaudible] these reductions still allow a increase of 8.2 million. [inaudible] which are on going. these reduction uzlow a increase of 99.7 million or [inaudible] departments budget and as mr. rosenfield stated we are working with the department and report back next week on the final recommendation. regarding the general city responsibility, our recommendations >> mr. rose, i believe [inaudible] why don't we take these items first >> i'm conclude then >> thank you very much. any questions from mrs. rose controllers office? at this time we'll open to public comment 6-9. if anyone has comment

>> controllers office. budget, planning, decisions, all from area of [inaudible] >> thank you very much. anyone else wish to commonant on 6-9? seeing none comment is closed. these items unlike before we'll continue to june 24 budget and #23i nance committee meeting next wednesday, so unless there are comment i would like taentertain a motion to approve items 6-9 and continue them to next wednesdays budget and finance committee meeting >> i would like tamake a motion to that effect >> motion by supervisor tang and second by supervisor mar without objection. thank you. why don't we do the

general city responsibility and after this we'll take our 30 minute lunch resess >> michele [inaudible] controllers office. i have a brief overview. now powerpoint slides. only remind you that general city responsibility, the department that contain the cost that belong to had general fund don't belong to a specific department. for example, in efiscal year 15, 16, the largest expenses in the budget are voter man date td baseline transfer including 37 omillion to the the mta 207 million of debt service, 70 million in deposit to reserve. about fifen 5mal miian for pay as you go portion of the retirey health care cost. 40 million for general fund portion of city wide audit,i t and system replacement cost as well as cities cost to wum

ply with minimum wage and inflation cost for cbo contractsers. also the budget includes employer and employee contribution tooz the retirey health care trust fund dh is a fund outside the general created to pay hemths care benefit. these total 32 million in fiscal year 18, and 50 million in fiscal year 16. happy to answer questions you have but like to note we are in agreement with budget analyst recommendation >> colleagues any questions? mr. rose can we go to yourt >> there is a [inaudible] 25 thousand are ongoing savings. [inaudible] one time savings and fiscal year 15, 16 of 25 thousand are ongoing savings. as i understand the department concurs with those recommendsations

>> thank you. if no other questions-i would normally say you don't have to be next week, but sure you will be here anyway so see you then. colleagues after this we'll have 14 departments to get through in the afternoon, so 1 o'clock sharp. at this time we'll go into recess. >> okay. good afternoon everybody welcome back from recess for our regularly our special meeting of budget and finance for monday, june 15, 2015 we're going to continue with items three and four with the departmental budget and up next our city attorney's office mr. herrera. >> thank you, chairman el camino real supervisor farrell and supervisor katie tang supervisor yee and supervisor

wiener thank you for the opportunity for letting me make the presentation he want to express in my gratitude in trying and sometimes contentious committee i you'd to call it the most thank also job in past years in a budget criticized that was stating the obvious but with improved combhifk conditions less objective our greater revenue is by greater obligations i know it comes with greater expectations so may not be as obvious but you have the toughest thank less job i want to discuss my expectations in the city attorney's office first, we're in discussion with the budget analyst and very, very optimistic about our reach

resolution this week and i'm very confident we will be back next week saying we've reached an agreement as your lawyer i assume you're aware of the legislation to provide you with council to review the contractors shutter bonds and other instruments and recommends supplements to pursue the litigation in favor of the taxpayers if you take that work and multiple it by the departments we serve as clients that's pretty much the job of the discovers city attorney's office we work to insure money for the city on many frongz for instance homeowners in the sfmta for the water main break

to avoid largely litigation as part of that we successfully secured a she means to of $11 million from private insures the fill policy limit to help the city and homeowners we work to insure immediate retaliate over one million dollars from a bag when an official yes, ma'am bewildered that amount we not only helped the board with origins and challenges we recently beat the national rifle association which requires guns to either be in they're owners possession or a locked probation elaboration lecture the union street supreme court ended their 6 year challenge in san francisco and it is safer because of is it we also won the injunction at

city college they gaejtd in illegal practices we secured a court order to protect city college and i wanted to thank you. the board of supervisors a litigation as we anxiously another u.s. supreme court one that could violate the the same-sex marriage san francisco could hope to win equality when justice comes it will reflect san francisco's leadership for mayor newsom's bold decision in 2004 to our office legal work over the decades that followed i could go on with a number accomplishments to fight for consumers and workers and renters to defend the integrity

i will cut it short. >> thank you for the opportunity to make my office budget presentation i'd like i'd like to say if you look at the numbers our budget for the next two years increases very very small more specifically as the budget analyst has made clear a proposed budget for n.y. 2015-2016 is only one percent more than our original fiscal year budget this past year and our fiscal year budget for 2016-2017 is approximately 2 percent more than the mayors proposed budget of 2015-2016 so with relatively small increases in budget we're called upon often to deal with a work load a responsibility we take very, very seriously and look forward to serving you over the course of