norman yee and i was in the office and came to give me an alert which i am sure he wants me to pass on to you. the city budget and finance committee is going to meet here on march 9 at ten in the morning and guess what? it's a hearing on senior services city-wide and they're going to have a bla, whatever that is, performance audit from july 2016 in light of the dignity fund. his suggestion to me was -- what he was saying to me he felt seniors should be there at that meeting. there should be seniors and people from -- some senior agencies. this is our budget, and finance committee, so i'm going to try to be there, but hey guys we need to get out and get seniors. they're talking about our money and what they're going to do at

the city budget. we need seniors there. that's the advice i am handing on to you and that's my report. >> thank you very much. >> could i clarify that the march 9 is a hearing before the budget committee of the board of supervisors and the department of aging is responding to an audit that was done by the bla as cathy said. the budget and legislative analyst for the board of supervisors and so the iewd itd was completed last year and supervisor yee is calling for it and we will have a response and he would like it to be a way to highlight services for seniors in san francisco, so at the same time it's a response to an audit i think he wants to make it as positive as possible and that's why he is asking people to come out for it. >> thank you.

>> can i ask a question? >> yeah,. >> you said it's july so it's about seven or eight months ago. you certainly have saw the report of the audit. what is the general tone of the audit, very generally? >> well, i think it has -- you know really i think the idea was to have the audit come out before the dignity fund to make sure that the department of aging is really ready to be able to responsibly allocate and then track the money for the dignity fund so it looks at some of the practices around that and has some suggestions and talks about things we're doing well and that's basically the nature of it and i think supervisor yee just wanted to make sure that we can highlight we're ready to spend this money that we have the processes in place. >> thank you. any other announcements? any public

comment? >> i just have one public comment, and in terms of the going to washington, d.c. i am just wondering if you could maybe one. commissioners who is well informed about the budget could go along, our vice president. think about that in your budget but i think it could be well represented in washington, d.c.. it would be helpful. >> yeah, absolutely and that's been a good opportunity in the past when we did that, right, for commissioners to go. let me look because this is different from the other meeting we went to. this is the policy briefing. have you gone to that before? because we can certainly look into it. it would be a good opportunity for one of the commissioners. >> thank you for volunteering. >> [inaudible] [off mic]

>> any additional public comment? hearing none motion to adjourn. >> adjourn. >> thank you. thank you very much.

>>[gavel] >> president moran. >> here. >> vice president kwon. >>here.>> commissioner caen. >> here. >>commissioner courtney >>here. >>and commissioner vietor is

excused from today's meeting we have a quorum. >>the 1st order of business is the approval of the january 24, 2017 meeting. all those in favor say, aye. opposed, nay. >>that motion has been passed. >>the puc will only go as far as the next generation of workers will take them. we ask that pc management work with the union in discussing vacancies and hiring plans in the workforce development and we hope that we can find a solution in this direr force.

>> we have had a chance to discuss this at the board and i think we've also discussed this in other aspects as well but this is likely to come down the pike but is there likely going to be collaboration with this agency and other departments as well. i'm enthusiastic about how far we have come. is just about prioritizing it making sure that we have the resources and the staff to do that work

but i am committed to your organization and i want you to know that we are continuing to have a dialogue and you will be a part of that moving forward. >>i appreciate that. >>thank you. >>thank you. and, the next card that i have is peter trackmeyer. welcome. >>good afternoon peter trackmeyer i want to thank staff for meeting with us on friday and also president moran for meeting with us we appreciate that. it was an interesting meeting.we didn't get into any facts and figures where we have analysis but we are looking forward to having a conversation with staff about that. we are looking at an 8

year defined drought and we understand that we will have better access to the model which will be a better understanding of a way to think about that. we also showed a very simple model to show we were on the right track and what we looked at was basically if we had the eight-year design drought starting next year or in 2040 and what would that look like under 40% on impaired flow from february to june. and, we used some of the assumptions from the sfpuc. there are some factors that could change this in the upcoming years including the drafting levels and how far they would go and the big one is what was required by the sfpuc which was 40% and also

water supply and of course any new water supply or conservation would be brought online. on the back there are model conclusions and the 1st was looking at 23 million gallons per day which was the use from 2010 to 2014 before we saw the drought in the last couple years. that would take some rebounding to get the products back up there but that is what we use and just a few interesting things if we have the 6 year drought record which was from 1987 to 2002, we would still have 2000 2500 acre-feet in storage which would keep us into the 1st year of the 76-77 addition and then we were to get into a deficit in year 8.

and the bottom one is the projected demand in 2040 which include san jose [timer dings] and this word allow us to have this in the record for the storage.we hope that we can discuss this with you on the 8th. we hope to be able discuss this with you and give you more information. >>thank you. i think the meeting that yet was productive. it allowed me to feel like i was a on a water

commission again and the big thing is looking at this and seeing if this confirms or denies there are offers that staff has made are there scenarios in our model to test these ideas that confirmed these other models and we will be glad to do that. that is the proceedings we will have on the next meeting's agenda and the response to the prior model that mr. dregmeyer gave us and if this could progressed to the point of that meeting that would be great in fact, staff has prepared very hard to prepare comments for the state board and a supplemental environmental document which at the moment, the deadline for that is march 17 which has put

a lot of pressure on staff to get the comments together so it has to take priority on staff time. but, thank you for your comments and i think that the meeting was positive and i hope to build on that. any other public comments? seeing none,communications. commissioners, any comments, questions, on the communication script provided? i do have a request from ms. sankula to comment on i eat 5 ee at which is the bay division pipelines 1 and 2 decommissioning. >>good afternoon commissioners.

sankula, i look forward the project that will be done on the bay and i asked that the commission remove part of that project to remove the part for wsip and i think it would be a particular piece that we want to make sure that we do appropriately think you. >>thank you. i noticed that as well and it is a little disheartening to notice the price of the 6 escalating as dramatically as it did in one thing that i would like to ask staff is as we get into this next stage of looking at the

revised landscape that were looking at that we also take a another serious look at repurposing that pipeline.that's one of the things that we have looked at as to whether or not that was they appropriate conduit for the water transmission. who knows? at how to use that and repurpose it in a way to reduce the financial burden. commissioners, any comments? any other commission business? >>i would just like to comment on one thing. obviously, it is very well known about orville and the problem there and so, i

would like to ask our own infrastructure if we could comment on that and also for wholesale customers comment on that. if there is any problems or any heads up that we should be looking at? >>so we can give you a-- as part of this may be dan, you can comment on the structures that we have. so, maybe we well get back to you. >>it's not an agenda is item so i think that the concern certainly is that that flag is waving.

>> i just think this being a public entity it is important to bring this forward at this meeting or at a subsequent meeting. >>well, it is every dam owner or operator in the state is number 1, thankful that it is not there dam and also to look to make sure that their response plans are up to snuff and i think that we need a report on that and that will probably take more than a few minutes of thought and then we can bring that back to you. >>any other commission business seeing none? tech report of the general manager.

>>good morning commissioners the 1st item is the drought update and he attended the meeting so maybe he can give his thoughts on that. >>steve ritchie, general manager, we will share information this week with all of our participants if we could have a good discussion about that. if i can have the slides please. this is our what used to be called drought update but now we will call it the release update. so this is our reservoir storage areas and we

have been releasing 150 css through calaveras and that we are looking at bumping that up to an even higher levels so we can bring that level in that reservoir down. for hetch hetchy week we have backed off, of our 1st resources a little bit and you can see that the reservoirs most of the blue bars are at the top. you can see that don pedro is 99% full right now and they are releasing 999 1000 ft.2 per 2nd end and they are not able to withstand that's we've cut our resources to hetch hetchy so

that they are able to withstand this. and we are not in the position where we want to be in. the only real spillway is [inaudible] and i'm not sure of its ability to carry water at this time. as far as precipitation we added the blue line which was 1993 and we have currently about hundred and 30% average for this entire year that's what we got so far so we've had a lot of water.

up in snowpack. it is a similar picture. the snowpack is way up there. the snowpack line is an accumulation of data from the remote snowflake sources and that is what that little red snowflake is there to show how we match up with the snow up on the hill. so word 150% with the snowpack up on the hill and again we will see that later this week and next week. our deliveries are continuing to decline for people are continuing to conserve and doing a good job. it could stop raining tomorrow and if it did stop raining tomorrow we

would not have a problem with that. we will be calling for a 10% voluntary reduction since were getting again about 10% already. one thing to note is that we have been working on diversifying our supplies a lot with groundwater and this slide shows a couple of community ads that are going up this week and diversifying our supplies and moving the groundwater and to is always better than one and this is important so we are continuing to move in that direction as well.i'd be happy to answer any questions. >>any questions from commissioners? seeing none. any questions from the public? seeing none. next item please. >>that next item would be item

7b, cleanpowersf update. >>good afternoon commissioners. we are up from 2.5 we finished this update in the middle of december and we are up about 25%. we are at a total of super green customers just over the 2000 mark 2111 111 and customers continue to sign up for customer enrollments and we have 600 customers that are queued to be signed up now. we are preparing to enroll our

customers we have been saying spring 2017 at this point we are targeting may. we expect that enrollment to be 2000 customers approximately. the next order of business is we had a meeting better ccas. they are expanding and they are continuing to expand and that expansion is a concern for them and we are really concerned about reliability in the market and how the cca

expansion would affect their regulatory oversight and the state's efforts for achieving their environmental goals and meeting their public purpose program goals. that hearing was held on february 1. we participated. it was a very well attended hearing they held it in their large capacity room. they had 800 participants signed on to their webinar for the afternoon. this was an all day event and it was packed the whole time. and so, there is definitely a lot of enthusiasm and interest demonstrated there. the 2 newest commissioners

commissioner wisehaven and are commissioner dues men so was nice to see them in their new designated roles and also there was some new ccasthat came and spoke during the comment period. we were pleased to hear senators weiner. in the room. and they invited utilities including ourselves and other utility organizations that were invited by the cpuc to present

in a panel setting of 3 panels. the cpuc is still trying to figure out how to handle the growthof ccas throughout the state and what is their regulatory responsibilities. there seems to be a worry about decentralization and their loss of the ability to control what is happening. the iru's or the investors one utilities did express some concern that the ccas did not collect on these roles and given the authority that the planning on power supply a is lies on the local jurisdiction. and, we really

need to stay engaged and that is what we are doing and have active dialogue with the cca leadership. and the next thing is the awareness and action of meeting local needs through their building codes and zoning or their relationships through disadvantaged communities in their localities.so a recognition where that is an area where we as a city are in a better position as an investor utilities to achieve those goals. so i just wanted to give you those takeaways there and we will have an opportunity to file comments and we will do that. we will have an opportunity on february

23 to hear that so we will do that and hear from some of the other companies involved with the ccas and we would like to hear their results. that is all on a webcast and i'd be happy to share with you the information for that webcast if you are interested. and with that that concludes my presentation i would be happy to take any questions that you may have. >>commissioners any questions? seeing none. any questions from the public? seeing none, mr. cle k next item please. >>the next item of business is

iitem 7c; the water enterprise capital improvement program quarterly report. >> i just want to highlight some significant aspects of the 10 year cup on the peninsula pipeline seismic update project phase 3 and this was established under wsip and it's now being completed under water cip. the san francisco water placement program continues to be wrapping up and in fact were on target for about 13 miles of replacement in the city of san francisco.the sunol long-term

improvement project is on its way and the watershed portion is on hold until we can obtain funds for that portion. the peninsula pipe plan seismic upgrade project is in phase 3 and it's scheduled for completion in fall 2017 we are in the pilot program phase and it scheduled for later this year and we have 2 pipelines that are under way that dale city recycled water expansion product and this a this is phase 3 of a peninsula pipeline

seismic upgrade. this is near completion. the san francisco water pipeline replacementproject is disruptive in the city we try to coordinate this with different agencies when a street needs to be taken up it does delay some products and we take them up expeditiously [inaudible] or allow them to remove themselves prior to the main construction work. and then, this is the pilot plant at the daly city recycled water plant expansion and this is irrigation water for daly city

to be used for other public purposes. that continues the water enterprise capital improvement program quarterly report. i would be happy to answer any questions before i move on to the wsip? >>why do we have a purple tank? thank you. steve ritchie reminded me that purple water is for recyclable water and we want people to know that's not potable water. >>i knew there was a reason. >>is not the water of choice. >>so moving right into the wsip quarterly update we are about 94% complete with the program

but as i discussed with nicole sancora at bosca we are continuing to work diligently 2.the eyes and cross the tees on the project but it is still ongoing. and we continue to have a is accomplishments here and i won't read them all out to you by it we are continuing to have some activity and we are closing out some major projects and you know that the projects remaining one terms of construction would be the calaveras dam replacement. we

are looking down at the left side of the valium were standing near the bottom of the valley and you will see the spillway at the top of the photo and it's going from left to right and that is the right spillway wall that you see and down the end of the valley i would like to point out that we have started dm construction and that was last fall when it was still dry and you see the core being placed there in the middle of the photo and that is exciting because were coming out of the ground and we are not just digging a hole. we are continuing the excavation and we are finishing the routing program and we are in the process of construction. we've had fairly set again impacts as a result of the recent storms impact instruction and you can see we have to do quite a bit of repair on this road to be ready

to resume dam construction in march. this video shows releases that were made on the level outlet and after the large storms that we had back to back in january. as steve mentioned this would be 770 ft.2 or more and these advancements will be continuing to be made from february and beyond in order to have that reservoir down to continue the construction project. some other things that we have with the acdd we have the high creek flows and sediment

buildup over intake structure we will continue to work on repairs that need to be done. andcontinuing on to the regional groundwater storage and recovery of course we have 2 sites that have not yet been cited and we continue to work to locate viable sites in the san bernardino area and that is one of the challenges of the program to meet those levels of service apply in there. >>what is the challenge with that? is that one of geology or landowners or? >>the challenge is finding properties in the san bernardino area that are willing to sell and existing wells within san bernardino. >>yeah.

>>and then of course we of the buyer regional habitat restoration programs ongoing. this shows a fountain thistle site after seeding this is a rare species that is very important for us to look at. and here is one up close. that is the conclusion of my presentation will be happy to take any questions. >>commissioners any questions? seeing none,and then,any public comment on and mr. wade present we seeing none,mr. clerk, next

item please. >>next item is item 7 e; the sewer system improvement program update for the southeast treatment plant project. 1st i want to discuss the ssip's levels of service goals

and really what we want to focus on is the first one and that is to provide a compliant, reliable, resilient, and flexible system that can respond to catastrophic events. everything is quite old so really the big focus for the phase 1 project is aging infrastructure and seismic reliability and so, there is an urgency to getting these projects done. and, i know that you are very familiar with the budget side of things and these are all of our phase 1, phase 2, and phase 3 rolled up together and i will be highlighting the self these projects which are the top three under treatments as well as the land reuse. i also want to point out the storm water management projects under collection systems and they include the collection systems and advanced rainfall.

i would like to discuss the collection system upgrades, and here it with my eyes this is difficult to read but trust me the blue projects are the flooding projects and the green projects are the projects were doing so it works is pretty much going to touch every corner of the city. one thing that we will be bringing back to you in june is the collection system plan. this was formally known as the urban watershed assessment. this will roll all of the gray and the greenpump and problematic on stages that are flooding and this will lay out the details of our capital program and this detail will be marvelous to have an by time we get to our baselining next year you will be well familiar with this. so, look for this in

june. now, andmoving on to the southeast. these are an update of the projects that have been completed and i know that your commission has been a wonderful advocate of moving these project's forward. more recently we had the biosolids processes m the estimate on

this is $2.9 million. and, to show you some of the sep challenges we have residents out there and we businesses and sidestreets m as we are working on this we are really seeing tommy has to really keep construction moving. this project will be very different than dan's where

it ithis is going to be really open space. two different projects are highlighted here the pink would be our disinfection upgrades and the green will be the headworks facility. the first is headworks and again that's in green. moving north that is a pump station

that is the pump station you see on highway 80 if you look down the roost plant is right down the hill from the facility and then we have to consider the biosolids facility now we have to move this fine a grit or sand and it has to move through these digesters and everything we've got is 30 years old and operating and again moving that grit and improving seismic accountability.

this it can go from him this to find screens and this is a new design and investors are thinking how you work this in the future and how we can operate this and it's a pretty impressive facility. if we look at the schedule we have just recently gotten our final mitigated back in december and last year we were given authority to move forward and select our cmdc they are on board and they are working tightly with our designers which are our guerrilla staff

and this is really nice to have them working with us. the cpuc is working with her trade package and qualifications and do not worry pres. moran we will sit down with you to work on these trade packagesshortly and we will have a meeting. we are looking forward to working with you on the architecture and concepts. we will be returning with the final design. there is an artist that was hired through the rfp process and the corner which is at evans were looking

at that flat corner there and this is fabulous because if you are driving by the plant, this is something that will draw you in and it will look good. now, if you go by the plant if you recall we have our giant green pipes and a really sad corner and this is really a hallmark. but, right now this is just shown as a pattern and we will have more information on that as we move forward. our largest project is 2.1 billion and that is our bio falls project. are bio files project again is blue and our energy recovery is across the street. and, i do want to highlight that we will have a very critical item today that will be presented by dgm carlin and that will help us to advance our plan to the central shops

and take advantage of those central shops site. and again our objective again for our bio slide project infrastructure is again we have lost roofs and we want to make sure that we maintain the regulatory compliance in these critical processes is the most onerous process so we want to make sure that we take these roots. we will be reducing the number of digesters, yes reducing the number of digesters and of course, moving up the level of treatment to class a which is a significant thing and again a eliminating odors and keeping them met within that the fence line.

and>>and our biosolids project schedule we do have an environmental review scheduled for march 2018 and a draft eir in may 2017 and the final eir in march 2018. the design for the project started in january 2016 and is scheduled to finish in august 2018. as far as the construction also being august 2018. similar to

headworks we are working with civic design review on this facility as well and this is a rendering which shows the biosolids facility just from the south side thisis an advantage because these can be

tourable. looking at the colors how does this work together and looking at colors and sustainable practices both in lighting and green infrastructure and other facilities. and, incorporating public art into our facility. this is the schedule for our construction. things will be very very busy for our wastewater projects team they will operate a very, very old plan while we continue to do our construction. i just want to talk to you about the upcoming items that because we will be here a lot. the first one will be the jurisdiction of 1800 jerrold

which is the central shops. and also what we will have headworks that we are coming back to talk to you about on march 14 about approve all of the mitigated negative declaration and project construction we also will have a presentation on green infrastructure programs opportunities stephanie is back from maternity leave so she will be able to shed some light on that. we will be

looking at the approval of the biosolids design contract modification on march 28 and the flood resilience workshop will be held then as well. we are scooping out an appropriate cm services contract which is similar to what we did to make sure all the teams are cooperating and working well together. needless to say, a lot of we have many members on our team today it's one from a very small team to having hundreds of people that are working together to get this program to you and these are very key approvals and were looking forward to working with you to move the program forward. that

concludes our informational presentation. >>okay thank you. commissioners any questions or comments? public comments? >>i've a question. >>oh, sorry. >>with the biosolids project how far are we behind? >>part of our goal is to relocate site uses. the central shop has to be relocated for us to be a will to get that property. that really became something to fell under the critical count so we could get site control. i would say over the course of that we probably lost a year. a little more than a year. >>but, we've known about that for a very, very, very long time so-- you know i am going

to be impossible you know him probably going to be dead. you know, i am going to be tough. you know, we've known about this problem two years or three years perhaps. >>let me just go back in time. for a while, we thought that we own the property of central shops and i was negotiating hard with the ceo and we found that we were t boning the land and our city attorney lost the fight with their city attorney and in either case, we had to move them. because, they did not have the means to do so.and

so, the challenge was to try to find property that we can actually move them to. and as karen indicated, that was really the and in fact, we found property outside of san francisco that we thought would be a good option and we had to work with the fire department and everyone further them to agree to bring their vehicles outside of san francisco. fortunately or unfortunately, that project became not a viable option. we finally found some property adjacent that became available. and, we've been meeting weekly to work on the structure and the design of the land and also we

bought the land with people on them slid work with the people that occupy those spaces and negotiate them leaving so we can meet our current schedule. so, it has been really a difficult situation but i can say now that i think that we are on track and we are working closely with our deputy city attorney and she can attest to how challenging it has been trying to relocate central shops. but, i do feel that we are on a path forward. one of the other things that help us do was really hone in on the technology that we plan on using. i think that our contract theme process is well vetted and in fact, we had a pause for a minute with the--

with the contracting. yes so, anyway, i truly understand your frustration and i know that not only you are frustrated but the community out there is frustrated and-- but i think were hurtful the at a point where that major milestone will hopefully be behind us. >>well, i think that part of the project is in carnation with the memories of the community in a couple of the commissioners in general it goes back decades. so, were talking about 20 years of frustration of not being able to solve a problem that has real impact a lot of people. so, that is what i think. that's what you can hear for me and i think it certainly what you will hear from commissioner caen. >>i just want to say that we will break ground and be almost

finished by time-- >>dead? >>[laughing] >>no, you're going to live a long time. >>as our president mentioned this is been going on forever and this is been going on for a long time and this is the reason why nothing happens. i want to reassure everybody that i am going to be the one that stays one back about this. it has to be done. >>please do. >>summer 2018 we will start construction. in august. >>should we put that on our calendar? >>but that on your calendar.

>>karen,one last thing, when is the contract coming up? >>do you mean for the ccsu? >>yeah. in april 202 five we will be back to the commission. and >>we went back we had some bidders and the firm that was out is now back in it so there's a lot of competingand

we are trying to come to a decision with that >>any other comments? >>would you like to address anything else? let the record show. any public comment? okay seeing none, mr. kelly is that everything? >>that concludes my report. >>okay, thank you. moving on to the consent calendar. >>item 8 is the consent calendar all matters listed here under the consent calendar are considered to be routine by the san francisco public utilities commission and will be acted upon by a single vote of the commission. there will be no separate discussion of these items unless a member of the commission or the public so

requests, in which event the matter will be removed from the calendar and considered as a separate item. >>i would like to move item d any others? >>okay i move a motion to move the consent calendar with the exceptions of items a, c, and d do i have a second? >>i have a motion and a second please vote. all those in favor say, aye. opposed, nay. >>k the motion passes. >>item abi wanted to move

because i wanted a little bit more information about this. >>this modification would allow those additional repairs. >>okay, thank you. obviously, it's a critical facility. it's very high on our list to make sure that we do as much as we can with it and make sure that our construction window is good and i didn't want that to go by unnoticed. >>thank you. >>yes, miss sankula. >> nicole sankula bosco ceo. thank you for moving item 8b. i did want to mention it but i didn't want to upset the consent calendar. i am i just want to mention that bob did a great job getting the approval

on this and they have really been doing a great job and i appreciate that. thank you. >>thank you. >>and it is pretty spectacular being inside those tunnels and it gives you a sense of the size of the facilities that we are dealing with. also the size of how the force of power might have an it is nice to see inside these facilities and how big these chronicles actually are. may i have a motion? do i have a second ? i have a motion and a

second. all those in favor say, aye. opposed, nay. the consent calendar is approved. moving on to the next item. >>item 9 ispublic hearing: discussion and possible action to approve the project schedule of the january 13, 2017 revised water system improvement program and direct staff to send a notice of change report to the california joint legislative audit committee, the california department of public health and the california seismic safety commission in compliance with california assembly bills 1823 and 2437. you might be asking why we need to revise the wsip again what we are requesting is a schedule extension of 15 months for three projects including the tunnelfor the pipeline in three and four and

the program each of these is being requestedto be extended from december of this year to march of next year. and the reason for new irvington tunnel which is been in service since 2015 is that we are negotiating to change the order with the contract.the contractor is now requesting that we have a dispute resolution board hearing on the excessive hard rock encountered during the tunnel excavation as well as repairs and remedial backfill grouting for the steel tunnel liner. so we need the

additional time to complete that. in addition the seismic upgrade of the bdpl numbers three and four these are project constructed new facilities and improvements that are been in service sense june 20, 2014. the proposed schedule revision allows time to review, negotiate and settle outgoing changes and get these done in an equitable manner. and then finally, the security system upgrades this project provide security system upgrades to the wsip projects after each project is substantially upgraded. we need some time to complete those projects so their request from the commission would be to

improve the schedule proposed january 2017 revised wsip. >>nicole sankula with bosca would like to address this matter. you will notice our letter has two recommendations that mr. wade had mentioned earlier. and any other project you would be at the end. you would be at the end of the road and have them completed but

these remaining projects this last 8% being significant. calaveras being the biggest one certainly. when we look at at bringing these projects and successfully am looking at that scope i urge her stay after refocus on that last 10%. in some senses you don't have that flexibility when we were 20% complete and able to move things around and if we are dealing with that last piece of it and i want to see the puc bring that in on time and on budget and i want to see recommendations around that and make sure the read review schedules and mitigate risks where we can identify areas that we might have issues and minimize the potential impact and schedules of these things and look at the budget and make sure that what we have remaining and what we know we have remaining on the work do

we know we have sufficient budget and what are the issues or the risk for this budget. that is something i know your staff does all the time but with this last piece and this last step i think it's a critical time to do that. and that concludes i'll be happy to answer any questions. >>mr. kelly. >>we are very happy to work with you and we are very happy to work with you and get this behind us as soon as possible. so let us know what ever information you need. >>and my understanding is, and

don't let me but words in your mouth but to take some time to use those processes just to do a full assessment of where we are on scope and budget and time. >>absolutely. and when we think about what we know we have a full risk assessment register. absolutely. but, what more do we have to do to deal with those if there's anything else? and what does that mean in terms of that. you are now bringing this project in and you're getting to that point. and speaking about, you know, what it takes to do that and i think that with the commission you are certainly aware that. i mean, there's quarterly reports and there is no doubt. but to me, it's different parts of thinking about these last projects interestingly enough which are thesewater supply

projects and pipe projects and we know they're critical because of the institutional issues around them and everything that need that last increment of focus. i want to make sure that were all aware of it while we go through it and while i am committed to your staff to make sure this happens by it i want you to understand we need that additional time to push through to the end. >>okay, thank you.i guess i need a motion one item 9. >>so moved. >>second. >>and a second. >>any additional comments or questions? all those in favor say, aye. opposed, nay>> [chorus of ayes] >>item 9 is approved. item number 10. item 10 is approval of a form of credit facility

agreement with thesumitomo mitsui banking corporation (sumitomo) in the principal amount not to exceed $150,000,000 (exclusive of 270 days interest) for the wastewater commercial paper program; and (2) approve a form of dealer agreement with citigroup global markets, morgan stanley & co., and u.s. bancorp for the wastewater cp program that will extend their current term. >>good afternoon eric sandler

with the wastewater cp program. as you will see the current status the wastewater commercial paper program is a 500 million dollar program and it is [inaudible] we issued it to we issued it to 20 banks and we received many responses and you can see that citigroup, morgan stanley, and u.s. bancorp are the dealers working within this process these are for your terms with 31 optional extensions seven years total these are four-year terms that align with the

sumitomo mitsui banking corporation loc. you will see before you that we have that your irrevocable agreement with the letter of credit with the sumitomo mitsui and you will see there is a fee agreement and deal agreements with morgan

stanley and u.s. bancorp. and then number six you will see there is an offering memorandum and we have a disclosure contract it's a disclosure with the investor and this is to understand this disclosure. in the case of commercial paper essentially the bank facility that's offering this you see the offering memorandum is fairly short but it really describes the bank and the equity agreements that supports these offering memorandum so you'll notice this paper little different than what it does for regular deals. in summary, the requested action is to improve the form of credit and dealer agreements and related cp documents for

wastewater cp dealer programs. thank you. >>thank you. any questions? dealer programs. thank you. >>thank you. any questions? any public comment? seeing none, can i have a motion? >>so moved. >>second. >>it has been moved and seconded. all those in favor say, aye. opposed, nay the item caries. item number 11 please. >>item number 11 is toauthorize the general manager to enter into a first amendment to the memorandum of understanding with the general services agency (gsa)'s office of contract administration, of the city and county of san francisco, and the gsa's real estate division, revising the

terms and conditions of the jurisdictional transfer of the property at 1800 jerrold in san francisco to the sfpuc, including the sfpuc's payment of up to $82,278,429 to pay for site acquisition and construction costs for the replacement facilities for central shops; and to seek approval of an appropriation for an additional $8,578,429 subject to the mayor and the board of supervisors approval. >>thank you. mr. carlin. >>thank you mr. carlin the deputy general manager. >>yes, i just want to make it clear that we are on schedule, based on the project schedule and it is vital that we move this forward and move this item quickly and get it before the board of supervisors as soon as possible. >>okay, thank you. commissioners, any questions?any public comment? may we have a motion? >>i think it's appropriate that i move this. >>i would agree. >>second. and seconded. all those in favor say, aye.

opposed, nay >> >> [chorus of ayes] >>and that critical path item passes. >>and closed session. can you please call the items for closed session today? >>item 14 is a conference with legal counsel pursuant to california government code section 54956.9 and san francisco and items 15 through 19 will not be heard in close session today. >>can i have a motion to approve the subjects of closed session today? >>all those in favor say,

>>thank you. we are back in open session. in close session the commissioners approved item number 14.all those in favor of not disclosing items talked about in close session? >>so moved >>second >>this item is moot. >>are there any further items from the commissioners? >>happy valentine's day >>we will in turn in the spirit of the day. >>[gavel] light for our city an

streets illuminating our ideas and values starting in 2016 the san francisco public utilities commission is xhoefl that light with new led with the did i audits for better light for streets and pedestrian and they're even better for this vitally lasting longer and consuming up to 50 percent less energy upgrading takes thirty minutes remove the old street light and

repeat 18 thousand 5 hundred times while our street lights will be improving the clean energy will remain the same every san francisco street light is powder by 100 percent godfathers hetch hetchy power in one simple word serious as day turns all right good morning, everyone, this meeting will come to order, this is the regular meeting of the budget and finance committee i'm comen chair of this committee and to my left is supervisor katie tang and norman yee will be joining us shortly and our clerk is miss

linda wong and recognize our friends at sfgtv who are assisting us with this broadcast this morning. madam clerk, do we have any announcements? >> yes, silence all cell phones and electronic devices and completed speaker phones and documents to be included as part of the file should be submitted to the clerk, items acted upon will appear on the board of supervisor's agenda, unless otherwise stated. >> we will not be having a board of supervisor's meeting next tuesday do you to the holiday. >> madam clerk, item one? >> item one,resolution approving and authorizing the execution of a purchase and sale agreement with the city of pleasanton ("pleasanton"), for the conveyance by the city and county of san francisco, acting through the san francisco public utilities commission (sfpuc), to the city of pleasanton, consisting of approximately 3.18 acres of real property located at 401 and 403 old bernal avenue, pleasanton, california for $4,200,000; adopting findings under the california environmental quality act; adopting findings that the conveyance is consistent with the general plan, and the eight

priority policies of planning code, section 101.1; and authorizing the director of property and/or the sfpuc's general manager to execute documents, make certain modifications, and take certain actions in furtherance of this resolution >> we have got russell from the sftpuc to present on this item. good morning. >> good morning, supervisor and thank you for the opportunity to appear. so the puc is selling some under utilized property in order to offset costs for our capitol improvement program. we have been working for almost a year with the city's real estate services division to issue public notices and market, and solicit bids for our under utilized properties. we accepted an offer for one property that has two addresses, 401, and 403, old brunell avenue. and then 3 residential sized lots at helen drive. and first we will show you a picture of the pleasant on property, this is a remnant of a very large parcel that we sold many years ago. zoned public and industrial. we acquired the property when the city as a whole acquired the assets and properties from the

spring valley border company in 1930. this property was used for ground water operations until 1949. and in or december 13th, 2006, our commission declared the property surplus to our utility needs. and in attempting to sell the property, we worked again with city real estate which issued a request to proposal foz commercial real estate brokerrage, and city real estate selected caulers because it complied and it had the lower rate of 2.75 percent, the budget analyst report had a little discrepancy. beginning in on february 25, of 2016, we complied with the california surplus property statute and the ordinance by issuing notices to all public agencies and non-profit housing

groups that required notice. we received no letters of interest from any housing sponsors or public entities. this conveyance conforms with the city's general plan. on november 16th, the planning department found the sale of the property consistent with the eight priority policies of the planning code. our bureau of environmental management determined that the sale of the property is not a project under sequa. in may of last year, an amazer valued the of 8.9 million, another appraiser reviewed and confirmed that the original valuation was valid. and during our bidding process, we accepted the highest responsible bid of 4.2 million dollars, that was from the city of pleasant on.

soliciting these bids, they marketed the property for 25 weeks. we due to the extensive marketing period and public noticing period, we felt confident that the two week call for offers was sufficient, because we knew who the bitteders bidders would likely bidders would be, they received, three bids, on november 7th, 2016, we notified the city that it was the highest bidder and selected that bid. >> the city council has already approved this purchase and sale agreement. the revenue again from this sale will be used to support our

capitol programs. and not only in gaining revenue, we will save over 5,000 dollars a year in property taxes and maintenance costs. >> do you have any questions that i may ask? >> thank you. >> i don't see any questions just yet. >> okay. >> so at this point i want to turn to the budget and legislative analyst, mr. harvy rose, good to see you back in one piece. thank you, madam chair, members of the committee. and on page 5 of our report, we note that the net proceeds to the sfpuc from the sale of the subject property are 4 million 95,000 and that is shown in table two on page 5. we also note that the sfpuc pays both property taxes and maintenance costs on the subject property resulting in the savings of the puc. of approximately 5184 dollars per year after the sale of the property.

we do recommend that you approved this legislation. >> well, it you very much for the presentation. >> colleagues do you have any questions for the bla? all right, thank you puc we are going to go to public comment at this time. >> thank you. >> ladies and gentlemen, as public comment you will have two minutes, you will hear a soft chime indicating 30 second remainder, anyone on item one? please do so. seeing none, public comment closed. >> i will make a motion to send fourth the positive recommendation to the full board. >> thank you and that passes would ut objection, thank you. >> next item, please? >> item two,resolution approving and authorizing the execution of a purchase and sale agreement with pradeep gandhi and gabriel gonzalez (together, "buyer") or buyer's nominee, for the conveyance by the city and county of san francisco, acting through the san francisco public utilities commission (sfpuc), to buyer of three parcels, consisting of approximately 15,341 square feet of real property located between helen drive and dexter place, millbrae, california for $2,340,000; adopting findings under the california environmental quality act; adopting findings that the conveyance is consistent with the general plan, and the eight priority policies of planning code, section 101.1; and

authorizing the director of property and/or the sfpuc's general manager to execute documents, make certain modifications, and take certain actions in furtherance of this resoluti resolution. >> all right miss russell you are back? >> thank you very much. so, these properties are three residential sized lots between helen drive and dexter place and they are each approximately, $5,000 per lot and zoned low density res denial and, we acquired it for a water enfra structure project but that project never happened. on december 13th, 2016, our commission declared the property surplus to our utility needs. simply with the property, we worked with the city real estate to issue the brokerage services and city real estate selected culers due to the bid terms and the low commission rate of 2.75 percent. the again, it is with the city real estate assistance, we complied with the surplus property and the statute for california and the property ordinance, we issued notices to all required entities and housing sponsors and received no

letters of interest. this on november 6th, 201 # shths our planning department found the sale of these lots consistent with the policies of the planning code. simply, this determined that the sale of the property is not a project under sequa in june of last year, an mai appraiser valued the lots together at 2 million 40,000 on january, fifth, and another appraiser reviewed and confirmed the valuation, with he have two bidders, mr. gandi and gon sal ez who submitted the highest bid at 2.3 million for all three lots this is is over the appraised amount.

offered for weeks and we received they were the highest bidder bidders... this is a very clean sale, and after the payment of the commission and mr. ganda and mr. gon sal ez have already signed the purse and sale agreement. the funds from this sale will be used to offset our capitol projects. do you have any questions? no. >> i will turn to the bla. any comments? you? >> yes, madam chair and members of the committee, on page 11 of our report, we show that the net proceeds to the sfpuc from the sale of the subject property are 2 million, 281,000 v,500, that

is shown on table two on page eleven and again on this property, they pay both property tax and maintenance costs resulting in the savings of the puc of approximately, 2320, per year as a result of the property sale, again we recommend that we approve this resolution. >> thank you very much with the recommendation. colleagues, seeing that there is no other comments from you, let's go to public comment. public comment on item two is open. >> okay, pum public chent is closed. >> there a motion? >> make a motion to pass this out of committee with a positive recommendation to the full board. >> without objection. it passes thank you. >> thank you very much, you are welcome. item three, please? item three,hearing on the controller's six-month budget status report for fy2016-2017; and requesting the controller's office, and the mayor's budget office to report. >> okay, colleagues i called for

this hearing to provide the controller an opportunity to present our city's 6 month budget status report. a lot has happened in the last few months, and i am anxious to hear what is going on. i believe that it is important for this body and for our entire full board to have a full picture and understanding as to where we are as a city. financially. and in particular, paying attention to our fiscal health. the report provides a picture of our current expenditure and revenue status as well as projections, for the public's edification, this information is he critical to this committee's decision making process to help us make fiscally responsible choices. with that i would like to bring up controller mr. ben rosenfield the floor is yours, thank you. >> thank you, madam chair, and members of the committee, ben, city controller, as you indicated in your opening remarks, the 6 month status report is one of the quarterly status reports that we provide to the mayor and the board and

the public regarding how the city is doing in the current fiscal year we are talking about 16, 17, budget and it has implications for next year that i will touch on briefly. >> okay. >> at a high level in the general fund, we are projecting as of the 6 month mark just under a 300 million dollar ending balance in the current year. that is about a 72 million improvement from the assumptions contained in the five year financial forecast that our office, the mayor's budget office and your legislative budget and analysts prepared in late november and published in early december. and about 54 million better than the assumptions that were contained in the mayor's rebalancing plan which identified the additional revenues and so it is about 54 million better than suspected than in the current year. >> the city's typical budget practice has been to take ending

balances in the current year and then use that good news to help close the budget deficits in the i couldn'ters ahead. and if that is the choice that the mayor and the board make, that 54 million will reduce the projected shortfall over the next two years from about 402 million dollars, which was our last forecast, to about 348 million. there is a lot of interesting news in the report this year. generally speaking and i will touch on some of this, this improvement is really being driven by strength in our property related taxes. property tax and transfer tax. and by net savings in our health and human service departments. significantly, transfer tax returns in the current year are driving a stabilization reserve deputy in the current year and so our reserves are growing and we project to end the current year with the reserves that total about 8 percent of the general revenue, and so that is

an improvement but still below the target which is ten percent. >> so i should say that i have copies of the report here to my right, which has a lot more detail and i will touch on here today and it is available on the website as well for the folks that are interested in it but at a high level this chart is showing you most of the major general fund revenue and how they are performing verses the adopted budget and you can see unlike the last several years and really almost five years now, where we have seen pretty consistent improvement verses budget across all of our taxes here we have got some taxes performing better than budget and others performing worse, and like i indicated earlier, it is really the taxes that are driven by the property values and property activity here in the city are performing better than budget, generally speaking, those that are capturing consumption activity in the city, those are flattening and in some cases actually declining

verses the prior year, and so we have the real strength in property tax and in particular, property transfer tax, and you can see on this chart in the current year verses the adopted budget, but we have weakness in sales tax, and that is driven by the failure of the sales tax that was assumed in the budget. but we also see weakness in a couple of other revenues, hotel tax, interestingly, rather than just plateauing in the current year is actually declining verses the prior year for the first six months and that is a trend that we are going to be watching parking taxes also lower than budget, and lower than the prior year and we have weakness in a couple of other major taxes as well. the net news here is good about 91 million better than budgeted. >> thank you. >> to talk briefly about transfer tax we talked about before, they are easily the most volatile revenue in the general fund, it is the hardest for us

to project, given that volatility. this is showing you a history back for about the last ten years. and you can see just how quickly it rises and falls. we lost 100 million in transfer tax in just an 18-month period between 06, 07 in the trough of 08, 09, and realized 48 million in transfer tax, that entire year. and then we have seen a remarkable up swing and this is really driven by large volume transactions here in the city. >> excuse me ben? >> we have got supervisor yee that has a question for you on the slide. >> of course. >> i just have a question and in regards to the projection for the transfer tax. this is for the first six months. >> correct. >> and i guess as you look into the future, are we taking into

consideration the luxury transfer tax also? >> yes. >> go ahead. >> as you know and for members of the public the voters did approve an increase in the transfer tax for properties of more than $25 million. in value that went into effect on january first of this year. we have assumed an estimate that we consistent with what we have talked about before is 18 million in transfer tax, resulting from that in these projections. it certainly is something that we are going to be watching over the last six months of the year. >> the first six months of this year were tra order for transfer tax, in particular the month of december. in december alone, we generated about 72 million dollars in transfer tax in san francisco. so that is more in a single month than we generated in the

entire fiscal year of 08, 09, it was a high movement some of that was likely transactions recording to beat the increase in the tax rate that was going into effect in january. but it is also just generally been an incredibly strong six months. we have assumed budget levels of transfer tax here for the remaining six months about you we will be watching this month to month. >> okay, thank you. >> thank you. >> you can continue. >> sure. >> we had piqued at previous pique was at just under 320 million for transfer tax in 14, 15, and we saw the declines in 15, 16, when you can see on this chart. and the budget we had projected and the budget assumed a continual gradual decline in transfer tax revenues and instead we have had a reversal of that and as we talked about the first six months of the year were strong and we are ro jecting to be at a pique for san

francisco revenues. like i said earlier, growth over the five year average ends up captured in the stabilization reserve, this was a mechanism adopted by the board of supervisors to smooth the volunteer tillty in this tax, and so the strong transfer tax is now fuelling a 70 million depu deposit to the reserve in the current year. in particular it is driving improvement and a lot of the base lines and set assigns that are for interest, but you can see on this slide just how those base lines and funds are improving verses budget. the mta sees an improvement for their share of these revenues. the library base lines are net growing, 2 million and we also see the improvement here in the children's fund and the open space fund, both of which are

driven as you know by property tax over all which is growing. >> turning to department projections. and these are detailed in the report with obviously further explanation hthe net here is improvement. it is really being driven by improvement in the department of public health. which is projected which has revenues out performing expectations in the budget. so their net position in this 6 month mark is now at 30 million of improvement verses the six month. >> as a reminder, that is on a two billion dollar, operating budget and while it is a significant number as a percentage of their whole, it is about at a percent and a half of improvement. >> but you can see that we also have savings in other departments and the human service agencies and others, that are detailed in the report. i should say that some of these savings and we have noted them with stars here. are expenditures that were

associated with the sales tax that failed. and so earlier we talked about weakness in sales tax, and some of these expenditures are now on reserve because of the failure of the sales tax to offset part of that loss. consistent with the current year budget, the mayor's rebalance lg plan and the release of reserve that this committee acted on earlier this year. we don't see any department over spending that will have to draw on the general reserve in the current year, but there are a number of cases where the departments are over spending the over time budget and they have savings in other parts of the budget that they will need the board's permission to reappropriate to cover. >> which departments are those? >> we note them here. had emergency management, the 911, department for the city, public health, police, fire, sheriff, and maybe the puc. were all projecting at this moment will over spend their

over time budgets in the current year. with savings offsetting that in other parts of their budget. but they will need your permission to reappropriate those savings within their department to cover these offerages. >> are you able to estimate when they will come before the committee to ask for permission? >> it is typically we have done it in the spring in prior years. but it is entirely a choice for the committee actually. we push that forward if you like to see them sooner or have it later in the i couldn'ter if you like to see them later. we suggest the spring because at that time, the departments have a good handle on where they actually expect to end the year as well as what savings is available to offset it. >> do the departments come altogether collectively or are they, you know, just would what they are see all of them on one day, as opposed the puc one week and so on and oforth, and we will work with the departments to bring them forward in that way. >> thank you.

>> of course. >> as always, with our projections it is important that we stress that these are projections as the year goes along, they get tighter and tighter. but there are uncertainty that still exist that could effect these forecasts. pace of economic activity is the largest. we are at this interesting moment where we are seeing some taxes continue to grow at strong pace and those that are really driven by the property value and others are plateauing and appear to be declinindeclining, hotel, utility user tax so these will continue to be and fluctuate as we know more about what is going on in san francisco economy and what the out look is. >> while federal revenue risk likely sits in the budget years, there is some risk related to federal losses in the current year and we will continue to monitor that.

at this point, we are assuming no losses in the current year as a result of actions in dc, which seems like the most likely out come. but we will continue to report back to you and the federal select committee of the bore as we know about the federal budget out look. >> and simply where there is a significant proposal that the governor has put forward in the january budget related to shifting part of the cost of the ihhs program from the state to local government. and if it were adopted as he is proposed it will cost our general fund about $40 million. that again, is likely an impact that hits the budget years, but it is one that we will be watching in the current year as well. >> and then lastly, of course, new spending commitments by the mayor or the board of supervisors have the potential to effect this out look. >> we touch on the host of other funds outside of the general fund in the report and just generally speaking and i will not go through them in detail here, you can see the

improvement for the vast majority of the funds verses the assumptions in the budget whether the department of building inspection and we talked about the children's fund and the convention and library and open space and the airport and they are doing better than assumed in the budget and the port and at least the hechy and clean water departments within our public utility commission with have modest improvement. >> so again, just in closing, and in brief, this is about 54 million in improvement in the current year verses what we had previously projected. if that is applied to the shortfalls that we have talked about previously that will reduce them from 400 million to 350 million. we will be the next steps in our forecasting process in early march, our office the board of supervisors budget and legislative analyst and the mayor's budget office will reforecast the budget years

given this new information. so we will have revised shortfall estimates at that time. and we will come back to you with a budget status report on the current year. in may. giving you information through three quarters of the fiscal year. >> i would be happy to answer any questions the committee has. >> i think that supervisor tang has a few questions. >> no. supervisor yee? >> is it safe to say that for the next six months on projection on property taxes that you might have had earlier, would actually go up? driven by the fact that the transfer tax went up so significantly that there is so much of it being transferred that meaning that, you assess it at the current prices than the property taxes will go up also.

i hate to say where they will go and i hate to talk about where they might, and i think that there may be upside risk here for property tax and property transfer taxes in particular the hotel tax moving from the assumed growth to actually seeing the declaims of 2 percent from the first six months of the year we have a number of events coming up that may dampn that further, and i think that we will probably see, and that will be my guess today and we will see the improvement in some and

weakness in others. it will, and if we see the level of activity in the next six months that we saw in the first six months of the fiscal year. important to note though, that given the relationship with the stabilization reserve, because we are now transfer tax in the current year has risen above the stabilization reserve deposit fle flesh hold as if the transfer tax improves, 75 percent of the growth will flow to that reserve, with only, 25 percent flowing to the general fund. >> oh, okay. and that helps. >> yeah. >> thank you very much. >> seeing no other comments from my colleagues, i want to invite up miss white house from the mayor's office of budget to make a few comments. >> welcome. >> thank you, share cohen and

members of the budget and finance committee, i would loaf to go to the overhead if that is okay. i just wanted to i am sorry. the --. >> before you begin, i want to make an announcement to everyone in the chamber today. good morning, and welcome. just want to bring to your attention that we have an overflow room set up with a television as well. in the south light court which is down stairs, the deputy sheriffs with point you in the direction just down the main staircase and to the left. so if you don't have a seat we need you to go down into the overflow room. >> okay. >> great. so thank you so white house, mayor's budget director and the controller has already touched on this but i just wanted to make sure that i set a couple of comments for the consideration, as a controller mentioned, as of the five year financial release our city projected deficit for

the up coming two years was around, 400 million, if we took the balance of the 54 million from the six month report, and we used that to the balance up coming two year budget that will bring down the projected deficit to 350 million, just for some perspective on that for me. this time last year, the six month report was around the same number was around, 58 million and at that time, the deficit went from 350, to 300 as a reminder, compared to a year ago, we are still about 50 million worse off and i think what is very different about that time, is that there is a lot more uncertainty from the federal government, and i think that is an important thing to keep in mind and then the six month report released to the up coming items and so i wanted to comment on the mayor's rebalancing plan, and so he released a rebalancing plan on december 8 of 2016, and really i believe that the appropriation ordinance that will be coming up later, that does relate to the 6 month report, when i talked to

supervisor avalos about this, he wanted to be sure that the they would be aible to weigh in and as the budget and finance committee does have this discussion today which i am happy to help and be helpful in any way, because it is a good policy decision, keep in mind, you know there were choices and trade offs that the mayor made and so when we are talking about doing additional new things, it is important to also talk about the choices that the mayor made and where might the board make a different choice. so for example, the rebalancing plan includes additional funding for immigration for the free city college, street trees as well as 20 million a year in ongoing homeless fund and this includes all existing rentals and navigation centers and really what we prioritize after speaking with the department and supervisors and community members whats really where is our existing service? that must continue and move forward because it is already being use and we didn't want to be in a situation where anyone

was losing service that was a high priority for us when we did that process, and just where we are at on timing in the year. >> we are three months away from your committee and from us having to propose a balance budget to you and your committee reviewing that in a much larger context with everything altogether at once. i think right now when i think about making decisions on doing more or adding new money for new programs there are two reasons that i am concerned about that. one is, if we take some of this six month money, the this 54 million and we spend it and then it is not available to balance the budget, instead of 400 million, to 350, it will make the devastate stay higher and additionally it is a one time source of funding.

which makes the deficit worse, and because really what we are talking about is ongoing services today. and i am happy to help in any way that i can. >> colleagues any questions? >> just a quick question, last year when we went to around this time of the year, and i can't remember maybe you could remember? that did the board ask for supply mentals to support or in crease the support of certain programs during the latter half of the year. you know, i could not remember off the top of my head i am no the sure. >> in other words, did the board make decisions that would have

increased the projected deficit at all last year. >> i can't remember it happening later in the year. i believe past practices it is usually some what earlier in the year but i am sorry i can't remember, but maybe the controller's office can check or let us know. >> supervisor i don't have that information at my finger tips, but i can reresearch it. >> as we recall we have the full board approve a few supply mentals. >> we will do that homework in the next few minutes. >> thank you. >> thank you. >> i don't believe there is a bla report on this item. so what we will do is we will go to public comment. ladies and gentlemen, if you would like to comment on item three, do so. at this time. >> all right, seeing no public comment, closed. >> i will make a motion to file this hearing. >> we will take that motion without objection. thank you. >> madam clerk, could you call

item four and five together? and as at this point, i would like to recognize that we have a supervisor sandy fewer who is joining us for the next couple of items call four and five. >> item four.ordinance appropriating $6,945,965 of general reserve to the office of public defender, to create a legal unit to defend immigrants from deportation in fys 2016-2017 and 2017-2018 . and item number five,ordinance amending ordinance no. 146-16 (annual salary ordinance fys 2016-2017 and 2017-2018) to reflect the addition of 17 new positions (7.08 ftes in fy2016-2017 and 17 ftes in fy2017-2018) at office of public defender for establishing a legal unit to defend immigrants from deportation. (. >> thank you, supervisor fewer is the sponsor of this item >> thank you, and i am happy to be here at the budget and finance committee today to discuss the items before you. we are calling items four and five together as items four is a supply mental appropriation that would fund immigrant legal defense through the san

francisco public defenders office and item five, amendz the annual salary ordinance by adding those positions in the office of the public defender. before hoping up for the presentations i wanted to say a few words. >> this is an important issue for me. when my youngest son roy went off to college in 2010, my daughter asked my husband and i if we would host an undocumented san francisco student in our home. and so we hosted udera for four years while she was attending san francisco state. and we learned first hand how the lack of legal papers effect the every days lives of our immigrant populations, when her grandfather was picked up by ice, we also learned the power of legal representation. as he kissed his wife good-bye and set off to the job that he worked for over 40 years, repairing body work on cars, ice surrounded him and took him away, claiming he was another person with an arrest warrant, he insisted that he was not that

person, but ice refused to listen, because his family was able to secure legal representation for him, the van that was transporting him to the border was stopped and he was taken back to his family, which includes u.s. born grandchildren, this is what legal representation can do, this trump association will not be so generous, for thousands of people they are in desperate need of legal representation to insure the due process rights. >> i would like to remind. >> slow down. >> i would also like to remind my colleagues that the immigrant communities are being impacted include latino, asian, and pacific islander, white, arab and african residents. as a city, we have stood together to take important actions and response to this threat. including 1.5 million dollar

supply mental for non-profit immigration legal defense services and a lawsuit from the city challenging the constitutionality of the order to defend sanctionary city, but there is a group of people that are vulnerable and that is people who are detained, of the 1600 people in detention through san francisco immigration court, the only immigration court in northern california, 60 percent, 67 percent of them do not have legal representation, and two-thirds of them have no criminal record and many of them have u.s. born children they are supporting. if we believe in civil rights for all, if we believe in human rights for all, then we must believe in due process for all. because without due process, human and civil rights people will be violated. earlier this month, i asked the budget and legislative analyst office to draft a report and other cities response to the

trump administration aggressive actions towards immigrants. san francisco should not be the only. and we are not the only ones, san jose, and santa clara county have committed significant, legal defense funding as well as alamena county last week for both community organization and public defenders. our efforts are linked to the efforts of other public and private entities who are stepping up to provide funding for critical and legal defense, in addition to training and education for immigrant communities. but san francisco should continue to be united in leading this issue, and that is why i have taken over sponsor ship of this legislation originally introduced by supervisor campos in 2016. based on the 6 month report, with he have a surplus in the current year budget due to a

significant amount of salary savings and unexpected increase in the city's transfer tashgs while of course the majority of the money should be set aside to help with the budget shortfall, i believe that there is room including saving in the public defenders own budget to prioritize these critical issues, in light of the circumstances since the legislation was originally introduced, i will be accepting your recommendations made by the budget and legislative analyst's office and suggesting making the following amendments, reduce the amount of supply menial to effect the numbers >> remove the fund and reduce the positions in the public defenders office, reduce to 13 positions in fiscal year, 16, 17, which would include one head attorney, six attorneys four legal assistants and two senior process clerks. reduce to 15 positions, and fiscal year, 17, 18, to one head

attorney, eight attorneys and four legal assistants and two senior process clerks. total amounts to 418,105 in physici fiscal year, 17, 18, to 2 million, 692 dollars in fiscal year, 17, 18, and two million, 441,797 dollars total for both years, with that i have asked several office to come and present today, i want to thank in order of presentations adrian from the office of civil engagement and fred from the budget and legislative analyst office, brian chu, from the mayor's office of housing and community development, davis from the human rights commission, white house from the mayor's budget office and jeff

san francisco public defender. first i would like to bring up pond for the first presentation, focused on analysis of the existing and pending federal executive orders regarding immigration. >> it is good to see you. >> good to see you supervisors, good morning, chair cohein, and committee members and supervisors, the office of civil engagement and affairs and i am joined here by senior, policy analyst, francis sha and the researcher amal, and our language services staff, will also be interpreting part of the proceedings today for the residents who don't speak or understand accomplish so that they can fully participate. oc, as part of the general services agency and one of a growing number of immigrant affairs offices across the nation and we work with about, 100 offices nationally, and we are the only one that has policy grant make and direct service

responsibilities. and our programs range from community ambassador safety to citizenship and civil engagement and deferred action assistance and day laborers and language and immigrant rights and education and out reach, we also over see the city wide compliance with the ordinance and staff the san francisco immigrant rights commission. our job is to provide information resources and tools to city departments and capacity support to cbo to help them better serve our vulnerable and communities in a cohesive way. and as you heard, earlier from supervisor fewer, the need is great. we were asked today to provide an overview of federo, immigration policy, and executive orders, and how these and anticipated actions may impact san francisco's people.

there are 2.2 million born outside of the united states, includes nationalized citizen, and lawful residents or green card holders and refugee and legal non-immigrants, including those who are on student work or other temporary visas. and persons residing in the country without authorization. so in san francisco, there are about 71,000 with some sort of legal status, of these, 47,000 residents may be eligible now for citizenship. they are mostly from the asian region, one in every 7 is san franciscos is an immigrant and that is nearly, 300,000 san

francisco residents. and there are about 44,000 individuals without documentation status in san francisco. mostly from mexico, central america and asia. with mexico and china the top countries of birth. there are also many mixed status families or families whose members include different citizenship or immigration status. for example a family with u.s. born citizen child. and an adult child who is a doca holder and may be undocumented parents interesting to note that of the undocumented population in san francisco that is ages 16 and older, 67 percent are employed. and they are contributing to the local tax base, mostly in the arts, entertainment and recreation, and accommodation and food services industry. but because of their lack of

status, 38 percent lack any kind of access to healthcare and insurance. so if we go to the next slide, this is dense and try to shrink it down to its essence in less than four weeks, the new administration has issued 12 signed executive orders and 12 presidential memos. it is kind of like a memo a week or a day with over, 200 leaked documents and i am sure everyone saw the president aep comments today about leakage in the administration. while issuing executive orders and memos in the first week of office are not really unusual, a lot of presidents have done that, what makes these actions atypical are the uncertainty and vagueness around the directives. very broad, many unclear leaving interpretation up to individuals such as border patrol agents so there are three immigration executive orders that have been signed with two additional

unsigned ones and i will go over these quickly. but together these signal shift in federal immigration policy, one that does not distinguish between children, hard working immigrants and criminals.

reinstate scom which we know has been a failed program and expands immigration enforcement resources because you can't enforce unless you have the resources that support the additional activity and protecting the nation from terrorism entry into the united states by foreign nationals otherwise known as the muslim ban, bans visa holders from the seven previously named muslim countries from entering the u.s., and thankfully this one is on hold. and will be settled in the courts. so that will take a little while. and then if we go to the unsigned executive orders, there are hundreds of documents

floating around the internet right now, but these are the two that most people think well something will happen on, so the first one is entitled ending unconstitutional executive amnesty, wiping out president obama executive actions and all of his programs no new, and the permits will be valid until they expires, and re-scinds the dopa program that was blocked by the court and never implemented and the second order, protecting tax payer resources for insuring our immigration laws by insuring our immigration laws promote accountability and responsibility.