rates. the city also has a contribution that goes into this pool, so we're excited about trying to prudently invest these funds, also. our budget highlights are -- i will respectfully correct the chair, madam chair, that even though it looks like there are general fund dollars supporting the retirement system's budget, there are no general fund moneys. i think it's setup in a general fund account skbrujust so it c handled differently. >> supervisor cohen: that's correct. >> but all of the funds for the sfers are paid by the trust through the deferred comp program. they're reimbursed to us by the third party administrator and for the retiree health care trust fund, all of the expenses for administering the program are taken from the earnings of the retiree health care trust

fund. we have three strategic initiatives that i wanted to point out to the committee. in our budget, we've proposed a very minor reorganization of our member services area, because we want to start focusing on a retirement readiness campaign, not just talking to people about their pension, but also talking to them about the opportunity to defer their money through the city's deferred comp program as well as get information out to them related to their social security benefits, and so we're going to start, and this budget reflects just a change -- it was a substitution of a position so that we could have leadership for this new campaign. we also have an enhanced member experience strategic initiative where we currently are on our website, members have 24-7 access through a secure member portal to all of their retirement information. they can model benefits, see

what their pension would look like if they decided to retire in october of 2019. we think that we know from the number of visitors that we receive through this that it's been well received. we want to continue to roll out additional services. the service model we have is still probably over 90% of all transactions are conducted face-to-face. we're not sure whether it's they just love to come and see us, but we really want to off load and educate folks that they can save themselves a trip to our office by going on-line and conducting transactions that way. and the third initiative is the esg initiative. in this budget, we did not keep in line with mayor lee's budget instructions. however, the mayor's office did approve that we would be able to acquire resources to fully implement our esg, and the

board approved unanimously . we're hoping that the committee and the board would be supportive of adding two permanent resources as a signal that we're not just focused on fossil fuel, we're also focused on executive pay, diversity on boards, a long list of social, environmental and governance issues, so we're hoping that you'd be supportive of that. as requested we've shown the fte growth relatively flat over the last few years, including the last two years and future budget. and this is how we spend our budget. and you can see that two thirds of all of our expenses are paid towards investment. that is not staff salaries, those are hiring managers, they're travel, they're research, and so the last majority of our budget is spent

on investment. we have roughly 23% of our budget is spent on personnel. and then, we have work orders for administration and retirement is the next piece. so i'd be happy at this time to answer any questions that any of the committee members might have. >> supervisor cohen: thank you very much for that presentation. supervisor stefani? >> commissioner stefani: thank you. i know you mentioned the divested from fossil fuel holdings, and i'm wondering if we divested from ammunition and gun stocks? >> yes. we went further than anyone did after sandy hook. we not only divested from the manufacturers, but we divested our holdings in the major retailers that were making

those available to the public. so i'm proud of the board by going further than the step -- than i think a calot of calls e being made for now. >> commissioner stefani: thank you. >> supervisor cohen: yes. supervisor yee? >> supervisor yee: you mentioned the retiree health care trust fund has grown to about 250 million. is there a particular goal that we're trying to reach in terms of the amount? and then, also, i was just wondering what the source of the growth is from? >> i hesitated to say the fundedness because we were one of the first. the city and county of san francisco is one of the very first cities to decide to start funding this type of obligation. i believe -- i don't have the numbers in front of me, but certainly, the retiree health care obligation -- the liability is over $4 billion, the last number i saw, so what the city took, the last charter

proposal is to start collecting money from active employees that is in a trust that only under very emergency types of circumstances could the city get into, but they wanted to start having and building up towards a $4 billion. so it's not a significant funded level, but certainly, it represents, i believe, the fore thought of this city to go forward and at least try and resolve the issue. eventually, everyone will be paying 2% -- all active employees will be paying 2% of their pay into this trust, and the city will be paying 1% of that pay. so it's going to take a while, but certainly, it reflects an effort. it used to be managed at the treasurer. in a couple of years they approached the retirement system to see if they could piggyback off of some of our investment opportunities and we're able to provide them access to some index funds so

that they're able to rather than more than just sort of a treasury rate. i don't have the numbers in front of me but certainly it's earning in the realm of 7 to 8%. and now that we have taken over the management of it, we're actually introducing to the board the opportunities to make direct investments rather than just passive investments, so we're building it out similar to, you know, the way we manage the retirement system. they are now at a size that they're significant; they can make a $10 million investment and not really, you know, have it an overpowering impact in the portfolio. so i -- you know, claire murphy, my predecessor, told them, don't come and talk to us until you got to the right size. they got to the right size, and they came and talked to us, and we're more than happy to invest this for them. for being a passive portfolio up until now, it's been getting very respectable returns.

>> supervisor yee: thank you. >> supervisor cohen: thank you. i have a question on the final page with the pie chart of your presentation, you've got investment expenses at $61 million. i'd like you to talk to us about those expenses. what kind of expenses are there? >> yes, the majority of these are for consultants and for managers. actually, the majority of them are for managers. we engage 80 -- invest -- over 80 investment managers, and we pay them fees associated with those sections of the portfolio. also, the board has an investment consultant, and then we have a private market consultant and a public market consultant, so a lot of those are for consultants. the other consultant that the board has is the actuarial consulting services, which is an outside actuarial firm that oversees and conducts all of our reporting, all of our

recommendations for the board on contribution rates every year, and so that's the nature of the vast majority of that cost. i think it's -- in the investment, it's all managers and all consultants. >> supervisor cohen: okay. so there were -- earlier in the committee hearing, there was a long conversation about increasing sfpd. the mayor has put a proposal forward -- a budget proposal forward to increase, i think to hire something like 160 employees -- new sfpd officers. and quite frankly, this body is -- not just this committee, but the entire board of supervisors have identified public safety as one of their top concerns. and in that -- in that area of public safety, it's a desire to see more beat cops, more foot patrol cops. so there's a proposal that's being -- currently being floated that would ultimately

have 250 employee -- new officers in four years. so that's, what, fiscal year 2022? i'm wondering -- and if you don't have the numbers, you can certainly bring it back to us, but what are the exponential costs associated to the retirement fund? one thing we heard about mta, when you bring on fte's, there's more than the cost of salary. there's the benefits, and then you're paying out throughout their entire career. and then, when they retire, yes they've paid into a pension system, but they're also drawing down on our health care system with very expensive health care costs that are growing exponentially, meaning the cost that we're paying when they get in is not the same cost that we're going to be paying for them when they retire. and i don't want to exclude myself. this includes myself.

>> all of us, actually. >> supervisor cohen: yes. i want to know if you can indicate the cost of hiring 250 additional police officers. the reason i'm targeting this, they are very highly paid and a very skilled classification of city employees. and if you don't have it, i'd just love for you to get it back to me because i'm interested in mowing what the plult meyer effect is on their multiplier effect is on their salary. correct me if i am wrong, but i think the vesting -- the number of years that you have to complete your service in order to vest, is it 13 years? >> for the retirement, it's five years. >> supervisor cohen: five years. >> for the health services, i think total vesting is at 20, and so i think you get access to medical -- >> supervisor cohen: after 20 years of service. >> after ten. i don't have the chart, but i think it graduates up. and by -- you have to have a full 20 years to get the full subsidy of retiree health

because previous people -- i'll remind you, all of the new police are going to come into a benefit plan that has lower benefits than the folks prior to 2010. but it'll still be costing -- we have -- as you know, we have an internal actuary, i will have her estimate the numbers, assuming they'll all come in at entry level or -- and it'll be 250 over a four-year period. >> supervisor cohen: that's right. i just want to pivot to the mayor's staff. i don't know if you have any preliminary numbers about what that's going to cost 'cause -- so what mayor farrell actually proposed has, i think -- if i'm not mistaken, a $34 million cost for new officers, but we didn't really discuss what year three, year four, what those costs will look like. if you could share a little insight on that right now?

you have to turn the mic on. thank you. >> this is a really excellent question, thank you. the cost that you mentioned to include the salary and benefit cost for the new staff, so that would include the employee contribution rates for the retirement fund. i don't have the number off of top of my head of the projected costs and out years of how much that will go up by, but certainly, we take those costs into account when we do our long-term deficit planning, so we could estimate that for you. >> supervisor cohen: okay. great. i just wanted to get it on the record and ask the question. we can get it out especially when the police department comes to talk about their budget at a later date. in the meantime, love to hear what janet brazelton has to say, our internal actuarial on the numbers. >> yeah, she can do a pretty good ballpark, but we will refer it also to the actual

outside actuary. >> supervisor cohen: you don't have to refer it out. just keep it kind of internal. let's see what she's talking, i will compare it against the bla, and the mayor ka's office and we can figure out what those costs are going to be. supervisor fewer, did you have -- no? okay. i don't think we have any other questions for you. is there any other information that you want to present? no? >> no. >> supervisor cohen: oh, i'm sorry, i didn't mean to answer for you. >> i'll take your lead. no. thank you very much for the opportunity, and i'll see you next week. >> supervisor cohen: all right. thank you. good to see you all. thank you. all right. next, we're going to hear from the law library.

>> if you turn to the second slide, the highlights of some of our services include attorney reference librarians

assistance. four people, whether they're lay people or attorneys. they have some portions of our collections that aren't found elsewhere. one of them, it has to do with the complete history of the california code of regulations. [please stand by for captioner switch]

we have to pay for insurance. the cost to maintain the

software that is library software, the catalog check out, that sort of thing. when you look through this list. if you were to turn to the next page, it shows you what the actual costs were for the last fiscal year born by the law library. you could see the income we received large amount comes from court filing fees, which have declined dramatically in the last 6-7 years, which i will talk about in a second. our income is slightly above our expenses. i thought it was important you see this, normally the supervisors are focused only on the appropriation but we are managing despite the hit to our filing fees. so if you you turn to the next

page, it shows you the dramatic decline in filing fees, state wide since about 2008-2009. it's a terrible drop. but if you look at the next page, you will see that our impact from the drop in filing fees is even worse. over 47% decrease in our fees. and the fees are our main funding and that was set up in 1870 when the law library was basically born. we are all funded by a portion of civil filing fees but for some reason filing fees have dropped, including its impact to the courts, it is certainly affecting the county law libraries who are in the position of having to fund

legal materials year after year but yet our income has been cut almost in half. one of the reasons for the filing fees has been in 2008 there was a uniform filing act, if you are in butte county or san francisco, you will pay the filing fee, it's not locally adjusted. as a result, throughout the state and particularly smaller counties that expanded the numbers of people who cannot afford to pay filing fees, so it expanded the numbers who are entitled to request fee waivers, so that's impacted the amount of filing fees we have. but another important thing that's impacted them, there's other alternative mechanisms, dispute, such as arbitration.

a lot of major companies are using arbitration when they have a dispute. so although those groups may use law library resources to some degree, that has moved things out of the court that would normally contribute to filing fees. so the court is feeling it, and we are feeling it, but if you take a look, it's pretty dramatic and it's a big challenge. the next slide shows you what the next two year proposed budgets are. from the appropriation. you will see there's no change in f.t.e. and there hasn't been in decades. we don't have any capital investments. we have no service charges. in terms of new initiatives, those initiatives are within our law library budget but the major initiative which is a temporary one we are working on is going through materials that were stored to determine which could be salvaged and which will fit into the law library

space. it's quite a large project. our accomplishments, we managed to consolidate our resources. we are always, always looking to cut corners with respect to materials and legal materials. one of the ways we do that, we also participate in a county law library, consortium to try to increase savings. we also have to make hard choices. we had many, many descriptions in the past and we have had to cut them back and we look at every single invoice to decide, is there anything we have that can deal with this. we have worked very hard on this and one of the things we successfully did which diane was responsible for was successfully negotiating reduced rates for illegal

databases, which is huge. and we are expanding our social media outlets, we have created a legal blog in addition to our other outlets. we are continually increasing our legal education programs and we were delighted to be awarded a grant from the p.c. refresh which enabled us to replace computers in the library that were over 10 years old and won't be supported any more by some of the software. in terms of projects and strategic goals we are collaborating with the protocols and efficiency which we are very excited about. we are assessing the condition. the suitability and utility of the 160,000 volumes stored by the city when the city, when the law library wasn't moved

back to city hall after the retrofit. unfortunately less than 10% of that collection would even be able to fit on our shelves so we are going through not only to assess their condition but to assess what we can actually retain. diane and i do this everyday. we have a staff of temporary librarians helping us, and it's quite, for me, as a long-term law librarian, it's a moving and painful experience to see what we aren't going to be able to save but it's exciting to look at what we have. another important project will be conservation cataloging of our rare book collection. all this item in that collection was published in 1491, or maybe 1490 and our collection is unique and

requires some conservation measures and special cataloging so we don't have funds for this but this is a project we are looking towards. and you could imagine 400-500-year-old materials are crispy dry but they have been managed pretty well over the years, because thanks to san francisco's climate. strategic goals continue to facilitate access across san francisco. different people, whether they are of various generations or various education backgrounds including long-time lawyers have different abilities to work with some of the electronic resources. we have materials that are more complicated for practitioners and we are always seeking to

provide what is needed for any person no matter what their need is in san francisco and we are excited increasing partnerships in city departments including the superior court access center and legal departments and expanding with other departments. >> i just want to let you know we are at the 10-minute mark for the presentation. >> okay, thank you. >> i think we have a couple questions. supervisor fewer? > supervisor fewer: thank you very much. you made reference about moving the books from the law library books from brooks hall. i think a year ago there was discussion at the budget committee for the need to develop a plan to move all these books and it sounds like you are working on it everyday but there's a deadline set for december 2018 to complete that task so do you think you will be able to meet that deadline? >> i am proud to say we came up

with a system that's enabled us to move forward much faster than we thought we would. 160,000 volumes of legal books is innumerable amount of dusty boxes and we thought we would have to go through every box but we came up with another method so we feel ahead of the game. once we determine which materials we will be analyzing more closely, that will be a little bit slower, but yes, i'm sure that will be done. > supervisor fewer: great. so you have secured a contract who can move the books for you? >> pardon me? > supervisor fewer: have you secured a contractor who can move the books for you? >> the fact of the matter, what we are hoping, most of the books will need some kind of cleaning and there's a company that does this for the public library. what their process is they would take the books off site, clean them and return them to the law library, we are hoping at that stage of the game that

would be how this would work. > supervisor fewer: thank you very much. >> any other questions? seeing none, i appreciate your presentation. next we are going to hear from the rent board. total budget $8.5 million and again, this is also a unique board because there's no general fund dollars that go into their budget. also from what i can tell have no new f.t.e.'s.

>> thank you, supervisor cohen, supervisors. hopefully our budget is not as complicated as everything else we do. i don't know if it's showing up on your screen. >> before you go further can you introduce yourself? >> robert collins, executive director of the san francisco rent board. so again, thank you for having us here. and let me begin with our mission. i have only six slides, hopefully we can keep it well

under 10 minutes and you can ask any questions you have. the mission of the san francisco rent board is to protect tenants from unjust rent increases and unjust evictions, providing landlords fair rent, efficient and consistent administration of the rent law, to promote the preservation of sound affordable housing and to maintain the ethnic and cultural diversity unique to san francisco. yes it's a very tall mission and we are in the middle of a lot of battles at this time but we hope to keep an agency that is responsive and is a great resource for people. our strategic goal is to deliver that to san franciscans. to process landlord and tenant petitions more effectively. to provide information. to increase collaboration with other city departments and

ensuring san francisco's diverse community can access the department's services. so we expect, we want to process petitions more effectively because we expect increased filings in the future that require more resources to process. as an example, we have the soft story seismic retrofit ordinance which mandates 5,000 buildings be seismic retrofitted. we are working with folks at d.b.i. the buildings that undergo that kind of work will eventually go to the rent board as a pass through for inspection. we are looking at how to process more efficiently. in the past year we have redone the way in which we look at tenant hardship applications for example, and we are looking at pilot projects in deciding petitions without a hearing where it's possible.

we are challenged with how to keep our information up-to-date because our information is also very legal in nature and there's a lot of balancing that goes on between providing simplified information people can digest but also legally correct. ensuring they have access to department services and increased collaboration with all the departments. just touch on both of those for a moment. let me start with increased collaboration with other departments. you have passed a number of laws that are great for us, because we need to rely on other data, so when you ask the planning department for example to take into account the data at the rent board or ask the mayor's office to take

advantage of data at the rent board to carry forward programs, that data is important. we are looking at ways to streamline those data requisitions. you are the new san francisco rent board, the new city, the new way we are all working relies on working together much more and we are very actively working at getting better at working together. lastly something new and dear to our hearts at the rent board is working with san francisco's diverse community specifically the limited english speaking community and we do that by a variety of ways translating our materials to providing interpreters and translation of all our materials. this year's proposed budget has a $30,000 increase for increased interpreter service. >> $30,000.

>> correct, for a total of $90,000 but it's growing exponentially the use of those services. let me move onto legislative changes. this isn't all together new. we move slowly, work load from legislative changes, the a forementioned soft story seismic retrofit ordinance passed in 2013-2014, 5,000 buildings, 50,000 units, almost a third of our housing stock will be retrofitted in this way and we expect that will be coming to us as petitions for pass throughs and petitions for application for hardship waivers of those pass-throughs for tenants. also driving our increased work load is the filing of agreements within the department and we are receiving many, many of these.

i'm trying to showcase the challenge is some of our petitions have gone down. regular tenant petitions are high two years ago, since then they went down somewhat. landlord petitions are increasing, so are other kinds of buy outs that often require more work than the petitions that have been kind of holding steady. so this chart attempts to illustrate that. filings are where they were but the nature of those filings are changing due to the seismic

retrofit ordinance, as well as buy outs and owner move-in process it will be much more labor intensive on our side. so for that reason, we are keeping our f.t.e.'s at the same level, as per the directive, we went from 36 to 37 f.t.e.'s in the 2017-2018 year and this year we are keeping it at the same level. the proposed budget for 2018-2019 is 8.5 million. it's about a 5.8% increase from last year's approved budget. and that is mostly a reflection increase in salary and fringe costs, annualization of one new position and increased interpreter and translation budget, i.t. support and smaller items like that.

>> if you don't receive any general fund dollars, where and how do you get increases to your budget? >> our budget is entirely funded by the rent board fee. the rent board fee is assessed on every rental unit in san francisco. the controller determines after approving the budget the amount of funds that are needed. assesses that amount to cover the budget. that's a great segue into our last slide which is the rent board fee was $45. this fiscal year. we anticipated the rent board fee going up to $47-$48 but we are happy to report it will come in at the same $45 per unit, $22.50 per s.r.o. unit

this year. >> supervisor cohen: so no one gets a raise? >> well, we were able to have some savings from prior years. >> supervisor cohen: okay, that's good to know. do you have a rainy day fund? do you have money available if something terrible were to happen that would help you? >> not really. the only thing we would have is prior years' surplus to use in a future year, we have no other mechanism. >> supervisor cohen: if something catastrophic, i will direct my question to you but also staff, if there was something catastrophic and your budget wasn't able to absorb the cost are there restrictions that would prohibit you from drawing down on the general fund or is that just not the way -- >> that's not the way we have operated. we would have to research that. i think at this point if something catastrophic were to happen, we would look for an appropriation ordinance would allow to go back to surplus in the fund currently but whether we could access the general

fund, i have no idea. kelly, do you? >> supervisor cohen: no, you are right probably the most expedient is budget supplemental of some sort. thank you, supervisor fewer has a question. > supervisor fewer: yes, thank you for your presentation. how much time do you think you spend on owner pass through petitions? >> it's difficult to say, i will say this, they are much more time consuming than tenant petition because there's no heap or illegal rent increase. you are really doing an audit on the operating cost of a building for two consecutive years. as you can imagine, it's many fold more complex than most other kinds of petitions but i don't have a specific number i could give you. we have maybe, probably about 20-25% of our staff is probably devoted to processing those,

even though the filings are significantly less than other kinds of petitions. > supervisor fewer: because they are more intense? you have to dig deeper. even though the filings are less, the petitions are less, but they are very time consuming, each petition, is that correct? >> supervisor fewer, that's correct. also dealing with a petition where there's many respondent tenants. you might have a petition for one building but there may be 30 tenants interested, want to look at the file, get more information, want to raise objections, want to be at the hearing, want an ininterpreter at the hearing and maybe many are affected by hardship situation, and often times actually results in a spill-over effect. you may have tenants who want to file their own petition because there was a petition filed by the landlord. it's a driver of more work. > supervisor fewer: got it. and do you think you have sufficient staffing to handle

the work load you have? >> we are trying to be creative. our challenge is we have no more space. so even if -- like many others in our fair city with some great, you know, we are not alone, i think, as far as city employees and city departments in having difficulty securing space. having said that, currently we are dealing with the work load we have with creative strategies, like i mentioned, more strategic planning around what can we process without a hearing, how could we simplify, we have had a board that's been very supportive. they have done away with process for the hardship application. they streamlined it, made it easier for tenants but also easier on staff. > supervisor fewer: thank you very much. >> thank you. >> supervisor cohen: all right, seeing this are no questions, we appreciate your presentation. >> thank you very much. >> supervisor cohen: next we

will hear from the appeals board. >> good afternoon, my name is julie rosenberg, new executive director of the board of appeals. as you are probably aware mr. goldstein retired six weeks ago so i moved over to the board of appeals from s.f.m.t.a. this current fiscal year and go over our budget proposals for the next two years.

>> supervisor cohen: ms. rosenberg, do you have a presentation for us? >> yes, i do. it's up on my screen. >> supervisor cohen: i'm sorry, you don't have a handout? >> i apologize, yes, i do have a handout. as you know the board makes a wide range of determinations for city boards and commissions and our mission is to provide a final administrative review process in a fair, efficient and expeditious manner before an impartial panel and we are a very small department, we have five board members. the department head, myself a legal assistant and three legal process clerks. we have five full-time employees.

our strategic goals, just to give you a brief summary to enhance the appeal process for participants, make it more accessible to the public and through the increased use of technology. goal two is to foster workforce development. we are small, so we cross train our employees to be able to perform all functions and goal three is to analyze and amend the board's rules of procedures to modernize the a process. we have two revenue sources. our primary source is through surcharges. those represent 94% of our revenue and those are collected on new and renewed permit applications. and the rate of the surcharge is proportional to the percentage originating from each department. each year the controller performs a rate analysis after

other departments submit permit data in april. and currently d.b.i. and city planning account for 76% of our surcharge revenue. and those surcharge fees were reduced in fiscal year '18 by 26%. it went from $25 to 18.50 and the goal was to prevent over collection but again we will be revisiting those next year for fiscal year '20. the controller is authorized to make c.p.i.-based adjustments to the surcharge rate but beyond that, would require legislation and legislation may also be warranted to change the permit types on which surcharges are levied. for example, currently cannabis permits there is no surcharge on those. in terms of other source of revenue, filing fees, 26% of

revenue, collected by the board when new appeals are filed. moving on a quick snapshot, the city issues over 70,000 permits a year. most of them again looking at the chart, d.b.i. is a big issuer of permits as well as public works. and moving onto our expenditure budget, over two-thirds covers salary and fringe benefit expenses we have five full-time employees. 18% of our budget goes to services provided by other departments such as city attorney, department of technology. we also have a small part go to specialized services, infrastructure, materials and supplies.

this gives a snapshot. average of 188 appeals per year. we have hearing jurisdiction requests, 20-30 a year. quick chart showing the types of appeals we get. most are from d.b.i. and planning department, 77% of our projected appeals are from those departments and then after that public works. the zoning administrator public works and it goes down from there. moving onto the fiscal year '19 and '20 budget, surcharge rents to cover operating expenses in both fiscal years for fiscal year '19 there will be no increase in surcharge rate and for fiscal year '20 we will analyze them during the next year's budget process and there's no projected change in filing fee revenue.

and then our budget proposals include modest increases in expenditures in both budget years to cover mandatory increases in salaries, fringe benefit and rents and there will be no increases in staff levels. we just have an appendix with our filing fees. here is our surcharge rates. you could see $18.50 to d.b.i. and planning and it goes down from there. that concludes my presentation. >> supervisor cohen: thank you. i have a question for you, it goes back to, i think it was slide 8. i was curious to know why it's lower. >> it's really less than 10%.

i don't know, we have two more months. this was data up until april 30th, it's in line with the 10-year average so it's nothing significant. >> supervisor cohen: thank you. seeing no other questions, i think that's it. >> thank you. >> supervisor cohen: thank you. next we will hear from the building inspection team. building inspection, d.b.i. has a total budget of 77.8 million. again, no general fund support. i couldn't tell if you had an

f.t.e. change in your -- >> yeah, good afternoon, supervisor. tom mohele director of department of building inspeeks. -- inspection. we have no general fund support. it's my honor to present two year budget for our department and then slide number 1, start for our presentation, first of all, on slide number 1, you could see our mission and also -- digital plan. just to give you a general overview. our department main function plan check, inspection and code enforcement. and then slide number 2, is

regarding the priority of the -- 17-02 regarding housing. of course that would be included in the a.d.u. legalization of the unit and also we are trying to do parallel, work with other department to try to reduce the time frame, as per the directive to reduce the time frame to produce more unit. then also the second major thing is the implementation of accessible business entrance program. affect 27,000 business. that will be lots of work for the small business to comply with this ordinance.

then also regarding the code enforcement, we generally have 8,000 complaints per year and increase by roughly 5% from last year and other major item we are trying to prioritize is the seismic safety. more soft story as you hear from minor department, involving roughly 5,000 buildings. compliance with that program, i consider very successful, 90% compliance now. and also with the private school program, also tall building study and also i want to address our public seismic safety program outreach, the

public roughly 20,000 people what we call ambassador graduate from the program roughly in 2000. slide number 3 is the major changes in our budget and then i don't want to spend too much time, you can see what is the changes there. another slide is regarding bar chart on the expenditure, majority of our expenditure is regarding the salary and also work order to other department. one good news is you can see the f.t.e. compared to the last two years. we are actually reducing it slightly. before i end my presentation, i would like to thank you,

controller office and mayor budget office working with us and also deputy director will be here in case you have more detailed questions, i will stay behind to answer any questions you have. >> supervisor cohen: thank you. colleagues, any questions for mr. hui from d.b.i. 14 > supervisor fewer: are you staffed to capacity or still vacant positions? >> we are staffed to capacity, lots of people retire and move to other department. we constantly have a hiring process. > supervisor fewer: okay, so you are actively hiring right now for those positions. okay, would you say you have

enough policy staff at d.b.i. interpreting the laws from the board of supervisors and helping make the needed programmatic shifts to implement those laws and how many positions would you say are dedicated to that kind of work? >> okay, -- looking into any changes here, the board of supervisors, the mayor's office have any, that we look into the state also, in case they have any changes. constantly, you need someone part-time on it. > supervisor fewer: are you doing the policy work? >> i'm the primary person for policy work. > supervisor fewer: you are. and you work with a team of two

other people, it sounds like? >> yes. as well as with the executive team that is made of the director's deputy directors. >> besides that we have a technical services division, about 5 people there including engineer inspector to have any code changes or anything they need to do. > supervisor fewer: okay, perfect. do you have anyone to respond to complaints and be proactive. >> we have two divisions, the housing and the other is the building inspection. the housing, any complaint, they have it divided in any district is handled by the chief housing inspector and

also the building inspection to look into inspection and complaint and also we have a code enforcement unit and then they will look into all the commercial building and all those to go for code enforcement. to make sure they are enforced. > supervisor fewer: okay, great. thank you. we have an appointment to meet and walk the corridor around building and safety. >> also, you are all invited to our seismic safety fair on june 13th starting 9:00, i think. or 10:00 a.m. > supervisor fewer: i went last year, i thought it was great. thank you very much. >> supervisor cohen: thank you.

mr. hui, i just want to take a moment and applaud your team's work on continued focus on code enforcement. i think it's a very important service you provide to the city of san francisco. we collectively have done a lot of good work and going after bad actors, property owners, just want to let you know i appreciate your team's efforts. >> thank you. >> supervisor cohen: that goes for you to, mr. strawn. that's all i have. the next department is public utilities commission. >> good afternoon, supervisors. i will go through my presentation quickly, because i know it's been a long day. again, i'm harlin kelly,

general manager of the public utilities commission. i will provide the budget and brief high level overview of agency priorities and key projects and programs that drives our budget. additionally, i would like to talk about some external pressures our agency is facing and after providing this overview i will pass it onto our c.f.o. eric sandler to do a deeper dive. so first i would like to start with the agency mission. as you know we provide water, sewer an power services to san francisco residents and businesses. we also provide water customers located through the bay area, total approximately of 2.8 million people depend on our ability to deliver drinking water everyday. one of the most impressive things we really focused on was the strategic plan, our 2020

strategic plan and implementing it has been a priority and this is our first budget that is really aligned with our 2020 strategic plan goals and so they are identified here and you will see this throughout our budget how it's reflected. as we execute our strategic plan in a complex environment, the first set of things that are listed on this slide is something that is really consistent throughout citywide and you will see it reflect in a lot of city budgets. however, our challenges are not only limited to that. we have regulatory issues unique to our agency. we are experiencing more stringent regulatory state and federal levels. on the state level, state water resource board, california public utilities commission and the california division of fe