>> i think the issue we have here is sometimes, if we don't get information, it is true for many things in life. and they just believe what someone else says or has. so please, let's try to deal with that sometime this year and put something in writing, maybe a fact sheet or whatever we think is good. >> perhaps we can happen is we can send the issues to committee and go and look at why it can't be issued, to address those issues. >> that would be great. >> to their credit, there at retirement council and also the staff that works with dianne, they love to get those phone calls. they left to go talk one on one with the participant city employees, whatever they want to call them. they left a talk with people exactly and sets the facts straight. [please standby for captioner switch]

>>... whether or not leaders choose to have that resonate, but there is additional information we can consider putting out more proactively, to alleviate further confusion around the plan. >> president stansbury: we'll take it up in committee. why don't we open for general public comment. is there anybody in the public that would like to address the committee? seeing none, we close public

comment. >> item 11, travel expense report for the quarter ended march 31, 2018. >> we're at three quarters of the way through the year. the report indicates that so far, we've spent $278,000 in both staff and board travel. out of $700,000 budget. so we have money sufficient to make sure that the board is able to travel for educational and informational conferences they would like. if there are questions, i would be happy to answer them. we have detailed that expenditures for that quarter. >> president stansbury: why don't we open it up for public comment? seeing none, we close public comment. next item. >> item 12, review and approval

of staff's recommendation to engage. >> the rfp was approved at the march board meeting. we received three responses from three qualified firms after reviewing the proposal. i am very pleased to ask the board to approve bartel associates to perform the audit. the recommendation is here, it's part of the board calendar sheet and i'm happy to answer questions. >> president stansbury: questions from the board? motion, there is second. any discussion from the board, any comments? no. ok, call for public comment. any members of the public that would like to address the commission regarding the actuari actuarial au audit. seeing none, can we take this

without objection. great, this passes. item 13, discussion item, the personnel committee report. >> may 9, we approved the minutes of november 1. we met in closed session. we discussed the valuations of both the executive director and the actuarial services coordinator. there will be documents coming to you to fill out and we'll be looking at having a core section in the june board meeting will be associated with the june board meeting. that's it. >> president stansbury: comments or discussion from the board?

seeing none, we'll open it up to public comment. seeing none, we willlose the comments. item 14, action item, approval of the president's appointments to committees. >> president stansbury: since commissioner makras left the board, it made sense to just plug in commissioner chu to all of the spots where all of committees where makras previously was, but because we have the annual reappointment of committees in june, i thought it didn't make sense to appoint a committee chair on an interim basis for 30 days. so we'll leave the finance committee that is undergoing a little bit of a revamp. in the interim, the next 30 days, we're asking you, to sit on the committees that commissioner makras was, so we can revisit this next month. >> commissioner chu: happy to be

plugged in [laughter]. >> the election of the officers, is it june appointment of committees is july, but in effect, it really is just 40 days. >> president stansbury: ok. to that point, i think we're going to see something come forward from the governance committee in probably june related to the finance committee, correct? >> right, it's going to be based on the recommendations that you approved from the retreat. it's going to be renamed operations oversight committee. so it will have expanded mandate and authority of oversight, more on the administration of benefit side. so it's a significant expansion of terms of reference for that committee. >> president stansbury: car men, welcome to the board. >> commissioner chu: thank you. >> president stansbury: any members of the public that would like to address the committee? close public comment.

motion on the table. there is a motion, a second, take this item without objection? great, item passes, thank you very much. next item. >> item 15, discussion item, the educreseatation on alifcornia govenment code section 1090. >> good afternoon, commissioners. city attorney's office. i'm about to give a very quick presentation on the california government code section 1090.

as you might recall from my presentation and fiduciary responsibilities, i went into a side discussion of the section and the president asked me to come back with a little presentation that would provide a little more information about what this section is about. so i'll try to make this quick. california government code, the purpose of the code is to ensure that public officers and members of boards and boards themselves, without divided loyalty. and to guard against conflict of interest and the appearance of conflict of interest. the code is probably one of the less forgiving conflict of interest codes we have to deal with, so it's very important we have a sensitivity to its requirements.

the code, shown on the slide, the members of the legislature, s county, district, city, employees shall not be financially interested in any contract made by them in their official capacity or any body or board which they are members. what this means, a member of a board or body cannot have a financial interest in a contract that is before the body. and the body is not permitted to enter into that contract is there such an interest. it's strict in the sense that recusal is not a cure to this problem. the board members -- the board member who has theincial interest has the choice of either leaving the board, or divesting themselves of the financial interest. section b, which is below the

section i just read, means no one can abet or aid to violate subsecti. so one board member cannot assist another board member, for example, in willfully h such a confl intofest. the remeds and penalties are pretty severe. according to the code, section 1092, every contract made may be voided, by any party, except the officer interested therein. the courts have taken a much stricter reading of this, to say that the contract, if you enter into a contract in which a member has a financial interest, that contract is void. it's automatically void, not a valid contract. so it has no force or effect. but as to the board member, who

might have had that interest, there are penalties if the board member willfully violated section 1090. and those penalties include a fine of not moren $1,000, imprisonment in a state prison, and permanent disqualification from holding public office. ine concept of the financial rest is broad by the courts. they do not make a hyper technical reading of it so not to limit the impact. they would rather have a broad impact. but there are a limited set of exceptions to financial interest that known as remote interests. i'll describe some of these shortly. but if there is remote interest, financial interest not

considered truly interest, it's minimal enough to be considered remote interest, the board member still must take action. it's not enough to simply recuse him or herself from the action on the contract, he or she would have to disclose the fact of that remote interest to the full board. and that disclosure, that interest, must appearn the official records of the body. and before the board can act. and when the board acts, that person must recuse themselves. the vote won't count. there are affirmative things that have to be done in that instance. it's for that reason, our office asked to be informed of if you suspect that you might have a conflict of interest, so we can look at these things, consult the remote interest category to see whether or not the board can move forward. if we are unable to resolve

that, it would mean sometimes that the board can't adapt at all until we figure out there is a true financial interest. examples of remote interest most amicable to you, if -- aolymp aapplicab aapplicable, to. if you are receiving a salary, per diem or reimbursement from a governmental entity that is before the board for a contract, that would be considered remote. if you're landlord or tenant was before the board for a contract, that would be considered a remote interest. but in each of instances, you must disclose that relationship and it must appear in the official records of the board if the board is to approve the account with that entity. rmote interest standards are he

the same as for the full nancial interest, except that the contract is not considered void, unless the contracting party had knowledge of the remote iert at the time contract was entered into. so there is a little bit of leniency there, but not much. so i just wanted to then go through hypotheticals to sort of try to give a little bit of reality to what these codes mean. and these codes are based on cases i've read and tried to sort of tailor them as much as i could to the board. so hypothetical one, we have a retirement board enter into a consulting contract, the advisor was the owner of the contracting firm, the contract required the board to reasonably adjust the rates of payment to the contractor on the 5th anniversary of the contract. one year before the fifth anniversary, he was elected to the advisor.

the board refused to set the rates because they thought it would violate 1090. so he was not on the board when the contract was entered, so it's ok. but after the advisor was elected to the board, a required some action on the board to the contract, namely weadjusting the rates. assume the rates would have been in the contract's favor. the board in this instance refused to act, said we couldn't. and we want to court for a declarion and the court said, you're right, you can't act because mr. advisor is now on the board and he has been interest in the contract, so there is nothing you can do, contractor, you have to live with the contract. so they were right in their assessment of the situation there. second one is a little more convoluted.

but, also useful. and this involves -- well, it's company x was the insurance brokerage contractor for the board. the board requested company x to procure insurance contracts. was a member of the retirement board, at the time of the requ theolder exposed her exposure to the board and said she would not take any action with the contract that would be procured by company x. she did not participate in manner of procurement or solicitation of brd or influence other members of the board. she entered into agreement with company x where she agreed not to enter into and losses would be shared by only partner of company x.

this is a little bit tricky, ard, that the secn wasefore the being applied to, was not the contract with company x, that existed and was in place. the contra that were being considered were the insurance contracts that company x was asked to put in place for the board. you can see ms. holder, did everything she felt was reasonably possible to guard against the impacts of her financial interest. she knew he had a financial interest. and in looking at this, the court said, she had a financial interest in the insurance contracts because the company x, even though she divesteder interest in the insurance contract, even though reached agreement with company x she was not to receive any profits, or suffer losses, the court said

you owned 40% of company x and the company, for each contract that company x entered into, it has impact on value of company x. even though you're not getting the direct profit, if the value of company x increasings, then 40% of the greater amount is increase in value to you. so you still have an interest in the insurance contracts. you did everything you could, except what you needed to do, and what you needed to do was either leave the board, or divest yourself of the interest, but you couldn't stay on the board and be silent and still comply with 1090. bu there was another aspect to this in that the court said there was possibly a remote interest. but you know, they hadn't figured it out. i'll just describe the remote interes.

which is that the company x was acting as agent or broker for the insurance company possibly and the remote interests exception there would apply if ms. holder owned less than 3% of the shares of any of the insurance companies or each insurance company. and was acting as an agent for three years before she went on the board. and there are a few other technicalities, but the court said, you need to go back and look at that and tell me if there is remote interest. that's important, because if there is remote interest,ou saw the difference between the penalties, if there is remote interest, the contract may still be valid if the contractor did not know of the remote interest at the time the contract was made. but we don't have the answer to that question in this. and in the third is interesting,

because what resulted at the end of the game. this involved a city council. i kept it that way because there is no way to lend itself to you directly. but in this hypo, in approving the housing development project, the parks city council accepted the developer's offer to allocate $600 thousand to the personal property to be transferred to the city for a park. peter mix was one of the three. peter rich abstained on voting. they agreed to sell his property to the developer. knowing that the developer would convey the property to the city. the city council approved the purchase of the parcel. he abstained from the vote. peter rich received 260,000 frdz the developer, who received $260,000 from the city or conveyance.

we have a piece of property, a developer who was going to get up with of three parcels. peter rich owned one of the three parcels and the court said, going back to the first, approval action, you had one of three parcels which could likely be used in this transfer. that is enough of an interest right there because there was a good enough likelihood that your property would be conveyed. so you should have disclosed at that point or stepped away. but it went further. this is an interesting case, because it shows the extreme. the result here was the court deciding that the property should remain with the city.

and the developer should return all of the money that it received for the property. so there was a $260,000 impact to the developer. they lost the property and they lost the money. and that's because under california law, contracts that are made in violation of contracting, principles contracting laws, to not allow the contractor to retain any of the benefits, proceeds from the contract, and the city or the public agency that is on the receiving end of the contracts, are not required to return any of the benefits they receive as a result of the contract. so the results can be quite harsh and they were harsh in this case. which went up to the california supreme court. and my last -- well, one more. this one is a lot simpler.

and in the fourth hypo, there is executive director of the retirement system of what city. who resigned. the retirement system board meeting, the member of the board announced his interest in being considered for the position of executive director. they voted to offer the position to mr. exec. they announced the vote in open session. he was present for the closed session, abstained from the closed session. mr. exec accepted the board's offer. a few days later, he submitted his written resignation to the board and commenced his employment as executive director. here is a contract at issue -- well let me just say this -- on the california law employment, relationships are considered contracts in the public sector, so the court said you had employment contract that was at issue here. and therefore, mr. exec, who was

on your board, had an interest in the contract, his own employment as the executive director. mr. exec, the court said, you u ally two choices. ould have resigned from the board before you told the board that you were interested in the executive director position. or just not applied for the position. so in thiscase, mr. exec, i think had worked for the city as the executive director for about seven months. the court said -- commanded him to return salaries and benefits he'd received from the city as a result of its employment, because the contract was void. and so that was the end of that result. so those are my hypos. and i would be happy to entertain questions. >> president stansbury: any questions from the board?

>> the money had to be returned in hypothetical 3, it the 260 or the 600? >> the 260. >> commissioner driscoll: slight change from what you laid out here, but you did in your opening comments talk about the duty of loyalty. which came up in the first educational session with this. can you tell us to whom the board and/or any board member, to whom does that duty of loyalty go? >> so, under the fiduciary concept the duty of loyalty goes to the plan and the participants in the plan and beneficiaries under the constitution. this loyalty is talking about your loyalty to the board and then that fiduciary loyalty flows down to the specific entities. >> when you said -- you said there is beneficiaries and one other word. >> participants. >> participants and beneficiaries of 60,000, but is

that as a group? >> as a group. as a group. >> we have a duty to the beneficiaries as a group. >> as a group. >> thank you. >> and 1090 was not written with the fiduciary obligations in mind, it was much broader concept. >> ok. mr. bryant, thank you very much, just a repipeline der to the board -- reminder to the board, this is something we voted on last year, where we're going to have educational presentations brought to us on a recurring basis. why don't we open up for public comment? any members of the public that would like to address the committee? seeing none, we close public comment. >> item 16, discussion item, the executive director report. >> i had the pleasure of

attending new commissioner carmen chu's swearing in and certainly welcome to her. we've had an opportunity to meet with her last week for a brief period of time i believe there is going to be continuing orientation. and she has her own ideas of what she needs to know, so that is very refreshing. we appreciate her interest and look forward to continuing to meet with her. we sent out by e-mail a copy of the status report on her 2018 proxy vo. you got a hard copy here at this meeting just in case. meeting just in case.

>> unfortunately, working so close to retiring, he fumbled -- he finally got the bug i decided to leave. we wish him well, and we obviously will find it very hard to replace him but are pursuing a replacement.

>> i did notice he was particularly jovial to the. [laughter] >> he has counted down the number of meetings. he was quite upset wehad so many committee meetings towards the end, but we said we will make sure that he goes out with a real bang. but we had a meeting once a week for the last four weeks, as he reminded me, and he will be at the june board meeting. we appreciate the work that he does. yes? any questions? >> questions or comments from the board? questions? >> with the upcoming calendar, at closed session, we should add that. >> okay.

>> why don't we open up for public comment? any members of the public comment -- public want to address the commissioners? >> welcome, norm. i expect you will be joining our organization very soon. congratulations on your retirement. i just want to add, that the secretary for the health service board has also announced her retirement with the same timeline. so i'm sure there is a lot of excitement, and discussion. we are going to welcome both of them to our organization, and i didn't bring an application, but i will tell you, the next committee meeting or the next anything i attend i will bring applications for both of these secretaries.

i've known norm for many, many years, and i know he's been an asset to the city and county and has done a lot of good work for a long time and has been a very good secretar secretary to this. we're looking forward to, maybe even his participation at some point in the future. i also just want to say congratulations to commissioner stansbury. i understand that congratulations are warranted for your second child. correct? congratulations on that. i guess we have to weighed a long time for those members to join us. and hopefully it is at some point. we all have city employees that we are producing here. thanks, and welcome, norm. >> thank you. >> i would like to thank norm for his part and for some of my

anxious phone calls. and you are retiring just in time for the beginning of the new fiscal year. so i just want to express my appreciation and i would like to welcome carmen chu to the board and hopefully she serves with integrity and commitment. thank you. >> thank you. >> why don't we go ahead and put close public comment. >> next item is item 17. >> anything from the board? any requests? no discussion? ok. seeing none, why don't we open up the public mment. no members of the public, we will close public comment.

just for clarity sake again, this item is open a case you have any requests about anything yoyou'd like to see in future agendas or any concerns if you would like to bring it up. next item, please. >> item 18 is item abou retirement. >> can we take these at committee? >> yes. >> why don't we take this up for a public comment. are there any members i would like to address the commission? seeing that we will close public comment. >> at a motion to adjourn will be order >> ok. great, thank you. meeting adjourned. [♪]

>> so first, i want to say good afternoon and thank you for joining me as i submit our balance to your budget to the board of supervisors here in city hall. i want to start today by bei acknowledging all of the hard work that went into this. i want to thampg the members of the board of supervisors, i want to thank the departments that are here today and their staffs for all their hard work and the months of preparation that are here today. there are a few people that i want to call out.

first, ben rosenfield. i also want to thank and acknowledge harvey rose. it has been a pleasure with the board of supervisors to working with him. and lastly, and i want to say most importantly, i want to thank my entire budget team. they're all sitting over here, and to keller kirkpatrick, our acting budget director, can we give her a roun of plauz? [applause] >> and i want to acknowledge my chief of staff, jason elliott, jason, thank you for everything. [applause] >> so before i dive into the specifics of the budget, i do want to acknowledge where we have been over the past seven months. i think we all remember where we were when we heard about mayor lee's passing and the shock that it felt. no one could have possibly

anticipated that our mayor would have been taken from us in december, taken from the city that he loved. we all have endured a lot since that fateful night. many of us have cried, many of us have mourned, but we have come together as a city. we have definitely had our disagreements and debates over the past seven months, but we have stayed together, defending the values of san francisco. and while our local economy continues to thrive, san francisco faces real challenges every single day. well, you all understand that a mother should not have to choose between paying her utility bill or paying rent, the potential of facing eviction or homelessness. we know that clean streets free of syringes and needles should be the norm, not the exception. that parking your car in san

francisco should not induce a panic attack because you think it will be broken into. we all understand that residents in historically under served communities did he serve the resources and -- deserve the resources in a booming economy. they deserve it from san francisco. and as the trump administration attacks so many of our communities, our immigrant community, our lgbt commy, our women in san francisco, and the rights of all san franciscans, we must fight back. we are stewards of the greatest city in the world, and we will rise up to the challenges of today. thank you. [applause] >> now, homelessness has plagued our city for decades, but the situation has never been so dire as it is right now. we will not solve this epidemic

with one single answer, and this budget takes a multifacet multifaceted approach to making a real dent in the issue, to help stem the tight of homelessness and push back on the challenges that have confronted us for years on our streets. i also understand the roots of this tragedy are complex, they are not simple, and they are also not unique to san francisco, which is why over the past few months, i have partnered with ten of the mayor's of the other largest cities in california and advocated in sacramento, advocated with our governor, spent hours in sacramento together as mayors to ask for more than $1.5 billion in our state budget so that cities can address homelessness on our streets because we know the solutions that are working. and i want to say a special

thanks to assembly man -- senator weiner, assembly men chiu, and this budget, as large as it is and as large as the investments are within homelessness does not reflect a single dollar of that ask, and we have had great results in sacramento in committees over the past few weeks, and we are hopeful that additional funding will be coming shortly from sacramento. this budget invests in measures that prevent people from falling into the clutches of homelessness to begin with, while also supporting programs that ensure once they are housed, they will have the support and services that they need to avoid slipping back into homelessness on our streets. we will be compassion driven in our approach, but we will also take strategic common sense measures, measures such as our

encampment resolution teams, because no one gets better by living on our streets at night. the first fiscal year of my budget will include $30 million in new initiatives for homelessness. that package includes an investment to double our home ward bound budget, a measure that reunites struggling families with their loved ones, and last year alone over 900 people were served by project home ward bound, and less than 10% of people returned to the city of san francisco to access services. this is to prevent and divert people from a life on our streets here in san francisco. and when someone leaves the throes of homelessness, they will leave permanently with the resource necessary to make sure they get back on their own 2 feet. in the next fiscal year, this

budget will create 200 new supportive housing units in san francisco. with these units, san francisco will have more than 7,900 permanent supportive housing units in the city of san francisco, the most percapita of any city in our entire country. along with our new units, i will be investing $1.5 million additional funds to support additional housing at our permanent housing sites. this includes $15 million to continue our nav fact center pipeline, helping to secure the creation of four new facilities right here in our city, including the first one dedicated specifically to women and expectant mothers. these resrce heavy centers are critical to breaking the cycle of homelessness, poverty and addiction on our streets. we will fund programs that support families, we will fund program that's support the youth that are homeless on our streets, and i will continue to

support funding for operations that clear our streets of unsafe and unhealthy tent encampments. again, no one's life is getting better by sleeping in tents on streets. we must also address the core roots of the issue of homelessness. we must offer help to those on our streets struggling with addiction, mental illness and other behavioral health challenges. last month, i announced the creation of a new street medicine street which will deliver opioid treatments directly to people living on our streets. this dedicated unit under the direction of dr. barry zevin will offer medication to people ving oour streets. it is a first in the nation program, and it will produce results here in san francisco. every day we are hearing more and more stories of people who have really inspired the rest of us by treating their

addiction and making onto a better life. and for those -- for those that are on our streets that cannot help themselves with buprenorphrine, we have an obligation to step in and offer assistance. we are investing in conserveatorship beds to those suffering from mental illnesses and living on our streets. earlier this year, i announced the opening of san francisco conserveatorship beds. and we will continue to invest in them and other programs that represent help for those struggling with addictions living on our streets. we will continue to operate under the premise of laura's

law, who help family members who cannot help themselves. too often we have approached ssnles as an aable issue and the residents experiencing these issues as lost causes. i refuse to accept that narrative. we will not solve this issue overnight, but we have made a dent over the past six months, and with this budget, we will make great strides in addressing homelessness on our streets. not only in the immediate future but with an eye toward making a dent, and make a permanent lasting legacy of san francisco. we also are fortunate to live in the most beautiful city in the world.

stunning vistas, we have the golden gate bridge, we have the castro district, we have livly commercial corridors. but too often, our picture perfect city is blighted with scenes of trash, litter, human waste, drug paraphernalia. we've seen it all. and that's why i'm adding 44 new street cleaners in this budget to be split up evenly between our city's 11 supervisor asorial districts. we've asked the department of public works to work with our supervisors to make sure they are placed exactly in the areas that they are needed in our city. we are also funding a dedicated street pickup team in the soma district. five days a week, manual labor pickup to pick up the trash to make that neighborhood better. in addition, i'll be funding new pit stops, which are safe, monitored public toilets, and a

proven model to reduce human waste and litter on our streets. no one should be confronted with feces or the smell of urine walking the streets of san francisco. we'll be adding five new pit stops in high volume corridors andd at other pit stops. they are win-win solutions for our communities. they offer struggling residents dignity and safety and keep our sidewalks and streets safe and clean. these additional investments will be paired with ongoing programs, including our dedicated street medicine team, specifically, a team that was created for needle pick ups based on resident complaints, and our fix it team that does such great work in our neighborhoods, and with this budget, we will be expanding from 25 to 35 zones throughout the city of san francisco. we all know that a clean and vibrant city is an economically successful and healthy city.

and just as our city needs to be clean to thrive, it also needs to be safe. car break-ins in san francisco. that's ab one break-in every three hou o our street. s that's unacceptable. to the credit to our police department, they're doubled our foot patrols, creating a dedicated unit within the central police department, and increasing the burglary and serial crime units. year to date, car break-ins are down 20% in the city of san francisco, but we will not rest on our laurels here in approximate our city. this bud will reflect additional investments in our public safety departments. in particular, our police department to make sure we do not slip back. the center piece of this public safety goal is the addition of over 250 sworn police personnel

over the next four years. i have often said that we have some of the best police officers in the country. we just need more of them. let me be even ifi i believe we have incredible men and women of our police department. they put the lives on the line for us every single day, and they deserve our respect, and i am proud of them. but san francisco is a growing, changing city, and we need a police force that grows and changes with it. in the next fiscal year, 130 new officers will be in the police academy, setting the foundation for 250 more officers on our streets. i want to make it clear that these new officers will not be just focused on our property crime epidemic, they'll also be working within our communities to make sure our residents feel safe in the city we all love. these new officers will have the tools and training we have

implemented under our current d.o.j. reforms, such as time and distance strategies, deescalation tactics, and most important, the policy and practice of sanctity of life. my budget contains additional investments that bolster our department of police accountability. we need our residents to trust our public safety officials, to believe that when they need help, they're going to get the services that they need. our department of emergency management teams are now answering approximately 89% of their 911 calls within ten seconds. 90%'s the nshl standard. we are investing $9 million to bolster that department to make sure we exceed the national standard and make sure the residents know when they pick up the phone and dial 911,

they're going to have a life person on the other end of the line. it can mean the difference between life and death, and san francisco can do better. we are also investing in significant new equipment for our firefighters to make sure that they are able to respond quickly and that they are able to do their jobs safely for our residents. we have also been a city that has opened our doors and right la lane -- welcomed the refugees of hate, bigotry an and oppression. we make sure that ery person untandshey are an integral part of our city. regardless of where you were raised, no matter where you come from, no matter what neighborhood you are from, you are a part of san francisco. [applause] >> and i am well aware of the

persistent disparities that exist in our city, and without these budget dollars, without accountability to out comes will not be successful in reducing widespread disparities. i'm also well aware that too many communities and populations are systematically stuck outside the prosperity of our city, particularly communities of color. this budget continues to invest in these communities that are margedinaliznd most vulnerable. our community's most impacted by the delusional policies of the trump administration, and those communities that face persistent and widespread disparities. we're investing over $7 million over the next two years to provide representation for immigrants facing deportation among other legal and support programs. we will be providing our community-based organizations who are on the front line every single day with resources so they can support our own immigrant communities in san

francisco. i'm here emphatically once again to say that we will not cower in fare to president trump and the federal administration, and we will never embrace their ideologies of bigotry and hatred ever. and if our city is to truly succeed, we need to lift up every single community and put the right support between everybody that calls our city home. that is why this budget includes over $7 million for additional criminal justice reforms, including initiatives to expand pretrial monitoring and bail alternatives, ending onerous local fees, and supporting our street violence response team. we will continue to fund workforce programs so every san franciscan from every neighborhood can be a part of

our growing economy. i want to thank our union partners who are collaborating with us to making sure the residents can cl san francisco home can also be a place where they can work. we're ensuring that the next generation of san franciscans, which is who we are fighting for, have good paying jobs and good benefits. and thanks to the passage of the soda tax, we will now dedicate $10 million annually to address health inequities, with a specific focus on communities, low-income communities and communities of concern that have disproportionately been affected by our health crisis. and we will provide support and resources for vulnerable communities when our city does not. as evidenced by the $4.2 million that we are investing for hiv and aids programs, backfilling local initiatives that were subject

to federal funding cuts brought on by an administration that once again does not even respect our local communities and has no trace of empathy for compassion. in san francisco, we do it different. i am proud to make sustained investments in these communities, and i'm also proud to do it in a fiscally responsible manner. we need to maintain our long-term investments, and this budget includes nearly $450 mil i don't kn -- million in reserves. i don't think anyone in here has forgotten the great recession, and it's not a question of if, but when the next town turn happens. in april, i issued an executive directive to expand our economically -- our economic resiliency plan so that our

first in the nation policy will now have detailed and specific recession scenarios, allowing us to plan and then respond accordingly when signs of the next economic downturn arise. there is a reason that mooney's have upgraded our bond rating to the highest in approximate our city's history, and to the highest level possible. it's the result of responsible fiscal planning, an approach we mirror when dealing with our long-term investments and our capital projects. and for the second consecutive year and the second year in our city's history, our capital plan will be fully funded. we are providing historic levels of investments in our parks, on our streets, and our seismic infrastructure. the capital budget will strengthen our seawall and repair, rebuild, and work on our critical infrastructure

assets, such as the yslais creek bridge and our 911 call center. we are providing more than $100 million for street resurfacing projects, ensuring our roadways are smoother, safer, and easier to travel on because i don't believe anyone thinks the conditions of our streets today are acceptable. these are not just investments in our bridges, our streets, and our roads, and our waterfronts, these are investments in the very future of the city of san francisco. [applause] >> and because i care very deeply in the future of this city, the city where i was lucky enough to be born, lucky enough to be raised, and where i have lived my entire adult life, i am honored that this

budget fulfills many of the legacies of our late mayor ed lee. i truly believe this budget would make him proud. i believe in the greatness of our city, in our residts, our leaders, and i want to leave this office a place where the next mayor, whoever that may be, will have every opportunity to succeed. to that end, i do commitment to the next mayor my full support both personally and with my staff to make the transition before -- between our administrations as smooth as possibleaus i believe that no matter who holds the office of mayor, as san franciscans, we will all have a vested interest in the next mayor's success, and i pledge my complete and full support to make that happen. the poe el dylan thomas said the following about our amazing city. he wouldn't think such as place

as san francisco can exist. the wonderful sun light here, the hills, the great bridges, the pacific at your shoes. beautiful chinatown, every race in the world. the sardine fleets sailing out. the little cable cars whizzing down city hills, and the people are all friendly. that is a san francisco we all love and know. that is a san francisco we all aspire to be, and that is a san francisco we will be. thank you, everyone, for being here, and thank you for your time. [applause]

>> let me know wn you're ready. >> good evening, and welcome to the may 23rd, 2018 meeting of the san francisco board of appeals. board