. >> for more information about [gavel] supervisor chu: i am supervisor chn -- chu and this is the budget and finance meeting. would you please update us? we have a short agenda. thank you very much. this item is a hearing on the ongoing budget update. we will get to item number two very shortly. so quickly, for the update on the ongoing budget, is there any new news specifically with regard to the federer budget or the state budget. >> the mayor's budget director. i will be brief. we will have some more soon in the relatively near future. the governor may revise these on the 16th of may. they will look closing the remainder of the deficit and the plans for the november ballot or special election. additional cut proposals. my guess is that we will start hearing ideas trickle out about what we are going to see within the next week or so, but we will actually see it in mid may. probably the working assumption by the time we have just met the mayor's budget on june 1, there will not be much certainty given that he is going to have to make a proposal on legislature over the summer, so we will

supervisor chu: thank you. >> i just also wanted to highlight the work that is being done to strengthen this legislation. it is obviously going to a good place. i wanted to circulate another thought. we have been dealing with some of the local hiring challenges out of some of the folks from sacramento. we would have loved to get this to the committee earlier, but spending some time with our partners in labor, we came up with an interesting addition to this legislation for consideration, pursuant to whatever process needs to happen. we have already vetted this with our partners in labor. we could call it an area of standard wage amendment that seeks to leverage the need to get our unemployed tradesmen and tradesmen back working. particularly union members. there has been a lot of discussion as to how to do that. added to the list of requirements at page 3 of 23, perhaps language that would say that during a period of exemption a contractor business seeking to take advantage of the exclusion would utilize contrac

supervisor chu: thank you. >> thank you very much. supervisor chu: did anyone else have a question for the roster? again, this item does not have any associated recommendations, so there are no actions on this item, for say. that relate item -- covers items #6 and item number 7. item number eight, is there anything that the budget office would like to add on this item? >> every year the controller takes a look at the contrasting proposals to determine that they are less costly to be provided as required by the charter. we have done so for the enterprise departments, including public parking at the airport, security at the airport, and shuttle bus services. as a pork we analyzed janitorial and security services. we have determined that they are less costly than they would be if performed by civil service. i know that many of these contracts that out programs have been contracted for decades. supervisor chu: so, for the items that we have, 5, 6, 7, 8, we bill not be taking public comment today, public comment is scheduled for tomorrow.

supervisor chu: ok. let's go to the budget analyst report. >> madam chair, members of the committee, debra newman. as she indicated and as shown in our report on page 4, table 2, the current lease with asi anna airlines is at a rate -- asiana airlines it is a result the $943,146 per year under the new lease. although the square footage would remain the same, the rental rate per square foot will go down to $21.40 so there will be a total of annual estimated revenue of $849,000 or a reduction of $94,037 per year. however, because of the airport's residual rate setting methodology that there will not result in any budgetary shortfall overall for the airport because the cost will be reallocated and rerecommend approval of the proposed lease. supervisor chu: why don't we open this up for public comment? are there any members of the comment who would like to speak on item number one? seeing none, public comment is closed. can we move this item forward with recommendation? we'll do that without objection. thank

supervisor chu: thank you. there are a number of attrition savings that the department agrees upon because of late dates of hiring. i would be fine with the recommendation. so is the board. in terms of the recommendation of it being one time in nature, i would categorize it as that, as the savings are only going to accrue for not paying the salaries for one year. you're number two, will not have the savings because it will be a full-time individual by that time. >> first of all, i do not think that we have attrition savings in the port. we do have it in the airport, quite a bit. historic way, madam chair, since we have been reviewing the budgets, attritions savings has been a constant and ongoing savings for the city. i understand your point. we could look at this either way. but certainly, historic way, the mayor's office takes a certain factor of attrition savings. historic with a budget analyst reviews that and comes up with either an agreement or recommendation on an increase, so that is why we have kept it

supervisor chu: thank you. supervisor kim: i wanted to thank the chairman for asking some related questions. i wanted to clarify, in terms of if you could go over the breakdown of property taxes that the general fund receives, what are the two great papilla >> under redevelopment, if there is a dollar of property tax, currently how it works is 80% of that property tax could be used for redevelopment. 20% of that is set aside for affordable housing. the remaining 20 cents is distributed to taxing entities. much like the dollar property tax. the school district would get 7.7%. under this scenario, the city is able to allocate a portion of its 65 cents. the general fund portion. it continues to go to taxing entities. the school district actually benefits under the ifd scenario. they would continue to get 7.7 cents on the dollar. under redevelopment, they get less. they only get 7.7 cents of 20 cents. other taxing entities also benefit from an ifd supervisor kim: the one thing -- an ifd. supervisor kim: could you c

supervisor chu: thank you, we are adjourned. supervisor chu: hello. welcome to the regular meeting -- actually, a special meeting of the budget and finance committee. mr. young, do we have any announcements? then i guess. please turn off all cell phones. if you wish to speak during public comment, please fill out a speaker card and turn them in to myself. if you submit documents to the city, please provide copies to the clerk for inclusion in the file. items discussed today will appear on the board of supervisors agenda on june 2, 2011, unless otherwise stated. supervisor chu: thank you. we had a number of items that are not part of the budget process budgetper se, -- part of the budget process, per se, but we would like to dispense with those first. >> item 1, resolution approving the issuance of water revenue bonds and water revenue refunding bonds to be issued by the public utilities commission of the city and county of san francisco, affirming covenants contained in the indenture pursuant to which the water revenue bonds are issued, authorizing th

supervisor chu: thank you. >> good afternoon. my name is joseph [unintelligible] and i have a couple of issues concerning this. first of all, i was wondering if there would be any problems between municipally created stations as opposed to privately-owned, disrupting the market process. also, would these be exclusively available for san francisco residents only bella or are commuters going to be available to use them? thank you. supervisor chu: thank you. supervisor mirkarimi: i had a couple of quick questions. i think that this is a very fitting step forward in the city's ordinance commitment towards the climate action plan. i think that this is consistent with what our goals have been for the last four years. for public knowledge, where is the energy coming from. what is the source of electricity? >> for the chargers on municipal property, in almost every case said francisco public utilities commission. supervisor mirkarimi: i think it is important to underscore that point, something that we should be proud o

supervisor chu: thank you. supervisor mirkarimi. supervisor mirkarimi: is this anticipated in the anticipated budget about what it would beif ab 109 takes effect, and we will have to cover the unreimbursed portion? >> yes, i am glad you asked that question. there are some calculations based on the assumptions, and there is a graph or a box chart the we think it shows you what will be in the next is clear. $2.60 million. it is always cheaper to have them in jail alternatives these require monitoring and home detention, because that is also relatively cheap. and our proposal would be to increase this by $3.60 million. this is like a wish list. however, for example, judges could say, "no jail alternative ." caught if those things were going to be reduced, and we do have, i would say, a very good working relationship with the courts on the programs that we have. we also love and service unit that goes out and apprehends people i think we will be able to work with the court's -- courts. supervisor mirkarimi: but the

supervisor chu: have they typically been so high? i am just wondering, does your fund balance usually run at that level? >> actually, it is a bit of a moving target until august. i was surprised that it was this high this year. supervisor chu: do you have a reason why it was so high this year? >> i do not. it could change again. supervisor chu: could you find that out and share that with the committee? >> our lead. supervisor chu: i think that a lot of people are going to be relieved that there is one less feed in terms of going up in price, but in terms of charging it cries for operating expenses, generally you are relying on half a million dollars' worth of fund balance to pay for operations. clearly having the balance in using it for offsetting costs is good, i am just wondering at what point do you start to think about changing that the amount so that you are collecting what it is the two are spending? >> i do not believe that that is within our control. we do not have the discretion to do that. >> madame chairwoman, we will take

both chu supervisor chu: hello. welcome to the regular meeting of the budget and finance subcommittee. our clear today as mr. victor young -- our klerk today is mr. victor down -- our clerk today is mr. victor young. do we have any announcements? >> if you wish to fill out a reduced make a comment, please fell at a speaker card and submitted to myself. items discussed today will appear but on the board of supervisors vision on may 17, 2011, unless otherwise stated. supervisor chu: thank you very much. would you call item one place? >> item 1, resolution approving and authorizing execution of modification one of lease and use agreement l-10-0084 was emirates for lounge space in the international terminal, boarding area a, of san francisco international airport. >> good morning, members of the committee. the airport is seeking your approval for release modification to its existing lease with emirates in order to add an additional 9502 square feet for the airline to construct a post-security lounge for the passengers i

supervisor chu: thank you. we are adjourned.

supervisor chu: it is hard. i learned that my shoes were out pretty quickly -- wore out pretty quickly. i learned to be more practical about the types of shoes i war, of course, but overall, i learned how important it is to communicate with people about what it is you would like to do. in any campaign and any political idea that comes forward, there are misconceptions about candidates, about people, about issues. the most important thing you can do to break through that is to have direct conversations in people's living rooms and talk to them about the issues that you see are pressing and what you are working on and explain your values to people. at the end of the day, they can choose to support you or not support you, support your issue or not, but at the end of the day, at least you are not perpetuating misinformation. at the end of the day, i enjoyed getting to know the people out there. in terms of interesting jobs, this has to be one of the most interesting jobs. you work on a whole host of issues all year

supervisor chu: thank you. >> good afternoon. my name this [unintelligible] and i would like to urge you to release the community opportunity funds at this point. our organization, as well as different fund best groups out there have been working in support of the opportunity fund for the last year. the first round was immensely successful. what this grant does is allow people to get excited about their parts, even though they may not have received grant funds through a total renovation funds. communities are coming out of the works. every workshop we have held, community members that have never been a part of the parks system in a formal way are coming out and offering additional money. it is a very exciting process. one that we feel very supportive of. once again, we really just urge you to go ahead with this. thank you. supervisor chu: thank you. >> my name is [unintelligible] also of san francisco parks trust and i would like to urge you to release these funds as they assist in the designing an application of applying for fun

supervisor chu: thank you. we are adjourned. [horns honking] announcer: big dreams and good grades aren't enough to get into college. there are actual steps you need to take. finding someone who can help is the first and most important. for the next steps, go to knowhow2go.org. captioned by the national captioning institute --www.ncicap.org-- supervisor chu: hello, about an to the regular meeting of the budget finance committee. -- welcome to the regular meeting of the budget finance committee. our klerk today is mr. victor young. are there any announcements? >> please turn off all cell phones. if you wish to speak during public comment, please submit a speaker card to myself. items act upon today will appear on the board of supervisors agenda, may 10, 2011, unless otherwise stated. supervisor chu: thank you very much. please call item no. 1. >> item #one. hearing regarding the city's five-year financial plan, a requirement of proposition a (2009). supervisor chu: thank you very much. this is the first time that it is required.

supervisor chu: ok. the other thing for the real- estate department -- there are a number of spaces, as mr. rose rightly pointed out, that are currently occupied by the different divisions of the mta that would be moved to this consolidated location, but the plans do not really reflect a shrinking of the use of those spaces in particular. there is a little bit of space that will be given up at once of venice, but other than that, there is not a lot of change. have you fully evaluated whether or not there's an ability to give up that space or perhaps make available for other departments that might be looking for additional places, or for rent? >> with regard to 25 then s, that is something that would be released for other departments to use. the other location, really is an operational issue. there is some redundancy. the lenox facility remains available as a back up, so it is not something that then becomes available for new tendency -- tenancy, nor is it really suited for any other city use. it is a ver

supervisor chu: thank you. why don't we go to the budget analyst report? >> as indicated, this increase in space would result in an additional $1,538,374 in rental revenue from emirates, payable to the airport. as you know, because of the airport's break-even policy, there would be no fiscal impact. we recommend you approve the resolution. supervisor chu: thank you very much. if there are no questions, why don't we open this item up to public comment? are there members of the public who wish to speak on item 1? seeing none, public comment is closed. supervisor mirkarimi: motion to approve with recommendation. supervisor chu: we have a motion to send the item out with recommendation, and we can approve that without objection. thank you. item two. >> item two, resolution authorizing the director republic works to execute an amendment to the constructive services management agreement for the laguna honda hospital replacement program, changing the amount from $15,303,429 to $16,196,764. supervisor chu: thank you. i

supervisor chu: thank you. public commsupervisor chiu? supervisor chiu: i need to understand where this money is going. 72 jobs created over the past few years with $11 million spent overall. a lot of this money, obviously, is going to these six companies, but not being used to create these jobs. supervisor chu: barbara, also, since you worked in conjunction -- if you can. >> yes, supervisor. i'm the assistant manager for power. where did -- the question is, what portion of the dollars went towards jobs? supervisor chiu: exactly. >> i don't have specific data on the portion that went toward jobs. the with the program works, we make payments to the installation. in our experience, most of the cost of solar installation is in the materials and in labor. i would expect that most of the incentive payments that we make go toward those two areas. supervisor chiu: thank you. supervisor chu: thank you, supervisor chiu. i believe we have agreement with the recommendations at this time with a few adjustments to it. if we

supervisor chu: a good question. the deficit that was included in the joint report has been changed in this projection. the reason for that, we have the nine month report that is scheduled to come out early next week. that is the third quarter report where we look at current year's spending and revenues. as

supervisor chu: chu. -- supervisor chu: thank you. >> there are challenging decisions. i think general manager harrington -- i think we have somebody we can work with to make sure we do everything that we can do. i'm here to advocate that we increase funding for this program and i hope we can work together to do that. after supervisor mirkarimi added a low-income incentive fees, an amazing little peace to add to this, as well as a work force component. as a result, we have seen the jobs created among economically disadvantaged communities. the job numbers have created a little confusion and questions that need to be resolved going forward. it allowed miss jackson to become ambassador jackson when she went solar on may 21, 2009. i remember it like it was go solar. -- we have 24 to 25 football fields worth of panels to superchu's question of how many panels, -- supervisor chu's question of how many panels. 85% of which happened when we started this program. it's also a jobs program. in an industry that we now see the chance of becoming a unionized work force. at this mome

supervisor chu: thank you very much. next speaker. >> i am the director of the filipino community center. i'm here today to express appreciation for the funding we did receive through the block grant program, particularly our work in the excelsior neighborhood, serving over 15,000 filipinos, documented and undocumented. in the last year, we have seen a huge increase in the number of people who need our services. being able to come to a place that is centrally located in the community with a lit where we have been able to put people to work, help people find housing, address their needs around immigration and domestic violence, and this is because of our ability to provide culturally competent and neighborhood-based services. we know this is a difficult time and have had to readjust our programs and focus on the core strategies that are most in need in our community. while we have in the past increase resources around a point of support services, we are refocusing our program to address that difficult need in these diffic

supervisor chu: thank you. supervisor mirkarimi: a quick question, is it completely free to the customers? or is there any kind of charge at all? i know that some airports require $9.95. or you are supposed to go through a service provider. >> this would be completely free. similar to -- i keep using sfgate as a model. salon.com, they have an advertisement that you can go through. but there is no charge. supervisor chu: let's go to the budget analyst report. >> if you approve this lease, the airport will receive about $1,375,000 over five years. this appears to be an excellent deal that the airport has obtained. with t-mobile, the airport was paying? to provide the free white 5 service -- wifi service. now the airport will be receiving revenues. advanced wireless will be offered -- authorized to advertise on the opening web page. that is where they would get their revenue from. overall we think that this is an excellent deal, as i stated. and we certainly recommend approval of this resolution. supervisor chu: l

supervisor chu: thank you. while we were on the local hired discussion, were there any changes to the higher rank as we switched financing from development? a kind of obligation on local hire or not. >> to be clearer, a local hire in the city will further improvements being made by the developer as they are not direct between the city and the contractor. if we hire a contractor to build a new road, in this case the developer is actually fronting the funds and may not be reimbursed completely. may not be reimbursed for 30 years after they make those improvements. in the agreements, a local hire would not apply. supervisor chu: i do not know where this is not considered public works. you would get a policy goal, but take the shipyard. those were implying treasure island? >> we had not formulated by our jobs at the program. supervisor chu: it would be good to know if there was a comparison between training and local hiring policies. thank you. supervisor mirkarimi? supervisor mirkarimi: still on the thread of the

supervisor chu: ok, go ahead. >> roll call the motion passes. supervisor chu: thank you. please call item two. >> resolution authorizing the lease of 39,573 sq. ft. at 1455 market street for ten years plus options to extend for the san francisco municipal transportation agency's transit management center. supervisor chu: thank you. we have a number of individuals who are here for this item. i believe mr. updike from the real estate division will be presenting. >> thank you, madam chair, members of the committee, john updike, acting director of the division of real estate. we are seeking approval and lease for sfmta transportation management center. i am going to give you just a brief overview of the real- estate issues, followed by sfmta's staff presentation on the specifics of the center itself and the benefits of co locating a variety of existing functions at that center. first and foremost, this project is about improving the resiliency of our transportation system, particularly, the command and control of operations. it was in that spirit that a site the said the stud

supervisor chu: thank you. we have a motion to send items 9 through 12 to the full board without recommendation at this time. we will say that we have got the motion and a second. thank you. supervisor mirkarimi: can we be clear, when this returns to the board is on june 7? is that right? ok. supervisor chu: we are running fairly late on our schedule. we do have a regular, fully constituted committee starting supposedly at 1:00. we have one more item before us. if we can call that item, this is the release of reserves for i.t. for people here in the room for the 1:00 session, likely will go to a short recess and then come back. thank you. supervisor chu: if i can as those here for the previous item to lower your voice is or move forward so that we could finish our agenda? that would be great. mr. young, please call item no. 7. >> item number 7. hearing to consider release of reserved funds, department of technology - committee on information technology fy2010-2011 budget, in the amount of $3,196,686, to fund th

supervisor chu: thank you. with regards to redevelopment, there are still a number of things that aren't certain that -- and certain that the state level -- under certain at the state level. can you tell me why we should be moving forward with an ifd, given that the finances there are not as good as a redevelopment area? >> there have been a couple of bills over the last couple of weeks that have been put forward regarding the development. those bills have been tabled by the legislature. it is still uncertain what will happen with redevelopment. the amount of increment propose to be available would be significantly less, perhaps even less than what is available. while we do not know what will happen to redevelopment, we are fairly certain that it will not be as robust a tool as it is now. the mayor is certainly on record as saying that he would like to see redevelopment continue. that we do right. our anticipation that the state level, given the vote that happened a couple of months ago, it narrowed the past by