supervisor chu: thank you. mr. rose, any comments? >> no, madam chair. supervisor chu: ok, colleagues, can we take a motion for dpw. without objection. to ethics commission. >> good afternoon, supervisors. the commission agrees with the revised recommendations from the budget analyst. supervisor chu: any comments? >> madam chair, and no additional comments. supervisor chu: 2 we have a motion to accept a budget analyst recommendations? we have a motion. we do that without objection. thank you. >> good afternoon, supervisors. in the past week, the city administrator's office work with the budget analyst and came to agreement on many things. on the current cut list, we agreed to the recommendations on page 68. however, there are four items we would like to discuss today. the city manager 0932 position, the earthquake safety implementation program, the community specialists that would go into the neighborhood power network division, and attrition for gsa hr. supervisor chu: can you just speak to the items you're sa

supervisor chu: thank you. to follow up on that, it sounds like in the past, the department received a master lease approval through the board from 2010 through 2015 with a not to exceed amount and during the course of several years, some of the actual locations might have changed or there were things that moved around a bit. going back to supervisor kim's point, if people were beginning to occupied hotel in july of 2010, it seems like there was a lot of time that passed -- >> 2011. excuse me. the reservations were finished and it was occupied of august of that 2011. it still has been almost 12 months since the hotel was occupied. supervisor chu: so there was a time when it seems like you could have come back quicker. i'm wondering does the department see this is an issue? would there be a challenge coming back to the board more frequently to update us about where things are changing or do you perceive this as within the contract authority? help us understand that. >> the code says we need to come back when we

supervisor chu: thank you. next speaker. >> good morning budget and finance committee. ♪ and you left your home in georgia, headed for the frisco bay ♪ and that you were hungry and you sure wanted vegetables today ♪ you are sitting on the wholesale dock of the day watching the expansion get bigger today ♪ and give us a dime ♪ looks like it's never going to change but you can direct, i know you will do it ♪ ♪ make the markets fine ♪ ♪ i do believe you wanted it this way ♪ ♪ and i do believe it will expand bigger today ♪ ♪ it is all right now ♪ getting bigger every day ♪ it is all right now ♪ the farmers' market is going to expand bigger today ♪ ♪ is all right now ♪ it is going to expand bigger today ♪ ♪ [bell] chairperson chu: thank you very much. are there other speakers? >> good morning, supervisors. my name is john r. and i'm here to talk about how -- john navarro and how -- i'm here to talk about how we are here to get many more back to work with the farmers' market. the bayview training academy is a 12-week

chairperson chu: thank you.o wish to comment on item number five? the none, public comment is closed. >> i want to extend gratitude to mr. rose, and especially to the produce market corp. and the folks who came out to speak today. i believe the concerns raised by our budget analysts have been added -- adequately addressed and i urge your support. supervisor avalos: this is actually a pretty exciting thing to be coming before us. i see there is economic benefit. i am curious about why there was not actually analysis from the comptroller's office about the overall economic impact that the wholesale food market would have. it seems that since it is a major economic engine and we are talking about going to a major lease, is there anything in particular that might determine when we will see such a report? >> dispatches, frankly, does not lot -- rise to the level of materiality of the bigger impact reports. the role of items that we use is the annual change in economic activity equivalent of $10 million or more. this

supervisor chu: thank you. i appreciate the comment on the accountability component. i think that is something we all look for. the consumer protection dollars, roughly $5 million, but that leaves a balance in the pot of money. are there other eligible expenses he might be able to use out of that? i'm imagining it is not restricted to say it has to be for the city attorney? >> yes. i was thinking of one settlement, supervisor. i have more. supervisor chu: great. >> i have about $8 million there, but it is restricted. this goes back to the discussion with ms. howard. i appreciate all of her help. i appreciate a greatly expanded program. in your standing mayor wants to see how something will work -- i understand the mayor was to see how something will work. there are things it can be used for, but it has to be used on behalf of the city attorney's efforts. what i am telling you is in use -- i am willing to use that money for what our general fund responsibilities to help me investigate and prosecute and pursue co

supervisor chu: thank you. why we go to the budget analyst report? >> thank you. on page 6 of our report, we report the estimated net payment to the airport over the 10-year agreement, that would include the one-year option, the amount they would pay to the airport is estimated at $1,500,000 and we recommend you provide retroactive approval through july 1, 2012 and in the resolution to reflect the not to exceed amount of $80 million to be paid and the -- and approve the resolution as amended. supervisor chu: are there members of the public who wish to speak on this item? seeing none, public comment is closed. we have and and and and it to forward the item as amended. we will do that without objection. item number two, please. >> resolution authorizing the department of environment retroactively except and expand an american recovery and reinvestment act of 2009 funded grant in the month of $1 million from the california energy commission state energy program through the local government commission for green fin

supervisor chu: ok. i know we will run through these last five departments quickly. rather than break for lunch, let's see if they can get here quickly. supervisor kim: in order to allow the apartments to be here. here's our city attorney, mr. mr. herrera. >> thank you. i imagine that the budget analyst put forth there recommendation? >>supervisor kim: we ask for recommendations and then we get the budget analyst response. >> thank you. we will have discussion and answer some question from last week and get clarification, particularly as it relates to supervisor cohen and supervisor kim. i want to follow-up on things they focused on. as you know, we did not agree with the budget analyst recommendations. we have been working on cuts that will allow my office to meet our core mission, and we came up with approximately $250,000 in cuts would to see reflected in the report. we disagree with the budget analyst policy recommendation. a bit like to focus on -- we were differing over essentially two decisions. t

supervisor chu: thank you.ther members of the public who wish to comment on item number six? seeing none, public comment is closed. do we have a motion to accept the budget analyst recommendation? we will do that without objection. with regard to these amendments come are these amendments we can authorize you to make or what we require these to be made by the department? >> i can make these amendments. supervisor chu: why we modify the motion to accept a budget analyst recommendation and authorize a clerk to make the amendment on the legislation that appears on the tuesday agenda. >> so moved. supervisor chu: we will send the item ford as recommended. without objection. -- send the item for word as recommended without objection. item #7? >> item #7 -- a resolution authorizing the san francisco public defender's office to accept and expand a grant in the amount of $117,819 from the state correction standard authority for the purposes of implementing local juvenile justice accountability measures through the juve

supervisor chu: thank you. supervisor wiener? supervisor wiener: with respect to the two requested public projects, environmental planners, my understanding is that will be funded through the budget and then they will not be billed out to the other departments? >> correct, through general fund. supervisor wiener: i think i mentioned this last time. having gone through a number of these public projects, it is a real fire drill every time making sure that we can get staffing from the planning department and making sure to move these projects forward in a timely manner. it undermines confidence in the public spending and capital process when we have a project that is moving forward and then it has a hit but because there is a delay in the environmental review. most recently, and dolores park, the department, they did the timing bet needs, but for a while, it was dicey about whether we could move through environmental review in the way that we had planned. i do think there is a good argument for having these planne

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

chu -- supervisor chu: thank you. are there other members of the public who wish to speak on items one or two? seeing none, public comment is closed. supervisor kim: i would like to introduce an amendment for item two, which is the business and tax code, the one that is being co-sponsored by supervisor avalos and myself. i would like to add in the same language that is currently in the mayor's proposal and president chiu's proposal amount tax exclusions that have been put in. supervisor chu: to the city attorney or controller's office, would you indicate what that language looks like? >> do you know what section you are talking about? it would help us go through supervisor kim: i am looking right now. >> hold on. we have to locate the language. >> i am looking for it as well. my apologies. i should have brought copies with me. i merely want to replicate that language said that it is identical on both charter amendments. supervisor chiu: i believe part of it starts and section 921 with the charter amendment, but i will

supervisor chu: thank you. i think that supervisor kim and supervisor avalos have a good point in wanting more clarity in the project, but i would not want to hamper the ability for the real-estate department to be about to finalize those leases and do negotiations. perhaps if i can ask the makers of the motion that there would be willing to intimate -- entertain perhaps half of it being on reserve, so $113,000 on reserve? to the makers of the motion, would that be something you would entertain? ok. so if you can, perhaps what we would like to do -- a seconder. so i will make a motion to reserve $113,000 of that funding on budget committee reserve. >> thank you so much. i appreciate it. supervisor chu: we will take that without objection. thank you. our next department is the police department's budget. from my understanding, the bulk of the recommendations are the police department's budget. however, there is one of recommendation, i believe, that is related to the occ, and that is on page 39. correct? >> corr

supervisor chu: thank you. >> can i? supervisor chu: go ahead. >> you pointed out the issue of planned migration with a risk premium costs. i wanted to give you an example of how significant this is. over the past few years we have had 4000 members move out because of the rising cost of the shield premiums. in this last year we kept the premiums constant and only 300 people moved. if we had 2000 members moving out with their families into kaiser coverage, the city would save $9.8 million. but the loss of those younger, healthier families in the risk pool would increase the aggregate blue shield premiums, because all you would have left are sick, middle-aged people. to balance the risk pool, you need help the families in both. that is why they apply only to dependent coverage. so, in the long run, there is still a lot of work to do. as you pointed out, this is a short-term solution and only the second time we have done this. it is essential in order to negotiate good premiums that we have competition in the heal

supervisor chu: thank you. ok, colleagues, do we have any other items? supervisor wiener: actually, i thought was of the planning department coming back? supervisor chu: the planning department is, i believe, at their commission meeting. supervisor wiener: ok. supervisor chu: given we have gone through our department at this time, colleagues do we have a motion to combine items three and four? do we have a motion to continue the combined items one and two to our wednesday meeting? without objection. do we have any other items? >> beckham please the agenda. supervisor chu: thank you. we are adjourned. >> welcome to "culturewire." today we are at recology. they are celebrate 20 years of one of the most incredibly unique artist residency programs. we are here to learn more from one of the resident artists. welcome to the show, deborah. tell us how this program began 20 years ago. >> the program began 20 years ago. our founder was an environmentalist and an activist and an artist in the 1970's. she started these st

supervisor chu: thank you. colleagues, any thoughts or questions? what i would suggest is that the budget analyst in the fire department cfo to get together and hire nine -- iron out the information. i want to make sure the levels we have in there are realistic and based on the position the department believes they have, because otherwise they will come back with a supplemental, which is not something i want to see. on materials and supplies, i want to make sure if we do have you operations opening up, that we do account for it. that being the case, i want to make sure we have the expenses we expect to have. supervisor avalos. supervisor avalos: i appreciate more time to sort things out, but i would be ready to take this recommendation as it is, given that there is plenty of time to work out the differences, and it was not until the last minute that there was an effort to push back on this recommendation. i believe the department is facing retirement, savings that we can expect to have as well. i will wait unti

supervisor chu: thank you. we do have a question. supervisor kim? supervisor kim: you to agree with this above the policy recommendation? >> yes. that number was not there last week. it's what i put forward to reach a good settlement. i still want to go forward on that. i just disagree with the pollyanna -- with the policy analyst. supervisor kim: the money listed as the potential general fund safety, you're saying that is not. that is typically allocated to you through the consumer protection fund? >> that is correct. if you don't approve the positions, that money is restricted. supervisor chu: ok. that is a point of clarification. you are bringing in fees or penalties or money that comes in for the purpose of $1.5 million? correct? >> no, that's incorrect, supervisor. let me tell you. there are two points. last year, i received settlements of $1.6 million, and in my effort to contribute to the general fund, i said, you know what? i will find $1.6 million. i will find that out of the penalties that

supervisor chu: it gets reduced -- >> yes. supervisor chu: thank you. with regard to the budget analysts recommendation? this is an allowance under the initiative. and the budget is assumed before you. >> madam chair, eyes -- i fail to mention the control, which is $6,653, and that is ongoing savings that would allow an increase in the budgets department of the 6%. >> if there are no questions from the committee at this time, let's move on supervisor avalos. >> i'm not sure if my staff had contacted the control office about the small-business exemption that we preliminarily passed last tuesday. it does show a hole in the budget of two million dollars and i think it would be important to consider within the context of the budget and last week we approved it without an improvement in the budget. it did not seem to go anywhere. as we are looking added, and having a discussion about the decision that we made last week, about whether we want to put a two million-dollar hole into the budget, that means we have to restore $2 million before we want to do any ki

supervisor chu: thank you. budget analyst report. mr. rose, a community the area where there is disagreement when you go through the report? >> madam chair, members of the committee, in general, for all departments we have not yet finalized agreements or disagreements, in general. so we report to you today that most of these recommendations, and there are some exceptions, are preliminary in nature, and we work with the departments and report back next week. with respect to the city attorney, our recommended reductions3 total reductions69 -- $369,000 plus, and it would still allow an increase of 3.8% in the department's 2012-2013 budget. then our recommendations totaled $383,506 for 2013-2014. those recommendations are ongoing savings and would still allow an increase of 4% for the budget. the disagreement as noted are the positions that are shown on page 64 of our report, and we will work with the department and report back to you next week. supervisor chu: thank you. in terms of page 65, the recommendations, t

supervisor chu: do we have that motion? without objection. >> if i may talk a little bit about the staffing of the whole office. these positions are really essential for the department of public health. i can tell you that since he has been in this office, i speak to him if not bailey, multiple times a day to try to coordinate with so that staff is important. i hope you know my support for that. supervisor chu: thank you, director garcia. another request last week, so in regard to these, if you can come up and share information with the committee. >> good morning. and do you want to ask a question or do you and me to talk for a second? supervisor kim: speaking generally to these positions listed under the policy recommendations, i know some questions had come out and this is within the department so i apologize for not bringing you up prior. just some questions regarding the recent budget requests around enhancing shelter staff and our housing rental subsidy program. i know is in large part with initiatives with ho. >> i wi

supervisor chu: thank you. john updike, again. >> here be secure approval in the exercise of eight five-year option for this 52,200 square feet of sub-leased space. we have a map to give you the context of with this location is. the subject is highlighted. they then lease it to the llc of record, who some leases it to the city. we operate cal fresh programs. there are just under two employees at this facility. the city has been a tenant here since 1983. in consideration, they will be carpet in rebate the facility, an expensive $200,000. the renewal rate is fixed for the entire five-year term at $23.28 per square foot, per year, estimated to be 95% of a fair market rent determined in this case by an independent appraisal analysis and an agreement by the landlord and tenant as to the rate. in that appraisal, the following compare robles, unfortunately rather small on the screen, my apologies, indicate a range similar to what we saw in the last item, very varied. of course, we are at the lower end. on top of that,

supervisor chu: thank you for that. i know that supervisor cohen is a co-sponsor and i will turn it over to you for comment. supervisor cohen: thank you for allowing me the opportunity to join you this morning. the produce market is a vital hub in the southeastern part of the city. for six years, have been supplying missile of fresh produce, employing local residents and distributing millions of dollars to payroll tax to our city. before slow food was fashionable, for decades, the produce market has been trying to increase food equity and our neighborhoods which have traditionally lack access to quality food. this new lease is a tremendous opportunity to build on the relationship the city has had with the market, corporations and small businesses that operate there. the item before you today provides the produce market with a new 60-year lease that will facilitate a large expansion of the market, updating facilities and creating new, expanded space for those who want to stay and grow in the city and tenants looking to l

supervisor chu: thank you. just a final question -- with regard to the revenues that would come in, from my understanding, the revenues would accrue to the city or accrue to pay for debt service is is generally as i understand that net revenues. what effort expenses the produce market incurs would be netted out of iran collected from folks who do not participate in that area. a key to maximizing how much revenue the city gets is making sure expenses are low or reasonable so we can see as much revenue as possible. how is it the city has a mechanism to make sure that is washed over? >> twofold -- there are definitions of what is extensions and the process that allows the city to intervene if we see an unreasonable expense. i referenced a couple of associations that describe what the best management practices are for facilities. this is a very niche organizations in terms of produce markets. there are not a lot throughout the country and we use the international facility management association as our best metric.

supervisor chu: no. the motion fails. supervisor chu: thank you, colleagues. why don't we return to this item. i know it will be outstanding. let's continue to have conversations about the revolving loan fund. thank you. dbi.

supervisor chu: thank you very much. from my understanding, the department is in agreement with all of the items on page 83, one 83, 84, 85, and a project on page 87. with regard to the policy recommendation on page 86, that is tied to the item on the manager principal analyst position on page 82 where the department is still providing to the board and the budget analyst at likewise savings by reducing full-time positions to a part- time position, correct? the budget analysts. >> there are components to the recommendation, what is the exception. we're not recommending it, so we can go down to 9.24 hire date of august 1. the second part is consistent with other recommendations, recommending this is manager 1. we don't believe this is an appropriate classification. they specified that management positions typically meant supervise staff and this is not a position that will be supervising staff. and the remainder, because this is a new program, we consider this to be a policy called for the board of supervisors because it w

supervisor chu: thank you. with regards to your expectations for the department going forward, in terms of the number of appeals, you still have a large number of outstanding appeals, but the expectation is that is going to come down, correct? >> correct. we have a two-year lag. so we're working on appeals from two years ago. so over the next two years, we will see a pretty significant drop in appeals. talking to realtors and people in the industry, it is clear that the market has started to significantly rebound. we believe that two years from now, we probably will not be needing those 24 time-limited staff. if circumstances change, obviously we would bring that back before this body. but that is what we anticipate. supervisor chu: we have recently seen through the controller's office's report that transfer tax and spend at a very high level. in terms of your workload with regards to transfers, what do we expect from that. it sounds like they expect that the transfer tax level will not sustain itself. it is so

supervisor chu: jig thank you -- supervisor chu: thank you very much. if i can ask, before the comptroller's office turns to the revenue before us, items 8 and 9, prop jay, if you could speak quickly to that, i believe that they are all continuing. >> madam chair, did you want us to present it at this time? supervisor avalos: -- supervisor chu: perhaps just now, since we are doing the introduction to the budget. waxed so, what is before the committee is the resolution incurring that it is less costly to provide selective services. all of the requests are for services that have been contacted after many years. there are two items. for this particular service, we have found that there is a particular service saving with a rush to the general fund. there are a number of requests for a number of departments. for the board of supervisors' budget analysts and the voter ballots distribution, the city administrator office security shop the convention facility management within security services at the department of technology mainframe system support. security

supervisor chu: thank you.peaker. >> i am the secretary treasurer of opiu local #3. i was encouraged by the controller and the report talking about the two initiatives and how close they are. the idea of switching from a payroll to a gross receipts is something that we obviously need. we need some stability within our economic system. we need to make sure that we're creating jobs through the tax system and we need to spread the tax base. -- tax burden on all of us. that is good policy and we support that. supervisor avalos's initiative is more progressive in terms of taking care and try to protect the small businesses and bringingp0wz in more revenue bd on the license fee. i was heartened that the complaints that have been heard recently from the business community do not have to do with the license fee so the fact that we're getting our revenue mostly from the license fee of with those who have $25 million or more in gross receipts is very encouraging and i think the way to go. we really think this is good po

>> -- supervisor chu: a lot of people ask that question. they ask how you can be an effective supervisor and have the city's overall interests in mind, but the thing people often lose is the fact that what is good for the city often times is good for our residents as well. if we are seeing huge economic uncertainty or recessions that are impacting, let's say, the downtown core where many of our businesses are located, that has a huge impact on my residents who are commuting downtown for work every day. i do not think that is so much about balancing one over the other, and it is not always whether one has a different side or a different perspective. i think that being able to watch over the city's interests, making sure we have a good economy, strong foundation overall, is a benefit to the residents in my district as well as other places. the balance between city-wide interest and district residents sometimes are not as far as people think. >> once again, the city is faced with tough budget decisions, including where to make cuts and where t