as many of you are aware, the city attorney's office provides general counsel advised to over 100 city departments, agencies, and commissions. drabs theory the legislation that implements all your wonderful ideas. negotiates contracts, business, labor contracts, handles over 4000 claims a year and acts affirmatively stepping into the general office of the city california. i am aware that some departments have provided you powerpoint presentations, and i will spare you that. we know that time is of the essence for you as you review. i am happy to report that we have been in consultation with the budget analyst and with respect to our proposed budget, we are in agreement with -- in concept with the recommendations that have come from the budget analyst. we're just still identifying exactly what hot -- pot those additional cuts should come out of, but we do not have a problem with that whatsoever, and we have worked with them over the course of the last week. i would just like to highlight for you in addition to the cut that the budget analyst is proposing, note that you are seeing a leve

in additional it's listed within the mayor's budget within the general city responsibility. we've agreed with the budget analyst to transition to $226,000 and that's reflected in the report on chen city. so we're in agreement with the budget analyst. they have flagged it as policy issue, the transition fund. i'm happy to have further discussions with you on that issue to the extent of your interest and one that's appropriate. >> thank you very much. just a quick question. with the remaining mayor's office of neighborhood services primarily most of those positions did go to the 311 call center to help with better integration there but there is, i believe, about $150,000 or so that's left in that area or that division. can you explain what that remaining person would do? >> sure. that person would actually have a very large portfolio work to do, but that would be essentially responding to a constituent inquiries that come directly to the mayor's office that would be working to community groups to respond with information, to set up public meetings, to respond to written e-mail

at the same time, we look at renewable generation for city facilities, renewable generation for non-city facilities, and energy efficiency conservation programs for city facilities, which is pretty much a direct general fund subsidy by taking care of lighting, hvac and other types of programs. we cut all three of those programs by a similar amount. in each case, they went from mid-$40 million to about $50 million over the next 10 years. we thought that was judicious. we still think it is. if you look at the non-power side of hetch hetchy, it is basically a flat budget over the next few years. we did not make changes because it was substantially funded through water rates. >> just a question for you, what kind of work would be done for example in the transmission distribution system line? >> we were hoping to upgrade those lines so we could take more power down from the mountains and sell it differently and make more money. we did not leave the money in to upgrade the systems for additional funds and programs in san francisco. supervisor chu: for your powerhouse line, what does the $69.4

supervisor chu: moving on, the next department is a general city responsibility. i believe the outstanding item we had was the neighborhood transition funds of $300,000. >> madam chair, members of the committee, on the last item, we do have one alternative suggestion on page 64 of our report. the committee has already taken our recommended reduction of $24,000 on this item. $300,000 or remain, which we consider to be a policy for the mayor's transition plan. we ask that the board of supervisors consider placing the funds on the budget and finance committee reserve. it would not be a board reserve. it would be reserved we are suggesting as an interim policy. supervisor chu: thank you, mr. rose. i understand this is an item the mayor has put in, so if you can elaborate a little bit on that? >> madam chair, members of the committee, in the mayor's -- i am the mayor's budget director. i am happy to answer any questions you have on the budget analyst alternative recommendation. i would have a little bit of hesitation about that, as i am imagining how that would play ou

general fund savings. i believe those are the highlights. together, our recommendation would result in $1,134,088 savings for the city general fund. supervisor chu: thank you very much. supervisor wiener: i just want to -- this is for the future -- i do not know if you want to give the city attorney more money because in the future, for better economic times, and of course, i did not have any personal experience of this, but i think that this is through the city attorney and even more so the d.a., that we do not have enough support staff. when i went from private sector to the city attorney's office, one of the biggest shocks for me was particularly the lack of paralegals. i know that the paralegals and support staff generally that i worked with in the city attorney's office -- they were superb, and they worked unbelievably hard because of the -- we just did not have enough, and is more extremely the nba -- the d a's office because there's so few support staff over there, and it does impact once worked as an attorney. and i know that times are tough, but at some point, i hope the office will make an evaluation of perhaps adding som

authority; and adopting findings, including findings that the agreements are consistent with the city's general plan and eight priority policies of city planning code section 101.1, and findings under the california environmental quality act. supervisor chu: thank you very much. >> from the office of economic workforce development, we have a brief presentation for the project in front of the general public benefit for the project. land use already before the title board in planning commission for a number of public meetings, we will

general fund spending. that is a real challenge for the city, and that is why we are here tonight. as i said, the biggest departments in our general fund and, therefore, those that are facing some very serious challenges, our core public safety and social safety departments, the police apartment, sheriff's department, and fire department. health department and human services agency are our core county functions. those five departments together are about 3/4 of our discretionary general fund city in the city. we have asked the departments to make expenditure reductions or increase revenues totaling 10% and another 10% contingency. none of us or none of the department heads here on the stage are enjoying this process, but those are the instructions that we have had to issue to meet this challenge. we are trying to do it in every way possible to minimize the impact on services to residents as we do that, but it is a big challenge, so we are really hoping to hear your thoughts and feedback on how we can do that and on the proposals that are out there tonight. just one last point, to emp

finally, this is a huge economic and job generator for the city. we're looking at in total $7 billion in construction activity, and over the 20-year billed out, 30,000 jobs -- build out, 30,000 jobs. parker said -- parkmerced was based on a new plan that attempts to retrofit the model suburb into a 21st century sustainable urban environments. as a mention, the basic land use plan includes the addition of approximately 7500 new units to the existing apartment units. approximately half, all of which are rent-controlled, would be replaced by a brand new replacement units, bringing the entire site up to 8900 residential units at build out. in addition the plan proposes a mixed use community with retail, office, a community center, and a redesign of all the open space, increasing the amount of public spaces to about 68 acres. this is an overview of the land use plan. i will move quickly because i realize we have limited time. essentially we see the creation of a mixed use transit-oriented for. that is what the dark colors are toward the middle. -- essen

finally, this is a huge economic and job generator for the city. we're looking at in total $7 billion in construction activity, and over the 20-year billed out, 30,000 jobs -- build out, 30,000 jobs. parker said -- parkmerced was based on a new plan that attempts to retrofit the model suburb into a 21st century sustainable urban environments. as a mention, the basic land use plan includes the addition of approximately 7500 new units to the existing apartment units. approximately half, all of which

egan has estimated that the effect on the city's general fund, with this limited stock option exclusion, would be minimal in annual tax revenue and that the loss would be more than recaptured by making sure that companies are retained and sustained in san francisco. so that we are then in the proactive business of making sure their companies are nurtured and that our employee base grows, and from that employee base, because we're not going after payroll tax and just stock option, that we be able to benefit from their contribution into the employment base increasing into either payroll tax or whatever the new business tax that would supplant that in the future. that is the legislation that is before you. it really focuses, as i said, on a discrete population, narrow. so we are able to gauge i am peer rickly what that impact -- empirically what that impact can mean. what a more larger, sweeping version of boss pre-public and post-public companies would look like. it might be difficult to be able to understand what that impact is, but it's important that we do know. and for us to gauge, i

incumbrances, which would allow the return of $2,662 to the general fund here together, these recommendations will result in $1,419,530 in savings to the city, including $1,055,031 to the general fund. we are still working with the department and will report back to you next week. supervisor chu: thank you very much. to be clear, the department is not in agreement with the recommendation? >> we are not in agreement. we are in conversations with the budget analyst. we appreciate their ideas and thoughts, but as i indicated in my presentation, we are keenly aware of having to support the old, which our budget is mainly constructed around, and still move forward with the new. we want to insure that we can make progress on the next initiatives and not put ourselves in a situation from a budget standpoint where we are unable to deliver. supervisor chu: there was a note in the budget analyst report about the seven limited duration positions. can you expand on that? >> we have positions identified in the budget. we have spoken to the budget analyst about it before. our goal would be to fill those positions as soon as possible. we have customers ea

they put solar on the roofs of city facilities that generate power that the city and county of san francisco uses. this is the one program that has no direct benefit to hetch hetchy. the people who receive the benefit are not our customers. they are the customers of pg&e. the power they are currently using is not our power. the power that they say it is not our power. the power that they generate does not come to us. nothing related to the current power or the power that is generated has any connections from a business perspective with hetch hetchy. that is not to say this is not a globally good thing to do, but it has no business connection with the hetch hetchy system. supervisor wiener: i'm sure there is unanimity in the room of the importance of solar power, so my question is -- if we allocate $3 million instead of $5 million for next year, and you said that there is $1.4 million currently -- $1.3 million. let's assume $1.2 million by the end of the fiscal year. with that carry forward into the account? that would mean $3,000,000.10 $0.2 million, total of $4.2 million? >> that would be c

a revenue source, but would like to start aggressively marketing the dark fiber that the city helms, generating revenue for the city, working with other companies that are at that -- interested in attempting to market that capability, making the city some money and offsetting the deficit in the general fund. i know that that was brief. i cannot think that you need me to be the slide for you. what we are asking today, i know that in the last conversation my feeling was that she wanted to be sure that we got the message that we needed to be smarter about how we were doing i t. so the to feel like we were making progress in that area. if you need specific discussion answers, we are happy to enter at this time. i would -- supervisor mirkarimi: -- supervisor chu: i would like to turn it over to supervisor chiu. supervisor chiu: i do support the release of these reserves today, although it is not with overwhelming excitement. last year these amounts were placed in reserve in order to live the incentivize departments to find savings. i am glad that we went through this significant exercise of moving f

general. >> the city of san jose may have to lay off 156 more police officers after talks broke down between the city negotiator and the police officer's union. yesterday was the deadline to get a deal done. council members could order city negotiators back to the bargaining table before the job cuts become effective but even if a deal were to be reached it would not prevent the already planned layoffs of 122 officers to help close the $115 million budget. >> a new survey shows growing support for governor brown's proposal for a special election to increase taxes to help balance the deficit. 62% of likely voters favor a special election, that is up 6% from april's poll but only 46% say they support the taxes. 48% say they oppose them. governor brown calls the poll a little hard to interpret. >> this morning, the national weather service is sending out a team to try to determine the strength of a tornado that struck yesterday north of yuba city. >> it was like clouds swirling on one side of the house. and then hail started coming. i told my wife, let's go, let's get out of here. >> the twiste

the general fund is the part of the city budget that comes from our tax dollars, property taxes, sales taxes, business taxes, and it pays for a lot of services we need to provide that do not generate their own revenue. it pays for the services of a lot of the department's sitting here. -- a lot of the departments sitting here. on the non-general fund side, we have apartments that bring in their own revenues, and a lot of those are facing financial challenges as well, but they have their own budgets to balance outside of the general fund. mta is an example of one of those departments. about $3 billion of our $6.5 billion budget is in the general fund. $300 million deficit starts to sound a little bit bigger. even within that $3 billion of general fund, we have a lot of restrictions on what options are available to us. we are legally obligated to pay our pension and benefit costs. we have voter-approved requirements that under the charter require us to spend a certain amount of money on particular types of services, and all those various requirements eat away at our flexibility within th

the public-private sector discussions with regard to the best approach while maintaining the city's general fund. in this context, in direct response to the recommendations, with regard to what is the best approach in advancing considerations for stock-option exemption, i introduce legislation that is aimed at keeping the pre-ipo companies in san francisco. it features a limited stock options tax incentive. these companies undertake a public stock offerings while in san francisco. it is a time frame that they can be renewed. a requirement that companies pay that least $750,000 in stock- option is the story -- but before receiving the exemption. and a study to determine the tax exemption's economic impact, including the effect on retaining companies in the general fund. the company in the history would have been eligible for the tax exemption of a proposed. they all paid less in stock compensation taxes. the company would have to issue more to be eligible for my exclusion. there are very few companies located that are expected to come anywhere close to that figure in the next six years. acco

city. generally speaking, absent other direction, our office would apply an absolute rule to take it at its face. i know there has been conversation in other jurisdictions about drop program analysis. is it within a reasonable margin of error that the cost or savings are within a band and in some places, folks have stood on that to authorize continuing the program, specifically in our program and i think the retiring -- the retirement system can speak to this -- the ballot system that tracks office to complete the study is absolute in its terms and does not imply or allow leeway in our report to you to say this results in a cost increase. but the cost increase is marginal and simply says the comptroller shall provide a report indicating -- whether it achieves cost neutrality in absolute terms. >> is that a consequence of how the ballot measure was written as opposed to how we made ourselves assess -- does it present a different scenario that may be does a disservice to itself or maybe not as opposed to weed -- as opposed to how we may actually gauge the efficacy of this program? >> i do not

. >> but is a general standard the city typically will follow in terms of its analysis as well as when we analyze projects that might alter it resources. goo>> there is a debate because standards are high, and there are people who believe there should be on modification. my question is are there other aspects that mandate application of standards? >> i have been informed by the historic resources experts but the planning code does not contain a requirement following standards, but of the commission has adopted it as a rule in terms of their view of projects in jurisdiction. >> i would request that the amendment be separated. >> why don't we do that thelma -- why don't we do that? colleagues, can we take those amendments without objection? those are for the underlying documents, items 14 through 59. with respect to the motion, is there a second? can we have our role call on that motion. >> [calling vote ss] supervisor chu: no. supervisor cohen: no. supervisor farrell: no. supervisor wiener: no. we have 7 ayes, and 4 nos. >> the motion passes. >> i understand there are still amendments t

city. they are great contributors to the general fund. supporting initiatives with the jobs coming in, those are important for all of our neighborhoods. my role and function in the city department is to support businesses so that we can help in the general fund creating more money for us. >> good morning, everyone. i am president of the board of education the key for having me. san francisco unified as a separate entity from the city. we are funded by the state, but we rely heavily on the support services and funding from the city. without that, we would not have been able to be afloat as we have had the last couple of years. leadership has been tremendous. it has severe impact on public health at all the things that our city is made of. you want to make sure that our kids are graduating. the last couple of years, we have been doing a multi-year budget. last year, we're looking at about $113 million for a budget deficit. we worked through that with the labor partners, cutting the costs hit as many places as possible and try to stay as far

general obligation bonds, which is what we are proposing here. outside of the state of california, almost everybody uses street improvements for obligation bonds. seven of the foulargest cities n the country all views general obligation bonds for street resurfacing. the three cities on that list are all in california. los angeles, san diego, and san jose. the reason these california cities are not using go bonds is not of they are not and of corporate capital expense, but because there is a higher voter threshold in california and then there is an oscar in the country. it is very difficult in california to get general obligation bonds passed for anything. until the state voters change the threshold for schools, school bonds across the state were failing to get two-thirds vote. the constitution was amended to allow those bonds to be approved with 55% voter support. so almost everywhere we look, this is a common way to fund our capital assets that do have a long life. and we will continue to talk about how the capital plan, that the board of supervisors adopted, talks about what capital assets are and segregates those things from those things in the city operating budget. thes

we have departments like the airport and the public utilities commission, that generate their own revenues. within the city general fund, this is a little bit less than half of the budget. this is where tax dollars are coming in, and the space for this service is not generating revenue, by parks and recreation, the health department. this is where the deficit this. within that $3 billion of the general fund, we also have restrictions on what to do with this money. as the mayor says, we have the obligations to the employees to pay out the health-care costs, and we have approved the restrictions on this money. we have the $6.5 billion budget. a large amount of this is flexible for us to make decisions, making policy choices about what we can change to close the deficit. $306 million in that perspective is almost 25% of the flexible budget. this is a great challenge and that is why we are here tonight. we will be working on this in the mayor's office. we have been working very closely with the board of supervisors to make those decisions. i will leave it at that and turn its back over, and i'll be happy to an

the city generally votes more moderately on the whole. >> there is one in term mayor from the progressive make sure in the next year, it will be a progressive mayor with a progressive majority board. then maybe in the election, they can have another elected progressive mayor. >> another issue was to consider selecting a caretaker mayor. several may run in november and preferred that the interim mayor be a caretaker. >> the board of supervisors should respect the people's current choice, which was extended a few years ago, and at least have a caretaker that is awful, judicious, fair minded, -- they do not have to agree on anything -- everything -- but they will not play the kinds of political politics that one might play. >> that would really get the hornets' nest stirred up between the mayor and board of supervisors. if you are incumbent mayor and you decide to run for office, you have a leg up. some say, that is not fair. how about david chu, who is considering running for mayor, giving him nine months in office before he becomes mayor? you have people like bevan dufty, david chiu, even

gross revenue we expect coming to the general fund, including the $3.3 million from property tax, would be over $20 million. we have also estimate whatwe hal city costs and we have worked with the fire department, muni, etc.. there is a cushion of $7 million, $8 million to the general fund beyond just the property tax revenue. >> if i understand this correctly, currently the property tax margin is 8.8. payroll tax and etc., we are expecting $20 million in revenue from that with $40 million incurred in expenses against that. >> correct. there are police officers there nell, so this will be an additional cost to the city, using today as the baseline. >> given a scenario where we might see finance is not coming out the way that you expect, what are the options for reevaluating the investments? >> we have a fairly large cushion of seven or $7 million to protect against that. to your second point on the infrastructure improvements, when the developer makes those initial improvements, they will be paying for them with the anticipation of future property- tax revenue. they will issue bonds to basically buy back those improvements. the streets, the sew

generally be 32 hours a week. they are assigned to the busiest and most needy commercial corridors throughout the city, generally in about a five-block area. they work generally thursday through monday, and they are actively -- rather than waiting for service requests, they are actively addressing any deficiencies they see -- garbage, graffiti, or the like, anything they can take care of themselves, they do. otherwise, they notified the important agencies. they work as ambassadors to the property owners and residents and merchants. as this is a partnership with the department of environment, we will have a significant focus on insuring adherence with our mandatory refuse ordinances, which require composting and recycling as well as adequate garbage service. lots of different benefits from this. we are doing this as a pre- apprenticeship -- or an apprenticeship training program. state-certified labor training program. what is different than what we're proposing for this coming year and how we have done it in the past is that we will do this through a contract with a non- profit that we are currently in the process o