mr. wagner said, this is not news. it got substantially worse with the downturn of the economy and the falloff of pension trusts. in the time that i have been working at the office, we have been working on the underfunded liability that is represented by the costs. and we have had several task forces over the years. we worked to make rate and plan structures that would help control the aggregate cost of the health service itself. proposition b was a significant effort to get the new group of employees coming in getting it to a funded cost over time. it is a long project and we will not start seeing the benefits of that for some years, but among the narrow band of options, it was an important step that the city took. prop d was the same thought process. there were several different configurations of how we might change the benefit contribution here, the contribution rates. they were debated here. projections were given. it'll be a few years before it starts to really impact of the operating cost, but both are significan

mr. wagner touched on, at the underlying issue, the grand jury is not wrong about this. it is not a surprise to anybody who has been involved with the city's financial management where we have a significant and growing pension cost, and other employment benefits that are significant and the unfunded. among the important financial priorities, the city has been trying to find ways to chip away at those liabilities and control the percentage of payroll which is the pension costs, and keep it from overtaking it the bulk of our total

colleagues, we had item no. 5 before us last week and mrs. wagner is here today to talk about it. welcome. >> thank you. thank you very much for holding the item from last week until this week so that the legislation required to be heard before was passed back for agreement. the air force is seeking approval of transaction agreements with the federal aviation administration for replacement air traffic control towers. as well as the adoption of the findings related to the tower project. the effort prepares to enter into the scheduled aviation administration 100% reimbursement of the environmental assessment, design, and reconstruction for the replacement tower and faa offices. the item before you today is the funding mechanism that will allow the airport to be reimbursed for all the agreed upon costs, ultimately to be owned and operated by the faa. any contract meeting the approval threshold set forth would ultimately need to be approved by the board. today, simply is that the funding mechanism allows for reimbursement on the project 100%. the department of city planning has determ

mr. gregg wagner, the item is clarification of the process for adjusting the cigarette lighter abatementt. when this legislation was passed, it had a provision that would require the controller to adjust the feed based on data on recoverable expenses. in the original legislation they patted the controller to make those legislation's specific beginning in fiscal year 2011 and 2012. this amendment would allow the controller to make adjustments to move up the time line. sooner based on updated data. that is the primary change. i have a couple of amendments recommended by the city attorney that are not substantive which you have before you, but i am happy to read them into the record of that would be appropriate. the first is to add a section one untitled findings -- entitled findings, finding that the analysis of the sidewalk street litter conducted by mgm management inc. reveals that the audit found that cigarette butts and related packaging constitutes 22% of all such litter on san francisco sidewalks and street gutter's. and then there are adjustments to the section headings and sub- sec