ted egan, comptroller's office of economic analysis. we provided a report to supervisor mirkarimi's legislation also responded to david chiu's work. i would lead to summarize the findings of our report. the first thing to be clear about estimating comedy there the economic or fiscal impact of excluding stock options is, the city does not have clear information how much in taxation these companies are actually paying. what i tried to do is initially develop a model of what a typical highly valued tech company would pay for stock options. i also did some research with the assistance of the treasurer's office that allows us to make a rough estimate of what we think companies may have paid in the years immediately they went public. at the crux of the issue, if we could go to the overhead screen, -- because the city taxes stock options and most cities will only experience a peril tax liability from that after they go public or another change in public control, in that year you could see a highly valued company see a highly exonerated increas

as was indicated by ted egan's report, a very few companies are ipo and stay under $150,000. there are very few companies that will hit that level of payroll tax option. by the way, i appreciate my colleagues'support for my neighborhood and my district. it has been refreshing to me to talk to zynga and hear their commitment to the city of san francisco into our neighborhood. and i know they are in talks right now with several community advocates and nonprofits are around how to support local hire and individual jobs for individuals who have less than a four-year college degree. it was also nice to hear about the community work they have already been doing thus far, and the further commitment to deepening that level of support in our neighborhoods by partnering with nonprofits and potentially working on open space and other park issues. so, after careful thought, realizing that this legislation is terribly narrow and would impact a small number of companies, i am thinking we're moving in the right legislation. i will be supporting the legislation today. i do hope this does not

>> ted egan, chief economist in the controller's office of economic analysis. i'm here to share with you this evening a review of a report we issued last week on supervisor mirkarimi's legislation. i understand that you're considering both pieces of legislation side by side. we're still in the process of working on the analysis for supervisor farrell's legislation so don't have any findings to share with you on that piece of legislation now so i do have the results of supervisor mirkarimi's legislation. i should also tell you too the report that we issued last week, we issued prior to supervisor mirkarimi making amendments to his legislation, and he has outlined those amendments. they're closely aligned with what we recommended in our report, and i will try and clarify the points in my report here where the legislation has been superseded by the amendments that supervisor mirkarimi has made. zwroust go to the presentation as both supervisors told you the city included the stock values of exercise stock options and its payroll expense. although it is recently hi