Transcripts For SFGTV Replay Special BOS Budget And Finance Committee 20160617

Thank you mdm. Personal everybody welcome to the budget season. For this year i look forward to the next week of our deliberations. A few things i want to note before we start off here. In an effort to hear some of the Department Budgets with different ordinance they have attached to them, sometimes will be calling a few things out of order today. Were going to recess at 11 45 am for lunch and we can being approximately 1 30 pm to continue the hearing. Willie taking Public Comment on legislative items. However Public Comment for the budget itself is going to be heard on monday, june 20. Next monday followed by two more days of budget hearings potentially one more day of budget hearings on june 20 and potentially the 23rd. The of to complete our Budget Committee process next to hear this balance, and for a balanced budget to the board for our the liberation set the board on july 12 to there are a number of departments that do not have budget Analyst Reports. I want to spell out specifically. Our asian art museum, the Civil Service commission, our ethics the barman, human rights commission, academy of sciences, Treasure Island, and status of women. It is my intention unless my colleagues one of, and otherwise not to take any action on those budgets at all. To leave them as is as we dont have a budget and was report. To accept them as is and also to say that those Department Heads to save time you do not have to present today if you do not want to get so i want is a must my colleagues have any questions or comments to the contrary, i would be respectful your time operating your departments are you do not have to stick around and certainly do not have to be back next week. So, that is my intention as the chairman. Following the first item, that we will call, continue from last week will your controllers regular mayors balancing budget order under item number four and the will your departments in agreement with her budget Analyst Reports and finally those are not in agreement. 106 and will be heard whether Controllers Office budget item. Item 17 will be heard with our public works budget. Item 2, three, seven and nine will be there with the city administrators budget and finally item 18 we heard last fall in the board of supervisors budget. We got them a look at things up but i want to be very respectful of those departments that do not have a budget Analyst Reports. Again thats asian art museum, Civil Service, ethics 11, human rights commission, academy of sciences, Treasure Island and status of the prime and status of women is our intent not to take any action under budget at all as well as if you do not wish to resent you do not have to and ill make sure you can be excused and run your departments and thank you for what you do. With that, mdm. Clerk please call item number one today clerk item number one chart amendment to amend the charter of the city to transfer sponsored link to the maintenance of street trees to the city and establish a special fund primary to pay for such maintenance and the means of trees on San Francisco Unified School District property thank you. So, this item was sponsored by supervisor weiner. Will turn it over to him. Think you mr. Chairman. Colleagues, youll call last week we heard this item and we made some amendment good at my request. I continue until today. Under our board rules, in addition to the Budget Committee, the rules committee must hear this before it goes to the full board of supervisors , and so today subject to Public Comments, its my intent to move to refer this item to the rules committee for further proceedings pursuant to our board rules. Thank you supervisor. Colleagues, new questions will move on to Public Comment per item number one. Any Public Comment on item number one . Seeing none, Public Comment is closed. [gavel] supervisor weiner mr. Chairman i move we refer item 1 to the rules committee moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] mdm. Clerk item number four out of order item number four, financial position on the requesting the my dues paid to director and the controller to report thank you mdm. Clerk. First well have Melissa White house from the mayors Budget Office thank you. Acting budget director and the Mayors Office and i want to get a little bit of context for today kicking off of the budget hearings and most of you have gone to a lot of this something i will pretty quickly and if you have any questions please are stopping at any point. So, budget this year next two fiscal years for 16sending and 1718. 6 and 9. 7 billion respectively. This about an increase in most 9 billion and earn your 1516. Positions are around 30,000 and was around 4 growth, about the current year and a large series both positions and growth. A lot of that growth is from enterprise departments which all heard in the month of may and in particular the mta, finally pulling fully implementing the 10 service increase. Other large growth on the general fund side with the department of Public Health and Human Service agencies around Affordable Care implantation and of opening of new sf General Hospital last month. Also, the final year is coming up 40 all the Public Safety hearings plans started i think a believer 1314. So hearing the legalization of those plans with the next two years. Thats another area of growth. Just contact on the budget, so this year in the spring when we got the joint report with the Controllers Office and the budget legislative analyst, we are bouncing around 250 million over the next two years. Eventually your product that was we didnt around one of no good i want make a point this was a little bit more difficult it last year we balance this revenue and this year was in revenue and ill get into some of our solutions. The biggest changes from the year ago that we see are really around for your retirement contributions. Increasing commitment around baseline from setasides for the city. Also with a lot of onetime money this year more than expected, all you know with 73 million in additional funding and was the sale of a couple properties also. So when we have onetime money like that we work hard to kind of tie the onetime good news with onetime uses. When possible. Biggest assumptions in the budget. The first is a. 75 increase in the sales tax would be assumed in the budget. We also assume a 60 million reserve for unknown impacts of the budget includes no increase in your too long around Employee Salary and benefit Cost Increases accept the police and fire because there closed labor negotiation. The rest of unions are closely did he open in 1617 41718 and also the budget includes the cpu core the of the additional 2. 5 last year to your budget and 16sending again and 1718 is not significantly additional we do have this reserve unknown impacts and to speak that the potential uses that fund are still to be more than the money we were able to set aside weakness a good thing for us to do as a city. We did accept some departments target proposals although i would say mostly the revenue ones proficiency. This is really where were not using service in the budget which is great. Asked thing, people fully funded a capital idea plans in europe one of the budget and we always usually compact practice over the past several years to underfunding in year two to be but some room to grow in the second year. Tonight we were able to fully fund all three of those items which is again a great thing to be doing when we have onetime money as a city. So, the big three focused priorities for the budget because we had last money this year we do need to be very strategic and the things the mayor and i talked about a lot and focused on and also that occurred as priorities for a lot of Board Members as well, around homelessness, Public Safety, this specifically about prevention and Police Reform and quality of life around clean and safe neighborhoods and this is really in the budget and the general fund side round street cleaning and pet stops in those types of investments. Other items i want to note briefly where there were honestly the Childrens Fund was going a lot and youll hear about that were the next couple days, the racks and part could be extended Library Hours as you heard about inmate which i think makes a big difference for families and citizens. We also funded 6 million, 3 million in each year for nonprofit displacement which is i think a be great around addressing affordability concerns a lot of our nonprofit partners. We funded in limitation of legacy business which passed last november. We funded an assumption around 39 million over the next two years around funding for seniors with disabilities toward the dignity fund to get that operate in the first year into the city to claim 22 england in the second year. In the full funding of the equipment plan we had a really strong push for fire this year. Theres just a lot of needs in that Department Around women which im sure will tell you more about. The something we prioritize the equipment plan this year. We fully funded Ethics Commission requests and lasting spots will budgeting which i says that fully fund onetime things like capital women i keep widget things that really save us money over the long term when we fund them now. We try to pay down some debt where possible. We try not to use reserves which we did not and still all things i think we should be doing right now were still able to make some new investments were not Cutting Service repair the city for when the day comes when if it comes theres a turn in the financial in our revenues theoretically. So, the next two im going to go through quickly how do we balance. Around 250 million were looking at with the next two years our Solutions Work revenue, slight savings on at active retiree health, citywide solutions, especially as a mention underfunding some of those plans in year two and department aleutians were largely revenue base. And some of our new investments youll see items with the start. We were able to make some additional investments because we had additional revenue through the assumption of the sales tax passes. Then, i think a mention all the others. On the wrapup and see that anyone has any questions. Make use much for all your help through the budget process all you have been appreciative so far thank you. Colleagues, any questions . Budget director next we have ms. Rosenfield. Good morning supervisor. Then rosenfield city controller. Im here today briefly present on what we call a revenue letter. The charter requires the Comptrollers Office to comment to the board of supervisors on the reasonableness of the revenue estimates contained in the mayors proposed budget. We issued our analysis of the revenues two days ago. Available on our Comptrollers Office website could get copies your note briefly run through some of the highlights. At the highest level we find the assumptions assumed in the budget reasonable. They do importantly, assume continued Economic Growth during the, twoyear period. As always, the key risks we will need to monitor as we work through this twoyear period should the budget be adopted as proposed. Number one, again it does assume continued Economic Growth. It does assume continued strength, although weakening strength in the commercial real estate sector in San Francisco al talk specifically about what that means. Then, lastly, as you know the mayor has proposed a. 75 increase in the sales tax for this novembers ballot. That revenue is assumed in the proposed budget. As is often the case, we place where revenue is not certain what is proposed, we placed a like amount extenders unreserved pending the outcome. Overall, the budget the total budget rose by 7. 2 in year one. 1. 3 in the next year within the general fund growth rates are low that will work in the next year 6 growth 4. 4 growth in the second year. When we look at the growth rates assumed for major taxes, which we summarized on this chart and of course theres a lot more information in the report itself, you can see that the story i was towing. We are the budget does propose that we do believe its reasonable to assume continued although slowing Economic Growth during the spurt not and you see that translated into our taxes. On the high side, the first year budget and what we project our property taxes significant increase at 11. 8 . Part of that is the result of really the current year of performing budget significantly on property taxes as we talked about and then continued growth as the assessor continues to do a good job of clearing back lockbox backlogs of assessments that need to be placed on the role. So, you are seeing that in the property tax numbers which is really a driver a lot of the procured were seen in the general fund at the moment. Were that Significant Growth rates for other major taxes during this. As you can see on this chart, the one ill highlight some of which we have started to see weakness in the current fiscal year is transfer apps. This is the most volatile single Revenue Source in the city. It tends to move with commercial real estate markets in particular. When we look at our projection of where we expect to in the current twoyear on transfer tax, we expect our current fiscal year the one were winding up to and approximately 50 million lower than we did last year. We seen significant weakness in the current year could work second that weakness to moderate a bit into the budget years but were expecting to see continued declines is really the market stabilizes. Graphically, thats what this looks like it you can see transfer taxes, property taxes are not on the business tax and hotel tax continued to grow in the coming year period with modest the clients in transfer tax. We also touch in the revenue letter on whether the mayor has proposed budget is met with mandated spending levels for certain things. So theres analysis on each of those in the letter itself. But generally, as you can see on this slide, although the mandated requirements have been for spending my first happen, having met were likely met in the proposed budgeted in a couple of important cases, whats been proposed exceeds the minimum mandate level. So we are above the baseline funding levels required in the proposed budget for childrens baseline and the baseline added by the voters 12 years ago. We are at the funny level in the proposed budget for the mta, and that is various components, that drive that baseline. The new beck and Park Maintenance requirement adopted by the voters a couple of weeks ago, funding levels in the proposed budget are just marginally higher than that mandates about 200,000 hiring each of the two years. We think in our review the policeman and staffing requirements are likely met in the proposed budget and again all other financial baselines detailed in the report are met. Just briefly, to recap our reserve position, these are some of the key components and again theres more detail in the report itself, the general reserve is consistent with the financial policy the mayor and board of supervisors supervisors have adopted and can use to grow during this old period is the overall budget rose. The three main Economic Stabilization reserves in the middle of the stable are flat. Neither deposits nor draws into those reserves proposed in the budget. Its interesting while the reserves themselves are static, as a percentage of the overall budget, were actually declining. So, as the budget grows, the percentage of clients from about 5. 6 to 5. 1 revenues during this period it on target in those policies is 10 . So, were not in bad shape but we are not improving in terms of our position towards that target. Lastly, to reserves we highlighted on this page which are four back in part, reckon parkas propose modest draws on those, twoyear period. So again briefly highlight key risks to monitor. In related to the proposed budget the budget assumes most fundamentally continued Economic Growth for the twoyear period. Weve assume continued something commercial real estate here in San Francisco. When we do see a market turn, a modest declines we talked about earlier in transfer tax would become significant very quickly. Then lastly impress most importantly, the budget assumes the board of supervisors places in the voters adopt a. 75 sales tax increase on November Ballot and that revenue is assumed in the budget. Then, just to and on this lot which you see from us often, we are now 96 months into this period of Economic Growth. That now makes this the third longest period of economic expansion since 1900 in the us. The budget as we talked about assumes continued Income Growth which we think is a reasonable subject given what we see in the market, but if we do get through this twoyear period without seeing the beginning of a downturn this week the longest period of economic expansion of the 24 that happened since 1900. So, just a note of caution. As we enter into the budget season. Im happy to answer any questions. That concludes our report thank you. Colleagues, any questions for our controller . On the revenue letter . Okay. Thank you very much. Would that will move on. Mdm. Clerk please call items five and six together on i action on item number four . Sure. Can we continue this item, colleagues, less the Public Comment. Any Public Comment on item number four . Seeing none, Public Comment is closed. [gavel] colleagues can we ask the we continue item number four to the call chair . Moved and seconded. We can take that without objection. [gavel] the ayes have it. Item 5 and six. Item number five approving all estimated expenditures for the departments of the city as of [inaudible] and june 30 2017. Appropriation ordinance purposeful year and june 30, 2017 and june 30, 2018 continually creating a 17 these positions. Thanks very much. Again, i want to offer for those departments again that do not have a budget Analyst Report, other any department you wish to come speak . Dr. , please come forward. Thank you very much. Members of the committee, i just want of knowledge by fiscal analyst natalie always think our mayors budget analyst laura bush, for her support during this process. The Department Mission is to foster the equitable treatment and the advancement of all women and girls of San Francisco through policies legislation and programs. We do work in three primary areas. Human rights, bouts against women and women in the workplace. As you may know, women account for 49 of San Franciscos population. Will even go to the after that. In terms of our threeyear budget the total current year budget was 6. 72 million. We are proposing a 7. 01 Million Dollar budget in the budget year and 7. 02 million following. The gray bar represents our single Largest Program City Grants Program of 84 . The staffing and Administrative Expenses 16 . Our fte, we are proposing a growth from 6. 01 26. 02. I would like to say were small but mighty department. Next slide, please. Major budget changes, there are five. First of all, 2. 5 increase in general fund grant budget to address the mystic violence, Sexual Assault and Human Trafficking. 2. 5 cost of doing business that are budget director announced earlier. The. 5 fte increase from a federal grant that we received for a high risk Domestic Violence Response Team private. Number four, as you may know San Francisco is in the top 13 for child sex trafficking and this year we made a major investment with the mayors leadership in a pilot to conduct 24hour response for child sex trafficking in our proposed budget we are, as a city, asking for full funding for the program. It will be moved to Human Service agency, children and family services, to manage the grant funded by pc at work order. Given the interests anticipated shortfall, we want to do our part, proposed budget includes a 5000 reduction in our Material Supplies in the budget year and 5000 reduction in nonpersonnel expenses the following year. The next two slides take a deep dive into our single Largest Program, the [inaudible] grants program and if you take a quick look at the if you take a quick look at the ground boground box, chosen physical year 1230 we invested 3. 3 million that serves Domestic Violence Sexual Assault and Human Trafficking survivors with the mayors leadership, with the leadership of folks in this room, that has increased 76 weary are proposing a 5. 8 Million Dollar investment in these lifesaving services and i just want to acknowledge that we bitter Domestic Violence consortium was largely responsible for these increases. 22 of the funds go to support prevention efforts. 20 funds that night at shelters and transitional housing programs. The remaining 50 rent crisis line services, legal services, intervention and advocacy. In terms of outcomes, in fiscal year 1415 were still gathering data on 1516. We invested 4. 6 million in 33 community programs. So though most 25,000 individuals. Conveyed over 31,000 hours of supportive services. Over 10,000 bed nights, served almost 24,000 crisis calls in the community. I just want to point out that 911 gets about 8000 bicycles in this area in the Committee Service providers have fielded 24,000, so that is three out of four crisis calls are served by the community. I last slide, looking forward terms of our initiatives, we continue to push the envelope the Mayors Task Force in Human Trafficking. We will be reviewing the foster care system. Weve an Exciting New Partnership with the department of environment. Theyre helping an initiative to expand us on our reach to include labor rights and labor trafficking. In the coming year we will be doing a Needs Assessment for our next grant cycle and explore the next nexus between Domestic Violence and homelessness. But a gender equality principles will highlight best practices and a gender analysis of trade lawenforcement and tegy positions will continue as called for in the mayors shared prosperity agenda. Finally, were supporting the Mayors Office to the work of Anna Mcdonald to advance the bay area womens summit. Posted by mayor lee this coming tuesday at muskogee. We hope all of you will join us there. Thank you very much. Thank you dr. Pussy. Colleagues, any questions . Okay, thank you for being here. Again, i want to make sure i get people the opportunity that you want to speak. I think ocii is here. Im clerk please call adam eight thank you chuck. Real quick, were to call item 8 item number eight [reading code] thank you mdm. Clerk. Different paoli director of the office of Community Investment and infrastructure. Successor agency to read about. And you of a resignation because i know your docket is quite full we simply want to clarify the proposed budget resolution before you. Which we did not change our Expenditure Authority. For Affordable Housing it simply clarifies the bonding authorization conferred by the board to this department. With that im happy to take any questions. Thank you very much. Colleagues, any questions . Will go to Public Comment on item 8 . Seeing none, Public Comment is closed. [gavel] item number eight which is the oci, julie for this to july 12maybe to our controller or deputy City Attorney john wagner. It all go to july 12 still be appropriate to take action now and not wait till the end of the meeting we take Public Comment. Colleagues can have a motion to afford item 8 to the full board of supervisors on july 12 . Can i ask a question, please sorry, i do not see you ask i apologize. I do need to keep you hear you longer than you need to get some questions cannot some of the open space in the Transbay Development area recently good so, i was just curious because of looking for the timeline for the under ramp park in the transit part, which by the weight is an incredible design will provide click on space and Basketball Courts for this growing neighborhood. I was curious if you had a sense of the timeline for this . Sure. The director tiffanydirector of ocii. Thank you supervisors for facilitating parks elsewhere in mission bay recently in mission making spark with respect to transbay park, those on caltrans property were tj pa properties. We will be seeking Construction Management either through the department of public works for other Additional Resources and support to go out to build and construct under ramp parks. Right now were in schematic design. We got a good deal of work to do with public works and other departments to really flesh out the design. We would expect hopefully 2018 for under ramp park for the 2. 4 acre park and with respect to transbay park, which is sitting on the site of the template Transit Center, along with two housing blocks mix income and affordable, as it is the Transit Center opens, we can move forward we will be initiating the community and design process to make sure that park stirs the neighborhood and families. Thank you so much. Okay. Colleagues, no other questions than can i entertain a motion to afford item 8 to the full board of supervisors to july 12 . Moved and seconded. Can we take that without objection . Without objection the motion passes. Two things come i believe ocii has omitted amendment and we need to take Public Comment before acting on the amendment reported it to the full board. Public comment only on item 8 we did take Public Comment. Before this as amended . Okay so colleagues connected a motion to accept the amendment . Then with one motion to accept the amendment and bite moved and seconded. We can take that without action. [gavel] thank you. With that, i was thank youany other departments that were not please come forward here. Again, any departments. I would give everyone a chance of it was to present good morning and Committee Members my name is lee and how may second director of the San Francisco Ethics Commission to provide once now and in the interest of the monopoly to be doing a presentation that we have for you. We will be posting that slide deck on our website to look at it. Presently want to take the opportunity this morning to thank you for your consideration of our budget request. Its ambitious budget request that is really fulfilling the needs of the commission to ramp up our work to the next level and build our past success. I want to thank you all for your consideration and moving it forward. Also to think the mayor for his [inaudible] and the work we have had and also think his staff are working with us very rigorously to shape the product that you have before you. The commission i think is moving into a new chapter and were very very eager to demonstrate our resolve to really provide a strong return on these investments among which are really an investment in the good infrastructure for the City Ethics Program and accountability and transparency. With that i want to thank you this morning i look for to working with each of you in the coming years to make that a reality in our new chapter as a commission. Thank you. Any other departments again that dont have a budget Analyst Report that was to speak . Then were to move on. Again, feel free to be excused and no need to come back next week either. Congratulations on your budget season get with that, will open this up now to our next apartments that are not integrated the City Attorney on a requested early. Thank you chairman farrell for giving me the opportunity to come and speak with you today. As chairman, as you noted, we are in agreement with the budget analysts report and before i get into an overall discussion an outline of the work that our office has done over the course of the last year, i just want to point out to you the numbers. An increase here in year one fiscal year 20162017 approximately 3 million. That is all encompassed by mandated salary and Fringe Benefits or other attorneys and other staff and in your tooth is clear 2017118 theres an additional 2. 2 million increase which again is salary and fringe mandated salary and fringe increases without a rent increase onover the box plus that where we house about we have six floors of space. So, thank you very much for giving me the opportunity to come and speak with you this morning. I know that many of you are familiar with how our offices role in the work we do. We assist you in drafting legislation. We provide you legal advice. We review and approve contracts. Securing bonds and other legal instruments. We defend all legal claims and lawsuits and negotiate and recommend settlements for your approval. If you consider work like that that we do for the board of supervisors and multiply that by the 100 plus officials and departments is pretty much the job of the San Francisco City Attorneys office. By virtue of San Franciscos many functions of course are proximally 180 lawyers with additional 130 or so support staff, the filter complete range of advice, transaction litigation roles that you expect about a very large law firm. Our office is expertise to expand every legal specialty and practice area. Now to offer a quantitative perspective on our office, with the course of the last year we processed almost 3400 claims so far this fiscal year and up with is on track for just under 3600 by the close of the fiscal year on june 30. The respective the board of supervisors, there have been 232 were generated legal work assignments, which puts us on track virtually with the most identical to the 242 four generated we will work assignments that we had last fiscal year. Overall, we are on track to reach 81 newly opened work assignments before the end of the fiscal year in two weeks. Thats down slightly from the Previous Year where we saw boxley 938 in the year 2015. However, its also a market increase over the three pioneers going back to 2012 when you legal work a summons average only about 630 and would. So the work continues to pick up. In terms of new initiatives and problematic programmatic changes. Which of these involve our nationally recognized criminal litigation practice. Which you probably recall me talk about in the Previous Years. Which is recently been honored by the National Association of consumer advocates for the work that we do. This year, we will be celebrating the tenure interpersonally of our partnership with io law school on this program. Further litigation essentially means cases we pursue as a plaintiff which is not very traditional for a municipal law office. Sometimes those cases arise from causes of action we pursue on behalf of city taxpayers and other affirmative litigation cases seek to remedy injustices we find in the marketplace. Usually, those efforts aim to protect consumers, renters, we jurors and others for my model conduct by unscrupulous businesses. In truth, those cases were going to let important function of protecting the vast majority of lawabiding businesses that you play by the wills. By effectively policing the marketplace, affirmative litigation practice offers certainty to Honest Enterprises that they wont have to compete with cheaters. I am proud of our publishers of this year in terms of our litigation. Recently, we have protect low income renters from this commission citywide winning a preliminary injunction against the landlord and Real Estate Broker for violating local law by refusing to section 8 housing vouchers. We brought our Legal Expertise to bear for Environmental Protection especially in the fight against Global Climate change. We join local governments nationwide to support pres. Obamas clean power plant more stringently regulate fossil fuel power plants. We stood up to pg es anticompetitive tactics which are putting a stranglehold on our distribution to clean publicly owned hydropower for City Services and tenants and recently we beat back a bit by hetch hetchy drainage advocates to dismantle gravity driven water and hydropower system which is a model of Environmental Stewardship for centuries to come. We negotiated by breaking accord with the state of nevada over to inhumane patient dumping practices. Agreement is a model that was sure the care and dignity psychiatric patients when they travel between jurisdictions. We brought suit against American Express for defining fighting into test was costing businesses and consumers billions in needlessly inflated charges and most recently, we set another is enough to be cabinet about university and after years of thumbing its nose at city laws and City Departments, and city officials, aau will finally be held to account for its conduct in court. Our legal efforts continue protect san franciscans qualityoflife. As we do every year, weve aggressively pursued public nuisances, threats to health and safety, and housing Code Violations in neighborhoods citywide and i want to applaud the consuming partnership that we have from every member of the board of supervisors in trying to cooperate with our office in our efforts. At the same time, our office works hard to overcome the inevitable legal challenges that follow even the most broadly supported civic developments. But the warriors event center, and challenges to the soccer fields and ambitious bike plan. I like to close supervisors, with an issue that unfortunately has once again been thrust into the national spotlight. Its an issue that i know matters most deeply to all of you as it does to me and thats discouragement of gun five. San francisco has admixed results over the years on our local efforts to annex tougher gun safety laws. Long before i became City Attorney, in fact, San Francisco was a vivid litigation target the National Rifle association. Which has sued to invalidate even most common sense gun safety laws. A year ago this month however the Us Supreme Court denied review to a case that cause legal pundits nationwide to sit up and take notice. At nearly 150 petitions denied in fact only one to a written dissent from justices Clarence Thomas and the late into nice collier. Arguing at the high court should take up the case and that was the case of the analyze lawsuit against San Francisco. With the courts denial we decisively ended their sixyear legal challenge and we have held our cities gun safe storage lot. My office stands ready to work with you on fossil and effective policies in all cases in courts that gun cases especially were ready and willing to work with you and aggressively of defendant bylaws from an right tactics as long as nasa. I know you love City Department to want to hear from but thats a brief overview of the work we have done over the course of the last year. As i noted, the outset were on agreement with a budget Analyst Report and his recommendations. Puppy happy to take any questions that any of you have. Thank you. Colleagues from any questions . Comments from our city 20 okay, thank you. Mr. Rosen can we have your report please. Yes, mr. Chairman miller Statement Like to make one opening comments. We issued a report to the budget and finance committee and the full board of supervisors on june 14th and i want to read one statement from that report. The citys salary and Fringe Benefits budget provides funding that exceeds the City Departments actual staffing based on prior expenditures and history. In the current fiscal year 201516 according to the comptrollers highlevel monthly spending rate report, the citys general Fund Departments will have a projected yearend salary surplus of 59. 1 million. Were 3. 2 of fiscal year 1516 budget and salaries of 1. 9 billion and as you know, supervisors, you recently discussed the issue of the use of surplus hours for additional overtime. The reason why make this statement is just to put some of our recommendations into context as we proceed with these hearings. With respect to the City Attorney, on page 23 of our report, recommended reductions for the proposed budget total 413,000 in 1617 in that amount 8031 were ongoing savings and 405186 onetime savings which still allow an increase of 2 million or 3. 4 in the 1617 budget. We also recommend closing out prioryear unexpended encumbrances of 85. Together these recommendations equal 413,000 in general fund savings and 1617 and a recommended reductions total 8031 and 1718 which ongoing savings. These reductions would still allow an increase of 2 million for 2. 8 of the departments fiscal year 1718 budget. As i understand it the department does concur with the recommended reduction shown on page 2425 of our report. We will be happy to respond to any questions tank you very much. Any questions for mr. Rosen . With a gash in the quick but for someone asked our City Attorney to make sure we discussed the Public Comment process and how be taken action. Deputy City Attorney john gibner. Members of the public will have an opportunity to talk on the entire budget including any cuts the Committee Makes during this foster every day when you with presentations from departments, and recommendations from the budget analyst, the committee tentatively indicates its intent to make cuts, so the controller and the mayor and other city staff contact along the way. The ashley taken any formal action until after Public Comment which will be next week. But, if the public sees you gobbling down on things, thats not actually to formally approve motions. Thats just to indicate to the staff with the committee intends to do next week. Thank you mr. Gibner or appreciate the clerk. With that collects river City Attorneys budget in front of us. In concurrence with a budget analyst the condition. Let a motion to accept those recommendations pending Public Comment on them . Moved and seconded. We can take that without objection. [gavel] up next, we have our assessor recorders office. Just because, annex we have our finest easy and will be next, Mayors Office, gen. City responsibly and Comptrollers Office will be following that. Good morning members of the committee. Chairman farrell. Its great to be back in the board chambers today. I want to take a moment just to thank my team whos come with me today but also back at the office. I am joined by my deputy assessor, gigi whitley, douglas like, is not here but hes also quickly helping us to defend a case at the assessment appeals board. In my entire staff, sometimes with the presentations we get ahead of ourselves in particular think the People Matter most lower make sure i do that upfront here. I also take a moment to think the controller. Thank you for much for highlighting some of the great successes that officers had over the past year. I know that then and the controller will never say it, but the better our office does i think the better our city does. So were really glad to be part of that picture. Was recently, when we talk about the citys nine month progress, we talked about some really great news in terms of revenue for the city. As i mentioned earlier, the city sought a nine month mark about 106 million better than expected revenue news. Kabila to say that 83 million of that came from property taxes i think our office takes a point of pride for having done so much to make sure there were hoping the city and on top of that, though, will has not yet been complete it will be completing at june 30. Were already anticipating were going to be adding to the role within 7 in terms of role growth. We will be close to 199 billion in assessed value for a city that is 7 miles x 7 miles. That is no small congressmen. On top of that, i think is been mentioned, transfer tax continues to be a strong driver in terms of revenue for the city. This year were looking at summer around the range of 240 million and we know the revenue to continue to be important as the city moves four. So with that i do want to start moving forward to talk a little bit about some of the areas were weve seen challenges and some of our strengths. In terms of some of the major commissions committees might be things that may board and bring people to tears, but these are the things that really excite me. These are things that really help our government to work better and to really help to be more efficient and when other major questions is really the launch of via assessor Information Management system. This is a system that aims to preserve but not only that, to consolidate and make surgical all the office work files in our office. In one consolidated place. Though it has a lot of benefits in terms of disaster recovery, we have no other backup ready these files, it is great in terms of opening up our office as we continue to grow. It also creates a huge efficiency. Things that i think this body the Mayors Office our office in our taxpayers certainly care about making sure the government becomes more efficient. With all the work that we have, our desktop spaces, we had him on server files, it 207,000 fiscal paper files that we have them scattered to our office and file areas, but not only that in our desk areas. In order to be will to bring them all into one place we are launching this new system called aims. Again, were proud of this option. This is something we are ready in the process of implementing. This could be huge huge improvement for the work of our office not only that make sure were preserving the proper Team Property tax Data Information that the city and the state requires of us. Moving forward, one item that you sound very similar to you is transfer tax. Then spoke a little bit about transfer taxes in the past and what were beginning to see is that transfer taxes is something that is of course very highly contentious. Especially when the stakes are very high. One of the things im proud our office is on we have initiated a transfer tax audit program. Overdoing as were taken a look at our highest value transfer tax items and really digging in to make sure that what has been reported is accurate. Recently, these are two cases that came before you in terms of hotel tax liens we came back with if i. 5, 5. 4 million lien and those were really the results of our staff proactively looking to review transfers to make sure that the values that they were reporting were in fact correct. Had we not had this audit transfer tax program at 5. 5 billion could then easily swept under the rug and we would not know to collect them. Again, one of the christ for their hard work and diligence in making sure protecting the weight we need to. Not only do we do that, but we are also making sure that were defending value for the city and county of San Francisco. We speak a lot about adding value to the role. We speak a lot about new construction projects, change of ownership transfer taxes, but one large component of our work in which we work closely with you through your clerk of the board in the assessment appeals board is working to defend the value we put on the role. I cant tell you how critical and important the settlement of our work is. When the major commissions weve seen is that from fiscal year 2013, when i first took office, we took a look at it at the end of the year we had about 6804 City Real Estate appeals having. This year im happy to save the interstate as of may 2016, we will only have 1500 and six cases of same. This is a significant improvement in terms of number of outstanding appeals but more ports, its also a significant reduction in terms of the revenue at risk the city has. We have dropped from 480 million in terms of revenue at risk money that we potentially would have to give back to now only having 140 million of revenue at risk associate with it. Part of our success i think has been to do things smart more . One of the things we have seen is that especially for commercial properties, improving economy, many of the commercial properties may be filing just to preserve the right to be able to appeal cases. They might not merit to the case did not have a strong case in terms of being able to reduce the Property Values. Our office in the past was that a lot of repairing those cases. We schedule hearings and perhaps a taxpayer would never show up. Perhaps they never had intended to fight the case to begin with. What weve done a week on smarter. We now issued will recall 441 in advance. Were asking taxpayers to provide us a ferment of reason why their case is strong and what weve seen is that many of the taxpayers, rather than spending the time in order to prepare those evaluations have decided simply to withdraw their cases. I will give you a point of fact. When we talked a look at last years report, we had about 53 of cases we withdrawn from the sf appeals board last year. In contrast, after we implemented this program this year, 80. 2 of cases were withdrawn. Rather than wasting valuable staff time, rather than wasting the bible time of our board of appeals members, we really are seen affirmative work has helped to bring down all of everybodys waste wasted time and efforts. With that, maybe turning over to my deputy gigi whitley, the presentation. She scored to be speaking to you about some of our budget request but only that to highlight two important areas in which we are working. Are two critical challenges ahead do with not only the continued workload challenges that we have but also the system there will be looking to replace in the coming years. With that, i thank you for your time and turn it over to gigi whitley. Thanks much good morning members of the committee. Talking more about our Budget Priorities, one area of success indicative of our challenges has been our hiring success. Over the fiscal year we made 55 new appointment in the department of about 160 people. 37 of those are new hires. That is a fantastic call, a congressman and a testament to the staff hardware. However, three employees have either retired or left the department this year. For a department this small, of about 160 people, to have a 20 annual turnover rate is a significant challenge. Its instructive to our operations and theres a lot of Institutional Knowledge and it takes time and resources to train new staff. With that, our Budget Priorities reflect longterm strategies to recruit qualified people and retain our existing talent. To do so, we create a new Management Structure to implement new business process improvements, the css as discussed make systematic changes throughout the department. Additionally, we plan to provide career ladders for clerical and entrylevel staff survey promotive and Growth Opportunities within our organization. Weve also added four new commercial appraisers three dbi work order to avoid getting further behind on the commercial Property Assessment we have yet to work. Our Budget Priorities also include working with the treasurer Tax Collector and controller on a new major it project to modernize and secure the citys property tax system the longterm. As you saw in the first slide, were limiting our paper files and plan to staff into spaces designated and design for filing cabinets and with the support of the Capital Planning committee, is funding in our budget to support the repurpose of our office space to become more functional and address mechanical, construction and airflow deficiencies. So whats the status of our caseload . The chart before you shows the number of pending assessment cases were changes in ownership, new construction events, and assessment of appeals. Starting june 2014, through last month in 2016. At the office has made progress on assessment appeals cases and continues to close out older cases, we are not kept pace with the incoming workload from the height will Estate Construction activity. We all the office still has new construction and changes in ownership cases waiting to be reassessed. The estimated tax value from these cases is about 145 million. Funding needed for our city to support critical services. But i draw your attention to the rising new construction caseload. Our office is struggling to handle the new Construction Activity thats beginning to hit our desks. Especially with more complex properties and Large Development projects such as the completion of the transbay area and Hunters Point shipyard in Candlestick Point already underway. So, members of the committee, this is our office has traditionally spoken about our backlog and are caseload in terms of our Real Property workload. While this represents a large portion of what we do, its not the full picture. Our Office Pipeline starts at the recorder where we process approximately 2 and 1000 documents annually. A portion of those transactions, accessible events. Those documents then move over to our transaction unit that process changes in ownership, to determine whether they trigger a reassessment id. Spirit. Paprocki matt unit alone of more than 26,000 cases. Those are cases yet to be reviewed and get to go to any desk of any appraiser. Now we know not all of them will be reassessable but a poor 40 will be. Then the cases become the incoming workload for Real Property division. Did you know thats not all we do . We also have about 1300 personal management cases every year, what line adjustments, personal splits, mergers, more than just redrawing maps. Each parcel change must value the subdivided parcel, validate a stated ownership information, and manually in our system, though from a large property to create individual parcels such as condo units, one by one within our system. Each year the office is also required to enroll in progress new construction value of the thousands of open permits coming from the department of building inspection. The office of value about 1200 properties at 2. 4 billion to the assessment will in progress new construction. Informal reviews also part of our work. That involves a legal obligation to take a look at Property Values where the owner is requesting that a market has declined and that their evaluation should therefore decline. The Office Completed about 2000 informal reviews this fiscal year as well. Within all that, managers must also manage the business personal property division, which brings approximately 130 million into the citys coffers. As was her exemption unit. Even in those units we are behind that were obligated to complete more than 300 audits in a fiscal year weve not been able to meet that target over the years. So, with this in mind, these budget investment seven critical. All this work is done in the to legacy systems you see before you on the screen. With the Assessors Office about legacy it system which is aging functionally obsolete and challenging to get accurate and timely information out of. Our partners at the treasurer Tax Collector and controller are also working on their own legacy mainframe systems planned for decommissioning. Thats why our office is joined together when the Critical Infrastructure and it project to secure an modernize the citys entire property tax systems. They would enable the city to bring in 2 billion annually. The project benefits are clear. Improved taxpayer service. Integrate those functions across the three city agencies. Improve revenue collection. Make sure that a sale that occurs today doesnt become an uncollected tax bill when our office is delayed and processing the transaction and theres already a new owner of the property. Increase access and transparency to information from a special about ownership of property areas, especially for partner departments, dbi, city planning, dpw. Increased efficiency and quality, we engineer our business processes, eliminate those of manual tedious proper processes that take time to build a resilient and it infrastructure that provides robust data retention, backup, disaster recovery. So, please update on the project. The committee has approved this as the next major it project after the completion of the Financial System replacement and the public radio Public Safety radio replacement. Is a multiyear project that is already launched this fiscal year and is well underway with the free partner departments. We are engaging in a process to develop our individual San Francisco business use cases, requirements, and a Readiness Assessment along all almonds of the project to ensure success. Thats why they recommend one points 9 million in our budget is for the three departments and beginning to do the data mapping and conversion of these 200,000 property files and information and tax bills into a new system as well as to burp there for rfp process. That project will ramp up in year two of the budget with system implementation beginning. With that ill close my remarks. Ive included for your reference are you over your budget changes. If you have any questions on that, our office is in agreement with a budget analyst like to again thank the Budget Analyst Office the mayors Budget Office and the Controllers Office for their work. Thank you. Colleagues, any other questions or comments . Seeing none, thank you very much. Im glad to see if our budget chair is going to return . Supervisor farrell apologies, colleagues. Mr. Rose, can we go to your report, these . This to chairman, members of the committee, i believe the committee has our revised report, which was just passed out this morning. On page 15 of that report, recommended reduction to the proposed budget total 536 incidentally, the revision announced less than 500. Just for your information. 530 in 167. Of that amount, 67,000 our ongoing savings. 463 a onetime savings. These reductions would still allow an increase of 6 million or 20. 9 of the departments fiscal year 1617 budget. I recommend reductions to the proposed budget total 77,000 and 1719 aldwych ongoing savings could these reductions would still allow an increase of 6 million or 2012. 2 in the department 1718 budget and as i understand it the department does concur with the recommended reduction shown on pages 16 and 17 of our report. Thank you mr. Is. Any questions or comments for mr. Rose on the report for the report of . Okay. Everyone is in agreement it may entertain a motion to except these budget analysts by clinicians . Moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] up next, we have our Fine Arts Museum. I would first like to call up this dd will see who obviously for years have played such a significant also thank you for being here. Good morning supervisors. Im dd woolsey president of the Fine Arts Museum and im actually delighted to present to you today our new executive director. Now, this is been a wonderful event for us. Hes been exactly one week and he is now seeing the board of supervisors. Very impressive indeed and we are welcoming him from frankfurt but i will tell you that he is austrian means yes and even increased sense of humor. Representative because i know you dont want to know what elicited obviously hes very handsome. Is a very attractive white. He would tell you a little about himself but i feel i can tell you this and he probably can stomach it also is three adorable children. The removing here at the end of the summer and we are very very anxious to introduce the entire family to our city which we know he will love and contribute to so much. He has an mba so he knows how to run the business side of the museum as wells as the arts side and we are very very pleased to have such a wellrounded person did so with no further ado, i present to you max. Thank you so much. Thank you for having me here. I know its permits, my first week in office so i probably would not be with to give you a full presentation on her upcoming fiscal year and all the analysis, but im now in the phase of listening, learning and analyzing the situation. I come with a fairly broad level of experience in using a management having run three major museums in frankfurt for the last 15 years, both in the private and the public sector. The kind of equal a bit both into their scope, attendance, staffing, the great fine arts of San Francisco some extremely excited to be here now to have found a home, to have children in school and everything, but i think for me right now its a challenging but fantastic moment to move ahead with the Fine Arts Museum of San Francisco in this great environment and what i can promise already the upcoming fiscal year is that we certainly want to build on the successes of the Fine Arts Museum, but make them even more welcoming institutions, institutions the road provided Great Service to the citizens of San Francisco and the bay area. I think today is more ports than ever that a museum is not solely a place you visit, but its actually a provider of Cultural Education on the broadest front and its really radiates and spreads out to the community. I think thats what the museum is about and i think thats what it will be about in the future. Especially, in this great moment when the i can say this is a european, when the whole world is looking at San Francisco as the epicenter of the great city in development, i think cultural institutions in the city play a crucial role and we want to be also fantastic ambassadors to the cultural life of San Francisco to the world and i think thats also something we are working on right now in regard to developing even further programming and ambitious programming for our audience here but also for audiences way beyond our physical map. They just much for having here. I dont know if you have questions on my family or anything. I honestly am happy to be in california as an australian former governor who came from austria so i hope i can step into the level of experience. Thank you. Colleagues, any questions . To the presentation want to go through . Good morning. Richard benefield the Deputy Director and chief operating officer. In this budget process we think we think the board of supervisors made mayors budget analyst. When agreement with a budget analyst recommended reduced budget for fiscal year 201617 of 19. 4 million, which is 6. 5 higher than the original fiscal year 201516 budget of 18. 3 million. The majority of the rise is due to increases in negotiated salaries and benefits and admission revenue and expenditures. At the april meeting of the board of trustees, the board voted to increase general admission fees for nonmember adults from 10 to 50 beginning july 1. This is the first increase in over a decade command also on july 1, going forward, all visitors under the age of 18 will be admitted free of charge. Capital project funding is proposed to decrease from this years 1. 8 million to 1. 4 million in fiscal year 201617. In fiscal year 201516, we continued capital work on the roof and exterior masonry at the legion of honor as well as projects to place the fire alarm system and feeling security shutters. We corrected drainage issues in the entry court and continued replacement of failed exterior lighting. In fiscal year 2017, capital work will continue on the roof, masonry and 630 shutters at the legion and repairs will be performed on clouding supports on thetower. Approximately, 27 of our operating budget is supported by the city but this amount over 50 is from Museum Security services. The fine arts using them of San Francisco both public and private employee over 530 fulltime and parttime employees. Additionally, we utilize the services more than 500 volunteers. Although we are a dynamic institution within exhibition and Program Schedule full of exciting changes, we have no major new policy initiatives were investment changes to report other than the hiring of macs as executive director. We at the museum on agreement with a budget Analyst Recommendations do not believe that followup is required. Thewas funded in 1895 and the lehonor in 1924. Museums have served the public for over a century and we continue to serve our community , the region, and the global audience with exceptional exhibitions and public Educational Programs while caring for the cities esteemed Art Collection. No, i would like to highlight a few over activities past year. As a combination to the citywide celebration of the 100th anniversary of the Panama Pacific International exhibition, on october 17, 2015, the exhibition jewel city, art from San Franciscos Panama Pacific International exposition opened at the. The show revisited the vital moment in the inauguration of San Francisco is the west Coast Cultural epicenter. The landmark exhibition we assembled from around the world more than 200 works by major american and european artists which were on display at this defining event over 100 years ago. In conjunction with the Opening Weekend of jewel city, which coincide with the 10th anniversary of the new building on saturday, october 17, we opened our doors for communitybased featuring free admission to all galleries and programming throughout the day from 10 am until 10 pm at the entire city was invited and that 12 hour period, we welcome us 13,000 130 three visitors at no charge. Opening in january, the legion of honor, to many exhibition sublime beauty raquels portrait of a lady with unicorn focus on one row feels most beguiling and enigmatic paintings get the masterpiece presented in the United States for the first time was lent by the gallery of work visa in rome was first recorded as being in the collection in 1682. Opening at the legion of oh honor in february. Then art painting arkady was the First International presentation of his work to be mounted in the west coast in half a century. The exhibition features more than 70 works that stand the artists complete career from his early masterpieces through his experiment the photography to the late interior scenes for which is best known. But then Art Exhibition was one of two blockbusters at the museums this past year with over 110,000 visitors and over 3300 scholarly exhibition catalogues sold. Another blockbuster at the museums open in march at the. Organized by the fine arts using them of San Francisco, World Premiere retrospective of the work of Oscar De La Renta h h one the most beloved and influential fashion icons of our time. The exhibition was open for only 69 days with an average of 3000 visitors a day making it one of the most visited exhibitions. The fine arts using them also published the beautiful catalog of the exhibition and a coloring book of de la rentas drawings. More than 5000 catalogs and almost 4000 books were sold during the run of the exhibition. During the Oscar Dave Rogers show in the first week of april the San Francisco ancillary of the finest exam once again organizeto art the ever popular pairing of floral designs with works of art and the collection. This year deserves mention because it was one of the three most attended in november of 26 and 2016 the San Francisco opera will premiere a new production of marys idea designed by the Los Angeles Based artist that now. Then his work incorporates diversity influences in his marketing including egyptian hieroglyphs, or the characters, street art and game tags. As a cross promotion with the opera, the finest museum invited redneck to paint the gallery walls with his contemporary take on glyphs as a background to our reinstallation of our egyptian mummies. The installation opened in may and be on view at the legion of honor for the next two years. As a complete report on fiscal year 16, when we say the finest easy and are on track to reach their goal of 1. 5 million visitors this year. A slight increase over the Previous Year. The Fine Arts Museums host access days for people with differing abilities throughout the year over 850 people in the community participated museums access days this past year. Close to 90 of these visitors we sighed in the city. Approximately 125 doors have been led in American Sign Language this year and artful discoveries gallery tours are held twice a month for individuals living with dementia. The family members and their caregivers serving a were over 260 people this year program nearly tripled in scope compared to the Previous Year. We predict more growth from an Effective Partnership with the Northern California alzheimers association. The Museum Ambassadors program has been in place for over three decades now. This year the program employed and trained 50 San Francisco Unified School District high school students. In turn, the teenagers engaged 4000 San Francisco School Children in grades 35 and classrooms and in our galleries. The finest easy amp offers free guided tours for k through 12 youth and School Groups over 49,000 students participated in towards work classes this year. 59,000 visitors took advantage of daily three towards giving him deeper insight into the citys Art Collection are special exhibitions. This past year, proximally to an and 70,000 people participated in our combined programs for access and education. The Fine Arts Museums have offered friday nights for over a decade programming on friday nights is free and open to the public in this past year we were able to offer free admission to the collection gallery to a generous grant from the hearst foundation. Through a cross that mark departmental effort and new marketing is a strategy, they average more than 3000 visitors per nights. For the year, we have seen 33 friday night and estimate over 70,000 people attended to enjoy music, art making, artist demonstration talks, and the galleries and exhibitions. 47 of the visitors on friday nights are San Francisco residents and 775 local artists and musicians were employed during the 2016 season. Artists have long been inspired by the promise and peril of the American West this summers exhibition at the legion of honor wild west claims to the pacific traces are shifting sense of the country last frontier. Our curators assembled more than 170 paintings, prints, historical objects, and other works from the collection of the Fine Arts Museums to illustrate the artistic diversity of this fascination with the west. As a counterpoint to the exhibition at the legion of honor isthe great American West opening in july at the. Boucher has long been drawn to the subject of the American West in its role in our national mythology. Organized by the Fine Arts Museum, this exhibition explores the range of media bouchers commitment to depicting the evocative landscapes that first inspired him as a young man ernesto compels his work today. The trustees must staff, and volunteers of the Fine Arts Museums join me in thanking the supervisors, the Mayors Office, and the mayor, and the citizens of the city and county of San Francisco for their continuing support and participation. Thank you dennis. Colleagues, any questions or staff at all . Ms. Rose, give it your report please yes, mr. Chairman and members of the committee, on page 11 of our report recommend reduction to the proposed budget total 92,000 dollars and 1617 of that amount 50,000 our ongoing savings, 4476 onetime savings these reductions was still allowing increased in 1 million or 6 in the department 1617 budget. We also recommend closing out prioryear unexpended encumbrances of 1483 for total general fund savings of 94,000 in our recommended reductions total 67,000 166 and 1718 was her ongoing. These reductions was still lower in increase of seven and 7000 535 or 3. 6 in department 1718 budget as i understand it the department does concur with the recommended reductions which are shown on page 12 and 13 of our report. Thank you mr. Rose. Colleagues, any questions for budget analyst . Supervisor kim the question to the budget analyst is one of the fine arts for the presentation i did really enjoy the oscar renter exhibit so thank you for that. Also, do appreciate the move to keep our museum open more in the evenings. For so many less the work and cant access museum during the day its great to have this accessible to many of our tourist and visitors. I love to figure out ways we can have the museum open on evening so that more residents can enjoy it. I think tremendous that youre bringing to our city. Thank you supervisor. Any other questions or comments colleagues . Thank you to the team. With that, colleagues and to the motion to accept the budget Analyst Recommendations pending public on its . Moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] thank you very much. Next, this of you last one before our break we have the Mayors Office to present. Understanding were in agreement if we could present quickly. Good morning supervisor is benjamin Deputy Director for finance and administration for the Mayors Office of housing and Community Development. Since our part of the Mayors Office comprises the bulk of the mayors Office Budget i will be presenting the majority of the presentation this morning. If you take a look at this slide showing the general fund uses by service area, so different categories of the Mayors Office does, you will notice that over 90 of the Mayors Office General Fund Budget is part of ocd. The 65 Affordable Housing and 26 Community Investment, which is basically our grantmaking nonprofit organizations in the community. How that breaks down, if you take a slightly different look, if you look at expenditures general Fund Expenditures by type, bows and 167, proximally 60 of our general fund revenue will be spent on Affordable Housing loans, about 20 on grandson nonprofit organizations with a balance supporting the operations of the department. I want to take a moment and go quickly to some of the key 1617 proposed budget changes in Affordable Housing on. First, we are proposing a third year of borrowing 25 million from future Housing Trust Fund Allocations and we are also including in this years Budget Proposal the transaction costs for all three years worth of borrowing. The transaction cost for the first two years with the borrowing were not included in previous budgets. We are also including 33 million of Expenditure Authority that supported by loan repayments from previous Housing Trust fund loans that we made to Affordable Housing projects should we have already received about 40 million of that revenue in repayments and the remaining 20 million we place on control the reserve, so that when we received that money we can loan that money out, again, to knew of what housing projects. The budget also includes the charter mandated increase in the Housing Trust fund of 2. 8 million each year, and then finally, it includes the elimination of the onetime 1516 amount of 8 million of tax exempt bond revenue we received from ocii and were also aligning treatment of repayments from former sf ra loans to house those loans are treated for the originated loans in the budget. In the Community Development realm, we have included up to 8. 5 billion of revenue from hope sf market rate land sales to sport hope sf development. Whatever we received a market rate land sales will be dedicated to supporting the hope sf program. Weve included a 2 million work order from dbi for pilot nuisance Abatement Program and housing andforth Code Violations and weve included 750,000 in new funding for Pilot Program supporting housing for seniors with disabilities and also additional immigrant service grants. On this im not going to go through it. I just invite you to take a quick glance at all the amazing work that we have underway and 1617 in the housing realm. We are working really hard and building new lots of new units rehabbing lots of new units as im sure youre all aware and as you glance through this list, many of these projects will be similar to you i imagine. This summary table organizes the budget comparing it to 1516 and then looking ahead into 1718. The numbers in the second column the change from 1516 ive already walk through on the slides all those major changes. But i do want to address the last column because it appears as such a large decrease in the budget for 1718. I just want to walk through what that is comprised of. First of all, if the elimination of 25 million darling from the Housing Trust fund as well as the related 40 million budget for the onetime transaction costs associated with the borrowing and thats not can be continuing and 7018. Production of production of 9 million in onetime one land Sales Revenue and a production of projected loan repayment of 40 million to the Housing Trust fund and for both 1516 and 1617 weve contributed 2. 5 billion to housing accelerator funds. That goes away in 1718. The final part of the reduction in 1718 is due to the beginning of debt service for the Housing Trust Fund Borrowing because of the way the budget is structured, it appears as a reduction in the mayors Office Budget and it appears elsewhere in the budget as an increase. Those are the first four rows of the table here. The last wrote summarizes Major Administration and would invite my friend and colleague, carol lou, of to briefly address the mayors administration. Good morning supervisors. As benjamin before the mayors Office Budget is comprised of Mayors Office of Housing Community development and mayors administration. As demonstrated on the stable, 90 of the budget changes related to Affordable Housing. And loan repayment on the ocd side. On the administration side, a proposal goes grows the budget by 659,000 budget the property of. This is primarily due to citywide negotiated salary and benefit Cost Increases for existing staff. Attrition change, and the addition of one position to repair for collective bargaining. We are in agreement with the budget and would save Analyst Recommendations and benjamin and i are available to answer any questions you have about the budget itself and we have senior staff from ocd to answer any programmatic questions. Thank you. Any colleagues questions or comments . Supervisor tang i dont have a question that i want, and generally on the mayors proposed budget. I know that the mayors budget team works very hard to put together the budget every year that i may be a little biased but i do feel that they consist of a team of very talented individuals who year after year and not able to ask for any type of salary increases because of the nature of their work but i want to go on record saying that i believe that hopefully in the future the mighty conversation about that. They put some work into developing our citys budget each year and never see an increase. So i want to applaud and commend you all for the hard work that you put into our citys budget. Colleagues, and a the questions of comments . Okay. Mr. Rose go to your report, please yes. On page 34, recommended reductions to the proposed budget total 60,000 and 1617 ongoing savings. These reductions would still allow an increase of 48 Million Dollars or 43 of the department 1617 but that we recommend approval of the interim exception. We also enclosing a prioryear unexpended encumbrances 22,000 830 which will allow the return of that amount to the general fund. We recommend closing out two in a 17,000 a unexpended fiscal year 1516 appropriations not assumed as the mayors fund balance of together, these recommendations total twitter 99,000 in general fund savings in 1617 and in 1718 recommended reductions to the proposed budget totaling 69,000, all of which are ongoing savings and as i understand the department does concur with the recommended reductions which are shown on pages 35 and 36 of our report. Thank you. Collect any questions or comments for budget analyst . Seeing none, could i entertain a motion to accept the budget analyst recommendation . Moved and seconded. We can take that can we take that wi welcome back to our brother scheduled budget and finance committee for june 16, 2016. We are rejoining after recess. When the middle of that items five and six and hearing Different Department budgeted up next we have general with city responsibility and i know michelle from our Comptrollers Office is going to speak. Hold on one second. Thank you good afternoon. General city responsibility contains funds allocated for use across many City Departments. The largest expenditures are transfers to the hospital and to other funds for baseline expenditures mandated by the voters. About 930 million in the first year. The second largest expenses debt service just over 200 million in the first year. So its a small flavor of whats in the budget and we are in agreement with the budget Analyst Recommendations. Okay thank you very much. Colleagues, any questions . Bistros can we go to your report, please yes mr. Chairman. Members of the committee on page 60 of our report, i recommended reductions to the proposed budget total 300,000 in 1617 ongoing savings. If reductions would still allow an increase of 121. 4 million or 10. 9 in the department 1617 budget and for 1718 we do not recommend any reductions to the proposed budget as i understand it the department does concur with our recommended reductions shown on page 61 of our report. Okay. Thank you very much. Colleagues from any questions for our budget analyst . At that point and that i motion to approve a budget analyst repetitions . Pending Public Comment . Moved and seconded. We can take that without objection. [gavel] up next with our Comptrollers Office mr. Rosenfield, welcome good afternoon Ben Rosenfield city controller. Youre familiar with our office. Ill be very concise but as you generally know we want to ensure the citys financial integrity and to promote efficient effective and accountable government. We provide a number of Different Services your and our government always the financial services, accounting, payroll, we administer the citys budget. We manage the city status. Additionally, we have eight and array of auditing and reporting, and assistant services that we provide over there is City Operations and performance. Importantly, increasingly, we are running the core it systems on which many of these services work. Our 1617 budget totals about 16. 9 69. 5 million. This is showing you just and broad scope the Different Services and divisions we operate. I think the ones to note today that were rightwere halfway through now in a very large project which this board approved last year to replace the citys 35yearold Financial System. So you concede that makes up about 20 of our budget for the year ahead. 19. 4 million. The rest of these are these other Ongoing Services that we provide. You see that in the broad project in the brought art of our budget as well. With growth occurring from 1516 into 1617 and the declining somewhat and 1719 at the project comes to an end and we moved to an operational phase. You see the same pattern with the general fund report. So, really this project am a which at the time we started was the largest most complicated and most expensive it systems project the city had at that time started, really, the dominant story in our budget and frankly in a lot of the work we are doing in the department a lot of the finance the finance families working on these days. I wont run through a list of current your accomplishments, but weve highlighted some of them on this slide should we have completed a number of important milestones this year. On the systems we wanted weve upgraded payroll Human Capital system do we implement it four years ago now. After the board authorized us to start the Financial System replacement project, this time last year, we very quickly ramped into it and were now halfway through the project and so this week a month we finish the design phase of the project and weve actually already started the building and configuration of the new system. In advance of a july 1 next fiscal year launch. But of course weve also sold bonds, we were all worked on a host of other initiatives. With completed 70 audits this year. We are very proud of a new Public Performance scorecard weve launched thats available on a website. It provides the public and policymakers insight into how different City Department and operations are doing against their adopted targets. So just a quick snapshot of some of things were proud of in the current year. Looking at a couple of the key initiatives for next year that are contained in a budget, i didnt commit the largest ago one is this project. This is a 50. 6 million pop overall project and were halfway through it. It touches not just the existing legacy system that we are replacing which we call famous, but its grabbing a host of other systems that are grown over time due to the limited functionality that famous provides. So were really excited about the new fortune hourly this is bringing to the city get we think make it easier for vendors do business with us. We make easy for employees to do the work and we think it can provide a vast amount of new information that can be available to Department Heads and the mayor the board of supervisors and the public to better eye on whats going on within our finance and functions in particular. We have also in the budget proposed using our City Services auditor baseline a couple of new initiatives. One is focused around a mandate we have to generally help the city improve the way we buy things, and so we have proposed in the budget a small team of four ftes which we intend to team with the office of contract administration, work on modernizing some of the ways we buy things in the city. That can be host of initiatives. This is a twoyear limited Term Initiative but we think it can yield real fruit for constant frustration for City Departments could additionally, weve been growing our it auditing function in the city given risk we have is the government in that area and we intend to embed two it auditors the Security Initiative that the department of technology is launching this year. So a lot going on in our budget just highlight three key initiatives, those are the ones that rise to the top of our list. You have a number of other items on the agenda here today could you we are bringing forward and some of these are ministerial ones that control. This brings for to help facilitate the bigticket others ideas. This a brief synopsis of what items number 10 to 15 do. Item number 10our offices proposed working with real quick, would you call item i should do not use would you call item 1016, now. Item number 10 [reading code] item number 11, [reading code] item number 12, [reading code]item number 13, [reading code] item number 14, [reading code] item number 15, [reading code] item number 16, [reading code] okay, thank you. Sorry mr. Rosenfield i can briefly describe these different pieces of legislation. Item number 10, theres a current administrative code allowance allows departments to establish prequalified pools of contractors to draw upon for different professional and general services. The current duration on those pools is two years. Often times will take it upon six monthsi might even to create apple. So we proposed here were gritty city administrator in the city purchaser, is an allowance that apple could exist for four years provided there is a midcycle reopened to allow new bidders into the pole. We think an efficiency measure per contractors. We do a lot of this kind of conduct and work in office we think more broadly will help manage contracting work in the city. Item number 11, this is a state code requirements. Most counties use consultants to a complex sales tax among other things and requires the board of supervisors authorization to officially designate them as the consultants they can have access to Certain Records that the state board of utilization maintains. Item number 12, is relates to the access line tax. This is a flat fee tax that the voters adopted in several years ago. This permitted to grow by cpi with the boards concurrence. So, this is seeking your concurrence to about this flat dollar value fees to grow with inflation. That inflation is 3. 81 for the year ahead its about worth about 1. 4 million annually which is assumed in the budget before you. Item number 13, please do it ministry of duties that falls to us under the Voter Initiative creating neighborhood beautification fund. We had to do a calculation every year in the Controllers Office to determine what amount of a Business Payroll were gross receipts tax they can voluntarily contribute to this program in order to reach a revenue limit thats established and a Voter Initiative. We performed a annalee. Using a measure before us much before i calculation indicated business increase next year the percentage of their overall tax contribute it hear from 2. 6 to 3 . Each year as part of budget process one of the things we do in offices go through three different code records and asked us ourselves questions about difficult requirement reporting and ask ourselves if the still add value. We have often and using this from us in the past proposed illuminating different code requirements were we think frankly, its turned into a task that takes time and paper but doesnt add value. So we proposed this year to eliminate a reporting requirement that each defendant has to file annually with our office the clerk of the board, and the mayor. To report all their membership. This is less than 1 10 of 1 of city spending that that information is available electronically now whereas it wasnt 25 years ago when this was established. Lastly, number 15, our certification of Comptrollers Office certification, that Certain Services to be provided a lower cost than with civil servants. They host of Different Services that are listed on the agenda. These are all continuing services. These are not new contracting out proposals but rather the Continuation Services that historically been contracted out. Okay comments any questions or comments . Supervisor yee thank you for your presentation. I am just curious, about your ftes. Just some minor things, but theyre going up basically by about 12 through next year and you are presentation only accounts for six. I am just curious in going two years out, i see that youre anticipating that you are fewer people. What is the reason for that also . Those two questions. Good questions. Ive highlighted some key initiatives on this slide that you reference. Those positions which of the City Services odder baseline. We do have a couple of other new proposed positions that increase our fte count per four of those are related to positions related to accounting Internship Program that we manage on behalf of all accountant accounting functions in the city. We bring in training easy cheer working with the Steering Committee of accountants from throughout the city. We run them through a program involves rotation through the government then replace those accountants, once trained, into bacon accounting positions in the city. We propose for additional trainees in the budget to accommodate expected retirements. We see coming in the accounting ranks and the demand we have coming in from departments for accounting basements. So theyre funded by work orders from other City Departments where they anticipate accounting vacancies in the year ahead. Approximately, how many training people to actually train in this . Our current year program ran about 20 trainees through the program. So this would be an increase next year of that amount. Im sorry. Maybe im not understands and youre asking for for additional trainers sorry, not trainers. Trainees. You have accounting positions but here throughout the city of course. We havewe put the trainees one requisitions in our office emma wilder going into Training Program and relocate them out. Got it. Got it. I was can see need for trainers to train 20 trainees. The second question is on the downwards. So part of what youre seeing there in the out years is related to project related to positions expiring. As the project comes to a completion the project is been completed with a mix of Civil Service and contracted staff and what you see part of and 1718 is perhaps that year the project team shrinks and that drives our fte count down in that second year. Thats predominantly dutch if you are seeing. Thank you for your answers. Colleagues, any further questions for our controller . Okay, this euros and can we go to your report, please yes mr. Chairman and members of the committee, on page 19 of our report recommended a reduction to the proposed budget total 274,000 and 1617. Those ongoing savings and still allow an increase of about 6. 8 million were 10. 8 in department 16 seconds of the budgeted we also recommend approval of the request of the interim exceptions. In addition we recommend closing a prioryear unexpended encumbrances of 21,000 dollars which would go back to the general fund so together these recommendations equal to 96. 324 general fund savings and 1617 and 1718, recommend a reduction totals 230,000 all of which are ongoing as i understand it the controller does concur with our recommended reductions and are shown on page 20 and 21 of our report. Okay. We are in comparison i like briefly the opportunity to thank mr. Rosa and the mayors Budget Office in our director of finance administration judge anyone who carries us through this entire prosecuting thank you very much. Colleagues if theres no other questions can i entertain a motion to accept the budget analyst recognitions for the Comptrollers Office . Moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] mr. Chairman, would you like to take Public Comments on item 10 316 . Will take Public Comment on items 10 through 16. Anybody was to comment. Seeing none, Public Comment is closed. [gavel] can i entertain a motion two 41016 to our full board of supervisors for july 12 . Moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] mdm. Clerk, we dont need to call. Reckon park is up next. Good afternoon supervisors. We have a short presentation. Our budget is very closely linked to a Strategic Plan which is approved by her commission in over a year ago in this a highlevel summary but i think its worth noting in the plan are five Core Strategies for how we operate. Each of the strategies theres a number of objectives in over 50 initiatives that guide the work that we do in the investments we make. The most noteworthy item in the budget was obviously the passthrough proposition d a short while ago in the Mayors Office did ask is to budget as if we were assuming that that opposition d were to pass. This budget reflects an implementation proposition d. The new trucker amendment guarantees this department a stable her general fund support by ensuring the general fund subsidy will not drop below the 201516 baseline of 64 million. Our subsidy thats our subsidy in the current fiscal year. The measure also increases the apartments support by 3 million a year for the next 10 years and by the percentage that the general fund grows work contract for the five years after that. Really, with the stars it protects the department to have to make reductions to the general fund subsidy portion of our budget when we are in a general fund deficits. And we can take a look at how our current oppose budget compares to the previous fiscal year. The biggest area of growth in our budget is clearly in our capital programs. Its a very very healthy year. For our capital program. The Capital Budget fluctuates a great deal between this next fiscal year and the year after. Our Capital Budget is often lumpy and its a lumpy because we receive revenue dependent upon issuance of bonds were when we qualify for grants and in this case, 1617 is a very healthy year for developer fee revenue. We were 19 million in developer fee revenue, which would club back into are parking system to acquire and develop new open space. That number drops in 1718, which is why you see some of the reductions there. We do have a number of revenue changes over 1516. Just to refresh our budget, the sources in our budget are comprised of the of three primary buckets of revenue. The biggest presentation many times and a chunk of our budget is from the existing open space fund, which is essentially a set aside about [inaudible] property tax revenue. Then theres the money we earn throughout our parks system are earned revenues of second primary source of revenue and you can see here a number of places where that revenues categorized. Then the third is our general fund subsidy. Revenue changes of the resulting from growth in the parking garage revenue. You actually see a reduction in Program Fee Revenue and what we do every year when we budget, we look at how well retract the budget and we are very conservative and correct based upon the prior Years Experience and we were little too aggressive in a revenue projections last years weve corrected that this year. It also reflects this is a good note, the growth in our Scholarship Program. The winds denied access to programs or services in our camps. The programs in the time of and general manager, a Scholarship Program has grown from about 80,000 a year subsidize programs to nearly 1. 3 million and we are seeing continuous yearoveryear growth in our Scholarship Fund and that actually obviously impacts the bottom line as it relates to our program fees. Weve got some increases in the golf fund due to increased rounds at harding which is a good thing. You see priority revenue in savings which include additional funding for claimant and 1617. Then, under the other categories which is a big lumpy category of her variety of things that includes gifts and grants, work orders from other departments, and then that is the source of revenue that includes the developer fees we received. You can see thats going toit increases significantly and 1617 and as scheduled to drop and 1718. So, some highlights from the investments we make and again, when we go through our budget process, both internally and then at our community meetings, and before our commission, we very much link our decisions about investments to our Strategic Plan. This first group of investments is really linked to our overall strategy of providing public space and it is really with most noteworthy about that this might in all, Capital Budget allocation for us which is really terrific. Is he some detail on a subsequent slide but in addition to the general fund capital allocation, we have funding from the Downtown Park funds which were allocating this year to improvementsplayground and complete funding for instruction on thy place on link on hill. We have fees from a variety of neighborhood planning areas, which is running several park renovations including at jean fran, rec ctr. , garfield pool, mission rec center, a new park in soma, 17th and fulsome, and then we have some gift funding which is open support the renovation about outdoor pool. Look at her general fund capital really reveals property in action. We have a Pretty Healthy amount. We have made very clear policy decision to fund at least 15 million a year in general fund capital in the next two fiscal years and we think oregon to continue to do that indefinitely. You can see what it does to our ability to just take care of nuts and bolts maintenance. You can see the increase in our general facilities fund, our increase in camp matter which frankly, woefully funded and not really taking care. Funding for ballfield replacements both Synthetic Turf and grass. The grass fields is something we didnt really invest in good urban forest rate, were making very significant investments in urban forest rate over the next two years. Court resurfacing, paving, you see Shoreview Park which is new for 1617 batson oci property that we agreed to steward and some funny transfers to take care of some difference maintenance issues. Then in year two of our budget, we work with the Mayors Office to fund three playground projects where we already have some funding but it allowed us to extend the scope of the sites. These are at buchanan mall, height chart and john mccauley, parks in the tenderloin and hurts the ground in the bayview. Were able to make some staff investments. Were adding a project manager for deferred maintenance project that ive had the pleasure of talking to a few of you about that. As we have met with you to discuss our budget. We have a very significant capital program. Right now, our Capital Project managers are carrying a workload of approximately 120 different Capital Projects throughout our parks system. The workloads are extremely large. What happens is, that some of the smaller projects smaller Capital Projects often have to take a backseat to the larger part renovation projects. So, last year we hired our first project manager. Would you hire a different one. There will hopefully speed up smaller low dollar Capital Projects that still do require some project management that will enable us to move a little bit more quickly with respect to some of the smaller Capital Projects that come out of this budget process, our threeyear participatory budget process or are small friends groups philanthropic projects. Then, the other investments in deferred maintenance are were going to add to our corporate yard. Would adding an electrician and a plumber and an it analyst to help us with our deferred maintenance plan. Moving forward on to play and recreation, we are adding some programming and outreach in our underserved communities. We want to increase the number people in our Scholarship Program, increase the number kids in our summer camps. Right now we are operatingwere doing pretty well. Property 92 summer camps across the city right now. One out of every 10 children in San Francisco is in one of our camps. We have over 11,000 kids this summer which is pretty awesome. By that include some funding for transportation, which is often a true equity barrier to be able to participate in our programs and services. Perhaps the single biggest project were tackling in the next couple of years is something we are calling our lifecycle project. For the first time, we are trying to steer our parks system into more of a in elliptical system of preventive maintenance and window cycles. Two opus plan. The truth is, our parks system responds to deferred maintenance fees when something is broken and people are unhappy. We want to move off of that into really taking a much more holistic look at our Capital Assets in our parks and understanding how long, what is the average lifecycle of a tennis court were Basketball Court were pathway or water fountain. By collecting that data and making some assumptions we will be able to better plan how to spend the dollars the we now have through proposition d and a commitment to do more deferred maintenance funding. This is a very very very large task will take us a couple years. Essentially going to be mapping and analyzing every piece of inner structure in a parks system. Thats no small task. Moving on, we take our environmental responsibilities, Environmental Stewardship responsibilities quite seriously. Were adding arborists. Were adding environment the planner and an it and specials two opus with coyotes, to help us with some of our challenges as the world gets a little bit more regulatory with respect to the types of herbicides and pesticides that can be used in our park system. These require a lot more care and attention. Im also very thrilled were adding urban agriculture site coordinator to manage how the meeting farm which is aits been run by a fringe group and volunteers and this will allow us to do more programs. Next number, youll see a farm gambit alum amy farm which im excited about and be able to do some neat things the site court, nader at that form. I did fail to mention that one of our additional investments is something us were proud about we run a program called green acres. Which is a youth environment or education and Workforce Development program for teens. Were in our fifth year. Amazingly Successful Program. Each year a cohort of about 15 teenagers spent about nine months with us. Three weekends a month they get paid a stipend and they develop leadership skills, environmental education,. Its been a really Successful Program could we have had several kids want to be in it for more than one year and some have moved on to work for us in order volunteer leadership responsibilities. So one of our investments will be able to allow us to offer a second cohort each year rather than just one class of green acres. We will have to. That tends to our sort of final core area of investment in that center staff. Theres been a lot of discussion about Workforce Development. We have a very Successful Partnership program in the Workforce Pipeline in our organization. We know of a preoperation program, which we support with the puc and dpw. So working to continue to make investments in our prepressure program to make sure that opportunities exist for local san franciscans to learn a skill into potentially either join our organization or another field serving organizations, and then some other small things. One of the most significant investments that were making is in our hr unit. We hire a lot of people. We have about 900 permanent ftes we about 1500, 69 people that were first every. We have a lot of seasonal employees. We have a lot of kids. Weve been aging workforce as does every word organization in the city. The a lot of attrition. One of our biggest obstacles is been able to actually fill the vacant boots on the ground. So, we are starting with some extra resources in creating the ability for us to hire more quickly and more robustly. So, overall, this is a really terrific budget. We certainly thank this board for it support of our park system. There is no question that this is a city that loves its parks and needs its parks, and we are grateful for your support, and i also want to really think the Mayors Office and harveys team in my own staff on within a collaborative and successful budget. Thank you. Thank you. Colleagues, any questions . Mr. Rose can we go to your report, please yes, mr. Chairman and members of the committee on page 39 of the report recommend reductions total 725. 0 51 and 1617 of that amount. 150,000 ongoing onetime savings. In of that amount we recommend reduction 699. 136 or general fund savings. These reductions would still allow an increase of 27. 3 million or 15. 3 of the department 1617 budget. We also enclosing a prior unexpended encumbrances of two and 20,000 so that results in total general fund savings of 922,000 in fiscal year 1618 recommend reductions total 150,000 which are ongoing savings to the general fund. As i nursed him commit the department does concur with the recommended reductions. Which are shown on pages 4044 of our reports. Will be happy to respond to any questions. Think. Colleagues, any questions . Okay. Thank you mr. Ginsberg for being you. Congratulations on prop adult. Another but you. Can i entertain him motion to [inaudible] moved and seconded. Were going to accept the budget analyst liquidations pending Public Comments. We cannot vote it out yet. Bush and my supervisor tammy. Moved and seconded. We can take that can we take that without objection . Without objection the motion passes. San diego up next we have dpw. Were waiting just a manager our director is on his way across the hall. Here he is. Public works department. Thank you supervisor tang. You can wear your warrior saturday, you know. Thank you. Good afternoon. The continuation of the budgetill be doing a whole presentation . Were doing the whole presentation, okay. You can do the shorter one if you like. Agreement we are in agreement. Your call as long as you want to make or shorts first of all i just want to thank the mayors Budget Office for working closely with us. We have to major programs that are addition of additional staff he to help us clean our neighborhoods. Thats going to be big for us. As you know, over the last year we than diverting staff to other parts of the city. We just didnt [inaudible] with this recommendation, it will allow us to be more stable and do our work a little better. If you hold on one second im clerk would you call item 17. Item 17 [reading code] thanks. Sorry about that i just want to make sure your legislative item was called. Should i continue . Yes, please so thats one of the initiatives were very appreciative of. The second one is the Pitstop Program that we will have its a Pitstop Program that we will be expanding. We were when we started the pilot about a year and half ago, we have three. As of today, we are at 13. So we just added two new ones that started a few days ago. So, in the budget it takes is up to 15 toilets in our program. Five of them are double and 10 of them are mobile bathrooms with this budget allows us to actually put this [inaudible] since the inception of the program we have been renting toilets and so we will own these toilets and also gives us funding to be able to service them. So, thats a huge for us and will be able to make a big difference. This slide here shows mostly where our budget is spent or the sources of them and you can see a huge chunk of the public works received from the insert of my interdepartmental work orders. Client so we have with mta, puc, library, police, fire and so forth. They are our clients as you go down the chart you can see the various percentages. I think of interest to you is our general fund, which is 35. 1 million which is 12 . This slide shows how its being spent within the county itself. I will take you through this real quick. In terms of positions, most of the new positions in the agency are with mostly our infrastructure and design division, and thats really stepping up to deliver projects and you can see theres about 41 staff in infrastructure, and about nine in design and construction. Then, the next large area is street cleaning. Then, diminishes. Of course, some 11 in urban speed forcefully. We did a little bit of restructuring entirely so six positions are moved into urban speed forcefully which are the offset from street use and mapping. Then, in terms of counsel budget, the forecast looks, 19 larger than we were last year. And we are very appreciative of that allocation could those funds will allow us to continue the work of stabilizing telegraph hill. We are undergoing a major project at un plaza to start using recycled water from un plaza and in terms of renewals, there are 40. 5 million for street resurfacing in our structures and bridges safety upgrades that are needed this 11 million there and 5. 5 million for curb ramp. The balance of our capital includes the capital revenue includes impact fees, gas tax, and wrote her fund. In addition to some of the federal grants we get to help with our bridges. I think that is an overview of what the next year or two years is going to look like it faith. The believer session from supervisor kim thank you director. I just want to first of all appreciate the Public Works Program with a pitstop in partnering so closely with our office. First initiated in the tenderloin and expanded. Its great to hear this now you said, 13 that are open today theres 13 that are functioning as we speak fully staffed and one this budget will go to 15 so tomorrow we will be added what are the new locations that we have . So, in the most latest one is at the skate park by division. Then, we have one up in the heat asked very. The next two, i think are coming on when this budget as is this one and they view anything the other one is by victoria monroe park at thats great to hear. Thank you so much for your work on it. It really makes a tremendous difference for our neighborhoods and its great to see the results of their dues steam cleaning requests and reduced you know him and asked him and on our streets and being able to provide folks with the place they can go. That is clean and dignified so thank you. Thank you. I guess sort of related but olympic different to my notice there is enhanced street cleaning in your budget in terms of new initiatives for the upcoming year. I know that a lot of our merchants have been asking for steam cleaning or so forth on their sidewalks. But i know that also, even though we had allocated funds for specific corridor the drought had taken place and we really had to be a valuate we deploy these resources using water. So i am wondering, how does the department is doing with issues such as the drought but then needing to respond to neighbors request about things such as steam cleaning . So during the drought period, we really get a lot of work looking at sources of water and now we are using a lot more recycled water to do a lot of our cleaning. Some recycled water has different classifications and we are working closely with Public Health in terms of using recycled water for spring. There are certain types of classifications of water that cannot be used for spraying but in terms of where we are now, we do have a good source and were able to ramp up some of our wash downs as we call them. We are using quite a bit of recycled water and in this budget, as part of our capital improvements, we will be installing a new i will call it a cap rate language to vote a lot of our trucks downtowns we dont have to go back to the puc plant to get water. We are looking at similar opportunities up in your district in golden gate park, they are using some of that recycle water and were hoping to be with to fill up at those locations, two. Think. Colleagues, supervisor weiner are you on the roster . So, i will echo the thank you for the work that you the amazing staff at dpw do every day. To keep our neighborhoods clean my green, and beautiful. I know it sort of endless work and i want to thank you in particular for stepping up. Weve had some significant hygiene and kim and related problems by the Harvey Milk Branch library and department has done a really good job of prioritizing that daily cleaning and so thank you for that. Can you just, in terms of the trend line for the departments cleaning capacity, i know during the recession it collapsed. Basically that function was pretty much gutted and weve been, call crawling back ever since and every time weve done at ask animators put an additional funding to increase the capacity. Are you on a continuing upward trajectory because, to me, investing in the cleaning of neighborhoods is one of the most important but also when most Cost Effective things that we can do. It does not cost that much and it delivers very changeable visible results in terms of daytoday life in a neighborhood. So can you talk about the trajectory of your cleaning capacity . Over the last few years with the support of the board of supervisors of the mayor, we have been getting back to what i would call, back to the 2008 numbers, which is a number that at the time we believe we had a good workforce. But with that said, i think the challenges of the city also continue. The city has all you know is growing and its going with more people. Our data definitely shows us an increase in the number of calls an increase in dumping an entire age and increase in number of requests and a huge increase in emergency calls, which are mostly where someone has dedicated desiccated were urinated. So as we go, we are facing some tougher challenges because of the demand that we see. Since the planarian meeting that we just entered our budget, we are partnership with the Human Services agency has strengthened. They have increased the number of bodies that are coming to public works by going to other areas. I think, since that time we have been able to add about 30 more people to help with some of the easier neighborhood concerns so that fiscal people can do the more tricky were the ones more demanding. So, we are on the upward, with lasters budget we got the ugly program. Were not hearing a lot of complaints from the alleys and that seems to be going really good. Then, now the challenges of and kim is off the street, that diverted essence of this new funding will help us begin to address that allow people to go back to the neighborhood. So, in terms of your answer to your question, beyond the up down. Thank you okay colleagues any further questions for staff . Mr. Rose can you give your report, please yes mr. Chairman and members of the committee, on page 16 of ourexcuse the page 46 of our report, are recommending reduction to the proposed bual 1 million. Of that amount 408. 96 ongoing savings and 70,000. 424 one from savings in production would still allow an increase of about 20,000 were 10. 7 in the department 1670 budget. We also went close enough by your unexpended encumbrances of 2000 so the total general fund savings is 672. 297. The province request approval up one position as an intermec session that we do recommend approval of that position. It 1718 our recommended reductions total 604,000 of that amount 509. 284 are ongoing and 95 a onetime savings. As i understand it the department concurs with the recommended reductions which are shown on pages 4751 of our report. Think it can repeat that your one reduction . Yes. Well, its two components. 1,000,001 9000 120 for the first component and then we also recommend closing out prior year unencumbered, and unexpended encumbrances of 2000 111. So that the total excuse melet me go back. The first recommendation supervisor, the confusion there is let me refer you could i see your question. Good question. Let me refer you to page, page 50 of our report. If you take a look at page 50, of that 1,000,001 or 9000 that i said was a recommend a reduction, 670,000 is general fund and 424. 38 is nongeneral fund. So that when we gave you that total, we talked about general fund. We took that thats how you get the 672,000 when you add the 2000 111 to the general fund basic budget. Does that respond to your question . Can you repeat that one time just to make sure absolutely. Again, if you look on page 50 of our report, we made recommended total reductions of 1,000,001 or 9000 without the encumbrances. As an additional costly 2000 unencumbered balances. About 1 million among 670,000. 01 186 is general fund. So we took that 670,000 and added approximately 2000 of unencumbered expenses expenditures we are recommending you closeout for a total of 672,000. We have the size of the gender youre absolutely correct in pointing out that the total reduction is significantly larger than that thank you mr. Rosen appreciate the clarification. Okay, colleagues, any questions or comments . Can entertain a motion to except our budget analyst organizations where dpw for public works above and public pending Public Comment . Moved and seconded. We can take that can we take that without objection . Without objection the motion passes. San diego thank you very much. Then, on item number 17, any Public Comment on items 17 . Seeing none, i believe there is a technical amendment on item number 17. There is. We respectfully request a technical amendment on page 4. Line 12. So, whereas the agreement is approved were asking to add partially executed. Online 18, this board approves again, insert partially executed agreement. Okay. We can take Public Comment on items 17. Does anyone wish to comment. Seeing none, Public Comment is closed. [gavel] can i dont motion to accept those amendment is articulate by Public Works Department and move the underlying item, 17, as amended to the full board of supervisor me. Moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] okay. Were going to move now to some of our departments we understand are not quite an agreement yet. First, we have our Health Service system. I saw director dot here. Mr. Chairman, matt mentioned that as i understand it, the department of Human Resources which is on page 62 concurs with the recommended reduction did i dont know if you want toim sorry . Director dot, they want to be at the and. We did i tell you what one we have directo. Director dodds. All have used that should take some deep breaths while we pull this up. Thank you for your patience at him capt. Dot dir. Of the Health Service system a. K. A. Just that. On the company by Deputy Director and chief financial pebble 11. Good afternoon chairman farrell the members of the Budget Finance Committee. Hsf is responsible for negotiating administering benefits for 116,405 people and growing every day. We serve active employees, retirees, and dependence 04 employers. The city and county being the Unified School District, even city college, and the superior courts. The mayors proposed budget for 1617 is just under 11 million and for 1718 it is 11. 1 million. Hsf membership has increased by 8300 lives over the pack last five years. Thats equal to providing benefits for eight additional very large businesses. Since 2011, hsf premium cost seven consistently lower than the National Average despite having both 18 active and retiree membership, and the most Expensive Health care providers in california. Hss is is implemented many creative and executive staff intensive costsaving efforts over the last five years. Actuarial estimates that the combined savings to the four employers since 2012 are 111. 35 million. Hss step by 51 people with two positions left vacant for attrition. The staff have 10 years between one and 31 years with an average of eight years. Since january, due to the Affordable Care act the staff is go with an increase in nearly 5000 members or parttime employees my new employees and you retirees. 24 operations staff accurately manage 10,000 enrollment and status changes in 20 Different Health plans. They had over 40,000 Customer Relations interactions. 10 finance that correctly transact close to 800 million in premiums. They negotiate and administer 22 contracts as well start 11 million administrative budget. Our eight wellness staff, one funded through the trust, work with the departments and provide Training Drills and guidance to over 200 volunteer wellness champions throughout the city. They work with our three other employers and without over 36,000 tyrees. Three of the longest that Employee Assistance counselors who up handle immediate crises related to both personal and work life as well as conduct workshops on numerous topics of their quest of Different Departments. Our innovative extreme of six works with peoplesoft and make sure all constantly changing eligibility files are accurately transferred to vendors that several times per month. The database is beginning to reduce important important reports which will better guide better decisionmaking. The Administrative Team includes myself, a Research Assistant who conducts critical analyses, two clerks, manage the paper in those 250,000 paper files, and Administrative Office manager, a board secretary. Lastly a Communications Team of two who are funded through the trust were to ensure that her benefits and benefit changes are understood by their wellness messaging is on target and that Member Communications are delivered in an understandable manner. Challenges in the immediate future include continued compliance with the ongoing regulatory changes laid it to the Affordable Care act. This year for the first time he reported to the irs on the red coverage and when we estimated that a total preparing and conducting this reporting took nearly 20 80 hours of work or one fte spread across image and our department. Another challenge is previous imagine, continually increasing memberships of between four and 500 active and retirees per month. We will also be challenged to maintain the Wellness Program given the illumination and key Financial Support from her health plan vendors. Lastly, staying on top of roughly changing trends in the industry in order to negotiate the best benefits of affordable premiums remains a challenge. Some of our new initiatives include working with peoplesoft to implement online benefits and womans, digitizing those 250,000 paper records with their Enterprise Management system and appoint a Customer Relations Management System to improve service and increase staff accountability. In 2017, the may be enhancing the Retiree Benefits and reduce projected cost, which will require major operations staff work. We will be expanding benefits by an additional second medicalsecond opinion service, as wells funds for members engaging surrogacy reduction services. This open enrollment were also adding voluntary benefits such as Life Insurance critical on this insurance and Identity Theft protection for all city and county active employees at no cost to the city. Like many other departments, weve begun our website rebuild project using updated programming while getting information about benefits benefitsand wellness. Were updating our telephone and call Management System. Major changes in our 1617 budget are [inaudible] theres a total of two and 27,510 in expenditures over last year. An increase of 2. 1 . The largest increase is three and 77,000 due to mou negotiated analyze nation of physicians and fringe benefit increase. Over which we have no control. There is no increase in ftes and there is no overtime. The next largest increase is 96,380 attribute it to rent as a gtd and the famous replacement project at again, these are items over which we have no control. The small increases for contracts of training printing and nonpersonal services. 19,003 and 18 is budgeted for wellness due to the previous identified lots of vendor support. As well as the eap supplies and the new american with disabilities act required equipments. These increases are offset by onetime funding in the current year for enterprise content Management System. Major budget changes for 1718 included 2. 1 increase of 167,000 in mou negotiated colas and utilization of positions and Fringe Benefits. There are no fte increases and no overtime. Theres another increase in work orders primarily for rent an anomaly nominal increase in materials and supplies that these increase offset by a decrease of 66,000 in nonpersonal related to contracts and training. That concludes my presentation kit i am grateful to the board of supervisors for having worked on vista the Mayors Office and to the Budget Analyst Office. Im very proud of you congressmans of that apartment and my peers in both the public and private sectors are amazed at how much we accomplished with such a small staff and budget. Further, our members frequently express appreciation for our efforts. I will save my comments on the proposed reductions by the budget analyst selected the reductions are present. Thank you thank you director dog is a member of your self Service System i want to thank you for all your work and for your entire staff you do an amazing job and colleagues were lucky to have this Department Working for us. With that, ms. Rose, go to your report, please yes mr. Chairman and members of the committee, on page 2 of our report, a recommended reductions to the proposed budget total 147. 465 and 1617 get of that amount when our 12,000 are onetime savings in 35 our ongoing savings. These reductions would still allow an increase of 80,000 . 45 or 7 10 of a percent in apartment 1617 budget. For 17, 18, with recommendations of one and 17 8. 93 which ongoing savings. These reductions was still allowed in increase of 77,000 per 7 10 of a percent to that apartment 1718 budget. The supervisors as i understand it, that apartment agrees with our one of our three recommendations, which is on page three and that is the step adjustments. Thats 31,000 465. The department as i understand it, disagrees with a recommendation on page 3. The materials and supplies and the attrition saving. Let me explain what we have recommended to you. First of all, on materials and supplies, we are recommending a reduction of 4000 going from 21,800 to 70,008 on. Now, with respect to that account, the department has requested an increase in materials and supplies for the Wellness Program of 10,704 total 21,800. In 1415 to Department Spent 3002 and 63 against its 9100 budget. As i stated, we are making a recommendation to reduce by 4000 which would still allow for a budget of 17,800 as compared to the fiscal year 1415 Actual Expenditures of 3263. Supervisors, if you accepted our recommendation you would be providing for a 445 increase. 445 . Increase over the Actual Expenditures of 1415. The Department States that Kaiser Permanente is withdrawing some of its funds, but the bottom line is, that our recommendation provides for a significant increase. With respect to the attrition savings, we are, as you see on page 3 of our report, recommended they be increased by a net total including mandatory Fringe Benefits of 112,000 to our recommendations to increase the attrition savings and related fringe benefit savings goes up to a total of 338,000 and 55 for 1617 and 316. 425 41718. Now, in 1415 salary and benefit savings about budget and attrition savings totaled 880,000 692. And 1516 the controller projects salary and benefit savings about budgeted and attrition savings between 437,000 and 470. 473. Supervisors, this is a classic example of what the board of supervisors has previously discussed as to why department windup with significant salaries surpluses in which they can then use brother expenses subject to your appropriation approval or they can be returned to the general fund. Theres absolutely no sense of leaving that money on the table again. I relate two weeks ago when the board had this discussion. This is a classic example that discussion web leave the board stated what they wanted to look at this very issue in this budget. Director. Thanks. Very simply working with a budget analyst and was pointed out we come to some agreement. We get agreed to a 4000 cut in supplies so that they can take that one of the hunter controversial list. That was in a letter we provide to the Budget Finance Committee and the budget analyst. However the proposed for additional attrition savings in both years is unrealistic and remains a solid disagreement. I like to explain why. We have maintained to vacant positions for attrition last budget cycle. This is because our employees have a long tenure with little turnover. The budget analyst staff look at historic attrition over the last two years, which is higher than two ftes due to a productive hiring process on our new positions and to our unusual turnover and management staff, which are difficult to fill. We were fully staffed, fully staffed, for half of this year. Today we have five positions vacant. The two previously mentioned which will remain vacant for attrition, to which employees starting the first and second because july. The fifth position has been difficult to recruit and just yesterday, we finally found a fifth applicant, which is a Civil Service requirements. So we can begin interviews in the end of june. This position requires a highly specialized manager who also has knowledge of health insurance, Health Benefit administration, the Affordable Care act, new and existing irs regulations, federal state and local laws and peoplesoft. We hope that this new Member Services manager in place by august 1. At which time we will again be fully staffed the exception of the two positions being held open for attrition. To higher attrition sidings proposed by the budget analyst in both years will produce a layoff. Were supplemental budget request. We have never come before you to move money in a supplemental budget request. This cut will prevent utilization of the New Enterprise content Management System and will have ripple effects throughout the department. Astley, a layoff send a message that the efforts of the department to serve in ever increasing membership, which by the way is larger than dhr and retirement combined them as well as efforts of the executive team to save hundreds of millions of dollars are not recognize. I urge you to reinstate the attrition cuts in both years. Mr. Chairman, members of the committee, year after year after year, this department has has had experience salary savings. The controller right now is projecting about it 450,000 increase in salary savings. And this year. The department is talking about a specific position. You have to look at the department on an overall basis. What we are recommending is miniscule and will not result in any layoff. This is what the department say year after year. Its like you just went over six or seven Different Departments where they had billions of dollars worth of unexpended salaries that they could not extend. No fault to that apartment because it just attrition, theres turnover and thats what happens. Our recommendation is more than reasonable to my supervisors, and theres a reason why most of the departments in the city and county of San Francisco have accepted our recommendations. Its because they know we are right and thats why that accepted them. There are few departments that will fight this tooth and nail, and we would never make a recommendation to result in a layoff. Appreciate that, mr. Rose. Okay colleagues, red threewhere we have actually bully for department of today which are in disagreement good i think theres two ways we can persecute one, we can do for it till next monday continuing these permits until next wednesday and have them come back potentially continue to work with a budget analyst. There is also the ability for us to act on them today. I would suggest that if there is those who be appropriate potentially will have to do it but potentially when their defined cuts and defined disagreements here its one position, dont think this can be in agreement on that so i think there will be appropriate to activate today if we so wanted to. So colleagues all be open to any questions or comments. I would say at the outset, because i do have some personal experience at the Health Services board, and their hiring practices, will be supportive of dir. God here in this instance but open to discussion, but i do this department is a time to the work in the ton on saving our city dollars and i would differ to giving them one additional position as mr. Rose mentioned oh, we look at these in Different Departments to respect peoples opinion that obese early my position on hss. Supervisor tang thank you. I would say there are times when we agree with the budget analyst in terms the recommendations, especially comes to attrition which is largely what we take a lot of cuts. I would say in this particular case, i do feel that apartment director is actually justified that they are actually actively engaging in hiring, recruiting and so forth. Ashley fill in the positions. So, i would actually be okay with today if we want to take a vote on accepting all the changes except for the attrition recommendation. Okay. Supervisor weiner i agree ill make a motion to accept the budget analyst recommendation with the exception of the attrition recommendation and to reject that particular cut. In years both one and two . Okay so calculated that out it would mean savings or cuts in your one of 35. 645 and then youre two, 32. 583. So we have a motion by supervisor weiner. Moved and seconded. Colleagues any discussion or comments on that . Can we take that without objection . Without objection the motion passes. [gavel] on to the nextsorry you know what sorry. This galan if youre in agreement with call you up and get you on your way. Then, we will have department of elections. Dtm and city administrator after that. This galan, if you arefeel free to be as if youre in agreement i will speak rapidly. Vicki john, director of Human Resources. Thank you to the budget and legislative analyst. Mayors office, controller. We are in agreement that we think everyone for the work on the budget that we were able to reach an agreement that provides us the staffed by the number of people we think we need to meet our obligations. They quickly come i want us to review the submitted in changes in our budget over the next two years. This year you see increases primarily in our equal Employment Opportunity staffing and weve had a huge increase the number of complaints citywide. Dir. Tony we had Something Like 70 unassigned cases just this week. We thank you for support for the additional investigators will be helping us ensure we quickly respond to claims of retaliation discrimination or harassment by City Employees were against City Employees. In the second year you see a significant change in a labor project. Where we as usual, reciprocal increase. This year it is growing because we have on the order of 30 labor negotiations. Then in the second year, that drops off because we do not have those requirements. Similarly, we are about Public Safety exam process, calendar this year. In the second year, we have fewer exams and therefore fewer costs. I just want to touch on a couple of the Significant Initiatives we are pursuing. Our strategic goals to improve our position as an employer of choice to improve the Human Resources capacity of our entire workforce to retain top talent, and be a champion of equity equal opportunity and fairness for all employees. I want to draw attention to a Significant Initiative we are pursuing right now which is implicit bias training. You be hearing more about that in the both in a report to the board and tie to that is our id Identification Initiative were trying to move identifying information from the hiring process where possible so as to reduce the possibility of the exercise of implicit bias. So that is the briefest possible summary. Either questions . Student colleagues, any questions for the department of Human Resources . Include becoming our Favorite Department here. No. Mr. Rose can we move on to your report, please. Mr. Chairman and members of the committee, on page 63 report recommender reductions total six under 2000 in 16 having 17. Of that amount 322. 600 ongoing savings. 279. 601 are onetime savings. These reductions would still allow for increased to 6. 0 or 7. 8 in that apartment 16sending budget. We also meant closing out by your unexpended encumbrances of the 66,000. 825 together these recommendations equal six and 69,000 and 26 in general fund savings teenmaking a recommended reduction that was budget total is to enter 58. 653. Of that amount but all ongoing savings as i understand it that apartment concurs with a recommended reduction. Did thank you. I should say that on page 6469 of our report thank you. Colleagues from any questions . With that, thank you. Could i entertain a motion to except the budget Analyst Recommendations whether apartment of Human Resources . Any Public Comment moved and seconded. Can we take that without objection . Without objection the motion passes. [gavel] thank you very much. Thank you for your patience. We have our department of elections. Good afternoon. John Mars Department of elections. The mission of the department is to connect free and fair cultural elections in San Francisco. As you can see from the first slide, the various types of services we provide for categories of voters. We have almost 6000 military and overseas voters and stephen could we have two and 62,000 [inaudible] voters and also we have whats called onetime vote by mail order could we have over 3000 people voted by mail and received a vote by mail ballot in the selection which is a 64 of the registration is up 460,000 domain would be the folks who go to the polling places were eligible to go to the polling place. We three different sets types of services we provide voters in San Francisco. The senators and revenue it depends on the number and type of election in a fiscal year. The candidates and measures on the ballot, the voter turnout, the number of registered voters all components and factors in the special expenditures but also in revenue. The new election laws and regulations and requirements are also drivers and expenditures for that apartment. Our expenditures proportion to the overall budget consistent from fiscal year two fiscal year. Was a specific question from the committee on overtime costs. You can see the green shaded area that our ratio of overtime costs is very consistent by fiscal year even if we have a one or two election fiscal year. On the revenue and recovery set, the recovery is mostly one of district elections but, schoolboard community college, and then we get reimbursement for running those elections. The revenue is mostly based on these fees from canada filing fees. Policy goals and initiatives. Starting in 2017, the be a conditional registration in california, so the registration deadline will still be 50 days before an election, but folks are not registered can come to a satellite location such as the Voting Center at city hall and register to vote but also the california motor voters, and people of transactions at the dmv, if they choose to allow their information to be transmitted to the secretary of states office, those individual be included in the statewide database boatcalc and the potential register voters in california. Then also, couple of new initiatives for the department of big one will be the warehouse location relocation. From here 48 pier 48 will be here be a holdover tenant into early next day. Then moving to pier 31. Also the bowman of a new Voting System new opensource based Voting System that is a policy initiative for San Francisco. Parts will be involved in that. Its very brief presentation thank you very much. Colleagues from any questions or comments . Supervisor weiner thank you. Thank you for your work. Thank you for working with us on the open source voting project. I know that the mayor at the request of that apartment and the commission and initially, because due to support of this of board of supervisors did include 300,000 into their apartments budget to begin the planning process to move towards open source voting. I appreciate it is appreciation for that apartment and for the mayor putting that funding in. I did see that the budget analyst expressed a negative view of the policy of adopting open source voting and of course the budget analysis we welcome mr. Rosens opinion on everything and anything and i do often agree with them, but i just dont agree on this one and i think its important we keep that funding fully intact so that your department can have the resources it needs to be able to move forward and to do what this board of supervisors unanimously directed with Elections Commission directed as well so, thank you and i know ill be making a motion to reject that particular 300,000 cut by the budget analyst. Think. Thank you good without when we turn over to our budget Analyst Report yes is a chairman and members of the committee, on page 2 excuse me, page 5 overall report, a recommended reduction to the proposed budget total 647,000. 615 and 1617. At that amount to an 40,000. 615 ongoing savings. 407 are onetime savings. The assortment closing out unexpended encumbrances of 21. 315 for additional onetime general fund savings together these recommendations equal 668. 930 in general fund savings and 1617 and 1718 recommend reductions total to 69. 724 and of that amount, 249. 724 ongoing savings, 20,000 onetime savings it as i understand it the department concurs with all of our recommendations accept the recommendation that supervisor weiner just referenced pertaining to the open source Voting System thats 300,000. I would just read to you supervisors, on page 7 of our report, as to why we made this recommendation to reduce. The required 3000 would allow the department of elections to develop specifications for preferred new open source Voting System and open source Voting System of software operates the Voting System will be freely available such as on the internet for others to review and used to create their own Voting System. No other jurisdiction in the country has undertaken such a project could the department of elections cannot estimate what such an open source Voting System may alternately cost the city. That was one of our primary concerns when we asked with the cost would be, they cannot provide us with that information. Some estimates are 4. 6 million 6 million for the initial development. However, as noted such a system is never been developed before. In addition opensource system will require certification testing and ultimate approval by the secretary of state with additional funds required to deploy and open source Voting System which will require the purchase the necessary hardware were Department Elections costs are currently funded by the general fund. The city of los angeles has been over seven years and expanded 15 million to develop their own Voting System. Which is not an opensource system. As not include the ability to process a vote by mail ballots and not been certified by the secretary of state. In 2014, as you know, the board of supervisors approve the resolution that file 14 1105 to the department of elections work with other jurisdictions and organizations great new Voting Systems using open source software. The Elections Commission approved open source already in november 2015. Such that apartment is now canceled the plans to issue a request for proposal for new Voting System and machines in 2016 and will instead seek an extension of the contract the citys existing Voting System and then which expires this year. Currently, that upon expensive proximally 900,000 annually per the vendor for one election. Budget leslie van was also questions whether the department of elections has the capacity to develop their own first of its kind open source Voting System while running elections each year. So our recommendation is to disapprove the request of 3000 to initiate the first phase to develop a new open source Voting System in San Francisco and its uncertain at this time, as i indicated, as to how much such an open source Voting System would cost the city or how long it may take to implement. We we happy to respond to any question. Thank you mr. Rose. Supervisor weiner thank you. Mr. Rose, as i mentioned about a appreciative of your viewpoint on here and as you know i can agree with your viewpoint and a lot of different issue. On this one, the board of supervisors unanimously disagrees in terms of the wisdom of implementing an open source Voting System and i say that not because i typically speak for my colleagues because we voted unanimously to direct that apartment to move in that direction in Elections Commission did the same. So im very very respectful of your point of view on this i do know this is obviously a cuttingedge kind of situation is often the case with our work here in San Francisco. We lead in the rest of the country often follows. So i think we should continue in this direction. Mr. Chairman, i do make a motion to reject the 300,000 proposed cuts relating to open source voting and to accept the other agreedupon cuts. Motion by supervisor weiner. Moved and seconded. Supervisor second you want to speak . I want to add my was to support from this line item as well. Beyond open source for our Voting Machines which i heavily support, heavily than asking the department of technology to look at open source for all of our software licensing. I voted no against our oracle contract last year the Controllers Office but because there isnt a need for this type of software but because i feel like the city has not truly examine all of our options around opensource software. It could be that for certain systems like the Controllers Office last year, there may not be adequate opensource alternatives. I think that as we continue to look at shaving our citys budget we know that licensing sopwith or is a huge cement his costs. Off in handcuffs minibar department longterm with these aging systems that are very very difficult to update. In general, i think we need to be looking more in this direction am glad the department of elections we supporting this for this particular item overall the city needs to really assess our license Software Systems and when we should be examining alternatives that can notably save the city of terminus amount of money. Okay. I think supervisor kim ill can go with my colleagues comments. That we have a motion by supervisor weiner. Second by supervisor kim to accept the budget analysts by clinicians except for the 3000 in year one for open source voting. Colleagues, can we take that without objection . Without objection the motion passes. So moved. [gavel] thank you. We had our travel next but ms. Kelly, is the bus about him and im sure you can usurp that place. Ms. Kelly is up here, im clerk please call item number seven, please item number seven,