Much. So good morning and welcome to the budget and finance committee, everyone. Todays agenda is focused on bringing back departments that we heard presentations from last week to hear recommendations for reductions from the budget and legislative analyst. Also on todays agenda are particular training items particular with each departments budget. There will be Public Comment on those items at the time they are heard, and there will be Public Comment on budget reductions after each item is heard. Before i get into the items, my office is releasing a proposed spending plan that totals over 30 million over two years which will be on the boards website. As you all know, its being released before each committee knows the budget. We know that the demand for budget allocations the board received far exceeds far exceeds the available funding. Our office has received budget requests totaling more than 500 million and as i noted, this initial spending plan totals 30 million. While we have a staggering 12. 6 billion, the board of supervisors each year has limited ability to reallocate funding that comes to us as the mayors proposed budget. That said, i have worked to create a draft that prioritizes many of the different communities and policy areas that i think my colleagues and the public cares about. Whi about while its certainly not able to meet all of the need. I look forward to working with all of you to improve it in the coming week. Madam clerk, can we call item 3, and i would like to call item 3 because it included three departments that are on a fixedyear budget schedule. They would not come back to us this year but for that. Clerk yes. [agenda item read]. Chair fewer thank you very much. And were hearing from the mayors budget director. Can ythank you, supervisors. Im kelly kirkpatrick, the mayors budget director. Before you is the supplemental appropriation for the public utilities, the port, and the airport. The major changes are driven by salary and benefit changes . Due to the nature of these things, fixed budget, and we had active labor negotiations this spring, we are amending the budget to adjust for the salary work increases and citywide work orders as well as including workers comp, changes that have happened to workers compensation, changes in technology, etc. And so before you is a 14. 6 supplemental, 12. 2 million of which is for the p. U. C. The changes are largely due to Salary Benefits and increases to noncreationary work order. There is a work order increase for pg e, and to continue that work. The airport represents 2. 1 million of the supplemental. These changes are due to work order payments to other departments, including treasurers and tax collectors office, and 300,000 also driven by work orders. If you have any questions on the supplemental, please let me know, and well have the appropriate Department Come speak. Chair fewer thank you. Do we have any questions or comments from my colleagues . Seeing non, well hear from the budget and legislative analysts office. Good morning. Dan gonchar from the budget and legislative analysts office. The proposed ordinance excuse me this the details of the reappropriation of the p. U. C. Money are detailed in table one on pages 2 and 3 in our report. 22,467 of the p. U. C. Appropriation is not subject to board of supervisors approval because that amount would be transferred out of the cleanpowersf operating budget for fiscal year 1920, and cleanpowersf is sel selfaappropriating. 282,917 of the proposed airport reappropriation which corresponds to an appropriate work order is subject to approval by a twothirds vote of the board of supervisors pursuant to charter section 911. 3 c. It also deappropriates 344,000 and the county wide Cost Allocation as shown in the report. Our recommendations are to amend the proposed ordinance that states that 282,917 of the airport reappropriation requires a two thirds vote of the board of supervisors for approval and to approve the proposed ordinance as amended. Chair fewer Public Comment on this item. Would anyone like to comment on item number 3 . Hello, mr. Wright. Good morning. When you talk about employment, and you talk about salary increases, youve got a tendency of overlooking your employment. Youve got a great deal of employment discrimination. Youve got a great deal of violations of title 7 of the United States of americas code service, the 2000e series pertaining to the unequal pay act. Youve got exempt employees working for the city thats been working here for 25 years. No medical coverage, no pension plan, no kind of annuity plan, but yet youre giving cost of living raises to one type of employees and yet another type of employees dont have any benefits doing the same type of work in the same type of departments within the city. So i think that should be addressed because youre in violation of that law, and no one has checked that. Ronen has demonstrated she has experience as far as attorney is concerned. If she looks into that, im sure shell agree with me. Chair fewer thank you very much, mr. Wright. Any other Public Comment . Public comment is closed. I make a motion to move this to the full board with a positive recommendation. Can i have a second, please . Thank you very much, mr. Mandelman. We can take that without objection. Madam clerk, can you please call items 1 and 2 together. Clerk yes. [agenda item read] [agenda item read]. Chair fewer okay. Thank you very much. And now were going to hear from the different departments, and let me take my sweater off for this. So first, we have so first we have up is our assessor, and i think we have douglas legg. So before we start, could we have a b. L. A. Report, please. Dan gonchar, budget and legislative analysts office. The budget is 1,217,692 or 2. 8 less than the original year fiscal 201819 budget of 43,885,008. For year two, its 4,584,101 or 10. 8 more than the mayors proposed budget of 48,662,116. Our recommendations for the proposed budget total 453,254 for fiscal year 1920. Our recommendations recommended reductions for the proposed budget for fiscal year 202021 total 361,699. In fiscal year 202021, of that action, 361,944 are ongoing. My understanding is that we have full agreement with the department. Chair fewer thank you very much. Mr. Lake. Douglas lake from the assessor. We are in agreement with the budget analyst. Chair fewer thank you very much. So can the Controllers Office take note. So im looking for sort of in agreement with that. Okay. Thats great. So please, mr. Controller, take note of the committees intention to accept the b. L. A. s recommendation for this department. Thank you very much, and best wishes to the assessor. Thank you very much. Chair fewer thank you very much. Madam clerk, can you please call items 4, 5, 6, 7, and 8, please, as there is trailing legislation with the controllers report. Clerk yes. [agenda item read] [agenda item read] [agenda item read] [agenda item read]. Chair fewer thank you very much. Could we have a b. L. A. Report, please. Dan gonchar with budget and legislative analyst. Item 7 is an ordinance authorizing the participation of one or more series to refinance the certificates of participation or cops, issued in 2009. Item 8 is an ordinance appropriating 160 million in the cops proceeds, and 176,000 in proceeds to refinance the 2009a and 2009b cops issuances. It was approved to construct the new laguna honda hospital as well as the acquisition and installation of certain street improvements. The report recommended refinancing the cops. According to the office of Public Finance on june 3, 2009 memorandum to the board of supervisors, the city expected to issue approximately 148 million in refunding cops and reappropriating reserve funds to reappropriate 131 million of outstanding 2009a cops, and 39 million of outstanding 2009b cops. According to the office of Public Finance, the estimated net present value of savings from refunding the 2009a and b cops are equal to 9. 4 of the outstanding par amount of the 2009a and b cops to be refunded. The estimated savings exceeds the net savings proposed by the city policy. We recommend the approved legislation. Chair fewer thank you. Lets hear any comments from my colleagues . Seeing none, lets hear from the controller. Thank you, chair fewer. I can briefly speak to the five pieces of legislation that the b. L. A. Reported on. You have in front of you a one pager that quickly summarizes those. Item number 4 is an administrative adjustment that the voter adopted neighborhood beautification fund. The amount of money that flows into that fund is capped, and so each year, we make calculation of the percentage of a companys taxes that they can contribute into this to achieve that cap, and our calculation for the year ahead is a 4. 2 rate for tax year 2019. Item number 9 is an adjustment to what we call the access line tax, so this is a voter adopted tax several years ago. It was a flat dollar tax imposed, and we are allowed to increase that flat tax by c. P. I. Each year, provided that the board approved that by resolution. We do that each year. Its a c. P. I. Increase on the year ahead, which generates that additional 2 on inanythingary revenue. Item 6, you were he aware that the city can contract out certain services, provided the controller determines they can do that more effectively through contracted workers. This is that certification that comes to the board for approval. These are for longstanding services, these are for services the city has contracted out for many years, and we estimate total annual savings of approximately 24 million. And lastly, items 7 and 8 are authorization for us to c. O. P. S that we issued about a decade ago now. Given the mechanics of how its structured, approximately 2. 75 million in savings is available in the first year, and that is proposed in the budget to be used to offset general fund support that would otherwise be required for street resurfacing. So happy to talk about these items, but thats a quick summary of them. Chair fewer thank you very much. President yee . President yee for item number 6, in terms of contracting out services, things like citywide custodial services, contracted services i dont know how long this has been going on, but when we do contract it out, whats are these i guess the contractor, are they hiring out people at what rate . Are they union jobs or what are they . So some of these questions would be better directed to departments that might be coming up with different pieces of this, but i can say generally speaking, if memory serves, the city has not entered into a new prop j contracting out proposal in the last more than ten years, so these are services that have been contracted out for many years. Generally speaking, the jobs were talking about here are covered by prevailing wage laws and the prevailing wages that the board of supervisors determine. Thats determined by some of the services you see here. I believe in the majority of cases contractors that are currently performing these services are union shops, but wouldnt know that with certainty for all the shops but could report back to you. President yee you know, maybe, this is not the day to do it, but i would love to have some survey or something to come back to us and let us know how much these people are actually getting paid. I dont think its going to determine my vote for today, but i think certainly in the future, we should have that information. We would be happy to prepare that for you and submit it to the board. Chair fewer so i would like to also comment. I also have questions for item number 6. The charter allows us to do this contracting out because it states that when there is an emergency situation, so our fund has grown. Its 12. 6 billion. Some of these departments have grown. We brought this up last year. This is not what the charter intended. The charter said explicitly in an emergency situation. This is currently not an emergency situation, so quite frankly, i am not open to or ready to approve this today, but i will listen to my other colleagues. Supervisor ronen . Supervisor ronen i just i just wanted to to echo bo both chair fewer and president yees remarks. There is reasons why this happened, but some of them are relatively recent. The security guards for h. S. H. Nav centers, thats sort of not a historical contracted out role, but i think the point that president yee made, reporting on what these contracts salary worker contracted salary workers departments are are extremely important. Chair few chair fewer also, its the mayors decision what constitutes an emergency, but i dont see an emergency situation here, and this is why, mr. Controller, i would like to continue this particular item. So we heard from the b. L. A. And we heard from the controller about these items. So i will take now Public Comment on items number 4, 5, 6, 7, and 8. Thank you, mr. Wright. You have two minutes. Youre very welcome. Sf viewer please. Most powerful point and most stress on this is this section right here, refunding certificates of participation. I move this board to incorporate the fact that twitter at twitter and a minimum of nine other companies have made quadruple of billions of tax free money. I move to have the board of supervisors along with the mayor to call back that money in order to finance all these proposals that are before you but also to contribute to the community of the population thats economically disadvantaged and homeless out in the street. Theyve been undermining you, and i spoke to ed lee, when he was living. I pointed out to him that youre going to create a negative cash flow by giving them this tax break. Heres another example how you can take advantage of. Heres twitter with their multitrillions and millions of dollars taking their money not only outside the city of San Francisco but outside california. They went to chicago and built a multiquadruple trillion billion skyscraper tower to hows their employees. This administration putting their trust into their resulted in this. This is what youre moneys been financing coming from the city of San Francisco when it should be financing and helping the people who are here and in most need and economically disadvantaged. You work and you setup your headquarters in the district where this money should have been spent, and theyre taking this money and building these outside of state of california. Chair fewer thank you very much, mr. Wright. Any other Public Comment . Seeing none, Public Comment is closed. Can you please take note that the committees intention to accept the b. L. A. Recommendations for your department . Thank you very much. Mr. B. L. A. Would you like me to describe those recommendations. Chair fewer oh, i didnt call you . Yes, im so sorry. Okay. So the budget and legislative Analysts Recommendations to the Controllers Office. Of the 110,000 recommendations reductions, 30,000 are ongoing savings, and 80,000 are onetime savings. In addition, we recommend reducing Carry Forward funding from fiscal year 1920 by 90,133 and closing out prior year encumbrances of 97,320. In addition, we recommend our recommended reductions for the proposed budget in fiscal year 2021 include 80,000 in recommended savings. This would still allow an increase of 3. 1 in the departments fiscal year 2021 budget, and as we stated, we have agreement. Chair fewer we have agreement. That is great. Okay. Thank you very much. Now id like to make a motion on the trailing legislation. Id like to make a motion to continue item number 6 to next week, which would be june 16, and then, the other items, 4, 5, 7, and 8, id like to make a motion to move that move that continue that no, recommend it recommend it to the full Board Meeting of july 16. Is there a second . Can we take that without objection . President yee excuse me. Chair fewer yes. President yee can you repeat that . Chair fewer were going to continue that until the following meeting. President yee 4, 5, 7, and 8 . Chair fewer yes. Okay. We can do that without objection. Thank you, mr. Controller. Now, i think we have general responsibility. We are in agreement with the budget analysts report. Chair fewer okay. Great. Can we hear from the b. L. A. Dan gonchar from the b. L. A. [inaudible] we do not have any proposed reductions for fiscal year 2021, and as you heard, we have agreement. Chair fewer thank you very much. Colleagues, are we somewhat in agreement . Mr. Controller, can you take note of the b. L. A. s recommendation recommendation of agreement with this budget. The departments proposed 91,776,129 for 1920 is 6,070,070. The departments proposed 95,532,559 budget for fiscal year 2021 is 4. 1 more than the mayors proposed fiscal year budget. Our recommendations to the budget for fiscal year total 340,908. All of the 340,908 recommended are onetime savings. This would still allow 6. 7 increase in the departments fiscal year budget, and our understanding is we do have an agreement with the city attorneys office. Chair fewer it looks as though we have consensus with my colleagues, also, so mr. Controller, would you take notice of the intention to set the b. L. A. s reduction. Okay. So next, we have the Mayors Office, and we have kelly kirkpatrick, i think. Mayors office of housing and urban development. We are in agreement with the budget and legislative analysts office. Chair fewer thank you very much. Lets hear from the b. L. A. The departments proposed 152,136,808 for fiscal year 202021 is 178,145,233 or 53. 9 less than the pay i dont remembers proposed fiscal mayors proposed fiscal year budget. Our recommended we recommended closing out prior unexpended encumbrances for a total general fund savings of 265,000. In addition, we have reserve recommendations that total 41,560,000 in fiscal year 1920, all of which are onetime, and we do not have any recommendations for fiscal year 202021 as mr. Mccloskey has stated, we do have agreements and that im available for questions if you have any. Chair fewer thank you very much. Colleagues, are we in agreement with this agreement . Okay. Mr. Controller, can you take note of this committees recommendations to set note. Next up, we have elections. Good morning. John ernst. The department is in agreement with the b. L. A. Recommendations. Chair fewer thank you very much. Lets hear from the b. L. A. Now. Dan gonchar. The departments proposed budget for fiscal year 1920 is 7,470,373 or 38. 7 more than the original fiscal year 1819 budget of 19,280,746. The departments proposed budget for fiscal year 2020 is 21 21. 7 less than the mayors proposed fiscal year 1920 budget of 21,756,119. Our recommendations for the budget all of the