Documents to be included as part of the file submit them to myself the clerk. Approximately comment will be taken on each item when Public Comment is called lineup to the west side at this time right my left along those kurt anxiety. Not necessary on provide comment we invite to you fill out a card and leave them on the tray if you wish to be records. You misubmit comment in writingeck e mail them to myself at brent. Jalipa sfgovtv. Tell be forwarded to the supervisors include part of the fortunately file. You may send written comments Via Postal Service to city hall 1 dr. Carlton b. Goodlett place room 244, San Francisco, california, 94102. This concludes my aupon nouns ams. Thank you and lets call items 13 together. Items 13. Items 1, 2 and 3 consider the per ses may proposed budget for airport commission. Board of appeals. Dbi. Child service, department of environment. Library, municipal transportation agency, port, Public Library, San Francisco puc, residential rent stabilization and arbitration board and retirement system for 24 through 25 and 2526. Item 2, a proposed budget and appropriation ordinance appropriating all estimated receipts and estimated expend tours as of may first and item 3 the annual salary ordinance positions in the budget and appropriation ordinance. Thank you this is for the general public. This is a series first of two of the series of hearings specific low on the majors propose the budget considering the may first budget this is really drilling down to the budget for enterprise agencies not the general fund budget. With this, colleagues before we do start our the Department Presentations i would like to make opening remarks to help frame this year. For the public and committee and our departments. Yesterday the controller released 9 month budget status report and showed we were performing better than projected. But we still have i long way to go. It has also clear for a time that even after we recover from the pandemic we will not be going back to a time of unprecedented growth in our city and economy. We much manage our spending so we can offer serves residents need in our means. If this is the case what does San Franciscos budget say about our values as a city . As the board of supervisors, i know what our values are and our charge from our constate wens ceclor. We must make sure San Francisco has a strong safety net so most vulnerable families, children and our seniors not only survive but thrive in our city. We may Funds Program this is are prudent it work and deliver the city service this is residents not only need but deserve. We can do this if we Work Together to focus each departments budget and services on delivering their core mission. We must have the political will to cut wasteful spending. It is our job to scrutinize our spending to maximize the tax dollars our residents pay to deliver Excellent City Services with the mayors proposed mibudget we are not starting the process but continuing the w tht Budget Committee has been doing and will continue to do so with the 14 billion dollars plus budget we have the resources to make surety budget we end with in july reflects values to be proud of and residence emdentses serve. Lets get to work. With this before we proceed to Department Presentations i like to invite the majors budget director. Thank you i have a short presentation. Good morning Appropriations Committee i have a presentation on the commuter from you want to share that. This kickoff the budget process. Well be in here together the next two months. Every other year we do a may first budget this is mostly enterprise and Nongeneral Fund departments but starts the budget conversation we will adopt. The may first budget budgets of 6 billion dollars. In the upcoming 2 fiscal years this supports the operation of 12 departments and 10,000 city employees. And you will hear from the department who is come up today there are investments and equity, sustain ability and Public Safety and economic resiliency. You will hear from the enterprises the airport, mt a, port and puc. Some of the departments have two year fixed budgets than i will not be back to the committee for two years. And a handful of most low Nongeneral Fund departments you will hear from today. So highlights, things you will see as they bring forward budget investments to improve reliability and Rider Satisfaction with the mt a, puc the afford at policy. Library expanding programs for nonenglish learn and incarcerated vsed. We are funding the mayors Climate Action plan in department of the environment the port a Waterfront Program and improving safety of street conditions. There is trailing legislation that will be heard next week. A number of ref now bonds that supports the pucs budget and continuing prop j contracts. Once previously approved. A few changes at dbi and the board of appeals to support operations. And a few [inaudible] those will come next week. And with that we will understand that over to the airport to start. Good morning. Airport director good to be with you. Denise the director of budget is here and my chief financial and commercial off kevin and allen from the Budget Office and external affairs. The investment in positions represent a time as the airport recovers from corid in a position of financial strength. Over the past year the board approved our new 10 year lease and use agreements. 40 airlines and a 49th on the way. In july of 23 we kicked off the 5 year plan with the new mission and vision in the early phases of our next program with 11 billion dollars of investment. We are well positioned for a future accommodating forecast passenger growth propelling revenue and continuing the momentum of the airport the power house in the region. We remain focussed on core values enhancing the culture of sfo for results for people and passengers and planet. Look back on significantantentses over the years the strength of our recovery. You see after 911. But nothing as dramatic as the covid pandemic on the impact to operations. We did take strong measure early on to preserve cash through managering expenses most all but restructuring of debt. We took advantage federal stimulus and now in a Strong Financial position appropriateed accommodate investment and growth. We are 90 recovered on a fiscal year to date basis of passengers. That amount is split between 103 International Recovery to prepandemic numbers and 85 domestic. It is interesting what 96 of the traffic recovered china is still only 50 recovered and so we are excite body the additional china traffic once the governmental agreements are further loosened. And even though we are 90 recovered we have 83 of those precovid operations serving the 90 of the passengers. That is a great trends i hope continues and show its is an efficient use of our facility and resource. Passenger levels are expect today return. In 24 25 and this budget supports that recovery and the investment well make in health of organization and in the future facility developments we have planned and under way. Pleased see our Service Payment is strong and supporting cities general fundful this will be the learningest piment to the citys general fund of 45 million, 55 Million Dollars and we are also anticipating that will grow to over 60 million in the next few years. It is interesting point this we have grown our Service Payment 6. 7 the past 15 yearseen though passenger. Mentes grown 4. 1 speaks to the offerings at sfo on Concessions Program and investment in dynamic Parking Program the grant sfo and the other amenities. For the budget context. Through covid it hen lean. Because of the pandemic. Now we think of ourselves right sidesizing the organization and pursuing investments with the needs of our forecasted passenger growth. We are prioritizing the health of our organization by addressing work load and operational gaps. Passenger growth and implementing our Airport Operations Center i will speak more of supporting our 11 billion dollars Capitol Program of along with our 5 Year Strategic Plan and enhancing the airports reserve. Operating reserve funds. And to speak on the new initiative the operations center. This is a model that is more prevalent in europe. There are a couple of airports in the u. S. We are taking on this and have developed a facility in an organization to give us real time Situational Awareness through a cohosting of the various staff that communicate and help us manage our operations daily caused roadways to run ways and the integration of technology this gives us metrics and allows us to predictive insight in helping be proactive in front of with we may experience as congestion returns and impacts may be become more prevalent. Around our Strategic Plan in 23, we launched the new plan. And built off the successes and the position of strength this we find ourselves in recovery from covid. Supported by 6 goals. 26 objectives 90 initiatives. That will be implemented the next 5 years and the core of everything we do is our deep commitment to our guests, employees and tenants and the communities we serve. In our operating budget alined with passenger levels. This chart is our debt Service Versus omn versus actuals you see the gray hatched reflect the savings we have seen through the cost custody kuth measures now time it catch up with our expenditures to support the needs that i expressed. We are now really we look at ourselves in a strong position to meet before passenger levels and the growing demands and it is time now to gnaw investment in place for the purposes. On the slide operating budget comparison in detail and proposed budget 1. 6 billion dollars is increase of 16 over the Previous Year and for the 26 fiscal year 1. 74 budget or 10 increase overnight 25 fiscal year. Debt service is a significant part of our budgetful driven by the investment we have been make the past 2 decade in our facility. Personnel with 99ft e supporting the health of the organization. That aioc and other priors. And Contractual Service half needs are driven by increasing passenger loads and the other half is scope increases, inflation and activation of new facilities. We have our organization chart, probably the biggest change in the organization is the place am of the aioc under the chief operating officer. And then our 5 year historic look at staffing we have limited growth and get to spend hiring and now it is time to support staff through sxhiers appreciate the support we got over the mid year cycle, we were afford 120 new positions and took advantage of this and we actually used 118 of those positions through permanent and temporary that bridge the the gap from july to october. The 99 new positions add 20 Million Dollars to the budgetful they are around enforcing the Health Organization and 41 position in our aioc initiative. And then to talk about passenger growth and c ip we invest. We are phase one was terminated and suspended the beginning of covid to preserve cash 2 billion dollars in 1. 5 am you know the facility this is we brought online including harvey milk terminal 1. Our extension of trin to the new longterm parking garage and Water Treatment plant. And 1. 5 is the new program and finishes you have the projects susupon spendsed. Along with other projects like terminal 3 west and other infrastructure projects. And our capitol operating budget you know a couple adjustments well make. I will point out the facility charge rental contracts 10 dollars to invest in the future rental facility. And we are also funding our new reserve fund that gives us resilience to respond to covid type issues and invest in facilities. And we have a couple reappropriations we need to do to support terminal work. And then two slide on the contribution that you are aware of to the economy during covid rew criminalitied opinion billion dollars to the region and poised with new supporting tourism with 10 new routes and leading with return of flights to and from china. And lastly a big jobs center experimenting 48,000 private sector jobs and local business 80 of our concessions are local businesses. They are 100 open and spendserate is 115 of precovid levels and our construction is an important and positive impact to Small Business and we have afford 1 billion dollars of work to local businesses since 2015 and our forecasting 865 million the next program. Apologies for going long. Fwlad to answer questions and want to congratulations for just all your accomplishments. Director and really grateful to your leadership and your service. Congratulations on the upcoming retirement. I think we are going to miss you. You will have built a great team. We are appreciative of the team. When i took office and met with the team the Public Finance team walk us through the Strategy Early on. How the airport will tackle the pandemic. The graph shows us unpredented time. I appreciate the 55 Million Dollars of the 15 of your revenue coming in our general funds contribution. I just want to express my thanks to your work and leadership and your team. Thank you. I dont see name on the roster so we will go to our next department. Next department is board of appeals. Before you start and yes we will have thank you to mr. Clerk this we will have a 5 minutes timer for you but of Course Police finish your presentation it is when you are hear for we want to get through all 12 departments today in a timely fashion so there will be a timer for you. Okay. Thank you. Good morning chair chan and the board im julie rosen about the burg the executive director for the board of appeals thank you for giving me an opportunity to shave. I would like to thank angels fret Controllers Office. And joshua from the mayors Budget Office for their tremendous help throughout budget process. I could not do it without them. Thank you. Moving along. I know you have i longidate mission is to provide the public with final administrative review process for the issuance denial, suspension revocation and modification of permits, licenses and other determinations. Our goal to provide a fair public hearing and decisionmaking process before an impartial panel. Our projected appeal value for 2 is then below the 10 year average of 149 appeal and is thbl can be attributed to reduced permit,ance and changes that restrict or limit appeals. Moving along. In terms of the appeal distribution by department, 84 of appeals are Land Use Decision permits issued by db oishgs with planning approval. And our Revenue Sources are come from surcharges and filing fees 98 surchargeos renewed permits and rates prosecute portional to cases from each department they are arn lived by the Controllers Office and adjusted if needed the controller may make cpi based adjustments or rate changes require legislation. The filing fees make up two of the budget they are collected when appeals are filed. Moving on to the budget sum row. Proposing an increase in fiscal years. The department does prosecute pose two surcharge rates to be increased by 5 dollars through legislation for dbi and planning permits and two surcharge rates through cpi, dph increase by 3 dollars and public works a dollar. No changes in filing fees are proposed. Moving on to you see we are proposing a reduction of revenue from filing fees to short falls and export surcharges will cover any short falls. Then moving on to b. Expend tours like most departments the bulk go to labor costs. Salary and the next 2 interdepartmental work rent for our office. D. Technology, sfgovtv are expensive as you know. And the city attorneys office. So moving on to c our organizational chart. 5 commissioners. We have one department head. One legal assistant who i like to recognize does a fantastic job and one Legal Process clerk. We did e eliminate a position and have one vacancy for Legal Process clerk. We are running a tight ship we have 3 full time employees, myself and alec and [inaudible] and they are doing an excellent job. So lets move on to the surcharge rates. Again i mentioned before if you can see the column on the right, those are the proposes increases for planning and dbi. Dph and public works. And a reduction for sfpd. The filing fees are listed here they have in the changed and have no need or desire to change them. In terms of our Performance Measures issue one measure is the percentage of case decide upon within 75 days of filing. Our target is 80 and the second measure written decisions issued within 15 days our target is 90 . We have an initial employees whom performance appraisals were schedule and they were complete and theed boa will meet or exceed the targets and this concludes my presently agdz im happy to answer questions. We have communicated about stay stay the taxi drivers appeal. Could you reminds me how did this resolve . Yes. The sfmta as you know, the sfmta and board of appeals have an informal agreement for the board of appeals t