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tv   BOS Budget and Finance Committee 102815  SFGTV  November 2, 2015 12:00am-12:36am PST

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>> good morning, everybody. welcome to the budget & finance committee wednesday, october 28, 2015, my name is mark farrell i'll be chairing i'm joined by supervisor katie tang want to thank jennifer lowe and krakz coroner's office this human resources madam clerk, any announcements? >> questions all electronic devices. completed speaker cards and documents to be included should be submitted to the clerk. items acted upon today will appear on the november 3rd board of supervisors board of supervisors agenda unless otherwise stated item one a resolution 30 years
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the district 2 to amend it's contract with health 316 for the services to enable the services for thirty thousand clients in community residential car facilities and increasing the contract to approximately, $107 million ending june we have dpw here to speak. >> i ran up here sorry i'm not that calm i work in dpw i want to apologize we had to continue this with respect a little bit inconsistent in the resolution the other thing about this contract this is confusing for us how to represent it was under an agency a called asian-american recovery services that merged with health right 360 they assume the contract that is why the contract changed
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we restarted when the contract transferred originally we were 6 years and 10 and back to 5 and a half that is the reason for the big reduction the contract merger happened mid year december 31st we inadvertently double counted the amount we thought we needed we're okay with the reduction that is incorporated into the write up there is to be routine by the planning commission, and may be acted upon by a single roll call vote important service for the department to be able to provide less altercations services to the clients that keep them housed in emergency housing for example, a client wrap up around not feasible to have a contract for a variety of reasons we have contracted housing providers but we also need emergency housing so we take those or, get them and those entities provide that
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housing not through a contract but an mo u this is for example, how we use the vernld to reimburse informs o for those things thank you very much mr. rose, can we go to your report supervisor tang on page 3 of our report we report the actual estimated expenditures between dpw and health write 360 from december 31st, 2015, to $201,638,000,000 plus that is shown in table one on page 3 human resources the total invited contract is increased busy 54 plus millions to $92.3 million on page 4 of our report as the department indicated this resolution should be amended to correct arrows on
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page 4 our recommendations are recommend you amend the proposed resolution and change 7 to 9 from an increasing the total amount by $69 million from 360 a tun t tenure to 2019 and increasing the total amount by 44 from 37 plus nor a contract of 23946 from december 31st, 2015, to 2019 we also recommend the amend the proposed recommendation to change whereas in contract in the amount of 439 plus thus to whereas this contract is promoted in the monument of $94 million and
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recommend you prop to chance the linens 21 and 24 to $37 million plus for the term of july 1st, 2009, to 2013 to increase it to seven years for the contracting contract $44 million from $37 million plus for a total $92 million for a term of 5 years plus on december 2013 to 2014 and we recommend you approve that proposed resolution as amended. >> thank you very much mr. rose seeing no comment any public comment on item one seeing none, public comment is closed. >> all right. through the chair all the time everything that harvey said i move we send
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it to the full board with a positive recommendation to say full board. >> motion by a supervisor tang we'll take that without objection. >> madam clerk item 2. >> execute on amendment with the board of equalization for the locals prepaid december surface collection act following the board approval for the act. >> we have amanda brother freed. >> from the office of tax collector that talks about the utility tax that san francisco passed in 2008, under prop i as our aware the telecommunications is rapid changing and statewide prepaid cells make up a large amount of the market our u d t is collected by apt apt /* /-
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at&t so that retailers like target the stat passed ab 17 to capture the prepaid wireless cells we're in a mandate from the board of equalization to collect the charges i want to note san francisco did not support ab 11717 we have the tools to adequately capture this revenue, however, now the law in order to continue to receive the revenue we are required to sign the contract i'll be back with an additional resolution to all our audit from ab 17 we will do with guess controller's office that also requires our approval and want to ask for one technical amendment online 10 we
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wanted to strike the word certain from the resolution if this is possible to do in committee thank you. >> okay. thank you ms. freed a different opinion from the city attorney mr. rose, can we go to your report. >> yes. mr. chairman and supervisor katie tang the report on pages 9, 7 and 8 net administrative expenses 4 point plus an additional california utility tax revenues as a result of ab 17, however, given the uncertainty about the actual amount of additional mobile collections the controller's office estimated the implementation maybe 17 will likely result from a low of 2.5 to a high of 5 in addition tax revenue over the term of
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agreement therefore assuming the local tax is repealed by 2020 it is schedule to be it could be descended the ab 17 could result in addition general bond revenues to increase and we recommend you approve this resolution. >> thank you very much mr. rose. >> sorry supervisor tang. >> 0 do we think this may be extended past 2020. >> i think that is a little bit early to tell at this time. >> okay. thank you. >> opening it up for public comment is there anyone from the public that wishes to speak. >> at&t, t mobile a lot of money by money staples purchased as s-4 and 89 months service if
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this communities have to pay for this and collected through the internet place for wifi see penalties of money you know - >> okay is there anyone from the public that wishes to speak seeing none, public comment is closed a technical amendment requested a motion to send the item forward. >> so moved. >> a motion by commissioner tang we'll take that without objection. madam clerk call item 3. >> and resolution authorizing the general manager of the puc and the treasure island development authority board director to enter into a long connection agreement with the poster of oakland for the davis electric substation for treasure island and yerba buena island for a term of 20 years following
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the boards approval of $28 million and mr. beck. >> thank you chair farrell supervisor tang also present is sam of the sfpuc in you have questions relating to the electrical service in treasure island when the navy stopped the operations in 1997 the city assumed the responsibilities on the island including the provision of utility services the sfpuc has provided electrical and other utility services on the island on on behalf of tida the district attorney's office substation was previously oakland by the navy and served both treasure island as well as the former oakland army base and the navy industrial supply center in oakland was transferred to the port of
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oakland along with the fleet and industrial supply center in 1998 at a time the sfpuc entered into an agreement with the port of oakland to continue services to the island providing power to the infrastructure including submarine cable that connects the davis substation to treasure island it regrurgz it if have an historical record to because the annual charge but was based on projects o projections did agreement anticipated by the new agreement when did treasure island development authority board was transferred to the city in 2008, the oakland arm base
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was transferred and the city entered into an agreement to continue to provide power to that area and the port recognized the cost to operate the substation exceeded the portion of share paid by the city under the prior agreement and the port advised tida and the city about that since that time tida and sfpuc have worked with the port of oakland to negotiate a new agreement and finalize this agreement this year as the transfer of property from the navy to the city became imminent we request the board of supervisors approval of this and the facilities that serve treasure island are all configured to bring power from the district attorney's office substation making that effectively service without a significant additional capital investment to connect the island
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to an alternative facility i'll take my questions and sam is here. >> thank you, mr. beck supervisor tang. >> mr. rose may get to this in his report but an increase in terms of of the cost so i know that his report pointed out this port of oakland lost for 14 out of the years can be talking about that loss and when it is what puc will pay under the new agreement. >> the new agreement is based on itself historical estimated cost that the port of oakland this is a established over the roughly 167 years they've been operating the facility at the time, we entered into the original connection they had no historical connection it was operated by the navy so that
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made projections on the cost obviously other projections were you low and directing your attention it was recognized those rates will be adjusted when we entered into the final agreement. >> okay. >> thank you very much mr. rose, can we go to your report on item 3 please. yes mr. chairman and supervisor tang just as a followup supervisor tang the puc did provide us with documentation showing that that loss from the period from october 1998 is 6 hundred plus dollars on page 11 of our report as shown in table one based on the provisions contained in the agreement the sfpuc will pay the
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port of oakland approximately, $6,000 over the 20-year to provide electrical to treasure island and yerba buena island and pay for others extension the proposed not to exceed agreement of $8 million should be reduced by one million dollars for $7 million so the up to $7 million and on page 12 of our report at the top we speak to that loss and point out the cost of increasing where the sfpuc paid the port of oakland the most recent year for the electricity and now they'll pay one hundred $25,000 for the electric an increase of 2. and r hundred and 72 percent it increases by the
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consumer price index resulting in an estimated annual cost of 69 plus for the electricity agreement period i emphasis the electricity on page 11 of the report there are maintenance costs to this agreement so our recommendation is to amend on bottom of page 12 to amend the proposed to decrease the in the amount of not to exceed $8 million to $7 million and amend as proposed. >> thank you very much mr. rose i want to concur that everyone is in agreement with the amendment proposed. >> we are. >> is there anyone from the public that wishes to speak on item 3 seeing none, public comment is closed. >> through the chair i make a motion to amend the legislation
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as mr. rose's suggestion and send forward with a positive recommendation as amended and motion by supervisor tang we'll take that without objection. madam clerk go forward and call item 7 please. >> item 7 a an organization phenomenon the one million dollar of hetch hetchy for the small renewable projects and having the proceeds for the energy bond for the sfpuc hetch hetchy small renewable projection and having appropriation on controllers reserve. >> we have the puc here. >> i'm carol the that motion carries budget director did the item before you is the appropriation request replacing the funding source on two renewable projects to appropriate one million dollars the two solar the police academy and the school were approved as
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part of powers 2015-2016 cappa program the puc got the renewable bonds those bonds were approved by this committee and this board of supervisors under the program the puc will receive a refundable tax credit for the $1.4 million will fund two projects the issuance costs and expense of the revenue bond oversight committee the original bond source will revert to hetch hetchys fund balance that concludes my presentation. thank you for your time if you have any questions i object to take them. >> i'm excited to see the project at marine middle school into this mr. rose, can we go to your report. >> chair farrell and supervisor tang on the bottom of
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page 25 in october of this year, the puc had the clean and renewable bonds the city received the proceeds it not to replace the bond precedes on the controllers bond contained in the legislation before you on page 26 as has been indicated we propose to deappropriate $1.4 million in hetch hetchy that was previously approved for the installation of solar energy and instead use the $4. million of renewable bond precedes this is shown in tables one and 2 on page 26 of our report the original appropriation $1.4 million was proposed to finance only the solar energy at the police academy and the marine middle school, however, in tables 2 on page 26 of our
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report the proposed appropriation should be amended to also fund the cost of owners of the bonds and the riders revenue bond in the oversight committee reflected in table 2 our recommendations on page 27 we recommend the amend it under the appropriation to appropriate $2 million plus instead of $28 million so the project one million dollars instead of 2 plus for the middle school solar project to include 70 thousand plus for the revenue bond we recommend you amend the proposed bills to amend it on the controllers reserve and we recommend you approve that as amended. >> thank you very much mr. rose no other questions any public comment seeing none, public comment is closed.
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>> all right. through the chair make a motion to accept all mr. rose's amendments and amended. >> okay supervisor tang we'll take that without objection. madam clerk can we call 4, 56 and 6 together. >> item 4 the resolution for the further resolution to establish the infrastructure for the city and county of san francisco and port of san francisco and item 5 resolution for the intent to issue the bonds for the city and county of san francisco infrastructure financing district number 2 and item of a resolution retroactively 30 years the port of san francisco to accept and expend initiative $1.4 million in the department of homeland security for the for the grants program for 2013 to august 2016. >> why not take the one
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terrors or first and i'm very pleased to be here to represent the ordinance project team we're here let me discuss the two approvals for two resolution that enables the city to have a financing district on portland and pier 70 and the development project the infrastructure financing district will how us allow to say to capture the property tax to completely e complete 2 capital projects for the pier 70 and the ports capital plan the process of establishing the financing district from california government code and the legislator has established a specific mechanism for the port which we're following at the introduction of the resolution amending the intent to form to
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set up a sdreetd project area called g one and a resolution of the intent to issue bonds can i please go to the slide show thank you to the committee your leadership has helped us to deal with the deficit and capital but approved the capital supplemental that binges brings up us to a historical all the time and you saw the need we are really, really glaring glad for the capital support and some of it is under the water you've made this a priority we're grateful this chart demonstrates the diverse between what the port should spend and will spend in capital we're continuing to work with the capital improvement plan and the mayor's office to figure out how to chip
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away at the capital needs this slide reflect our management our strategic management strategy to address the capital the key point is that we are being careful how we use net revenue to deal with the capital program but it is really the external sources the go bond and others that are game chancellor we're grateful for those sources we have a legislative history to establish it i previously mentioned the california legislator has established unique mechanism for the port and at p.i. we are able to secure both the city's share of property tax and the states share this means that from the project the city's forgone tax it matched 7 to 3 from the states share.
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>> the project will generate $710,000 annually in tax accuracy without $49.2 million over the 45 years of district that equalities to $18 million in sources we can use for projects. >> we have prior legislation that enables this establishment a march 2012 intent to form june 2012 resolution to add a project area and importantly in july 2014 this board approved the 66 year lease and d b.a. at the time of that project approval and just as as reminder to the committee it is for the historic resolution of buildings on pier 70 along 20th street 21 square feet for the industrial use and at the time of the
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approval the board signals a portion the public improvements were going to be finances through sfpuc what are the next steps the intention to form and bond we will be completing the preparation of on infrastructure finance plan for the financial area we'll have a public hearing and we're working with the office on the scheduling and do you want the plan in the form of this and consider the issuance of bonds in the preparation of those documents i want to let you know we'll be reviewing the economic impact and the bond we'll be looking at other business sales tax so we're not you think witnessingly putting a burden on the taxpayers from the i f d
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forms and make sure that the general fund is in a good way for approval and looking at the policy you pass in 2012 which gives us guidance to form and showing you a detailed uses table as well as project details so thank you very much for your consideration and i'm here as well as the team to answer any questions. >> thank you, ms. foreclosures no questions mr. rose, can we go to your report on 4 to 5. >> chair farrell and supervisor tang on page 15 the proposed resolution the board of supervisors shall not be obligated to form this is stated in the resolution if you approve that you'll have the authority to not establish the i f d on page 17 of our report as shown in table one on page
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that's on page 17 the state law allows the waterfront i f d for the revenues to fund the ports public facilities so that 89 percent of credential practioners it collected and as mr. forbes stated they'll receive interest taxed on page 18 of our report we report that those specific infrastructure finance will be provided to the board of supervisors estimated on november 9, 2015, and, of course, that will be subject to our approval the board of supervisors approval prior to creating and issuing any bonds for the infrastructure it will a detail the arrangement for the city's general fund and the economic benefits for the project at pier 70 we recommend
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this is consistent with the board of supervisors previous policy we recommend you approve the proposed resolution. >> okay. thank you very much mr. rose. >> seeing no questions we'll open up for public comment four and five to public comment seeing none, public comment is closed supervisor tang. >> thank you to the port for a really good thorough presentation and so again, this is thorough very much in line with what the board approval i make a recommendation to send four and five with a positive recommendation. >> we'll take that without objection. madam clerk item 6 please. mr. chair item 6 was called. >> chair farrell ms. foreclosures a simple accept and expend on september 24th the port was award one $.44 million from the port of homeland
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security and the grant is from cement first 2014 to august 2016 the port has a 25 percent match of 4 hundred plus million dollars and this supports 3 projects that benefits the port in terms of enhancing the security for security for pier 31 and poa 50 security and phase 3 of the systems in terms of the timeline we're awarded the grant september 2014 and we expect to have project implementation as august 2016 and here with the security director they'll answer any questions about the project. >> thank you very much supervisor tang. >> super quick i know you mentioned the 25 percent i want to confirm on the record the port has those funds. >> those fund with in 412014
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and on capital budget. >> okay. thank you. >> thanks very much mr. rose, can we go to your report. >> yes. mr. chairman, and members of the committee on page 22 we show in table 2 a total budget for the proposed security program of one million plus and we also note as has been stated those funds were previously appropriated by the board of supervisors in fiscal year 2014-2015 and 2015-2016 that is the match of 4 hundred and plus we recommend you approve that resolution. >> thank you, mr. rose we'll open up for public comment is there anyone from the public that wishes to speak seeing none, public comment is closed. >> through the chair i'd like to move this to the full board. >> motion pie supervisor tang we'll take that without objection. madam clerk do we
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is there any additional business to come before this body? >> there's no further business. >> thank you, everybody we e
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(clapping.) >> good morning, everyone i'm joe robison from the district 2 and i'm the director of hazel health serves we're pleased you're here with us today to help us launch that much awaited program i'm very honored that 3 and 4 could be here with us he's been incredibly structural and helping san francisco become the fifth county if san francisco, california to implement this program mayor. >> well, good morning, everyone and welcome to one of our important sites in san francisco where a lot of important work is being done this is happens tobacco a large division of our department of public health particularly focused on our psychiatric and services and thank d