tv BOS Budget Finance Budget Appropriations Committee SFGTV May 11, 2022 1:45pm-5:30pm PDT
that allow in person and remote access and public comment by telephone. the board recognizes that it is essential. we will take public comment. on each item. those attending in person will be allowed to speak first then those waiting on the cell phone line for those watching channels 26, 78 or 99 and sfgovtv. the call-in number is on the screen. that is 415-655-0001. enter id24978419535. pound and pound. when connected you will hear the discussions and will be muted in listening mode only. when your item comes up and public comment is called dial star 3 to be added to the
speaker line. if you are on the phone turn down your tv and listening devices. alternatively you may submit public comment in writing. e-mail to myself the clerk at br rem-- [indiscernable] it will be forwarded and included as part of the file. send by u.s. postal service to our office in city hall. room 244. thank you, madam chair. that concludes my announcements. >> i want to announce that we are planning to continue item 2 today because the department head was not able to make it. we really wanted her to be here and she wanted to be here. if you are waiting for that item we will not hear it today.
we will continue it. mr. clerk, please call item 1. >> hearing to receive presentations on the various direct small business relief programs currently supporting small businesses and eligibility requirements and data how many grants have been allocated, neighborhoods and demographic data on businesses required relief and equity plan for addressing small business recovery in the fiscal year 21-22 budget. members of the public should call 415-655-0001. id24978419535. pound twice. if you haven't done so dial star 3 to line up to speak. system prompt will indicate you raised your hand. wait until you are unmuted to begin your comments. madam chair. >> thank you. supervisor peskin is joining us. would you like to begin your
item? >> supervisor peskin: thank you, chair ronen for scheduling this item which we nerd this committee about a year ago. a little more than a year ago. is the director online? she is not in the board chambers. >> supervisor i am in quarantine. i am on the line. >> supervisor peskin: sorry, kate. i hope you will be okay. thank you for joining us, director sofas. i want to put this in context not only in the covid time but pre-dating covid time. interesting enough early in my tenure right when then mayor brown was leaving office back in
the days when this was officially the mayor's office of economic development. work force wasn't the title back then. it was a very small shop. much less actually i think in the single digits of employees. now it has over 150 staff. at the end of mayor brown's tenure if my recollection serves me. that office in may or brown's last budget was zeroed out. has recreated since then. recreated as its own department no longer under the mayor's office itself. we all understand that departments are under the executive branch. under mayor breed but no longer as subdivision of the mayor's office.
this is a rare department that doesn't have the oversight body. we are the oversight body. i want to say it in that context and remind my colleagues and members of the public that more than a year ago at the beginning of february 2021 a broad-based number of community organizations, some 20 community organizations from across the city, submitted a letter to mayor breed with recommendations relative to what was happening at that moment in time as there was a transition in directors of oewd from then many years leadership by our now assessor recorder, then the head of the office of economic and work force development walking toward us. at the core of those
recommendations were a set of desires that i think we all agree with as a matter of policy. that was prioritization of equity and diversity in work force.s, staffing in the department and around how grants are allocated. how loans are accessed and that became all the more true during the pandemic that exacerbated as we all know the worst inequities in our society. when i introduced this hearing request i was hoping to give director sofas an opportunity to speak and get her vision. i am pleased that although in
quarantine you are able to join us and speak to those priorities and how they are going so as the budget is coming we can insure that we support those missions as well as oewd on behalf of the folks who really need it most in san francisco, immigrants, women workers and small businesses that have disproportionately been struggling not only during covid but before covid. i am looking forward to hearing how you reorganized the department. i know new programs are developed and old programs changed and staffing changes that happened. a quick look at your power print presentation with a new organizational chart. i will turn it over to the director. i hope you all ask questions as
you see fit. >> thank you. if you could pull up the slide, that would be great. thank you. again, i appreciate the opportunity to be here today. i regret that you can't be there in person put i want to emphasize how personally invested i am in small business, equity, in the economic recovery. i am the executive director of the office of workforce development. thank you for calling this hearing and members of the committee and other supervisors. president walton for joining us today. i am joined online by two of my key leadership team. the director of invest in neighborhoods division and by our relatively new executive
director of our office of small business katie tang. they are here to answer questions. i would quickly like to recognize the contributions of our cfo pan coo in preparing the presentation with me today. next slide please. our vision is about equity. it really leads in everything we do. i am pleased to say this is not a new vision. it is a reexpressed vision of something always here at oewd. one reason i was drawn to the opportunity to lead this department coming from the community i did. i acknowledge the current pandemic disproportionately harmed communities of color and small businesses in terms of health and economic out comes. that means that all of oewd
programs and services need to explicitly drive more resources into the community to ensure economic recovery leads to san francisco where everyone can share in our prosperity. you will see it in the investments in the small business community over the course of the pandemic now and going forward. our organization and the leadership of our department. one year on monday. i focused on realigning the divisions and stronger linkages across them. we have so much within oewd. one of the first observations i made we weren't unlocking the power of closer collaboration across parts of our organization. today we are going to spotlight two of those.
again invest in neighborhoods and office of small business division. i want to explain that small business permeates everything we do at oewd. the business development team is about our sector strategy manufacturing, restaurants, enter taint. the vast majority of those businesses and strategies to support them are also small. the first division which you mentioned, supervisor, to work tirelessly to dig deeper to elevate some of the most vulnerable and challenged communities and individuals to seek employment. part of that is connecting those employment opportunities at our small businesses to our work force development work. we have heard from so many small businesses coming out of the pandemic, difficulties in hiring and finding people. work force and small business are another key to what we need
to look at going forward. we will field more questions about organizations later on. i want to talk about the budget at the high level and then go into our small business work. this piechart reflects our budget, current budget in the current fiscal year which at the time of approval was $152.6 million. our office of small business and invest in neighborhoods divisions had close to $48 million. roughly a third of the entire department budget is exclusively and only devoted to small business. we have other divisions that touch our small business community. on the next slide we look at budget.
this was really exceptional information for me when i stepped into this role to see how quickly the resources at oewd wasn't trusted with by you to get out to our community and how fast that doubled in just the last two years. it is quite reflective the urgency and need and community we are trying to respond to since the beginning of the pandemic. it is also reflective of the fact our staffing level certainly have had a challenge to keep up with new programs, more money out the door, more businesses and individuals in dire need due to the pandemic. for us the challenge of how to do more with the modest level staffing has been added to buy the staff with me and the rest of the country are struggling
with the great resignation. folks rethinking career paths. that led us to currently working to fill 21% of our normal positions are vacant or in transition. we are working very hard right now to advertise and fill those positions. that certainly added to what is incredible work on part of our team to support all of the activity in the programs and the services that we have been entrusted to. i also want to say that one of the keys to how we have been able to do more with less staff is our community partners which we will talk more about how our non-profit community partners fit into everything we do. 102 community partners which includes small business consultants and development center and myriad of
community-based organizations to deliver technical assistance in the community that we have been able to greatly expand the reach over what we would have been able to do with our staff working with those partners. that is how we supported this level of activity. >> director, in terms of that large increase over two years to a total of $153 million. within the slices of the pie within the department, work force, invest. >> we will look at the piechart. >> supervisor peskin: where was that growth? >> it was primarily in our investing neighborhoods and work force and economic recovery.
we could dive more into it but the economic recovery if you recall at the time the budget was approved last year about when i started. the vast majority of that $15.7 million was for downtown and mid market. that continues to be the case right now. we have had a real focus, as i am sure everyone is aware, of the tenderloin and trying to attract employees back to the economic core and shoppers and tourists. that is most of the economic recovery dollars. pretty much the rest of it has gone squarely into an even split between covid response work force, covid hub and the programs we are going to talk about today in investing neighborhoods. >> supervisor peskin: the economic recovery slice of
$16 million, if my recollection serves me, the vast majority was am bass tor programs and geographies that you discussed? >> that is it. you will see this the programs have expanded since then as a result of trying to provide more safety and cleanliness and health on the streets. that is a verybic part of the -- very big part of the economic recovery piece. why our small businesses are essential? this is probably something you know but i think the data is compelling. we have close to 90,000 small businesses representing 95% of
all registered businesses in the city. sustain more than half of the jobs in the city. for me what is most remarkable. i find the small businesses really punch above the economic weight class. they hire more of the entry level people to new jobs. they are more willing to take chances on people who are transitioning from other industries or young people who don't somewhere experience. they disproportionately tend to drive their own procurement to local businesses. they collectively are small businesses that create so much culture and creative trust. that is the reason bigger businesses and employees want to be here and tourists want to come here to give back on so many level. they are so important to put front and center as we have them with your support during
economic recovery. >> supervisor peskin: small businesses for the purpose of this slide are defined as what? >> defining as 100 or less employees. >> supervisor peskin: my recollection is historically unless i am just making this up, small businesses 100 or less accounted to close to 80% of the total work force as opposed to 54%. am i making that up? >> why don't i get back to that? i will check and see where we pulled that number from versus the number you are referring to. i might have the answer by the end of this presentation.
>> supervisor peskin: thank you. >> all right. covid impacts and i think we are aware the small businesses are vulnerable communities in the community that suffered with widespread closures and we frankly have to continue as we have done with your support. we an equal and and opsive source of resources to help them recover. on the next slide. what we have done so far over the course of the pandemic. we have dramatically increased direct grants to businesses. we are about to take a deeper dive into that. second we continued to increase budget in our commercial district interventions. we can talk a bit more about
that. i want everyone to understand when we talk about the interventions shop and dine in the 49 focused event or working in our neighborhoods with our cbds. the business reason for that is really about driving foot traffic into those neighborhood commercial corridor to support the businesses. it is market development for small businesses on those corridors. that is why it is such an important part of what we do. we will talk more about our strategy. in addition to grants and loans and programs that we have been able to add new funding sources, one of the newer things that i was focused on when i started what we could do in partnership with you to help businesses coming out of the pandemic not
lose their spaces. the focus on commercial is quite critical. we provided direct education. so many small businesses didn't know their rights and protections. we doubled the investment in pro bono legal support to make sure those accidents renegotiating -- those businesses renegotiating were armed with more support. i credit supervisor safai as the driving force behind this. we launched the commercial rent pilot program which we are making final awards right now. we know that is in such demand for $2 million. we had $10 million worth of response to that. i want to acknowledge supervisor safai and also say that one of
the biggest challenges is we just have more demand for everything that we have been able to collectively offer than supply. that means for us we are going to continue to need to really think about how we prioritize our work and put forward our most vulnerable small businesses. they ari the communities in which they reside. >> supervisor peskin: as this relates to the educational component as well as the commercial evictionlem and direct grant component. can you drill down into language access and what steps the department has taken relative to providing multi link gal communities in language access?
>> we took a three prong approach to that, supervisor. first we pulled together webinars and conducted those directly and also with community partners in culturally responsive languages. we partnered withmeta to train the trainer so we could ensure that education got out to the spanish speaking community. we had partners to assist in getting information out in mandarin, cantonese. that is why we had to really leverage our community partners to add what we were able to do. we do it as webinars. as city department it goes with legal support. we contracted with several providers. the bar association is one and
lse. they offer language be competent mediator the to assist. it is a constant. we very much to always be looking at language competency. when you think about equity it is a proxy how we evaluate what we are doing as working as language competency as we delivered information to the community. for the deaf and hard of hearing it is important to go further to make education and information available to the deaf and hard of hearing and blind community and others. it is a constant case of our
work up front and center. same with the draft programs -- grant programs. we have direct messages with language competency and also work through 102 community partners to arm them with information so we have more reach into is notes english as first language speaking communities. >> supervisor peskin: relative to outsourcing. how do you monitor that? what metrics or data do you get? how is that available in the public? >> i would like to ask the director to field that question if that program fits under you.
>> thank you, speakers for the question. the bar association gives us numbers in terms of how many we serve, as well as they maintain some of the confidentiality. they share individual cases as examples how negotiations are going and progress they have made. we have not made those reports public. we are working to make sure all of our programs how can we make those be more publicly accessible to deming street the impact. the data provided to show the reach has been around awards of grants. we are working towards being more transparent and able to
demonstrate how we have the 24/7 line. at anytime they have mediators in multiple languages that have been able to successfully negotiate on behalf of small businesses. >> do we have how many resolved favorably, demographics, the fact do we have lie level numbers to give us a sense of how that investment and well it has done and how equitably it has reached the public? [please stand by]
small business investment strategy. the first is recognizing that we need to do better at helping particularly our entrepreneurs, our would be entrepreneurs from our communities, women, individuals with disabilities, we need to do a lot better to start seeing more small businesses start successfully from those communities, and so our training to entrepreneurs, next slide, please. have been represented largely focussed on ourp communities and a couple of examples, the training program that we are running right now with children's council for more home-based childcare programs, particularly led by women of color, and our black millionaire development program run by sf black wall street as another example of training that is working towards the goal of over
time seeing more small businesses successfully start here in san francisco and do it in a reasonable amount. we are just getting started with some of these programs, these two in particular, dream keeper funded programs and to your point supervisor earlier, one of key things impersonally interested in and we have begun the work now, but i look forward to having more output over time so really tighten up how we look at impact and come up with a more standard set of metrics that we use across all of our funded organizations so that we can report back in a more consistent way what the activities, the impact of the program outcomes and what impact that is having on community over time, and i do agree, actually, a deeper dive into the interventions we have collectively applied around commercial eviction abatement
would be a really interesting area to do a deep dive into especially as we are starting to reach the first milestone, if you want to call it that, where some of our forebearance protections this board put in place will start to expire for some of the larger companies that have those protections. the second piece of our model is technical assistance, and that's a very big broad word, but that really is about all of the interventions that we provide, both directly with staff in particular, our office of small business and our small business development center, the fbdc which sits under now, one of the changes we have made, consolidated that and osb together so under one leadership, under one roof all of our direct serving way finding, permit health, small business support services we offer directly. and in addition to what we do with osb, again a key part of
how we get to so many more businesses we could ever reach with our own staff is through our cbo partners, and we have 102 examples, but sell black we provide a cohort-based approach to advising a small set of existing businesses trying to add in e-commerce programs, legal counseling is another example through our partners provide one-on-one assistance but it covers the gamut from marketing to helping a business think about where it should be, to helping a business think about its own organization and how to hire and look at their financing to support their growth. so, all of that, that whole work is technical assistance and powerful to think about it, it's what we do whether someone is starting a business and trying to help them get beyond so their
first mini grant they might have used to just get started, to what we need to do to help a legacy business stay here for the next 20 years. so, it is a key to everything we do, whether business is early stage or whether the business has been here for a long time, and it is a complement to direct access to capital we are able to provide to companies. >> i'm so sorry to interrupt you. i see you are only halfway through your presentation, and it's going very, very long. so i'm wondering if you could just pick up the pace a little bit, i know there are lots of questions and we have another hearing, thank you. >> great. small businesses, which we will talk through in just a moment. but that is a growth area that we have seen in the last year and then our commercial district interventions. next slide. so equity, for us it is squarely racial equity, the communities,
also women, lgbtqia and equity through a whole range of responses in how we design our programs and how we get out to the community and how we engage community to ensure we have impact when we work with our small businesses. next slide, please. so a quick deep dive into grants and loans. over the course of the pandemic in the last year i think the data speaks to its own. we were able to get over 3,000 awards of grants and leverage loans and i want to remind everyone when we say leverage loan, that was a state loan program where we were able to invest just around $2 million of city funds in order to buy down the interest rate on a state loan program to 0%, and through
that program we were able to get over $20 million of 0% interest loans up to $100,000 out to small businesses, that was a wonderful complement to the smaller grant program over the last year, from 2500 to 25,000, overwhelmingly we privileged these programs to reach our bipoc communities. you can see the numbers here, and we can talk more about it as you wish. next slide. in terms of neighborhood distributions, again, i think this speaks to the fact that we really are looking at our communities that have historically been disenfranchised and not had the same level of investment. the diagram literally shows where the grants and loan, the businesses are located that the awards were made to and on the left you see a break down of
where the loan programs flowed to. next slide. so in conclusion, excelsior coffee is an example of small businesses that have touched the elements, departmentally and work with the office of small business to get permits to open the space, worked with us to receive grants, have benefitted from being in one of our many neighborhood commercial corridors that receives focus and increasing focus as this really is one of our priority communities to help ensure that if you think of the business as the plant, that that businesses is fertile soil where they will have foot traffic and customers to patronize the business.
and going forward, some of our priorities overall in our small business, economic recovery include continuing to work harder at having good government and transparent government and we certainly can talk more about what we can do, but that is a clear focus of mine. increasing into small businesses, there really is nothing more important at this moment in time in doing everything in our power, whether that business is online or downtown serving employees who have yet to fully return to work or in our neighborhoods we do everything in our power to increase new business coming in. access to capital is an area that i want to build on what we have accomplished together in the last year. i know that the grant, get out quickly have been important but i also want to work to move more of our small businesses up the
capital chain so that they can access larger amounts of capital over time to help with their recovery and growth. commercial space we have talked about and workforce pipeline we have talked about and in conclusion, next, last slide. we just want to appreciate the fact that we are here, that i am here, and we are working in partnership with this body and this board. we know we have more work to be done around optimizing and speeding up our grants administration. i am committed to approving our program and more standardized impact evaluation to share with you and others. we know that we need to continue to work smart and recognize the staff to make community needs and above all, we will have to do this dance, a balancing city-wide needs for small business with driving more resources in our equity investments and with that i will
conclude, madam chair, and turn this back to q & a. thank you. >> chair ronen: thank you so much for picking up the pace, appreciate it. supervisor chan. >> supervisor chan: thank you, madam chair. director, i think my apologies, i think i know that you probably you and your team have worked really hard on this presentation but i'm going to actually challenge the premise, challenge the premise of your, the data that you presented. could you actually dive deeper for me, what is by definition in your definition that the data that you presented, what is your definition of small business? >> the data -- so which are you looking at overall? we have been using -- >> supervisor chan: yeah, when we first asked, or supervisor peskin asked you about definition of small business. you referencing is 100 people --
100 workers and fewer, is that correct? >> correct. >> supervisor chan: and it sounds to me, though, that's a very similar reference that basically it's based on the state definition, california definition of small business, which is 100 people, 100 workers and fewer with the gross receipts of 15 million. but as far as i'm concerned in san francisco and the city and county of san francisco the way that we define small business, and correct me if i'm wrong, is 25 workers and fewer and in fact, the most recent gross receipts task reform that we say by definition of small business is really 2 million gross receipts or less. so, i'm kind of curious if we were to truly break down by the definition that we hold in san francisco for small business, which is 25 workers and fewer, and $2 million gross receipts and fewer, how much assistance in terms of grants and loans are
we really providing to these business in the overall data that you provided? >> i would like to first ask executive director katy tang to briefly comment how we define small business, if you would. >> sure. thank you for the question, supervisor chan. the reason why we use the definition 100 or fewer employees to define small businesses is because that is actually what voters voted on when they created and put into the admin code to establish the office of small business and the small business commission. to be consistent with that and again what created our entire office, we used that definition. however, just want to know that in many of our grant programs that and best neighborhoods administers and the city administers that we do ask a question about gross revenues and we do reference 2.5 million as a threshold. so i wanted to clarify that. the information shared is what
we got from business registration data that is publicly available through data sf, and that is culled from the treasurer and tax collector office. >> supervisor chan: what you are saying, apology if i continue the questions, in terms of 95%, you know, small businesses or just, you know, the reference point, frame of reference for the entire presentation, we are talking about small business that is 2.5 gross receipts and less? >> i can let diana chime in for best neighborhoods we have that as a question in the application for i think almost all the grant programs, yeah. >> yes, the minimum criteria threshold has been 2.5 million or the majority of the data you see here represented in terms of awards would represent, yeah, the smaller, micro, and in fact,
early on during our covid relief, you know, when individual entrepreneurs that own their own business that don't have any employees did not have access to funding. we made sure we prioritized city funding to reach those that did not have employees and own their own business, and so yes, the data you see here really focusses on that smaller, less than 2.5 million in gross revenue, including low income also, households, and those are some of our criteria we use to prioritize these public funds. >> that's great. and my second question, also my last question, is that you know, mayor breed has, and we have all read the press release about how the city has provided $60 million of like 0 interest loans to our businesses across and city-wide. but in your data, though, in your presentation here, that
what you are saying is you are providing about, or you have provided about $21.6 million loan and 12 million grant out of which sounds to me like according to the press release or according also to mayor breed's statements that is probably out of the 60 million that the city has offered. so, that's just about one-third, if i know how to do my math correctly in terms of loans that is really provided to our small business. so is that correct? >> yes, the loans are multi-year and some of those loans are actually revolving loans, so as they get paid off then they revolve back in. right now our leverage that we have been able to, based on the investment that we have been able to put in and public dollars, leveraging, at one point leveraging four times about three times in loan capital. in addition, i will say the
benefit to that, san francisco businesses were provided 0% interest, and california rebuilding loan fund a little above 4%, so that's the benefit that we are able to leverage with our public dollars for san francisco businesses from the bigger pot. >> and the second piece is it's larger loan sizes. i think there's been a real challenge with so many of our small businesses, i'll use the word small now, to mean what i think the spirit of which this is, small, 2.5 million and less in our, the way that we actually deploy services. but having those larger sizes of capital being able to complement say a $5,000 grant for shared space a small restaurant might be building and then over time also layer in a 0% loan that can be repaid over a long repayment term is a really important blend
of capital to be able to give a small business, not just to get by but to be able to hopefully get to the next stage of their development. so i think it's been a very good investment by the city to use that to buy down to 0%. >> clarification, the data provided fiscal year 2021-22, and it's what we are managing in this fiscal year. >> thank you. i think this is more of a comment than question, is that we learn from the lessons of the ppp loans that there are losers and winners and the winners actually have the resources, not so much of the small business and in our case the microsmall business that we have with the microbusiness that we have. so i look forward to seeing actually a more detailed breakdown terms of that $60 million loan that the city
has provided to see how we really equitably supporting our small businesses. 2.5 million gross receipts and less. >> we would be happy to follow up with that data. thank you, supervisor. >> chair ronen: thank you. supervisor safai? >> supervisor safai: i hit it back for you to go. no, go ahead. i'll go ahead. >> chair ronen: i notice there is -- for the public, there's a little war going on on who goes first. >> thank you, chair ronen. just a few questions. the first one, just operationally, if we -- can we go to slide 3, or if you remember slide 3 where you showed the org chart. my question is, do you have seven direct reports? or am i just reading the chart wrong?
>> no, you are reading the chart correct and actually you are missing what we did not show in detail on this chart was that i also have a cfo and coo who report to me. >> so it would be nine? >> currently. >> and then this is -- and i don't know if you have the answer now, but how would you be providing sport to our bipoc small businesses in entrepreneurship programs if there was no dream keeper funding? >> appreciate that question. we have been, and i particularly given the timing of when i stepped into this role, have benefitted from having dream keeper resources. what i would say is number one, dream keeper has really only
strengthened approaches to how we serve our communities with a focus on equity to begin with. our programs have always, particularly invest in neighborhoods and our osb focussed on quite small businesses. i think what i would say dream keeper has done for us outside of resources though has really helped tighten down our approach we use with community to inform how we execute programs, how we design programs in a way that really has impact over time on those entrepreneurs. and we are using that experience to kind of do the opposite, which is to reinform how we are measuring impact with our other existing programs, so for an example, so if we use the example into actions program providing training on e-commerce
or sell block program, a dream keeper program, that program has not only received just wonderful reviews from the individual, a lot of women, entrepreneurs and would be entrepreneurs through the program but we are learning a lot about how we need to complement much further our, say, existing training programs for entrepreneurship with tools such as stipends to allow people, particularly from low income communities cannot afford to not work or have income in their families or childcare for that matter to layer that in, so we have more equity in who is able to take our training program in the first place so that is something that we are learning from dream keeper and applying back to existing training programs, so it really has been not just about money from dream keeper, i think it
has also been about a really different and fresh approach to how we do iterative programming, and goes back to the metrics that we are in the process of piloting with dream keeper. but my intention is to spike the metrics approach to all the neighborhoods and osb programs so when someone has taken a training program, the business gets opened, not just someone trained, and speaks to work that this board started with this department just as i was coming on board to increase resources at the promise center under osb. one of the things that we are now working on executive director tang is very passionate about this as well, is merging our systems between how we track and i'll use the word intentionally, a customer, a
small business customer to comes to us to get help to get the first permit to open the ice cream shop and how we track the journey of that individual or that business through our training and technical assistance or grant programs on the other side of the house with invest in neighborhoods. we have two different systems right now, makes it very difficult to make sure that we are really holding ourselves accountable to get the end result. >> thank you, i think you did answer the point i was trying to make on the question around dream keeper resources. your second to last slide mentioned right size staff to meet community needs. i'm trying to better understand that knowing your staff has grown tremendously comparatively to most city departments and even the last year, so i'm trying to understand what that means. >> would you put up the slide
that shows staff proportionate to dollars, department-wide? thanks. let me start by saying i appreciate the investments. >> and just real quick, director, you can show me all the dollars in the world. how does that compare to the level of case load for lack of a better term that staff is overseeing? >> it's a tremendously heavier case load than it was two years ago and we could provide some different ways of looking at that, but the way i would describe it in a couple of areas, the first is we have many more programs. we have new programs, new grant programs, new kinds of programs that we are actually piloting
through dream keeper. new programs allow things that didn't exist before like short spaces and for each one of those, whether that program is a $50,000 investment or $500,000 investment it takes staff to work with community to design it and to get it out the door. and so when i say for the right size, it's not about a huge new allocation of staff but what i do recognize and my team recognizes is that by not having enough staff right now to be able to carry all of the wonderful programs that come to us from this body, from others and to be able to effectively get that out into community we set up community for disappointment and frustration and i think that's been reflective in the length of time that it has taken us to get some
of our new programs set up and with partners and out the door. it has frustrated members of community, we know that. i know you know that. so when i say right size, i think there are three things, president walton. our own responsibility to work hard to fill our vacancies. i think the second is we would like to bring up a number, a couple of what we think would be very smart investments around very pressing issues of the time. one of them, for example, would be someone to work with more of that commercial corridors on vacancy mitigation. as an example, but we want to continue to work smart and very measured with what we would ask of you. >> so right now the department does not have any vacancies? >> the department has 20% of our positions vacant right now.
>> we'll have a further discussion on that, and then what's the definition of microbusiness? >> well, it depends who you ask. i think they are talking about. >> just real quick. real quick, director, because that is already a concern because if we talk about equity and resource distribution, it's important to have universal definitions of what we are talking about. otherwise we have microbusinesses competing with bigger and smaller businesses and what happens is we basically have people competing for the same resources which is inequitable, some folks are making millions of dollars, others a couple hundred and others are making less than that. we have to have a universal definition. it can't we depending on who we ask.
>> that's great. >> so, just so i can have kind of an understanding, from the office of economic and workforce development, what is the definition of a microbusiness? >> the threshold we have been using is 2.5. >> micro? >> for the threshold, so the definition we have been using. >> that's for small business, right? but obviously we have businesses -- >> lower threshold than 100 employees. >> do we have programs currently that are down at a very small number of employees? what's the lowest threshold you have right now? >> the measure is five or less employees, so that's what we look at as micro, and that captures -- i would say like a huge number, because restaurants
start to get up, you know, 20 or above, but our microentrepreneurs and our grant programs are divided also, have been categorized as so, and so we have prioritized categories and grants for five employees or less, and also separately for individual entrepreneurs which we found work as barbers in barber shops, right, and those were not, so we have created a diverse set of opportunities for different categories based on the type of business. but very much so, yes. microbusiness, the way we are prioritizing the funds, five or less employees and we have developed criteria in different, you know, available funds based on those categories. so to your point, president walton, businesses are not competing for necessarily the same amount or the same resources and we are really
targeting the available resources in that way. the last fund also had different levels of available resources based on those categories, you know. the higher amounts obviously were less grant awards. smaller amounts were less grant awards, so yes, that's what we took, we have applied across our current grant program. >> and just more of a statement i would love to see how the portfolio breaks down in terms of support as going to businesses by definition, 100 or less employees, versus businesses five or less. >> absolutely. >> even with the revenue. thank you. >> yep. thank you, president. >> thank you. >> supervisor safai and then peskin. >> she took me off already. >> ok. all right, i'm just going to go. thank you, madam chair. so, statements in preparation
for when this department comes to this committee for budget, i don't necessarily need a long explanation, director, we have had a lot of conversation around a number of these issues but highlight a few things. the invest in neighborhoods program has six opportunities of neighborhoods, are good to know specifically how much money has been invested all programs. out of that 43 million, which had no idea it was that large, in each district and there are six. they are neighborhoods but in the supervisorial district. i would like to know that. i would also like to know how you are measuring success for this particular program. i don't necessarily, and i've been in office now for five years, i don't necessarily see a vision for my district. i see some programs, i see some fits and starts and responses to
some of the things that we have asked for, but i don't necessarily see a vision for investing in my neighborhood, not trying to be funny, but i don't see a vision on that, and i don't see how you intend to help with the economic revitalization. we have a persistent, as you know, persistent store front, empty store front vacant store front along my commercial corridor in excelsior. something that pre-dates covid-19, exacerbated during covid, so i want you to really be thinking about that as you come to the budget committee. and then you really want to ask the question for my district, do you think invest in neighborhoods has been successful in district 11. i appreciate excelsior coffee, there is more, but just from
some of the slides when i look at the san francisco shine, or the grants and loans or the investment in some of the other districts i see a disproportionate amount of money going into other districts and not into district 11. and i want to highlight and you brought up about the commercial rent relief. on your 52.8 million city relief grants and loans, says another $7.3 million coming up for loan fund coming up. for all the businesses that i have talked to, they are tapped out. they have no interest in taking on any additional loans. so hopefully that really means grant or 0 interest loans, no intent to have them repaid and then also to see that loan fund as large as it is after we fought and scrapped and begged for our commercial rent relief fund, was $2 million, thank you
mayor's office and working with us and your office, but we had 601 applications which would equal to about $15 million in demand for that program. we are only able to give $2 million. and then you all made the decision, which respectfully you know you made on your own to spread it out, capped the amount of need in each specific neighborhood. but to then see a $7.3 million loan fund on this chart, you know, says to me that something is not lining up right. maybe you are referring to it as a 0 interest loan program. i would just say that, you know, when we have persistent vacant store fronts, when we have businesses that are literally on the edge of going out of business, when we have consistently been trying to work with your office and department to get revitalization and has not happened, i just want to
highlight these things because these are the things as i've said to you that we're going to be paying close attention to when this department comes forward for your budget. and we will be working with the mayor's office to go deeply into your budget, because we're very, very concerned about the in investment in district 11. a lot wanted for in the district so we look forward to continuing to work with you and hopefully some of the things you have talked about in terms of hiring new staff, attraction and investment will be realized. but i just have to say, we have talked about it for a few years and i have not seen it realized on the ground. so i'm looking forward to having a deeper and further conversation as we get into the budget and paying very close attention to this specific department as it is something that is very, very important to
the constituency that i represent. thank you, madam chair. >> supervisor peskin. >> thank you, chair ronen. i probably have questions that would last the rest of the afternoon and would make you tell me i'm overstaying my welcome. i'll try to synthesize, but i do want to drill down to a few more questions. and maybe i can -- maybe we can bring it back for a brief hearing. but i would like the department to break down the ethnic gender demographics of who is receiving grants. it's handed to us in this powerpoint presentation at a very high level, 75%. what's that mean, if we can drill down into that, i would like to see the data around outcomes relative to technical assistance, which the director said, or ms. ponce deleon said
is forthcoming, and important, not just around dream keeper but to a larger set of public policies. as the city came to the conclusion that we had a lot of work to do and investment to make in the african american community, i was -- compounded by covid, i was actually quite surprised that black-owned businesses in the district i represent, ground 0 for tourism and dining and entertainment destination, travel, and expenditures, could not access those funds that were, i mean, it's a lovely thing, we are being concentrated in the bay view and being concentrated in the fillmore western edition, so
black owned businesses struggling in the northeast corner of the city could not access those funds. so that, as we talk about equity, i'm talking about the combination of geographic and racial equity, and so i think we have to start thinking about that, and i guess one question that may seem obvious but director, does the department actually have an equity plan? >> we do. and actually one of our key focus areas to hire this year is to have a full-time director of racial equity for the department. and -- >> go ahead. >> yeah, and it's a living document, right. so, a lot of our team had been working on that when i stepped into this role and we have been
continuing to evolve that plan and to layer it into our internal process as well as our programs out in community. >> and director, in the same vein as what i was talking about earlier relative to a black-owned business in the northeast corner that could not access what is actually substantial amounts of, you know, over $100 million, i've been trying to with my staff foster equity in businesses in the northeast corner of the city which has been ground 0 for tourism and international and regional and national tourism, and whether it's pier 39 or fisherman's wharf, there are remarkable opportunities there for businesses of color and to
that end last year i put money as an add back in the budget which i'm still struggling to work with you guys to spend and i'm one of these librarians happy when my books are checked out and not on the shelves and my library is full, so i want to redouble the efforts making progress getting the dollars out the door for rent credits and capital tenant improvements to benefit businesses ultimate tli thrive and lead to success and wealth and intergenerational wealth and all of those things. and then finally, and i think this probably falls under the rubric of what you are calling commercial interventions, where do -- where is funding allocated to street festivals, neighborhood events,
neighborhood organizations. is there a list of those that have received those, and what are the criteria, and equity criteria for those grants? >> yes, thank you, that is the area where those live under commercial, neighborhood commercial interventions and those programs also sit under invest in neighborhoods. you want to talk very briefly about how we appreciate equity in our grant making to organizations and how we think about that? >> so largely the funding to support activations and events, a lot of which are culturally focussed on celebrating the diversity of our neighborhoods, have gone through the procurement process publicly of which one of our open ones is currently, you'll see some of those events there. and so that's one way through our procurement.
however, to get to the smaller organizations we have encouraged partnerships. we have also encouraged nonprofits regranting to smaller organizations, so for example, for the dream keeper initiative, one of our areas did focus on having a sponsor helping support those smaller organizations that organize those events and granting, being a grant program where 75% of the award was meant to go back out to those smaller event planners for festivities. so we are tackling it in different ways, again but the procurements, the majority of that funding has gone out to procurements, non-profits, well-known events that have been around years and bringing those back for economic recovery as well as new ones. and so we do have a list of what
those, who has received those funds and the types of events that they organize around the city. >> yeah, that would be great to see that list, and you said the majority. what about the minority? are there funds that don't good out to that type of solicitation and if granted, what are the criteria for that, and how much money? >> you know, i can't think of one example of us giving directly to events without a procurement process in place. again, the -- the strategy there to try to get to the smaller is procurement process creating a program to regrant to smaller organizations. >> and what about neighborhood-based organizations as opposed to nonprofits? neighborhood organizations being generally a collection of concerned citizens, they may or may not be incorporated, generally not incorporated as
501c3, are there grants to them? >> we do not have grants, however we have collaborated, for example, so this past year you might remember we did the holiday trolley that we went around and collaborated with merchant organizations along with cma and things like that, but it's more common that neighborhood organizations will partner with a fiscal or a non-profit org that then supports, you know, particular events. so our shop and dine in the 49 has been able to support some of that level of granularity of volunteer-based groups, that would be the example i can think of that you may think of with your question. but no, most of the funding is procured out to nonprofits that then help support the smaller groups in the neighborhood.
>> and we did, and have implemented and had it since i've been here increasing numbers of very transparent panel review processes that involved community, not just staff across all procurement at oewd, and that's a real priority for us to make sure we really do focus on our contracting in the way it has the procurement, decision making body in reviewing all the responses, that is not just our staff. and that's been a very important, i think, hallmark of what we have been trying to do as a department, and even a community benefit district as you know supervisor themselves are 501c3, so where we have a cbd in the neighborhood and working with them to say have their own ambassadors or increase cleaning services and in that neighborhood, that that is still done through a
procurement and through a contracting process with that 501c3. >> thank you. what i will do, madam chair, is commit the rest of my questions to a letter of inquiry and let you and your colleagues proceed with your next hearing. thank you, director sofas, and director, and i had questions for ms. tang but we'll leave those for another day or a letter of inquiry, particularly given that she only has a $3.8 million slice of the $152.6 million. >> thank you, supervisor peskin. would you like us to file this hearing? >> no, continue the call of the chair. >> ok. before we do that, can i make a motion to excuse supervisor mar for the rest of the meeting. can we have a roll call vote on that motion? [roll call vote taken]
member mar be excused for the remainder of this meeting. vice chair safai. safai absent. member mar, to be excused. member chan. chan aye, walton, aye, chair ronen, aye. >> and please open this item up for public comment. >> yes, members of the public who wish to speak on this hearing and are joining us in person should line up to speak along the curtains. for those listening remotely, please call 1-415-655-0001, enter the meeting id24978419535, pound and then pound again. once connected, star 3 to enter the speaker line. for those already in the queue, please continue to wait until the system waits you have been unmuted and your queue to begin your comments.
please unmute our first caller, please. >> good afternoon, supervisors, directors, my name is william ortiz cartejena, i'm an under foer of a small business technical assistance non-profit. i also chair the subcommittee for the latino task force on small business, and i just wanted to thank everybody's work, supervisors, oewd. oewd has been our key partner, our key partner in assisting and saving businesses. they walk hand-in-hand with us in the mission district and i don't know what we would have done without their partnership, their true partnership, and we work in the collaborative effort with the oewd, and we are as sufficient as possible with the limited resources the city may have have sometimes.
and honestly, the world almost came to an end and always the small businesses are always the first line of defense in community. they are community. i'm a small business owner myself as well. so i want to say that oewd has been instrumental in saving businesses and you know, i'm not a sophisticated person so i can't give you data and stuff like that, but the optics, you know, in the one that absorbs, you know, the plight of our small businesses when they come to my office and they are crying and don't know what, and oewd has been a true partner on the ground, literally on the ground with us. most people are working from home, oewd was with us on the ground. so i just want to say thank you for oewd's work during the pandemic and for being a true partner in community. thank you. >> thank you for your comments.
>> next speaker, please. >> good afternoon, chair ronen, supervisors. >> executive director of the chinese culture center, long standing arts in chinatown, and initiative museum without walls that activates public space with art through festivals, public art that supports the neighborhood and the economy. we have been producing the chinatown music festival since 2010 and dancing on waverly since 2014. and that includes a lot of collaborative community outreach to small businesses. the festival is loved by the community and important part of the neighborhood. we all understand that chinatown small businesses continue to need equitable support. i'm calling in to make a note and advocate as part of oewd equity plan to support
festivals, particularly in chinatown, like the chinatown music festival, which is long standing but has not been historically included at this stage and to advocate for it to be included in oewd equity budget and plan as part of bringing equity to the neighborhood and supporting the neighborhood. thank you very much. >> hi, supervisors. and oewd staffers, my name is claire lau, with the chinese progressive association, and i first want to thank supervisor peskin for your leadership. i wanted -- as you all know, communities of color have suffered the most impact during the covid-19 pandemic and it's really important that recovery is a just recovery for those,
particularly for those who have been most impacted, and this is not only for businesses of color, but also for workers of color. so we really urge oewd to be investing resources in folks that have been most impacted by the pandemic, particularly unhoused residents, undocumented, and sro residents, we would love for oewd to triple its investments in economic recovery and equity programs to establish earn and learn, title programs for sro residents and to increase programs and resources for unhoused residents. thank you very much. >> thank you, claire lau for your comments. next speaker, please.
>> and also to add weekly, strong partners with oewd, and appreciate all the support that has been brought before by the work into the community, and we are looking forward to maxnizing more of the dollars that have been pushed out into our neighborhoods. so we appreciate the work done up to this point and are looking forward to more opportunities as funding increased and as funding makes its way into our communities. we are here to work in partnership, we are here to do the work, and we look forward to being in a strong community
advocate for small businesses in the district. thank you. >> thank you so much for your comments. can you -- yes, madam chair, that completes our telephonic queue. >> thank you. public comment is now closed. i just -- i wanted to say that i'm looking forward to supervisor peskin's additional questions and hearing how all of these programs work in your different neighborhoods. i do want to recognize and thank oewd for doing particularly a great job in the mission district. deanna knows pretty much every business and every business owner by name and knows their entire history on the 24th street corridor and cultural district, and has worked so closely with the latino task
>> we have 3aye's . >> mister clerk, thanks to all the vw staff. i hopeyou get well soon . mister clerk can you please read item number two. >> -twois a hearingon departmental hiring patterns with regard to racial equity . it's the goal of equitable diversity in the city. members of the public who wish to provide public comments should call 415-655-0001, meeting id is 2497 841 9535 and press pound twice. the system prompts will indicate you have raised your hand. wait until the system indicate you have beenunmuted and you may begin . >> chair: as i announced earlier , director ice and isn't able to make the meeting
and would like to be here and we love to hear from her directly so if i could continue this item to the call of the chair. after public comments, can we please open this item for public comment ? >> members who wish to speak and are joining us in person should line up now. for those listening remotely please call415-655-0001 . the meeting id is 2497 841 9535. then press pound twice. once connected restáthree to enter the speaker line for those in the speaker to tell the system indicates you have been unmuted will be your queu . there are no impersonal speakers. madam chairthere are no colors in the queue . >>. >> chair: public comment is no closed . can i get a motion to continue this item to the call of the chair . secondedby president walton . >> on that motion to continue this hearing vice chair safai.
[roll call vote] we have 4 aye's. >> chair: this item is continued, call item number three. >> item 3 is a hearing to considerthe city's budget reserves including current balances, legal requirements and obligations numbers of the public who wish to provide public comment should call415-655-0001 . the meeting id is 2497 841 9535 . then press pound twice if you haven't already done so i'll start 3 and the system prompts will indicate you have raised your hand. wait till the system indicates you have been unmuted and you maybegin . >> chair: supervisor wouldyou like to introduce thehearing . >> i'll be brief . i want to thank our controller for putting this presentation
together. as vice chair of this committee for the second year i'm working with the chair and one of the questions we often get our from people advocates interested parties that come through the budget process and consistently say to this committee there's significant money sitting inthe reserves . whydon't we tap into the reserves ? why don't we use that money to do xy and z. i thought it would be helpful to have this conversation to set parameters around what the reserve accounts have been set for, how they can be utilized and what help it can bringto our budgeting process so everyone has a better understanding essentially that's what was . i'm happy to have a conversation about it once the presentation is made but i want to thank our controller and we have a lotof questions here today .
>> chair: okay. then rosenfeld is remote and is going to gothrough this presentation . >> good afternoon supervisors and thank you forhaving me today . city controller and i am sorry that like director sofus i'm not able to be there today but will run through the powerpoint presentation whichwe provided to the clerk and members of the committee and i'm happy to take questions . >> is that visible to you supervisors?>> chair: yes. >> apologies. >> there we go.
>> okay. thanks for having us. again, i'll talk through the city's general reserves sitting in the general fund and go through each of them. talk about how they were established, their legal limitations, policy considerations and any concerningquestions you have . i thought it would be helpful to frame the discussion of about 15 reserves to talk in broad categories what those reserves were initially established to hedge against an reserves are designed to hedge against risks that we see ahea . they really fall into four differentcategories . the first, we have two primary reserves that are designed to help bridgemultitier budget losses that result from recession . they kind of help the city through multitier revenuelosses
that result during a recession . we have a second reserve that has a different purpose that's shorter-term in nature and that's to address unanticipated short-term issues that arise within a given fiscal year after the budget adoption so the first category really standing in three years in most cases the second addressing shorter-term issues that arise after the subsequent element. we have several reserves that act as a concept dedication of one time savings. to be used for one-time purposes. and to avoid their use for ongoing . i'lltalk through those . and lastly, a whole set of other specific risks that the mayor and the board identified and allocate funds to hedge against in the form of specific reserves through the annual budget process and those risks and your choices as a board and mayor as to how to hedge against them is a choice you make this year in the budget.
i'll go through each of these four categories and i think they help frame theindividual reserves . i know at the bottom of the slide i'm focused on the presentation of the general fund. our enterprise fund and other special revenue funds for general government will often have reservesunique to their interests . i was going to start with an economic stabilization category so that first category is designed to help the city whether recessions. in 2003 sponsored by then supervisor tom, the voters approved the cities rainy day fund. rainy day reserves. this reserve as we say at the top of the page as a current balance ofover $14 million . the purpose of this reserve is stated in the charter is to capture above average revenue growth in very strong years so
that it can be used to smooth revenue losses in downturns . we have a couple of highlights of how the rules of this reserve works. basically strong revenue growth defined as revenue growth in a givenyear over five percent , 50 percent of that growth over five percent ends up deposited into the rainy day reserves. and from there it actually ends up in two places. 75 percent ends up in a city rainy day reserve and 25percent set aside for the use . above and beyond that and i'll come back to this later, a portion of that revenue growth over five percent also is dedicated for one-time purposes. this reserve which is established in the charter has a formula that determines when it can be drawn and that formula is in essence that revenues decline versus the
prior year which is a condition we typically see in the first year of recession and then subsequent years are handled by a modestly different formula but it's got a withdrawal that's triggered from the first year of recession withactual revenue pluses . the reserve also has features in it that taper the amount and draw the pace over the reserve and the concept baked into this measure into the charter is that a recession almost often lasts multiple years. typically about three years and you want to have a reserve that's depletedover that time to help address it . unlike many of the other reserves i talked about there is no suspension allowance for the reserves. these rules arebaked into the charter and absent going back to thevoters will not change . >> can i ask a quick clarification . the money that goes into this reserve is any growth greater than five percent over agiven
year . >> if general revenues grow by more than five percent growth over that level itches a strong year, 50 percent of that growth above five percent ends up in interest rates. >> and then the 75 percent that goes to the city. sorry. >> are wondering how the percentages fit together. >> i'm super confused, yes. >> if we have $100 of revenue growth over five percent, $50 is deposited into the rainy day reserves. of that $50, 75 percent of it ends up in the city rainy day reserves, 25 percent ends up in the rainy day reserve. so 75 percent of the 50
percent, 25 percent of the 50 percent . >> and then 25 of the 75 percent of the 50 percent that ends up in the city reserve has to be used for one time only. >> i apologize and there's probably a graphic way to do this thatwould be better than words . back to that $100 of revenue growth, 80 percent goes into rainy dayreserves . so $50. 25 of the 50 has to be spent on one-time purposes and the other $25 over the five percent growth, that 25 can be used for any legalpurpose . i i think the concept there, that's okay. >> the concept is not to have ongoing growth too fast. >> exactly. >> the 25 percent that goes to
school district reserves, are there rules in terms of when they can use that money? >> know, the rainy day reserve was amended several years ago and part of that amendment created a school district specific rainy day reserve which we talked about here and the school district has discretion over how to draw that . they have to make a finding of fiscal distress but having made that finding their able to draw their balance and the school districts did draw their balance severalyears ago so they have a low reserve balance . >> thankyou . >> of course. >> this is a reserve established following the city's experience from the.com bust when we got our reserves were not adequate at times and policymakers decided we needed to be better prepared for
subsequent recessions. our experience in the recession of 2008 and 2009 was that the rainy day reserve alone is not sufficient to provide meaningful really during a protracted recession so at that time the voters approved proposition a which permitted the controller to propose policies to the board and if the board adoptthem with a two thirds vote , they go into law. so following prop a our office proposed a second rainy day reserve so a complement to the rainy day reserve call the budget stabilization reserve. the ideabeing we wanted to have more in reserve entering recessions given our experience in 2008 . this reserve looks and operates in muchthe same way rainy day reserves do . again, it's taking 50 percent of and abnormal revenue. in this case 50 percent of one time sources that we often
experience. that's the defined in the reserve as our most volatile revenue source growth above the five-year rollingaverage . so in front of abnormally high tax growth and balances that we have available at the end of the year unexpected balances that are already subsequently assumed in the subsequent year's budget. so this reserve is fed by 50 percent of those two sources . and it can be drawn in years, the rules for withdrawal were exactly like the rainy day reserve print revenues declined were versus prior year which is always thefirst event in a recession . this reserve is established by the provisions permitted in proposition a in the charter. and has baked into it a
suspension allowance so the board ofsupervisors can suspend this reserve policy with a two thirds vote in any given year. unlike the rainy day reserve . >>one note to add at the bottom, you see that at the bottom of the page . the combined balances of these tworeserves , the rainy day and budget stabilization reserve are capped at 10 percent so there is a concept we have a target as to how much money we want to setaside for a recession and if we hit that , then the money over that he gives to flow into the one time reserves rather than following this rainy day reserve. we had just for the first time in the city's history back prior to the pandemic and as you can see here in the note our current balance over the last couple of years we have about two thirds of thereserves still in place . i think it's always helpful to judge reserve balances against
the potential risk yourhedging against . this is a simple illustration from the five-year financial plan which the city produces each year and it's showing you on the left the typical or average revenue losses that occur during a recession to the city so when we look at actual general revenues we have is performing typically a three-year recession. how much did we lose? you can see at the top there typically in a recession we also have a retirementpension fund that loses money . that's the typical average challenge we face during a recession is that a $1.2 billion loss. the slide or the stack on the right is showing you howthe reserves fit into this . our current balance is in the two rainy day reserves. then it's just about over $400 million in solutions. if we lose revenue the
baselines also sharing that loss you can see at thebottom . currently in these two reserves plus the baseline adjustment we hadin reserve about enough to cover half . i mentioned moving on to the second category that we have another reserve and this is the general reserve and this is a reserve that's muchmore short-term in purpose . so this is the current balance of 42.8 million and it. as you know the city has drawn significantly from it and is dealing with a number of needs that weren't anticipated at the time the budget was adopted and that'sthe purpose of the reserve . it's to absorb short-term costs that weren't anticipated in th annual budget . this reserve was established by virtue of a financial policy we proposed to the board in 2010 andthe board adopted by a two
thirds vote . the reserve is required to be maintained at a specific percentage of budgeted revenue in a given year so that percentage changes between one and a half and three percent depending where you are in an economic cycle and we're required to deposit into the reserve each year and the budget sufficient to start you the year . this reserve can be used for any purpose the mayor and board determine it's needed for, any unanticipated need. revenue losses .again, because it's reserve was adopted by a two thirds vote of the board it can be suspended by a two thirds vote of the board. the third broad category reserves that the city has maintained his wanting to match one time savings. we've already talked about the
first two . the overflow account for rainy day and budget stabilization reserve where a portion of that growth that you don't want the concept being ongoing spending and therefore create problems should be held. the rainy day reserve currently has no balance in it. it's been spent by the mayor and board over the last several years and part of the challenge is weathering the we've been through.the stabilization reserve has a balance of 4.8 million. and again that can be used for any one timepurpose . lastly the city has another one time savings call the budget savings incentive fund established in the admin code. into this account 25 percent of the department expenditure savings at the end of the year
deposited into this account and from there the mayor and board appropriate them for one-time purposes. this incentive fund which has a current balance of zero can be suspended during a recession so when you draw from rainy day reserves this account suspended and thebalance then becomes available and that's what's happened over the last several years . the last fourth category is a little bit different. the first three are all reserves codified in the administrative codeor charter endeavor to address longer-term natural financial planning concepts . above and beyond that the mayor and board have the authority and typically do as part of preparing a given year's budget identified risks that we are concerned about and set aside money to hedge against those risks to maintain the integrity of the budget .
these are adopted each year as part of thebudget ordinance and they can be changed . but i thought i would run through each of the main ones . there are six and we can go through them. we've established as a city or reserve for federal and state revenue losses. it's currentlyat a balance of 81.3 million in it . the kind of theory behind this reserve, the concept that led to its creation largely relates to the amount of federal revenue we are receiving atthe moment and the risk that comes with that . so we have about $600 million of revenues the city has planned around and above and beyond that we have another six to 800 million other federal sources we received. cares act money and others. each of those revenues has an audit risk with it. we know from past experience
that it may be a year after final disbursements on the emergency and or 10 years after an emergency and fema will arrive and we will go through extensive audits that often resultin disallowance so while we're spending fema money today , there's a concept ofreserving for that risk . the current balance in the reserves is about 12.4 percent of our projected fema revenue so for every $10 of fema revenue we're spending today we're holding one dollar in reserve against a future audit. the next reserve was established last year as part of the city's budget process or the city budget ordinance, the fiscal cliff reserve. it has a balance of 209.8 million, the most significant of the reserves the board has established inrecent years . the theory and concept here is
to establish an account that can be drawn from the loss of federal and state stimulus revenue given the city's budget in the shortterm so looking at the fiscal year , the financial outlook last fiscal year in the budget process we had a large structural gap beginning to open up in what was then year three of the forecast and the concept here is that we would have a reserve account to deal with that fiscal cliff to help us land softly on the other side of that as we complete our spend out of federal andstate stimulus funds . here the current balance of the reserves 229.8 million is a bit more than the cost of the updated projections from those shortfalls. so updating our outlook this yearversus last year , that structural gap in year three and the most recent five-year financial plan that ouroffice , your budget analyst for the
mayor's budget produced that gap still exists in year three and four. it's approximately $200million during those few years . but that's a lower cliff that it was a year ago. but that's kind of theconcept of that reserve . third reserve on this page, we have a public health revenue reserve so this is equivalent to 10 percent of the revenue within the ph. these tend to be very volatile federal and statesources . to help manage that volatility this is an account thatebbs and flows . it grows when revenues, dph revenues are better than budget and is consumed when revenues fall less than budget. this was established during the conversion of the affordable care act which made public health revenue is much more volatile and subject to much more audit risk. it has reached its targeted
level so it currently has a target of 10 percent of select dph revenues and ithas reached that level . the probably the largest risk to think about here is at the moment relates to laguna harbor which is not at risk at the time. the reserve was initially established but as folks know we are working through certification issues that may well result in the loss of federal revenues to reimburse and repair that facility. the cost of that federal reimbursement is $15 million a month or about $100 million every six months or about $200 million per year. so when we think about risks in the world at the moment and potential usesof reserves to match , this is a reserve that could be utilized to help at least for awhile should we lose federal revenue at laguna . and then the last reserve on the slide is the free city
college reserve, a smaller account established as partof the boardadoption of the free city college program . it currently has a balance of 5.3 million . that reserve can be used for crossover runs or other cost challenges in the city college program and the reserve rose with unspent money in that program at the end of the year. it equals about 31 percent. and the last two of these again are smaller ones. the mission bay transportation improvement fund which is a fund established for city services to mitigate the impacts of stadiums in the south beach neighborhood. as a current balance of $1 million in it . lastly over the last couple of years the mayor and board have established a hotel tax reserve for the dedicated tax allocations that would go to other organizations and the
concept there being to hedge against volatility in hotel tax that might otherwise affect those programs. so that's kind of the rundown of these reserves as they currently sittoday . these are established and can change and probablyshould change over time . there efforts to respondto risks we see at the moment in time . to provide a little bit of context of how these reserves taken together have performed the last couple of years, this is a slideshowing those broad categories . economic stabilization, one-time purposesand those reserves established for other risks . you see the balance in fy 18-19 and our current balances today. we entered the pandemic with just under 1.4 billion in an reserves and as their design to
the city has been drawing on those reserves and we have spent approximately $450 million on these reserves over the last 2 fiscal years. just kind of in wrapping up we do report often on these reservebalances and where available at any time to answe questions anyone has . with the six regular financial reports , i knowyou are all consumers of them .each of them contains updates on each reserve balance and some description of its uses. lastly i'll mention just in the appendix to what these have in front of you, there are three other reserves that i haven't discussed today and in full disclosure i want to note the city also maintains the litigation reserveand audit
reserve .these are established for accounting and budgetary standards for more technical reasons so litigation reserves being an estimated liability that would result from the city from all claims and litigation pending against our city. and it's an estimate each year that we actuarially work up with the city attorney's offic . the city establishes and mou reserve that's designed to account for costs that are budgeted and then the city has an audit reserve which is to deal with audit disallowance i that routinely occur over the course of the fiscal year . andi'm happy to answer any questions . >> thank you, supervisor safai. >> thank you mister controller. that was very helpful. i really appreciate it, there is straightforward.
i'm going to go through a series ofquestions . one, when i look at on that last page you show on your xl sheet , it went through all the 15accounts . it starts with the general reserve and says projected balance 72 million but you on your slide say you have general reserve balance just under 44 million. so that didn't make sense to m . everything else lined up with that chart on slide 11 or page 11. it says general fund ending balance 2021 7.3 million, depositing 3.1 million very sharp eyes supervisor safai. the chart we inserted their to show the presentation is from
the clerk's report so the numbers you haveare what we talked about earlier are correct . in the nine month report the numbers on the table whichwe added for illustration are dated . >> all the other numbers seem to line up but okay. so that is the number you're giving us general reserve, 43 million. >> it is occurring now. >> it is the current number. the first two were very straightforward economic stabilization reserve . those are very straightforward. those are recession accounts that can be usedunless there is a recession in the prior year . that seems straightforward but in terms of the general reserve it seems what we use that for if i'm not mistaken is during anticipated overages. over time we've had a number of those in salary and i think
we've approved three or four of those in the current year so that's why that number has gone down, is that correct ? >> that's correct and it can be for cost overruns were also new policy proposal that works in considered at the time of the budget so there are veryfew limitations on that reserve . >> i'm going to write that dow . okay. >> one thing i should note about themechanics of how that reserve works . whatever the city takes out of that reserve has to be replenished in a subsequent yearthat we can start the new year . butthere is that tension . >> right, that's what we always do. we're taking it out of the general reserve for theupcoming budget and putting it back . you have to is whatyou're saying . >> if it's awful, some of the thinking that led to this reserve at a reasonable balance
work experiences we had in both the.com bust and the recession where we did not balance a budget and did not have sufficient money in reserve to address even modest optics and that would trigger requirements in terms of spending cuts earlier in the year. these are modest revenue losses which we rebalance with exercises so one of the good things about having a balanced reserve gives you more flexibility to address these issues as they arise without having to immediately resort to spending cuts in a balanced budget. >> i guess then going back to that chart if we had to utilize that money during this current fiscal year it hasto be repaid number will go back up . >> exactly and you'll start next year. at targetlevels . >> my next question was about the budgetstabilization one time reserve .
it looks like it hasnot been touched insome time . can you tell me more about what that has been used for , what has been used for in the recent past. >> if it's not been withdrawn the city withdrew thereserve earlier in the recession to support one-time spending in budgets that would otherwise be cut . i believe there was a draw from a couple of years ago. a draw from the budget stabilization reserve one time related to proposed by then supervisor viewer as part of the budgetcommittee's actions . to support various one-time initiatives that she and the budget committee intended to moveforward . i can follow up with more details. >> that would be helpful, soundslike it's one-time capital expenditures . and then in going to your fiscal cliff reserves you
projected out the fiscal cliff reserve staying pretty much the same all the way until the end of or at least nextbudget cycle . when do you anticipate or when can we anticipate understanding better that particular reserve? it sounds like it's established as you say here to project budget shortfalls along the federal state stimulus funds. after we utilized all of our state and federalstimulus funds ? when do we anticipate those being gone ? >> our latest five year funding forecast boards budget analyst and mayor's budget office was prepared in march projects as we know a modest surplus for the next two fiscal years and then a budget gap beginning in year three and year for.
those forecasted shortfalls in the years and four of the forecast are largely due to the fact that it's about that time that we spend it on various federal revenue sources so that's part of what striving. >> what fiscal year is back, is that 2324 2425? >> the two-year surplus we're projecting is for the coming fiscal year 2223 2324. the gas that are protected opened up in 2425. >> so it's then just again to put a fine point on it, it's prudent to keep carrying those dollars forward for the next two years to understand better the next slowdown from state andfederal funds . >> these are fundamental choices how to fund this at the mayor board practice part of
this coming year's budget. as a financial planning concept having money in reservefor a soft landing given budget problems you foresee in the future , i believethat the concept of this reserve makes sense . i will say how much of that structural gap you want to hedge against and how much you don't is a policy choice. i don't thinkthere's a right answer their . and the structural gap has funds. >> did you say ithas grown or in a short ? >> it has shrunk. >> that's what i was going to say. at least what's presented that is around the time we project our economy to recover in a more robust manner. am i correct? >> correct and that sort of like the structural gap is less significant than it was this time of year. part of that is because we had
>> finally, two last questions. the public health reserve seems to be one that we're going to have to dip into with the laguna honda. do we have any anticipation how many months we anticipate a need for help with the federal reimbursements that we are not get at $16 million a month? that was more to the mayor's office. i see them shaking their head. what i have heard potentially couple of months to get this resolved. that will be $16 million times three. >> my understanding, supervisor, if we're not successful in securing continuity of payment,
which i think is our first hope, we avoid that risk. we will have to begin a new accreditation exercise which could take six months or longer. it has uncertain outcome. if we really do lose this revenue stream from the fed, it could be this full reserve at risk and it could be depleted in six months without federal revenues being adopted. >> there you go. there's a perfect example -- we can point to everyone. everyone says you have $100 million sitting in the account. who would have known that we would have this. thank god we do. it's sad that we have this fiasco. just going back to your excel sheet, it says salary and benefits, other reserves. is that the same thing you're
referring to as the m.o.u. reserve? >> that's correct. >> seems as though maybe that was part of the budget of the salary negotiations that just completing. is that correct? >> the controller can chime in if he like. this is a reserve that we had for some number of years. i don't know exactly how long we had it. it help us deal with costs related to m.o.u. expenditures. >> it's projected to be zero now? >> each year we establish an account which we deposit these. each year the choice is made part of how much to replenish. >> my last question, the free
city college reserve, we just got word that the school district rescinded 300 layoff notices. they did that through their county. they are also in fiscal crises. city college just sent out layoff notices, they vote on that. for a number of different departments, many of which are extremely important. english as a second language to highlight a few. i want to ask the question on the record. i understand this account was established to anticipate an increase in students taking advantage of free city college. their enrollment numbers have gone down significantly. is there any flexibility to do departmental services?
when i saw that on the presentation, i wanted to ask the question. >> the account is -- [ indiscernible ] eligible uses are defined by the m.o.u. related to that program. the expenses you're talking about wouldn't be eligible for the m.o.u. however, as is the case for other reserves in this category, as a matter of law, the mayor and board -- >> i want to ask to be clear, we have the free city college program but you're taking away options for students to participate in free city college. that's not eligible? >> correct. >> okay, thank you. that's good. did you say you have a but? >> i was going to mention, as is
the case in all the reserves, matter of law, the mayor and board can choose to appropriate money from this account for other purposes. >> thank you for that. thank you madam chair and committee members. >> supervisor safai: i will stay with the free city college quickly -- >> supervisor ronen: didn't the mayor use some of this funding to add resources to the joint sfusd? >> i spoke to director this morning. that's where the money went to augment of number of students at the city college. >> supervisor ronen: i want to say it was $3 million. but i can't remember.
it's not ringing a bell. [ laughter ] >> some of the money came from the school district. it was some from us and the school district. >> supervisor ronen: i believe that this account was drawn down for this fabulous program that i'm very excited about. it's fantastic that it was used for this purpose. i thought it was sort of both boost up quality programming for sfusd seniors and also increasing student participation at city college, sort of a win-win. it's been very successful in the past. it was only cut in the past because of budget crises. anyway, i think that came from this reserve if anyone knows.
>> $1 million was used for the workforce program. i think it was workforce readiness training at city college. >> supervisor ronen: none of it came from this reserve? >> this continues to exist. there's no plan. >> the reserve will take an appropriation to board of supervisors. so we'll be aware of that. that is a current unappropriated balance in the reserve. we can follow-up, your request to get additional details. >> supervisor ronen: i would like that.
>> supervisor chan: for free city, we have extended m.o.u. with city college and they reimburse or they get reimbursed per student. that's the cost they can cover the unit. as long as they showed they are san francisco residents. but then this is a reserve on top of the standing annual $5 million per year according to the m.o.u. >> that's correct. we have an annual budget for that program now as a city. covers the cost that you mentioned. we have an m.o.u. that governs that. this is a reserve mentioned in the m.o.u. to guard against volatility. >> supervisor chan: the pathway for sfusd high school students that can actually take city
college prep courses that $1 million is actually on top of the $5 million standing m.o.u. dollars. >> correct. >> supervisor ronen: another quick question. for the fema reserve, the federal and state revenue reserves, i guess we've been reimbursed for expenses that we incur that were eligible for funding from fema already. we haven't been reimbursed for anything yet? >> no, we have. we have been reimbursed for some of the cost that we have
incurred and continue to claim and seek reimbursement for additional funds. >> supervisor ronen: what you're explaining is -- i would love to know what's the rate at which we're recovering those fund. what you're explaining is that this reserve isn't based on the rate that were reimbursed. it's based on a future audit that can come at any point. past audits we had, we've had to pay back the federal government around 12% after an audit. is that right? >> not quite. the budget that the city adopted in recent years have made projections. the forecast that we have of revenues looking ahead is our forecast of when we'll receive fema revenue. we received some of the funds
from early in the pandemic. we continue to claim in the current year and then next couple of years. all together it's bit over $700 million in revenues. this is a hedge against a risk that we will likely feel after we receive that full $700 million. that's when fema after all the funds have been disbursed and begin auditing to determine whether the documentation is adequate. >> supervisor ronen: this $81 million in the reserve is both in case we projected wrong when we receive reimbursement and if there's a future audit?
>> correct. >> supervisor ronen: is the mayor planning on using any of these reserves to balance the budget? >> we're still very much in budget development and budget balancing process. i can't comment on that now. we'll be able to talk about it on june 1st. >> supervisor ronen: she's so good. i have to ask her, though. [ laughter ] we have to have a little preview once in a while on what's going to happen. [ laughter ] i don't have any more questions. thank you so much for this. this is very helpful presentation. i appreciate it. can we open this item up for public comment. >> clerk: members of the public who wish to speak, you can line up now. those listening remotely dial (415)655-0001. enter the meeting i.d. 2497 841 9535 then press pound twice. once connected press star 3 to enter the speaker line.
we have no speakers in person here in the chamber. there are no callers on the line. >> supervisor ronen: thank you. public comment is closed. since our sponsor has decided to leave us, i'm going to make a motion to file this hearing. we have a roll call vote. >> clerk: on that motion to file this hearing moved by chair ronen seconded by member walton that this hearing be filed. voice chair safai is absent. member mar is excused. [roll call vote] we have three ayes. >> supervisor ronen: i like to thank president walton and supervisor chan for usually
the tenderloin is home to families, immigrants, seniors, merchants, workers and the housed and unhoused who all deserve a thriving neighborhood to call home. the tenderloin initiative was launched to improve safety, reduce crime, connect people to services and increase investments in the neighborhood. as city and community-based partners, we work daily to make these changes a reality. we invite you to the tenderloin
history, inclusivity make this neighborhood special. >> we're all citizens of san francisco and we deserve food, water, shelter, all of those things that any system would. >> what i find the most fulfilling about being in the tenderloin is that it's really basically a big family here and i love working and living here. >> [speaking foreign language] >> my hopes and dreams for the tenderloin are what any other community organizer would want for their community, safe, clean streets for everyone and good operating conditions for small businesses. >> everything in the tenderloin
is very good. the food is very good. if you go to any restaurant in san francisco, you will feel like oh, wow, the food is great. the people are nice. >> it is a place where it embraces all walks of life and different cultures. so this is the soul of the tenderloin. it's really welcoming. the. >> the tenderloin is so full of color and so full of people. so with all of us being together and making it feel very safe is challenging, but we are working on it and we are getting there.
. >> president yee: of the 26 neighborhoods we have in west portal, it's probably the most unique in terms of a small little town. you can walk around here, and it feels different from the rest of san francisco. people know each other. they shop here, they drink wine here. what makes it different is not only the people that live here, but the businesses, and without all these establishments, you wouldn't know one neighborhood from the other. el toreador is a unique restaurant. it's my favorite restaurant in san francisco, but when you look around, there's nowhere else that you'll see decorations like this, and it makes you feel like you're in a
different world, which is very symbolic of west portal itself. >> well, the restaurant has been here since 1957, so we're going on 63 years in the neighborhood. my family came into it in 1987, with me coming in in 1988. >> my husband was a designer, and he knew a lot about art, and he loved color, so that's what inspired him to do the decorations. the few times we went to mexico, we tried to get as many things as we can, and we'd bring it in. even though we don't have no space, we try to make more space for everything else. >> president yee: juan of the reasons we came up with the legacy business concept, man
eel businesses were closing down for a variety of reasons. it was a reaction to trying to keep our older businesses continuing in the city, and i think we've had some success, and i think this restaurant itself is probably proof that it works. >> having the legacy business experience has helped us a lot, too because it makes it good for us because we have been in business so long and stayed here so long. >> we get to know people by name, and they bring their children, so we get to know them, also. it's a great experience to get to know them. supervisor yee comes to eat at the restaurant, so he's a wonderful customer, and he's very loyal to us.
>> president yee: my favorite dish is the chile rellenos. i almost never from the same things. my owner's son comes out, you want the same thing again? >> well, we are known for our mole, and we do three different types of mole. in the beginning, i wasn't too familiar with the whole legacy program, but san francisco, being committed to preserve a lot of the old-time businesses, it's important to preserve a lot of the old time flavor of these neighborhoods, and in that capacity, it was great to be recognized by the city and county of san francisco. >> i've been here 40 years, and i hope it will be another 40
>> hello everyone. welcome to the bayview bistro. >> it is just time to bring the community together by deliciousness. i am excited to be here today because nothing brings the community together like food. having amazing food options for and by the people of this community is critical to the success, the long-term success and stability of the bayview-hunters point community.
>> i am nima romney. this is a mobile cafe. we do soul food with a latin twist. i wanted to open a truck to son nor the soul food, my african heritage as well as mylas as my latindescent. >> i have been at this for 15 years. i have been cooking all my life pretty much, you know. i like cooking ribs, chicken, links. my favorite is oysters on the grill. >> i am the owner. it all started with banana pudding, the mother of them all.
now what i do is take on traditional desserts and pair them with pudding so that is my ultimate goal of the business. >> our goal with the bayview bristow is to bring in businesses so they can really use this as a launching off point to grow as a single business. we want to use this as the opportunity to support business owners of color and those who have contributed a lot to the community and are looking for opportunities to grow their business. >> these are the things that the san francisco public utilities commission is doing. they are doing it because they feel they have a responsibility to san franciscans and to people in this community. >> i had a grandmother who lived in bayview. she never moved, never wavered. it was a house of security
answer entity where we went for holidays. i was a part of bayview most of my life. i can't remember not being a part of bayview. >> i have been here for several years. this space used to be unoccupied. it was used as a dump. to repurpose it for something like this with the bistro to give an opportunity for the local vendors and food people to come out and showcase their work. that is a great way to give back to the community. >> this is a great example of a public-private community partnership. they have been supporting this including the san francisco public utilities commission and mayor's office of workforce department. >> working with the joint venture partners we got resources for the space, that the businesses were able to thrive because of all of the
opportunities on the way to this community. >> bayview has changed. it is growing. a lot of things is different from when i was a kid. you have the t train. you have a lot of new business. i am looking forward to being a business owner in my neighborhood. >> i love my city. you know, i went to city college and fourth and mission in san francisco under the chefs ria, marlene and betsy. they are proud of me. i don't want to leave them out of the journey. everyone works hard. they are very supportive and passionate about what they do, and they all have one goal in mind for the bayview to survive. >> all right. it is time to eat, people. wome
sustainable future . ople. wome >> san francisco streets and puffs make up 25 percent of cities e city's land area more than all the parks combined they're far two wide and have large flight area the pavement to parks is to test the variants by ininexpensive changing did new open spaces the city made up of streets in you think about the potential of having this space for a purpose it is demands for the best for bikes and families to gather.
>> through a collaborative effort with the department we the public works and the municipal transportation agency pavement to parks is bringing initiative ideas to our streets. >> so the face of the street is the core of our program we have in the public right-of-way meaning streets that can have areas perpetrated for something else. >> i'm here with john francis pavement to parks manager and this parklet on van ness street first of all, what is a parklet and part of pavement to parks program basically an expense of the walk in a public realm for people to hang anti nor a urban acceptable space for people to use. >> parklets sponsors have to apply to be considered for the program but they come to us you know saying we want to do this and
create a new space on our street it is a community driven program. >> the program goes beyond just parklets vacant lots and other spaces are converted we're here at playland on 43 this is place is cool with loots things to do and plenty of space to play so we came up with that idea to revitalizations this underutilized yard by going to the community and what they said want to see here we saw that everybody wants to see everything to we want this to be a space for everyone. >> yeah. >> we partnered with the pavement to parks program and so we had the contract for building
236 blot community garden it start with a lot of jacuzzi hammers and bulldozer and now the point we're planting trees and flowers we have basketball courts there is so much to do here. >> there's a very full program that they simply joy that and meet the community and friends and about be about the lighter side of city people are more engaged not just the customers. >> with the help of community pavement to parks is reimagining the potential of our student streets if you want more information visit them as the pavement to parks or contact pavement to parks at sfgovtv.org
>> hi everybody. i am executive director of giffords. led by gabby gifford joining us today. we would like to welcome you to the giffords' san francisco gun violence memorial which serves as a stark reminder of gun violence that continues and increases to plague our great state of california, bay area and, of course, the country as a whole. in 2020 this state saw 3500 gun deaths representing a shocking 41% increase in murders. there is no single cause. gun sales are up. police community trust is down. the pandemic has led to an unprecedented social dislocation.
but we do know some of the answers to addressing the gun violence epidemic. two of them are simple. courage and determination. the courage of survivors like here and those from the 101 california shooting. over 25 years ago they turned grief into action, determination of survivors to keep at it year after year passing gun law after gun law which has allowed us in california to reduce the rate of gun violence over that amount of time in half. that is not enough. california is not an island. california must do more. for example, passing the firearms industry responsibility act. we need to keep the drumbeat going in sacramento. we need to continue to invest in
life saving violence prevention work. we need to shine a bright light on the inaction of washington, d.c. where despite 90% of americans who support universal background checks across the country despite the majority of americans that support deep investment in violence intervention and policies and investments despite the need for president biden to take further action, we have seen not enough. we are surrounded here today by a elected leaders, advocates, survivors, folks on the front lines to make it day-to-day work to create change we need for a safer city, state and country. i am deeply honored to introduce
san francisco mayor london breed. thank you so much for your leadership and in particular for your support for the $1.5 million investment in violence prevention services. >> mayor breed: let me say it is an honor to be here with our distinguished guests, including gabby gifford and the work she has been doing to address gun violence in this country has been extraordinary. this is how we connected because, sadly, this is why i got into politic in the first place. it has everything to do with growing up in a community where gun violence was normal. in junior high school it was easy for anyone to get access to buy or find a gun somewhere in your home and this is in the western addition where myself and michael joining us today
where we. >> up. too many funerals to count. i wasn't even 18 years old. when i think about these lives here represented in this way, 3449 people during the year of 2020 in the state of california. dying in this state, in this very wealthy state due to gun violence. half of these people because of suicide and african-american men in particular representing 4% of the population in this state. 28% of those who died from gun violence. kids ages 1-17. second leading cause of death in the state of california. in 2020 what we saw in san francisco is that gun violence was a leading cause of death in our communities.
we are seeing this happen time and time again. whether it is our synagogues or sandy hook shootings where our kids were murdered. in so many situations what is most frustrating to me is where is the compassion. where is the leadership? where is the courage? because i am certain, sadly, everyone here in some form or another is probably impacted by gun violence in some way. you directly or a family member. people in domestic violence situations one of the leading causes of death is by a gun. how do we get rid of this? how do we stop this and make sure it is not one more?
we can't give up this fight. the hurt is not just the people who are the victims directly. it is the families. it is the communities, the loss of life. heart and pain that carries on with you especially with the mothers. we are here with one of those mothers, those courageous mothers who has taken her pain and used it to advocate for other mothers, too much loss, hurt, too much pain. that is why we are here today. it is important to shine a light another this and never to give up. gabby would say never ever give up. on the need for change. on the need for justice. on the need to make sure the kids are not continuing to grow up in these environments where this is normal because it is not
normal. it is hurtful, painful and it is devastating to our city, our state, our country. we are better than this. we can do better than this. i am confident that the work that gifford does with a number of the people who are actively engaged in this fight we are going to get there. we are not going to give up and we are going to continue to fight to end gun violence in this country. thank you all so much for being here to support these efforts. [applause] >> thank you, mayor breed. as you heard from the mayor, there is no greater loss than the loss of the parent. our next speaker has grievously lost and she has also courageously fought for safer gun lies. i am very sonnored and proud to
introduce survivor lynnettemcelhaney. >> good morning. it is an awesome privilege to stand with this leader, our congressional leader and each of you who lifted up the cause of ending gun violence in this country today. i havingeled to figure out what -- struggled out what to say in a political or policy context to understand the importance of now. we are surrounded by 5 -- 3500 flowers representing the lives of californiaians lost to gun violence in 2020. think about that over 10 years and go back to 2010. you will find a flower from my
son, victor mcel haney. i was thinking about victor. i think about victor all of the time. he is the only son born to me. my only child, my only baby. i think about the promise that we all lost in victor. victor was born two months early but right on time. he chose to come on april 13th, he chose because he was a decisive child. arrived when tiger was winning the masters something i could not witness. victor said pay attention to me. he came in at 3 pounds. we named him victor because he beat the odds. he would need to be in a incubator for months and it was only weeks. he came born to drums and brought music.
at three he said music is medicine, mommy, don't you know that. he would drum his way to the university of southern california. where the transfer student he made teachers feel welcome in their place. we told him wherever he stepped foot it was his place to be and his place to serve. victor brought love into this world. he drummed for deaths and births and in celebration and created music and gave so much love. if you have ever been touched by music, ever been touched by a song, ever given you comfort and a time of stress or reminded you of joy us teenage years you know the power of music. i will tell you that on march 10, 2019 that drummer was
stopped from creating that memory or providing that tune or giving us that grace. victor was my sunshine. he was much more than that. he was a son of this great state, a son of his community. he chose to be a son of the world, and he wanted to share love, to heal all of the harms that would lead to the premature death of his god brother, his cousin, his nephew. it would ultimately take his life. just 30-days before he would have been 22. now people look at me and say you are so strong. i don't know that that is true. there is not a day in these past three years that i don't weep.
no a day i don't cry out. no time to rest. as marvin would say, there are too many mothers and fathers crying. now it would be one thing if we were just up against a disease we couldn't identify. a fight for cancer, viruses, things we bring science to. this is something we can cure. we know what to do. as peter so eloquently told us. 90% of us. we can't agree on the weather or time of day. 90% of americans know that this is something we can do without and we must bring an end to. there are just a handful of
wealthy people who profit on my pain. please help me stop them. please help me stop any other mother, brother, sister, cousin from living in this pain. thank you. (applause). >> thank you so much, lynnette. your courage as survivor is so remarkable. you are somebody who has been on the front lines of gun violence prevention for so long. i want everybody to know of your role in oakland of passing measure z which helped save count less lives through the services it funded. i want to introduce somebody now who is on the front lines of stopping gun violence. the wrap around services at
u.c.s.f. have comforted victims, stopped cycles of violence from continuing and saved so many lives. i am pleased to introduce our next speaker. >> i am mike. with the wraparound project over 16 years. we provide services for individuals impacted by gun violence. our mission is to really stop the reinvolving door of the violence in our cities. we provide services as far as victim services, court advocacy, job opportunities, employment opportunities, and really to just the highlight a few individuals we have young folks
who have been affected by violence now in the medical field and now they are also professors at san francisco state. thank you. (applause). >> thank you for your work and partnership. i am now pleased as mayor breed said gun violence takes many forms. from the daily community violence which devastates so many neighborhoods, suicide, also the nexus between gun violence and domestic violence. scott shelf from stop gun violence with the domestic violence consortium. thank you, scott. [applause] >> good morning. i have been working with rsp. i started asen mate participant
since 1998. i have been doing this for 24 years. it is my life work. i and honored to be here but i am sad to be here. that is how i feel. i feel sad about being here. i feel like we shouldn't be here but we need to be here. it is necessary that we are here. the impact of violence weighs heavy on me. sometimes i want to stop. i can't stop and won't stop. i have experienced violence at all level. i have worked with men sending violent texts and taken lives. why are you still working with them? my hope is they won't take another life. that is my hope. that is my reality. our program is based in the principles of restorative
justice. first about accountability. i can't help but notice the lack of accountability going on in our country. it is about time that we get accountable. my job is to hold men accountable for violence. that is my job to hold them accountable and hold myself accountable as well. we really need to step up our game because we are slipping. it is not working. clearly not working. i told beverly when i walked up and saw all of the faces i was overcome. 3449 people in one year. that shouldn't happen. i know people talk about the second amendment and stuff. it was ratified in 1791. that was a long time ago. guns have advanced. it is time policies advance. it is long time. guns are far more advanced now.
countless lives can be taken in a matter of seconds. it is like enough is enough. i work with men and challenge police systems. mr. bs. the belief system. we address gender roles and what men learn about what they are supposed to be as a man and their role and their partner's role. my job is to challenge that ideology. it is going on for hundreds of years. there is also some ideologies to challenge around gun culture. it is a shame to me that people are so caught up with guns. it is time we start taking on those belief systems around guns, right? and around people's right to have guns.
there are certain. i understand people want to have guns to protect themselves. if you are going to fight against the tyrannical government. good luck. that is not going to work out. i just want to mention some folks i have lost over the years, clients and friend. randolph grayson was 23 years old died on march 24, 2003. he had a smile and personality. first client lost in visitation valley. richard fowler 28 years old died october 3, 2011 at home playing video games. shot in the head. dante white. 22 years old. died april 27, 2006. in class with his bigfoot filled smile on tuesday.
on thursday he was gunned down at the community center. i will never see that smile again. nor will his parents or his child or any of his folks. they will not see that. shelton 10, 6, 14. we used to joke he was our son. he was 20 when i started working with him. he sat on many occasions at my desk. i said, look, man stop hanging out on the periphery. you are going to hurt somebody or be killed. i told him that three times. he was such a baby face and had a baby on the way. baby was born and he was taken. another father less child. he just started out in life. randy armstrong, 54. coming up on a year killed. he was a peer in rsvp.
he had quite an imposing presence 6-foot 9". he was a teddy bear. i loved that guy. shot and killed in potrero hill may 15, last year. >> cleveland reed client and co-worker 29. killed in potrero hill. a former co-worker killed walking dog in oakland worked apartment sevsevwith victims of vi-- worked at u.c.s.f. he would sit in our trainings when i started out. we became close. he ended up becoming the director of the program i went through. then went to continue his education at u.c.s.f. he was out walking his dog and shot and killed for no reason other than initiation.
he was not robbed. everything was in his wallet. david lewis, 54. he was killed june 9, 2010 at the hills dale shopping center. he was a giant in person and in the recovery circles. free at last in east palo alto. i wish i would have gotten to know him more. i can't now. i lost a cousin to suicide by gun back east recently. she was a young mother two kids, happily married. just in closing briefly i want it out there whoever is listening. if you need support i am here. reach out to me. if you need support or know somebody who needs support reach out to me, please contact me. get me through the sheriff's department or community works
west through the website. i am here to support anybody who wants it. you just need willingness to do some work. thank you for allowing me to be here today. it is an honor. [applause] >> thank you, scott for your courageous work and your remembrances. robin thomas executive director of givefords law center. -- giffords law center. over 15 years after being a top expert helped produce the policy gains that have helped us in this state achieve the decline this is per capita gun violence that are so important to protecting our communities. (applause). on july 1, 1993, almost 29 years
ago, a gunman walked into 101 california street in one of the buildings behind us and shot and killed eight people, left six wounded. forever changed the face of this city. the knowledge and understanding of this city of the toll of gun violence that can make any one of us acceptable to the havoc. the predecessor to the law center was founded in that tragedy. the mission was to reduce the goal of gun violence in san francisco, california, united states. i am proud to say that 29 years later we have had tremendous success since the shooting at sandy hook we passed 500 laws at the state level. [applause].
since shooting at parkland high school we passed 250 laws at state and local level. in 27 states last year we passed 75 laws. that progress every day is very meaningful. frustrating, maddening to us that the translation of success. the laws passed to places like california and have reduced gun violence and gun deaths in california by almost half aren't something that is taken up by the federal government. this is a problem that has solutions. we don't have to be looking at almost 3500 flower in the field behind us. it is courage shown by people partnered with us today standing behind me today, shown by our leaders in washington, d.c. we wouldn't have to be holding so many funerals and holding events to draw attention to this
devastating problem. like giffords we are proud of the work we do and laws we helped pass. proud of the second amendment laws in the courts. cases right now today sitting before the supreme court of this country and decisions expected next month. this is not a problem that is going to be an immediate solution in the courts. we will fight as long and hard as it takes until we have success. we are proud of the partnership. proud of the fact we stand with youth alive and the wrap around be project and domestic violence which people are in the trenches every day fighting this fight, supporting their communities one life at a time. we know the folks and the work they are doing. they have reduced gun deaths in oakland by almost 50% in the
last decade. that is tremendous. [applause]. we are so proud to work with them every day and stand with them every day in their fight and to bring every ounce of the power we can lift voices to make sure this problem is never forgotten. this is something we are committed to as an organization, as individuals as a group to fight for until one day we don't have to stand here in front of flowers and don't have to hear from mothers who tragically lost children. i think about that all of the time. how it would be possible to get out of bed the next day or any day after losing a child. the only thing i hope is that this fight, the fight to prevent this from happening in the future to others motivates us to never give up. we are never going to give up on this fight. i am so proud and humbled to be
here representing someone who i know we all feel so strongly is not just our namesake but inspiration that shows us every day what it means to have courage, fight, believe in a future better than the one we have today. (applause). >> our lives can change so quickly. mine did when i was shot. i never gave up hope. i chose to make a new start. to not look back. i am re-learning so many things, how to walk, how to talk, and i am fighting to make the country safer. it can be so difficult.
losses hurt. setbacks are hard. i tell myself move ahead. i find joy in small things, riding my bike, going to the gym, laughing with friends. we are living in challenging times, but we are up for the challenge. my own recovery has taken years. many, many people have helped me along the way. i learned so much. i have learned when people care for each other and work together progress is possible. change doesn't happen overnight. we can't do it alone. join me. move ahead together. thank you very much. [applause]. >> it is a windy day or the
fight against gun violence, gabby gifford is up for any challenge. i want to note gabby's recovery has taken years and years. her recovery is the product not of miraculous medical discovery, not particularly awesome day of physical therapy but sheer determination and hard workday after day, hour after hour, minute after minute. she inspires us. that is fundamentally what we have to do to fight against gun violence. there is no silver bullet. the gun lobby is not going to just walk away from the field. we have rejoin the fight each and every day, push the ball forward and save as many lives as we possibly can.
we know what we need to do. the nra wants us to feel hopeless that gun violence isn't preventible when we know that it is. that is why we are honored to have our partners together in this fight to work with all of you. with that we will invite you to spend some time at the memorial today and this week. happy to answer any questions which we can do now. (applause).
when i shoot chinatown, i shoot the architecture that people not just events, i shoot what's going on in daily life and everything changes. murals, graffiti, store opening. store closing. the bakery. i shoot anything and everything in chinatown. i shoot daily life. i'm a crazy animal. i'm shooting for fun. that's what i love. >> i'm frank jane. i'm a community photographer
for the last i think about 20 years. i joined the chinese historical society. it was a way i could practice my society and i can give the community memories. i've been practicing and get to know everybody and everybody knew me pretty much documenting the history i don't just shoot events. i'm telling a story in whatever photos that i post on facebook, it's just like being there from front to end, i do a good job and i take hundreds and hundreds of photos. and i was specializing in chinese american history. i want to cover what's happening in chinatown. what's happening in my community. i shoot a lot of government officials. i probably have thousands of
photos of mayor lee and all the dignitaries. but they treat me like one of the family members because they see me all the time. they appreciate me. even the local cops, the firemen, you know, i feel at home. i was born in chinese hospital 1954. we grew up dirt poor. our family was lucky to grew up. when i was in junior high, i had a degree in hotel management restaurant. i was working in the restaurant business for probably about 15 years. i started when i was 12 years old. when i got married, my wife had an import business. i figured, the restaurant business, i got tired of it. i said come work for the family business. i said, okay. it's going to be interesting and so interesting i lasted for
30 years. i'm married i have one daughter. she's a registered nurse. she lives in los angeles now. and two grandsons. we have fun. i got into photography when i was in junior high and high school. shooting cameras. the black and white days, i was able to process my own film. i wasn't really that good because you know color film and processing was expensive and i kind of left it alone for about 30 years. i was doing product photography for advertising. and kind of got back into it. everybody said, oh, digital photography, the year 2000. it was a ghost town in
chinatown. i figured it's time to shoot chinatown store front nobody. everybody on grand avenue. there was not a soul out walking around chinatown. a new asia restaurant, it used to be the biggest restaurant in chinatown. it can hold about a 1,000 people and i had been shooting events there for many years. it turned into a supermarket. and i got in. i shot the supermarket. you know, and its transformation. even the owner of the restaurant the restaurant, it's 50 years old. i said, yeah. it looks awful. history. because i'm shooting history. and it's impressive because
it's history because you can't repeat. it's gone it's gone. >> you stick with her, she'll teach you everything. >> cellphone photography, that's going to be the generation. i think cellphones in the next two, three years, the big cameras are obsolete already. mirrorless camera is going to take over market and the cellphone is going to be better. but nobody's going to archive it. nobody's going to keep good history. everybody's going to take snapshots, but nobody's going to catalog. they don't care. >> i want to see you. >> it's not a keepsake. there's no memories behind it. everybody's sticking in the
cloud. they lose it, who cares. but, you know, i care. >> last september of 2020, i had a minor stroke, and my daughter caught it on zoom. i was having a zoom call for my grand kids. and my daughter and my these little kids said, hey, you sound strange. yeah. i said i'm not able to speak properly. they said what happened. my wife was taking a nap and my daughter, she called home and said he's having a stroke. get him to the hospital. five minutes later, you know, the ambulance came and took me away and i was at i.c.u. for four days.
i have hundreds of messages wishing me get well soon. everybody wished that i'm okay and back to normal. you know, i was up and kicking two weeks after my hospital stay. it was a wake-up call. i needed to get my life in order and try to organize things especially organize my photos. >> probably took two million photos in the last 20 years. i want to donate to an organization that's going to use it. i'm just doing it from the heart. i enjoy doing it to give back to the community. that's the most important. give back to the community. >> it's a lot for the
community. >> i was a born hustler. i'm too busy to slow down. i love what i'm doing. i love to be busy. i go nuts when i'm not doing anything. i'm 67 this year. i figured 70 i'm ready to retire. i'm wishing to train a couple for photographers to take over my place. the younger generation, they have a passion, to document the history because it's going to be forgotten in ten years, 20 years, maybe i will be forgotten when i'm gone in a couple years but i want to be remembered for my work and, you know, photographs will be a
>> hi, fine, thank you. how are you? >> good. i want to ask you what inspired you to be a paramedic? >> that's a good question. you know, i wanted to go into med school and after i found out how much time it took and all of that, i decided that that was going to be a little too much schooling, but i still wanted to figure out a way that i could provide medical care and doing that as an emt as well as a paramedic was a way to do that. >> can you give me a break down of a typical day for you? >> i come to work and sit at my desk and then i respond to e-mails and try to figure out what are some of the issues we need to address. can we hire more people. what kinds of policies we want to try to create that will help us do our job as ems. >> what does it take to be a female paramedic? >> you know, it takes quite a bit of schooling, but also required somebody who's empathetic. it can be a very stressful job
and so we want people to be able to hand that on a day-to-day basis. >> so what's your greatest satisfaction in your job? >> trying to make sure that the work that we provide and the services that we provide to the community is the best that we can in ems so that when we go out to see you if you call us for an emergency, that we'll be able to treat you in the best way possible and that you get the care as quickly and as effectively as possible. >> why is it important for young girls, women of color to see women in these roles? >> i think it really is important for us to be able to get into these roles because we are effective, we are able to reach out to the community. we are able to do the job in a very effective manner and to be able to relate to the community and be able to do that is one of the best things that we can do. and people of color and as women of color, you know, we are in a great position to be
>> as a woman of color who grew up in san francisco i understand how institutions can have an impact on communities of color. i think having my voice was important. that is where my passion lies when the opportunity to lead an office in such a new space came up. i couldn't turn it down. i was with the district attorney's office for a little over nine years, if you include the time as an intern as well as volunteer da, all most 13 years. during the time with the da's office i had an opportunity to
serve the community not only as the assistant district attorney but as director of community relations. that afforded the opportunity to have impact on the community in an immediate way. it is one thing to work to serve the rights of those without rights, victims. it is really rewarding to work to to further the goals of our office and the commitment we have as city employees and advocates for people who don't have a voice. i don't know of anyone surprised to see me in this role. maybe people have an impression what the director of the office of cannabis should be like, what their beliefs should be. i smash all of that. you grew up in the inner city of san francisco. my career path is not traditional. i don't think a person should limit themselves to reach full potential. i say that to young women and girls. that is important.
you want to see leadership that looks diverse because your path is not predetermined. i didn't wake up thinking i was going to be a prosecutor in my life. the city administrator reached out and wanted to have a conversation and gave me interest in the new role. i thought you must not know what i do for a living. it was the opposite. she had foresight in realizing it would be helpful for somebody not only a former prosecutor but interested in shaping criminal justice reform for the city would be the right person for the space. i appreciate the foresight of the mayor to be open how we can be leaders in san francisco. i was able to transition to the policy space. here i was able to work on legislation, community relations, communication and start to shape the ways our office was going to reform the criminal justice system. it is fulfilling for me. i could create programs and see
those impact people's lives. i am the change. it took truants youth to meet with civil rights movement leaders who fought to have access to education. being a young person to understand that helped the young people realize this was an important thing to give up. what we find is that young people who are truanted have a really high homicide rate in our city, which is a sad statistic. we want to change that. >> coming from a community we are black and brown. i don't reach out to other people. i don't think they feel the same way. >> i had the great opportunity to work on prison reform issues and criminal justice reform issues. we created a program at san quentin where we brought district opportunities to lifers
and talk about how we are all impacted by the criminal justice system. we brought over 40 elected das to san quentin for the situation. now we are inviting the police department. our formerly incarcerated group born out of this programming asked for the opportunity to work on a project where we could bring the men in blue on the outside to come speak to the men on blue inside to start the healing dialogue around how the criminal justice system specifically in san francisco impacts the community. i was attracted to the role. there was a component of equity that was part of this process. the equity community here in san francisco is a community that i had already worked with. before i took steps to visit cannabis businesses i thought it was important my team have a chance to go inside and speak to men who had been impacted.
that conversation needed to happen so we know how we are making an impact with the work that we are doing. the da's office as we were leading up to the legalization of marijuana in the state we started having conversations on the policy team what that could look like. the district attorney was really focused on the right side of history for this. we realized it would be quite a heavy lift for individuals who have been negatively impacted by the war on drugs to expunge the record. it was important to figure out the framework to make it seamless and easy. they put their minds to it after some time and many conversations the data analysts and other policy walk throughs on the team came up with the idea to engage the tech community in this process.
code for america helped us developed the rhythm to be used for any jurisdiction across the state that was important to create a solution to be used to assist all jurisdictions dealing with this matter. the office of cannabis is the first office to have a completely digital application process. we worked with the digital team to develop the online application. there are going to be hiccups. we are first to do it. it is one of the most rewarding parts to offer a seamless -- to offer a seamless approach. that is how they can find solutions to solve many of the community challenges. the best way to respond to prop 64 was to retroactively expunge 9,000 cannabis related records for san francisco. it feels like justice full circle for my personal
experience. in the past i was furthering the war on drugs just as my directive. really coming from a place of public safety. that was the mandate and understanding. it is nice to see that pass a society we are able to look at some of our laws and say, you know what? we got it wrong. let's get this right. i had the privilege of being in the existing framework. my predecessor nicole elliott did an incredible job bringing together the individuals super-passionate about cannabis. >> the office was created in july of 2017. i came in early 2018. i have been able to see the office's development over time which is nice. it is exciting to be in the space, stickily in thinking about her leadership. >> looking for the office it is always we might be before my
time when i was working for the forboard of supervisors. i learn new things every day it is challenging and rewarding for me. >> we get the privilege to work in an office that is innovating. we get to spearhead the robust exprogram. >> i am excited she came on board to leverage experience as a prosecutor 10 years as we contemplate enforcements but approaching it without replicating the war on drugs. >> i was hired by cam laharris. i haven't seen a district attorney that looked kind of like me. that could be a path in my life. i might not have considered it. it is important that women and certainly women of color and spaces of leadership really do
their part to bring on and mentor as many young people as they can. it is superimportant to take advantage of as many opportunities as they can when they can intern because the doors are wide open. plans change and that is okay. the way this was shaped because i took a risk to try something new and explore something and show that i was capable. you are capable, right? it was about leaning in and being at the table to say my voice matters. you find your passion, the sky >> candlestick park known also as the stick was an outdoor stadium for sports and entertainment. built between 1958 to 1960, it was located in the bayview hunters point where it was home to the san francisco giants and 49ers. the last event held was a concert in late 2014.
it was demolished in 2015. mlb team the san francisco giants played at candlestick from 1960-1999. fans came to see players such a willie mays and barry bonds, over 38 seasons in the open ballpark. an upper deck expansion was added in the 1970s. there are two world series played at the stick in 1962 and in 198 9. during the 1989 world series against the oakland as they were shook by an earthquake. candlestick's enclosure had minor damages from the quake but its design saved thousands of lives. nfl team the san francisco 49ers played at candlestick from feign 71-2013. it was home to five-time super bowl champion teams and hall of fame players by joe montana,
jerry rice and steve jones. in 1982, the game-winning touchdown pass from joe montana to dwight clark was known as "the catch." leading the niners to their first super bowl. the 49ers hosted eight n.f.c. championship games including the 2001 season that ended with a loss to the new york giants. in 201, the last event held at candlestick park was a concert by paul mccartney who played with the beatles in 1966, the stadium's first concert. demolition of the stick began in late 2014 and it was completed in september 2015. the giants had moved to pacific rail park in 2000 while the 49ers moved to santa clara in 2014. with structural claims and numerous name changes, many have passed through and will remember candlestick park as home to the legendary athletes and