equipment. what i was working on that district station, you would see a few cars in the parking lot of the station. i would tell him that we are not supposed to use our commitment to capacity. there needs to be something left over so that when the earthquake happens and we call everyone in, there is a car, a radio, some means to provide the services that we asked them to provide. if each car is being used 24 hours a day, seven days a week, there is nothing they can do but stand on the corner. nichols is a huge cost, it is expensive. it will be adopted by july 1. the final budget will be adopted in august. there will be spending authority in september if you are lucky. the lead time is about nine months to get the vehicles. we descend them to central shocks, please send them out to vendors. and we have somebody else put the cages and. it is a very long process, and it is not? . they have the capacity to do 50 cars at once. if it is really something that we need to prepare for as we hope to hire new accounting class's and change the line for it, the next thing is training. the old adage that training is expensive but not training is even more expensive. historically, we have worked very closely with city college, a mutually beneficial relationship. because of the budget crisis in the budget cuts, city college's have to stop their affiliation with us. the advantages of being affiliated with city hall was severalfold. there was oversight by them, the education provided to officers. that was a very beneficial thing. officers receive units for doing that. the way the city colleges fund is through the state home. they get money back for their students, and we had a revenue- sharing agreement with them. the revenue that we got as we had several academy class is was significant. that was money that the general fund did not need to provide. the fact that we got money from city college meant that we go to the budget for that training costs. we're going to have to look to the general fund to augment and to supplement the budget that we currently have. that will be a big challenge and a big expense. finally, i think there are probably more challenges, but on the radar this year right now is america's cup. the first race begins in august. the chief is working very closely with the mayor's office of economic development and is working closely with the event organizers to come up with a staffing plan along with of words of 30 other law enforcement entities from the coast guard, the fbi, who knows who else. it is a huge undertaking. they anticipate the need for approximately 120 officers to provide security and police and out along the waterfront for the 13-18 days. you want to do it with a mix of officers coming back on a 90-60 basis. also on duty officers can work. not only is the cost of putting those folks out there, but the cost of updating backgrounds, the cost of uniforms, trying to make sure all of those things that are necessary are out there. again, this will be a tremendous challenge. >> i know that the event organizing committee is charged with raising between the local committee and the broader committee more than $30 million, a portion of that for security purposes. do we have an understanding with the organizing committee about being reimbursed for our expenses? >> we have an understanding that they will provide some reimbursement. i think the negotiations or discussions taking place about what that actually comes out to look like. >> the presidio is going to be tremendously impacted, the national park service -- as they are going on. >> chief dudley has been meeting for months with more people than you can sit around a table. having the federal folks come than and another large event. we have a good relationship with the federal government. i think the resources have yet to be determined. >> i assume those negotiations are going with the neighbors thought -- the mayor's office. we knew when we put this big and that it would be a position on the department. on the table making having those discussions just to have it be borne exclusively by this department. >> something that we all hope for. so just the budget timeline, a over the next two or three weeks, we will be having these discussions with the mayor's office and seeing what they say. the chief will be speaking with the mayor as we tried a moved forward. >> you said you heard today from the mayor's office about what they were asking? >> anyway, the initial review on the first come back on the eighth or the final discussions, that recommendations. they were doing in the mayor's office by the twenty first. but with all the paperwork and did injuries, -- and data and trees, and we start having those kinds of discussions with the board. that is kind of the time line, and the numbers that we got this morning, $469.2 million. they have asked all departments to be reductions of 5% discretionary spending. plus an additional 1% in gravity reductions. this represents $5.7 million for the first 5% and an additional $1.3 million in the staffing reductions. in our desire to meet the charter mandate of 1971, this would be a tremendous challenges. that is what these discussions will be about. with that -- >> last one, i promise. >> presumably, the discussions you're having over the next few weeks will be what goes into that for 69 and the academy class'es, how you apportion that 469. >> the mayor's office has come up with the five-year staffing plan. >> with reference to hearing about the 5% or 1%, i heard do we have a ready reserve so to speak of retired it will provide a straight up hourly rate. where somebody very experienced we can put back out on the street to hell other officers. we need to explore that. >> we're working with a way to, with horatio of who will work america's cup. the reason they call the 960's, they are allowed to work 960 hours. you wouldn't use his for america's cup. we would have them available to do other things as well. it is renewable every six months out of temporary salaries. >> i believe 960 is one year. >> i am glad to hear that is happening. i hear from officers that the cars are in really poor shape. is there any way we can get cars from other city industries? there are a lot different than someone in the water department. we need cars for emergency situations, is that a possibility. is there anything we can do to remedy that? >> if you went back to the pie chart, the services and other agencies, they would not come free. we would be billed for those cars, and taking the other used car, you are buying that with what ever problem the used car had come and gone. commissioner kingsley: thank you for stepping in so quickly and picking up his ball, being here tonight to get our minds focused on the important issue of the the part that's budget. just two questions. we have 293 vehicles, how does that compare to what i believe the number of vehicles there should be in running order for the present staffing? either under that or any other type of measurement. >> i don't know that we have done a study, there are a lot of variables that have to be factored in. one of the issues would be the condition of the car. if it is going to go down and needs service, he would probably be eating less of them. to the degree that the fleet is aging, it is down more and have the factor that can. right now, it is working. one of the reasons is simply because staff members are going down. part of it is, we can certainly come up with calculations about if we have a certain number of officers and the car is working, operating 50 weeks a year, how many cars do we need? and come up with some policy decision of how many we should have, sir plus. it is certainly possible that come up with that. much like the staffing number, it is variable depending on the city's ability to finance these things. going back to the early 2000's, we were buying 45 unmarked cars a year and 55 marked cars a year. that is one of the reasons i think the fleet is still functioning is that during the good times, we did ok and we were able to the bank some of those and not use those. initially, we're putting cars out for the officers of the academy. now, as opposed to the cars being available for recruits, they are going back into defense of the fleet and being used because we need them. right now, we are working. we can certainly work at numbers like that. this process every year to suggest that cars are not the equipment expenditure we need for two or three years, but it is simply built into the budget and we come up with that type of arrangement and said that we are buying 30, 40, 50 cars a year. so there is some consistency so we don't go through this cycle. the argument that i give what i argue with the budget office is, we don't ask the other city employees to go back and fight for their office space every year, we want to say that this year, should we have six instead of seven? our officers are asked to suffer through that. that is where they do their work and respond to calls. and we shouldn't have the budget for that every year, it should be built into the budget. commissioner kingsley: it certainly makes sense. another question has to do with the training. some of the funds were coming from a share of revenue with the city college. where do the funds originated and the flow in the city college for the people participating? >> in the community college district parcels that out to the various community colleges based on per student per instructor hour. as the satellite of city college, we would get a portion of that revenue to support the training program. >> now that we are not affiliated, is there no way we can happen to the funds? the funding that the state gives the city college is coming for all students, not just for academy students. >> correct. the issues that the number of students has been capped. the state is saying that we will provide you funding for a certain amount of students, and we're the y. they have x, they need that money to support their academic activities. we are extra. commissioner kingsley: you don't think there is any way that the police department because of when we provide the educational services, could go to the state directly for funds? >> i believe there are sections in the education code that would require the community college district, but i dunno if that is something the city is researching or working with. we're looking at alternatives to find ways to make that happen. we don't have one as i stand here today. >> thank you for your presentation. i heard there is a possibility that this contract and relationship can be renewed? >> from the city college perspective, i think it is really an issue of funding, what their funding stream is. how many students are allowed, how many students are cast out. from what i have read in the paper, the state budget has done significantly better than it has in the past. i don't imagine there will be additional revenue flooding to the community college district. for most of the educational decisions, as the economy is bad, more people take the opportunity to go back to the school board and enhance their skills, get new skills, students and that perhaps would go to the work force, it is not available to them or decide to pursue that education. there is more demand on city college, and of the revenue for them has been produced. >> my second question was about language access. when it comes to the budget issues, it normally doesn't go into that level of detail in terms of the money needed for felons, upgrading technology, training for officers. when we asked about language access, the responses that it is not in the budget, so i wanted to suggest that to the extent you can any relevant documents, include a piece on language access to make possible so phones for officers. my guess is that the board of supervisors could see a very strong policy for it. the estimates we heard a couple meetings ago was in the tens of thousands of dollars. pesident mazzucco: any further questions for the capt. regarding the budget? think you very much, capt. goldberg. please call line-item 2b, please. >> 2b, mr. president occ director's report. pesident mazzucco: time for your budget. >> good evening, pesident mazzucco, members of the commission. you have a report from the occ that outlines the city and county of san francisco budget process, elaborated on in some detail. and attached to my report is the budget schedule. the final budget submissions are due to the comptroller by february 21. the mayor's office of budget instruction directs the department to prepare a two-year budget with a 5% reduction for each budget year ended 2.5% reduction of general budget. the targets are $125,000 for 2012, 2013, and the same amount for the next budget year 2013- 2014. and contingency target -- additionally, each department should use full-time equivalent positions for five years of the total of 5%. in my report, i indicated 5% of that would be nearly two. however, in reaching the budget target, the budget office always backs out the mandated positions based on sfpd staffing. so, in fact, the number wouldn't be two fte's, it would be one. we would back from 34.75. moving on to the occ's baseline budget for this year, 3.8 million dollars in personnel costs. similar to the police department's percentage, personnel comprised 89% of our budget. 34.75 positions, the remainder of the budget which is almost half a million dollars is for operations. $380,000, 64% is for rent. >> production target for each fiscal year, there is no with no room in that part of our budget. >> the salary fringe benefits of the clerical position is $70,000. the salary plus fringe benefits is $117,000. but i have not identified specific positions for reduction. and as i've pointed out earlier, in addition to those target amounts, the reduction target amounts, the occ would have to reduce its ft by 1% a year for five years, the ability to another position that would need to be eliminated. looking at the challenges, the city comptroller identified the challenges in the 2007 recommendations for process improvement. as i pointed out to you during the third quarter of 2011, the division notified us of a follow-up audit. we also addressed those issues before a supervisors' committee meeting. the auditor has notified us that they will conduct the second follow-up audit beginning sometime next week. in responding to their notice that they would be doing the second follow-up audit, we indicated that there were three remaining audit recommendations that we could not address because we did not have the money to do so. just briefly, the recommendation was that we complete investigations within nine or 10 months. to do that every year, because of the inadequate staffing, it is unable to do that. another challenge that we have had is in maintaining its database and hardware and software. it has been slowed by an adequate information staffing, information systems technical staffing. we have 1 business analyst that must serve 35 of our employees in addition to producing evidence and documents and an electronic form. maintaining and enhancing our internet, the web site, and the database. the 2007 comptrollers i've found that the b