everyone to open a credit union account. the advisers said several new clients had mentioned supervisor avalos. i wanted to thank supervisor avalos for the suggestion and tell you it is working. since participating i have heard many stories about foreclosures with homes sold by the bank a day after promising to work with the borrower on a modification. i have heard no stories from banks about how they have adjusted the mortgage and worked with the borrower. we need to work on correcting this imbalance. based on a sensitivity toward presidents who have suffered financial loss i feel it is more important to evaluate banks on the merits of their performance instead of their promises. i support reviewing many financial institutions based on their record, especially noting predatory lending practices and other abuses before permitting them to function as a bank for the city. there should be a code of ethics -- ethics that institution must adhere to once they're selected. thank you. supervisor campos: thank you. -- supervisor kim: thank you. >> and want to speak in support of the idea of a municipal bank. it builds on a long tradition of benevolent societies and mutual aid societies where working people in ethnic communities pooled their resources to help each other out in a tough time whether unemployment, the birth of a baby, funeral costs and to think about bringing the resources of the city to bear in that kind of project. i had a question listening to the testimony. it seems the treasure was saying we would ask these questions about factors of social responsibility. it would not be required if they answer them or if they did them, they would be extra credit -- there would be extra credit. i suggest it is part of what is required in this process as it moves forward. thank you. supervisor kim: thank you. >> good afternoon, supervisors. i am with the green party and the local grassroots organization and our city. standing in strong support of a municipal bank and localized socially responsible banking. especially in municipal bank. we need to remember that during the big financial crisis, canada weather that storm much better than other countries. that is the power of the government bank. i want to talk about a specific thing, an example of how this could help us. right now under the redevelopment agency's, we're working toward a transition toward our handling of redevelopment processes. we use this weird wasteful mechanism called tax increment finances which means you are borrowing from your children's future from taking tax money that would have gone to the general fund and giving it to developers to encourage them basically to puff up their real estate development project better than they should be and more market rates than they should be and puff of that financing. if you have never seen the movie the corporation and you have learned about the idea of externalizing, that is an example of externalizing the costs of the corporation does not have to pay for if we had a municipal bank that was doing direct financing, we could avoid some of that tax increment financing and even if we felt we had to do some of the tax increment financing of the municipal bank would get some financial benefit from that instead of big private wall street banks. i would also second what others said about this idea of giving extra credit for answering the questions in a positive way. it sounds like good faith efforts. we need to aim toward requirements on these things so that we know we're getting a bank that will do what is right for our community. thank you. supervisor kim: are there other members of the public who have not spoken on these items would like to speak? seeing none, public comment is closed. supervisor? -- supervisor avalos? supervisor avalos: thank you for all who commented. i agree. i think that it will be wonderful if we could make the requirement to provide information, we could make in the rfp to require information if it is just an extra credit, i do not believe we will get the bank for the buck that we can get and i would agree with the last speaker. i was thinking the same thing. it sounds like good faith efforts and that is not quite have been able to achieve the goal of -- they saw to achieve. i would like to encourage the treasurer to consider that. it has been almost 10 years since we had our last rfp for our transactions for our city. i think it makes a lot of sense that we could use our other power of our purse strings to be able to leverage greater compliance, at least to get the answers on these questions. i believe that -- we have crafted these questions in a way that financial institutions should be able to pull off this money in a fairly easy way. it is not like we're asking things that will be esoteric or difficult to find. and so to be able to comply with that, if the banks want to do business with the city and county of san francisco, it makes sense they pony up this information. also, we have heard from several folks today, a small fraction of many people who are affected by the foreclosure crisis which does exist in certain neighborhoods. specifically in the southeast sector and the southern sector. wells fargo is one of the banks that have been responsible for that. i think we should be able to craft an rfp that can address their need to provide information about how -- what they are doing to support local residents or not. how -- with the record is in terms of helping households deal with the foreclosure crisis. i would like to encourage the treasurer to do that. i really support his efforts in some many ways that he has looked at our economic system and how we can help local households to be stronger with their financial stake and -- in their future. looking at good investment practices, but i think there is one area that he can make it big difference as well. i would love to encourage the treasure to follow up with that and we can talk further as we continue before the end of the week. supervisor kim: thank you. supervisor kim? -- supervisor chu:. supervisor kim? supervisor kim: it was an issue i was interested in and it is great to find -- getting hearing on the research that has been done thus far from our budget and our treasurer's office and many members of our community. i want to appreciate everyone who came out to speak. the support for this is much wider and broader. we have state laws that we need to do with that prevent us from starting our own banking as many folks had hoped we would. i want to concur with the supervisor and members of the public. i was hoping we could figure out a way to make these questions mandated as part of the rfp process. i am sure many of the banks that go through the process will want us to fill out this questionnaire in hopes of enhancing their ability to gain business with the city of san francisco. i do think it is important we learn about the activity of our banks. thank you. supervisor avalos: i do want to thank the community partners and my staff who are working on this project. seiu, the california of the investment institution, and many others. thank you for your work, some of you were here today. i want to thank erica and my office. she will soon be leaving for a bit. i want to thank her and others on my staff. i would like to moshin this move -- motion this move forward without recommendation. i could reissue a new hearing request. my motion would be to file item #3 and to approve item number four with recommendation. supervisor chu: we have a motion to file item #3 and to send forward item number four with recommendation and that motion has been seconded. i want to thank the treasure for all his work and for staying through the hearing enter the public comment on this item. it is an important issue and it is a big question for us how we handle it. i do want to emphasize for my point of view, it is important for the city to make sure we are investing with and we're working with a sound financial partners and people can make sure all transactions are safe, secure, accounted for. that is what our taxpayers demand of us. that is what our residents demand. as you are looking forward with any new efforts or any options, i hope that will always be paramount in your mind. that is absolutely what we have to make sure we're watching out for. and so we have got that motion and we can do that without objection. [gavel] do we have any other items before us? we are adjourned. new
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