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City we have solids we have to haul outside the county and the intermit that must be hauled out. If we didnt have this service we would have two days left of holding and the sludge would pile up. The puc would have this contact where the trucking has provided the services to date. The resolution before you exercises a 2 year option for the trucking by rem this resolution it will be preventing a gap. We ask you move this forward and happy to answer any questions you may have colleagues, any questions. Supervisor avalos. Yes, thank you for your prevention. There was a lawsuit that was done by s and s trucking to the city and i believe it was based on it has been resolved because we got the contract and i heard the concerns about s and s not paying prevailing wage and their truckers are dependent contractors. Im wondering what assures we have that this company is meeting the standards we have as a city. So we have s and s truck but we have ron to talk specifically about this line supervisor ron from the city attorneys office. The first one was about a lawsuit there wasnt a lawsuit at first, it came to the board to be approved and that does not get approved and a s and s sued and under the charter provision 918 b this cowered had no authority. This extension would put it it above the authority so the lawsuit is an old matter. As for praefl wages at the time the contract was under 21 c 5 for hall and a sludge and it required that the employees be paid praefl wages. The law changed that any individual who hauled be it not be applied to other contracts it is amended and only applies to new contracts so it wouldnt apply to old contracts only new contracts and do we know the magnitude of people who are doing hall that perhaps are not paid praefl wage that are independent contractors. I believe that is the contractor. So what we do know theyre meeting our exceptions even though their providing a service theyre meeting our l. B. E controls and thats why were here to ask for an extension to incorporate that into the next contract. I assume that s and s would be responding to a future r s p. So they want the track record thats the assumption theyre here to answer any of your questions. Thank you. Well, if theyre here i have a couple of questions supervisor avalos. If there are s and s trucking folks here im the vice manager ill be happy to a answer questions. While i was the administrative aid it was knoll people in s and s company who had done the working with work and this is clearly a new small business. And people who had that extension so my concern moving forward is the standards people are paying the praefl wage is that something you want to make standard and youre continuing to meet with the future work thats something weve met with the work. Im not about the new rules for future contract. I know that the d i r has set the standards for the prooefl wage. Several publications that owner operators are not included from the wage but if youre paying all the money youre paying to the truck and it equals the praefl wage the driver should get that. It would seemed to me that the use of owner operators or independence is an issue for the city or this board. I remind you the city has in place a goal an l. B. E goal. The experience was met only by owner operators that were l. B. E for the city. To say were users owner operators and thats not the goal and to have the l. B. Es meet the the goal is a double standard. The goal was 7 and a half percent and 20 to 25 percent. So moving forward if you would say is s and s meeting the goals i would say yes and a okay. Thats critical when it comes to a new contract well have with the city and to the extent you were able to satisfy that you have a great advantage to be awarded the contract. I want to make sure its all even were meeting our l. B. E and wage goals. But thank you thank you. Colleagues, any further questions . Supervisor mar well, i see that donna is here from the labor enforcement. Can you address that the prooefl wages and the double standard i think its possible to meet both. Okay. Colleagues any further questions. Okay mr. Rose can we go to our report, please yes. Mr. Chairman on the top of page if of our report in table 2 as of september 30th under the influence puc had expended 2 million plus not to exceed 9 million exciting to haul tons of solids and brick for the Treatment Plants of an average cost of if dollars and 0. 60 per ton. On table 3 based on nature costs the proposed contracted is s and s trucking is expended for 2 additional years the puc current estimated total of 2 million plus in costs. With a contingent of a total not to exceed the costs it 13,500,000. We did discuss the policy aspect of praefl wage requirements on page 25 and because of that issue our recommendations on page 26 we recommend that you amend this resolution to confirm the pucs tension not not to extend the s and s contract and you approve the proposed resolution as amended. Ill add this to your option and if you dont accept our proposal the praefl wage will stand thank you mr. Rose any questions for our budget analyst. To the puc any remarks to those questions well comply. Anyone wish to comment on this item . Ace washington. I would be remiss if i didnt come and speak for s and s as supervisor avalos has a long history before you came on board. I can testify you guys know im up here recollecting all the time but with my history with s and s when they were involved that the human rights commission. He is has been in my opinion a very valuable part of employment in San Francisco. Although its not also been the situations but i can say that the experience dealing with some of the truckers theyre very satisfied with his performance there with s and s. I as a person in the community have been involved that the history i can stand up here with an open mind in my opinion he is s and s trucking is forthcoming and working closely with the truckers. Although i have not been working with them but im in support of s and s thank you very much. Any other members of the public wish to comment. Seeing none, Public Comment is closed. Colleagues, can we have a motion to accept the motions from the budget analyst we can do that without objection. So moved. Mr. Clerk are there any other items and a mr. Chairman, i ask they have the amended resolution to us by 9 00 a. M. Excuse me. We have a request from our clerk you provide the contract. The resolution to us tomorrow more and more by 89 a. M. I believe im working with our department and a mr. Clerk any other business before us. No, thats it and that concludes our agenda for today. Thank. Good morning everyone. Welcome to the San Francisco board of supervisors budget and finance Committee Meeting for november 20, 2013. I am supervisor farrell and i will be chairing this committee and joined by supervisor avalos and we will joined by eric mar and i want to thank sfgtv and as well as the clerk of the committee linda wong sorry, madam clerk do we have any announcements. Yes mr. Chair. Please silence all cell phones and complete speaker cards and documents to be part of the file should be submitted to the clerk and will be on the november 26 agenda unless otherwise stated. Great. Can you call items one and two together. Item one is sale of general Obligation Bonds General Hospital improvement not to exceed approximately 210 million and item two is appropriation General Hospital improvement general Obligation Bonds fy 20132014 authorizing the issuance of these bonds and earthquake safety for the hospital and Trauma Center for fiscal year 20132014. Okay. Thank you very much. Do you want to speak first on the item. Good morning i budget and finance committee. The item before you is a resolution to authorize the sale and issuance of city and county of San Francisco general Obligation Bonds and amount not to exceed 209,955,000 and the supplemental proceeds the same proceeds to finance the cost of the General Hospital project. I will give a introduction to the financing and talk about the bonds and there are representatives from sfgh and dpw available to answer project specific questions. So in 2008 the voters approved proposition a and not to exceed the amount of the General Hospital rebuild and of that amount some funds have been issued and leaving 209,955,000 unauthorized and unissued. This is the fourth sale of bonds of proposition a for the hospital rebuild and contribute 207 million to project costs and additional 1. 9 million for cost related to the issuance of this discount and citizens general Obligation Bonds oversight committee. Sebt service on the bonds if approved is approximately 18 million a year over the 20 year life and 151 million in Interest Payments and three 61 principle and interest over the years. The three has two constraints on the issuance of these bonds. The first is the charter limitation of amount owed at any given time and 3 of assessed evaluation. If approved by the board that limitation will still be maintained and the bonds will cause that rate to increase by 0. 1 2 to 1. 2 two and the other constraint is the property tax rate for the Capital Planning committee if approved that rate will remain within the constraint of the 2006 property tax levels, and is included in the fiscal year 14 tax rate for geo bonds and finally the resolution approved finance documents willing the official notice of sale and notice of intention to sale that announces provides legal notice of time and date of the sale and the issue nsance and approves the statement that provides investors with information concerning the bonds themselves and risks and securities and financials for the city and we intend to include the audit when its available for investors [inaudible] that provides that notice to the investors as it occurs. I am happy to answer questions and we have other representatives here also. Thank you. Dpw do you have anything to present on this item or anything to add . If you dont thats okay too. We dont have questions at this point. Mr. Rose, can we go to the budget Analyst Report please. Yes mr. Chairman, supervisor avalos on page six of the report we report that she has advised that the not to exceed amount of 209,955,000 are project to have annual Interest Rate of 6 over 20 result in the debt payments of this and 210 million in principle and the rest in interest and the annual estimated Debt Service Payments listed also. On the bottom of page six we report with a Single Family residence and assuming a homeowners exemption of 7,000 the average annual additional property tax is payable to the city would be 52. 61 per year. If the board authorizes the 209,955,000 in the series 13 bonds to be sold. However, according her any increases to the property tax rate due to the sale of the bonds is off set by decreases to the tax rate due to the retirement of other general Obligation Bonds. We recommend that you approve both the proposed resolution. As well as the ordinance listed. I am happy to respond to any questions. Thank you mr. Rose. Colleagues, about questions. Supervisor avalos. Thank you. Its a question not necessarily for mr. Rose but like we have done on occasion with the Water System Improvement Program it would be good to get a status update of the hospital rebuild project and i can introduce a hearing for that just to see where were at in terms of that project and how were meeting all of our time line and financing goals or maybe you can provide a short summary now. Good morning. Im with the department of public works. I am happy to give you an update on where the project is right now what we have accomplished to date, so its been a busy five years since the prop a was approved in 2008. I have maybe a few slides i can give you. I have it set up. So if you look on the screen theres a couple of milestones that we have accomplished to date. We have been able in 2009 complete the phase one site utility successfully as well as finish all of the structural work and the construction of the mat foundation, the Isolation System for the building as well as the entire structural framing as well as the currently in progress we are working on the skin of the building basically trying to enclose the building which is working in conjunction with the building itself built out so what we call in the increment four interior build out and essentially makes the building functionally so we have been doing for the last five years getting the structure standing. There are photos of what the hospital currently looks like. On the outside it looks completed but in the interior we have a lot of work to do and thats our object objective for the next two years to get through this completion in may of 2015 is to finish the interior build out which is the mechanical, electrical, Plumbing Systems as well as finishing the skin of the building and making it functional. I am happy to answer any other questions. And in terms of meeting our goals around maintaining costs how are we doing in that regard . Based on the current cost trends in the schedule we are on schedule with our substantial completion date of may 2015, so we are tracking under the entire bond which is 887. 4 million and we will be under that amount at this time. What is the contingency on the overall project . Overall roughly 30 million for the entire program. And do we expect to be dipping into that or how is that looking at this point . Yes. I dont have the exact numbers but over all we believe we will be under that amount. And when we have a completion date, may, 2015, is that ready to actually start taking in patients or do we actually have to having that you know, furniture and fixtures . When do we expect that all to be completed and have it operational . So after the substantial completion date that is shed by the authority having jurisdiction for the project and the next eight months because theyre licensing from the state of california so a lot of that is ff and e as well as the transitional planning and implementation thats primarily through the ssgh facilities and making that happen and i think yeah, so if there are any other questions in terms of date for the hospital being fully operational . I am sure we have a schedule for that. Can you say what that is . I will defer that to terry. Thank you. I am terry [inaudible] with the department of public health, Program Manager for the hospital. The transition plan is happening right now we have engaged with a contractor. Were walking through the paces. We have a targeted date of early december early 2015 to move in. I think the official date was december 2015 and a one day move of the entire hospital on december 28 so were trying to bring it back to early december sore either the first or second week in december. Were trying to find the sweet spot between thanksgiving and christmas that are that but those endeavors are happening right now and they are meeting with a subcommittee and report to a Steering Committee and review the tasks and critical timelines for each committee and that is managed at this time. We have a two year track on that. Great. Thank you. Any further questions . Okay. Thank you very much. If nothing else we will move to Public Comment. Anyone wish to comment on items one or two . Two minutes. Good morning supervisors. I am douglas yep and i did survive working 20 years at San Francisco General Hospital. I would like to first thank supervisor avalos for past questioning. I think theyre relevant questions that we need to put on the record and obviously we will see what happens when its officially opened, and also i would like to note for the record whether the new General Hospital would include any facilities for the dialysis unit which had recent hearing here at city hall . I think that needs to be put on the record and we will see how that turns out. Now, lets put it this way. I am looking at the agenda i notice there is only one sponsor. If i was going to nearly spend 210 million the main question is do i trust the sponsor . Its pretty obvious a certain person trust the sponsor and we saw what happened to him, and then one of his best friends is about to lose one of her crown jewels, and im asking do you trust the sponsor . And for the record i dont see any supervisor listed as a sponsor for either items one or two. If it was such a good deal i should at least see one name and seeing no names i have a feeling its not that good of a deal, so to summarize San Francisco General Hospital needs a new hospital, but lets put it this way. No matter how good the facilities its always comes down to how well its used and without a proper audit of General Hospital, without a proper audit of the department of public health, theres always going to be instances like the current fiasco at General Hospital. Thank you very much. Any other members of the public wish to comment on these items . Seeing none Public Comment is closed. Colleagues we have a recommendation from the budget analyst to approve the items. Can i have a motion to move it forward without opposition. Madam clerk can you call item three. Item three is an ordinance authorizing the office of Workforce Development to accept a grant for 500,000 for the first source hiring program. Okay. Thank you. I believe we have oewd here to speak on this item. Thank you supervisor. Thanks for being here. So as of july 1 of 2013 oewd took over the responsibilities for work force work force component associated with mission bay including both job placement as well as compliance. Part of the terms that were in place starting back in 1998 that there were financial there were resources coming from the Development Group in three installments. There is the first of those installments. Triggered for each million square feet of commercial of leesable space in mission bay, so apparently at the time we were unaware of these resources but we did find out shortly after that first threshold had been triggered which comes with 500,000. We received the check two months ago and are now before you to give me the opportunity. These resources would go to support two new importantly aceons positions and one compliant officer 2292. Colleagues, any questions . Okay. Thanks very much. Thank you. We dont have a budget Analyst Report on this item so i will move to Public Comment. Anyone wish to comment on this item . Seeing none Public Comment is closed. Thank you for being here. Could i have a motion to move this forward with recommendation . Shcial moved. Madam clerk can you call item four. Item four say resolution approving a waiver of the payment in lieu of taxes through 19911992 to 20132014 from the housing auth

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