Transcripts For SFGTV BOS Budget And Finance Committee 51816 20160519

All electronic devices. Consent calendar we have relative a long agenda well get to it call item one. Declaring the intent of the city from an expenditure of bonds into submitting an application for the Allocation Committee for the issuance of mortgage Revenue Bonds not to exceed 419. 77 south van ness avenue item two the resolution for the city to grumbler procedures from the in depthness for the Allocation Committee for the Residential Mortgage revenue bond not to exceed one hundred Million Dollars plus and the intent of the city for the in depthness and submit an application to the california Allocation Committee for the permit the issuance of market not to exceed 76 million for lower street and sunnydale avenue and next the expenditure from the bond in depthness and submit on application for committee for the mortgage revenue bond nouchld not to exceed waterproofs and 11 million and item 5 the tints of the city to have an expenditure of the future in depthness an application to the california debt Allocation Committee for the Residential Mortgage bond nouchld not to exceed 20 million for 6th street street. Thank you ms. Hayward welcome. Thank you very much good morning chair farrell and commissioner tang and supervisor yee im for the Mayors Office of Economic Workforce Development and her to present endowments to fund two new Development Projects into rehabilitate 3 projects so ill run to the projects quickly want to note those 0 conduit financing not require the city to purchase any of the funds to the repayment of the funds the first project is for the concealed goodwill on mist and van ness a mixed use project and the site is currently as many of you may know commercial space no displacements of residential tenants this project is before the committee for the second endowment because the costs are up since the first endowment and blocks 1153 Reading Street Customer Service low income families and former hopeless veterans and the 3 rehabilitation projects on the court 92 all affordable building on laurel street in Visitacion Valley the dlort project one hundred units located in the tenderloin at mcallister and the sro in 6th street in silver one and 40 units in the sro building for all the projects the sponsors will submit an application within 4 weeks and if awarded theyll return to the board of supervisors for approval for the bond issuances that concludes my presentation. Im available to answer any questions. Thank you, thank you very much colleagues, any questions or comments mr. Rose any reports on one through 5. Mr. Chair, no fiscal impact on those items. Companies anyone wish to comment on item number 1 through 5 seeing none, Public Comment is closed. All right. To the call of the chair move through one through 4 i move we send it to the full board with a positive recommendation. Motion by supervisor kim and seconded supervisor yee madam clerk item 6. For the financial city for the mayors director the budget analyst and the controller to report. Thanks very much we have ms. Micro from the Controllers Office to report on this item. Good morning, supervisors michelle from the Controllers Office here to provide you with some highlevel points from the status report overall were projecting an ending fund under 400 million that is an, an improvement from the last projection of 73 million most of that in the form of better than expected prashg revenue and revenue and salesforce from the department of health as well as the Human Services agency were not at this time project by project a positive to the rainey day reserve but an economic 5. 9 percent at the end of the year with a start of 10 percent ill highlight 3 welcome questions on any of them property tax above budget for the same reasons we talked about the accessory intraoral changes in ownership and construction weigh collecting the back year taxed on that dramatic decrease in property tax with the assessment board of appeals and reducing what we need to refund for the appeals and other things in prashg about business tax revenue for 2015 strongly in private payroll over 13 percent is contributing to the good news and offset slightly by a shortfall in Real Property transfer tax that reflects with equal our projection for the month of may and june so at this . 50 million down from last year but well be paying attention to this for the next couple of months and as you may know a portion of that revenue increase is allocated to the baseline 13 million the department does the change from the last report in Public Health department the biggest which was in Public Health department is better than projected Mental Health revenues in the general fund but also at laguna honda hospital the governor reversed the prior Year Health Care it was retroactive were looking 50 million improvement. Excuse me do you have a handout or anything in the package. Sorry i have them right here. Were open slide 5 apologizes for the and the second thing ill mention in terms of departmental projections the salesforce with the Human Services agency and thats about a 6 million improvement from the last report. A quick update on supplementals with the general receivers 5 point plus the Million Dollars with the and approved the reproposition to Fund Overtime in 6 departments an overall deposits are down where we projected at the budget that is mostly due to the declines in tax revenue. As we do every time this year well, looking at a couple of sensitive revenue resources we get more information that is transfer funds and the business tax and supplemental property tax there continues to be a lot of revenue fluctuation with the dph as we mentioned due to the changes in Affordable Health care act it includes the projections for special revenue funds month of which have been going balances at the yearend with the expectation of water and wastewater were dlooib in water sales are not keeping pace with the expenditures so overall the balances are dmrooin in that entries i would just note from the this point until june one and during the budget deliberations we will looking at as you may know some of the key Revenue Sources hi voluntary i would from tax revenue from the good or bad 50 to 55 percent offset by decreases or increases to the destable reserve that is due to the volatility and well be providing projections to the mayor on june one ill be happy to answer any questions you may have. And thanks virtuosa question just so were clear about that maybe i dont see a slide on it an updated after the 9 months with the deficit going into deficit is that note called out. Its not on this page. I believe that is 173. 4 million over two years. Over two years. Okay. Thank you. Colleagues, any questions right now okay. Well open up for Public Comment anyone wish to comment on item number 6 . Seeing none, Public Comment is closed so colleagues would i ask that we continue this to the call of the chair in case we need to call this motion by supervisor yee and supervisor tang without objection thank you very much mr. Clerk, call items 7 through 10 are that the resolution kruger with the controllers vacation that the approved projects approved for a lower cost by the contractor by the city and county committee and the mayors project for the 20162017 and 20172018 item 9 proposed budget and proposition ordinance appropriate all receipts and estimate xchz of may 2nd, 2016, and 20162017 to 20172018 and item 10 proposed for that elaboration the salary ordinance for the positions and we propose the budget for the selected department as of may 2nd for fiscal year 20162017 and 20172018. Okay. Thank you very much so well status off with item 7 and mr. Rosenfeld your controller will speak on that item. Supervisors ben controller good morning every year as part of progress the charter requires the board of supervisors to define the services be performed cost effectively with contractors rather than city staff this is prop j what you the item before you are reoccurring prop j that are grand for many years at the departments over the next couple of weeks so parking operators and shuttle buses and other Airport Transportation and transit at the mta and security Janitorial Services at the port you can certainly talk about them as the departments come up and typically new authorized 0 prop j has been of more interest and contentious but this is continuing services that have been contracted for many years. Okay. Thank you mr. Rosenfeld colleagues, any questions on item 7 . Okay by the way, well save Public Comment until the end so with that, were to go start with our very well hearings and we have 13 today so why want get going well start off with the Unified School District i believe either mr. Rosenfeld or the Unified School District was one of each i believe if youre not ready we can certainly move to a different one yes. Good morning a very small appropriation from the citys budget in the Unified School District and this is for the county of office of education every county has a county of education provides Technical Support for the district this is the county of San Francisco support it is unchanged to many years. Thank you very much any questions colleagues okay. Next up the board of appeals ms. Goldstein is here. If any other Department Heads have handout distribute them in the that would be great. Okay. You should have my handout i hope. Chair farrell and members im Cynthia Goldstein the boards executive director. Of the board of appeals United States of america the board is the citys final arbiter of disputes issued by a wide range of other departments we are our mission so to create an impartial forum those disputes maybe resolved im trying to get it up give me a second. What id like to take a quick minute to update you on the both sides experience and give you the Budget Proposal for the next two years on page 3 of the handout the volume over the past 10 years our projection we will come up 29 percent higher than the average our increase in appeals a 3 clusters of appeals not receiving poisons in group but 35 by the promotion you might be unanimous a familiar with that protesting the signs and we have appraisals for the tree removal and park merced and next month 09 filed by the academy of art with the notice of violation by the Zoning Administrator. So if we took out the 3 groups of appeals well see a volume that is similar to our regular experiences the next slide will show you a picture where the boils come from as typical the majority of the cases from land use issued by the Planning Department and the department of building inspection and the Zoning Administrator that represents about 76 percent of the appeals weve heard year to date and the next Largest Group those from public works will half of which were tree removal and the other a variety of other donations or decisions that public works with the food facilities and Wireless Site permits one thing that is interesting of the Building Permit that were appealed 17 percent have been related to land or tenant disputes with the removal of unit that is the same last year but definitely higher than we normally see and turning to the budget there are two source of revenue 5 percent from fees a paid by people that come to our office to file appeals 95 of the budget comes from surcharges by the departments that issue the matters that are appealed and the rates of those surcharges are tournament to the work every year the Controllers Office does an naturals to see what the rates need to be adjusted that can be done up at dbi but anything else needs to be brought to you with legislation as far as the expenditure for that elaboration the next couple of years small increases 4. 6 percent 42,000 in the first year and under 16 thousand in the second all 9 increases are outside of our control and associated with things that are mandatory increases like salaries and refrigeration benefits our rent and the share of upgrading the Financial System and chair farrell i know youre interested in the overtime were looking at the small there in that line item because the increase no salaries and fringe we use overtime to pay for people like myself and Board Members and historically flooift that so we expect that our revenue from surcharges will cover the increases we dont on intersections there is a need to generate the income in the last 3 years weve had surplus and projection a surplus in the coming years and collecting that in a receivers funding found we have a shortfall well place the cap to get the money and go to the general fund thats basically my presentation the rest are the detail on the budget and he filing of those and the surcharge rates ill be happy to answer any questions you may have. Otherwise i hope youll favorably consider the boards budget. Thank you very much for your presentation he do appreciate it colleagues, any questions for board of appeals . Okay. Thank you for being here up next our law library is here. Good morning, supervisors nice to see you again. Morning. You know your budget is pretty small so save you time ive prepared some audible visual but here to answer your questions our budget is unchanged the law library serves everybody from legal professionals to the public and our satisfaction rate is over 97 percent, the law library is open 52 and a half hours a week with the ftes we are an access to justice provider and our services are free to all san franciscans this is something i know that supervisor tang is interested 2015 served over 22 thousand people with requests in the number of requests it used our library we have increased our legal database transactions thirty percent in 2015 and the most comprehensive selection of free online databases in the area and some of the programs we have youre familiar with we provide seminars to the public and legal professionals, we have document delivery services, and provide reference help and our library is free so anybody have any questions thoroughly to the call of the chair i wanted to find how the relocation. First of all, great to be in a place well not get squashed with an earthquake great to have windows and the facility is nice good reception which is wonderful there is adequate space for the first time in 20 years. So overall were quite pleased has it helped or you know made things worse in terms of the number of people inviting the law library since your relocation there are changes in the way that people use our services for example, a lot of what we do happens to be email references so a firm will call and say we need assistance with the various items how can you help us with the references we respond we still are very busy resource in the library for unrepresented people people that are looking at something a product for their family wear a major source so far Small Businesses because the databases are horrendously extensive of expensive were engaged in more and more Reach Research with purposes are other institutions like the institution of San Francisco and working with the Public Library and we are continuing looking to expand. Sounds like there might be a shift in terms of people not needing it as much. Right the way the library in the world has a lot of Electronic Components to it. Thank you okay. Thank you very much colleagues, any further questions much appreciated up next your rent board. Do we have mr. Colins oh, there we go. I on intersections you have at hounlts. One second here all right. Good morning supervisors chair im robert colins acting director with the rent board ill be present an highlevel overall of the departments proposed budget we are the services we offer in the mission and some of the challenges we have in front of us the mission of San Francisco rent board as enacted by the board of supervisors in 1979 is so skinhead the tenants to make sure the landlord are fair with the guidelines the ordinance protects tenants from unjust evacuees to help to serve the cultural deficit in San Francisco the rent board can be grouped into two areas we offer Public Information that is what months the public gets to interact with our front counter and the screening of the Advisory Committee so thats our Public Information side and then the other side the administrative hearing and appeals those are the Administrative Law objectives mediations, traditions and sometimes to render the decision on rent board related matters i just want to highlight the rent board is dedicated to the fair and a newly of the enforcement of the rent ordinance and committed to the evenhanded members landlords and tenants so from the workload you can imagine given the prices in San Francisco our workload is increasing quite significantly from a tradition stand point it past fiscal year were in we projection we will receive 5 percent more petitions than last year so we are expecting to receive 2200 plus by the end of the fiscal year compared to 2 thousand plus last year the last fiscal year when you compare that to the year before with over one thousand a two year increase of 22 percent in petition filings the eviction notices have not raised to that same level 5 percent and 11 percent but at the bottom of the slide youll find that the agreements and the durations regarding disclosures of tenant rights prior to the buy out are significant this at law that was operative in march 2015 and we received 38 to one hundred plus declarations we projected this year two buy out agreements and dlaksz regarding that i guessed this is two more significant changes from all the legislative changes the receipt of those dlagsz and buy out agreements it is complicated we need to redact every single docket before we make that pubically available the seksd part the soft Story Building this mandate the owners 50 thousand units and we expect the majority of petition will result in passengers for Capital Improvement passes through our office and so expect a significant increase in those thats kind of ramping up we expect to be at 4 hundred plus over the next years to process that Capital Improvement petitions for the buildings seismically retrofitted looking at the charts over a woefrld status from a site of petitions i want to clarify a petition is something the reddish has to decide the matter filings are a little bit different a broader he category in the case of rent board jefferson dr. Have to conduct the hearings in the petition chart as you can see the increase over the past 6 years is significant every single year so we be backlogged and now were beginning processing the soft Story Buildings petition thats where we coming from in the next two slides our total filing over the 3 decades show that we are now studying the total number of filings during the. Org part of the reason things are not the same since then we have legislative requirements that you know legislative changes that you have passed that at least our areas where we are functions so thats part of what youre seeing that includes the something close to one thousand filings this is what without additional filings were 6 thousand i projection and were asking in the proposed budget that we hope youll consider is really is additional staffing so money so far website, some money for technology updates, and were reilly e really asking for additional staffing to process the petitions and the buy out agreements and delineations update the information with all the legal changes so were hell looking at 4 new positions over a two year period with 2 and a half in the first year and 2 and a half the second year youll see our approved budget last year was 6. 6 million and the current fiscal is 6. 9 million the next fiscal year 7. 5 from the current budgets and then again, were proposing 20172018 a budget of 8 million with an increase those changes in the budget are reflective of not only the new positions but cola and everything we have you know that well all have in our budgets lets go to the department is deservedly fund by the rent board fee apart from 4 thousand bucks in printing costs but the rent board fee is determined by the controller at the end of july the continental half of that for sro units we expect currently that the controller will find the rent board fees will be 41 ton july 1st and our goals and initiative were trying to implement legislative chances and update our information you approved an administrative analyst position last year thank you very much were making use of that person to get the information to the public and update the information that information gets cascaded into additional languages so as always one of the Top Priorities to be responsive to the community the desire it of the community and track that and produce for documents in more languages well do it all at once and translates into you know chinese and spanish and filipino and then last but not least one of our powder initiatives were streamlining the position costs of the process at the office in order to process our workload more efficiently in those parts of 4 hundred and 50 new Capital Improvement petitions we cant do that the way were doing it today weve gotten approves from the commission to streamline that process to be more efficient and thank you and im here for any questions you may have. Colleagues, any questions. I have a quick question thank you for your presentation. Last years budget was 6 hundred thousand and similar i assume most was used to pay for the 2. 67 Staff Members what was the rest used for. Well they have the the additional staff positions and basically, the general costs increases in cola we use and the other increases that the controllers publish we hire other contributions we make. Im sorry. There was one new staff position added last year the rest is through the general increases that we see whether that is mou or fringe and benefit increases. I guess what ill seeing in your report is 2. 67 Staff Members the numbers change so the on the budget side went up 6 hundred thousand im asking for the revenue that was left after the 2. 67 staff what was it used for . The current proposed budget adds 2. 67 Staff Members and it results in a 5 hundred and plus including the Staff Members an increase of 6 hundred thousand for the year not all due to the Staff Members some of that increase is due to the mou cost of living i on intersections is that and computer upgrade and website design and that we have in the budget as well all those items together come up with that. Thank you. Thank you, melissa so im sorry yeah. Were adding 5 positions one is their staggered one in the first year and one in the second year adding a legal secretary and were adding a counselor. Okay. Colleagues any further questions thank you for your presentation. Im with the Child Support services. Good morning chair farrell and members of the committee ill karen the Department Head representing the Child Services for San Francisco today my colleagues sheryl and i will discuss the budget that lays outburst a vision for what we need to do over the next few years to do our part to make sure that opportunities truly shared the department slide please the Department Annual operation at is from federal and state preservation and doesnt impact the general fund it has outlined to maximize be mindful the growing costs of doing Business Funding for 2017 will be theres from the prior year and reflect other city departments that funds colocates and the programs participation in the county led project 5 hundred into sources are considered ongoing for fiscal year 2018 there is a minimal increase matched with federal funds key to deliver on the enhanced services that address the need of trauma impacted Fragile Families and investing in the people is critical the additional funds afford through county recovery permits the department to backfill case worker positions no new positions and not an overtime budget it has a workforce that is competent and case workers appreciate the cult differences and take into consideration providing excellent Customer Service the department as prioritized language assess understanding that absence fiscal communicates and Service Deliver is powerful we regularly analyze and criticize our internal system in relation to the client feedback so the systemic areas dont occur 99 point one percent of the children on our coddling have established a process public assistance relies heavy on the Child Support when a single contributor mother receives it carbohydrate support is 40 percent of the income and carbohydrate support is 63 percent it is our mission to good afternoon the parents to meet the needs of their children our services are significant how we deliver those Services Needs to keep pace with the families today the Child Support program understands that sometimes parents needs help to provide economic support for their children and many parents responsible for paying Child Support are struggling with poverty and face significant barriers to gainful employment the department has restructured the Service Deliver from one that is punitive to family centered helping the parents meet their economic positions and strengthening family ties the department manages into with conviction and optimism we continue to build a stronger and valuable program for all san franciscans by leveraging our communitybased organizations, strengthening outreach to build deep client connects and reach into our program to insure parents quantity and treatment we recognize that custodial parents that suffered drorns should have go realistic orders that residential orders that children can count on that incarcerated parents are parents first they are their children are waiting for them and coparticipated provides fathers the opportunity to engage and help their children creating long term benefits for that elaboration the whole family 73 berries of our coddling our families are currently envoy gotten assistance that range from moderate to blow the protect we have latino and africanamerican increasing 97 percent of parents paying Child Support are fathers the department collected 27 million 91 percent of every dollar collected went directly to families that is the highest in the state our current coddling supports 10 thousand three hundred and 85 children that reside in San Francisco and although the majority of parents represent by the program are low to moderate income parent are stepping up for their children roughly 2 husband noncustodial parents are diligent in their Child Support we are going to assist parents to successfully q and a expedite for jobs in the locals economy we recognize the headwinds they need Child Support must be part of that effort we can and must dont 3 things continue to grow the project sponsors or partnerships with other Service Providers and grow the coddling management to reflect our client demographics and Foster Collaboration with the Workforce Development in my experience a good budget offices Practical Solutions to the problems of its kind and Practical Solutions work weve made meaningful progress of the 58 california counties San Francisco is ranked 6 in collects for children id like to wrap up any presentation by thanking the dedicated professionals of the department of children, youth, and families for their commitment to public service, id like to thank laura bush of the Mayors Office of budget and teresa from the Controllers Office that assisted the department in delivering balanced budget my presentation. Ill be happy to answer any questions you may have. Thank you very much for your presentation and your service and all the work you do. Thank you. Colleagues, any questions. Okay. Thank you for being here much appreciated. Up i up next the department of the environment i on intersections i saw them come in yep come up and im sure people know about retirement and dbi and library and puc and mta. Good morning chair farrell and the committee im dementia director of the department of the environment and thank you for the opportunity to present our department and acknowledge off the bat joe for his leadership in preparing the budget working closely with the mayors staff and the bust to present this today, im excited about this budget i believe it allows our department to perform its mission in a whorled way ill walk you through its functions and how it enables you to do our work several proximate causes zero waste your familiar and the toxic chemicals occult of peoples homes and Energy Energy efficiency and clean transportation working with people to get out of their cars and Green Buildings and School Education we have great jobs training in our environment now program we work with community throughout San Francisco in our Environmental Justice program to promote open space an urban after all and we have the Green Business program working under all of your districts are smaller and medium sized businesses and represent all the city and sister agencies in the Climate Action f when you look at our budget we are selffunding as the Mayors Office calls us and fully half of the budget comes in the garbage rates and we are heavy independent on grants sometimes your buckets change from year to year and a partner with other city departments 13 percent of our Public Health comes from work orders from other depends 18 percent is a pass through the department of public works through a cigarette litter abatement fee charges on the packages it is listed on our budget and not use for the program i want to calling your attention to the one percent it is an exciting opportunity that one percent of our budget that is from a new fee that is going to be levied on the pharmacy and this is from passing the first pharmaceutical programs in the nation weigh implementing that and the legislation allows the department to recruit the administrative costs were excited about launching that program and fords the opportunity to come back and tell you how its going this is the should not in front of the you that talks about our budget areas i want to point out is fairly flat nature of the budget that last year, we have about 17 before us this year 18 million plus an 8 and a half percent difference in the dissimilar it is made up from the increased of the cigarette fee that was built into the system almost a Million Dollars of that is from that cigarette fee that passed the department of public works so when you look at the budget the 10 one half percent change because the grant cycles we dont have over time the positions are flat so that is a solidification of the health of our department and how we look forward to continuing to deliver our services i want to end with what i on intersections that is the most exciting aspect of the work i hope you will wholeheartedly embrace the San Francisco Climate Action zero, 50 one hundred and zero waste and 50 is 50 percent of the routes with the single contributor occupancy vehicles and were excited about the solar work and cleanpowersf and finally roots that is how we real e heal the planet the coit out of the atmosphere and pulling up the composite on greenland to increase the soil and pull the coit out of air youll hear more from our department the paradigm for the climatic change weve been working closely with the budget analyst and i dont for see problems that concludes my presentation. Thank you. Thank you very much supervisor yee. Thank you for your presentation ms. Raphael was the abatement program. What do you actually do for that funding. Yeah. Thats a fund that was put in place several years ago to mitigate the problem of litter by sixth cigarette butt it goes to do litter abatement work thats what we use the funds for. A few examples. I dont have them ask the public works how they use that money i dont have details. I see the funding. The way the legislation was written and comes through our department. Colleagues, any further questions. Okay. Thank you thank you very much. Up next, we have your retirement board. Good morning supervisors jay executive director of San Francisco retirement system our Mission Statement states what we do were dedicated to securing and prudently investing and provide the promised benefits. Overview of the folks for actually employees we are admini 14 programs and from the chart the history of pension reform weve seen since 2010 we have some folks that are still working that are hired prior to 1976 and police and fire and miscellaneous members is where we have folks hired after 1976 they have a one year final copying as part of calculations in 2010, the first wave of pension reform was passed and created a tier for Miscellaneous Police and fire folks were there was a final copying and a year and a half later we have gotten into through the pension reform the voters approved a final comping for all new hires who were hired avenue 2012 and actually members in all the groups ive given you an actual overall increase in the members by 4 percent youll see the nonrestricted retired members that are mostly the new hires the active employees a 5. 2 percent increase and 4 plus increase in the retire force. This basically shows you the last 5 years of how the trust has grown how the x liabilities the value of the costs for the promised benefits has grown over the years and show show you the assets as well as the market assets our current funding level as of the actuary evaluation in 2015 were an, an actual basis and the marketrate at 88. 9 percent fund relative to the peers strong funding for a public pension i everyone remind the final progression in 2008, and 9 at one point our trust was under 4 billion were not having the marketrate of the 20. 4 billion and during the same period of time we saw the increase in the value of the trust we were paying currently paying over one billion dollars a year in Retirement Benefits to eligible retirees youll notice through is sort of an unusual bump in the liability i want to point out that that is primarily based on the decision of retirement board to adapt must mortality tabs the good news were living longer than but the bad news were ref pensions longer as a retirement board has vowed and approved to phase in those new more tilts tables we anticipate well see the results. Sir, i anticipate the actual ratio to go down. Were project by project the liability will go faster it depends on the market if we make the 7 and a half percent with your correct were with the liability status will reduce gradually over the same period of time. So youre going to add 7 and a half percent. Absolutely even if we make the 7 and a half percent the numbers will trend downward. So you do year ended. Fiscal year. What was the fiscal year performance last year as of last year. We returned 4 percent last year and the last recorded i on intersections at the end of the april we were under one percent return. Over the last 5 years we annualized the average of 9 perishes returned but we smooth in all the experienced over and over o over 5 years a have 5 years were phasing in but not meet the 7 and a half percent last year more expect to make this year. Good news we phased it in the employer contribution from 23 to 21 want 4 percent that begins july 1st of first year and because of this decrease those folks active employees that parking lot in the cost sharing of prop c will see a one percent reduction in our contribution with the shifting from the employee picking up the one percent over to the employer now responsible for that one percent we have estimated the plans actuary they anticipate an 8 to 10 million increase actually employer contributions as a result of even though weve lowered the shift from being paid by the employee over to being bade paid by the employer. Finally i like to remind you the retirement board is responsible for the issuing the copying program that is safety in 1997 as of the may first, we have nearly 17 thousand folks that are actively contributing through the payroll deductions over 3 homicide people and under 27 the house thousand folks with accounts and that is peoplet left theirs money on account and as of may 31st, 2015, 2. 8 billion and roughly have that same amount. Finally on the budget were here because we are completely selffunding u funded all the costs of administering the fund all costs for administering the copying program are rereimbursed to the plan by the Third Party Administrator weve seen an increase in the membership we service from 48 to over 65 thousand over the past 5 years weve requested that positions that will be direct Customer Service over the next two budget cycles to meet the increased demand for Retirement Services and requesting a new position in the Investment Division managing director of allocations with the innovation that leads the Risk Management including the t s g policy or strategy across the entire portfolio and your overtime a 10,000 budget we are over spending related to research were asked to do related to lawsuit that was filed against the city and with that, that completes my presentation ill be happy to answer any questions you may have. Thank you, very much. Colleagues, any questions. Okay. Thank you very much for being here. Mr. Huey dbi. Good morning supervises my name is tom hugh the department of department of building inspection my honor to present you our next two year budget first of all, i want to you know tell you what is our 5 years goal and we have last year heavy participate and get you know the stakeholders through you know Commission Meeting and public advisory meeting and also, we the lead for the customers to make sure we have generally practice to have better Customer Service in our department and also is our department is the life safety number one heavy outreach containment to make sure that the Public Awareness for schematic or the fire safety and also, we have you know lots of communication that is of major concern and doing all those and also trying to more efficiently we are trying to do you know see how we can improve it and trying to put in our 5 year budget plan were still working on that and try to publish it this year. Then the next one i want to show you the next slide with our proposed budget as you can see weve proposed 72 million and if you look at the year of 20172018 we are project by project you can slightly decrease in the cost of you know we feel the economy in the pit of the slightly go down but thats what our projection we may adjust is next year and also i show you the next slide the expenditure you know as you can see monthly we have spends on the licensing and also the salary and you know outreach you know on the educated and so forth also i want to highlight these are the budget for overtime for the fire alarm system and the route on the budget for the spending we watch alcohol not to over spend and the last slide i want to show you is the summary of the budget you know what we do on our you know first of all, Code Enforcement we have a 30 million grant for the nonprofit and to the Mayors Office of housing and Community Development for Code Enforcement that to the Fire Department and also the seismic outreach i mentioned before we put, you know, the district there 6 hundred thousand and housing is also is the department continues to partner with the Mayors Office of housing and Community Development to go wide for the permit and inspections thats the major obviously for our department to make sure Housing Stock you know to be continued to be approved and also we have because the rec program has Extensive Program with the 160,000 to hope help on the mohcd for helping out those projects and then education outreach is our major goal were now trying to you know teach the public how the departments functions and customer surveys is our main goal to approve it you know to see any improvement we can do also, we review more detailed questions in the budget than i have my deputy of finance and cfo here can answer more detail. If you have any questions you can ask me, too. Thank you mr. Huey colleagues, any questions roadway okay. Thank you for your presentation look forward to being in touch. Up next mr. Forbes and our port. Good morning chair farrell and members im Elaine Forbes the intern port director hold on one second while we pull up the power point thank you megan im pleased to be here with megan the ports finance manager and procurement manager the first one id like to present is the reason the port is in existence and that is to advance our public trust mission our commission and staff dealer to promote navigation and maritime commerce and enhance Natural Resources and attract people to the waterfront to enjoy and use the bay that is our public trust mandate with our 5 hundred tenants and board of supervisors and the Mayors Office and the public we work collaboratively to achieve the public waterfront that is diversifies and calls visitor to work and play much to be proud of weve mrishdz over the years we draw 24 million visitors to see your waterfront we also work work hard to magazine the port that is sustainable as youve heard from many Department Heads today we are selfsupporting our Financial Stability is as important to us as our environmental and meeting our public trust mandates the port has been working carefully to balance big needs for Capital Investment this committee is well aware of needs we have to meet growing demands that Budget Proposal addresses our growing operating demands with security, Environmental Stewardship and Park Maintenance and Capital Projects in. Manner that is in a way to continue to invest in capital awhile meeting the demands youll see our Budget Proposal deploys our strategies to keep down our budget with capital positions to invest more in capital as our revenues are strong and really looking to meet our fiscal challenges in the most strategy manner possible to we can identify solutions to serve our waterfront for the public. Our revenues is strong as i recorded at the last hearing about the port our revenues have growing by 8 point one percent and 2. 5 in second year and this is the reflective of the very, very Strong Economy our tenants are doing well and percent rents are well and the maritime for the crews ships and the new category opportunities for the port the budget controls operating expenditures their going by one. 7 percent and one. 5 in second year and were eyeing the differences between the Revenue Growth and expenditure growth to invest strongly in capital and as you can see this chart is the net change in budget year of 28 plus million arresting capital is 23. 8 millions a capital story a senior budget decline which reflects how many capital sources we have in the current year to invest in the capital year in the budget year. Id like to note our port function as put in strong policies that guide your organizations a 15 operating refers and 25 percent operating policy 25 percent of revenues to capital and you can see in this budget trend chart the results of both our fiscal policies as well as very Strong Economy that chart shows our capital from 2009 to our proposal in 17 and 2018 our policies and good economy are showing very, very good results we invest in capital a tremors upward trend to invest 62 million over two years a lot of this budget addresses life safety and code issues those Capital Projects together are 6. 4 million in stabilization well pour into the Capital Budget and tackles our sizeable backlog of 200 one billion dollars with percentages to facilitate repairs the bad news if we would need to invest 45 million every year to meet the renewal not to add to the ports backlog so well, were incredibly pleased to see this were not there yet i wanted to speak to some of the budget changes were proposing here our budget does include 7 new ftes operating positions and mr. Rose is looking at those closely but positions like up to electricians and gardener and positions to help us with special events more and more of the Partnership Webinar public time to use the open space with an emergency coordinator and a permit desk position then we have substitutetions and reassignments many of them 14 reassignments two new positions so support Homeland Security and 22 project funded positions so were really using in a two year budget cycle the retirements and changes in the staffing to use the resources we have for the demands we have youll see a lot of that occurring in the budget in terms of the project funded positions we have continuing the desire to use project funded capitals workloads or work orders were adding 2 pile crew of 15 and we found over time our crew can do the work more ininexpensive than contracting out with that strategy to meet the capital backlog we are very, very pleased to announce that thanks to the Mayors Office of budget we had 8 million of Fund Proposed for the seawall resilience project at the committee is aware were going studies to see how the one hundredyearold seismic project its time to invest in the Critical Infrastructure the seawall needs to be shored up in a seismic events with this 8 million well begin a two year project to do a lot of engagement and outreach identify the most critical repairs through engineering and analysis and conduct permit and Environmental Review so then turn to invest in the most critical investments first, as we design is a program for the desire 3 million seawall from Fishermans Wharf to Mission Creek our plan will provide for more resilient future forfeiture generations and provided a stable and Adaptable Foundation to address Sea Level Rise we also have undergoing a Community Planning process inform refresher the 1997 waterfront land use this is a critical process to help us meet the public needs in the most efficient and appropriate way possible given the Financial Realities of investing in our piers and development at the waterfront given the Sea Level Rise and our 134e6k challenges we are doing this so we be, redo the Planning Areas and pursue developments in areas not development this slide is to show you our system projects projects in the planning phase and projects under construction and the circled areas are sub areas planning were undergoing with the public to decide what the couple of assets not been redeveloped and finally id like to note the importance of work were doing in the southern waterfront were very well known for being maritime and commercial landlord of the Ferry Building and the giants ball park, etc. 77 percent of our portfolio is industrial land and maritime land and the port is really possessed to play an important rule in the improvements happening in the Southeast Community this slide shows the mission rock the giants as well as the pier 70 project mission Ferry Landing which the port is now in the process of designing and doing Community Outreach to serve the growing neighborhood the crane cove park and again begun phase one and pier 80 auto terminal id like to note the spiritual and maritime purpose is key an essential in this area were preserving areas land for maritime commerce and weve signed a deal with pasha theyll begin a role on roll off operation 96 calls estimated per year and 50 longshoremen and other employees at the facility with revenues to the ports but importantly we important jobs for that community and industrial activity so this shows 40 millions of recreation and 3 thousand 5 hundred residential unit and 14 thousand jobs at the commercial sites so the ports is turning the attention to the southern waterfront and growing in areas so we achieve our maritime industrial purpose as well as develop crucial new residential opportunities, open space and transportation opportunities and ms. Wallingized and i are here to answer any questions id like to thank you, mr. Rose for pouring over our analysis and helping us to achieve the seawall project and other aspects of the project thank you very much. Thank you colleagues, any questions right now for our port okay. Up next our library. Good morning supervises louis city larger than my pleasure to present the highlight and share with you exciting highlights of the proposed budget. Talk about the impacts what we propose with our budget first and foremost thank you, mary reign single contributor ton and certainly, if the Mayors Office anthony our budget analyst thank you so many so 98 percent of our budget was introduce the Library Preservation fund im pleased to report a robust budget with the increased revenue that supports our budget i should note that 70 percent of our desire budget is labor it includes the similarly benefits and we are Service Oriented organization the budget itself shows a total of 123. 8 million for focusing 2017 and focusing 2018 an increase of 6 p. S. . 7 million over focusing 2016 with an increase of staffing for 21 ftes for 2017 and additional for focusing 2018 so the key driver and this is important to note we have offering more services that begins with 14 Branch Libraries that will open extended hours ill go into more details were proud of the work take place at the mix the Digital Media lab we want to expand the capacity and expanding overseeing Services Citywide is one of the key priorities and certainly growing we are seeing significant increases in serving almost 7 million visitors a year over 10 million items thats an important part of what we do Technology Investments and i also want to end by talking about our Capital Investments should continue for our Library System so lets begin with exciting news about the proposed stent hours every year were required to an an assessment of the operating hours we completed that and determined we need to have a bottom line so all of the libraries are open 45 hours a week were proposing to bring 4 branches to 50 hours a week that represents 14 neighborhood branches that will there 70 hours per week and some of the libraries will be open sundays, monday those are currently close 25 of the 28 libraries open 7 days a week as you can see this the baby boomer like oakland and san jose and other place were higher than those communities we know that but virtue. Commissioner chung. Sorry to interrupt the map does it show what is currently or our planning. The proposal. The proposal. A minimum of 50 hours a week thank you for that question supervisor so the impacts the direct impact on the 14 branches will represent three hundred thousand residents and that includes 49 new youth and focus on access to seniors that we open earlier on weekend days and saturday morning as i mentioned sunday and monday next focus a little bit on the used services as i mentioned wanting to expand the capacity not just at the mix of the main library but adding 3. 5 ftes to expand the hours at the media lab and work at the 3 ftes for some of the neighborhood branches we have a concept called the mix to be more of a Youth Engagement in our neighborhood branches we partnered closely with the area museums last week, we kicked off a learning program that the parks a continual celebration hundreds and hundreds of young stares engaged in the initiative were tat 25 thousand youth that is saying what were doing in engaging the young people and looking at replacing the book mobile to do more work with childcare providers and daycare programs. In terms of our collections i mentioned how we continue to see a transition from collections to e resources represents 12 percent of our total budget were proposing 13. 9 million in books and resources for next year we have about 3. 6 million he means items in the collections if makes. One of the in depth collections in the bay area in the state of california but for mats one of the things we see as we look at the future of libraries all the databases and the e learning resources what you see on the slide are some of the learning courses that are offered from the vocabulary learning 0 online homework help databases all that that it extremely important and offer language resources in more than 50 languages next, we have very committed to dig inclusion all that we do requires Technology Infrastructure so we build our capacity we can certainly support our citys Technology Infrastructure we are looking connecting 10 for libraries into the city fiber netted with the mobile wireless lending efforts we literally are checking out out wifi so our communities as part of our Laptop Lending Program this is so important we literally need to make sure our community has access to Community Technology supervisor tang i know youre interested in having young women engaged in technology were proud that have this program at the mix and the neighborhood branches tremendously successful well continue that effort they came up with an online home app that is used citywide we are very we had a team tech they created a teen connect and do great work as well as the mix were looking to make sure that folks with visual embarrassment or any kind of deaf embarrassment has assess part of resources well add this temp in the neighborhood branches equipped with Software Programs and speech detection that helps the disabled community again, were the primary Internet Provider for our community when you look at the number 6 hundred and 66 thousand hours a year of public that is pretty remarkable well work with the nonprofits and community to make sure that we do a great job on that fronts i on intersections were aware that the Branch Library Improvement Program was successful we completed the 24 neighborhood branches and the report had a report released it indicated for every dollar invested between 4 and 9 that represented an indirect total of 300 million that is phenomenal there were 3 neighborhood branches were looking investing so the chinatown, and the Mission Library and the Ocean View Library are 3 branches well continue to begin to scope the Community Engagement to look at innovation for fy 2,017,900,000 and an additional 5 million for focusing 18 for the public works and certainly both with the community to engage them to exactly what we want to see took place in terms of sustainability and efficiency we take pride with work with the puc working that building celebrate the 20 anniversary and we want to maintain that amazing asset for our city we are looking for an Automated System that excelled my materials to our users and again, the main library is 20 years old we wanted to invest in a new roof so that enthuses the Capital Investment and the last area the notion of having an the equity through what the library did you have quantifiable numbers on the jobs career Workforce Development i on intersections we do a great job with our youth but with our senior and adult learnings from Adult Literacy to job training opportunities for our users were also pleased about the fact we have a Certified High School online Procurement Program with the first graduation this summer well send you on invitation we have programs that are 4 hundred and 50 thousand residents that attend the system citywide and that will continue finally the overtime one point percent of our budget were maintaining that flat not an issue with the department so thank you for your attention to the budget and look forward to any questions. Supervisor yee. Thank you for your prediction this is probably not a budget question just curious in recent years developed a teen center approach in our libraries just curious how are they functioning as the best aspect of it. The best response are the impacts were re connecting with demographics that teen population and so important to have them connect to the library if Digital Literacy were having Great Success with a lot of class visits particularly the Million Dollar and 85 thousand students from sfusd visit our libraries the fact they have a spaktd space in our branches is successful and the entire space 5 thousand square feet devoted to young stares 118 that work and learn everything from were trying to reframe what the library is so this generation. Thank you very much. Colleagues, any further questions pursue appreciate it up next week next your airport mr. Martin. Mr. Martin is this your last budget presentation. Likely my last budget presentation if mr. Rose and i reach an agreement on the budget. Im john airport directors supervisors to provide an overview on the budget and operation our mission to provide an Exceptional Service to our community and we seeing the record breaking passenger growth 40 percent since 2007 and a Phenomenal Growth in the passenger and annual growth in the coming years weve been the Fastest Growing in the u. S. One in the world and seeing strong growth in the International Side 10 percent jerry with International Service by cop pa to panama to indianapolis, indiana and upcoming flights with the desperately and united to telling verify and air canada from the other countries starting soon we are seeing a tremendous growth in passenger activity the budgets has not kept up the last two as you can see the place of Business Growth in passenger 13 percent growth in positions the budget before you takes that to 21 percent growth in positions over the 10 year period a budget overview about four and a half percent groethsdz for next year and the next year the increase the position increasing in custodial and maintenance and safety and security and a number of it newest positions as well and were keeping our overtime budget relatively flat we are deservedly financially selfsupporting pace us dividends into the General Service payment 43 and 44 million in the budget years. Were finalizing the Capital Improvement program that will be presented to the Airport Commission on june 7th about 6 billion again entirely backed by the revenues we sell airport Revenue Bonds to support the project the largest project the terminal one 24 gates and broadly areas b will finally be demolished, terminal 3 is improved for 3 feet it closed down the terminal building that is the united terminal we will have start egress is a new hyatt hotel and air training Extension Building new parking garages with the systems that services that parking garage as well as the existing long term parking garage and all the projects get us to net zero on the new construction going beyond the goal to the net zero Environmental Impact well see the Carbon Neutral an important goal to be the first airport in the world to achieve the Carbon Neutrality and get to zero waste we have Ambitious Goals in the Capital Improvement plan and common industry metrics that the costs for in flight the airline for the operation at the airport were competitive with oakland and san jose theyre primarily, llc low cost carries their competitive with those airports our overall numbers are higher the International Airlines have more fatalities in the special first class facilities and against the airports nationally were slightly blow average with the large Capital Improvement plan well be competitive against Major International gateway airports im especially proud of internship programs weve put in place 21 years as director saturday from scratch 21 years ago last year, we had one hundred and 34 interns and likely exceed that by june 30th of this year their aimed tarts atrisk and the high school and colleges and graduate students a lot of the our it engineers, architects we hire as interns while their still in college are graduate school also very pleased with our success on local business participation studying the Small Business goals for contracting well studying the goals very high vessel vertical and Small Business accommodation in the two and part of success on the Concession Program the local flavor and restaurants in the retail facilities and finally just to highlight some of the awards weve received in the last two years i on intersections reflect our success in meeting our mission for an exceptional airport ill be happy to answer any questions you may have. Supervisor tang. I dont have a question he want to say thank you for your service and will have you back you have the most creative presentation using airports at ball points. Thank you for being here much appreciate it now mr. Kelly our puc. How you diagnose supervisors harlan kelly with the San Francisco public works for my presentation want to first give a brief highlevel briefly of the proprietors for the next two fiscal years of 20172018 so before dive into the numbers just want to talk about the high lovely priorities and the first is cleanpowersf we launched the phase one on may 1st and plan to launch the phase two in november 1st and this program has been very successful we have less than one percent opt out so that program is going very well, however, we need to Pay Attention because we are continue to launch further phases that is something were focused on in the next couple of years the next priority in our power side our power Enterprise Business plan actually completed that is how we plan to grow as a business to actually retain and attract new exercises were paying attention and the next priority the Improvement Program we plan to keep that plan on schedule and budget it is a major priority of the department and another Capital Improvement plan is the water policeman were completing that program there is two projects that we are focused on calaveres dam and the recycle project and for those new facilities we are constructed now were integrating them into our water system another proprietor were addressing our water system has been operating around the clock for nearly a century and as you can see recently weve had a lot of sink holes because of aging infrastructure some date back to 1890 were focused on trying to replace all the assets not only water and sewer but transmission and street lights and so were working with the department of public works to try to minimize the impact on construction on the community as well as you know the development of San Francisco has been you know increasing and were tried to keep up with the construction so we are trying to focus to minimize the time in which the new construction requires the hook up for water and wairmentd the other is that we have been facing the drought in the last couple of years and that is something that is been concern of ours to manage our budget facing this drought so this slide i wanted to show you just to kind of give you a feeling of the challenges weve been facing seconds our retail and wholesale customers over time the amount of water sales have dropped and i on intersections this is a great sign weve been doing effective job in our wholesale customers and fiscal job of working with our customers to conserve water, in fact, i on intersections we have down too good have a job now has serious implication with water and watering that is one of the challenges weve been facing with that, weve been to manager though the drought is more as you can see despite the decline in revenue we are contained our costs and keeping the increases below the rate of inflation so when you look at our two year budget as i mentioned earlier due to the we had to revisit you all the revenues assumes we went through a 4year process to look at the timing i gave the direction to all of the divisions we have to cut costs and the current year cutting the costs to cover the cost of living adjustment and so this Budget Proposal successfully rebound our operating and Capital Needs around the lower projection of water sales the lottery increase is sandborn map which is 33. 7 million and in fiscal year 20162017 and 40 want 2 million in fiscal year 20172018 positions were adding few in the next few years they reflect the staff for new or Priority Programs such as increasing our renewal of replacement of our water system weve hired more cruise for replacement of pipe installation and also cleanpowersf were hiring staff to manage that and hiring staff to work on the new developments so we can hook up their Water Service in a timely manner and ground water projects for the wells as far as overtime concerns we operate twentyfour hours 7 days is with, with the failing infrastructure we have to have overtime and given the fact that we have been managing our budget we utilize some overtime to try to you know save some costs as far as you know, staff trying to hire people timely so that is something well focus on hiring people in a timely manner so we can look at reducing the overtime. So our commission every year adapts a 10 year Financial Plan and this is the visibility into a longterm investment as well as a rate impacts and charges and so when you look at the 10 year Capital Improvement plan it is close to 8 billion amongst all the enterprises and so you look at our two year Capital Budget it is 1. 6 billion that is the first two years of the 10 year budget and one point one billion dollars on wastewater that is in the sewer System Program so as you may know one the challenges to balance how do we invest in Critical Infrastructure and maintain the rate car for affordability so this slide shows how we projection the rate changes transmitted into the monthly bills the yellow area it what is approved the annual rates through 2018 so for example, if you look at the middle of the yellow section youll see that the average combined bill is 86 delores 0 when you look it over the years because of water conservatism has offset the water increases we were anticipating a certain volume of water hoping to sell but that volume has decreased the rate increases have gone up the rate increases has declined this is a one of the challenges so with that, i wanted to conclude any presentation and if you have any questions let me know. Thank you very much mr. Kelly colleagues, any questions he know that is puc one of the bigger budgets want to make sure we ask any highlevel questions at this point. Okay. Thank you very much last but not least director reiskin from our mta. Morning chair farrell and members of the board im director reiskin the director of transportation i dont know if so it good or bad to be last standing between you and our lunch glad i got this opportunity but actually kind of expressive to see this strict of my colleagues other Department Head come through and have a strong team on the enterprise departmental as a on the general fund side. We can start a rivalry. Were one Big Happy Family honored to be in the train of presentations were looking for concise i was here in march with a purview from the mta board that is times adopted by the mta board this is not a whole lot different kind of highlight as we go through the overview to remind you and the public or some of the scope of what were responsible for with the voters entrust to us when we created the agency in the initiative in 1999 some of the numbers and the vision and goal of this 6 Year Strategic Plan adapted in 2012 this is the plan that was meant to cover 3 cycles this is the last cycle so during the fiscal cycle the strategy planning for the next fiscal cycles the proprietors of the agency are the proprietors for the budget those are them here with the streets safer for people weve been one of the leads for the city and vision zero and both within the Transit System and the rest of the Transportation System safety is a Top Priorities making sure that the Transportation System is fair and equitable and all the more important given the cost of living challenges that are facing san franciscans to doing everything we can to make the transportation portion of peoples Household Budget as anythingable as possible with the free muni or sdoubt and the Free Transportation Authority Commission and working hard through the investments and pass and presents years as well as this one by the upgrading of our fleets by upgrading our infrastructure which were also investing in heavily sometimes disruption on the streets but the investment critically important like our systems around the country have pretty significant repair needs were working hard to make those construction investments so the infrastructure will be more sustainable and support a system that is more reliable were working hard to make sure our streets are moving a challenge given this in San Francisco were all seeing and feeling the congestion to throw our management of parking and traffic and the muni service trying to make sure that people get where they need to go and doing all this awhile planning and building for the future the growth is not speculative but worry about that what we fled to do to support the future those are the priorities that were behind the development of our budget jump to the changes outside of the indexing of fairs and fines with the mta board policy that happens each of the two fiscal years some we did above and beyond indexing on the revenue does the first one is the change the definition of youth which determines the discount you get on muni currently is for people ages 4 to 17 the mta approved 5 to 18 many 18 years old are still in high school and their 17 or turn 18 in high school and permeated across the regional agencies that expends the gingsz e definition of youth a negative impact the board felt it was important and appropriate to make those adjustments the next one is changing the amount by which we discount the fairs people with disabilities and youth as you may know we are now providing free muni service to people in into categories of low and moderate income this change impacts those of not low income that are currently not brendon e bringing from the twothirds sdounlt theyll get a 50 Percent Discount and it is consistent were shifting from discounts that are based on age to discounts that are based on need so this is kind of a followup to the free muni program the next one is generated from the interest of the discussion was establishing a differential in single contributor ride fairs between payments made in cash or with the limited use tickets out of the ticket vending machines to the clrp or mobile apps this is the best practices amongst the travel agencies to move cash out of the system move people bone the more than flexible modes of payment that reduce our burden on the Cash Management speeds up and improves side restrict e reliability the second to the last one the fast discount below. Going back the discount for clipper and muni mobile how do you come up with the 0. 25 fee i agree with the concept 0. 25 might be a little bit higher than than using the clipper card. Through the chair i have slides i can suspend more time but the investing policy rentcontrolled housing our fairs to the nearest 0. 25 you dont want to people fundamentally for dimes and quarters that is the next increment from the current fair is a quarter is not much conceives i know that ac transit they went to a 0. 10 fair differential but weve been incremental by one quarter we want to stay consistent our goal to make sure that people have the opportunity to not have to pay the extra 0. 25 by using a clipper card that is beyond the one hundred thousand people in San Francisco who are now paying nothing because the free muni program or in 50 Percent Discount. Maybe we can followup later on ill be curious to see the back up data how many people are still paying the cash fairs versus the people using clipper cards. It is 14 person that are using the cash or limited ticket. Thats helpful. Two different kinds of fast passes and the muni a pass right now there is about a 10 theres differential between the passes given the i guess more significant value that the a pass for example, from balboa park to embarcadero station on bart is a significantly faster trip than on muni we felt that the demand supported a higher costs for the a pass so the board approved increasing that both the index volume and then finally in the other direction consistent with the 50 Percent Discount we provide for protecting adults we cumber provides tokens and passes to Human Services agency and other nonprofits organizations that or serving protecting residents we call the roll provide those at full fair with that promoted change providing them with a 50 Percent Discount as we do for protecting adults purchase their fares directly from us so those are the fair change revenue changes the other revenue changes youre familiar with the reduction in tow fees roughly 2 and a half Million Dollars in the budgets that was approved in advance the budget and incorporated into the budget and finally the board asked us to explore places or times in the city that require parking that will benefit from Parking Management but not have is that exactly means i dont know we have essentially a place holder in the second year of the budget working though the Community Process to identify where we can expand Parking Management and in a way that benefits the Transportation System but to do so with Community Support that is a place holder number those are the revenue hangs in the budgets on the expenditure side we didnt have a whole lost room to play with with our baseline we start out 15 million of expenditures and revenues with the contraptions plus those revenue changes we ended up with 10 million operating excess of revenues over expenditures that we had to play with over a billion dollars budget not a whole lot we tried to be strategy and invest in areas that we identified specific gaps such as safety and maintenance activities within transit we invested a lot actually in transit and microscopes over the last couple fiscal cycles with the sustainable streets that manage the paints and signs and signals on the streets through our vision zero efforts and others Capital Improvements weve put a lot of the infrastructure on the streets it is the maintenance and upkeep of that infrastructure the caltrain operation we pay the San Francisco county share of the 3 county operating contributions that the members make every year it is set by formula to allocate the expenses across the 3 counties and that amount has gown up a little bit this year were investing increased amount in the Safety Division new federal Transit Administration regulations coming out of the government it requires us and other other federal grants to implement a Safety Management system that will require resources on our side i on intersections that is will be a good they know but requires resources we dont have today. Other than other investments and tax investigation and support of our muni system and funds for outreach we hear from you all is something we need to invest and a couple of h. R. Analyze we can hire all the rest of the folks. The other part of our expenditure story on the operating does it is the use of funds balance we have a policy the sfmta board established we maintain a fund balance eventual to 10 percent of our operating budget one point one billion dollars is a fund balance of one and 10 million because the strong Revenue Growth from the general fund from prop b as well as from fairs, from parking meters and garage revenues our fund balance has grown to over 200 million more than double what the mta board requires we keep in refers owe propose we exhaustive the expenditure wouldnt bring us down to the 10 percent but to address a one time safety or efficiency needs we were not able to meet in the Capital Budget some of it is back up house things equipment that makes our work for efficient and things on the street more transit appropriate on our rail lines which is critically important way of one time expenditure that we can improve the reliability of muni and other miscellaneous things including 2 million for vision zero education and outreach something that has been kind of short of funding amongst the easy of vision zero that youve been hearing about through the tenant landlord those are all one time expenditures theyre not ftes associated with them for the most part just responsible ways since we have the funds to achieve other safety and efficiency goals were not able to meet otherwise in the operating Capital Budget putting that all altogether this is what the budgets look like on the revenue side as you can see the comparison to the county fiscal year and as you can see that you know the 3 big ones the transit fairs and parking and traffic revenues and, of course, from the general fund. On the expenditure side this shows both the dollars and the ftes each of the divisions of the organization as you can see the pattern there muni being the lions share of the organization follow by sustainable streets which is the streets management portion of the agency the two Main Operating parts of the agency you asked about overtime our overtime has been higher than we like it to be but we have been working the system and some is scheduled overtime for transit operators that is more cost fiscal and largo close our operator shortage gap overtime with transit operators has been declining on the maintenance side and trying to keep up and expand the maintenance of both vehicles and the rightofway this is what is driving the numbers while the numbers are high they are you look at them as a portion of overall budget they are declining were actively managing trying to make sure that we are spending it, it is strategic and making sure we are more active how we manage the resources of overtime thats pretty much the operating budget in terms of the capital picture our 5 year cit stays roughly the same size 2. 3 because sfrau is a smaller part of Capital Budget but the other cargos Street Safety and transit option as well as the states repair it bans on the recommendations from the mayors transportation workforce will be meaning there are revenue measures this november 2016 as well as in november 2018 as the task force recommended to add an additional sales tax and discussions happening around the sales fax for 2016 weve seemed those in the budget based on the following recommendations from the task force and executive plan that came out out of that in the orders of 45 to 55 million a year initiating with an additional 10 million with the second measure coming in largely addssing the area program so for the fleet expansion are the big categories we dont throw our federal and other funds generally have capacity for the additional money open the streets to advance more of the vision zero work so putting that altogether it is about 1. 9 billion budget in the first two years and 3. 4 over the 5 year and the subsequent slides have the additional projects within the transit area within our streets area and then the some of the back up in the support of operating divisions obviously a lot of Capital Program all of the first two years it was approved and all the information is online and available to you and the public thats what i have here ill be happy to answer any questions you may have. And thanks youre attention at the end of a long meeting. Thank you very much director reiskin and colleagues me questions right now . Okay thank you very much appreciate you being here look forward to Work Together on the budget okay. Colleagues at this time well open up for Public Comment on item 7 through 10 anyone wish to comment on any of the items im e line here to read a resolution for the San Francisco neighborhoods were asking the sfmta is responsible for transit related projects citywide whereas the muni forward is responsible for negative impacts on merchants difficulty getting the patrons not able to park and shop locally and as people avoid shopping in mission altogether whereas the muni forward project for lombard and gary and van ness and california and geneva and ocean and mosaic and stockton will potential create negative impacts on Mission Street whereas the proposed muni forward project for terryville street will potentially create negative impacts for similar those on Mission Street and the whereas mta budget is suspected and whereas side board of supervisors has responsibilities for whereas the board of supervisors has the ability to place jvtd money on reserve that be allotment to the San Francisco Municipal Transportation Agency during the proposition therefore, be it resolved that the coalition for San Francisco neighborhood urges the board of supervisors to place 25 million of general funds monies allocated to the mta for fiscal year 20162017 on reserve and until such time as the negative impacts of the muni forward project on mission and lombard and van ness and california and geneva and ocean and mosaic and stockton and terryville streets are to the satisfaction of the effected communities thank you. Thank you very much next item, please. Hi angela better the district 8 and i wanted to comment on the mta budget the as far as i am concerned cow in the budget of the intent i wanted to support the mta board of supervisors decision to increase the cash fair to 0. 25 i think that is reasonable if people can get their clipper card and want to pay cash i mean, i get charged a 2 automated teller machine fee it makes sure means to have the 0. 25 ill also in support of mta budget for the study for analysis the expansion the central subway to the north beach and Fishermans Wharf i on intersections that mta needs to do more outreach and this committee and members of the board of supervisors need to lobby the governor on our state representatives and federal representatives to get more money for the central subway and im glad youre keeping the discount fairs for seniors and people with disabilities i use that program and im happy that it is budgeted for that thank you. Thank you very much. Anyone wish to comment on item number 7 through 10 . Okay seeing none, Public Comment is closed so colleagues a few items in terms of housekeeping in terms of prop j item 7 can i entertain a motion to forward to the full board on marriage august without objection item 8 motion to file. Motion by supervisor yee and without objection and entertain a motion to continue items 9 and 10 to the next years Budget Committee meeting. Ill entertain. To next week by may 25th and without objection okay. And then lastly can i entertain a motion to resends on items to rescind motion by supervisor yee and seconded by supervisor tang without objection they even madam clerk cotton the vote on items 1 through 5 together. On the motion. Yes. Commissioner tang supervisor yee supervisor kim is absent supervisor wiener supervisor farrell there are 4 is one absent excuse me that item passes mr. Clerk, any other business before us . No, mr. Chair. Thank you, everybody, were adjourned