Yee. In announcements, [inaudible] complete speaker cards and any documents to be included as apart of the file to be submitted to the clerk. Item number 1, hearing on the proposed fiveyear information and Technology Plan for fiscal years 20172022. And requesting the committee on Information Technology to report. Im a sponsor of this legislation, and today we will be hearing an overview on the proposed information and communication Technology Plan or the ict. This plan, you should note, this plan is the guiding document for the City Investment and it provides an assessment of the City Investment recommendation for the next five years. So as you can imagine, this is important. This may be adopted by the board may 1st of 2017 which is why were hearing this item outside of our usual budget process. I would like to bring up kelly who will present this item. Thank you. Good afternoon, supervisors, naomi, kelly. I would like to present the communications Technology Plan for fiscal years 2017 and 2018. Oh, im sorry, fiscal years 201718 through fiscal year 20 we present an updated strategy on the future direction of the citys technology. In the last ict plan the city renewed over 121 projects and invested in key technologies across the city. The ict plan helped the city plan for investments towards the replacement of the Public Safety and have recommendations during the budget cycle. It led to development of two Technology Initiatives that are running. First is the implementation of the city wide Digital Service strategy. Im pleased to share that our new chief Digital Service officer kerry bishop is hired and actively working with departments to redesign their services to be more accessible and user friendly. Up first, shell work with the office of sifb immaterial Grant Affairs on their portal as a working with the office of short term rental on a faster and more efficient online application process. The Second Initiative to come from the ict plan was a focus on shared services. The department of technology has instituted a shared service form which acts as an advisory body where department bodies can active this is an important step to develop our city wide it students that have been decisions being made, department by department, but together, we will be working collaboratively. I think i would like to go through some of our quick accomplishments. The ict plan over the last few last two years, we have been invested millions towards new technology. It changes how we deliver services, although theres many different projects to share, i want to highlight few accomplishments today. With the technical existence from the department of technology and staff involvement from every City Department in this and i mean every City Department, the Controllers Office let the Financial System replacement project which will replace our city wide procurement system and this is on budget and on track to be completed this year. Were excited about that especially my city roll purchaser. We help the Police Department establish a new Smartphone App called east op which offers anyone stopped or detained for any reason. The police began using east op in response to the bill 9 the treasure Tax Collector has made the profit to register new businesses Available Online in the first seven months, 30,000 businesses registered and compare the department of Public Health and technology installed a new system at sucker bird hospital last yaek. This will provide more than 3 how voice over ip sets with 71 offering Video Conferencing features and these are a few the it plan discusses much more in detail and to share more with you, i would like to introduce the new director, jaime who will walk you through the remaining sections of the plan. Good afternoon, im director of coit. Ill go through the remaining section of the it plan with you all. And just to restate what the purpose of the ict plan is. Its a five year strategic document for the citys document and has two purposes of identifying areas of strategic importance and this is a financial document that guides our decisions during the budget cycle as we review budget request. Its put into five different sections where we review the vision in the city and reduce the accomplishments, looking at Different Technology leaders, including department technology, data, Mayors Offices innovation. Coit, 311 and the new Digital Office and how theyre contributing to the digital operations in the city and the next decisions is the goals of the city and strategies and recommendations for the next five years. Looking at the vision for City Technology, through our discussions with city leadership and our surveys and discussions of stakeholders, San Francisco Technology Supports egt as an Accessible Service for every visitor and business and employer. This is an important vision statement to say that technology its to improve Better Service delivery. Following up with the vision, theres three important goals, each with various sub strategies within them, and included in the ict plan document, theres several Performance Measures that well track each of these Going Forward to see how the city is Going Forward. Goal number one is to support Critical Infrastructure which is the highest priority goal for the city. And this is where weve identified Major Projects like Financial System replacement project and the future upcoming replacement to public replacement and public radio. Within the goal one, we have four separate Strategic Initiatives which is the Network Communications and data and our Disaster Recovery efforts and each are fundamental to supporting our goal of supporting and maintaining Critical Infrastructure city wide. Under goal number two, we seek to improve the efficiency and effectiveness of City Technology and operations. And underneath there, we have four separate initiatives ongoing as well including the strategic sourcing of procurement in the city led by Contract Administration and improved hiring technology as are increasing growth in the city. We need to have more and more professionals so thats led by the department of Human Resources and we have a Data Resource to improve data share and how were using data operations and improving our Customer Services and creating central portals so when residents come to the city, that they can get the services they need and that is led through 311. Our third goal is increased transparency to City Services and City Technology. This is led by two different efforts and the first is the Digital Services team led by kerry bishop who was recently hired and her purpose is to help reimagine how we interact with the city and look at the experience for resident and businesses and improve that process through digital means. The other Major Initiative is Digital Inclusion whereas we continue to create new technologies and have more of a digital society, making sure that all of the residents in San Francisco do have access to the internet and know how to use these services whenever they need to. Looking forward to the next two years, we have identified several different initiatives that guide and focus onto improve our technology. And the first is the City Employees experience. This is a direct result from our previous it team that led to the Digital Services strategy where we think how were delivering service and create more engagement with them. The City Employee experience flips that and how City Employees use technology and how we can better use technology to improve technologies on our end. Were looking at on boarding to see how we can train new employees and makes them adapt into City Services quickly. The next Stage Initiative is reviewing the strategic procurement in the city and this is a seen as a pain point when bringing on new technologies so over the next two years, we will be looking at the current legislative framework, administrative code and other ways we can potentially help the procurement process. The next initiative is improving data sharing architecture. We want to have 54 different departments or Technology Services and we want to reexam how we can improve data sharing and how we use operations in the city. Coit passed two different policies around private security and Disaster Preparedness and response recovery. These are two fundamental issues we need to be concerned about and incorporate more Risk Management and over the next two years well look how we improve our data systems. Moving onto the financial side of it plan. Coit reviews all Technology Projects that are over 100,000 and through our process of Public Meetings and review of all the projects, the goal is to encourage facilitation. Looking over the next five years, we recommend increasing the coit allocations, 10 for a total of 184 million over a five year timeframe. Coit allocation is put into two categories and its this allocation has been used to fund a Financial System replacement project, the Public Service safety and radio replacement project and will be used to fund the replacement Property Assessment and tax system. All these projects are defined as multi year and multimillion project that takes massive resources to change how were using technology on an enterprise scale. Over the next couple of years, well see this scale wrap up and looking at the Public Safety and Public Safety radio project continue to be implemented and beginning the project and the property tax assessment. The department of Public Health will be implementing the [inaudible] records project. Although no general fund money will be used from the coit allocation to support this project. Well maintain records and track this as it goes because it does have significant changes to the way the department and health will be doing business. Looking towards the future, there are several major it projects that well be investigating and scoping out for possible support. I will be reporting back on this on the next ict plan. The first major project were considering is revoicing voice over protocol. Our phone system needs continued support, were investigating whether voice is an effective solution or offers cost savings to improve our operations, and well be looking at Customer Relationship management systems, specific to 311. Many departments are using other crm systems to track how theyre engaging with residents and businesses and this is a way so we could potentially Work Together and have better data saving. Well scope out the Voting System replacement project where the department of elections Current System will be end of term in 2018. And so well be investigating replacing that with another system that uses open source or open Source Software as apart of that. Finally well be investigating the citys role in supporting broad ban Going Forward. Supervisor farrell has several motions to improve universal access to the internet, so well be investigating how much support coit will be on that. Moving onto the other allocation is the annual allocation where we review individual project request each fiscal year. Over the five year timeframe, were reviewing weve reviewed 152 projects and each budget cycle, we review each one to see prior [inaudible] funding and through the snap shot through the it program, the request for general fund support far exceeds any allocation available every year. And so well continue having to prioritize the annual cycle. Finally recommendations, we have six recommendations to the board and the mayor to consider. First is to grow the it allocation by 10 annually and the second is continue to support coit prioritizing projects that align with plan goaled and the third is making sure that each project that is funded through major it project is proceeded through a planning scoping phase. To better understand the life cycle and cost returns. The 4th is coit sequence risk project and readiness and cost effectiveness and this is required since it projects are in far the 5th recommendation is that coit should continue to support Technology Projects that enhance existing services, and really improve the way that the city is providing operations, and finally the city should set aside a separate Funding Source for the continued refreshment it hardware which is a separate and important ask, the departments continue to ask every year. If you have any questions, i would love to answer questions from the it plan. Well track performance of our progress toward the strategic goals Going Forward and sharing that information on the coit website which is at coit. Org. I didnt catch your name. Masias. Are you the new director of the department of dtis . No. Is that the vision infield . Whats your role . Im trying to figure out who is doing what . Jaime is the director of coit. Got it. Information technology. The director the new director of technology, we have received 155 applications. We are currently working with a recruiter to narrow it down and plan to interview in april, so hopefully by the time our budget process starts, well have a new director of department of technology and my city administrator and chief Financial Officer is the director at dp. You might want to answer the questions. Coit has been around. It has been a challenged Program Since i have been on the board. I remember former supervisor chiu ragging on coit. I dont want to throw my fellow departments under the bus. Hes had issues with technology. Technology, im thinking out of term. I thought it was coit. I was looking for a series of questions, but if i got my departments confused, i dont want to ask the questions so ill refrain and ill let supervisor tang. I think its all relevant in the context of coit. But you know, my when i was talking to the previous director, he wanted to get our citys kind of the basics down. Before you go and do flashy things and so i noticed that on the financial recommendation for item 4, it says that coit should think when funding certain it and you know, i guess looking at those criteria, i was wondering, i think it was really important, what the previous dt director said, which is we need to get the basics down before we can do anything major. Is that going to be one of the evaluation criteria rather than just the basic risk of cost effectiveness. Mathia will address that issue for you. Sure, i like to comment because the two major it projects were doing right now, the finance replacement project and the Public Safety radio projects, those are Large Infrastructure Projects and they were considered because they were about to fail or they need today have support. During that evaluation of risk, the city and coit decided these are Major Projects that needed to be prioritized and funded. Thats how were incorporating infrastructure into that process of really identifying what are the biggest risk because without the infrastructure, we cant do anything else. Im glad to hear that. It wasnt highlighted in the presentation, but if im hearing thats the priority, thats good to hear. Thank you. Colleagues, to my right, any other questions or anything . No. Okay. All right, thank you for your presentation. Its good to see you and to meet you. Lets see. Lets take this matter to Public Comment. Ladies and gentlemen, if youre interested in speaking on this item, please come up at this podium. Youll have two minutes to speak. Seeing none. Public comment is closed. Thank you. Is there a motion on this item . Do you want to continue or file the hearing . We can file . Controllers office, you can file this item today and then it will come back as a different item, it would come back as an action item in a couple of weeks. Speaker i look forward to the detail whens it comes forward. Ill make a motion to file this hearing. Thank you. We can take that motion without objection. We need a second with a fivemember committee. We need a second on this speaker second. All right. Without objection. That was sandy fewer who seconded by the way. Could you call item 2, please. Item number 2, hearing on the proposed ten year expenditure plan for fiscal year 20182027 and requesting the controls office to report. Thank you for joining us today and colleagues, were going to be hearing an overview of the senior capital year for 20182027. This plan is a guiding document for the citys Infrastructure Investment and this assess the citys capital need and identifying the investment level required for us to meet those needs and it provides Funding Provides a strategy and a financing plan for the city for the next ten years so we can deliver on these infrastructure improvements. This is many critical needs for the city, and while the investments identified in the plan might not be immediate or sexy, sorry, brian, but they are differently important. I think we all agree to that. It lays out the future of our city and also it lays out the identity of our city. Were talking about critical investments like central major developments that are shaping the look and feel of our city. These are a few of the things that will truly shape the city for the next several years so i want to emphasize how important it is for us to be discussing this item today. And with that, i would like to bring up naomi kelly who will bring up ryan strong. All right, thank you. Good afternoon, supervisors, naomi city administrator. Its my pleasure to present the fiscal year plan 2018 through fiscal year 2027. As you mentioned supervisor cohen, i know you are excited and all the other libraries, cultural institutions and other places all over San Francisco thats owned by the public. This recommends a record level of 35 billion in investments over the next decade and these funds will improve San Francisco seismic repairs and strengthening utility systems and safer streets for pedestrian and bicycles and drivers and more Affordable Housing. This plan is fiscally constrained. Strategic its a Strategic Blueprint for a more sustainable San Francisco. It includes plans to address the multi generational need to fortify the cwall which protects three miles of our vibrant water front. Its assets in those who rely on it for home, recreation or travel and theyre vulnerable to the meet threat of an earthquake damage and the plan keeps us on track for smoother pavement by bringing the citys pavement index score to 70 by 2025. Its highest level in nearly 30 years, Major Projects range were working on the replacement of the animal control shelter and the replacement ambulance deployment facility, repurposing space at laguna hospital, improving the sewer and Emergency Water systems and and retro and fire police stations. The citizens of San Francisco are showing their support for the plan and citys capital plan over the past 8 years, voters approved 3. 5 billion in go bonds for approvable housing, hospitals, parks, police, firefighters and transportation and streets. This investment is more than any other time in the citys history. The work the work to draft the plan was done in a fiscally and transparent manner without increasing the tax rates or posing an undue burden to the fund. It met strict standards and leverage public investments for project delivery and funding. As i mentioned earlier, its investing in the cwall. Were imposing a 3 million Obligation Bond to fortify that wall. We also looked at we are addressing key challenges by striking the right balance between caring for existing aging infrastructure and investing in new projects that accommodate a rapidly growing population. Were dealing with the rising Construction Cost in the market and were continuing our efforts to increase the citys resiliency against earthquakes and Sea Level Rise. It is my pleasure to call up ryan strong who is taking on a new role of both the chief resilience officer, but Capital Planning. Hes working with Capital Planning and he will be presenting the rest of the plan. Thank you. Welcome back, mr. Strong. Thank you very much. Good afternoon members of the board of supervisors, chair cohen. I really appreciate this is the 9th capital 9th tenth year capital plan i have had the pleasure of presenting to this board and i have a copy of the original one here and the new one is twice as big. So weve actually increased and its a 35 billion capital plan. The first was 15 billion. Its twice as much of where we started. Part of that is weve done a much better job capturing different needs and leverage resources. The capital plan, and the Capital Planning committee is the only place really where the city comes together and talks about infrastructure in a hole list tech manner. That role is really important just in the amount of collaboration and coordinations we have seen with departments and other agencies as well. The city administrative says its a its one of the best practices weve had other jurisdictions looking to follow our lead. By considering the capital plan, we state what we fund and do not fund. And thats important to keep in mind. We also have created a transparent process where we have Public Meeting on all these different items. The Capital Planning committee in of itself is one of the few committees that has legislative and executive branch reputation on it and it provides executive information on the state facilities and recommendations to you to make the decisions around house the capital plan and how these projects move forward. So very briefly, the accomplishments and we have more identified in the presentation. You know, we over the past, you know, naomi mentioned 3. 5 million. We invested 10 billion so that includes Revenue Bonds and the work at the puc and other projects moving forward. The lion share of this is to address resiliency and in addition, we know weve also managed to increase the amount of funds, the general fund has been putting into capital. I think supervisor tang was asking the it plan and taking care of what we own. When we think about pay as you go program, we take care of how renewals and we have manage today grow that significantly over the past since i started doing this a little more than ten years ago and its one of the key policies in the capital plan that we managed to, for the most part, honor and move forward. I would say that we also at the city and the capital plan contributed, i think so the city bond rating and the controller can attest to our bond rating are as high as it has ever been. We know the a rating they ask a lot of questions of our capital plan and the assets were funding and those we arent able to fund and were proud of that rating and proud of moving the city toward more to having really strong fiscal health. Quick question. What is the citys bond rating . Since its the highest . Ill refer to the controller. Supervisors, theres three ratings and they use different scales, but were a double a plus. Its across the board. We have a table available on our website to give more information. Triple a is the highest, but mr. Strong is correct. Our current rating is as high as it has been in the history. Real quick, controller, what are the factors that contributed to having a high bond rating . A whole host of factors have contributed to things improvements have been the adoption in some of the multiyear plan. The fact that we go through a process to assess longer term needs has been a major positive strength. Its a reserved policy adopted by the mayor and the board since the last recession were significant improvement for us in terms of rating agencies. And the forecasting process we go through look out over five years as apart of the fiveyear forecast and to do that habitually. Its relatively new. And then the thing thats less about our management decisions in the building and more about where we are is the diversity and the strength of the San Francisco economy, which cant be underestimated in this math. Thank you. Moving onto slide four instead of funding overview. Its a 35 billion capital plan. 5. 2 billion those include the departments you would find in a city, so around Public Safety, city and the county i should say. Some of our Health Department programs, recreation and park and those facilities. Its around 19 billion when you talk about when you add in our enterprise departments, those you know, are the mta, port, puc, sfo, you know, puc and sfo are making large investments in their infrastructure and the port is moving in that direction and some of the general fund dollars that we have are going to be helping to fund the projects out of the port. We have 11 billion in external agencies and these are agencies we do not have direct control over or authority over, but we coordinate and collaborate with on a regular basis. That includes city college and the School District, the Redevelopment Agency or now the office of Community Infrastructure and investment, Housing Authority, you know, the county transportation authority, those types of agencies. The next slide shows the Funding Sources. If youre looking at the general Fund Department program, you can see the go bonds and the general fund, the general fund is in the blue, it may be hard for some to see, but those two programs make up, you know, 2 3 of our overall spending. For the general Fund Department is not as high although we have critical federal grants that are coming in especially around our bridges and we have other debts around participation which youll get to later in the presentation. If you look at our enterprise department, youll see the federal and state picks up considerably. They work out at the mta and at the airport. So i mentioned its a constrained capital plan. We have a number of policies that we agree to when we put this document together to help with the structure and what were able to fund. The pay as you go program which you consider instead of our cash program is its a policy or the policies around that where we agree that well be growing it at 7 a year. In previous times, we were growing it at 10 . We started at 50 million and its up to 128 million in the current year budget. Next budget, this is taking again, this is becoming a bigger percentage of the discretionary budget and its why we started having discussions to slow that down the growth of that down a little bit. And i have to say the flexibility is hampered by the set asides that has occurred. If we look to the fourth bullet, we have a park and rec set aside. They have committed that to capital which were happy to see, but it does reduce flexibility. The more recent street tree set aside has reduced some of our capital only by 5 million in total. But again, those few things combined, you know, make it can make it challenging when things shift in our program. On your sheet, you have a note that says escalated by 5 percent for the remainder of the plan. Can you explain that to me . Yes, when were looking at Construction Cost over if we look back over the past 50 years or so, on average, escalation for Construction Cost from year to year has been 5 . So its like your consumer price, its cpi for Construction Cost. Were not as high as health cost have been going up, but we are higher than your normal cpi. So when were when were looking at these programs, were escalating them forward and when you look at the numbers, even the 35 billion number, were working in that escalation. Does that answer your question . Yes, thank you. And i should also say that while the pay as you go program, were using it to take care of what we own. Theyre critical enhancements that creep up every year and an example is Telegraph Hill when we had a rock slide. This is trueing up our plan with our budget. We know we have to spend a certain amount of money on enhancements so what we have done, we put that into our pay as you go program as well. The lining share its paid out of our gop bond or certificates of efforts participation program. The capital plan started this concept and weve been putting it in practice of having a Capital Planning fund. The idea that we have money that were setting aside to do predevelopment and understand projects before they go to voter and before they come to this body so were speaking a lot more with confidence about what we can achieve and that has made a difference to move these bonds forward. When do we start the preconstruction project development . That started back in 20062007. We had a year this is under former mayor newsome, but we had a 30 year surplus on the budget and we did funding for the hospital rebuild. That 24 million we spent on that hospital ended up enabling us to be one of the few hospitals in the state, if not the only hospital in state that delivered that budget on time. That was 887. 4 million project. So we have been doing that and committing to that ever since that time and thats usually when were bringing go bonds to you, we try to make sure we done to the greatest extent. Speaker i see, thank you. So the next this slide, the next slide to show you more detail on the pay as you go program. We split it into sort of things we have a fixed allocation for, which we agreed were going to fund it at 100 or a certain level. Of the 128 million in this budget or of the 137 million in next years budget, this is how it breaks out. Though i would just mention now were looking at ten years so were looking at the full tenyear capital plan. So routine maintenance, i should say this is the ada Improvement Plan and ada public thats our curb ramp, those are things we agree were going to fund at 100 . Street resurfacing which we know is an important issue, thats a net score of 70. Thats the idea that we want to do around streets. Thats the goal weve had that weve been committing to. The remaining dollars, um, go toward right of way renews which are bridges, guard rails, stairways and things in the right of way and facility renewals which are going to be roofs, hbac systems, exteriors and fire panels and all those things that make up a facility and you need to keep in good working order to get the full life out of the facility or out of the building. And those you can see respect you know, were restrictively funding at 59 percent. Ill talk a little about the implications of those in the next two slides so the next slide talking about the sales measure impact. We talk about this because the street it was relying on 33 million that was going to come from the sales tax measure. The sales tax measure did not pass. And as a result, we know that were going to be coming back to you to talk about how we fill that gap, how that affects the Capital Planning program or the Capital Budget. We did want to show you though, around street resurfacing if you look at that diagram here, you can sort of see the pavement connection in escort is the dark line and we should say 70 net score of pavement is a c, maybe better than that because the highest point you would get is an 85. You would not want to have 100 . That would mean every street would be brand new. The goal is to reach a pci, potentially of 85 at some distant you know, some time in the future. But you can also see the Funding Sources and i think thats important. And thats what we wanted to show. Earlier on, we started at the high levels and a lot of the money that was invested in streets would come in bunches in big bunches from the federal government and other sources. We invested a lot of money in streets before the 1984 democratic convention. Thats the last time we made big investment in our street. Our net score was going down, you can see the funding levels were relying upon a lot of a lot of local sources, some of the sources were prop k and we have prop aa. Now we have prop k which is coming through your half crepts or quarter cents sales tax. As weve done the capital plan, we have increased the capital fund, and thats the green bar. Those are the [inaudible] bar was the gop bond. You can see that local general fund, that brighter green is taking up quite a bit, the idea was we were going to i would say the impact of not being able to fund these streets is the Pavement Condition score dropped significantly. This is something we track very closely, and something that we think is of great interest to the mayor and yourselves and the other members of the board. The next slide shows the impact of the funding levels on our facilities and our right of away renewal program. The two bars at the bottom are hard to see, but they represent the blue the blue is proposed funding. The red is the annual need. And then the gas red above is backlog and again, the situation here is that we are still not funding our annual need for renewals. And in so doing, it means that the backlog is growing and you can see our backlog grows in the first seven, eight through the capital plan period. Part of that is because were able to grow or capital plan at 7 . And we know that escalation is going up at 5 . Once we hit fiscal year 2031, then you can start to see the backlog will start to level off some and will begin to you cant see it on this chart, but it will begin to come down. This, again, its something were focused on. How can we reduce the backlog levels to this great extent as possible. Moving out of the pays awe go program, this program gets a lot of attention from our capital plan and these are the bonds the city is going to be proposing over the next ten years, the go bond this includes the it does not include the School District bonds and those are in our capital plan, but theyre not represented on this table. It doesnt represent bart bonds and those other things. City administrator kelly mentioned the cwall fortification effort, this is a new bond. We did have i vulnerablity study. We know we have Sea Level Rise thats further down into the future, but we really know that with the likely hood of a large earthquake in San Francisco from the hayward or the san jose faults we need to address the sea rise faults and that has been introduced into the parks and open space, earthquake safety or we call our easter bond program, Public Health, and transportation, theyre apart of regular programs, so every six years, five or six years we bring these bonds back, really until we feel like were at a point that we reduce those needs in those areas. Park and open space, the last one was in 2012. We plan to do another one in 2019. Easer, the last one was in 2013. Another one scheduled for 2020. Transportation, we agreed through the Transportation Task force, we would do a 500 million bond every ten years so thats why transportation is in 2024. If you go to the next chart, you can see how were maintaining our constraint. The constraint we have is we issue new bonds as we retire old ones so it means the tax rate does not go up. So by having that constraint, were able to sort of layer a new bond as we retire old ones so the grayish bar at the bottom, those are bonds issued and sold where were paying them back. And often our bonds are 20year bonds but they can be 25 or 30 years. Most are in the 20 year range. The darker bar, the light gray one, those are bonds passed by voters. We passed bonds but we wont sail we wont sale the bonds or issue them until were ready for construction. The green one is the bonds were planning for in the future of the that includes the park bond the green one is the port bond. And so forth that are layered on top. We work closely with the Controllers Office and the department of public under that red bar which is the tax rate, the out of warrant tax rate that shows up on citizen property tax bill. If we go to the general fund program, somewhat of a go bond program, we have a constraint and thats to limit the debt service that were going to use general fund dollars for to three and a quarter percent of Discretionary Fund revenue. So the state of california spends more than 3. 25 percent on their debt service. Weve created this constraint and i think its codified in our city wide financial policies. The idea with this program is that theres certain things that are just not going to be feasible through a general Obligation Bond. These are also thing thats are critical that we really need to take care of and address that we have a responsibility for. So we have 101 grove. Thats our worse seismically buildings and it has administrative staff in it. We really want to move people out of that building as soon as we can and we have a similar situation with the admin building. If you look at 2019, we Start Talking about county jail number two and the hall of justice. A lot of these funds are working toward how do we address the needs in the hall of justice . If we were to recreate the hall of justice, we would need a building over 1. 2 billion square feet of 1. 2 million feet of space which is almost 2 3 of size of the da tower downtown and its something too hard for us to take on in one bite. Its difficult to find land and an area to do that in. And we know that we have, you know, critical functions that are operating in that space. Some we dont have control over like the courts and county jail and so forth. So thats general fund debt program. You can see on the following slides, similarly the red bar is the three ask a quarter percent discretionary we try to stay below. You can see the challenge of this program, and these dollars compete with operating dollars and they compete with our pay as you go program dollars i was talking with you about a minute ago. So its we want to be careful how we use these funds. You can see the programs that we have planned for it because we know theres a potential for a recession and changes at the federal level, which we know you had a hearing on the other day, we also reserve some of the cop moneys where we may need to come to you and say we think we need to do civic participations to make up for the fact were not going to have as much general fund cash on hand. So thats the concept behind that program. And yeah, i failed to mention it on the previous slide, but we have set aside its 50 million a year between fiscal year 2020 and fiscal year 2022. Really reserving that capacity. Hopefully we wont need it. The remaining slide and i wont spend significant time on this because i think administrator kelly covered it. This is economic development, general government, you know, all kinds of Different Programs, health and Human Services from housing to the hospital that we mentioned. Infrastructure and streets, again, and i should mention that rachel is here from public works supporting us because potential for questions around street resurfacing but the work that public works does around our capital plan and the Important Partnership we have in working with them on these projects. And finally theres also Public Safety, recreation, culture education, and transportation. I know thats a lot to chew on. So i will leave it at that and happy to take any questions that you may have. All right. Is youve put a lot out there. Thank you for your presentation. Supervisor tang. Thank you, so much, mr. Strong and of course everyone who work oz the capital plan. Its a lot of work but we have to think long term and he is specially with plans that cost a lot of money. Thank you for that. Going back to slide 10, you had mentioned that you know, on the schedule line up our go bond program that transportation cycles every ten years but at a higher dollar amount. He didnt have time to follow or i dont know if it happened at the hearing that supervisor breed called regarding the sfmta ability to spend on the go bond, so given that, and that is a reality, has it ever been discussed whether this 500 million even though its cycling every ten years is right level . Yeah, i mean, i think that there have been a number of discussions at the Capital Planning committee on concerns around the ability the quickness with which those funds are being spent and we know its an issue, i believe its an issue that go back has taken up. Our general Bond Oversight Committee that oversees the spending of these funds, we have not, you know, gotten into details with them about whether or not you know, a bond in 2024 at 500 million is the right amount as of now. I mean, i think that we are actually waiting and were every year they have to come and report to us, and i think given the amount of needs and the transportation sector, were confident the 500 million is needed in that area, and its needed for the thing thats were identified in that bond. I think what we i think the Capital Planning committee perspective is we need to work with them on how to to better spend those dollars and i think peskin has talked about this. This is the first time they have done a go bond at this level, the department there. They havent done a go bond i dont know that there was one introduced in 1966. So they had not really, unlike public works, who is working with other departments or even rec and park and space and if you remember the rec and park, their 200 0 the 2000 bond, it took them a while to spend that. Theyre betting at moving their projects forward. I think theres growing pains there, but i think its a good question and its something were watching and you know, watching closely. Thank you, and im sure that all of us will followup more deeply with smta more. Theres a huge need and all of us supported the transportation bond. Its the largest amount, so i wanted to make sure that we are the department is actually able to spend it down and address the needs that all of our constituents write us about everyday. And also going to slide 13, in terms of the debt capacity and so forth, i see there has been quite a bit starting in 2019, it looks like i think its 2020. I cant tell if its orange or red. Im sorry. In any case, i see that starting around 2019 or 2020, theres a lot of capacity that youve carved out for hall of justice and the demolitionen closure, prisoner demolition encloser and prisoner its important we have workers, employee and prisoners who are in a safe building, but i know there are still discussions about what to do with that site and what a new facility would look like in materials of with the prisoners and so you know, how is that conversation going . Again, i see theres a place holder here which is good, but are we moving forward in those condition and i dont want to get into a whole dive on, you know, that topic right now, but just whats the latest update on terms of where we are in progress . Sure. No, so theres a Community Process that met for six or seven months and they made a number i think, were waiting for those recommendations to come out. There should be coming out soon, the results of that community effort, but really were looking at doing a number of sort of operationaltype improvements. Some and some work out of San Francisco General Hospital as well. And part of that is to understand where the jail population is going, and one of the challenges with any of our Capital Projects is were trying to look forward into the future and trying to understand what the Service Levels are going or going to require down the road. That effort, you know, has gone were waiting for the final report, we want to give some time for some of those recommendations to bear out. To see how they work. And to see what that does with the overall number of admins we think were going to need to house in the future and thats part of the reason for some of the delays or for pushing it back, and the other reason is that quite frankly, these projects take a lot of time to plan and to move forward, so we know that you know, for instance when were not able to move forward with the previous proposal we had taken to the state, it means we would i wouldnt say start completely from scratch, because we had a lot of information, but go back and look at whats going to happen with some of these recommendations around the operations side. How is that going to impact our capital site and how can we put together a program that makes the most sense moving forward. We did make some decisions, for instance, in Previous Capital plans, we were going to move forward with addressing the jail as soon as possible and were going to address the admin functions and were going to take the admin functions as soon as we can as well as the jail functions. We talked about setting a goal to get out of the hall of justice in two years. Were moving toward that goal. Some of this may change based on whether or not we can move some of these departments out sooner, into lease space. We know the hall of justice is going to top priority in our capital plan since it was put together. We know we want to get out of that building as soon as possible. And i think this plan, you know, reflects the Community Process where it is, it reflects us setting aside capacity to make sure that if it doesnt work out, we have money in the program to take care of the, you know, the inmates so they are not forgotten or not left behind. But its really sort of the latest, i think, thinking about how we can do that, theres a grant, i should mention, so were going to be were applying for a grant and waiting to hear from a grant from the state to do a bunch of renewal work at county jail one and two which is not in the hall of justice. Thats the new jail adjacent to it. Its 20, 25 years itself and has a lot of needs. Speaker when that final report comes out, i think were going to be interested in seeing what those findings are. If you can keep us posted on those recommendations, that would be great. In terms of street repaving and one of the top things we probably get complaints about and i understand its under the pay as you go program and we have not identified a long term funding force, so can you share what are our thoughts Going Forward because we cannot sustain this i think so. So the Mayors Office melissa is here so she can come. The Mayors Office is putting together a Transportation Task force. I believe we have a schedule laid out for that. Thats going to be moving forward and i think were going to be looking for them to make some recommendations around some potential revenue sources. Do you want sure. Thank you. Im melissa, director of budget. President breed asked president peskin and the mayor has asked chief of staff steve to Work Together to call the Transportation Task force back together and to make recommendations to the mayor and the board on how do we move forward and that will include, also in addition to street paving, there was money to be thank you. All right. Thank you. Colleagues, any other questions for mr. Strong . No, all right. I think supervisor tang covered most of my clarifying questions. So i think were going to go to Public Comment. Thank you for your time. All right, ladies and gentlemen, would you like to call on item 2. Please come up. Seeing no Public Comment. Public comment is closed. All right. Colleagues, the matter is back in our hands. The same process. Got it. Supervisor tang. Sure. So ill make last comments and in terms of we have a board president who sits on this committee, but i encourage you to follow what happened at the Planning Committee because its important to keep an eye on the long term projects because they do have they can have daily impacts to all of us. Its something i wanted to state to colleagues. So with that said, ill make a motion to file the hearing. All right. A motion has been made. Is there a second . Seconded by supervisor sheehy. You can take that without objection. Thank you. All right. Mr. Clerk, any items before this body . That completes the 1 00 budget and finance meeting. Thank you, we are adjourned. Very much smaller allocations for Public Safety grants for example, and at least in the fortunate flows, much smaller for transportation. Not all is flowing to the city itself. Some payments are come directly to either residents or Service Providers from the federal government. And those are going to be outside of the numbers we talked about here. So a couple of examples of that, well, parts of the ihs program and home supportive home worker theres a chunk of money that flows to providers as wages. Thats 200 million in directive support outside of the 1. 2 billion that i talked about. Cal fresh, food stamp workers are on the city budget in support of federal money, the benefits flow to recipients s san franciscan was receiving 5 million as apart of that benefit. Other benefits in the city benefit and it depends on city money. The School District receives 60 million in federal funds as apart of their budget and the city college receives 6 million directly from feds and then students receive 22 million a year in federal financial aid. The Housing Authority, director smith is here, should you have questions, the Housing Authority receives 76 million. It depends on federal money for their operations in particular theres a host of other non governmental entities here in the city that receive funds from the city outside of our budget process. To highlight a couple, we talked earlier this week regarding arts organizations that received money directly from the National Endowment for the arts. About 6. 4 million is our current estimate of how much those organizations are receives. Usf is dependent on federal funds for their research and operations and a host of other entities weve listed at the bottom of the page the organizations that received more than 10 million as of the most recent years from the feds. So looking ahead to some of the key risk areas and really they fall in three buckets in materials of how were thinking about it, the risk related to the executive order regarding sanctuary cities and federal funds, risks created by risk known to the departments can speak in more detail. First, the sanctuary city. As youre aware on january 25th. The president issued an executive order that generally indicated in a fairly brief memo, the goal of withholding federal funds from sanctuary cities like San Francisco and over 200 other cities in the u. S. The executive i think the key points for today, and City Attorney can provide you more information on this in closed session, but the key point for today is really that executive order is not clear about what federal funds are really intended to be covered by it. This city has its almost certainly unconstitutional for the site government to withhold all federal funds from this city and withholding some of the funding we receive from the feds, the city has strong constitutional arguments that thats prohibited and the City Attorney has filed a lawsuit to prevent the used reductions from going into place. That lawsuit pending, but even during the 60 days since the executive order has been issued, their no clarity from the federal government by whats intended by it. Theres a lot of uncertainty. A risk and uncertainty. Well be keeping you up to speed on this as as the case progresses and also as we receive, if we do, degrees if we receive direction and what that executive order means. Second, issue area. The federal budget itself which establishes most of the appropriations that flow to us. Were at an early stage where were trying to understand even whats being proposed. As youre aware, the federal budget process starts with a budget overview thats presented by the president in march which is called the skinny budget. That skinny budget eliminates 54 billion in domestic spending to increase military spending by an amount. The key thing i like to leave the committee with on this is that they call it a skinny budget because theres few details in it. The whole document is less than 50 pages long. It provides very its almost like a blueprint of what the president will later intend to submit. But you get very you get some clarity about whats likely to come, but not specifics and so there are some cases where we can look into the skinny budget and understand what the local indications might be, but its not clear. The budget timeline will go on for many months and the president releases a blueprint in march. The president , then typically released a more detailed budget to congress in may and june. That will have of moesh information about what the president is proposing and well understand what those impacts will look like if they are adopted, but the Congress Takes time to adopt and amend the president s budget and those amendments are often substantial. The deadline for the adoption of the federal budget is october 1st. Thats when their budget process thats when their fiscal year starts. We will likely have more clarity there as we work through the budget process in june and july at the board of supervisors, and Congress Wont have acted by the time we adopt a budget which creates planning problems for us. Its worth noting that congress rarely meets this october 1st deadline. I think in the last 40 years, congress adopted all of their appropriation bills by october 1st four times. So, and the last time they did that was over ten years ago. And so its very likely that even by october 1st, we wont really have final clarity on exactly what the federal budget will look like and therefore what the implications for us might be. We have a long road ahead of us in materials of understanding what those risk look like. A few of the areas where we can look into skinny budget and understand the amplifications and im not going to dwell here because you have departments that can speak more eloquently to this and in detail. Theres implications in hud that has implications for the Housing Authority and in particular you can see in the skinny budget, the president is proposing to eliminate the Community Development Block Program nationwide. Thats where its 16. 5 million in programming here in San Francisco. Home is also proposed to be eliminated. I believe 4. 2 million. In department of transportation, skinny budget, you can tell the president has proposed to eliminate any money for new full Funding Grant agreements for the new starts program. This is the program that we relied onto build the cal tran line. Bart to san jose, a lot of the other big regional programs are counting on this which the president is planning to eliminate and the list goes on. Theres some implications that we can read into thats clear for the department of environment and fema. The arts funding we receive directly from the some organizations in this city received directly from the mea, the president s proposed to eliminate the mea. If that was adopted, that what does mea. Speaker National Endowment for the arts. Thank you. The last major risk area of the three is related to the repeal and replacement of the Affordable Care act. Garcia and others from Public Health can speak to this in a moment. It may be the most significant impactful of any of the ones i have talked about here today. With that, i will if there arent questions, im happy to turn it over to the department of Public Health to continue with their presentation. Just real quick, many of my own constituents have just asked some pretty direct questions. And i feel like ive given them a standard answer, its too early. We dont know whats going to happen. But these cuts actually materialize and they are permanent. What is the process that we do that we will begin engage in to backfill, evaluate what programs we will cut, i mean, how what would it look like on the ground, if i was a Nonprofit Organization and i got the news that my cd bg grant money has been cut, how do i i mean, i dont know the words, what do i tell people and if i were an executive director, what are the things i can expect . For example, i know i can expect to see changes, maybe not immediately, but next year so that would make it difficult to plan my long term budget next year knowing this money is cut. Im assuming im in a Holding Pattern until mayor lee make his formal Budget Proposal which may or may not have the back fill that i would be needing as an executive director of his organization. I dont its a great question, madam chair. I dont know if i have answers for you or anyone else because its the fundamental all face we likely have significant and severe federal funding cuts coming, but its entirely unclear about the timing of them. What the ultimate scale will be. Everything were talking about here is proposals at this point. They take other people to make them happen. When congress act, when the timing will look like, and when we will know those things are unknownable. Its likely there will never be a moment. Were likely to be getting pieces of news over many, many months when we hear new news in drafts as opposed to getting so were going to be dealing with uncertainty and we really probably dont want to do two things. We probably dont want to begin eliminating programs. We dont want to react too severely. But given the magnitude of risk Going Forward, to ignore all possibilities of loss when they likely will be significant would be full hardy. Its a key question for the mayor and budget to consider. In your many years as a controller and many more years as the budget director youre qualified to give some kind of a window. So you say that the information from the federal government will come down in drifts and drafts, okay. Are we talking about the next three months, are we talking about the for the next nine months . Theres a period, theres a season. Can you help me understand what what season were in i can give you from my perspective and i would suggest you ask those behind me who has expertise in this. When we see a detailed budget from the president , well have more clarity on what the impacts will look like in San Francisco and we can quantify if that budget was adopted, this would be the harm to the city and in a couple of months, well have a sense of what is going to have support from congress and whats a non starter. So i would think late summer, we have a pretty descent sense of we can narrow that range of losses in terms of federal budget implications. As it becomes clear of what the president is going to propose and how congress is going to react to it, theres been criticism of the president s skinny budget, not just by democrats but people on the other side of that aisle. So its unclear whether some of the proposals that hes outlined here whether some of those proposals have support among republicans whose constituents are also impacted by the losses. Hopefully well have clarity. Well have some in june and it will grow by the time we Public Health can speak better than i can regarding when we might have more clarity regarding the Affordable Care act. Thank you. And the implications there. Were bring up Barbara Garcia and her right hand is calling [inaudible]. How are you doing. Yes, good afternoon, chair, cohen and board members. Ill share my presentation with our policy director and our cfo is here. Theres no greater time for our city to come together and to continue to advocate and continue to fight for our health in San Francisco at both of the federal and state level. Several weeks ago, our mayor supervisor sheehy worked with a local union to call representatives to fight acl. Health care is complicated and changes at the federal level will take time. In the timeline that well share, the changes will likely happen in 2020. We also know that as our control talked about the skinny budget, well have that will have impact and were monitoring that on a daily basis. I want you to know our staff is working with the perspective with the National Professional associations to continue to advocate and fight. Were apart of the the Health Plan Associations who are advocating to protect our health care system. Our well advocate for the federal support given to our local nonprofit clinics. Thats going to be important as well. Thats outside of medical. The federal government has not made a decision. If they repeal, the next impact will be at the state level. So i encourage us to Work Together and to be mindful of writing local legislation too quickly before we know what the federal and the State Government will do. We want to work with you closely on this, so we are working together to protect the services. Well continue to monitor this on a daily basis and well continue to work with all of our Health Partners at the federal state and local levels as we turn as we determine the impacts of responses to the health care challenges. The mayor has just sent out a letter to all of the Health Care Partners in the city to talk about bringing them together to have the conversation. Of the 133,000 people that have received the benefits from the aca, 25 of those are within the departments services. And so 75 percent of those are within our other networks, and so its going to be important for us to work with the kaiser, and cpnc to make sure were working together to ensure that were able to continue to provide care. You mentioned some of our stakeholders and partners in Public Health outside of the department, has there been a calling organizing between dignity, and [inaudible] hospital to begin to talk about what the landscape is . Or potential cuts . We will certainly share this letter with you. Im sure the Mayors Office will share it with the board. We sent it out today. I havent seen it yet. Well make sure you get a copy of that. It is discussing about what we did in the past when we had a large uninsured population in the city. My question is, where are the other companies . The cpmc, dignity health, are you talking to them well bring them together and as you know, this is all in the process and theyre insured individuals. Weve benefited from having the aca and people with insurance getting benefits, but [inaudible] that we will be taking . Colien will give you more details and what it looks like and were here for questions you may have. Speaker thank you. Good afternoon, supervisors. So i have a short presentation for you on some more of the details of the repeal and replacement could you eye into yourself. Identify yourself. Colien, the director for planning im on slide 3 which is the proposed timeline which seems to change every time i update the timeline, but today is the light blue circles is where we are today, the house of the house of representatives had independent indicated that they indicated they were going to have a vote on the replacement plan. Theyre delaying the vote until tomorrow, but that hasnt been finalized yet. The director garcia mentioned between the time that the house of representatives passes legislation, if that occurs, and the time that the majority of the previsions going into effect is a long time, so its 2020 when the majority of the previsions of the repeal and replace bill go into effect. So just a little bit about the Affordable Care act to give you context around what the American Health care act would do, the Affordable Care act was signed into law in 2010 and it does two things. It requires everybody to have Health Insurance and then it gives more opportunities for individuals to get Health Insurance. So the requirement that everybody have health care is called the individual mandate and theres three ways where it gave people more opportunity to get that Health Insurance and meet that mandate and the first was through their employer and thats the employer mandate, requiring certain employers to offer coverage to their employees or face a penalty and the second one is the Health Insurance exchanges. Ours is called covered california in california. It gave subsidies to low and moderate individuals to buy Health Insurance on those exchanges and the third one is for the medicaid adults and they can cover all low income adults where certain populations were covered before. And in San Francisco, we have seen [inaudible]. Director garcia mentioned, 133,000 san franciscans gained Health Insurance under the affordable clear act. 93,000 got medicaid coverage and that doubled the Medicaid Enrollment in San Francisco. Were over double. 30,000 got insurance through covered california. 80 of those 4,000 got those are people who have 400 of poverty income or less. It cut or insurance rate by half. The lowest insurance rate weve had in San Francisco. It has caused more people to more san franciscans to assess their health as good and better and fewer san franciscans report delaying the care that they need. The American Health care act is the federal governments repeal and replace proposal that is currently before the house of representatives. And as it was as its proposed it would repeal the individual and employer mandates. It would repeal the income based Exchange Subsidies and replace them with subsidies based on age. It would reduce federal funding to states like california that opted into the Medicaid Expansion program. This is affecting the 93,000 san franciscans that got medicaid. It would pre right now, the way medicaid works, if the state or local government spends money on a medicaid individual, then that expenditure is entitled to be matched at the federal level, 50 cents to 50 cents and we would cap the total amount of money available to california and we would need to restrain expenditures within that cap. The board may have heard that additional changes to the American Health care act were discussed in the house of representatives on monday and may be adopted as well and these would impose additional requirements on states related to the Medicaid Program. So director garcia mentioned californias role and this is really important to note here because the way that california responds to what ever is passed, if anything at the federal level is as important to the Health Department as to what is passed at the federal level. So if the hca has passed in its current form, its certain that california will receive less medicaid funding. In fact, the department of Health Services issued an analysis yesterday that says that beginning in 2020, california will see 6 billion less in revenue after the passage of the Affordable Care act or the american care act in its current form. That would rise to 24 billion in 2027. And with less medicaid funding, the state has some tools within its tool box it can use to reduce its Medicaid Budget and the ways that it could do that if they chose to take cut in the Medicaid Program is reduce Public Health to reduce eligible for services, so not covering everybody who is currently covered today or to reduce the set of Services Available to medicaid beneficiaries and right now, california offers a generous scope of medicaid services, but theres optional benefits that states can choose to reject to bring back cost to the covered population. So the potential impact its not known as youve heard the control discuss earlier, these are still proposals and theyre in negotiation. So it would depend on what the final bill is, if its passed as well what californias policy response would be. But it is certain that it would it would impact californians who gained coverage under the health care act. Also as director garcia mentioned, of the 133,000 san franciscans with aca insurance, a quarter received their insurance through Public Health and others receive their insurance through Health Systems in San Francisco. All these individuals would be at risk of losing their insurance or see their coverage eroded and as director garcia mentioned, in order to preserve the gains we have made over the course of the years that we need to work with our Health Care Partners throughout the city to promote continuity of care and access to health care we have long held in San Francisco. Just one slide on the president s skinny budget as control rosen felled, mentioned its low it proposed an 18 decrease in the health and Human Services this doesnt include medicaid or medical spending so it decreases in Discretionary Spending and the specifics on how it is achieved, its not indicated. It does help with but it does not provide any detail on how it would continue to support those programs. And then what were doing to prepare, so advocacy is still our number one our activity at the moment to oppose reductions to the American Health to the Affordable Care act were in communication with the state lobbyist and making with our state and federal delegations and the associations that director garcia mentioned. Were trying to maximize the current use of our program. So right now as chairwoman cohen said, nothing has changed. There has been to changes to the Affordable Care act and no changes in reduction and services and we want people to remember that and take advantage of the Services Available to them now. Were educating our patients y and clients about that. So people should make dentist and doctor appoint manies now. Y appointments now. Were analyzing the Health Impact in here San Francisco. Im colleagues, any questions so far . No. Thank you for the presentation. Okay. So next, were going to hear from the Mayors Office, brian chiu has a presentation on his updates. Brian chiu with housing im here with benjamin, director of we have a few slides for you that gives you a little bit more information about what we do with our lock grant program. So our cd bg program is a federal entitlement program. We receive 16. 4 million. Its through a formula. We receive 3 other formula grants, one of which was also targeted through the president s skinny budget. We have cd bg and home as you see in your pocket. You have emergency solution grants which focus on Homeless Services and housing opportunities for person was aids. Those two federal Grant Programs have not yet been targeted for cuts. Im hoping that that does not follow through in this larger budget. Of the 16. 4 million its divided into two primarily areas. One is Affordable Housing development and the second is a list of a variety of services that goes to low income folks. As you can see on slide two, it has Housing Services such as tenant counseling and on evictions. It has work force training. We have an agreement with economic and Work Force Development that administers funds for Work Force Development and economic development, Small Business assistance, a variety of other Public Services and we are the primarily department within the city that provides funding for Capital Improvements to capital facilities and then of course it covers the Program Delivery for our all of our Block Programs and you can see next to each area, the list of potential individuals that would be impacted by the loss of those funds. The next slide talks about our home program. Its a formula allocation we receive. At this point about 4 million that goes directly to fund new multi Family Housing developments. And then just the last slide, just demonstrates the fact we have seen this before, although not to this extent. In the past, the program has had popular broad support in congress. Just in terms of the timing of how this would work, so the proposed budget for federal fya team, we would use those funds for our service grants that start july 1st, 2018. So right now. For 1718, these cuts would not impact us. It would be for our city 1819. Its about the timing of how we receive information about this in the past, to your question, supervisor cohen, in the past, congress has not agreed on what the appropriation should be for this. We tend to get some advanced notice through the house subcommittee on transportation and hud funding. Usually, i would say october, november, we get information from the house subcommittee. Around that same time we get information from the Senate Subcommittee in the past. What we have done, we look at what the president s proposed budget is, and what the house and Senate Subcommittees look like. Sometimes theyre widely divergent and the extreme example was eight years ago where the senate proposed, i think maybe like a 5 cut and the house proposed a 60 cut. In the end, it had to come through the joint committee. By the time they went to the joint committee, they brought it up and the overall cut was about 10 . The federal budget is on a resolution. Were at the end of the march so we havent received allocations for funds that would start july first, but continued resolution extended through april 28th. We hope that congress will then take official action which would then give us our formula allocation we will use for 1718. I think the hud regulations require that the formula allocations be given to us, i think around june 15th. So hopefully congress will come together and make that decision. So we will have some time before the citys budget process starts because again, if youre making your decisions in spring of 2018, we should have some indication through the fall of 2017 what that might look like. I guess i will echo what my colleagues have said that its premature for us to figure out what well do. We dont know if its 16. 4 million or 3 or 5 . We work with our membership organizations and were a member of the national they have seen this coming. They maintain long standing relationships with those relatives from other red states. I think one advantage that the community it serves owe over state receives an allocation and every city can apply directly or through an application through the state april cajun, so we feel confident that this is over reaching. I will say that its not impossible that we will see some decrease through that. The home program had one bad year when it did receive almost a 40 cut in one year. And so we do have concerns, but as we move forward with this process and as we get further information from our colleagues in dc, well keep you posted, again. We have reshot to our federal delegation and our federal lobbyist to keep us informed as things change. We have a little bit more of a window than the aca proposal, but well keep you informed as we go forward. The budget for our 1819 allocation of cd bg of course comes to you through the expend resolution, so youll see that come to you next march or april of 2018. So you can make your comments on that. Thats it. Thank you. Okay. Let me see any questions. President breed, thank you very much mr. Chiu. Come on down. Chair cohen, rodriguez, San Francisco department of the environment. Thank you for the opportunity to present, this afternoon on the implications of the proposed the president s skinny budget on the environment. Normally when i come to Budget Committee its standing at the podium asking you to approve and accept and expend given the president s budget. Youll probably see lots of me given that a lot of opportunities that the city has gone after in federal funding opportunities are dramatically dropping in the president s proposed budget. Excuse me. We were wondering if you had a presentation for us . No presentation other than youre going to walkthrough. Do you have slides that youre presenting . Not slides, supervisor. Okay. With respect to what i wanted to share with you this afternoon is the policy implications of the president s proposed budget and cuts will have as has been referenced and shared already. Likely youve heard the Environmental Protection agency is getting the brunt of the Trumps Administration cuts with the 31 cut of 2. 6 billion. The largest percentage reduction represents largest reduction of any federal department or agency, and brings epa funding to the lowest level in 40 years. What does that mean for San Francisco . The bay area . A couple of things. It halts are for example, the San Francisco bay, napa river and water shed clean up efforts including habitat they go after companies that are he leasing toxic fumes into the air or dumping sewerage into the bay. Epa staffing cuts will impact the cleanup of 130 california Super Fund Sites maybe here in the bay area. It will impact all of their research on chemical, pesticides, and other work that they do which have a direct implication on the programs and policies that San Francisco manages. Protecting the environment and Climate Change and addressing these issues is not just in the epas jurisdiction. Like in San Francisco, many departments play a role in Climate Change. With respect to looking at the president s proposed budgets around the area and its notable and i wanted to share a couple, the proposed cuts at the department of commerce in particular, theyre slated for a 16 budget decrease. The president target programs in particular the National Oceanic and atmospheric, and they provide grant resources to assist communities and local governments in the resilience to Climate Change. Some of the impacts to San Francisco and the bay area, and the tide station and the oldest operations tidal gage in the western hemisphere. They collect information thats critical to San Francisco and the entire bay area to understanding changes in local tides due to local global sea rise. They have support to the San Francisco bacon San Francisco relies on Coastal Management agencies to maintain coastal access and protect our Coastal Resources. So significant impacts there. Looking at the department of interior, theyre responsible foremost federal land. And they manage 75 of federal land. Theyre expecting a 12 budget decrease. What we see with the cuts at the department of interior and the impact here is really a policy shift that this administration is making from resource protection to resource extraction. Well be seeing more details as the president unfolds additional policy statements. But the department of interior and for us in San Francisco, it plays a major role. The National Parks service manages the Coastal Resources within the Golden Gate National recreation area, including [inaudible] field, and baker beach. And these bay and beach habitats protects San Francisco from the impacts of Climate Change, serving as a buffer between [switching captioners] as you can see a lot of these different cuts and the different departments represent things that are significant its unfortunate the cuts come at a time the programs are yielding significant results. These investment the departments have made over the last several year have yielded significant results. For example in 2015 solar employment had over taken oil and gas and coal employment as jobbings contributor equally Electricity Generation and capacity in the United States came from solar more than any other source when you look at these cuts others are slated for targeting the vulnerable. The home assistance that is managed is for reduction and elimination that helps low income family with wter ization is also slated to cut so specifically to the Department Environment controller shares we receive grant funds from the department of energy, epa, approximately 1. 3 million what the proposed budget cuts mean for our department is opportunities to apply for Additional Resources these representatives funds, that give the department the opportunity to be creative in working with major academic institutions to provide this board with good policy that is rooted in science in what is effective for what moves greenhouse effect emissions down. Also the federal cuts are specific to policies. So, for example, the department of energy the president is suggesting elimination of the star program its a volunteer program we build Public Policy on those. San franciscos current building efficiency ordinance relies on the Energy Star Program as our benchmarking component that program goes away we will have to come back to the board and look at ordinance of using federal standards of pressurements for success and finding alternatives and replacements the only thing i wanted to close with is the irony last week when proposeedded skinny budget the same time a new report came out indicating programs and policy and regulations in place in the United States we were able to hold down our emissions which impacted globally which we didnt see increase where we see increase nationally were going in the wrong direction. Its going to be challenging as you heard from my colleague and the other departments the environment sits with all of the other agent cease and try to gain the attention of delegation who are working together this mayor and the board of supervisors you both resolve to continue to move forward on progressive climate reduction effort and continuing to keep that positive. We thank you for your leadership. We will need that leadership Going Forward given the policy and budget cut implications we can expect in the future thank you very much. Thank you very much. Any questions . Okay were going to move onto the Barbara Smith did you have presentation or public remarks . Then i have questions for Public Housing. Good afternoon Barbara Smith acting director of the Housing Authority i will be brief. Its a long hearing but its very important to us, we have worked very hard to provide descent services to our residents within a very lean budget and preliminary estimates this is based on the president s budget blueprint that said 35 billion dollars is cut from suddens housing there. Excuse me can you repeat that again and also identify your title. Yes sorry. Barbara smith acting director, of the San Francisco Housing Authority. Were very concerned about this budget. The president s blueprint did say there would be 35 billion cut in housing subsidies there was information pr vieded to the Washington Post we dont know, this is the early stage of the budget process. But Public Housing in that information was expected to receive 32 cut which is the loss of 1. 5 million and would equal to about 15 staff persons a lot of our staff are maintenance workers. Also workers who administrator the program and meet all the hud requirements that would be a major blow to the Housing Authority. The capital fund is expected to receive a cut of about 1. 5 million. That would reduce it from 4. 4 to 2. 8 milli 2. 8 million from six were managing there are enormous costs keeping up with the minimal capital bones to keep the property safe and descent for the residents there is probably going to be a cut in the housing choice voucher administrative fees which means a loss of staff and difficulty keeping up with renting freezing with the landlord and all that is required for the programs these are preliminary were active in bay area housing organizations and National Organizations were going back to washington next week to meet with legislatures and talk with them about the continuing Affordable Housing programs. And the devastating effects that the suggested cuts would have on Public Housing we are most thankful we were able to convert 28 of our properties to the rad funding this past year on schedule and that working with a lot of city agencies especially the Mayors Office of housing and Community Development will protect 28 property and put them into a Different Program that is less likely to have direct impact on the ability to maintain the property and the residents who live there. So briefly, that is where we are with this budget situation. Thank you very much. Questions . Supervise . Thank you for your presentation. I do have a few question based on your presentation i wanted to go back to capital cuts, specifically, your budget is 4 million and you anticipate 1. 5 million cut are we talking about capital as it related to real estate or in terms of the properties themselves . Those are funds that we use to repair collapsed suer lines transfermer where we have to do work on boiler say, at potreroo with building serving two units. Maintenance for properties. Are there any other dollars for maintenance besides these dollars . The Housing Authority is pretty much totally depend ant on the federal subsidies that is the main source of funds we have for capital work at the properties. Then we have a maintenance budget under operating funds really, that helps us keep up with the daytoday small items that break and clean up of the properties. Actually its not enough even do that from my understanding. No. So these cuts are going to be more devastating can you tell me how the rad program has helped with that. Because one of the Biggest Challenges Housing Authority face in terms of all of its properties we know based on assessment of the properties there was at a time a couple of years ago over 260 million of deferred maintenance which is why a lot of the work wasnt getting done. Since the rad program have you done any analysis to understand whether or not that figure has been reduced and if doing this program has helped considerably. As it relates to capital work for the properties . Well it was greatly reduced the overall Capital Needs now were managing u14,000 units converted to rad program that can leverage 1. 2 billion to fix up those property with the units we have left of course the operating budget was cut and the Capital Budget was cut so that we get pretty much the same amount per unit were struggling with a low level of funding for each unit of Public Housing were managing. That is really the challenge we have to work within the funds we have available to keep up with very old property deferred maintenance. The Capital Needs were growing at a much faster rate than Capital Funds from the federal government already. This kind of cut is going to really impact to keep everything working during the hope build sf process. Yup that is a scary thought you come so far getting the entire process and getting petrero. Hill almost over the finish line. Particularly sun sunnyvale. Working with water heaters not working this is very, very serious. This doesnt impact it doesnt rise to the level the media and press may not cover this. This particular cut is because its concerned to me how fragile people are after publicing house its two steps forward one step back. We have come so far in rebuilding with rad program and getting these housing structure to an acceptable level people can live and be healthy and take pride in where theyre living. At some point we need to have creative ways to partner with folk anytime the Business Community and other parts of the Development Community to begin to organize and raise funds im talking about stuff that will scratch the surface like that water heater we need to relace. I think its in Alice Griffith. The boiler that 7s 25 of the households it cant be repared its underground boiler with underground pipes that are corroded and decaying were just a little bit ahead of the construction process. So we still have all of these residents were trying to serve. But the new housing isnt quite there yet so we have to do our best with what we have. Were working with other agent cease and the city as well to try to prioritize our Capital Needs and identify any funds that are available. We have a few things were working on that will bring in a little bit more funding with the six site were transferring them to rad so they can bring a little bit of cash flow to help with operations. Thank you. Supervisor cohen can i add to this . I think you bring up a good add about partnership is not just about the cuts but possible solutions how we can prepare for what we know is to come. When i think about all the work we have done on Public Housing and how far we have come, it is exciting to ride passed roberter pits and to see the work being done and the excitement of those moving back to the units it is amazing i want to continue that but i want to think creatively what this means for our future and the possibility to do more you know how desperately i want west side courts to be rebuilt its possible not only to do it but to add 2 or 3 times more units on that particular block more importantly in a way that doesnt displace the residents who live there and i think the reason i wavent to bring it up similar to Alice Griffith around the same time as well as burnal and alamani these places and conditions and the amount of money we need to spend in order to get them in a state of descent repair with west side courts its money down the drain it helps right now with the conditions that sadly some people live in but its not a permanent solution i want permanent Creative Solutions and the possibilities like i said, looking at west side courts and tripling the number of units were doing one side and the other side i want us to think more creatively outside of federal and public dollars in general. There is a better way for us to start making some changes because we have the land and how do we take it to the next level . Those are some of the things i want us to start thinking with is the San Francisco Housing Authority and the Mayors Office of housing and trying to put ourselves together to do that with rad and hope sf will be addressing Properties Like west side courts that could benefit from being built housing and mixed income. Alice griffith. Is the perfect example were building the units and no displacement and the residents will be moving to the newer units and having their own priority at the units is wonderful i want to make sure and remind people of plaza east where i grew up. 300 units removed and only 200 rebuilt. That was a huge mistake where there could have been an incredible opportunity. I want us to think about those sorts of things moving forward and taking advantage of properties that provide housing opportunities for people. Thank you very much. A couple questions for you garcia if you can come up and for you colleen dont go too far. With health care is there something people can be doing right now. Yes they should be continuing to come to care that is the most important thing one of the initiatives i will be working on hard is hepsi right now with medication that eliminates hepsi you dont get that much in health care to eliminate that disease and working with the health plan to ensure those seeking that kind of care that is one time medication they can and that hepsi will go away then when you think about the cloud of sanctuary and make people feel safe to come to care that is one of the areas we will communicate and sent out flyers to all of our clients to continue to come into care and working with the providers to do that. That is part of what we need to do in bringing the entities together in terms of all of the providers to really make people feel continue to come and in the next two years we do a lot of service and care as you know Preventative Care is one of the most important things we can do on tuesday we had a conversation about fluoride and also issues of trying to get to little kids and putting flour id when you talked about denial care that will impact future generation those are things we have to focus on we dont want people to be fearful of coming into care we need to work on immediately. For what reason it wouldnt be fearful. Sanctuary city. That is part of the urban ewe fearful taking Public Benefit they might not have care now because of the confusion in the conversation. What have you done or we done as a city to communicate those. We have done a campaign its safe to come here communicating to patients how important it is to come to care. Were working with the Mayors Office with cbos and providers to ensure there is safe coming in as you know the city has passed a sanctuary law. That is for certain immigrant population for the entire community its important for us to continue to talk about continuing to come to care. Heres a hypothetical one if congress were able to get their act together and were able to pass the American Health care act, how would that impact people immediately . First of all, it wont be seen until 2020. So there is no immediate. Right. Then it goes to the state. Thats what we will have to advocate at the next level there will be a cap on resources medicaid will be impacted and we will have to work closely with the state we are working with michel cap that have mills at stake and having conversations with los angeles this week to have the conversation what were going to do with the state piece in terms of what strategies theyre looking at for 100,000. We quantum fide millions would be left out in the cold how do you quantify that . Do you have any idea what it would cost the city and county of San Francisco should this measure go forward we know that 125 million is part of what we get for the Medicaid Expansion were using that data, that base it depends on what the state does and if they reduce the match for us or reduce services of that 125 hl there would be a portion of that impacted. So when the legislation gets passed, what is the time gap between legislation passing and the city of San Francisco needing to begin to pay . It would be 2020 and potentially passed that because we will still have to see legislation that will come from california as to how theyre going to organize their system. So we do have a couple years our strategy right now is document, bill efficiently, increase the revenue we have, see if we can do reserves to ensure we do have reserved for these cuts and continue to help people come into care, come into Preventive Care stay within their medical home at the same time we are working with medicals locally and the inshurd sured and before aca and with everyone. Thank you garcia i want to call up mr. Chew a couple questions on block grant you see over that program, right . Yes so needles to say you send out a letter to Nonprofit Organizations explaining their cdbg grants were not going to be extended no . No. We didnt send a letter. Because we will have money through the current formula allocation that will be in place for 1718 this impact will not hit until july of 28y. A lot of the impacts were looking at will start in next fiscal year is that right. Yes july 2018 to june 2019 when is the cut will hit our city. Our portfolio and the department of Public Health in 2020 we just heard. Correct. What can the nonprofits do now to stabilize themselves for the impending or potential hit. I think the minute the skinny budget came out, we have begun to strategize how do we work with cbos to put them in the best position. We have a number of our addiction defense efforts are funded through this akin to director garcias preventative work if we prevent hundreds of evictions through funds and lose that ability the cost become intense these folks are homeless or moving out of the city we dont want that to happen we had some conversations with some of the entities for example we had a recent conversation with the new director of equity of Northern California grant makers that is the Umbrella Organization of philanthropy we talked the day aphrodite skinny budget came out how is private fill anthro pea however i feel theyre in a they may be able to weather that cut and smaller organizations who do rely on our funds what we like to do is partner with philanthropy to figure out what they can do to better put themselves in a place to access nongovernmental sources its highly unlikely in the worst Case Scenario were able to 514 million for the city we can liverage other sources in brief i would say one of the primary efforts is work with the organizations identify the ones that need assistance and not take those cuts and put them in place to access those other dollars more effectively. I appreciate the thoughtful answer. Supervisor fewer has a question for you. Turn your mic on. So sorry. So, this is really frightening actually as we look at proposed skinny budget and within one hour getting bombarded with all of the possible cuts. To me, the elimination of the block grants its terrible, but the amount i fool like some of it could be absorbed a little bit from our general fund or as you said maybe some of the organizations that are larger might be able to, i just feel after the last hit many cbos went under they couldnt survive it. With the increasing rends for them theyre having a hard time, too. What frightens me the most are budgets that are heavily depend ant on the federal funding personally im terrified about the cuts to the epa because its not just us, its the whole world. Its the future generation which is so frightening. But im thinking that with the block grants, that is the one that is coming so immediately because as we heard from garcia that is 2020 times for the state. Although, that is such a huge percentage of the Public Health budget. That is so frightening i feel like with the block grants we might be able to do something that is because its 16 million, so crazy im talking like 160 but 60 mile we may be able to absorb it. What i wanted to ask the controller if hes here still, tank you, is you mentioned by may , we will know a little bit more about the skinny budget and what is really serious and what is not so serious because theyre going to be bantering and back and forth and trading and this and that i have never been through a budget cycle in the city so my question to you is, does that give us enough time to adjust our budget to prepare for the cuts we think will be immediate and the most painful . Supervisors what happen in may and early june the president will release detailed budget and remace skinny with a full budget from the president we can use that to estimate the impacts if thats adopted we wont know whether that budget is adopted at the federal level that is action by congress to approve. That action will stretch for months after that. Well passed the time line we will be adopting a budget locally we will have a better sense of what impacts could look like at that point from the federal budget cuts but we wont know xa exactly will so the mayor and the board should be considering how you deal with that adversity or uncertainty in this years as budget process the city has used in the past strategy of creating reserved or allowances where we dont know the specific reductions but have an order of magnitude the losses set aside money as you know about specific cuts later it will reduce your requirement to reopen the budget and make cuts on the fly. When we had a bad budget time at the School District and much smaller level, i know, we did set aside a reserve. It was hard to do actually but we anticipated a bad couple of years not just one year but a couple of years they were bad you remember we had to send 700 lay off notices which is painful. That is good advice thank you very much. Thank you mr. Chew for your presentation and to all of the Department Heads that participates thank you very much. We will see you soon. This is only the beginning. Okay colleagues is there last minute discussion . We need to take Public Comment. If there is Public Comment do so, come on up. Welcome. Hello im dena lawn for policy and advocate at the San Francisco consortium and here to talk briefly about our role in providing health care for our mainly lower income San Franciscoians. I want to emphasize we worked closely with the San Francisco department of Public Health we have been sharing information about what makes our Department Share most of the patients are hospitalized at the agenda in terms of primary care we serve 100,000 patients. That is over 1 10 of San Franciscos population were nonprofit were independent of the city we dont get a lot of city funds we work closely in our networks most of our money, most of our revenue come fatherson the federal and State Government for medical we have done a great job enrolling in medical which is great unless the federal government retreats from this. We also have something called the 330 health grant which gives basic money to the Nonprofit Community health centers. That is up about 70 of our funds are up in september of this year were going to washington to fight for those. Im here to say its a tremendous impact even though its not tral funds and not give up the fight on the federal side and work closely together on the state side. Our first fight is to preserve as much medicaid and funding at the federal level if it goes to the state we got to work with the state to keep the expansion thats what keeps the primary care going. I assure you, we are not giving up a fight. If there is anyone one else come on up so we can hear from you. Good afternoon. Im richard im the executive director of conner house. I want to thank you for the discussion you have had this afternoon i want to say quickly my organization is part of several other local provider groups Nonprofit Organizations the Human Services network, the support of Housing Provider network choo choo so all of us who are watching what is going on down over the horizon in our funding streams are the same things you have been talking about. A lot of us have more immediate things happening now where the Business Community is reading the paper and when we go to reapply for Credit Facilities at our bank, even when we have a conversation with one City Department thats depend ant on assuring continuity of funding for long term projects theyre not necessarily communicating with one another we have a great need for looking at Business Continuity where decisions are being made now that effect our long term regulatory agreements on housing building we own Credit Facilities that allow them to operate the time line in which contracts get renewed and outside Funding Sources and donors and granters ask questions about viability we need to answer those questions they have and many times w efind ourselves saying, well, you we need to talk to the city. The
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