Another question occurred to me, related to the previous item, do we have a sense about how many money fast tracking navigation centers, fast tracking beds, fast tracking shelters, how much through, how much construction dollars its going to cost through the emergency ordinance. Any kind of expectation on the cost . Particularly paying attention to tenant improvements. Melissa. Thank you. Mayors budget director. Great question, supervisor. I will have to get back to you on the difference if we had not fast tracked versus fast tracking. What i can tell you, for the two sites, the 10 million covers all the onetime costs of getting the sites ready and covers the current year, almost all the operating costs if the sites are up and running, as fast as we are hoping, and i wanted to thank supervisor ronens office and the supervisors for moving this forward. Pleased to get state funding what otherwise would have been generalized costs. Ill get back to you on that. Its a great question. Colleagues, no questions and no one on the roster, open up to Public Comment. Yall call it silly hall. Now, i agree with whatever you talked about. I just left your office, to let them know, please dont do that to me again. I support whatever yall are doing for right now. So therefore, lets talk about, i support it. Whatever yall are talking about. Now, i could speak Public Comment. Bottom line, this city and county by the bay, i want all yall to hear this. Policy makers and all of yall politicians, beware, black History Month is coming up in a couple week or so, the shortest month of the year. But my sister over there, i respect, all of that, but until yall give me my respect, you can sit there and frown all you want. I was here before you came, ill be here before you go. You are a cute lame duck but i dont give up. Now, my name is ace im on the case. Im going to be talking from here on out about the black community where our population is going down. One last thing before i say this. Whats going down in this town the black population is going down but i want to know who, who, who, who whos in control right here, ooh, ooh, in San Francisco, yall hee hee hee hee, the city by the bay hey, hey, did you hear what i had to say now, 20 seconds left. Now, let me tell all of yall, im going to respect everyone, im a grown man, got kids, got a lot of the politicians dont have kids, they act like they are for the community. My name is ace, and im on this case. Public comment is closed. Item seven, please. Make a motion to pass nine. Motion made by supervisor yee to be passed. Positive recommendation to the board. Thank you. Item seven. Appropriating 1. 1 million from the airport, and Police Training support facility capital project. Ok. So, we have our friend from the airport, kathy wagner back with us today. Happy new year, kathy. I think you are going to be speaking also on item eight as well. So, well take seven first and bring you right back up immediately. The floor is yours. Thank you, chair cohen, members of the committee. Airport is speaking your approval to appropriate 1. 1 million in airport asset funds, the airport collects airport forfeiture funds. May be used for Capital Projects and other expenses related for narcotic and 776,000 in Asset Forfeiture funds, and new amount, for total of 1. 1 million to use towards the replacement for training Training Facility at the airport. The airport currently maintains an existing Police Training facility, but it is past the successful life. It passes restrooms and in need of improvements. Improvements for indoor simulator room, observation tower, shooting range extension and improved infrastructure for nighttime Police Training. The airport Capital Improvement plan does include funding to replace the current facility, at a cost of 7. 2 million. And it will be funded with general airport revenue bonds. The total project increase would be 1. 6 million, including the 1. 1 million in Asset Forfeiture funds before you and half a million in airport funding. Budget analyst has recommended approval but i will be happy to answer any questions that you have. Thank you. I see no names on the roster, well hear from the budget legislative analyst. Yes, as miss wagner said, use of Asset Forfeiture funds for the new Training Facility, Police Training facility. The plan includes 7. 2 million for the facility. The Police Department actually asked for additional 1. 6 million in improvements, of which 1. 1 the Asset Forfeiture funds and 500,000 other airport revenue funds. On page 16 of our report, table two, a detailing of what the additional 1. 1 would be used for. These funds have been approved by the department of justice and the Airport Commission and we recommend approval. Thank you very much. Appreciate that recommendation. Colleagues, any questions . All right. Go to Public Comment. Public comment item seven. I have a condition. Although im patient, i am impatient of the city and county of the Health Department because of my surgery i had. I support the airport, all that, but we are going to go about whats happening out at the airport. It is discrimination out there at the airport. Go back to history with the Human Rights Commission when they had the cross out there, hanging cross. So, history is there. Im historian. Before all yall was with the airport out there, we had big problems with the blacks. Human rights. Back there when, may he rest in peace, ed lee was working with the Human Rights Commission. My name is ace, yall, im on the characters im not going to waste your time, all i have is a minute or some left. I support the program but the study is still pending. When i get up here and say i support it, im doing it for the viewers because everybody is on files. Everybody, i have dosiers on everybody, you Better Believe that. Yeah, ive been thinking ive been wrong, Walking Around looking like mr. Magoo. But this city and county is in the brink of having a lawsuit that will stop everything out there in the southeast. Out there in the mission bay. Out there in everywhere. Because in the fillmore, as i coin it, the feel no more, not around no more, and everybody look at me like im not around here. Im alive and direct. 33 seconds, i support ya, i keep that going. Just yesterday i had to have the ambulance come pick me up out of the mayors office. I was assaulted by one of the details that are supposed to be guarding the mayor. Can you believe that . Ladies and gentlemen, this is a blues break, they say ace you are not a reporter, you dont have when i get up and speak its for the public and giving them information they dont hear from the conservative papers thats obsolete. My name is ace, damn it, and im on the case. Are there any other speakers . All right. Public comments closed. Is there a motion . Ill make a motion to send item seven forth to the full board for consideration. Passes unanimously. Eight, resolution improving modification of the lease with the United States of america offices occupied by the United StatesTransportation Security Administration at the International Terminal and terminal two at the San FranciscoInternational Airport to extend the lease term by three years and adjust the annual rent to approximately 2 million. Thank you, kathy. Thank you, chair cohen, members of the committee. Proposed resolution before you would approve the first modification to the airports existing lease with the Transportation Security Administration, and extend the term for three years, through october of 2020. The lease rent is approximately 1. 7 million a year for total rent over the entire term of almost 6 billion. T. S. A. Is required by statute to oversee at the airport, including Airline Passenger and baggage screening offices and the airport is also required to offer the t. S. A. The necessary rental space with the fair market value rent. The proposed extension would retroactively approve the first modification to our existing t. S. A. Lease, starting retroactively to november 1, 2017. The Budget Analyst Office has reviewed the lease modification and recommends approval and i would be happy to answer questions. Thank you for being available to answer questions. We are going to hear from the b. L. A. At this time. I do have a question for the b. L. A. You have noted the city allocates free parking to the government leases. Maybe you can talk about that in your analysis. Yes, in, just sort of repeat what miss wagner said, its retroactive to october of 2020, the first year rent is almost 2 million and rent is set by the airport and charges. It has 52 parking permits for t. S. A. Staff at no cost. Our understanding, this is our policy that its at no cost to airport employees. Opportunity cost of the permits is about 1. 4 million per year. But because of the revenues to the airport under the extended lease, we do recommend approval. Thank you, appreciate that. Colleagues, do you have any questions regarding item eight . Seeing none, Public Comment is open. Where i am, the government, im going to be coming up here, let me back in the press room, oh, i support whatever yall are talking about, off the record. But Public Comment is mine right now. And im using this opportunity, ladies and gentlemen, to express my views, getting close to black History Month, talk about everything else. So, black History Month, ladies and gentlemen, yall are going to find out whats going on at silly hall. The black folks from the janitors up to whoever is doing what. A special that ive been trying to do for years, im going to do it this year. Bottom line, my name is ace im on the case, has to be a new beginning, has to be an uproar from the ground roots and brought up. We as black folks, im telling yall, im here at city hall, yall, over all yall. I created that, until you find and put some legislation together to stop me from being up here, testimony, and they are going to try it, trust me, im going to tell the word until i got what everybody else has. White media, asian media, we do not have black media here at city hall. Whats wrong with that yall, discrimination, yall, im trying to tell you at city hall. My name is ace, ill give the 45 minutes back to yall. Public comment closed. Motion to pass out of committee with positive recommendation to the full board. All right. Motion unanimously accepted. Thank you. Madam clerk. Item ten. Item number ten, hearing on the overview of the budget, projections and instructions requesting the Controllers Office and mayors Budget Office to report. Melissa and kelly here from the mayors Budget Office. Be we begin, a couple remarks. So, colleagues, budget season is almost here and the budget subcommittee will be meeting soon beginning in march. Well be trying to identify specifics the boards highest priority budget issues. This will help us identify the greatest needs across the city and focus our budget presentations on the departments that are most directly intersecting with our policy priorities. I believe this will help us bring the Budget Discussion more into open. It will allow us to start conversations earlier, and generally provide for a more transparent process. I look forward to the active participation, not only of the stakeholders, but also colleagues and department heads. And that, transition over to Melissa Whitehouse from the mayors Budget Office. On behalf of all three financial office, we look forward to working with this committee to implement the changes noted by the chair. Mayors budget director, and i wanted to introduce kelly kirkpatrick, deputy budget director, and acting budget director when im out on maternity leave. And we are joined by others, should you have any questions. This was a joint effort putting out the joint report. So with that said, we are going to cover the joint report, in the off year of our fiveyear Financial Plan this year, that means we are doing a fouryear update to last years fiveyear plan. We are going to be then looking forward in some of the existing areas of concerns and future risk and uncertainty, and kelly will give a quick overview of the budget instructions we presented with mayor lee in early december. So, first before we jump in, talk about, two summary slides, if everyone leaves todays, what do i want you to take away . Shortterm, the fiscal picture is similar to this time last year. The committee, here for last years budget, very familiar. So, we had about a 287 million deficit in the march update last year that we had to balance by june 1st. This year, the upcoming twoyear deficit, projected to be about 262 million for the next two years. So, not, you know, similar to where we were in the spring. But i think the thing, i did talk about with the Committee Last year and still on my mind, concerns in the medium to longterm. So, existing areas of concerns that show up in the joint report. And that is around a growing employee cost. The cost shift from the state around the inhome support Services Program and the large and growing number of baselines and setaside. And future risk and uncertainty, areas that im watching and all watching very closely, timing of the Economic Cycle and a lot of risk from the federal government around tax reform, Affordable Care act, budget shutdowns, etc. So we are going to go into a lot more detail on all these items, thats the high level, and when i think about knowing that about our fiscal picture, you know, what do we advise policy makers to do, and thinking about this, we need to continue fiscal responsibility that mayor lee had priced, and the same with this committee in last years budget process, continuing to grow our reserves, limiting ongoing and funding strategic investment. So the capital budget, i. T. , other items to flex up and down if the revenues take a fall and also things that really provide savings over the longterm if we fund them today. Instructions to departments, similar to last year. 2. 5 revenue or reduction targets in the first year, 5 in the second year. No growth asking departments to absorb Cost Increases and strong emphasis again on no new f. T. E. S similar to last year. Kelly kirkpatrick, deputy budget director. Published a joint report in early december, and update to that, update the deficit in march. The report published in december, assumptions underlying the report, it first starts with a base case projection, stating that given current policies as they exist, projecting out expenditure and revenue based on that, should policies change, you know, that would affect the deficit projections, and from there, the revenue assumption, underlying the report, the economy is strong, there is no down turn or assumed in the deficits, that would definitely impact our projections. That Revenue Growth is slowing in the outer years due to constraints. Generally the report assumes growth of benefit costs for employees. Notably, health costs are exceeding the rate of inflation, by quite a clip. And pension costs are also growing at rates that we had not anticipated in previous projections. And melissa will dive more into the details of what is driving that. Additionally, we do assume inflationary costs on personnel. Again, these are projection assumptions. We are mandated to balance the budget by june 1st, so the deficit is, you know, showing that we must bring those in assignment. Additionally, citywide costs assumed nonpersonnel, grants from nonprofits, the costs, we will look into more detail about that, about cost shifts from the state are included. And from a politic perspective, includes funding for the hall of justice exit plan. Melissa stated the upcoming twoyear deficit is approximately 262 million, where we were about march of last year. But, over the fouryear horizon of the report, youll notice the top line projects out the revenue is expected to grow to about 437 million, expenditures are expected to grow to 1. 1 billion, leaving a fouryear deficit in that, sorry, deficit in the fourth year of 709 million, so its driving that gap, expenditure, the largest are the assumption of salary and benefits, making up nearly half of that deficit. And further, citywide operating costs make up about a quarter of the expenditure growth, and that is again inflationary drivers related to nonpersonnel and grants. And then baseline and set aside as we talked about a lot. You know, rapidly growing. Of the 16 of the expenditure growth, nearly threequarters are tied to the m. T. A. And childrens baseline growth. And departmental costs are the smallest pieces of the pie, they are making a bigger percentage than years past. Represented 5 of the expenditure growth, and now its 11 , and that is largely driven by the massive cost from the state cost shift. Great. Drive into a couple more of those cost drivers. So, one thing ive been thinking about a lot, and talked with the C