00:00:22 . >> THE MEETING WILL COME TO
00:00:23 ORDER. WELCOME TO THE MAY 13, 2026
00:00:26 MEETING OF THE BUDGET AND APPROPRIATION COMMITTEE.
00:00:30 I'M SUPERVISOR CONNIE CHAN, CHAIR OF THE COMMITTEE.
00:00:31 I'M JOINED BY VICE CHAIR SUPERVISOR MATT DORSEY
00:00:34 AND MEMBERS SUPERVISOR DANNY SOUDER.
00:00:38 SUPERVISOR SHERMAN WALTON AND OUR CLERK IS BRANT LIPA.
00:00:42 I WOULD LIKE TO THANK KALEENA MENDOZA FROM SAP GOTV FOR
00:00:49 BROADCASTING THIS MEETING. MR. CLERK, DO YOU HAVE ANY
00:00:52 ANNOUNCEMENTS? >> THANK YOU, MADAM CHAIR.
00:00:54 JUST A FRIENDLY REMINDER TO THOSE IN ATTENDANCE TO PLEASE
00:00:57 SILENCE ALL CELL PHONES AND ELECTRONIC DEVICES TO
00:00:58 PREVENT INTERRUPTIONS TO OUR PROCEEDINGS.
00:01:01 >> SHOULD YOU HAVE ANY DOCUMENTS TO BE INCLUDED AS
00:01:04 PART OF THE FILES? THEY SHOULD BE SUBMITTED TO
00:01:05 MYSELF. THE CLERK.
00:01:06 PUBLIC COMMENT WILL BE TAKEN ON EACH ITEM ON THIS AGENDA.
00:01:09 WHEN YOUR ITEM OF INTEREST COMES UP AND PUBLIC COMMENT IS
00:01:12 CALLED PLEASE LINE UP TO SPEAK ON THE WEST SIDE OF THE CHAMBER
00:01:15 TO YOUR RIGHT MY LEFT ALONG THOSE CURTAINS.
00:01:16 AND WHILE NOT REQUIRED TO PROVIDE PUBLIC COMMENT WE DO
00:01:20 INVITE YOU TO FILL OUT A COMMENT CARD AND LEAVE THEM ON
00:01:21 THE TRAY BY THE TELEVISION TO YOUR LEFT BY THE DOORS.
00:01:24 IF YOU WISH FOR YOUR NAME TO BE ACCURATELY RECORDED FOR THE
00:01:27 MINUTES ALTERNATIVELY YOU MAY SUBMIT PUBLIC COMMENT
00:01:31 IN WRITING IN EITHER OF THE FOLLOWING WAYS.
00:01:32 HE MAILED THEM TO MYSELF THE BUDGET AND APPROPRIATIONS
00:01:35 COMMITTEE CLERK AT B R E.A. THAT J A L I P A HAD S F G L
00:01:42 V.ORG IF YOU SUBMIT PUBLIC COMMENT VIA EMAIL IT WILL BE
00:01:43 FORWARDED TO THE SUPERVISORS AND ALSO INCLUDED AS PART OF
00:01:47 THE OFFICIAL FILE. YOU MAY ALSO SEND YOUR WRITTEN
00:01:51 COMMENTS VIA U.S. POSTAL SERVICE TO OUR OFFICE IN CITY
00:01:54 HALL AT ONE DR. CARLTON BECAUSE THAT PLACE.
00:01:58 ROOM 244 SAN FRANCISCO, CALIFORNIA NINE FOR 1 OR 2
00:02:01 HAND. THANK YOU MADAM CHAIR.
00:02:02 THANK THAT CONCLUDES MY ANNOUNCEMENTS.
00:02:04 >> THANK YOU, MR. CLERK. AND BEFORE WE START WE WILL
00:02:08 NEED TO EXCUSE PRESENT AND ROUGH OUR MEN DOMAIN.
00:02:11 >> LIKE TO MOVE TO EXCUSE HIM SECOND SECOND BY VICE CHAIR
00:02:15 DORSEY A ROLL CALL PLEASE ON THAT AND ON THAT MOTION DO WE
00:02:22 EXCUSE SUPERVISOR MANAGEMENT FOR ATTENDING TODAY'S MEETING
00:02:25 MOVED BY CHAIR CHAN SECONDED BY VICE CHAIR DORSEY IF I START
00:02:29 DORSEY AND DORSEY I REMEMBER SADR SADR I REMEMBER WALTON
00:02:33 WALTON I. CHAIR CHAMP I CHENNAI WE HAVE
00:02:38 FOR US THANK YOU THE MOTION PASSES AND BEFORE WE START
00:02:42 AND CALLED ON ITEMS TODAY I WOULD LIKE TO LIMIT PUBLIC
00:02:46 COMMENTS TO ONE MINUTE. >> OUT WITH THAT MR. CLERK
00:02:52 PLEASE CALL ITEMS ONE, TWO AND THREE TOGETHER ITEM NUMBERS
00:02:55 ONE THROUGH THREE. ITEM ONE IS OUR HEARING TO
00:02:58 CONSIDER THE MAYOR'S MAY PROPOSED BUDGET FOR THE AIRPORT
00:03:01 COMMISSION BOARD OF APPEALS DEPARTMENT BUILDING INSPECTION
00:03:05 . PLANNING DEPARTMENT.
00:03:06 CHILD SUPPORT SERVICES DEPARTMENT OF THE ENVIRONMENT
00:03:09 LAW LIBRARY. >> MUNICIPAL TRANSPORTATION
00:03:12 AGENCY. PORT THE PUBLIC LIBRARY.
00:03:13 THE PUBLIC UTILITIES COMMISSION RENT ARBITRATION BOARD
00:03:17 AND RETIREMENT SYSTEM. AS OF MAY 1ST 2026 FOR FISCAL
00:03:22 YEARS 2026 TO 2027 AND 2027 TO 2028.
00:03:26 >> ITEM NUMBER TWO IS THE PROPOSED APPROPRIATION
00:03:30 ORDINANCE APPROPRIATING ALL ESTIMATED RECEIPTS AND ALL
00:03:31 ESTIMATED EXPENDITURES OF THE AFOREMENTIONED DEPARTMENTS.
00:03:35 AND ITEM NUMBER THREE IS THE PROPOSED ANNUAL SALARY
00:03:37 ORDINANCE ENUMERATING POSITIONS IN THE SAME.
00:03:40 >> MADAM CHAIR, THANK YOU AND I BEFORE WE START OUR DEPARTMENT
00:03:44 PRESENTATIONS I WOULD LIKE TO MAKE JUST BRIEF REMARKS
00:03:48 COLLEAGUES AND KIND OF SET THE TONE FOR TODAY.
00:03:52 IT IS THE BEGINNING OF THE BUDGET PROCESS AND THE EVEN
00:03:55 NUMBERS. >> YEARS WE CONSIDER CERTAIN
00:03:59 DEPARTMENT BUDGETS INCLUDING OUR FOUR ENTERPRISE AGENCIES
00:04:03 IN THE MONTH OF MAY DOES GIVE US ADDITIONAL OPPORTUNITY TO
00:04:07 REVIEW THESE BUDGETS IN CITY SPENDING, ENSURE WE'RE
00:04:08 EQUITABLY AND EFFICIENTLY DELIVERING CRITICAL PUBLIC
00:04:12 SERVICES. EARLIER THIS YEAR THE BOARD'S
00:04:15 REVISED OR UNANIMOUSLY PASSES A BUDGET PROCESS MOTION THAT LAY
00:04:19 OUT OUR GUIDING PRINCIPLES AS WE EVALUATE A CITY BUDGET BY
00:04:22 PRIORITIZING SERVICES FOR THE MOST VULNERABLE INCLUDING OUR
00:04:26 IMMIGRANT LGBTQ COMMUNITY SENIORS AND PEOPLE WITH
00:04:30 DISABILITIES. CHILDREN AND YOUTH.
00:04:31 TENANTS AND HOUSE PEOPLE BIPOC AND AFRICAN-AMERICAN
00:04:35 COMMUNITIES AND WORKING FAMILIES.
00:04:38 WE ALSO LAY OUT AREAS OF THE CITY BUDGET AND PROCESS WE
00:04:42 WOULD SCRUTINIZE WE WOULD BE SCRUTINIZING IN ORDER TO HELP
00:04:46 CLOSE OUR BUDGET DEFICIT. >> REVIEWING VACANCIES ACROSS
00:04:52 ALL DEPARTMENTS INCLUDING THE RATIO OF MANAGEMENT POSITIONS
00:04:55 IN TO FRONTLINE WORKERS LEVERAGING FEDERAL AND STATE
00:04:59 FUNDING, REVIEWING LARGE CONTRACT AND ADMINISTRATIVE
00:05:01 PROCESS AND REDUCING ADMINISTRATIVE AND NON
00:05:04 PERSONNEL COSTS. INVEST IN OVERSIGHT TO ROOT OUT
00:05:09 WASTE, FALL AND WASTEFUL SPENDING AND CORRUPTION
00:05:15 AND STREAMLINING CAPITAL COSTS. >> TODAY WE START THAT PROCESS
00:05:17 REVIEW STARTING THAT PROCESS BY REVIEWING WOULD BASING ON THESE
00:05:24 PRINCIPLES AND PRIORITIES. I LOOK FORWARD TO HEARING FROM
00:05:28 ALL DEPARTMENTS AND FROM EVERYONE HERE INCLUDING BUDGET
00:05:32 STAKEHOLDERS AND OF COURSE MAYOR LURIE AS WELL AS ALL THE
00:05:39 PARTNER CITY PARTNERS WHEN. >> WITH THAT BEFORE WE PROCEED
00:05:44 TO DEPARTMENT PRESENTATION I WANT TO INVITE MAYORS BUDGET
00:05:47 DIRECTOR SOPHIA KETTLER UP TO START US OFF.
00:05:55 >> GOOD AFTERNOON. THANK YOU SO MUCH CHAIR CHAN
00:05:59 AND MEMBERS OF THE COMMITTEE FOR HAVING US HERE TODAY
00:06:00 AND FOR HEARING THE MAY 1ST DEPARTMENTS.
00:06:03 >> MAYOR LURIE IS HONORED TO PUT FORWARD THE FIRST PART OF
00:06:07 OF WHAT WILL BE KIND OF THE NEXT FEW MONTHS OF BUDGETING
00:06:11 THE MAY FIRST BUDGET COVERS 13 DEPARTMENTS ARE FOR ENTERPRISE
00:06:16 AGENCIES AND NINE LARGELY SELF-FUNDED DEPARTMENTS.
00:06:20 AS AS CHAIR CHAN NOTED, THIS IS KIND OF OUR HISTORICAL WAY OF
00:06:21 OF BREAKING UP THE TRUE GENERAL FUND POLICY CHOICES FROM KIND
00:06:27 OF HOW WE THINK ABOUT THAT THE MOBILITY AND THE INFRASTRUCTURE
00:06:35 OF OUR CITY AND SO IT KIND OF I THINK THAT THE MAY THE MAY 1ST
00:06:40 BUDGET SOMETIMES GETS MORE OVERLOOKED THAN IT SHOULD.
00:06:43 >> BUT I THINK THERE'S SOME REALLY INTERESTING STUFF THAT.
00:06:44 THAT I'M VERY EXCITED TO HIGHLIGHT.
00:06:47 FIRST I WANT TO REALLY ACKNOWLEDGE AND APPRECIATE THE
00:06:51 HARD WORK AND LEADERSHIP AT THE SAN FRANCISCO AIRPORT.
00:06:55 SFO IS IN GREAT SUCCESS IN BEING A TREMENDOUS AIRPORT
00:06:59 HAS HAS LED US TO AN INCREASE IN THE AMOUNT OF.
00:07:02 >> IN THE PASSENGER GROWTH WHICH AS A RESULT GETS US MORE
00:07:06 GENERAL FUNDS DOLLARS SO WE ARE SUPER THANKFUL FOR THAT REBOUND
00:07:10 FOR THE HARD WORK THAT THEY HAVE PUT INTO BUILDING WAS AN
00:07:14 AMAZING SYSTEM AT THE AIRPORT AND KIND OF LEADING TO THE
00:07:18 CITY'S RECOVERY OVERALL. >> DBA IS FULL GRANTS PORTFOLIO
00:07:22 IS FUNDED. THIS IS SOMETHING THAT WE HAVE
00:07:25 BEEN KIND OF LIKE WE HAD OVER THE LAST FEW YEARS BEEN
00:07:28 CHIPPING AWAY AT LOOKING FOR GENERAL FUND SAVINGS.
00:07:30 I THINK THIS IS SOMETHING THAT THE BOARD FELT.
00:07:32 SPOKE VERY STRONGLY AND LOUDLY ABOUT LAST YEAR AND MAYOR LURIE
00:07:36 REALLY HEARD THAT AND THIS BUDGET PUTS FORWARD A FULL
00:07:40 FUNDING OF THAT GRANT PORTFOLIO AT THE DEPARTMENT OF BUILDING
00:07:41 INSPECTION. THIS BUDGET LARGELY THIS BUDGET
00:07:46 LARGELY BACK FEELS PROPOSED REVENUE LOSSES IN THE
00:07:49 DEPARTMENT OF THE ENVIRONMENT AT THIS KIND OF CRITICAL
00:07:53 MOMENTS IN IN OUR NATION IN KIND OF THE THE ECOSYSTEM SO
00:08:00 TO SPEAK OF OF CLIMATE CHANGE. THIS IS SOMETHING THAT WE FELT
00:08:02 LIKE WE REALLY NEEDED TO MAKE SURE THAT WE WERE NOT ENTIRELY
00:08:04 WIPING OUT. AS HEAD KIND OF LIKE IT LOOKS
00:08:08 LIKE IT MIGHT BE FROM FROM REVENUE PROJECTIONS UM THE MTA
00:08:11 WHICH IS KIND OF HAS BEEN WE'VE BEEN LOOKING AT THE FISCAL
00:08:15 CLIFF FOR A VERY LONG TIME. WE ARE NOW YOU KNOW KIND OF
00:08:19 LIKE PUTTING OUR BEST FOOT FORWARD.
00:08:22 THE MTA HAS HAD TO MAKE VERY DIFFICULT FINANCIAL CHOICES TO
00:08:26 COME TO A BALANCED BUDGETS. THEY HAVE MADE REAL CUTS FROM
00:08:30 POSITION ELIMINATIONS, CONTRACT RENEGOTIATIONS AND EFFICIENCY
00:08:33 IMPROVEMENTS. RIDERSHIP IS NOW BACK TO 99% OF
00:08:37 PRE-PANDEMIC LEVELS AND THIS FISCAL DISCIPLINE MATCHES THE
00:08:41 RIDERSHIP RECOVERY IN A SOMEWHAT UNCONVENTIONAL MOVE WE
00:08:45 ARE ASSUMING THAT IN YEAR TWO OF THIS BUDGET THAT OUR OUR
00:08:49 LOCAL AND REGIONAL MEASURES DO PASS AT THE BALLOT.
00:08:53 AND IF THAT DOES NOT COME TO PASS WE WILL HAVE SOME
00:08:56 DEVASTATING FINANCIAL CHOICES TO MAKE.
00:09:00 >> SO I WANT TO RECOGNIZE THAT AS A VERY UNUSUAL THING THAT WE
00:09:04 HAVE DONE IN THIS BUDGET IS IS WE ARE ASSUMING THAT THAT
00:09:07 REVENUE PASSES. BUT AGAIN I WANT TO REALLY
00:09:11 UPLIFT THE WORK THAT. DIRECTOR KIRSCHBAUM AND THEIR
00:09:14 TEAM HAVE DONE TO KIND OF TO LOOK AT THE FISCAL DISCIPLINE
00:09:19 NECESSARY WITHOUT THE TRADE OFFS OF OF CRIPPLING OF A
00:09:22 SYSTEM THAT REALLY AGAIN WILL DRIVE OUR FINANCIAL RECOVERY
00:09:27 THE PUBLIC UTILITIES COMMISSION IS PUTTING ROUGHLY $1.1 BILLION
00:09:33 TO WORKING CAPITAL INVESTMENT EACH YEAR IN THIS BUDGET.
00:09:34 >> THEY HAVE WORKED VERY HARD TO BRING DOWN RATE DECREASES
00:09:37 IN CLEAN POWER F ACROSS GENERALLY THEIR INFRASTRUCTURE
00:09:41 IS MOVING. WE ARE NOT WAITING WE ARE NOT
00:09:42 KICKING THE CAN DOWN THE ROAD TO WELL COSTS CONTINUE TO
00:09:45 ESCALATE NOT FINALLY THE PORTS BUDGET ADVANCES THE FISHERMAN'S
00:09:52 WHARF FORWARD INITIATIVE WHICH IS A REAL INVESTMENT IN A
00:09:56 NEIGHBORHOOD THAT NEEDS IT. THAT IS AGAIN A DRIVER OF OUR
00:10:00 ECONOMIC RECOVERY AND WE ARE SO PROUD OF THE WORK THAT THEY ARE
00:10:03 DOING THERE. >> THIS BUDGET PUTS FORWARD A
00:10:07 PERMANENT S.F. IT IS NOT JUST A TALKING POINT ANYMORE.
00:10:08 THIS BUDGET COMBINES THE ADMINISTRATIVE FUNCTIONS OF THE
00:10:11 DEPARTMENT OF BUILDING INSPECTION AND PLANNING TO KIND
00:10:15 OF MOVE TOWARDS A MORE UNIFIED STRUCTURE THAT WILL ALLOW US TO
00:10:19 BETTER SERVE ALL OF THE RESIDENTS OF SAN FRANCISCO AS
00:10:23 THEY MOVE THROUGH A PERMITTING PROCESS.
00:10:26 THE BOTTOM LINE HERE IS IS BASICALLY THAT WE ARE IN A YEAR
00:10:30 WHERE WE HAVE A TREMENDOUS GENERAL FUND DEFICIT THAT WE
00:10:34 HAVE BEEN WORKING THROUGH OUR ENTERPRISE DEPARTMENTS
00:10:38 OURSELVES SUPPORTING DEPARTMENTS AND THESE OTHER
00:10:39 DEPARTMENTS THAT DO HAVE GENERAL FUND IN THEM ARE REALLY
00:10:42 KIND OF WORKING TOGETHER TO DRIVE THE RECOVERY TO BRING THE
00:10:46 CITY BACK ON TRACK TO WHERE WE NEED TO BE AND WE ARE SO
00:10:48 APPRECIATIVE OF THEIR WORK AND LOOK FORWARD TO ANSWERING
00:10:51 ANY QUESTIONS AS THEY COME UP THROUGH THE DEPARTMENT
00:10:55 PRESENTATIONS. THANK YOU.
00:10:56 MS. KETTLER AND SO WITH THAT I WOULD LIKE TO START WITH OUR
00:11:02 FIRST CITY THE PARTMENT THE AIRPORT AND WELCOME DIRECTOR
00:11:05 MIKE NOT YET. >> GOOD AFTERNOON CHAIR SHAN
00:11:10 AND MEMBERS OF THE COMMITTEE. I'M MIKE MCCAUGHAN, CAT AIRPORT
00:11:13 DIRECTOR AND IT'S GOOD TO BE WITH YOU TODAY I'D LIKE TO
00:11:14 THANK THE MAYOR'S BUDGET OFFICE TEAM DIRECTOR SOPHIA KETTLER
00:11:19 AND MATTHEW PUCKETT AS WELL AS THE BUDGET LEGISLATIVE ANALYST
00:11:23 CARRIE TAM FOR THE PARTNERSHIP THROUGHOUT THE BUDGET
00:11:26 DEVELOPMENT PROCESS. AND I'M ALSO JOINED BY OUR
00:11:27 AIRPORT EXTERNAL AFFAIRS AND FINANCE TEAMS.
00:11:30 ON THE NEXT SLIDE SFO IS RECOVERY HAS BEEN ROBUST IN THE
00:11:35 CURRENT FISCAL YEAR 2026 QUARTER ONE WE'RE FORECASTING
00:11:42 98% OF PRE-PANDEMIC EMPLOYMENT LEVELS.
00:11:43 OUR PATH FORWARD DEMANDS ON SUSTAINED FOCUS AND DISCIPLINED
00:11:46 RESOURCE MANAGEMENT. THE GOOD NEWS IS THAT OUR
00:11:50 FUNDAMENTALS REMAIN STRONG AS SHOWN IN PAST DOWNTURNS
00:11:53 AND CURRENTLY TRENDING VERY POSITIVELY AT THE SAME TIME,
00:11:57 THE AIRPORT ALSO CONTINUES TO FACE SEVERAL FINANCIAL
00:12:00 AND OPERATIONAL PRESSURES AND THESE INCLUDE RISING
00:12:04 OPERATING AND CONSTRUCTION COSTS AND INCREASINGLY
00:12:05 CHALLENGING REVENUE ENVIRONMENT, EXTERNAL ECONOMIC
00:12:08 AND GEOPOLITICAL FACTORS SUCH AS HIGH FUEL COSTS THAT COULD
00:12:12 MODERATE TRAVEL DEMAND AS A RESULT, DESPITE THE CONTINUED
00:12:16 PASSENGER GROWTH THAT WE'RE SEEING, WE'RE TAKING A VERY
00:12:20 DISCIPLINED AND MEASURED APPROACH TOWARDS THE BUDGET
00:12:21 KEEPING AREAS WHERE WE CAN CONTROL RELATIVELY FLAT
00:12:25 AND INCREASING PRIMARILY IN COLA CPI, PREVAILING WAGES
00:12:29 AND DEBT SERVICE. THIS APPROACH STRENGTHENS OUR
00:12:32 COMPETITIVENESS WHILE PRIORITIZING ESSENTIAL SERVICES
00:12:36 AND STRATEGIC INVESTMENTS. WE'RE STREAMLINING PROCESSES TO
00:12:40 ACHIEVE EFFICIENCY AND DRIVE REVENUE GROWTH OPPORTUNITIES TO
00:12:44 MANAGE UNCERTAINTIES BEYOND OUR CONTROL.
00:12:45 THE AIRPORT METHODICALLY DEPLOYS VARIOUS MECHANISMS SUCH
00:12:48 AS PASSENGER FACILITY CHARGES, CUSTOMER FACILITY CHARGES
00:12:52 AND THE DIRECTORS RESERVE IN THE CAPITAL PLAN.
00:12:56 WE'RE MANAGING THE KNOWNS WHILE BUILDING RESILIENCE FOR THE
00:12:59 UNKNOWNS AT THE MACRO LEVEL THE AIRPORT'S TAX CONTRIBUTION TO
00:13:04 THE CITY WAS $598 MILLION IN FISCAL YEAR 2020 FOUR
00:13:10 COMPRISED OF 319 MILLION IN ON AIRPORT OPERATIONS PLUS 279
00:13:17 MILLION IN VISITOR SPENDING. THIS REVENUE THAT SUPPORTS THE
00:13:18 CITY IS BEYOND THE ANNUAL SERVICE PAYMENT TO THE GENERAL
00:13:22 FUND POLICY DECISIONS ON LABOR AND CONTRACTING DIRECTLY SHAPE
00:13:28 AS TO COMPETITIVENESS AND OUR ABILITY TO ATTRACT AIRLINES,
00:13:32 TENANTS AND CONCESSIONAIRES. THIS IS WHY SFO IS
00:13:33 COMPETITIVENESS IS CRITICAL TO THE CITY'S FINANCIAL HEALTH SFO
00:13:40 AS A SELF-SUSTAINING ENTERPRISE DEPARTMENT IS PROUD TO
00:13:44 CONTRIBUTE TO THE GENERAL FUND VIA THE ANNUAL SERVICE PAYMENT
00:13:46 FOR FISCAL YEAR 2026 IS FORECAST TO BE NEARLY $60
00:13:50 MILLION. THIS IS THE MOST SFO HAS EVER
00:13:52 CONTRIBUTED TO THIS IS A 2.9 INCREASE OVER FISCAL YEAR 2025.
00:13:58 THIS GROWTH CONTINUES AT A SLOWER PACE THAN POST COVID
00:14:03 SURGE BETWEEN FISCAL YEAR 2020 AND FISCAL YEAR 2025 WHERE ASP
00:14:06 AVERAGED NEARLY 20% GROWTH. BUT LOOKING AHEAD FOR THE NEXT
00:14:11 TWO YEARS, FISCAL YEAR 27 ASP IS FORECAST TO GROW TO 60.8
00:14:15 MILLION A MODEST 1.8 1.5% INCREASE IN FISCAL YEAR 28 IS
00:14:21 FORECAST AT 63.6 MILLION, A STRONGER 4.6% GROWTH DRIVEN BY
00:14:27 A PASSENGER FORECAST. OUR COSTS ARE HIGHER SUCH AS
00:14:28 LABOR OPERATIONS, CONSTRUCTION COSTS AND DEBT.
00:14:32 REVENUE IS GROWING BUT NOT AT THE PACE IT ONCE DID
00:14:36 AND PASSENGERS ARE SPENDING A BIT MORE CAREFULLY.
00:14:39 WE SEE THESE IMPACTS IN OUR NON AIRLINE REVENUES AND THUS ARE
00:14:44 RESPONDING ACCORDINGLY IN OUR BUDGET.
00:14:47 THIS IS A BREAKDOWN OF THE PROPOSED OPERATING BUDGET OF
00:14:54 $1.79 BILLION IN FISCAL YEAR 2027 AND $1.95 BILLION
00:14:57 IN FISCAL YEAR 2028. COST GROWTH IS DRIVEN BY COLA
00:15:01 IN PERSONNEL CPI OR PREVAILING WAGES IN OTHER LINES
00:15:05 AND CAPITAL PROJECTS COMING ONLINE WHICH RESULTS IN DEBT
00:15:09 SERVICE. OTHER AREAS ARE MODEST
00:15:12 INCREASES AND RIGHTSIZING AND COLLECTIVELY THIS BUDGET
00:15:16 REFLECTS SOPHOS DELIBERATE STRATEGY INVESTING IN PEOPLE
00:15:20 AND CRITICAL INFRASTRUCTURE TO KEEP SFO COMPETITIVE.
00:15:24 >> WHILE THERE ARE NO NEW POSITIONS PROPOSED IN FISCAL
00:15:28 YEAR 27 AND FISCAL YEAR 28, WE ARE FOCUSING ON FILLING THE
00:15:32 CURRENT VACANCIES OF OVER 200 POSITIONS.
00:15:35 THESE POSITIONS ARE CRITICAL TO STAYING AHEAD OF NATURAL
00:15:39 ATTRITION, SUPPORTING OPERATIONS AND GENERATING
00:15:40 REVENUES. IT REQUIRES A STRONG
00:15:43 PARTNERSHIP THAT WE HAVE WITH OUR DOWNTOWN COLLEAGUES AND FOR
00:15:45 POSITION REVIEW AND APPROVALS. ON THIS SLIDE THIS IS A VISUAL
00:15:51 REPRESENTATION OF THE AIRPORT'S PROPOSED ORGANIZATIONAL CHART
00:15:55 OF 2146 FTE OR FULL TIME EQUIVALENTS.
00:16:01 SFO IS GROWING AND WE ARE KEEPING FTE IS FLAT WHICH IS
00:16:05 WHY EVERY POSITION MATTERS. THE GOAL IS TO MAXIMIZE THE
00:16:09 EFFECTIVENESS OF EXISTING RESOURCES ALIGN STAFFING WITH
00:16:12 EVOLVING OPERATIONAL DEMANDS AND POSITION THE AIRPORT TO
00:16:16 MEET FUTURE NEEDS. THE AIRPORT WIDE VACANCY RATE
00:16:20 IS CURRENTLY AT 10.6% WHICH THE TEAM HAS DILIGENTLY WORKING ON
00:16:24 FILLING TO MEET OUR OPERATIONAL NEEDS.
00:16:28 MANAGEMENT REPRESENTS 7% OF OUR OVERALL FTE IS A DELIBERATE
00:16:32 RATIO THAT ENSURES STRATEGIC OVERSIGHT ACCOUNTABLE
00:16:36 AND DECISION MAKING AUTHORITY TO RUN A COMPLEX 24 SEVEN
00:16:39 OPERATION WITH FLAT FTE OVER THE NEXT TWO YEARS.
00:16:43 THE POSITION RECLASSIFICATIONS AND HIRING OF VACANT POSITIONS
00:16:47 ARE CRITICAL TO MAINTAINING SFO AS AN ECONOMIC ENGINE FOR THE
00:16:51 REGION, GENERATING REVENUES AND GROWING ASP FOR SAN
00:16:55 FRANCISCO. CAPITAL OPERATING BUDGET
00:16:58 REFLECTS A COMBINATION OF ONE TIME AND MULTIYEAR PROJECTS
00:17:02 OPERATING REVENUE AND CAPITAL IMPROVEMENT FUND IS BASED ON
00:17:08 THE 2023 LEASE AND USE AGREEMENTS SCHEDULE WHILE
00:17:12 FEDERAL GRANTS REFLECT AIRPORT IMPROVEMENT PROGRAMS SUCH AS
00:17:16 TAXIWAY AND RUNWAY PROJECTS. THE REDUCTION HOWEVER, COMPARED
00:17:20 TO FISCAL YEAR 2026 IS DUE TO THE SUNSETTING OF THE
00:17:23 INFRASTRUCTURE INVESTMENT AND JOBS ACT OR IJA AT THE
00:17:27 FEDERAL LEVEL. AND THIS FINAL SLIDE PERTAINS
00:17:31 TO THE 12.5 BILLION CAPITAL IMPROVEMENT PLAN.
00:17:35 THESE ARE NET ZERO TO THE BOTTOM LINE APPROPRIATION.
00:17:39 IT'S TO ALIGN WITH OUR LATEST CAPITAL PLAN SPENDING NEEDS.
00:17:45 NOW THAT TERMINAL ONE PROGRAM IS COMPLETE.
00:17:46 THERE ARE APPROPRIATION SAVINGS OF APPROXIMATELY $82 MILLION
00:17:52 THAT MAY BE RE APPROPRIATED TO THE TERMINAL THREE PROGRAM COST
00:17:56 CENTER. AND I WOULD LIKE TO THANK YOU
00:18:00 VERY MUCH FOR YOUR TIME AND WOULD BE HAPPY TO ANSWER
00:18:01 ANY QUESTIONS. >> VICE CHAIR DORSEY THANK YOU.
00:18:07 CHAIR CHAN CAN I ASK IF YOU COULD ELABORATE?
00:18:10 I NOTICE IN HERE ON THE SLIDE I THINK TO THE LIMITED BID
00:18:15 COMPETITION COULD YOU COULD YOU ELABORATE ON THAT AS ARE WE
00:18:20 HAVING OR IS THE AIRPORT HAVING ISSUES WITH BID PARTICIPATION
00:18:27 BECAUSE OF SOME OF THE OBSTACLES THAT WE PUT IN THE
00:18:30 WAY OF COMPETITIVE BIDDING? >> WE'RE TAKING A VERY CLOSE
00:18:34 LOOK AT THAT FROM A CONSTRUCTION STANDPOINT WE'RE
00:18:38 STILL VIEWED AS VERY MUCH THE PARTNER OF CHOICE FROM THE
00:18:42 BIDDING COMMUNITY BECAUSE WE HAVE A PARTNERING PROCESS THAT
00:18:45 IS CONSIDERED INDUSTRY LEADING AND AND ALTHOUGH ALTHOUGH COSTS
00:18:49 ARE RELATIVELY HIGH WHEN YOU WHEN YOU LOOK AT THE OPERATIONS
00:18:53 HERE AT SFO BECAUSE OF THE WAY OUR TEAM PARTNERS WITH OUR
00:18:57 POTENTIAL BIDDERS, WE WE ARE STILL VERY MUCH VIEWED AS A
00:19:01 PARTNER OF CHOICE. IF YOU LOOK AT CONCESSIONS IT'S
00:19:05 A MATTER OF BUILDOUT COSTS OPERATING COSTS THE LABOR
00:19:08 ENVIRONMENT THAT THAT OUR CONCESSIONAIRES FACE.
00:19:12 SO SO IT'S SOMETHING THAT WE'RE LOOKING AT VERY CLOSELY AND TRY
00:19:13 TO TRYING TO MAINTAIN OUR OUR POSITION AS A GOOD PARTNERS
00:19:19 WHILE AT THE SAME TIME MAKING SURE THAT THAT WE CONTINUE TO
00:19:20 BE COMPETITIVE WITH OUR BIDDERS.
00:19:23 >> I KNOW THAT WHEN SUPERVISOR RANDLEMAN STARTED WORKING ON
00:19:30 SOME OF THE REFORMS AROUND CONTRACTING I THINK IT WAS 12 X
00:19:32 BACK WHICH HAS BEEN SINCE REFORMED.
00:19:36 >> I RECALL THAT THERE WAS A REPORT THAT THE CITY
00:19:40 ADMINISTRATOR PUT OUT CITYWIDE THAT I THINK ONLY 42% OF OR
00:19:47 MAYBE IT WAS 42% OF BIDS CAME BACK WITH 0 OR 1 BIDDER.
00:19:51 >> SO WE'RE ACTUALLY NOT AT LEAST CITYWIDE WITH OUR
00:19:55 COMPETITIVE BIDDING IS LITERALLY NOT COMPETITIVE.
00:19:59 WE'RE NOT WE'RE NOT GETTING ANY KIND OF AND I THINK THERE WERE
00:20:02 SOME OBSTACLES TO THAT 12 X IS ONE OF THEM OBVIOUSLY THAT'S
00:20:06 BEEN FIXED BUT THAT'S KIND OF WHAT I JUST WANTED TO TEASE OUT
00:20:08 IF YOU'RE PUTTING PUT BID SOLICITATIONS OUT AND THERE'S
00:20:09 NO COMPETITION FOR IT, IS THERE SOMETHING IS THERE FRICTION
00:20:13 THAT WE'RE PUTTING IN WITH SOME OF OUR OUR COMPETITIVE BIDDING
00:20:20 EXCLUSIONS THAT WE SHOULD LOOK AT?
00:20:21 AND I GUESS THAT'S A QUESTION FOR US BUT I WOULD JUST BE
00:20:24 INTERESTED TO HEAR AND MAYBE THIS IS SOMETHING THAT YOU CAN
00:20:26 COME BACK WHEN YOU GET ME MORE INFORMATION BUT I WOULD BE
00:20:28 INTERESTED IN HEARING IT. >> WELL, WE'LL TAKE A CLOSER
00:20:31 ANALYSIS OF THAT ONE AND COME BACK TO YOU ON THAT.
00:20:34 >> SO OVERALL WE IT'S I I DON'T WANT TO STAY AHEAD OF THE DATA
00:20:40 HERE BUT WE'LL WE'LL HAVE TO COME BACK TO YOU WITH THE DATA.
00:20:43 >> IT'S VERY RARE THAT WE WOULD GET THAT LOW OF AN AMOUNT OF
00:20:46 BIDDERS TO THE SOLICITATIONS THAT WE PUT OUT.
00:20:49 >> THANK YOU AND I DO HAVE A FEW QUESTIONS.
00:20:53 I THINK THERE THERE ARE MORE ABOUT THE FACTORS THAT ARE OUT
00:20:57 OF YOUR CONTROL AND JUST WANTED TO HAVE A BETTER UNDERSTANDING
00:21:00 TO KEEP A FEW FACTORS. HOW DO YOU WHAT IS YOUR
00:21:05 APPROACH IN MANAGING A FEW FACTORS SUCH AS THAT IS REALLY
00:21:08 MORE OF A FEDERAL GOVERNMENT APPROACH AND HOW DO YOU AS A
00:21:12 DIRECTOR FOR SALVO HAVING THAT BALANCE BETWEEN LOCAL POLICY
00:21:16 AND DEALING WITH FEDERAL GOVERNMENT?
00:21:19 AND I'M JUST GOING TO THROW IT OUT THERE AND THEN YOU CAN YOU
00:21:23 CAN KIND OF ANSWERING ONE SETTING.
00:21:26 I JUST WANTED TO GET AN UNDERSTANDING OF BY THE WAY YOU
00:21:30 AND YOUR TEAM MANAGE AS A VOTE. GREAT.
00:21:34 AND WE REALLY DO APPRECIATE JUST AS DIRECTOR CUTLER HAD
00:21:38 MENTIONED THAT NOT ONLY THAT YOU HAVE COME IN MEETING THAT
00:21:44 15% OF GENERAL FUND CONTRIBUTION TO THE CITY, WE
00:21:45 UNDERSTAND THAT, YOU KNOW, HISTORICALLY THIS IS YOUR
00:21:49 YOU'RE REACHING NEW HIGH WITH THAT 15% WE'RE SEEING NOW
00:21:55 ALMOST CLOSE TO SIX WHILE IT IS 60 MILLION CONTRIBUTION TO SAN
00:22:00 FRANCISCO AND WE REALLY APPRECIATE YOU AND YOUR TEAM'S
00:22:02 EFFORT BUT WE DO UNDERSTAND EXTERNAL PRESSURE AS YOU
00:22:05 INDICATED IN YOUR PRESENTATION IS A FACTOR THAT YOU ACTUALLY
00:22:09 HAVE TO MANAGE CONSTANTLY. AND I THINK THE QUESTION THAT I
00:22:14 HAVE EXTERNAL PRESSURE AS BOTH FEDERAL GOVERNMENTS BUT ALSO
00:22:19 JUST THE MARKET IN GENERAL. WHAT IS YOUR APPROACH TO THINGS
00:22:23 LIKE FEDERAL GOVERNMENTS AROUND ICE IMMIGRATION, YOUR APPROACH
00:22:27 TO AUTONOMOUS VEHICLES AND BEING PART OF NOW THE
00:22:35 RIDESHARE THAT IS GOING TO BE VISITING COULD BE VISITING AS
00:22:39 WELL AND OF COURSE ALSO OVERALL LABOR HARMONY AND AS I VOTE
00:22:43 AGAIN NOT NECESSARILY UNDER YOUR CONTROL BUT DEFINITELY THE
00:22:50 PEOPLE THAT YOU HAVE TO PARTNER WITH.
00:22:51 SO IMMIGRATION AUTONOMOUS VEHICLE AND LABOR HARMONY.
00:22:57 OKAY. >> AND THANK YOU FOR THAT
00:22:58 QUESTION CHAIRMAN AND AND CERTAINLY WE WE VERY MUCH VALUE
00:23:01 OUR PARTNERSHIP WITH THE CITY AND ARE ALSO PROUD OF THE $60
00:23:08 MILLION ASPIRE CONTRIBUTE CONTRIBUTION THAT WE MAKE TO
00:23:09 THE GENERAL FUND THAT IS GROWING AND REACHING NEW
00:23:12 HEIGHTS EVERY YEAR. TO ADDRESS YOUR QUESTION
00:23:15 HOLISTICALLY IN TERMS OF WEATHERING THINGS THAT WE
00:23:19 CANNOT CONTROL, I THINK IT'S REALLY THE COLLABORATION THAT
00:23:24 WE HAVE WITHIN THE AIRPORT STAKEHOLDER COMMUNITY.
00:23:30 SO OUR STAFF THE AIRLINE PARTNERS ARE LOCAL PARTNERS AT
00:23:33 THE AIRPORT WHETHER IT'S OUR SFPD, ATF, FDA, FEDERAL LEVEL
00:23:38 LOCAL OFFICIALS AS WELL AS DOWNTOWN WITH THE MAYOR'S
00:23:42 BUDGET OFFICE AND COMPTROLLER'S OFFICE.
00:23:45 I THINK THE THE PARTNERSHIPS AND COLLABORATION AND THE
00:23:49 EXCELLENT COMMUNICATION THAT WE HAVE WITHIN THE STAKEHOLDER
00:23:53 COMMUNITY CAN CAN HELP US BE ABLE TO TO BE NIMBLE, TO BE
00:23:57 ABLE TO ADJUST TO ANYTHING THAT COMES OUR WAY WHEN ONE GOOD
00:24:00 EXAMPLE OF THAT MIGHT BE RISING FUEL PRICES AS WE MIGHT NOT
00:24:04 HAVE CONTROL OVER THE RISING FUEL PRICES THAT SELF THAT
00:24:07 RESULT IN HIGHER AIRFARES WE'RE ABLE TO TO COLLABORATE WITH OUR
00:24:12 COMMUNITY TO BE ABLE TO UNDERSTAND WHAT THAT MEANS FOR
00:24:15 THE AIRPORT WHETHER IT'S SLIGHTLY MODERATING DEMAND THAT
00:24:19 WE SEE OVER THE SUMMER THAT IS BUT THEN ALSO OFFSET BY THE 25
00:24:25 EVENTS INCLUDING A MAJOR SPORTING EVENT THAT WE'RE GOING
00:24:27 TO HAVE HERE AT SAN FRANCISCO. SO ALL OF THAT DETAILS ARE
00:24:30 LOOKED INTO AS WE COME UP WITH A FORECAST AND UNDERSTAND HOW
00:24:34 WE HANDLE EACH OF THESE IMPACTS AND THE COMMUNICATION THAT WE
00:24:38 HAVE AMONGST OUR TEAM IS SECOND TO NONE.
00:24:42 AND TO ADDRESS SPECIFICALLY YOUR QUESTION WITH WITH REGARDS
00:24:45 TO FEDERAL IMMIGRATION ENFORCEMENT, WE ARE A SANCTUARY
00:24:49 CITY AND WE'RE PART OF THE CITY AND COUNTY OF SAN FRANCISCO
00:24:53 AND WE WE DO NOT GET INVOLVED OR FACILITATE OR HELP
00:24:56 IMMIGRATION ENFORCEMENT ACTIONS AND AND WE VERY MUCH ARE PART
00:25:02 OF THIS CITY AND COUNTY OF SAN FRANCISCO FOR THE AUTONOMOUS
00:25:09 VEHICLES AND JUST OVERALL TECHNOLOGY IN GENERAL.
00:25:10 AS YOU KNOW WE HAVE ISSUED A PERMIT FOR WAYMO TO OPERATE AT
00:25:17 SAN FRANCISCO INTERNATIONAL AIRPORT.
00:25:18 WE CONTINUE TO LOOK AT THEIR OPERATIONS AND PARTNER WITH
00:25:21 THEM TO UNDERSTAND WHAT WHAT THE BEST OPERATION IS FOR OUR
00:25:25 PASSENGERS. AND I THINK IT'S IT'S REALLY
00:25:28 EMBRACING NEW TECHNOLOGIES THAT COME OUR WAY, WHETHER IT'S
00:25:32 AUTONOMOUS VEHICLES, WHETHER IT'S A HIGHWAY, WHETHER IT'S
00:25:36 ANYTHING THAT THAT IS IS A NATIONAL TREND.
00:25:40 SAN FRANCISCO USUALLY LEADS FIRST AND IT'S IMPORTANT FOR US
00:25:44 TO BE AT THE FOREFRONT OF THOSE TECHNOLOGICAL ADVANCEMENTS
00:25:48 BECAUSE WE KNOW THEY'RE GOING TO COME OUR WAY.
00:25:51 >> SO WE WE HAVE TO BE READY FOR IT.
00:25:53 WE CAN'T NOT BE READY FOR IT. AND THEN YOUR LAST QUESTION IS
00:25:56 LABOR HARMONY WE CONTINUE TO VERY MUCH VALUE OUR LABOR
00:26:03 HARMONY THERE WAS A FIRST AMENDMENT ACTION FOR EXAMPLE ON
00:26:07 MAY 1ST THAT WAS LED BY SEIU WHICH WE VERY MUCH RESPECTED
00:26:11 AND WE THERE WAS A LOT OF GREAT COMMUNICATION AMONGST ALL
00:26:15 PARTIES A SPEEDY AS WELL AS AS WELL AS LABOR LEADERS ON THE
00:26:20 ACTIONS OF THAT DAY. AND AND I FELT THAT WE WERE
00:26:24 READY TO TO TO RESPECT AND AND BE READY FOR THE THE ACTIONS
00:26:30 THAT OCCURRED ON MAY 1ST. >> IF I MAY THOUGH, YOU KNOW
00:26:31 CLEARLY THIS IS A BUDGET COMMITTEE, YOU KNOW BUT I IF I
00:26:35 MAY TAKE THIS MOMENT TO OPINE ON YOUR POLICY AND YOUR
00:26:38 APPROACH AND THAT I WOULD WANT TO URGE YOU AND THE AIRPORT
00:26:42 COMMISSION TO CONSIDER POTENTIALLY A CONVERSATION IF
00:26:49 NECESSARY A CLOSED SESSION WITH YOUR CITY ATTORNEY ADVISE
00:26:53 AND REALLY REACHING A APPROACH OF HOW DO YOU REACHED A BALANCE
00:26:57 BECAUSE I UNDERSTAND YOU HAVE FEDERAL AGENTS ACTUALLY IN YOUR
00:26:59 TERRITORY NOT JUST THE WAY THE WHAT WOMAN DATES TO OPERATE A
00:27:05 AIRPORT BUT YOU WANTED TO HAVE A MORE CLEAR PROTOCOL FOR OUR
00:27:12 FOR SFO SPECIFICALLY WITH A GUIDELINE A BALANCING APPROACH
00:27:16 OF THE SANCTUARY CITY ORDINANCE AS WELL AS 4 TO 2 TO ALLOW YOU
00:27:20 TO CONTINUE TO FOLLOW FEDERAL GUIDELINE.
00:27:23 I THINK THAT WHEN IT COMES TO TRANSPORTATION NETWORK
00:27:27 COMPANIES AND IN THIS CASE RIDESHARE COMPANIES AGAIN I, I
00:27:31 LOOK FORWARD TO LEARNING MORE ABOUT JUST AGAIN FROM AIRPORT
00:27:35 COMMISSION ALONG WITH YOU A BETTER UNDERSTANDING OF WHAT
00:27:40 WHAT IS YOUR APPROACH LIKE POLICY A MORE SPECIFIC IN TERMS
00:27:47 OF YOUR GUIDING PRINCIPLE REGULATING AUTONOMOUS VEHICLE
00:27:51 REGULATING ARTIFICIAL INTELLIGENCE THAT IS BE IT
00:27:56 IN AT THE EXPERIMENT OF YOUR OPERATION OR WHEN YOU FORMALIZE
00:28:00 THE USE OF THAT TECHNOLOGY. LAST BUT NOT LEAST WHEN IT
00:28:03 COMES TO LABOR HARMONY I ABSOLUTELY WANT TO ENCOURAGE
00:28:05 AIRPORT COMMISSIONERS AS WELL AS YOURSELF TO BE ABLE TO STEP
00:28:11 IN WHEN AND WHEN NECESSARY AND BE ABLE TO KIND OF BRING
00:28:15 THE STAKEHOLDER AND OR ENSURE THAT THEY STAY AT THE TABLE
00:28:18 AND TO BE ABLE TO CONTINUE TO HAVE THOSE CONVERSATION AND NOT
00:28:20 HAVE TO LEAD TO SOME OF THESE ACTIONS.
00:28:23 AND AND WHILE WE IN ADVANCE BEFORE BEFORE IT LEADS TO THAT
00:28:27 POINT AND BUT WE KNOW IT IS VERY COMPLICATED AND IT'S IT'S
00:28:31 A LARGE A YOU ARE RUNNING A WORLD CLASS AIRPORT SO WE DO
00:28:34 APPRECIATE THAT OFFER AND THANK YOU SO MUCH FOR YOUR FOR YOUR
00:28:38 ANSWERS TO THOSE QUESTIONS. THANK YOU.
00:28:41 AND I DON'T SEE ANY OTHER NAME ON THE ROSTER AT THE MOMENT.
00:28:45 THANK YOU FOR YOUR PRESENTATION TODAY AND I THINK THAT OUR
00:28:49 BUDGET AND LEGISLATIVE ANALYSTS WILL CONTINUE TO WORK WITH YOU
00:28:50 AND EVALUATE YOUR BUDGET. >> THANK YOU.
00:28:54 AND NEXT WE HAVE THE BOARD OF APPEALS
00:29:28 THE AFTERNOON CHAIR AND JAN AND MEMBERS OF THE BOARD.
00:29:33 MY NAME IS OUTGOING WAY AND I'M THE LEGAL ASSISTANT FOR THE
00:29:36 BOARD OF APPEALS AND UNFORTUNATELY EXECUTIVE
00:29:38 DIRECTOR OF THE MAR WAS UNABLE TO ATTEND TODAY SO I'LL BE
00:29:41 REPRESENTING FOR THE BOARD OF APPEALS I CAN I HAVE THE THING
00:29:45 AND SEE IF I CAN GET THAT BETTER.
00:29:48 SORRY ABOUT THAT. I THINK THAT SO THE MISSION OF
00:29:55 THE BOARD IS TO PROVIDE A PUBLIC THE PUBLIC WITH THE
00:30:00 FINAL ADMINISTRATIVE REVIEW PROCESS FOR ISSUANCE
00:30:03 AND DENIALS AND SUSPENSIONS OF REVOCATION MODIFIEDS OF CITY
00:30:07 PERMITS, LICENSE AND OTHER DETERMINATIONS PROVIDED
00:30:11 EFFICIENT AND FAIR EXPOSITIONS PUBLIC HEARINGS AND DECISION
00:30:15 MAKING PROCESS BEFORE AN IMPARTIAL PANEL.
00:30:19 AND THEN SLIDE THREE UH, THE APPEAL VOLUME OUR APPEAL VOLUME
00:30:26 IS LOWER THAN IT HAS BEEN IN THE PAST YEARS FOR A
00:30:27 PHYSICAL YEAR 26 AS PROJECTED WE WILL HAVE 70 NEW APPEALS.
00:30:32 THE LOWER APPEAL VOLUME IS LIKELY A FUNCTION OF THE
00:30:36 REDUCED VOLUME OF PERMITS BEING ISSUED AS WELL AS THE NEW
00:30:37 LEGISLATION THAT PROHIBITS APPEALS FOR CERTAIN TYPES OF
00:30:41 APPEALS UM FOR SLIDE FOUR SHOWS THE APPEAL DISTRIBUTIONS BY
00:30:48 DEPARTMENTS APPROXIMATELY 83% OF OUR APPEALS ARE LAND USE
00:30:52 DECISIONS PRIMARILY PERMITS FROM ISSUANCE OF DBA
00:30:56 AND PLANNING DEPARTMENT APPROVALS.
00:31:02 AND THEN SLIDE FIVE WE ARE SELF SUPPORTING DEPARTMENT 99% OF
00:31:06 OUR REVENUE COMES FROM IMPOSING SURCHARGES ON PERMIT COLLECTING
00:31:10 NEW AND RENEWED PERMITS RATE BASED ON PERCENTAGES OF CASES
00:31:14 OR ANYTHING FROM UNDERLYING DEPARTMENTS AND PARTICULARLY
00:31:18 PERMITS APPLICATION VOLUMES AND RATES ANALYZE ANNUALLY
00:31:21 AND JUSTIFY THE COMPTROLLER'S OFFICE IF NEEDED AND THEN 1% OF
00:31:25 IT COMES FROM THE FILING FEES COLLECTED BY THE BOARD OFFICE
00:31:29 WHEN APPEALS ARE FILED AND SLIDE SIX SORRY UM WE ARE
00:31:36 NOT PROPOSING ANY MAJOR CHANGES A SLIGHT DECREASE IN OUR
00:31:40 PROPOSED BUDGET FOR FISCAL YEAR 27 AND 26 WE BUDGETED FOR MORE
00:31:47 COSTS RELATED TO OUR APPEALS MANAGEMENT'S SYSTEM AND WE DID
00:31:51 NOT HAVE THOSE COSTS IN 2704 28 THERE IS A PROPOSED MAJOR MINOR
00:31:58 INCREASE IN THE BUDGET PRIMARILY RELATED TO INCREASES
00:32:02 IN SALARY AND FRINGE COSTS, FRINGE COSTS AND THEN SEVEN OUR
00:32:06 PROPOSED REVENUE COVERS OUR EXPENDITURES.
00:32:09 YOU CAN SEE HERE THAT TO EXPENDITURES AND THEN EIGHT UM
00:32:16 FOUR EIGHT LIKELY MOST DEPARTMENTS DO THE BULK OF THE
00:32:20 EXPENDITURES GOES TO LABOR COSTS SALARIES AND FRINGE
00:32:23 BENEFITS AND THEN NEXT TO THE DEPARTMENT WORKING ORDERS SUCH
00:32:27 AS RENT FOR OUR OFFICE AT 49 SOUTH AS DEPARTMENT OF
00:32:31 TECHNOLOGY WHICH INCLUDES SAN FRANCISCO GOVERNMENT TELEVISION
00:32:35 AND THE CITY ATTORNEY'S OFFICE AND SERVICES.
00:32:42 UM, SLIDE TEN AND THE NINE SORRY NINE IS JUST A BREAKDOWN
00:32:46 OF THE PROPOSED BUDGET FOR THE YEAR 20 SEVEN AND THEN FOR
00:32:54 SLIDE TEN WE ORGANIZED CHARTS FOR THE COMMISSIONERS.
00:32:58 >> WE HAVE FIVE COMMISSIONERS AS ONE DEPARTMENT HEAD, A LEGAL
00:33:02 ASSISTANT ME AND THEN ALSO THERE'S A LEGAL CLERK SO WE'RE
00:33:06 PRETTY SMALL OFFICE STAFF INSIDE SINCE THE COMPTROLLER'S
00:33:12 OFFICE IS IN THE PROCESS OF CONDUCTING A SURCHARGE ANALYSIS
00:33:15 TO DETERMINE ADJUSTMENTS IF NEEDED.
00:33:21 I BELIEVE THEY'RE GOING TO DO THAT ON WEDNESDAY.
00:33:22 BUT I MEAN ON THURSDAY OR SOMETHING.
00:33:26 AND THEN SLIDE 12 SHOWS THE APPEAL FILING FEE SCHEDULE THAT
00:33:30 WE CHARGE FOR FILING APPEALS. BUT THIS HASN'T CHANGED SINCE
00:33:33 2010 AND I'M THANK YOU FOR YOUR TIME AND IF YOU HAVE ANY
00:33:38 QUESTIONS THANK YOU. >> AND YOU SAY THE FILING FEES
00:33:42 HASN'T CHANGED SINCE 2010, WILL YOU BE DOING ANY TYPE OF
00:33:46 STUDIES ALONG WITH COMPTROLLER TO SEE WHETHER YOU NEED TO
00:33:49 INCREASE THE FEE? >> I BELIEVE THERE MS. LAMAR IS
00:33:53 WORKING WITH THEM TO SEE IF THAT WOULD BE ACCURATE BUT WE
00:33:57 HAVEN'T CHANGED THEM I THINK BECAUSE IT'S FOR THE PUBLIC TO
00:34:01 ACCESS FOR THEM TO FILE APPEALS SO THEY HAVEN'T BEEN RAISED
00:34:04 IN A LONG TIME AND UNDERSTAND THANK YOU SO MUCH FOR YOUR
00:34:06 WORK. >> WE DON'T HAVE ANY ADDITIONAL
00:34:09 QUESTION. THANK YOU FOR PRESENTING TODAY.
00:34:10 THANK YOU VERY MUCH. THANK YOU.
00:34:12 >> AND NEXT WE WILL HAVE OUR CHILD SUPPORT SERVICES.
00:34:38 >> GOOD AFTERNOON CHAIR CHAN AND MEMBERS OF THE COMMITTEE.
00:34:42 I'M KAREN ROY, DIRECTOR OF THE DEPARTMENT OF CHILD SUPPORT
00:34:44 SERVICES. LAST YEAR THE DEPARTMENT
00:34:49 DELIVERED MORE THAN $21 MILLION DIRECTLY TO SAN FRANCISCO
00:34:55 FAMILIES ACROSS EVERY SUPERVISORY L DISTRICT.
00:34:59 FOR MANY HOUSEHOLDS CHILD SUPPORT IS ESSENTIAL TO
00:35:03 FINANCIAL STABILITY. >> THE PROGRAM IS FULLY FUNDED
00:35:10 THROUGH FEDERAL AND STATE REVENUE WITH NO IMPACT TO THE
00:35:15 CITY'S GENERAL FUND. WE DO NOT ANTICIPATE FUNDING
00:35:19 ADJUSTMENTS DURING THE STATE MAY MAY REVISE AND FUNDING
00:35:23 REMAINS STABLE THROUGH THE ENTIRE BUDGET PERIOD.
00:35:29 THE PROPOSED BUDGET IS BALANCED ACROSS BOTH FISCAL YEARS.
00:35:33 COST GROWTH IS PRIMARILY DRIVEN BY INCREASED SALARIES
00:35:38 AND BENEFITS TO MANAGE BOTH PRESSURES.
00:35:45 THE DEPARTMENT MADE TARGETED OPERATIONAL ADJUSTMENTS FOCUSED
00:35:52 ON EFFICIENCY AND CONTINUITY OF QUALITY SERVICE.
00:35:57 THESE ADJUSTMENTS INCLUDE VACANCY MANAGEMENT, SELECTIVE
00:36:00 AND DELAYED HIRING AND WORKLOAD REDISTRIBUTION.
00:36:07 AS A FEDERALLY MANDATED TITLE FOUR D PROGRAM, MOST SERVICES
00:36:11 ARE REQUIRED BY STATE AND FEDERAL LAW.
00:36:15 PRIORITY REMAINS CENTERED ON HELPING FAMILIES ACHIEVE
00:36:22 SUPPORT RELIABLY THROUGH COORDINATED FAMILY FOCUSED
00:36:26 SURFACES. THE BUDGET DECISIONS WERE
00:36:30 GUIDED BY FEDERAL PERFORMANCE STANDARDS.
00:36:34 COST EFFECTIVENESS REQUIREMENTS CASELOAD COMPLEXITY
00:36:41 AND STAFFING CAPACITY. >> THE DEPARTMENT OPERATES WITH
00:36:45 A LEAN STRUCTURE WITH 11% ALLOCATED TO ADMINISTRATIVE
00:36:49 COMPLIANCE REQUIRED FUNCTIONS. THE REMAINING WORKFORCE
00:36:56 SUPPORTS LEGAL, OPERATIONAL AND CASE MANAGEMENT
00:36:59 RESPONSIBILITIES. >> THE DEPARTMENT CURRENTLY HAS
00:37:06 73 BUDGETED POSITIONS WITH 77% FILLED 3% IN RECRUITMENT.
00:37:16 20% OF POSITIONS ARE VACANT AND MANAGED THROUGH ATTRITION.
00:37:20 AS PART OF THE DEPARTMENT'S LONG TERM COST MANAGEMENT
00:37:21 STRATEGY AS REFLECTED ON THIS SLIDE STAFFING LEVELS HAVE BEEN
00:37:28 REDUCED OVER TIME WHILE MAINTAINING SERVICE CAPACITY
00:37:32 AND MANAGING INCREASING LEGAL AND ENFORCEMENT COMPLEXITY.
00:37:39 FOR FISCAL YEAR 2027 WE ANTICIPATE DEMAND FOR SERVICES
00:37:45 FROM BOTH ASSISTED AND NON ASSISTED FAMILIES TO RISE
00:37:49 SIGNIFICANTLY DUE TO THE COST OF LIVING.
00:37:54 NEARLY 90% OF OUR STAFF ARE IN DIRECT SERVICE ROLES
00:38:00 AND OVER 90% ARE NON-MANAGEMENT .
00:38:04 THE OPERATIONAL OUTCOMES FOR OUR ORGANIZATIONAL STRUCTURE
00:38:11 INCLUDE SUPPORTS TO COMPLIANCE ,ACCOUNTABILITY AND TIMELY
00:38:16 CASE PROCESSING ACROSS ALL MAJOR FUNCTIONS.
00:38:23 >> SAN FRANCISCO CONTINUES TO MEET OR EXCEED FEDERAL
00:38:26 AND STATE PERFORMANCE BENCHMARKS AND RANKS AMONG THE
00:38:31 TOP COUNTIES STATEWIDE IN DELIVERING SUPPORT TO
00:38:32 FAMILIES. >> THE DEPARTMENT PRIMARILY
00:38:39 SERVES LOW INCOME FAMILIES INCLUDING MANY HOUSEHOLDS WHERE
00:38:43 CHILD SUPPORT REPRESENTS A MEANINGFUL SOURCE OF MONTHLY
00:38:45 INCOME. >> THE DEPARTMENT ALSO WORKS
00:38:50 CLOSELY WITH CITY PARTNERS TO SUPPORT FAMILY STABILITY,
00:38:54 WORKFORCE PARTICIPATION AND PUBLIC SAFETY OBJECTIVES.
00:39:01 >> IN CLOSING, THE DEPARTMENT OF CHILD SUPPORT SERVICES
00:39:04 REMAINS A FULLY EXTERNALLY FUNDED PROGRAM DELIVERY IN MORE
00:39:09 THAN $21 MILLION ANNUALLY TO SAN FRANCISCO FAMILIES ACROSS
00:39:14 EVERY SUPERVISORY L DISTRICT. THE PROPOSED BUDGET REFLECTS A
00:39:18 DISCIPLINED OPERATIONAL APPROACH THAT MAINTAINS STRONG
00:39:25 PERFORMANCE WHILE MANAGING ONGOING COST PRESSURES.
00:39:28 RESPONSIBLY. I WOULD ALSO LIKE TO THANK
00:39:32 AND ACKNOWLEDGE THE STAFF OF THE DEPARTMENT OF CHILD SUPPORT
00:39:34 SERVICES. THE RESULTS REFLECTED IN THIS
00:39:37 PRESENTATION ARE MADE POSSIBLE THROUGH THEIR PROFESSIONALISM,
00:39:41 DEDICATION AND DAILY COMMITMENT TO THE FAMILIES WE SERVE.
00:39:44 AND I'M PROUD TO SERVE WITH THEM.
00:39:48 >> HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
00:39:51 THANK YOU. EACH YEAR.
00:39:52 ALWAYS APPRECIATE YOUR WORK. THANK YOU SO MUCH.
00:39:56 YOU ALWAYS HIT THE HIGH MARK. THANK YOU SO MUCH FOR YOUR
00:39:59 PRESENTATION AND THANK YOU SO MUCH FOR YOUR LEADERSHIP
00:40:01 AND SERVICE. I DON'T SEE ANY NAME ON THE
00:40:03 ROSTER. I DO NOT HAVE ADDITIONAL
00:40:04 QUESTION THANK YOU. THANK YOU.
00:40:05 THANK YOU SO MUCH. >> AND WITH THAT LET'S GO TO
00:40:07 DEPARTMENT OF ENVIRONMENT. >> GOOD AFTERNOON CHAIR
00:40:35 AND COMMITTEE MEMBERS. TODAY I'LL PROVIDE A BRIEF
00:40:39 OVERVIEW OF OUR PROPOSED BUDGET HOW WE PRIORITIZE OUR WORK
00:40:43 AND BUDGET IMPACTS AS REQUESTED BY THE CHAIR.
00:40:44 FIRST, WHEN I START OFF BY THANKING THE BUDGET OFFICE
00:40:47 BUDGET DIRECTOR SOPHIA KETTLER AND JOSHUA FOR THEIR WORK, THIS
00:40:51 HAS BEEN A DIFFICULT BUDGET TIME.
00:40:54 BUT HERE WE GO. SO AT ITS CORE OUR DEPARTMENT
00:40:59 TURNS CLIMATE GOALS THAT WE HAVE AS A CITY INTO
00:41:02 IMPLEMENTATION PUBLIC ACCOUNTABILITY AND BENEFITS
00:41:06 THAT RESIDENTS CAN SEE AND FEEL.
00:41:07 OUR WORK SPANS SEVERAL AREAS CLIMATE ZERO WASTE ENERGY,
00:41:14 TRANSPORTATION, TOXICS REDUCTION AND HEALTHY
00:41:15 ECOSYSTEMS. TOGETHER THEY KNIT TOGETHER AN
00:41:18 IMPLEMENTATION ARCHITECTURE FOR OUR CITY'S CLIMATE ACTION PLAN.
00:41:22 >> AS FOR HOW WE SET OUR BUDGET PRIORITIES AND OUR PROGRAM
00:41:26 PRIORITIES, WE FOCUS ON WHERE OUR LEGAL RESPONSIBILITIES OUR
00:41:29 CLIMATE ACTION PLAN OBLIGATIONS AND THE CURRENT CITY PRIORITIES
00:41:33 OVERLAP. >> AND JUST TO HIGHLIGHT HOW
00:41:37 EFFECTIVE AND COMMON SENSE WE ARE, WE ACTUALLY BRING IN MONEY
00:41:41 TO SAN FRANCISCO SINCE NOVEMBER OF 22.
00:41:43 THE MONEY THAT WE RECEIVED HAS BEEN LEVERAGED TO BRING IN MORE
00:41:47 THAN $85 MILLION IN GRANTS TO THE CITY.
00:41:51 THAT OUTSIDE FUNDING THOUGH DEPENDS ON STAFF CAPACITY TO
00:41:52 IDENTIFY OPPORTUNITIES, BUILD THE PARTNERSHIPS FOR THOSE
00:41:55 GRANT PROPOSALS APPLY THEY COMPLY AND DELIVER SAN
00:42:02 FRANCISCO'S GOALS. >> WHEN WE THINK ABOUT
00:42:03 BENCHMARKS ARE CODIFIED UNDER ENVIRONMENT CODE CHAPTER NINE,
00:42:06 WHICH WAS RECENTLY APPROVED UNANIMOUSLY BY THIS BOARD
00:42:10 AND SIGNED BY THE MAYOR LAST MONTH OUR UPDATED 2026 CLIMATE
00:42:14 ACTION PLAN WAS RELEASED BY THE MAYOR IN APRIL 16TH RIGHT
00:42:18 BEFORE S.F. CLIMATE WEEK. AND SO WE TRACK ALL OF OUR WORK
00:42:22 AGAINST THESE VERY PUBLIC GOALS AND PERFORMANCE MEASURES FOR
00:42:23 OUR DEPARTMENT AND THE CITY. THE EMISSIONS PICTURE AND WORK
00:42:29 IS CLEAR. TRANSPORTATION AND BUILDINGS
00:42:33 ACCOUNT FOR NEARLY 90% OF OUR EMISSIONS AND THE CORRESPONDING
00:42:36 POLLUTION. THIS IS WHY CLEAN
00:42:37 TRANSPORTATION WORK AND BUILDING DECARBONIZATION
00:42:40 WORK ARE ESSENTIAL. >> AND I WANT TO UNDERSCORE HOW
00:42:44 HIGHLY TECHNICAL AND PERFORMANCE BASED OUR WORK
00:42:47 IS OUR CLIMATE ACTION PLAN USES EMISSIONS MODELING TO TEST
00:42:51 WHETHER OUR STRATEGIES ARE SUFFICIENT TO MEET BOTH OUR
00:42:55 2030 AND 2440 TARGETS SET BY THE CITY.
00:42:58 THE PURPOSE IS NOT ONLY TO SET THE TARGETS BUT TO KNOW WHETHER
00:43:00 WE'RE ON TRACK AND TO ADJUST. >> NEXT I'LL MOVE INTO OUR
00:43:06 BUDGET BACKGROUND. I WON'T WALK THROUGH EVERY
00:43:09 LINE. THE KEY TAKEAWAY OVER THIS
00:43:13 SLIDE IN THE NEXT FEW SLIDES IS THAT OUR BUDGET IS VERY
00:43:16 COMPLICATED. IT'S HIGHLY RESTRICTED AND TIED
00:43:17 TO SPECIFIC FUNDING SOURCES AND SCOPES.
00:43:20 THIS IS WHY YOU SEE A SAFE ENVIRONMENT HERE IN THIS MAY
00:43:25 MEETING BECAUSE WE'RE NOT PRIMARILY A GENERAL FUND
00:43:28 DEPARTMENT EVEN THOUGH WE RECEIVE SOME GENERAL FUND
00:43:31 SUPPORT, MOST OF OUR FUNDING COMES FROM RESTRICTED ACCOUNTS
00:43:35 LIKE GRANTS FEES, WORK ORDERS WHICH LIMITS OUR ABILITY TO
00:43:38 SHIFT DOLLARS WHEN THAT FLEXIBLE FUNDING DECLINES.
00:43:42 >> AND WHILE THE AMOUNT OF GENERAL FUNDING WE RECEIVE A
00:43:47 SMALL THE TREND IS SIGNIFICANT. OVER THE PAST FIVE YEARS DIRECT
00:43:49 GENERAL FUND SUPPORT HAS DECLINED BY MORE THAN 86% OVER
00:43:52 THIS TIME PERIOD. THIS MEANS A DECLINE AGAIN
00:43:56 IN TERMS OF ABSOLUTE DOLLAR AMOUNTS FROM 2.9 MILLION IN 22
00:44:03 23 TO 390 1000 IN 27 AND 28. AND THIS IS CREATING A CORE
00:44:06 BUDGET PRESSURE. >> WORK ORDERS DO REMAIN
00:44:09 IMPORTANT AND THIS IS WHERE I REALLY WANT TO ACKNOWLEDGE THE
00:44:14 WORK OF THE MAYOR'S OFFICE IN AND SPEAK FOR INCREASING
00:44:17 SUPPORT FOR OUR ELECTRIFICATION WORK TO HELP OFFSET A PORTION
00:44:21 OF THOSE GENERAL FUND LOSSES. BUT THE CENTRAL ISSUE IS STILL
00:44:25 THE SAME THAT 90% OR OVER 90% OF OUR FUNDING IS RESTRICTED.
00:44:32 AND SO WHEN THAT ONE FLEXIBLE FUNDING SOURCE IS DECREASED,
00:44:36 THE IMPACT IS ACTUALLY LARGER THAN JUST THE DOLLAR AMOUNT.
00:44:40 IT CREATES A CASCADING EFFECT ON THE STAFFING MODEL WHICH
00:44:44 THEN ALLOWS US TO MANAGE GRANTS, COMPETE FOR NEW GRANTS
00:44:48 TO BRING IN NEW FUNDING AND THEN DELIVER ON CITYWIDE
00:44:49 CLIMATE WORK. THE NEXT SLIDE WILL SHOW THE
00:44:54 CUT SOME REDUCTIONS THAT WE HAVE MADE OVER THE PAST FEW
00:44:56 YEARS AS ERODED RESULT OF THE DECLINE PRIOR CUTS IN THIS
00:45:00 BUDGET YEAR HAVE ALREADY ELIMINATED THREE POSITIONS THAT
00:45:04 REDUCED OUR CAPACITY TO TALK ABOUT OUR CLIMATE
00:45:07 AND ELECTRIFICATION, WORK WITH THE COMMUNITY.
00:45:10 AND I THINK ONE OF THE MOST IMMEDIATE IMPLEMENTATION RISKS
00:45:15 IS IN OUR CLEAN TRANSPORTATION TEAM.
00:45:16 AND SO UNDER OUR TWO YEAR BUDGET OUR CLEAN TRANSPORTATION
00:45:18 TEAM MOVES FROM FIVE FTE TO 1.5 IN 27 AND 28 WITH THE INCREASE
00:45:28 IN WORK ORDER IN THE MAYOR'S OFFICE AND AS A PC WE DID
00:45:29 DELETE OUR PROGRAM MANAGER POSITION FROM THIS TEAM.
00:45:33 AND NOW WITH THE YEAR TO ADDITIONAL $200,000 REDUCTION
00:45:36 IN THE PROPOSED MAIN BUDGET WE'RE BEING FORCED TO CONSIDER
00:45:40 NOW AN ELIMINATION OF ANOTHER CLEAN TRANSPORTATION POSITION
00:45:43 IN YEAR ONE. THE STAFFING REDUCTION AS I
00:45:47 SAID WILL AFFECT OUR ABILITY TO ACCEPT MANAGE AND DELIVER ON
00:45:51 OUR CURRENT EXISTING GRANTS AND PROVIDE TECHNICAL SUPPORT
00:45:55 TO ALL THE PUBLIC CHARGING PROVIDERS AND SUPPORT THE FM
00:45:58 TAS CURBSIDE CHARGING PROGRAM. SO THE IMPACT SHOWS UP TWICE
00:46:02 WHEN IT COMES UP TO OUR DEPARTMENT AND OUR STAFF
00:46:03 REDUCED TECHNICAL CAPACITY AND THEN REDUCED ABILITY TO
00:46:08 BRING IN ADDITIONAL DOLLARS INTO THE CITY.
00:46:11 THE CLIMATE ACTION AND BUILDING DECARBONIZATION TEAM IS ALSO
00:46:16 REDUCED FROM EIGHT FTE AND EMPLOYEES TO FIVE.
00:46:18 THAT AFFECTS OUR CLIMATE ACTION PLAN IMPLEMENTATION AND AGAIN
00:46:23 TECHNICAL COORDINATION AND BUILDING ELECTRIFICATION
00:46:26 WORK AND SUPPORT FOR OUR RESIDENTS AND BUSINESSES.
00:46:29 >> SOME OTHER CHANGES THAT WE'RE MAKING IN THIS BUDGET IS
00:46:34 THAT WE'RE TRANSFERRING TWO POSITIONS FROM OUR DEPARTMENT
00:46:37 TO S.F. MTA AND H FOR BETTER ALIGNMENT AND WE ARE GOING TO
00:46:43 BE CEASING WORK ON THE LANDSCAPING EQUIPMENT ORDINANCE
00:46:45 DUE TO LACK OF FUNDING. >> THIS SLIDE SHOWS WHERE THE
00:46:48 STAFFING REDUCTIONS BECOME A FUNDING AND EQUITY ISSUE
00:46:52 PRIMARILY AGAIN AFFECTING OUR CLEAN TRANSPORTATION TEAM.
00:46:56 AND SO WITHOUT THAT CLEAN TRANSPORTATION STAFFING
00:46:59 STABILITY WE LIKELY WILL HAVE TO FOREGO SMALLER BUT STRATEGIC
00:47:03 FUNDING GRANTS THAT WE'VE SECURED LIKE THE LOS ANGELES
00:47:07 CLEAN INCUBATORS C40 CITIES GRANT AND THE PROP L FUNDING
00:47:11 WHICH WAS RECENTLY AWARDED BY THE CTA.
00:47:14 THAT FUNDING WAS DIRECTLY DESIGNED TO SUPPORT OUR
00:47:15 CURBSIDE CHARGING IMPLEMENTATION AND INNOVATION
00:47:19 IN THE CITY. AND AS I MENTIONED EARLIER, WE
00:47:22 WILL ALSO HAVE A REDUCED CAPACITY TO APPLY FOR NEW
00:47:23 GRANTS GOING FORWARD WITH THE EXISTING STAFF.
00:47:26 AND THAT MATTERS BECAUSE IT'S THE ONLY WAY WE CAN ENSURE
00:47:30 EQUITABLE DEPLOYMENT OF PUBLIC CHARGING IS THROUGH GRANTS.
00:47:33 THE MARKET FORCES ALONE WILL NOT GO INTO THE AREAS THAT ARE
00:47:38 HARD TO REACH AND REACH THE COMMUNITIES THAT MOST NEED TO
00:47:41 ENJOY THE TRANSITION. >> THE LAST TWO SLIDES ARE
00:47:45 RESPONSIVE TO CHAIR CHAN'S QUESTIONS ABOUT OUR
00:47:48 ORGANIZATIONAL CHART. WE HAVE 101 POSITIONS AGAIN
00:47:52 THEY'RE ALL RESTRICTED BASED ON THEIR FUNDING SOURCE SO WE
00:47:56 CANNOT MOVE THEM AROUND INTO DIFFERENT ROLES FOR MTA AND THE
00:48:00 VAST MAJORITY ARE LOCAL 21 AND SEIU AND OUR VACANCY RATE
00:48:06 IS LOW AT ABOUT 7.6%. AND SO WITH THAT I WILL WRAP UP
00:48:13 AND SAY THAT WE OPERATE IN A SMALL FLEXIBLE FUNDING BASE
00:48:17 LEAN STAFFING STRUCTURE AND A LARGE CITYWIDE MANDATE.
00:48:20 WE ARE DEFINITELY ALIGNED WITH THE CITY'S PRIORITIES AROUND
00:48:24 EFFICIENCY AND DELIVERING FOR THE PEOPLE WE BRING IN OUTSIDE
00:48:25 FUNDING. WE COORDINATE IMPLEMENTATION
00:48:29 ACROSS THE DEPARTMENTS HERE IN THE CITY AND WE PROVIDE
00:48:32 PUBLIC ACCOUNTABILITY FOR OUR CITY'S CLIMATE COMMITMENTS.
00:48:36 THANK YOU AND I'M HAPPY TO ANSWER ANY QUESTIONS.
00:48:40 >> THANK YOU. AND SUPERVISOR SOUDER.
00:48:44 >> CHAIR THANK YOU FOR THE PRESENTATION.
00:48:45 DIRECTOR THE WITH THE DECLINE IN GENERAL FUNDS THROUGH THE
00:48:51 YEARS, YOU KNOW, IT SEEMS THAT YOU'RE MORE RELIANT NOW OR YOU
00:48:56 WILL HAVE TO BE MORE RELIANT ON BRINGING IN GRANTS.
00:48:59 CAN YOU SHARE A LITTLE BIT ABOUT YOUR CAPACITY FOR THAT?
00:49:04 >> YOU KNOW HOW MANY STAFF WORK ON THAT?
00:49:08 >> YOU KNOW IF THEY HAVE EXCESS CAPACITY AT THE MOMENT TO
00:49:12 PURSUE ADDITIONAL GRANTS, WHAT DOES THAT LOOK LIKE FOR YOU?
00:49:16 >> I THINK IT'S MOST EVIDENTLY NOTED IN OUR CLEAN
00:49:20 TRANSPORTATION WORK. SO I THINK THAT'S WHERE WE WILL
00:49:23 BE PREDOMINANTLY AFFECTED WITH BEING ABLE TO GO AFTER NEW
00:49:27 GRANTS 1.5 FTE JUST SIMPLY ISN'T ENOUGH TO BOTH MANAGE THE
00:49:31 EXISTING GRANTS. WE HAVE TO COMPLETE THE TASKS
00:49:32 THAT WE'VE AGREED TO AND ARE OBLIGATED TO CONTINUE TO
00:49:36 SUPPORT KIND OF THE BROADER TECHNICAL LIMITATION AND THEN
00:49:40 ALSO APPLY FOR NEW GRANTS WHICH YOU KNOW TAKES UP A LOT OF TIME
00:49:43 AS WELL. AND SO I DO NOT THINK WE'RE
00:49:46 GOING TO HAVE THE CAPACITY TO GO AFTER NEW GRANTS STARTING
00:49:48 THIS FISCAL YEAR. >> AND CAN YOU TELL ME MORE
00:49:51 ABOUT THE CLEAN TRANSPORTATION PROGRAM WHICH LOOKS LIKE IT'S
00:49:55 HEAVILY IMPACTED THE SORT OF WORK THAT THEY DO?
00:50:01 THE CLEAN TRANSPORTATION TEAM COORDINATES THE KIND OF
00:50:03 TRANSPORTATION SECTOR WORK WE FOCUS PRIMARILY ON VEHICLE
00:50:09 ELECTRIFICATION AND SO ONE OF OUR BIGGEST CHARGES PUN
00:50:12 INTENDED IS INSTALLING PUBLIC EV CHARGING ACROSS THE CITY.
00:50:16 AND SO WE THINK ABOUT THAT CHARGING THAT TAKES PLACE
00:50:20 IN PUBLIC LOTS THAT IS WORK THAT WE'RE HELPING TO
00:50:21 COORDINATE ACROSS OUR CITY FAMILY TO MAKE SURE THAT
00:50:25 THEY'RE BEING DEPLOYED. >> WE'VE SEEN THE DIRECT RESULT
00:50:29 OF THEIR WORK OVER THE PAST DECADE AND WHERE WE DOUBLED THE
00:50:33 NUMBER OF ELECTRIC VEHICLE CHARGING.
00:50:36 THANKS TO THE WORK OF THIS TEAM.
00:50:37 THEY ALSO ARE RESPONSIBLE FOR LOOKING FORWARD TO SEE WELL HOW
00:50:41 DO WE INNOVATE AND ACTUALLY DEPLOY NEW TECHNOLOGIES INTO
00:50:44 THE CITY. AND SO WHILE THE S.F. MTA IS A
00:50:48 PARTNER IN LEADING THE CURBSIDE CHARGING PROGRAM THAT
00:50:51 ORIGINATED FROM MY TEAM AND THE ENVIRONMENT DEPARTMENT SO THAT
00:50:55 WORK DOESN'T HAPPEN WITHOUT THE TECHNICAL EXPERTISE AND THEN
00:50:58 GOING AFTER AND PARTNERING WITH NEW INNOVATORS TO GET THE FIRST
00:51:01 CURBSIDE CHARGERS IN THE GROUND IN PARTNERING WITH ALL OF OUR
00:51:05 CITY DEPARTMENTS AND THEN HAVING THE RESPONSIBLE CITY
00:51:06 DEPARTMENT LEAD ON IT WHICH IN THIS CASE IS SFO, MTA.
00:51:10 AND SO WE HELP BASICALLY FACILITATE ACCESS TO CHARGING
00:51:13 FOR BOTH RESIDENTS RENTERS AND LIKE THESE PARTICULAR CUTS
00:51:21 DO YOU THINK THIS PUTS IN JEOPARDY THE THE PUBLIC EV
00:51:29 CHARGING CURBSIDE DOES IT MAKE IT MORE CHALLENGING?
00:51:32 >> YOU KNOW I THINK THE MTA IS THE PROGRAM LEAD FOR FOR THAT.
00:51:37 AND SO WHAT I DO KNOW IS WE'LL HAVE REDUCED CAPACITY TO
00:51:40 PROVIDE THE SUPPORT THAT WE WERE INTENDING TO PROVIDE
00:51:42 EVIDENT BY THE PROP L GRANT IN DEVELOPING THE APPLICATION
00:51:45 DOING THE TECHNICAL ANALYSIS, ALSO DOING CITY TO CITY
00:51:49 COMPARISONS OF HOW THEY'VE BEEN DEPLOYING CURBSIDE CHARGING
00:51:53 THERE. AND SO I CAN'T TELL YOU
00:51:56 SPECIFICALLY WHAT THE IMPACT WILL BE BUT IN TERMS OF THE
00:51:57 REDUCTION IN CAPACITY AND OUR ABILITY TO LEAN IN ON THAT
00:52:01 DEPLOYMENT, IT WILL BE REDUCED JUST BY SHEER NUMBER
00:52:04 AND CAPACITY TO. JUST FOR CLARIFICATION, WHEN
00:52:12 YOU SAY THAT THE POSITION ARE DELETED, ARE THEY CURRENTLY
00:52:15 FILLED AND THEN YOU DELETE THEM?
00:52:16 >> THE POSITION IS GOING TO BE VACANT.
00:52:20 >> AND SO THIS BRINGS UP ONE OF THE THAT CHALLENGES THAT WE
00:52:23 FOCUS ON THE REMOVAL THE DELETION OF THE POSITIONS
00:52:27 IN THE CLEAN TRANSPORTATION TEAM.
00:52:28 WE HAVE PLANNED FOR THE DELETION OF THE PROGRAM MANAGER
00:52:31 POSITION AND WE WERE KIND OF REORIENTING AND REALIGNING TO
00:52:35 GET EFFICIENCY THERE WITH THE ADDITIONAL $200,000 GENERAL
00:52:38 FUND CUT COMING IN YEAR TWO. WHAT THAT DOES IS EVEN THOUGH
00:52:44 WE HAVE EXISTING GRANT DOLLARS IN YEAR ONE TO POTENTIALLY FILL
00:52:48 THAT LIKE FUND THAT POSITION OR A PORTION OF THAT POSITION WE
00:52:51 KNOW THAT THE POSITION DOESN'T HAVE FUNDING TO BE SUPPORTED
00:52:55 IN YEAR TWO. AND SO THE IDEA THAT WITH THIS
00:52:58 VACANCY WE'LL BE ABLE TO BACKFILL THAT AND THEN HAVE TO
00:53:02 BASICALLY TERMINATE THAT POSITION AT THE END OF THE YEAR
00:53:06 IS NOT SOMETHING I WANT TO BE IN A POSITION TO DO AND NOR DO
00:53:08 I THINK IS REALISTIC FROM A HIRING PERSPECTIVE TO KIND OF
00:53:11 RELY ON THAT ON THAT CYCLE OF EMPLOYEE CYCLING.
00:53:17 >> THANK YOU. SUPERVISORS SAUTER THANK YOU
00:53:21 AND THE I KNOW YOU'RE YOU WERE CREATED IN THE 90S WHICH MEANS
00:53:26 YOU'RE PROBABLY ONE OF THE NEWER DEPARTMENTS STILL.
00:53:29 >> HOW YOU KNOW THE DEPARTMENT THAT WE HAVE TODAY IN TERMS OF
00:53:37 YOU KNOW GENERAL FUNDING IN TERMS OF EMPLOYEES HOW DOES
00:53:41 IT COMPARE TO DEPARTMENTS OF ENVIRONMENTS OR SIMILAR
00:53:45 AGENCIES ACROSS THE COUNTRY, OTHER MAJOR CITIES THAT WE'VE
00:53:50 BEEN BENCHMARKED AGAINST WE DID PREPARE TO SAY BECAUSE YOU
00:53:53 ASKED THIS QUESTION IN OUR BUDGET HEARING AND BACK
00:53:56 IN FEBRUARY SO WE CAN WE CAN PULL UP THAT SLIDE WHEN THIS
00:54:00 DEPARTMENT WAS STARTED. NOW 30 YEARS AGO AS A RESULT OF
00:54:04 THE LAST MAJOR CHARTER REFORM EFFORT, THERE WAS NO ONE THERE
00:54:08 WAS NO DEPARTMENT ENVIRONMENT. SO THIS STARTED OFF AS A SMALL
00:54:12 GROUP AS THEY FIGURED OUT WHAT THE ROLE SHOULD BE AND WHAT THE
00:54:15 MANDATE SHOULD BE AND WHAT THE WORK SHOULD BE.
00:54:18 AND THAT WORK HAS SCALED APPROPRIATELY AS THE NEED HAS
00:54:22 CHANGED AND THE INFORMATION HAS CHANGED.
00:54:24 AND IF WE LOOK INTO WHERE WE ARE NOW WITH OUR CURRENT
00:54:30 PROPOSED BUDGET AND THE STAFFING LEVEL THERE, WE MODEL
00:54:33 THIS OUT LOOKING AT COMPARISONS OF BOSTON, SEATTLE, D.C.
00:54:38 AND PORTLAND JUST TO SEE WHAT THEIR STAFFING LEVEL IS FOR THE
00:54:42 SAME WORK THAT THAT WE'RE DOING HERE IN OUR CITY, IN OUR
00:54:45 DEPARTMENT AND RIGHT NOW WHERE WE WILL END UP WITH THIS
00:54:49 CURRENT BUDGET IS A TICK ABOVE THAT AT RISK LINE WHICH IS
00:54:53 SIGNIFICANTLY LOWER THAN THAN IF YOU WANTED TO BENCHMARK US
00:54:58 AGAINST OTHER CITIES. THAT'S A LITTLE COMPLICATED
00:55:01 BECAUSE THERE'S ALWAYS DIFFERENT ROLES AND EXACT
00:55:02 POSITIONS BUT THIS GIVES US A ROUGH APPROXIMATION OF WHAT WE
00:55:05 ALLOCATE HERE IN OUR CITY SPECIFICALLY FOR THE ROLES
00:55:09 AROUND BUILDING ELECTRIFICATION AND CLEAN TRANSPORTATION
00:55:12 IN COMPARISON TO THESE OTHER CITIES.
00:55:13 >> THANK YOU. I THINK THIS IS A HELPFUL
00:55:17 SLIDE. I MEAN THE TWO TO SEE A
00:55:19 MISMATCH BETWEEN THE FACT THAT WE HAVE 45% OF OUR EMISSIONS
00:55:23 COMING FROM TRANSPORTATION AND THEN SUCH A SMALL ALLOTMENT
00:55:25 ALLOCATED IN IN THE 50S. AND FURTHERMORE, EVEN WITH
00:55:30 THESE BUDGET CUTS IS CONCERNING.
00:55:33 AND JUST TO RETURN TO THE THE EV CHARGERS I FOUND MYSELF ON
00:55:41 DON'T ASK ME HOW I GOT THERE BUT I FOUND MYSELF ON THE 28
00:55:43 DPW ANNUAL REPORT THE OTHER NIGHT AND I NOTED THAT THEY
00:55:48 WERE CELEBRATING 28 EV CHARGER PILOT AND WE'RE ALMOST 20 YEARS
00:55:57 IN AND IT SEEMS LIKE WE'RE MAYBE JUST NOW TURNING THE
00:56:00 CORNER FROM PILOT TO PROGRAM. AND SO ANY THREAT TO THAT
00:56:04 CERTAINLY CONCERNED ME AND I KNOW THAT'S SOMETHING THAT
00:56:08 INVOLVES YOU ALSO CERTAINLY INVOLVES DPW, MTA PARTICULARLY.
00:56:12 BUT I JUST WANTED TO EXPRESS MY CONCERN.
00:56:16 THANKS. THANK YOU.
00:56:19 >> THANK YOU. SO ROUGHLY HOW WE UNDERSTAND
00:56:23 THAT RIGHT NOW AT THIS MOMENT THAT THE YOU ARE FACING A CUT
00:56:30 ABOUT $4.3 MILLION, $4.4 MILLION COMPARED TO PREVIOUS
00:56:36 BUDGET THAT THAT NUMBER IS AN EXPRESSION ALSO OF THE GRANTS
00:56:40 WE RECEIVE WHICH ALSO EBBS AND FLOWS.
00:56:44 SO THAT IS PROBABLY NOT THE MOST THE NUMBER TO KIND OF
00:56:47 HINGE YOURSELF ON. IT'S IT'S THE FLEXIBLE SOURCE
00:56:52 OF FUNDING FROM THE GENERAL FUND AND THE WORK ORDERS THAT
00:56:53 ESSENTIALLY WE LOOK AT IN TERMS OF BALANCING OUR BUDGET.
00:56:59 SO THAT REDUCTION OVER THIS THIS NEXT TWO YEARS WILL BE
00:57:03 ABOUT $200,000. IT'S OFFSET A LITTLE BIT BY THE
00:57:07 WORK ORDER FROM THE INCREASED WORK ORDER FROM THE PUC THAT
00:57:11 WAS SECURED. AND SO I THINK THE DECLINE IS
00:57:14 PROBABLY STILL OFF BY 1.1. 5 MILLION.
00:57:17 >> SO SORRY. >> CAN WE BE MORE CLEAR ABOUT
00:57:21 THIS? SO WHAT YOU'RE SAYING IS THAT
00:57:25 BECAUSE YOUR PROPOSED BUDGET THAT I'M LOOKING AT RIGHT NOW
00:57:28 IS PROSPECTIVELY ANYWHERE BETWEEN 36.8 36.5 AND THEN 36.8
00:57:38 FOR THE NEXT TWO FISCAL YEAR 36.5 MILLION FOR THIS UPCOMING
00:57:44 FISCAL YEAR AND THE SECOND FIT YEAR IS 38.5.
00:57:45 BUT THAT IS WHAT IS ACTUALLY ULTIMATELY TWO YEARS DIFFERENCE
00:57:52 CUT. SO YOUR INITIAL CUT IS ABOUT
00:57:55 4.3 MILLION AND THEN THEN YOU GENERATE ABOUT 293,000.
00:58:02 I'M GOING TO LET OUR CEO KIND OF WALK YOU THERE BECAUSE IT IS
00:58:03 COMPLICATED. THANK YOU.
00:58:05 >> VARIOUS FUNDING SOURCES WE HAVE.
00:58:09 GREAT. THANK YOU.
00:58:10 LEO CHU AT THE ENVIRONMENT DEPARTMENT.
00:58:11 FEEL FREE TO CUT ME OFF IF I'M GIVING TOO MUCH DETAIL OR
00:58:14 DIFFERENT INFORMATION THAN YOU'RE LOOKING FOR.
00:58:16 >> SO THE FIRST QUESTION IS THE LIKE WE INCLUDED THE TABLES
00:58:20 BECAUSE WE WANTED TO TRACK TO ALL OF YOUR DOCUMENTS.
00:58:24 AND SO IN THE CURRENT YEAR THE OFFICIAL TOTAL BUDGET IS
00:58:27 40,887,390. ACTUALLY WE COULD SHOW THAT
00:58:31 SLIDE IF THAT'S HELPFUL. AND THEN IN THE BUDGET YEAR
00:58:35 2627 IT DROPS TO 36,532,428. AND SO WHAT TY WAS INDICATING
00:58:42 IS THAT THAT $4.3 MILLION DROP ONLY I LIKE IF I'M ESTIMATING
00:58:49 ABOUT A QUARTER OF IT IS RELATED TO THE KEY CLIMATE
00:58:52 AND CLEAN TRANSPORTATION WORK THAT WE'RE TALKING ABOUT.
00:58:56 ABOUT HALF OF IT IS TECHNICAL DUE TO US TRYING TO ALIGN WITH
00:59:00 THE COMPTROLLER'S OFFICE GUIDANCE ABOUT HOW AN OVERHEAD
00:59:01 MODEL IS SUPPOSED TO WORK. SO THAT'S REALLY TECHNICAL
00:59:04 AND CAN BE SET ASIDE ABOUT HALF THE AMOUNT.
00:59:07 AND THEN IF YOU LOOK AT THE IMPOUND BUDGET BASICALLY THERE
00:59:12 WAS A $15.6 MILLION NUMBER IN THE FINAL BUDGET.
00:59:15 BUT THE RATE PROCESS HAD NOT FINISHED AND SO THE REFUGE RATE
00:59:22 BOARD DID NOT GRANT THE FULL PROPOSAL.
00:59:26 THEY ONLY GRANTED A SMALLER AMOUNT.
00:59:27 SO WHEN YOU LOOK AT THE DIFFERENCE IN THAT FIRST ROW OF
00:59:31 SOLID WASTE IMPOUND ACCOUNT MONEY THAT'S REALLY JUST
00:59:34 REFLECTING THE BUDGET ACCURATELY IN THE SECOND YEAR.
00:59:37 SO THOSE TWO EFFECTS THAT ARE ABOUT $3 MILLION YOU CAN TREAT
00:59:41 AS TECHNICAL. THE REST OF IT IS LOST TO THE
00:59:44 DEPARTMENT. AND THE DRIVERS ARE OUR GENERAL
00:59:48 FUND THAT WE RECEIVE DIRECTLY AS WELL AS REDUCTIONS
00:59:49 IN FEDERAL AND STATE GRANTS AND WORK ORDERS.
00:59:52 >> AND THAT DOES YOUR 2627 OR YOUR 2728 INCLUSIVE IS DOES
01:00:02 YOUR BUDGET INCLUSIVE CURRENTLY THAT WE'RE LOOKING AT THIS
01:00:03 GRAPH, DOES THAT INCLUDE AS A PUC $1.4 MILLION A WORK ORDER?
01:00:09 >> IT DOES IT INCLUDES THE ROUGHLY LIKE 770,000 IN THE
01:00:15 FIRST YEAR AND 820 SOMETHING THOUSAND IN THE SECOND YEAR.
01:00:16 SO THAT IS NOW INCLUDED IN THE WORK ORDER.
01:00:19 SO THAT'S THAT WAS A BIG CHANGE INITIALLY IN THE DEPARTMENT
01:00:24 PHASE WE WEREN'T EXPECTING ANY AND SO WITH THE MAYOR'S OFFICE
01:00:27 COORDINATION WITH PUC THEY RESTORED THE LEVEL THEY WERE AT
01:00:31 AND EVEN INCREASED A BIT MORE SO THAT THAT'S THE ONE REAL
01:00:35 SAVING GRACE FOR OUR BUDGET BEING WHERE IT IS.
01:00:39 >> UNDERSTOOD. AND THEN THE THREE MILLIONS
01:00:41 THAT YOU LOST OR ADJUSTED OUR TECHNICAL ADJUSTMENTS
01:00:45 IN FEDERAL GRANTS THAT YOU NO LONGER RECEIVE AROUND THREE
01:00:49 MILLIONS OUT OF THAT 4 MILLION. >> WELL, I MEAN IF WE LOOK AT
01:00:57 THE GENERAL FUND ROW, RIGHT I MEAN THOSE ARE JUST THE
01:01:00 OFFICIAL GENERAL FUND NUMBERS. SO WE HAD 904,833 IN THE
01:01:04 CURRENT YEAR AND THAT DROPS TO 545,149 IN THE SECOND YEAR I
01:01:11 MEAN 2627 AND THE NET DROPS FURTHER TO 390,998 AND 2728.
01:01:18 SO THE GENERAL FUND DOES CONTINUE TO DECREASE EACH YEAR.
01:01:22 THE REASON THAT THE NUMBER IN 2728 ISN'T EXACTLY 200,000
01:01:26 IS BECAUSE THE WAY THAT THE MAYOR'S OFFICE
01:01:30 AND COMPTROLLER'S OFFICE HANDLES SALARY AND FRINGE LIKE
01:01:33 SOME OF THE PRIOR CFO WAS MENTIONED THERE'S SOME BUILT
01:01:36 IN ESCALATIONS SO OUR ORIGINAL PROPOSAL WOULD HAVE HAD ALMOST
01:01:40 600,000 IN THE SECOND YEAR BUT THEY CUT JUST OVER 200,000
01:01:46 AND THAT'S WHY WE DROPPED TO 390,000.
01:01:47 >> THANK YOU FOR POINTING ME OUT TO THE GENERAL FUND SUPPORT
01:01:51 LINE LINE ITEM. >> I APPRECIATE THAT.
01:01:54 I DON'T HAVE ANY MORE QUESTIONS AND AND WE'LL GO FROM HERE ON
01:01:58 OUT. >> GREAT.
01:02:01 THANK YOU SO MUCH. THANK YOU FOR YOUR ANSWERS
01:02:02 AND THANK YOU FOR YOUR WORK. >> AND SO WITH THAT, LET'S GO
01:02:06 TO LAW LIBRARY
01:02:48 . OKAY.
01:02:56 OKAY. THE SLIDES POP UP AUTOMATICALLY
01:03:03 . >> THERE WE GO.
01:03:04 THANK YOU. OKAY.
01:03:07 HELLO, CHAIRWOMAN CHAN AND COMMITTEE MEMBERS.
01:03:08 I'M DIANE RODRIGUEZ. I'M THE DIRECTOR OF THE LAW
01:03:12 LIBRARY. AND WITH ME TODAY IS ANDREA
01:03:15 WOODS, OUR NEW ASSISTANT DIRECTOR.
01:03:17 AND ALSO ONE OF OUR REFERENCE LIBRARIANS, COURTNEY NGUYEN.
01:03:21 >> THANKS FOR THE OPPORTUNITY TO PRESENT OUR BUDGET.
01:03:23 THE LAW LIBRARY HAS BEEN IN EXISTENCE IN SAN FRANCISCO
01:03:28 FOR 156 YEARS. >> WE ARE THE ONLY PUBLIC LAW
01:03:29 LIBRARY IN SAN FRANCISCO. >> AND WE ARE OPEN AND FREELY
01:03:33 AVAILABLE TO ALL. >> >> THIS SLIDE REPRESENTS OUR
01:03:40 APPROPRIATION AND IT'S MANDATED BY CALIFORNIA STATE STATUTE
01:03:44 AND THE CITY CHARTER. >> THE APPROPRIATION SUPPORTS
01:03:45 ONLY COURSE SERVICES AND FUND AMOUNTS ARE DETERMINED BY OTHER
01:03:49 DEPARTMENTS THAT PROVIDE THEM SUCH AS THE DEPARTMENT OF REAL
01:03:52 ESTATE FOR OUR LEASE THE DEPARTMENT OF HUMAN RESOURCES
01:03:56 WHICH SUPPORTS OUR MANAGEMENT AND BENEFITS THE DEPARTMENT OF
01:03:59 TECHNOLOGY WHICH SUPPORTS ALL OF OUR I.T.
01:04:03 NEEDS. AND OUR APPROPRIATION ACTUALLY
01:04:07 COVERS ROUGHLY HALF OF THE OPERATING BUDGET REQUIRED TO
01:04:11 RUN THE LAW LIBRARY. WITHOUT OUR APPROPRIATION WE
01:04:14 WOULDN'T HAVE OUR SPACE, OUR MANAGEMENT POSITIONS AND OUR
01:04:18 TECHNOLOGY AND SUPPORT INCLUDING PUBLIC COMPUTERS THAT
01:04:19 PROVIDE CRITICAL ACCESS TO LEGAL LEGAL DATABASES.
01:04:25 >> THE REMAINDER OF OUR OPERATING EXPENSES ARE PROVIDED
01:04:30 BY A PORTION OF CIVIL FILING FEES FROM THE SAN FRANCISCO
01:04:34 SUPERIOR COURT. THIS SLIDE SHOWS OUR PROJECTED
01:04:35 FILING FEE BUDGET FOR 2627. OUR FILING FEE REVENUE SUPPORTS
01:04:43 STAFF SALARIES AND BENEFITS MATERIALS AND COLLECTIONS,
01:04:46 LIBRARY SYSTEMS, EQUIPMENT AND INSURANCE AND ALL OF OUR
01:04:48 SUPPLIES. >> >> THIS SIDE REPRESENTS THE
01:04:54 STATE OF SAN FRANCISCO FILING FEE REVENUE SINCE 2008 FILING
01:04:58 FEES HAVE DROPPED OVER 37% IN SAN FRANCISCO SINCE 2008 DUE
01:05:04 MAINLY TO PASSAGE OF THE CALIFORNIA UNIFORM CIVIL FILING
01:05:08 FEE ACT IN 2007 WHICH NO LONGER ALLOWED FILING FEE INCREASES
01:05:13 STATEWIDE. WE'RE ALSO AFFECTED BY
01:05:16 INCREASED FEE WAIVERS AND ALTERNATIVE DISPUTE
01:05:17 RESOLUTION WHICH IS BEING MORE AND MORE UTILIZED BY LOW INCOME
01:05:20 FILERS. >> THE PANDEMIC FURTHER
01:05:23 DECREASED OUR FILING FEE REVENUE DUE TO COURT CLOSURES
01:05:28 AND ALL THAT. THE PANDEMIC, THE TROUBLES
01:05:31 THERE. BUT WE ARE NOW RECOVERING JUST
01:05:35 NOW FROM PANDEMIC FEE FILING FILING FEE LOSSES.
01:05:38 >> SO THIS SLIDE REPRESENTS US AS THE ONLY PUBLIC LAW LIBRARY
01:05:43 IN SAN FRANCISCO. WE OFFER MANY FREE LEGAL
01:05:46 INFORMATION RESOURCES TO THE COMMUNITY.
01:05:50 AND THIS SLIDE REPRESENTS OUR CORE SERVICES.
01:05:53 IN ADDITION TO SERVING THE PUBLIC, WE ALSO SERVE CITY
01:05:55 OFFICIALS AND DEPARTMENT AND LOCAL LEGISLATORS LAW
01:05:58 FIRMS, SMALL BUSINESSES, LEGAL SERVICES ORGANIZATIONS AND SOLO
01:06:02 PRACTITIONERS WHO RELY ON OUR RESOURCES TO ASSIST LOW INCOME
01:06:06 AND UNDERSERVED COMMUNITIES WITH LEGAL SERVICES FUNDS UNDER
01:06:10 THREAT. WE DEMAND THE DEMAND FOR
01:06:11 ACCESSIBLE INFORMATION IS GROWING MAKING LAW LIBRARY
01:06:15 ESSENTIAL SERVICES EVEN GREATER .
01:06:18 >> SAN FRANCISCO JUDGES TELL US THAT APPROXIMATELY 80% OF CIVIL
01:06:21 FILINGS IN SAN FRANCISCO ARE NOW SELF-REPRESENTED.
01:06:26 >> OUR TEAM ASSISTS EVERYONE WITH SERVICES TO HELP THEM
01:06:30 UNDERSTAND THE LAW AND PROTECT THEIR RIGHTS.
01:06:31 TYPICAL EXAMPLES INCLUDE EMPLOYMENT LAW, EVICTION,
01:06:34 FAMILY LAW, CONSUMER LAW. IMMIGRATION.
01:06:38 PROBATE ISSUES. WE'RE BASICALLY IN A TIZZY FOR
01:06:41 EVERYONE THAT HAS A LEGAL ISSUE TOO TO WORK WITH IN SAN
01:06:45 FRANCISCO. WE REMAIN DEDICATED TO OUR CORE
01:06:49 SERVICES WHILE INTEGRATING NEW TECHNOLOGIES SUCH AS A.I.
01:06:53 AND LEGAL DATABASES WITH TRANSLATION SERVICES FOR
01:06:54 NON-ENGLISH SPEAKERS. >> OUR GOAL IS TO ENSURE THAT
01:06:57 EVERYONE HAS EQUAL ACCESS TO LEGAL RESOURCES RESOURCES SO
01:07:01 EACH PERSON HAS A FAIR OPPORTUNITY WITH THE LAW.
01:07:05 >> THIS YEAR WE HAVE DEVELOPED NEW PARTNERSHIPS WITH THE SAN
01:07:09 FRANCISCO PUBLIC LIBRARY AND INCREASED OUTREACH TO
01:07:10 SPREAD THE WORD ACROSS SAN FRANCISCO.
01:07:15 >> THIS IS OUR CURRENT APPROPRIATION CITY
01:07:19 ORGANIZATIONAL CHART. ALL POSITIONS ARE FULL TIME
01:07:23 PERMANENT. AND OUR CHARTER MANDATED THIRD
01:07:24 POSITION REMAINS UNFILLED DUE TO BUDGET CONSTRAINTS.
01:07:31 >> THIS CHART REPRESENTS OUR FULL LAW LIBRARY STAFF
01:07:35 INCLUDING OUR FILING FEE PAID STAFF.
01:07:38 OUR FULL STAFF INCLUDES POSITIONS FUNDED BY THE FILING
01:07:42 FEE REVENUE IN ORANGE. AND WE TRANSITION TO LIBRARIAN
01:07:46 ROLES TO LIBRARY ASSISTANT POSITIONS DUE TO FUNDING
01:07:50 CONSTRAINTS. WE HAVE ONLY TWO MANAGEMENT
01:07:51 POSITIONS AND WE HAVE LITTLE TURNOVER IN STAFF.
01:07:54 WE'RE A SMALL BUT MIGHTY TEAM OF LEGAL INFORMATION
01:07:58 PROFESSIONALS. >> THANK YOU FOR THE
01:08:05 OPPORTUNITY TO PRESENT OUR BUDGET.
01:08:06 >> DO YOU HAVE ANY QUESTIONS FOR ME?
01:08:08 YES. >> AND I THINK THAT LAST TIME
01:08:09 WHEN YOU CAME BEFORE US OR MAYBE IT WAS A WHILE AGO THAT
01:08:13 YOUR HEAD OF TECHNOLOGY WAS ALSO VACANT.
01:08:16 RIGHT. IT'S BEEN VACANT FOR QUITE A
01:08:20 FEW YEARS BECAUSE THAT'S THE ONLY THING WE CAN EVER OFFER AS
01:08:24 A BUDGET REDUCTION. >> YEAH.
01:08:25 AND THEN ALSO BUT IT'S KIND OF DIFFICULT FOR YOU, CORRECT?
01:08:29 BECAUSE THE GOAL ALSO IS THAT IF YOU CAN HAVE AN ONLINE A
01:08:35 BETTER A MORE ROBUST ONLINE ARCHIVE AND ACCESS THEN YOU
01:08:39 WILL HAVE MORE I GUESS MEMBERSHIP FOR YOUR LAW
01:08:43 LIBRARY. >> RIGHT.
01:08:44 WE AREN'T A MEMBERSHIP LIBRARY. WE'RE JUST FREE AND OPEN TO
01:08:48 EVERYONE BUT IT WOULD HELP US BETTER SERVE PEOPLE ALSO MUCH
01:08:51 OF OUR WORK HAS GONE VIRTUAL. >> PEOPLE STILL COME IN TO THE
01:08:55 LIBRARY AND USE ALL OF OUR RESOURCES AND ALL OF THEIR
01:08:56 DIFFERENT FORMATS. BUT THE MORE THAT WE CAN HAVE
01:08:59 ELECTRONIC ACCESSIBILITY, THE MORE WE'RE ABLE TO SERVE PEOPLE
01:09:03 REMOTELY AT ALL TIMES. YOU KNOW PEOPLE ARE AT WORK,
01:09:07 THEY CAN EMAIL US, WE CAN WE CAN HELP THEM WITH MUCH GREATER
01:09:10 THINGS. >> SO YEAH, AS WE'RE SO SMALL
01:09:12 ALL OF OUR OUT ALL OF OUR EFFORTS COULD BE EXPANDED IF WE
01:09:15 HAD JUST EVEN ONE MORE POSITION TO BE ABLE TO DEDICATE TO THAT
01:09:22 AND LET US ALL DO MORE OUTREACH AND THINGS LIKE THAT.
01:09:25 >> MAY I PUT IN A NOTE TO SAY THAT, YOU KNOW, THE THE
01:09:30 CONVERSATION PERHAPS COULD BE WITH THE CITY'S OFFICE OF
01:09:34 INNOVATION AND THAT WE OFTEN TIME PARTNERS WITH OTHERS
01:09:38 TECHNOLOGY PARTNER TO JUST BE ABLE TO PROVIDE SOME SUPPORT
01:09:42 BRIDGING BRIDGING THAT GAP FOR THE TIME BEING.
01:09:45 >> GREAT. I APPRECIATE THAT.
01:09:46 THANK YOU. VICE CHAIR DORSEY THANK YOU
01:09:49 CHAIR CHANDA. >> THAT'S ACTUALLY I'M GLAD YOU
01:09:50 MENTIONED THAT BECAUSE I WAS KIND OF WHERE I WAS GOING
01:09:52 RECALLED THAT LAST YEAR WE HAD SOME WE HEARD FROM THE DISTRICT
01:09:56 ATTORNEY'S OFFICE ABOUT FEES THAT THEY'RE INCURRING FOR
01:10:00 THEIR USE OF LEXIS-NEXIS AND WESTLAW.
01:10:04 I ASSUME THOSE ARE DATABASES YOU OFFER TO?
01:10:05 WE DO. AND I'M JUST I RECALL ALSO THAT
01:10:08 WE I THINK WE STARTED A CONVERSATION WITH THE
01:10:11 DEPARTMENT OF TECHNOLOGY ABOUT WHETHER THERE MIGHT BE YOU
01:10:15 KNOW, WHETHER WE SHOULD HAVE A CITYWIDE LICENSE OR USE OUR
01:10:19 COLLECTIVE YOU KNOW, WE'VE GOT CITY ATTORNEYS AND DISTRICT
01:10:22 ATTORNEYS AND THE LAW LIBRARY AND I'M SURE THERE'S OTHER
01:10:25 OFFICES THAT HAVE THAT MAKE USE OF THESE DATABASES WHETHER AS A
01:10:30 CITY WE MIGHT BE ABLE TO LEVERAGE OUR COLLECTIVE
01:10:33 BARGAINING POWER FOR A BETTER DEAL FOR ALL OF US.
01:10:37 BUT I THINK IT ALSO PICKS UP FROM WHAT CHAIR CHAN WAS
01:10:41 TALKING ABOUT IF THERE COULD BE SOME EXPERTISE YOU COULD BORROW
01:10:45 IF NEEDED ON SOME THINGS BECAUSE WE'RE ALL USING MUCH OF
01:10:49 THE SAME MATERIAL, RIGHT? >> I AGREE WITH THAT 100% AND I
01:10:54 THINK THE CITY WOULD HAVE MORE BARGAINING POWER IF IT WAS
01:10:57 CENTRALIZED TO SOME NEGOTIATE SOME OF THOSE BIG LEGAL
01:11:00 CONTRACTS BECAUSE THEY ARE SO EXPENSIVE.
01:11:02 HOWEVER, THE DISTRICT ATTORNEY'S ONE OR AND THE CITY
01:11:05 ATTORNEY'S CONTRACTS ARE PROPRIETARY IN THAT THEY HAVE
01:11:09 ALL KINDS OF BELLS AND WHISTLES THAT OPERATE LIKE A LAW FIRM
01:11:12 ALLOWING EACH ATTORNEY TO HAVE SAVED FOLDERS AND SHARE THEIR
01:11:16 INFORMATION AND KEEP IT VERY PRIVATE AND CONFIDENTIAL AS
01:11:17 ATTORNEYS NEED IT TO BE. WHEREAS IN THE LAW LIBRARY WE
01:11:21 HAVE A PATRON ACCESS DATABASE WHICH DOESN'T HAVE ALL THOSE
01:11:24 FEATURES THAT ALLOWS EVERYONE TO DO RESEARCH.
01:11:28 IT JUST DOESN'T SAVE ANYTHING. SO WHILE THEY COULDN'T BE
01:11:31 SHARED TO SUBSTITUTE ONE OVER THE OTHER, I THINK THE
01:11:35 BORROWING POWER WOULD BE THE BUYING POWER WOULD BE GREAT
01:11:38 AND WE DO OFFER A LEXISNEXIS DIGITAL LIBRARY THAT ANYONE
01:11:42 IN THE CITY CITY STAFFERS CAN TAP INTO WITH UNLIMITED USE FOR
01:11:46 ELECTRONIC E-BOOKS, LEGAL E-BOOKS.
01:11:50 >> OKAY. OKAY.
01:11:51 THANK YOU. THANKS.
01:11:51 YEAH. THANK YOU.
01:11:54 >> AND THANK YOU SO MUCH FOR YOUR SERVICE.
01:11:55 SURE. THANK YOU.
01:11:56 THANK YOU. AND THE NEXT WE HAVE THE CITY
01:11:58 DEPARTMENT IS PROBABLY BY FAR MORE POPULAR THAN APPLE PIE.
01:12:02 >> PUBLIC LIBRARY
01:12:55 . >> ALL RIGHT.
01:12:56 GOOD AFTERNOON, CHAIR CHAN AND COMMITTEE MEMBERS.
01:13:00 I AM MAUREEN SINGLETON AND I AM THE CHIEF OPERATING OFFICER FOR
01:13:03 THE SAN FRANCISCO PUBLIC LIBRARY.
01:13:04 >> WE WANTED TO THANK YOU FOR THIS OPPORTUNITY TO WALK
01:13:07 THROUGH OUR BUDGET WITH YOU TODAY AND WE WILL BE FOCUSING
01:13:11 IN ON PROVIDING SOME FOUNDATION FOUNDATIONAL INFORMATION ABOUT
01:13:15 THE LIBRARY THAT HELPS US FOCUS OUR WORK, OUR SERVICES AND OUR
01:13:19 COLLECTIONS AND THE PARTNERSHIPS WE HAVE WITH THE
01:13:23 COMMUNITY THE BOARD, THE MAYOR'S OFFICE AND OUR SISTER
01:13:27 CITY DEPARTMENTS. I'LL WALK YOU THROUGH A HIGH
01:13:31 OVERVIEW OF OUR BUDGET AND THEN SHARE SOME STORIES THAT ARE
01:13:35 DATA TELLING US ABOUT HOW OUR PATRONS ARE UTILIZING OUR
01:13:39 SERVICES AND HOW SATISFIED THEY ARE WITH LIBRARY SERVICES.
01:13:43 >> NEXT SLIDE. SO SINCE 1879 THE CITY'S PUBLIC
01:13:46 LIBRARY HAS SERVED AS AN ANCHOR FOR OUR CITIZENS PROVIDING
01:13:51 ACCESS AND OPPORTUNE NEEDS FOR OUR SAN FRANCISCANS.
01:13:55 >> OUR PROPOSED BUDGET FOR THE UPCOMING FISCAL YEARS 2728
01:14:01 CONTINUES WITH THAT TRADITION. >> OUR STRATEGIC PLAN SEEN HERE
01:14:05 WITH THE CALLED VISION 2030 THAT HAS DISTINCT VISION
01:14:09 MISSION AND VALUE STATEMENTS SERVES AS OUR GUIDEPOSTS FOR US
01:14:15 AS WE BUILD EVOLVE OUR SERVICES, OUR COLLECTIONS
01:14:19 AND OUR BUDGET. NEXT SLIDE PLEASE.
01:14:23 >> OVER THE NEXT TWO FISCAL YEARS WE HAVE A TOTAL BUDGET
01:14:27 PROPOSED OF $400 MILLION OR APPROXIMATELY $200 MILLION PER
01:14:30 FISCAL YEAR OVER THAT TIME PERIOD.
01:14:34 >> EACH FISCAL YEAR WE PROVIDE A MINIMUM OF NEARLY 73,000 OPEN
01:14:38 HOURS FOR OUR COMMUNITY. WHAT THAT MEANS IS WE ARE
01:14:43 PROVIDING SERVICES ACROSS THE CITY IN OUR 27 BRANCH LIBRARIES
01:14:47 OUR MAIN LIBRARY WITH OUR BOOKMOBILE SERVICES AND WE HAVE
01:14:53 TO SUPPORT SERVICES THAT SERVE AS BACK OF HOUSE OPERATION
01:14:58 AND OVERALL OUR TOTAL CAMPUS IS 650,000FT2.
01:15:01 AND REALLY IF YOU THINK ABOUT IT, OUR CORE SERVICES IS OUR
01:15:06 LIBRARY FACILITIES THEMSELVES AS WELL AS OUR SERVICES
01:15:13 AND COLLECTIONS THAT WE PROVIDE FOR THE COMMUNITY.
01:15:14 >> WE HAVE COLLECTIONS IN OVER 35 LANGUAGES IN VARIOUS
01:15:18 FORMATS. >> WE HAVE LITERACY SERVICES
01:15:21 THAT SPAN FROM YOUTH SERVICES, ADULT SERVICES, TECHNICAL
01:15:25 AND FINANCIAL LITERACY AND SPECIALIZED PROGRAMS CALLED
01:15:29 READER PROGRAMS OUR CAREER ONLINE HIGH SCHOOL PROGRAM
01:15:33 AND PROJECT READ. WE ALSO HAVE ACCESSIBILITY
01:15:37 SERVICES THROUGHOUT OUR ORGANIZATION WITH SPECIALTY
01:15:41 SITES AT THE MAIN LIBRARY THE TALKING BOOKS AND BRAILLE
01:15:44 CENTER AS WELL AS THE DEAF SERVICES CENTER TO PROVIDE ALL
01:15:48 OF THESE SERVICES. IT TAKES A VILLAGE AND AS YOU
01:15:52 CAN SEE HERE WE HAVE APPROXIMATELY 735 FULL TIME
01:15:56 EQUIVALENT EMPLOYEES ACROSS OUR ORGANIZATION ON A NET LEVEL.
01:16:00 >> THIS REQUIRES US TO HAVE A PLETHORA OF SERVICES
01:16:03 AND DISCIPLINES THAT INCLUDES LIBRARIANS, PAGES, TEXTS,
01:16:07 STATIONERY ENGINEERS, CUSTODIANS, I.T. PEOPLE AND OF
01:16:15 COURSE THE H.R. FOLKS WHO HIRE US ALL TO
01:16:16 PROVIDE THE LIBRARY SERVICES FOR THE COMMUNITY.
01:16:19 >> I WANTED TO LET YOU KNOW THAT WE HAVE APPROXIMATELY 2.7%
01:16:25 OF OUR STAFF THAT ARE MBA POSITIONS WHICH IS LESS THAN
01:16:29 THE CITY'S 4%. >> WE DO ALSO MAKE SURE THAT WE
01:16:33 ARE RESPONSIBLE TO THE STAFFING PATTERNS THAT ARE NEEDED
01:16:38 IN ORDER TO STAY OPEN THOSE ADDITIONS ALL OF THOSE HOURS,
01:16:43 SEVEN DAYS A WEEK. >> NEXT SLIDE PLEASE.
01:16:47 SO THE LIBRARY HAS WHAT'S CALLED A LIBRARY PRESERVATION
01:16:49 FUND. THIS IS OUR LIFE BLOOD.
01:16:52 IT IS ALSO A VOTER MANDATE. THE VOTERS HAVE TOLD US THREE
01:16:58 TIMES IN 1994 AND 2007 AND THE MOST RECENTLY IN 2022 THAT THEY
01:17:02 WANT A PRIORITIZED LIBRARY SERVICES FOR THE CITY
01:17:05 AND COUNTY OF SAN FRANCISCO. AND IN THAT THAT REPRESENTS A
01:17:11 ROUGHLY 97% OF OUR ANNUAL REVENUES.
01:17:15 WE ALSO HAVE THE BENEFIT OF A LIBRARY PRESERVATION FUND FUND
01:17:19 BALANCE WHICH IS COMPARABLE TO A SAVINGS ACCOUNT.
01:17:24 WHAT WE DO WITH THIS FUNDING IS WE TREAT IT AS A ONE TIME
01:17:27 SOURCE TO HELP US FUND ONE TIME INVESTMENT SUCH AS CAPITAL
01:17:30 AND EQUIPMENT. SO WE ARE VERY GOOD STEWARDS OF
01:17:34 THAT RESOURCE AND USE IT WISELY.
01:17:35 >> NEXT SLIDE PLEASE. SO THIS SLIDE WALKS YOU THROUGH
01:17:39 THE MAJOR USE CATEGORIES FOR THE LIBRARY'S PROPOSED BUDGET.
01:17:43 AND AS I'VE ALREADY MENTIONED WITH A MINIMUM OF 73,000 HOURS
01:17:49 THAT WE'RE PROVIDING EACH MONTH OR EACH YEAR THAT IS OUR
01:17:53 LARGEST COST CATEGORY WHICH SHOULD BE NO SURPRISE.
01:17:56 THEY ARE ALSO OUR MOST VALUABLE RESOURCES BECAUSE WE ARE
01:17:59 PROVIDING DIRECT SERVICES TO THE COMMUNITY.
01:18:04 THE NEXT HIGHEST COST CATEGORY FOR US IS TYPICALLY OUR
01:18:08 COLLECTIONS BUDGET IS AROUND 10 TO 11% OF OUR BUDGET WHICH IS
01:18:11 ON PAR WITH MANY OF THE PEER LIBRARIES.
01:18:15 AND AS A CITY AS A SET ASIDE DEPARTMENT WE ARE REQUIRED TO
01:18:20 ABSORB ALL COST INCREASES AND STAY WITHIN OUR AVAILABLE
01:18:24 BUDGET. AND THE PROPOSED BUDGET DOES DO
01:18:28 THAT. OUR THIRD HIGHEST COST CATEGORY
01:18:30 EACH YEAR OSCILLATES BETWEEN CAPITAL WHICH DEPENDS UPON THE
01:18:34 CASH FLOW NEEDS FOR A PARTICULAR PROJECT AND SERVICES
01:18:38 OF OTHER DEPARTMENTS. >> SO THAT'S WHERE WE PAY
01:18:42 DEPARTMENTS LIKE PUBLIC WORKS FOR HELPING US MAINTAIN OUR
01:18:45 FACILITIES IN THE STATE OF GOOD REPAIR OR WORKING WITH
01:18:49 DEPARTMENTS LIKE THE PUC WHO SERVE AS A PASS THROUGH FOR OUR
01:18:52 LIGHT HEAT AND POWER COSTS. >> NEXT SLIDE PLEASE.
01:18:56 SO THE NEXT THREE SLIDES I'M GOING TO HIGHLIGHT SOME OF THE
01:19:00 DATA STORIES THAT WE'RE HEARING FROM OUR PATRONS.
01:19:05 WE DO ISSUE A MONTHLY ACT A SURVEY TO ACTIVE PATRONS THAT'S
01:19:09 RANDOMIZED TO MAKE SURE THAT NO ONE IS ASKED TO COMPLETE THE
01:19:14 SURVEY MORE THAN ONCE A YEAR. WHAT THIS HELPS US UNDERSTAND
01:19:17 IS THE SATISFACTION THAT OUR PATRONS HAVE WITH THE SERVICES
01:19:23 AND BUDGET DECISIONS THAT WE'RE MAKING.
01:19:25 >> YOU CAN CLEARLY SEE FROM THIS REPRESENTATION FROM
01:19:28 FEBRUARY TO APRIL OF THIS YEAR THAT WE HAVE AN OVERALL
01:19:33 SATISFACTION RATE OF 9.0. SO THIS WOULD SUGGEST THAT THE
01:19:39 PATRONS ARE QUITE SATISFIED WITH THE SERVICES THAT ARE
01:19:43 PROVIDED. TO CHAIR CHAN'S POINT, WE ARE
01:19:44 AS POPULAR AS APPLE PIE AND WE LIKE TO KEEP IT THAT WAY.
01:19:50 SO WE DO I DO WANT TO GIVE YOU COMFORT IN KNOWING THAT WE
01:19:52 MONITOR HOW THESE RESPONSES CHANGE OVER TIME TO SEE HOW
01:19:58 THAT SHOULD INFLUENCE WHAT DECISIONS WE'RE MAKING AROUND
01:20:02 OUR INVESTMENTS FOR THE COMMUNITY.
01:20:05 NEXT SLIDE PLEASE. SO THIS SLIDE WALKS YOU THROUGH
01:20:09 OUR CIRCULATION RATES OVER TIME.
01:20:10 AND WHAT YOU'RE SEEING HERE IS A CONTINUED AND STEADY GROWTH
01:20:14 IN OUR OVERALL CIRCULATION. THIS COVERS BOTH OUR PHYSICAL
01:20:18 CIRCULATION AND OUR ELECTRONICS.
01:20:21 THE LAST THREE FISCAL YEARS WE'VE BEEN BREAKING RECORDS.
01:20:27 IN 23 WE HAD 12.6 MILLION CIRC IN 14 OR IN FISCAL YEAR 24 WE
01:20:34 GOT TO 14 AND 25 AT 14.5. AND CURRENTLY WE ARE ON TRACK
01:20:40 TO INCREASE OVER 3% WHICH WOULD END THE YEAR AT 14.9.
01:20:44 I'D LIKE TO INVITE EVERYONE HERE AND EVERYONE LISTENING TO
01:20:48 HELP US BREAK THAT $15 MILLION 15 MILLION SURVEY FIGURE.
01:20:55 SO GET ON OVER TO YOUR LOCAL LIBRARY.
01:20:56 >> CHECK OUT SOME MATERIALS WHETHER YOU TALK IN A PHYSICAL
01:21:00 BOOK OR A VINYL OR AN AUDIO BOOK WHATEVER YOUR PLEASURE IS
01:21:04 AND HELP US BREAK THAT BARRIER. YOU CAN ALSO SEE IN THIS CHART
01:21:10 HERE THAT OBVIOUSLY OUR PHYSICAL WORK IS SLIGHTLY
01:21:12 HIGHER THAN OUR ELECTRONIC RESOURCES.
01:21:15 WE ARE VERY RESPONSIVE TO WHAT OUR PATRONS ARE TELLING US BY
01:21:19 THEIR CHECKOUT HABITS. OUR AMAZING TEAM AND OUR
01:21:23 CIRCULATIONS DIVISION DEFINITELY GETS DOWN TO THE
01:21:28 DETAIL LEVEL UNDERSTANDING THE DEMAND BY DIFFERENT TITLES BY
01:21:32 DIFFERENT AUTHORS. THEY ARE ALSO VERY CAREFUL TO
01:21:36 LOOK AT WHERE ARE WE GOING TO GET THE BEST DEALS FROM OUR
01:21:40 VENDORS AND ALSO TRYING TO FIND IT IN A COST WISE FORMAT.
01:21:47 SO PAPERBACK WHENEVER POSSIBLE .
01:21:51 >> NEXT SLIDE PLEASE. SO THE FINAL DIGITAL OR DATA
01:21:54 SLIDE THAT I WANTED TO SHARE WITH YOU IS ABOUT OUR FOOT
01:21:58 TRAFFIC. AND IF WE WERE TO THINK OF THIS
01:21:59 IN THE SAME VEIN AS RETAIL TRAFFIC, PEOPLE ARE VOTING WITH
01:22:06 THEIR FEET. THEY'RE GOING INTO THEIR
01:22:07 LIBRARIES AND WE'RE SEEING A STEADY INCREASE IN THEIR
01:22:10 VISITING OF OUR FACILITIES. THEY COULD BE COMING IN FOR
01:22:14 RESOURCES. UTILIZATION OF THE SPACE, OUR
01:22:18 PROGRAMING. AS YOU KNOW, WE'VE GOT SOME
01:22:19 AMAZING SIGNATURE PROGRAM CMS ONE THAT HAPPENS EVERY YEAR
01:22:23 IN THE SPRING AT THE MAIN LIBRARY CALLED NIGHT OF IDEAS
01:22:26 AND ALL SUMMER LONG. WE HAVE SUMMER STRIDE THAT
01:22:30 BRINGS IN QUITE A COLLECTION OF FOLKS.
01:22:34 >> SO WE ARE PROUD TO SAY THAT AT OVER 80% OF OUR YEAR I'M
01:22:41 SORRY ALL BUT FIVE OF OUR BRANCHES ARE AT 80% OR HIGHER
01:22:44 THAN THE PRE-COVID FOOT TRAFFIC.
01:22:48 AND IN FACT THERE ARE FIVE BRANCHES THAT HAVE EXCEEDED
01:22:52 THAT FOOT TRAFFIC. SO TO ME THAT TELLS THE STORY
01:22:53 THAT THE PATRONS ARE VERY MUCH INTERESTED IN THE SERVICES THAT
01:22:57 WE'RE PROVIDING AND THE FACILITIES ARE INDEED A
01:23:00 RESOURCE OR AN ANCHOR FOR THEM. SO WITH THAT THIS CONCLUDES OUR
01:23:08 PRESENTATION. OUR CFO MIKE FERNANDEZ IS WITH
01:23:09 US AND WE'RE HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE FOR
01:23:13 US. >> THANK YOU.
01:23:15 AND VICE CHAIR DORSEY THANKS. NO QUESTIONS.
01:23:20 I JUST APPRECIATE THE PRESENTATION.
01:23:21 I JUST WHILE YOU'RE HERE I JUST WANTED TO EXPRESS MY
01:23:24 APPRECIATION TO THE LIBRARY FOR YOUR PARTICIPATION IN SOMETHING
01:23:27 THAT'S CLOSE TO MY HEART AND THAT'S THE ROAD TO RECOVERY
01:23:28 PROGRAM THAT HAS ACTUALLY NOW BEEN REPLICATED IN SEVERAL
01:23:32 JURISDICTIONS I THINK THREE STATES.
01:23:35 YEAH. THE AMERICAN LIBRARY
01:23:36 ASSOCIATION IS IS HIGHLIGHTING THAT AT ITS CONFERENCE THIS
01:23:39 YEAR AS A NATIONAL MODEL AND THANK YOU FOR YOUR WORK ON
01:23:43 THIS. IT'S MAKING A HUGE DIFFERENCE
01:23:44 FOR A LOT OF PEOPLE IN THE RECOVERY COMMUNITY JUST HAVING
01:23:47 ACCESS TO FREE TO KEEP LITERATURE AT ALL BRANCH
01:23:50 LIBRARIES IN EVERY RECOVERY TRADITION IN ALL PUBLISHED
01:23:54 LANGUAGES THAT'S WHAT WE SHOULD BE DOING AND IT'S GREAT THAT
01:23:58 SAN FRANCISCO IS BEING SORT OF A ROLE MODEL FOR OTHER
01:24:01 JURISDICTIONS IN THIS. >> YEAH.
01:24:02 THANK YOU FOR COMING TO US WITH THAT IDEA AND WORKING WITH OUR
01:24:05 STAFF. I MYSELF ONE DAY I WAS AT THE
01:24:09 MAIN LIBRARY AND THE PATRON KEPT ASKING ME ARE YOU SURE
01:24:13 IT'S FREE? AND I'M LIKE YES, IT'S FREE.
01:24:14 THIS IS HERE FOR YOU. WE ARE HERE FOR YOU.
01:24:17 YEAH. SO I DON'T CARE.
01:24:18 I THINK IT WAS HER IDEA. DOREEN MAGICAL DID SOME GREAT
01:24:21 WORKS. THANK THANK YOU.
01:24:26 >> THANK YOU. AND I THANK YOU FOR YOUR
01:24:27 PRESENTATION. THANK YOU FOR YOUR SERVICE.
01:24:30 >> AND NEXT WE WILL HAVE MTA. >> GOOD AFTERNOON.
01:24:52 I'M HERE WITH I'M JULIE KIRSCHBAUM THE DIRECTOR OF MTA.
01:24:56 I'M HERE WITH PRIMA HORDER OUR CFO AS WELL AS HALL RAMOS FROM
01:25:04 OUR GOVERNMENT AFFAIRS TEAM. I'M GOING TO WORK VERY HARD TO
01:25:08 STICK TO YOUR FIVE MINUTE TIME LIMIT AND I'M HAPPY TO HAVE
01:25:15 SOME ADDITIONAL APPENDIX SLIDES.
01:25:16 HAPPY TO COVER AT THE END. WE ARE VERY GRATEFUL FOR THE
01:25:20 OPPORTUNITY TO PRESENT OUR BUDGET.
01:25:23 THIS WAS AN EXTREMELY CHALLENGING CYCLE FOR US WITH
01:25:27 US AND OUR BAY AREA PARTNERS FACING AN UNPRECEDENTED FISCAL
01:25:31 CLIFF THAT MAKES IT ALL THAT MUCH MORE REWARDING TO HAVE A
01:25:37 TWO YEAR BUDGET THAT PROTECTS MUNI SERVICE WHILE ENSURING
01:25:41 THAT WE STRETCH EVERY PUBLIC DOLLAR ON APRIL 21ST.
01:25:48 THERE ARE 70 BOARD DIRECTORS UNANIMOUSLY PASSED A TWO YEAR
01:25:52 BUDGET FOR THE AGENCY. THE BULK OF THE EXPENDITURES GO
01:25:56 DIRECTLY TO MUNI SERVICE ABOUT HALF OF OUR STAFF, OUR MUNI
01:26:00 OPERATORS SUPPORTED BY MECHANICS CUSTODIANS STATION
01:26:06 AGENTS AND OUR INFRASTRUCTURE TEAMS.
01:26:07 WE ALSO HAVE A SIGNIFICANT WORKFORCE THAT IS FOCUSED ON
01:26:14 GENERATING REVENUE FOR OUR MUNI SYSTEM INCLUDING OUR PARKING
01:26:19 CONTROL OFFICERS, THE STAFF THAT MANAGES OUR OFF STREET
01:26:23 PARKING GARAGES AS WELL AS OUR REPAIRING OUR PARKING METERS
01:26:30 AND THEN WE ALSO HAVE CORE SERVICES RELATED TO OUR STREET
01:26:34 OPERATIONS INCLUDING MAINTAINING OUR TRAFFIC SIGNALS
01:26:38 ,OUR SCHOOL CROSSING GUARDS AS WELL AS OUR STREET SAFETY WORK
01:26:42 . WE ARE VERY PROUD THAT THIS
01:26:43 BUDGET DOES PROTECT OUR CORE SERVICES.
01:26:47 WE WERE ABLE TO APPROVE A BUDGET THAT DOES NOT HAVE ANY
01:26:53 REDUCTIONS FOR MUNI OR PARATRANSIT SERVICE.
01:26:57 IT PROTECTS OUR DISCOUNT PROGRAMS INCLUDING OUR FREE
01:27:01 MUNI FOR YOUTH AS WELL AS FREE SERVICE FOR SENIORS AND PEOPLE
01:27:09 WITH DISABILITIES FROM LOW AND MODERATE INCOME HOUSEHOLDS
01:27:13 . THERE'S ALSO A MODEST AMOUNT OF
01:27:16 ADDITIONAL RESOURCES TO KEEP UP WITH CROWDING AS WE CONTINUE TO
01:27:20 GROW AND RECOVER. WE ARE VERY PROUD THAT MUNI IS
01:27:25 CURRENTLY CARRYING ABOUT HALF OF ALL BAY AREA TRANSIT'S ARE
01:27:29 REALLY PLAYING A KEY OVER DISPROPORTIONATE ROLE IN THE
01:27:34 REGION'S AIR QUALITY AND EQUITY WORK AND WE CARRY 14,000 S.F.
01:27:42 USD SCHOOLKIDS EVERY DAY. OUR BUDGET STRATEGY WAS
01:27:49 INFORMED BY EXTENSIVE STAKEHOLDER INVOLVEMENT.
01:27:54 WE ARE VERY GRATEFUL FOR THE BOARD OF SUPERVISORS WHO
01:27:58 PARTICIPATED ACTIVELY ALONG WITH OUR LABOR PARTNERS
01:28:02 BUSINESS ADVOCATES AS WELL AS TRANSPORTATION ADVOCATES TO
01:28:09 DEVELOP WHAT WE HAVE KIND OF FINALLY STARTED REFERRING TO AS
01:28:13 THE THREE LEGGED STOOL THE FIRST LEG OF WHICH IS CURRENTLY
01:28:21 A CITIZEN LED INITIATIVE FOR A FIVE COUNTY SALES TAX MEASURE
01:28:25 THAT HAS A STRONG BUILT IN ACCOUNTABILITY AND OVERSIGHT
01:28:29 MEASURES AND WOULD BE A $0.01 SALES TAX FOR SAN FRANCISCO
01:28:36 AND A HALF CENT SALES TAX FOR THE OTHER COUNTIES.
01:28:39 IF SUCCESSFUL, THE REGIONAL REVENUE MEASURE WOULD RAISE
01:28:45 ABOUT $1 BILLION ANNUALLY WITH ABOUT 155 MILLION GOING TO MUNI
01:28:52 . I'M REALLY GRATEFUL TO OUR
01:28:54 PARTNERS AT THE S.F. CTA THAT REALLY NAVIGATED AND NEGOTIATED
01:29:00 A COMPLEX REGIONAL DISCUSSION TO MAKE SURE THAT MUNI WAS PART
01:29:06 OF THIS MEASURE. THE REGIONAL MEASURE WOULD BE
01:29:09 COMPLEMENTED BY THE SECOND LEG OF THE STOOL WHICH IS A LOCAL
01:29:16 MEASURE ALSO CURRENTLY BEING PURSUED BY A GROUP OF CITIZENS
01:29:21 THAT ARE GATHERING SIGNATURES WITH THE INTENT TO PUT THE
01:29:25 MEASURE ON THE BALLOT FOR NOVEMBER.
01:29:28 THE MEASURE WOULD CHARGE PROPERTY OWNERS BASED ON THE
01:29:33 TYPE AND THE SIZE OF THEIR PARCELS WITH LARGER UNITS
01:29:40 AND NONRESIDENT RESIDENTIAL UNITS PAYING A LARGER AMOUNT
01:29:47 AND ABOUT 96% OF SINGLE FAMILY RESIDENTIAL WHILE PAYING $129
01:29:55 UNDER THIS MEASURE THERE ARE ALSO EXEMPTIONS BUILT INTO THE
01:30:00 PROGRAM INCLUDING A SENIOR EXEMPTION AND A RESTRICTION
01:30:04 THAT UP TO THAT 50% UP TO $65 COULD BE PASSED ON TO RENT
01:30:10 CONTROLLED UNITS. >> IF SUCCESSFUL, THE LOCAL
01:30:14 MEASURE WOULD RAISE APPROXIMATELY $150 MILLION
01:30:19 ANNUALLY FOR EXISTING TRANSIT OPERATIONS PLUS ABOUT $10
01:30:23 MILLION FOR SERVICE QUALITY IMPROVEMENTS INCLUDING
01:30:28 MAINTAINING GROWTH BECAUSE OUR WE ARE FACING SUCH A LARGE
01:30:35 DEFICIT THAT GROWS OVER TIME WITH COST PRESSURES LIKE FUEL
01:30:43 RIGHT NOW WHICH IS ABOUT 40% HIGHER THAN WE HAD FORECASTED
01:30:49 LAST YEAR HEALTH CARE AND THINGS LIKE THAT.
01:30:53 WE ALSO NEED TO COMPLEMENT THESE MEASURES WITH A CONTINUED
01:30:57 COMMITMENT TO EFFICIENCIES. THIS BUDGET INCLUDES THE
01:31:04 ELIMINATION OF VACANT POSITIONS AS WELL AS OFFSETS ABOUT $20
01:31:11 MILLION OF COSTS THROUGH REDUCTIONS IN MATERIALS
01:31:15 AND SUPPLIES, WORK ORDERS, CONTRACT.
01:31:20 SO JUST TO GIVE A COUPLE OF TANGIBLE EXAMPLES, WE ARE
01:31:23 IN THE PROCESS OF SHIFTING OUR CUSTOMERS WHO CURRENTLY USE THE
01:31:28 MUNI APP TO PAY FOR THEIR FARES TO THE UPDATED CLIPPER SYSTEM
01:31:32 WHICH WE ESTIMATE WILL SAVE ABOUT A MILLION AND A HALF
01:31:36 DOLLARS PER YEAR. WE WERE ALSO ABLE TO NEGOTIATE
01:31:39 ABOUT $1 MILLION OF ADMINISTRATIVE SAVINGS WITH OUR
01:31:42 PEAR TRANSIT CONTRACT PROVIDER. THIS BUDGET ALSO INCLUDES ABOUT
01:31:51 $30 MILLION OF ADDITIONAL AGENCY GENERATED REVENUE FROM
01:31:55 THINGS LIKE AN INCREASED FOCUS ON FARE COMPLIANCE AS WELL AS A
01:32:02 PARKING METER INCREASE IN YEAR TO A REVAMP OF OUR CABLE CAR
01:32:10 FARES TO MORE CLOSELY MATCH EXPENDITURES AND THE YEAR ONE
01:32:17 ELIMINATION OF THE CLIPPER DISCOUNT WHICH RIGHT NOW CASH
01:32:21 PAYING AND CREDIT CARD PAYING CUSTOMERS PAY $3 BUT CLIPPER
01:32:25 CUSTOMERS PAY TO 85. THIS WOULD ADJUST EVERYBODY UP
01:32:30 TO $3 AND THEN IN INDEXING AFFAIRS IN YEAR TWO, THIS TWO
01:32:34 YEAR BUDGET CAPTURES AS OUR INITIAL EFFICIENCIES AND REALLY
01:32:38 LAYS THE GROUNDWORK FOR FUTURE EFFORTS SO OUR WORK IS NOT DONE
01:32:45 AND WE ARE REALLY EMBRACING A CULTURE OF EFFICIENCY AND A
01:32:49 COMMITMENT TO CONTINUE TO DO HARD WORK INCLUDING SOME OF THE
01:32:52 WORK WE'VE ALREADY DONE SUCH AS ELIMINATING MANAGER POSITIONS,
01:32:58 GETTING BETTER CONTROL FOR THE AGENCY AND LOOKING FOR WAYS
01:33:02 THAT SAVE COSTS WHILE PROTECTING OUR SERVICE.
01:33:05 THANK YOU. >> THANK YOU AND SUPERVISOR
01:33:12 SOUDER THANK YOU CHAIR. >> THANK YOU FOR THE
01:33:14 PRESENTATION AND ALL THIS DIFFICULT BUT IMPORTANT WORK.
01:33:19 CAN YOU SHARE A BIT MORE DETAIL ON THE POSITION THAT WILL BE
01:33:24 ELIMINATED? THE 54 OPERATING POSITIONS
01:33:27 AND 35 PROJECT POSITIONS WHAT ARE THOSE ENTAIL?
01:33:33 YES, THEY ARE LARGELY SPREAD ACROSS DIVISIONS IN THE CASE OF
01:33:41 THE CAPITAL SOME OF THEM WERE LEGACY POSITIONS YOU PROJECTS
01:33:46 THAT HAD BEEN COMPLETED OR PURSUED IN OTHER WAYS THAT WE
01:33:53 FELT WERE IMPORTANT TO REMOVE FROM OUR HEADCOUNT AND DO NOT
01:33:57 COMPROMISE ANY OF OUR CORE CAPITAL DELIVERY WORK INCLUDING
01:34:01 OUR STREET SAFETY WORK AND OUR MAJOR PROJECTS LIKE TRAIN
01:34:06 CONTROL. ON THE OPERATING SIDE IT IS A
01:34:09 MIX OF OUR DIRECT DELIVERY POSITIONS LIKE MECHANICS AS
01:34:19 WELL AS ANALYSTS AND SOME SUPERVISOR POSITIONS AND WE'D
01:34:24 BE HAPPY TO PROVIDE FOR THE FULL LIST.
01:34:28 >> THANK YOU. PLEASE DO.
01:34:31 THANK YOU. JUST KIND OF CURIOUS ABOUT ONE
01:34:34 OF YOUR SLIDES WAS TRYING TO MATCH WITH WHAT I GOT RIGHT
01:34:38 NOW. YES YOU ELIMINATED MORE THAN
01:34:41 500 VACANT POSITIONS THAT IS COST SAVING OF STRUCTURALLY
01:34:48 $170 MILLION. CAN YOU EXPLAIN A LITTLE BIT
01:34:49 MORE ABOUT THE ADDITIONAL POSITION THEY ELIMINATED HERE
01:34:53 IN THIS SLIDE 54 OPERATING AND 35 PROJECT POSITIONS
01:34:57 AND WHAT ARE THEY ARE THEY CURRENTLY FILLED OR HOW DOES
01:35:00 THAT WORK? >> YEAH, THANK YOU FOR THAT
01:35:03 QUESTION. THE 500 POSITIONS THAT WE
01:35:04 ELIMINATED WERE IN THE LAST FISCAL YEAR AND THEY WERE
01:35:11 VACANT. >> THE CURRENT POSITIONS ARE
01:35:12 VACANT AS WELL. THESE 54 PLUS 35.
01:35:18 >> YES. UNDERSTOOD.
01:35:19 OKAY. THANK YOU.
01:35:22 AND I UNDERSTAND THAT WE GOT LOOKING AT THE BUDGET
01:35:27 LEGISLATIVE ANALYSTS MY ASSUMPTION IS WE HAVE NOW
01:35:30 RECEIVE ADDITIONAL INCOME PLATE INFORMATION FROM STAFF MTA THAT
01:35:34 WE CAN NOW PROVIDE A BETTER AND MORE COMPLETE ANALYSIS OF
01:35:39 YOUR BUDGET FOR NEXT WEEK. I GUESS THAT SHOULD BE A
01:35:45 QUESTION FOR YOU. I NOT BUT I JUST WANT TO MAKE
01:35:48 SURE THAT THAT'S INCLUDING THE GARAGE REVENUES AND DEFICITS WE
01:35:56 WE WE HAVE PROVIDED THAT AND WE'RE HAPPY TO CONTINUE TO
01:36:00 WORK CLOSELY TO CLOSE ANY REMAINING GAPS.
01:36:03 BUT I THINK I THINK THAT THERE'S THERE'S ALWAYS BEEN A
01:36:11 QUESTION I THINK THAT THIS IS 2023 THAT THE COMPTROLLER IS A
01:36:16 23 OR 20 4 OR 23, 21 OR 2022. THE COMPTROLLER ACTUALLY DID AN
01:36:21 INDEPENDENT AUDIT ABOUT, YOU KNOW, YOUR STRUCTURE THE MTA
01:36:24 STRUCTURAL DEFICIT AND THAT NOW WITH THE BRIDGE LOAN THAT YOU
01:36:29 NOW RECEIVE FROM THE STATE THAT YOU WILL BE RECEIVING FROM THE
01:36:33 STATE PLUS A POTENTIALLY A PARTIAL AND REGIONAL SALES TAX
01:36:39 THAT YOU HAVE INCLUDED HERE HOW WE UNDERSTAND THAT I THINK THAT
01:36:43 EVERYONE IS GOING TO DO EVERYTHING THEY CAN ABOUT THE
01:36:48 REGIONAL MEASURE AND A LOCAL MEASURE AND RIGHT NOW I'M
01:36:49 LOOKING AT ONE OF YOUR SLIDES HERE PROVIDED IT'S PAGE 18 HOW
01:36:54 WE UNDERSTAND THAT IN THE EVENT THAT THE REGIONAL MEASURES OR
01:36:58 THE LOCAL MEASURE DO NOT COME TO PASS OR ONE OR THE OTHER
01:37:02 HAVE YOU WORK OUT DIFFERENT KIND OF SCENARIOS?
01:37:06 WE HAVE AND WE'VE BEEN WORKING CLOSELY WITH THE COMPTROLLER'S
01:37:10 OFFICE BECAUSE WE ARE CERTIFYING OUR BUDGET WITH BOTH
01:37:17 MEASURES BECAUSE THE IF THE NOVEMBER MEASURES ARE
01:37:25 SUCCESSFUL ON THE BALLOT THEY DO NOT BEGIN GENERATING REVENUE
01:37:29 IN EARNEST UNTIL A YEAR OR TWO OF THE BUDGET.
01:37:33 SO SUMMER OF 2028. SO MOST OF OUR FISCAL YEAR 2627
01:37:43 BUDGET IS BALANCED WITH EITHER INTERNAL EFFICIENCIES OR WITH A
01:37:51 TWO THE $200 MILLION LOAN THAT WE RECEIVED FROM THE STATE THE
01:37:57 BENEFIT OF THAT IN ADDITION TO NOT HAVING TO PREEMPTIVELY CUT
01:38:01 SERVICE IS IT ALSO GIVES US A LITTLE BIT OF A RUNWAY SO THAT
01:38:08 IF ONE OR BOTH MEASURES DO NOT PASS WE HAVE TIME TO IMPLEMENT
01:38:12 THE THE SERVICE CUTS AND SCHEDULE CHANGES THAT WE
01:38:16 WOULD NEED IN ORDER TO BALANCE YEAR TWO OF THE BUDGET.
01:38:23 THE IF BOTH MEASURES FAILED FOR EXAMPLE WE WOULD BE LOOKING AT
01:38:30 ABOUT A 30% REDUCTION IN HEADCOUNT AND WE WOULD BE
01:38:34 LOOKING AT ELIMINATING ABOUT 20 ROUTES OUR WORKHORSE ROUTES
01:38:40 WOULD SEE DOUBLE THE CURRENT WAIT TIMES AND CROWDING.
01:38:48 WE WOULD NOT HAVE SERVICE AFTER 9 P.M. EXCEPT OUR CORE OWL
01:38:53 SERVICE AND WE WOULD LIKELY BE SIGNIFICANTLY REDUCE IF NOT
01:39:00 ELIMINATE OUR CABLE CAR AND FIND SERVICE SO WE HAVE
01:39:08 MAPPED OUT BOTH THE LABOR PROCESS, THE MEET AND CONFER
01:39:12 TIMELINE THAT WILL GET US TO THOSE NECESSARY LAYOFFS AS WELL
01:39:16 AS A VERY TRUNCATED PUBLIC PROCESS THAT WOULD GO TO TO GET
01:39:23 US TO THOSE REDUCTION NUMBERS. BUT AS AS YOU CAN IMAGINE, WE
01:39:30 ARE DOING EVERYTHING WE CAN TO AVOID THOSE SCENARIOS WHILE
01:39:34 MAKING SURE THAT WE ARE READY IN THE BACKGROUND IF IF ONE OR
01:39:38 BOTH MEASURES DOES NOT PASS SHOULD MAYBE I'M NOT SEEING
01:39:42 THIS IN YOUR SLIDE OR MAYBE IT'S A DIFFERENT SLIDE DO YOU
01:39:47 HAVE A RATIO OF YOUR MANAGEMENT TO FRONTLINE WORKER OUR MTA
01:39:53 STAFF WHICH IS YOU KNOW PERHAPS AN OVERSIMPLIFICATION OF OUR
01:39:57 MANAGEMENT'S STAFF IS UNDER THE CURRENT CITYWIDE CAP OF 2.7%.
01:40:09 BUT WE ALSO YOU KNOW, WE WE AIM FOR ABOUT 10 TO 1 IN TERMS OF
01:40:16 OUR SUPERVISION BUT THAT INCLUDES LIKE A POST
01:40:20 MAINTENANCE SUPERVISOR, FIRST LEVEL SUPERVISOR UP TO A
01:40:25 SUPERINTENDENT AND AND BEYOND. >> UNDERSTOOD.
01:40:31 THANK YOU. I DON'T SEE ANY ANY ANY OTHER
01:40:35 NAME ON THE ROSTER AND THANK YOU SO MUCH FOR YOUR SERVICE.
01:40:39 >> THANK YOU. THANK YOU.
01:40:40 AND NEXT WE WILL HAVE A COMBINATION OF DEPARTMENT OF
01:40:43 BUILDING INSPECTION AND PLANNING DEPARTMENT
01:40:46 TOGETHER
01:41:32 . >> GOOD AFTERNOON SUPERVISORS.
01:41:37 >> I'M ALEX KOSKINEN, CFO FOR TBI AND SOON TO BE PLANNING I'M
01:41:41 JOINED BY OUR EXECUTIVES FINANCE AND PROGRAM STAFF.
01:41:48 I'M HERE TO PRESENT THE BUDGETS FOR BOTH THE PLANNING
01:41:53 DEPARTMENT AND I. IN JANUARY THE MAYOR ANNOUNCED
01:41:57 PLANS TO COMBINE CITY PERMITTING.
01:42:00 SINCE THEN WE'VE BEEN WORKING TOGETHER CLOSELY ON A PHASED
01:42:03 MERGE. I'LL QUOTE THE MAYOR DIRECTLY.
01:42:06 FOR RESIDENTS AND SMALL BUSINESS ALIKE THIS WILL MEAN
01:42:10 BETTER COORDINATION TIME AND COST SAVINGS IN A MORE
01:42:14 PREDICTABLE PERMITTING PROCESS EASING THE WAY TO BUILD MORE
01:42:18 HOUSING AND CONTINUE OUR ECONOMIC RECOVERY.
01:42:21 >> BOTH DEPARTMENTS WERE ASKED TO MAKE BUDGET REDUCTIONS TO
01:42:25 ADDRESS THE CITY'S PROJECTED GENERAL FUND DEFICIT BUT WE
01:42:27 WERE ABLE TO ACHIEVE THESE TARGETS WITHOUT ELIMINATING ANY
01:42:30 CORE SERVICES THERE ARE THREE MAJOR CHANGES TO OUR BUDGET.
01:42:37 FIRST, THE MERGER IN FISCAL YEAR 27 STAFF FROM I AND THE
01:42:42 CITY ADMINISTRATORS PERMIT CENTER WILL TRANSFER TO
01:42:46 PLANNING DEBAR FEES WILL CONTINUE TO FUND TRANSFER BY
01:42:49 STAFF THE PLAN FOR THE FINAL PHASE FULLY COMBINING THE
01:42:53 DEPARTMENTS IS STILL BEING DEVELOPED AND IS NOT REFLECTED
01:42:58 IN THE SECOND YEAR OF THE BUDGET.
01:43:01 THE SECOND INITIATIVE IS REPLACEMENT OF LEGACY PERMIT
01:43:03 SYSTEMS WE PRESENTED TO KUWAIT EARLIER THIS YEAR AND THEY
01:43:06 RECOMMENDED FUNDING THE PROJECT FINALLY IN FISCAL YEAR 27 I
01:43:13 WILL COMPLETE IMPLEMENTATION OF A 2024 FEE STUDY EXPENDITURE
01:43:19 HIGHLIGHTS REFLECT THOSE INITIATIVES.
01:43:23 BIG ONES ARE LABOR. >> YOU CAN SEE THAT PLANNING
01:43:28 LABOR COST IS GOING UP, TBE LABOR COST IS GOING DOWN BUT IS
01:43:31 OFFSET BY THE SERVICES OF OTHER DEPARTMENTS.
01:43:35 >> THE WORK ORDER TO PLANNING GOING UP THE PROJECT REVENUE
01:43:41 FOR PERMIT REPLACEMENT IS IN CONTINUING PROJECTS AND THAT
01:43:44 IS ALSO RECOVERED FROM A VARIETY OF OTHER DEPARTMENTS
01:43:49 BASED ON THEIR PERCENTAGE OF USERS OF THE NEW SYSTEM.
01:43:52 >> FINALLY I'D LIKE TO HIGHLIGHT THE CITY GRANT
01:43:57 PROGRAM LINE THESE ARE OUR CODE ENFORCEMENT OUTREACH PROGRAM
01:44:01 AND SRO PROGRAM. THESE ARE GRANTS THAT THE
01:44:04 DEPARTMENT OF BUILDING INSPECTION PROVIDES TO
01:44:08 COMMUNITY BASED ORGANIZATIONS TO PROVIDE THESE SERVICES.
01:44:11 AND AS THE MAYOR'S BUDGET DIRECTOR MENTIONED, WE'VE HEARD
01:44:15 YOU, THE DEPARTMENT AND THE MAYOR'S OFFICE AND THE
01:44:18 SUPERVISORS ARE VERY CLEAR THESE SERVICES SHOULD STAY THEY
01:44:20 SHOULD BE FULLY FUNDED. THEY ARE NO REDUCTIONS TO THESE
01:44:23 SERVICES ARE IN THE FIRST OR THE SECOND YEAR OF THE BUDGET
01:44:27 SO THEY WILL CONTINUE AS NORMAL .
01:44:30 >> ON THE REVENUE SIDE YOU CAN SEE RECOVERY FROM OTHER
01:44:35 DEPARTMENTS IN THE PLANNING DEPARTMENT ARE WAY UP THIS
01:44:38 REFLECTS THE PROJECT BUDGET IS HOUSED ENTIRELY WITHIN PLANNING
01:44:42 AND PLANNING WILL BE RECOVERING DEPARTMENT SHARE OF COST FROM
01:44:47 THOSE DEPARTMENTS THROUGH WORK QUARTERS AND ON THE DEVICE SIDE
01:44:51 FEE REVENUE IS INCREASING TO REFLECT IMPLEMENTATION OF OUR
01:44:55 FEE STUDY. >> THIS ORG CHART SHOWS THE
01:45:05 PLAN FOR FISCAL YEAR 27 ADMINISTRATION INCLUDING I.T
01:45:08 AND EXTERNAL AFFAIRS WILL LIVE IN PLANNING AS COMBINED TEAMS
01:45:12 BUT WILL CONTINUE TO SUPPORT BOTH DEPARTMENTS.
01:45:19 >> THIS CHART SHOWS DEPARTMENT STAFFING OVER TIME WITH THE
01:45:23 VACANT POSITION REDUCTIONS AND TRANSFERS IS THE TOTAL
01:45:27 COMBINED SIZE OF BOTH DEPARTMENTS REMAINS
01:45:28 APPROXIMATELY THE SAME AS REQUESTED.
01:45:37 THIS TABLE SHOWS THE MANAGEMENT RATIO BY DIVISION IN BOTH
01:45:39 DEPARTMENTS THE COMBINED AVERAGE STAFF TO MANAGER RATIO
01:45:42 FOR BOTH DEPARTMENTS IS APPROXIMATELY 20 TO 1 IN 2024
01:45:52 DB I COMPLETED A STUDY THE STUDY FOUND THAT THE DEPARTMENT
01:45:56 WAS NOT RECOVERING COSTS AND RECOMMENDED INCREASING FEES
01:45:59 RATHER THAN INCREASE ALL AT ONCE.
01:46:00 WE HAVE SLOWLY PHASED IN THE RECOMMENDED INCREASE DUE TO
01:46:04 RETURNING DEMAND AND BETTER THAN PROJECTED REVENUE LAST
01:46:08 YEAR AND THIS YEAR WE ONLY NEED AN ADDITIONAL 2% AVERAGE FEE
01:46:11 INCREASE TO REACH FULL COST RECOVERY AND OUR RELIANCE ON
01:46:15 ONE TIME RESERVES ACCOMPANYING THE BUDGET IS TRAILING
01:46:19 LEGISLATION AMENDING THE THE BUILDING CODE FEE TABLES TO
01:46:23 IMPLEMENT THIS FEE INCREASE OVER THE PAST FEW YEARS
01:46:30 PLANNING AND I HAVE MADE SIGNIFICANT IMPROVEMENTS TO THE
01:46:34 PERMITTING PROCESS PERMIT ISSUANCE TIMES ARE DOWN
01:46:37 AND CUSTOMER AND STAFF SATISFACTION ARE UP.
01:46:38 THERE IS STILL ROOM FOR IMPROVEMENT.
01:46:42 WE ARE VERY PROUD OF OUR PROGRESS AND IN THE DIRECTION
01:46:43 WE ARE HEADED. THE CURRENT PERMIT TRACKING
01:46:50 SYSTEM IS OVER 25 YEARS OLD AND IS NO LONGER SUPPORTED BY
01:46:53 ORACLE A SYSTEM FAILURE WOULD PARALYZE CONSTRUCTION IN THE
01:46:56 CITY. THE SYSTEM MUST BE REPLACED.
01:46:59 WE BEGAN THE SYSTEM REPLACEMENT PROJECT LAST YEAR ON A ONE YEAR
01:47:03 CONTRACT AND ARE CURRENTLY NEGOTIATING A CONTRACT FOR
01:47:07 CONTINUED IMPLEMENTATION. THE CONTRACT WILL BE PRESENTED
01:47:10 TO THE BOARD FOR APPROVAL LATER THIS SUMMER IN JUNE OR JULY.
01:47:14 THANK YOU EVERYBODY. THANK YOU FOR ALL OUR PARTNERS
01:47:19 AT THE BOARD, THE COMPTROLLER'S OFFICE, THE MAYOR'S OFFICE.
01:47:21 WE'RE LOOKING FORWARD TO WORKING WITH THE BUDGET
01:47:23 LEGISLATIVE ANALYST OVER THE NEXT WEEK AND WE WILL WE'RE
01:47:26 HAPPY TO ANSWER ANY QUESTIONS. >> THANK YOU.
01:47:29 THANK YOU. SUPERVISOR WALTON.
01:47:32 THANK YOU CHAIR AND THANK YOU FOR THE PRESENTATION JUST A
01:47:36 QUESTION I KNOW I ASKED PRIOR BUT I WANTED TO ASK THIS HERE
01:47:39 IN TODAY'S MEETING WHAT IS THE COST SAVINGS FOR COMBINING
01:47:44 DEPARTMENTS? THE DEPARTMENT COMBINATION IS
01:47:47 MORE ABOUT EFFICIENCY AND CUSTOMER SERVICE RATHER
01:47:51 THAN DIRECT COST SAVINGS. THERE MAY BE COST SAVINGS OVER
01:47:55 TIME BUT THAT WOULD BE REALIZED SLOWLY AND THAT'S NOT A FOCUS
01:48:02 OF THE PLANNED DEPARTMENT MERGER AT THIS TIME.
01:48:06 >> THANK YOU. THANK YOU.
01:48:09 I DO HAVE A FEW QUESTIONS. THE PROJECTION OF DEMAND AND I
01:48:13 STATIONS OF THE CALLS HERE MAYBE I'M NOT OH YEAH.
01:48:18 HERE THE LINE ITEM PERMIT ITSELF FOR THE PERMIT
01:48:22 MODERNIZATION AND FOR THE $7.1 MILLION.
01:48:26 COULD YOU WALK US THROUGH WHAT THAT MONEY IS FOR?
01:48:32 I HAVE SOME COLLEAGUES HERE WHO WOULD BE HAPPY TO ANSWER THAT
01:48:34 QUESTION. >> THAT FUNDING IS FOR PERMIT
01:48:41 MODERNIZATION AS I THINK THAT YOU THE MEMBERS OF THE
01:48:45 COMMITTEE ARE AWARE WE ARE BOTH PLANNING AND I AND OUR OTHER
01:48:48 PERMITTING AGENCIES ARE WORKING OFF A VERY ANTIQUATED SYSTEM
01:48:52 FROM THE 90S. >> IT'S KIND OF HELD TOGETHER
01:48:54 WITH DUCT TAPE AND SOME STAPLES.
01:48:56 >> SO WE HAVE BEGUN WE DID A ONE YEAR PILOT WITH OPEN GOV AS
01:49:01 A START TO THAT PERMIT MODERNIZATION.
01:49:05 THE FUNDING IN OUR BUDGET IS TO CONTINUE TO PERMIT
01:49:08 MODERNIZATION. IT'S OUR INTENT TO SEEK A
01:49:09 CONTRACT AMENDMENT TO THE OPEN GOV CONTRACT AND UTILIZE THE
01:49:13 FUNDING IN THAT LINE ITEM BUT THAT IS OF COURSE SUBJECT TO
01:49:16 BOARD AND DECISION MAKER DISCRETION IN THE CONTRACTING
01:49:20 PROCESS. >> WHAT IS THE CURRENT RESULTS
01:49:23 THAT YOU SAW AT THE PILOT CONTRACT?
01:49:26 WHAT IS YOUR INFORMATION THAT WE YOU CAN PRESENT ABOUT JUST
01:49:32 THE RESULTS OF BOTH EFFICIENCY? I THINK WHAT I'M ASKING IS A
01:49:36 PROJECTION OF EFFICIENCY BECAUSE FOR BOTH COMBINING THE
01:49:43 DEPARTMENTS BUT ALSO PROJECTION OF USING AND UTILIZING OPEN GOV
01:49:47 AND YOUR PERMIT PROCESS. YEAH.
01:49:51 SO MAYBE I'LL ANSWER THE DEPARTMENT FIRST FIRST AND I'LL
01:49:53 JUST ELABORATE ON MR. KOSKINEN ANSWER WHICH IS WE'RE NOT
01:49:57 PURSUING THIS AS A COST REDUCTION MEASURE OR AN
01:50:01 EFFICIENCY SAVINGS MEASURE. WHAT WE DO FIND IS THAT WORKING
01:50:04 AS SEPARATE DEPARTMENTS THERE ARE LOTS OF BOUNCES BACK
01:50:08 AND FORTH. THERE ARE AREAS WHERE WE HAVE
01:50:09 BEEN ABLE TO WORK THROUGH THAT JUST SHEERLY THROUGH
01:50:13 COLLABORATION IN THE DEPARTMENTS AS WE DO RIGHT NOW
01:50:16 THROUGH OUR ENFORCEMENT TEAMS. BUT WE KNOW WE CAN DO BETTER IF
01:50:19 WE ARE ACTUALLY WORKING COLLABORATIVELY FROM PLANNING
01:50:20 APPROVAL THROUGH BUILDING PERMITTING, THROUGH HOUSING
01:50:24 INSPECTION. WHAT IS THE METRIC TO MEASURE
01:50:28 THAT SUCCESS AND EFFICIENCY? >> I THINK WE'LL LOOK TO OUR
01:50:34 CUSTOMERS TO GIVE US THEIR FEEDBACK ON THAT.
01:50:35 >> I DON'T THINK THAT'S GOOD ENOUGH WITHOUT A FORMER MATRIX
01:50:42 THOUGH. I MEAN I THINK THAT IF YOU'RE
01:50:45 GOING TO COMBINE TWO INDEPENDENT CITY DEPARTMENTS SO
01:50:50 THE ANSWER IS WAY AND C FOR CUSTOMER RESPONDS I MEAN I
01:50:57 DON'T THINK I CAN ACCEPT THAT AS A AS A AS AN ANSWER.
01:51:05 IS THERE A QUESTION? YES.
01:51:09 >> THE QUESTION IS WHAT IS YOUR METRIC OF MEASURING SUCCESS FOR
01:51:12 COMBINING AND EFFICIENCY, FOR COMBINING THE TWO CITY
01:51:16 DEPARTMENTS AND FOR YOU TO CONTINUE A PILOT PROGRAM LIKE
01:51:19 OPEN GOV THAT WAS ACTUALLY A SOLE SOURCE CONTRACT?
01:51:23 I'M SORRY YOU'RE NOT SATISFIED WITH MY ANSWER.
01:51:27 NO I'M NOT AT ALL AND AND I'M SO WHAT I'M EXPECTING FOR YOU
01:51:29 TO COME BACK AND RETURN NEXT WEEK IS TO SHOW ME THE
01:51:32 PROJECTION FOR TWO MATRIX FOR SUCCESS SINCE YOU CAN'T SEE IT
01:51:36 FOR YOURSELF THEN I'M ACTUALLY GOING TO BE ASKING FOR YOU
01:51:39 AND LOOKING TO SEE THE EFFICIENCY SHOULD ACTUALLY BE
01:51:43 COMPARING AN EXISTING STANDARD OF A CATEGORY OF PERMITS THAT
01:51:47 IS CURRENTLY ACTUALLY HAVING AND WHAT IT TAKES FOR A PERMITS
01:51:51 TO BE REVIEW AND ISSUE AND APPROVE AND VERSUS WHAT
01:51:55 YOUR PROJECTION OF YOUR GOING TO BE ONCE YOU COMBINE THE CITY
01:51:59 DEPARTMENTS AS WELL AS WHERE YOU CONTINUE TO IF YOU'RE GOING
01:52:03 TO CONTINUE WITH THIS OPEN GOV CONTRACT IT SHOULD ACTUALLY
01:52:07 HAVE A SET STANDARD AND SAYING TODAY IT'S GOING TO TAKE US A
01:52:10 90 DAY FOR I DON'T KNOW A WINDOW PERMIT AND BUT THE
01:52:14 PROJECTION IS ONCE WE ACTUALLY HAVE THE COMBINED OF THE CITY
01:52:18 DEPARTMENTS OF BOTH PLANNING AND TBI AS WELL AS THAT WE'RE
01:52:22 GOING TO USE AND UTILIZE THIS OPEN GOV CONTRACT AND THEN THAT
01:52:28 90 DAYS IS GOING TO BE I DON'T KNOW TWO WEEKS OF 14 DAYS
01:52:32 AND THIS IS HOW LONG IT WOULD TAKE US TO GET TO THAT
01:52:36 EFFICIENCY OF WAY TIME REDUCTION.
01:52:39 >> I THINK THAT IT IS I MEAN THAT'S A WHOLE POINT OF I THINK
01:52:43 THAT'S A MOST STRAIGHTFORWARD AS SIMPLE MEASURE OF MATRIX FOR
01:52:47 OF YOUR SUCCESS OF EFFICIENCY. BUT IF YOU CAN'T COME UP WITH
01:52:51 THAT STANDARD ON YOUR OWN I'LL COME UP FOR YOU AND THAT'S WHAT
01:52:55 I'M EXPECTING TO SEE NEXT WEEK. >> THANK YOU CHAIR CHAN I THINK
01:52:56 YOUR QUESTION WAS ABOUT THE DEPARTMENT MERGER WHICH I WAS
01:52:59 RESPONDING TO BUT WE ARE HAPPY TO PROVIDE YOU THE METRICS THAT
01:53:02 WE'VE SEEN SO FAR WITH OPEN GOV.
01:53:03 I DO WANT TO REITERATE AGAIN OUR BUDGET IS NOT PROPOSING A
01:53:06 CONTRACT AMENDMENT WITH OPEN GOV.
01:53:10 THAT IS A SEPARATE DECISION THAT WILL COME TO YOU BEFORE
01:53:11 WITH CONTRACT AUTHORITY BUT WE'RE HAPPY TO GIVE YOU THAT
01:53:14 INFORMATION. >> OH I MEAN I THINK THAT WHILE
01:53:15 THAT MAY BE TRUE YOU ALREADY HAVE LIKE YOU DETERMINE A
01:53:18 BUDGET AMOUNT RIGHT? LIKE YOU ALREADY PAID I LIKE
01:53:22 I'M RIGHT HERE IS YOUR LINE ITEM YOU SAY PERMIT
01:53:23 MODERNIZATION AND YOU ALREADY HAVE FOR 20 627 YOU HAVE $7.177
01:53:33 MILLION AND $175,000 AND THEN FOR IN FACT YOU'RE INCREASING
01:53:36 IT BY 2027, 2028 TO $7 MILLION AND $383,000 AND 75 $750.
01:53:47 SO I MEAN RIGHT THERE YOU'RE ADDING INCREASING BY THE YEAR
01:53:51 AND IT'S NOT CLEAR TO ME HOW DO YOU COME UP WITH THAT
01:53:55 PROJECTION OF THAT SPENDING IF YOU DON'T ALREADY HAVE A
01:54:01 CONTRACT SORT OF PROJECTION OR COST ESTIMATES IN PLACE?
01:54:06 >> WE DO HAVE GOALS FOR HOW WHAT HOW MANY PERMITS WE CAN
01:54:08 GET ON BOARD EACH YEAR OF THOSE EXPENDITURES.
01:54:10 AND THE REASON THE BUDGET INCREASES IN THAT YEAR IS WE
01:54:14 ARE BRINGING OTHER DEPARTMENTS SUCH AS THE PORT ONTO THAT
01:54:16 PERMITTING SYSTEM IN LATER YEARS.
01:54:18 >> YEAH SO HOW MANY CONTRACT I MEAN I SHOULDN'T SAY CONTRACT
01:54:22 BASED ON THIS CONTRACT HOW MANY PERMITS DO YOU CURRENTLY
01:54:26 PROCESS AND THEN YOU'RE EXPECTING THAT YOU CAN ARGUE
01:54:30 INCREASING THE VOLUME OF THE PERMITS THAT YOU CAN PROCESS
01:54:34 PER MONTH AND IS THERE A PERCENTAGE THAT YOU CAN PROJECT
01:54:35 THAT YOU'LL BE ABLE TO INCREASE?
01:54:38 >> WE HAVE SEEN THAT THROUGH THE LIMITED SUBSET IN THE PILOT
01:54:39 SO FAR AND WE HOPE THAT WILL EXPAND.
01:54:42 YES. AND DO WE HAVE THAT INFORMATION
01:54:45 RIGHT NOW OR WILL WE HAVE THAT INFORMATION AGAIN?
01:54:47 >> WE WERE PREPARED TO GIVE YOU THIS INFORMATION AS PART OF THE
01:54:50 CONTRACTING PROCESS BUT WE'RE HAPPY BETWEEN NOW AND THE NEXT
01:54:53 HEARING TO SUBMIT THAT TO YOU IF YOU'RE LOOKING FOR IT AS
01:54:55 PART OF THE BUDGET. >> YEAH, I'M HAPPY TO SEPARATE
01:54:58 THE CONVERSATION BETWEEN THE ACTUAL CONTRACT VERSUS THE
01:55:02 DOLLAR AMOUNT THAT YOU ARE NOW SETTING ASIDE TO SAY THIS IS
01:55:06 HOW MUCH WE NEED TO INVEST IN PERMIT MODERNIZATION.
01:55:10 >> I THINK WHAT IS NOT CLEAR TO ME IS THAT THE BUDGET THAT YOU
01:55:14 SET UP SEE IT'S REALLY BASED MY ASSUMPTION IS IS REALLY BASED
01:55:18 OFF FROM THE CONTRACT AND IF I MAY I'M GOING TO GIVE YOU THIS
01:55:22 RECOMMENDATION IS WHAT I'M REALLY LOOK FORWARD TO SEEING
01:55:25 NEXT WEEK IS THAT I WILL LIKE TO UNDERSTAND WITH THE SOCIAL
01:55:29 CONTRACT RIGHT NOW YOU ARE SO FOCUSING ON IS THAT I WOULD
01:55:32 LIKE TO UNDERSTAND WITH THE UNDERSTANDING AND THANK YOU FOR
01:55:36 THAT INFORMATION THAT YOU HAVE PROVIDED IS THAT THERE'S SOCIAL
01:55:39 CONTRACT WILL BE EXPIRING YOU KNOW IN SEPTEMBER AND WHAT I'M
01:55:43 ACTUALLY WANTING TO UNDERSTAND AND SEE THAT NEXT WEEK IS THAT
01:55:47 IN ADDITION TO THIS CONTRACT OF OPEN GOV THAT RIGHT NOW YOU
01:55:51 HAVE PRE DETERMINED ABOUT ROUGHLY LIKE $7 MILLION OF
01:55:54 SPENDING EACH YEAR WHAT CAN YOU DO WITHIN THAT BUDGET AS WELL?
01:55:58 IT'S LIKE WHAT ARE YOUR ALTERNATIVES LIKE I GET IT WE
01:56:02 ALL SEEM SO SO GUNG AND LOCKED IN WITH OPEN GOV BUT THE
01:56:06 REALITY IS YOU STILL HAVE TO COME BACK TO THIS BOARD FOR
01:56:10 APPROVAL AND YOU DON'T EVEN HAVE THE DATA FOR PERFORMANCE
01:56:13 AT THE MOMENT. AND SO MY QUESTION IS SHOULD
01:56:17 YOU ACTUALLY COME IN SHORT MEANING THIS SOCIAL CONTRACT AS
01:56:18 A PILOT COME IN SHORT OF EXPECTATION?
01:56:21 WHAT IS THE ALTERNATIVE OF LIKE WHAT ARE OUR ALTERNATIVES?
01:56:26 WHAT ARE THE OPTIONS? DO YOU HAVE OTHER OPTIONS?
01:56:29 >> AT THE MOMENT WE BELIEVE THE SYSTEM IS PERFORMING AND WE ARE
01:56:34 ERRING ON THE SIDE OF DOING PERMITS CORRECTLY RATHER THAN
01:56:38 IN VOLUME. THAT DOES TAKE MORE TIME AND IT
01:56:41 MEANS THINGS ARE MOVING MORE SLOWLY THAN WE THINK BUT WE ARE
01:56:45 VERY HAPPY WITH THE RESULTS AND I THINK WE'RE HEARING THAT
01:56:46 FROM OUR CONSUMERS. >> WE'RE HAPPY TO GIVE YOU
01:56:49 THOSE METRICS IN TERMS OF ALTERNATIVES.
01:56:52 THE ALTERNATIVES ARE TO CONTINUE THE AND EXPAND THIS
01:56:54 PILOT THROUGH THE CONTRACT AMENDMENT OR TO SEEK ANOTHER
01:56:57 SYSTEM HAVE YOU SEEN THE LETTER THAT WAS PROVIDED TO THE BOARD
01:57:03 OF SUPERVISORS FROM THE FROM THE COMMISSION, FROM THE
01:57:08 BUILDING INSPECTION COMMISSION ?
01:57:10 >> I'M NOT AWARE OF THAT LETTER.
01:57:12 NO PROBLEM. I WANT TO SHARE WITH YOU AND I
01:57:15 THINK YOU SHOULD ABSOLUTELY ACTUALLY GO OVER THIS LETTER
01:57:19 THAT WAS DATED ON MAY 12TH THAT WAS SENT TO US BY THE BUILDING
01:57:22 INSPECTION COMMISSION WHICH I REALLY APPRECIATE THEIR LETTER
01:57:28 BECAUSE IN THEIR LETTER IT WAS A CLEAR INDICATION ABOUT THAT
01:57:32 THEY THEIR EXPRESSED CONCERN ABOUT THE MERGING OF THE TWO
01:57:36 DEPARTMENT AND IT ACTUALLY CLEARLY INDICATED A FEW THINGS
01:57:40 AND THAT GOVERNANCE ONE OF THE THERE ARE MANY CATEGORIES BUT
01:57:45 I'M JUST HIGHLIGHTING FOR YOU AS YOU INDICATED ABOUT
01:57:49 EFFICIENCY OF IT'S NOT ABOUT BUDGET SAVING BUT ABOUT
01:57:53 EFFICIENCY OF THE MERGING OF THIS DEPARTMENT'S GOVERNANCE
01:57:57 AND SPECIALIZED FUNCTION MUST BE PROTECTED AND THAT IT'S
01:58:00 INDICATING HIGH RISE AND COMPLEX BUILDING PEER
01:58:05 REVIEW. I ALSO WANT TO POINT OUT, YOU
01:58:06 KNOW THE SO THERE'S A FEW THINGS THAT LISTED HERE I
01:58:09 REALLY URGE YOU TO GO OVER IT. I DO ACTUALLY WANT TO GO IN AND
01:58:12 LET YOU KNOW THAT SPECIFIC ACTUALLY THOUGH THAT THEIR
01:58:17 CONCERN ABOUT LEADERSHIP AND THAT THEY THEIR THEIR
01:58:24 PERSPECTIVE OF ABOUT MERGING AND WHAT THE STRUCTURE OF
01:58:31 LEADERSHIP SHOULD LOOK LIKE AND THAT THEY ARE SAYING
01:58:36 IN THIS LETTER THAT WHILE THEY ARE SUPPORTING FOR EFFICIENCY
01:58:40 AND THEY UNDERSTAND BUT THEY HAVE CONCERN AND HERE'S IS
01:58:46 ACTUALLY THE QUOTE THAT THEY PUT IN IS THAT THEY SAID THAT
01:58:54 THE CURRENT SAN FRANCISCO PRACTICE IS TO ENSURE THAT THE
01:58:56 HEAD OF BUILDINGS AND SERVICES IS A CERTIFIED BUILDING
01:58:59 OFFICIAL REFLECTING THE TECHNICAL AND PUBLIC SAFETY
01:59:03 RESPONSIBILITY OF THE ROLE. >> THIS LEADERSHIP STRUCTURE
01:59:07 MUST BE PRESERVED. >> AND THEN IT ALSO SAID THAT
01:59:11 TODAY IF THERE IS A DISPUTE REGARDING SAFETY BETWEEN THE
01:59:14 DEPARTMENTS, THE I DIRECTOR AND PLANNING DIRECTOR STAND ON
01:59:21 EQUAL FOOTING AND CAN FREELY REPRESENTS THEIR POSITIONS
01:59:24 AND ESCALATE THEM A MERGER THAT RESULTS IN A DEPARTMENT
01:59:29 DIRECTOR WHO IS NOT A TECHNICAL EXPERT OR CERTIFIED BUILDING
01:59:33 OFFICIAL SHOULD NOT DILUTE THE TECHNICAL PERSPECTIVE IN THIS
01:59:37 NEW MODEL. HOW CAN THE CITY ENSURE THAT IT
01:59:38 APPLY TOR TICE'S ENFORCEMENT RIGOR AND INDEPENDENCE OF
01:59:42 PERMIT REVIEW AND ON SITE INSPECTORS OVER OTHER
01:59:45 ORGANIZATION PRIORITIES OVER TIME WE CALL REGARDLESS OF
01:59:50 WHICH INDIVIDUALS ARE IN LEADERSHIP POSITIONS IT'S A
01:59:54 QUESTION ACTUALLY POSED BY THE COMMISSION SO IT SEEMS TO ME
02:00:00 THAT WHAT THE COMMISSION IS FLAGGING IS NOT IN AGREEMENT
02:00:04 WITH THE ULTIMATE MERGER OF LEADERSHIP.
02:00:09 >> THEY MAY BE SUPPORTIVE OF SOUNDS LIKE THROUGHOUT THAT
02:00:12 THEY WANT BE THEY ARE IN AGREEMENT IN SUPPORT OF
02:00:16 EFFICIENCY BUT THEY ARE NOT IN SUPPORT OF ANY LEADERSHIP
02:00:20 COME UNDER ANOTHER DEFINITELY NOT WHAT THE D B I DIRECTOR
02:00:25 UNDERNEATH UNDER THE PLANNING DIRECTOR AND AND ONE OF THE
02:00:29 AND PART OF THE LETTER TO ACTUALLY SAYS I HAVE NOT CALL
02:00:33 UP I HAVE NOT CALL YOU UP YET I'M NOT DONE AND THAT AND THE
02:00:40 FACT THAT HERE ETHICS MEASURES TO PROTECT A PUBLIC INTEREST
02:00:43 AND ROOT OUT CORRUPTION AND HERE AGAIN THE DBE AS WE
02:00:48 HAVE ALREADY ANNOUNCED OR THE LAST A ESPECIALLY TWO YEARS OR
02:00:51 A FEW YEARS WE KNOW THAT THERE IS ACTUALLY A CORRUPTION
02:00:55 PROBLEM WITH THE DEPARTMENT REGRETTABLY AND SO HERE THAT
02:00:59 ACTUALLY THE QUESTION THAT I HAVE AGAIN WITH THE ASPECT OF
02:01:03 OPEN GOV AND SO DOES OPEN GOV YOU KNOW AND BECAUSE OF ALL
02:01:07 THESE THINGS THAT WE HAVE DONE AND THAT I WANT TO SAY THAT
02:01:11 DEPARTMENT OF THE BUILDING INSPECTION HAS DONE ALONG WITH
02:01:15 WITH THE OVERSIGHT FROM THE COMMISSION HAS DONE A FEW KEY
02:01:18 REFORMS FOR THE SYSTEM SO WILL THEN OPEN GOVT PERMITTING
02:01:23 SYSTEM TO BE ABLE TO TRACK AND FLAG THE PROBLEMS AND BE
02:01:30 ABLE TO ACTUALLY HAVE THOSE STANDARD TO FLAG ANY TYPE
02:01:34 POTENTIALLY OF CORRUPTION AND AND THOSE ARE TECHNICAL
02:01:39 ASPECTS OF THE OPEN GOV THAT I'M NOT TOO SURE IS ACTUALLY
02:01:46 BEING CONSIDERED. SO NOW I'M READY FOR YOU TO
02:01:50 STEP IN TO ANSWER THOSE QUESTIONS IF YOU IF THAT IF
02:01:51 YOU'RE SO INCLINED. THANK YOU.
02:01:58 GOOD AFTERNOON. I'M DAVID KANE, DIRECTOR
02:01:59 INTERIM DIRECTOR OF DBA. I BELIEVE MUCH OF THE CONTENT
02:02:02 THAT YOU REFERRED TO IN THE LETTER I CAN ADDRESS THAT.
02:02:06 SARAH DENNIS PHILLIPS DIRECTOR OF PLANNING DEPARTMENT AND I
02:02:10 OVER THE PAST COUPLE OF MONTHS HAVE BEEN WORKING CLOSELY
02:02:13 TOGETHER TO TRY TO FORMULATE WHAT A MERGE DEPARTMENT
02:02:17 AND WHAT THE ORGANIZATION STRUCTURE WOULD LOOK LIKE.
02:02:18 WE HAVE NOT COME UP WITH A FINAL PLAN YET.
02:02:21 WE ARE STILL KIND OF IN THE MIDDLE OF THAT PROCESS OF
02:02:24 TRYING TO DETERMINE WHAT WILL BE THE EXACT STRUCTURE BUT I
02:02:31 I'VE TAKEN THE COMMENTS I'VE HEARD THE COMMENTS THAT YOU'VE
02:02:33 THAT YOU READ IN THAT LETTER BOTH FROM THE COMMISSION
02:02:36 AND FROM OTHERS IN THE COMMUNITY AND SARA AND I ARE
02:02:39 WORKING CLOSELY TOGETHER TO MAKE SURE THOSE CONCERNS ARE
02:02:42 ADDRESSED. YOU KNOW, I THINK BEING THE
02:02:46 TECHNICAL EXPERT, BEING THE ACTING AS THE BUILDING OFFICIAL
02:02:47 I'M WELL AWARE OF ALL OF THE CONCERNS THAT THEY'VE RAISED
02:02:51 AND TRYING TO MAKE SURE THAT THEY DO GET ADDRESSED IN THE
02:02:54 NEW STRUCTURE. >> THANK YOU.
02:02:57 AND LET ME ASK YOU THIS QUESTION TO THEM.
02:02:58 SO I MEAN I THINK AND I IT'S IT'S DISAPPOINTING BUT IT IS
02:03:04 HAPPENING, YOU KNOW, TO ME FROM NEWS REPORTING ABOUT THE
02:03:09 IMPLEMENTATION OF THIS OPEN GOV IT'S AND MAYBE YOU CAN REMIND
02:03:16 ME LIKE MAYBE YOU CAN CORRECT ON THE RECORD AND THEN SOME OF
02:03:20 THESE THINGS THAT IS INDICATE IT SEEMS LIKE FIVE EVEN
02:03:24 INCLUSIVE OF FORMER STAFFER OPEN GOV AS WELL AS CURRENT
02:03:28 CITY WORKERS EXPRESSING CONCERNS ABOUT THIS OPEN GOV
02:03:35 IMPLEMENTING OPTION SO WILL WHERE WERE OR WILL IT NOT TO
02:03:44 INCLUDES WHAT I KIND OF JUST INDICATED WHEN IT COMES TO SORT
02:03:47 OF DOES FLAGS AND CHECKS FOR ANY CORRUPTION.
02:03:52 YES I THINK AS WAS MENTIONED EARLIER WE'RE WE'RE TRYING TO
02:03:56 BE THOUGHTFUL AND CAREFUL ABOUT NOT RUSHING THE IMPLEMENTATION
02:03:57 TO BE METHODICAL IN THE TYPES OF PERMITS WHERE WE'RE ROLLING
02:04:01 OUT. WE OUR TEAM IDBI HAS WORKED
02:04:04 HARD OVER THE PAST FEW YEARS TO PUT IN CONTROLS AND PROCEDURES
02:04:08 AND POLICIES TO TRY TO MINIMIZE AND MAKE SURE THE THE PROBLEMS
02:04:12 THAT WE THAT THE DEPARTMENT EXPERIENCED WITH CORRUPTION
02:04:16 IN THE PAST THAT WE HAVE WAYS TO TRACK AND CONTROL
02:04:19 AND PREVENT THEM IN THE FUTURE. AND SO AS WE GO FORWARD WITH
02:04:22 MOVING MOVING FORWARD WITH THE IMPLEMENTATION OF OPEN GOV, WE
02:04:27 ARE LOOKING TO MAKE SURE WE DO IT THOUGHTFULLY TO MAKE SURE
02:04:28 THAT WE DO GET PROPER CONTROLS, AUDIT PROCEDURES PUT IN PLACE
02:04:34 WITH THE SYSTEM. >> SO ACCORDING TO THIS NEWS
02:04:38 REPORTING IT'S REALLY BY THE STANDARD THAT IT SEEMS LIKE
02:04:42 THAT THERE'S A LACK OF OPEN GOV MEETING THAT DEADLINE IS THAT
02:04:46 CORRECT? I WOULD SAY THAT THE INITIAL
02:04:50 SCHEDULE THAT WAS CONTEMPLATED WE FOUND THAT AGAIN AND THAT
02:04:54 THE COMPLEXITIES THAT WE HAVE WITH SAN FRANCISCO SOME OF THE
02:04:58 ITEMS THAT YOU NOTED WITH HAVING PROPER AUDIT
02:05:02 AND CONTROLS IN PLACE AS HAS HAS MEANT THAT WE NEEDED TO
02:05:09 SLOW DOWN THE PROCESS A LITTLE BIT, MAKE SURE THAT WE DO IT
02:05:10 RIGHT NOT NOT SET TARGETS ON HAVING A CERTAIN MAGNITUDE OF
02:05:13 PERMITS THAT WE MUST DO IN A CERTAIN TIME PERIOD BUT MAKE
02:05:17 SURE THAT WE DO IT RIGHT AND THAT WE IMPLEMENT IT THE
02:05:19 RIGHT WAY. >> AND SO WERE YOU SUPPOSED TO
02:05:21 OR NOT YOU BUT LIKE OPEN GOV AS A CONTRACTOR THAT THEY WERE
02:05:25 SUPPOSED DELIVER 15 PERMIT TYPES ON A NEW SYSTEM BY MARCH
02:05:31 16 BUT BUT YOU HAVE NOT MET THAT DATE.
02:05:35 I APOLOGIZE I'M NOT PRIVY TO THE PRECISE DETAILS OF THE
02:05:36 CONTRACT AND WHAT WAS PROMISED BEFORE I STEPPED IN AS INTERIM
02:05:39 DIRECTOR I KNOW THAT THERE WE DO HAVE A SCHEDULE OF PERMIT
02:05:46 TYPES THAT ARE GOING TO BE IMPLEMENTED IN THE NEXT FEW
02:05:49 MONTHS THAT WE ARE WE ARE TARGETING FOR A SUMMER LAUNCH
02:05:51 TO TRY TO EXPAND THE PROGRAM SO WHO CAN ANSWER QUESTIONS ABOUT
02:06:01 THAT? I MY ASSUMPTION IS YOU GOT TO
02:06:05 HAVE SOME KIND OF DETERMINATION OF WHAT YOU'RE TRYING TO GET AT
02:06:09 AND IN TERMS OF YOUR SPENDING FOR A PERMITTING SYSTEM THAT
02:06:13 THEN THAT YOU COME TO A CONCLUSION OF $7 MILLION PER
02:06:17 YEAR THAT YOU HAVE TO SPEND. WALK ME THROUGH THAT.
02:06:21 DO YOU I MEAN I THINK THERE'S A COMMITMENT TO SAY LIKE LET'S
02:06:25 HAVE A NEW PERMIT SYSTEM BY THE END OF THE BY THE END OF THIS
02:06:28 PILOT WE WILL HAVE A BRAND NEW SYSTEM.
02:06:29 IT WILL BE LIKE YOU KNOW, FOR US READY TO GO IN AND IT'S
02:06:35 EXPIRING IN SEPTEMBER AND NOW YOU'RE ALREADY ACTIVELY
02:06:39 IN UNDER UNDERGOING A CONTRACT NEGOTIATION.
02:06:43 SEEMS LIKE YOU'RE PUSHING FOR A CONTRACT RENEWAL OR MOVING
02:06:46 FORWARD WITH THIS CONTRACT AND SO WHAT IS WHAT IS YOUR
02:06:51 GOAL OF IMPLEMENTATION OF A A COMPREHENSIVE PERMITTING
02:06:55 SYSTEM? >> I THINK THAT COULD BE
02:06:58 SEVERAL YEARS OFF. BUT TO ANSWER I THINK THE
02:07:00 IMMEDIATE QUESTION YOU'RE ASKING WE STARTED WITH VERY
02:07:02 SMALL SCOPES OF PERMITS. THE NEXT ROUND THAT WE'RE GOING
02:07:06 TO DO ARE VERY SIGNIFICANT. MANY THOUSANDS OF PERMITS THAT
02:07:09 WE'RE GOING TO BE DOING. SO THE TRADE PERMITS
02:07:11 ELECTRICAL, PLUMBING PERMITS, REROOFING PERMITS IT'S A HIGH
02:07:14 VOLUME. IT REQUIRES A LOT OF INSPECTION
02:07:17 WORK BY OUR INSPECTORS OUT IN THE FIELD.
02:07:21 AND SO I THINK AFTER THOSE ARE IMPLEMENTED THIS SUMMER, WE'LL
02:07:25 HAVE A GOOD SENSE OF WHERE WE'RE HEADED WITH THIS WITH
02:07:27 THIS PROJECT. SO AT THE AT THE MOMENT WHERE
02:07:29 WE'RE OPTIMISTIC AND TRYING TO MAKE THE BEST OF IT THAT WE
02:07:32 CAN, I THINK BY THE TIME WE GET TO THE END OF THE SUMMER WE'LL
02:07:36 HAVE A GOOD SENSE OF WHERE WE'RE HEADED.
02:07:39 HOW DO YOU RESPOND TO I MEAN NO, I'M LITERALLY QUOTING THE
02:07:43 ARTICLE IT SAYS ONE FORMER OPEN GOVT EMPLOYEE AGREE WITH THE
02:07:47 CITY STAFFER SENTIMENTS SAYING THE COMPANY IS NOT EVEN CLOSE
02:07:51 TO ITS COMPETITORS IN TERMS OF FEATURE PARITY.
02:07:57 >> TELL ME MORE. I DON'T I DON'T KNOW THAT THAT
02:08:01 THAT PRECISE PERSON'S TAKE. I WOULD SAY THAT WE ARE A VERY
02:08:03 COMPLEX LARGE CITY NOT JUST OUR SIZE BUT THE WAY WE OPERATE THE
02:08:09 LEVEL OF HOUSING CODE ENFORCEMENT THAT WE THAT WE DO
02:08:10 IT'S IT'S UNIQUE TO ANY OTHER CITY IN THE NATION.
02:08:14 >> ABSOLUTELY. SO DO YOU HAVE A BACKUP PLAN IF
02:08:17 IT'S AN OPEN GOV WE DO HAVE OUR CURRENT SYSTEM THAT WE THAT WE
02:08:21 ARE GOING TO MAINTAIN FOR SEVERAL YEARS INTO THE FUTURE.
02:08:25 SO WE WILL HAVE THAT PROCESS AT THIS POINT WE ARE COMMITTED TO
02:08:28 TO TRYING TO MOVE FORWARD WITH OPEN GOV AND IMPLEMENT IT AS
02:08:32 SMARTLY AS WE CAN SO HOW WE UNDERSTAND SO FOR THE NEXT FEW
02:08:35 YEARS SEVERAL YEARS ACCORDING TO YOU SEVERAL YEARS MY
02:08:36 ASSUMPTION IS MORE THAN THREE SO IN THE NEXT MORE THAN THREE
02:08:42 YEARS WE WILL HAVE TWO SYSTEM ONE IS OPEN GOV AND THEN ONE IS
02:08:46 WHAT WE CURRENTLY HAVE WHICH IS 25 YEARS AND ACCORDING TO MANY
02:08:48 PEOPLE IT'S IT'S KIND OF BROKEN WHAT ORACLE POTENTIALLY SEVERAL
02:08:52 YEARS I DON'T KNOW WHETHER IT WILL PRECISELY BE THREE BUT
02:08:56 SEVERAL YEARS I EXPECT WE'LL BE WORKING IN TWO SYSTEMS
02:08:59 AND STILL BE NEEDING TO MAINTAIN THE OLD ORACLE SYSTEM.
02:09:04 >> YES. YEAH.
02:09:04 AND I GUESS THEN WHAT I'M ASKING IS DO WE HAVE
02:09:07 ALTERNATIVE BEYOND OUR EXISTING SYSTEM OR OPEN GOV IF WE GET
02:09:12 INTO THE FUTURE AND WE FIND THAT THE OPEN GOV SYSTEM IS
02:09:16 JUST NOT WORKING THAT IT WE WE WILL MAKE A DECISION
02:09:19 AND DETERMINATION AT THAT POINT WE'RE NOT THERE YET AND I DON'T
02:09:23 EXPECT THAT WILL HAPPEN BEFORE THE END OF THIS CALENDAR YEAR.
02:09:26 I THINK WE NEED TO SEE HOW THE NEXT FEW PERMIT LAUNCHES ARE
02:09:28 RELEASED AND REALLY FOCUS ON TRYING TO IMPLEMENT OPEN GOV AS
02:09:34 BEST WE CAN. >> AND REMIND ME AGAIN HOW MUCH
02:09:35 IS THE CURRENT OPEN GOV SO SOURCE CONTRACTOR FOR THE PILOT
02:09:41 I BELIEVE IT'S A $7 MILLION A YEAR ANNUAL IS IT FIVE POINT
02:09:45 I'M SORRY. >> SORRY HOW MUCH?
02:09:48 5.9 MILLION. 5.9 MILLION FOR THE EXISTING
02:09:49 CONTRACT EXPIRING IN IN SEPTEMBER.
02:09:55 AND ARE YOU ON BUDGET? YES WE ARE ON BUDGET.
02:10:03 SO YOU CURRENTLY BECAUSE BECAUSE THE FISCAL YEAR ENDS
02:10:07 IN JUNE. SO YOU'RE SAYING THAT 5.9
02:10:11 MILLION YOU ACTUALLY CAN OPERATE THROUGH SEPTEMBER?
02:10:18 >> YES. OKAY.
02:10:18 I WILL HOLD YOUR AWARDS TO IT. THAT'S REALLY GOOD TO KNOW THAT
02:10:22 YOU ALREADY HAVE $5.9 MILLION BUDGETED THAT WILL ACTUALLY
02:10:26 HELP YOU OPERATE UNTIL SEPTEMBER.
02:10:29 AND HERE'S WHAT I'M ASKING FOR A FEW THINGS WHEN YOU COME BACK
02:10:34 NEXT WEEK I NOW I SEE MY COLLEAGUES ARE ASKING QUESTIONS
02:10:38 SO YOU KNOW WHAT? I'M GOING TO LET MY COLLEAGUES
02:10:42 GO. MY APOLOGIES COLLEAGUES
02:10:43 AND SUPERVISORS ORDER. >> THANK YOU CHAIR THANK YOU
02:10:46 FOR THE PRESENTATION. I THINK YOU KNOW WHAT IS KIND
02:10:50 OF YOU KNOW WE'RE TALKING ABOUT THE THE NARROW BUDGET BUT
02:10:53 CLEARLY LOOMING OVER THAT IS THIS PLAN MERGER AND I THINK
02:10:56 YOU KNOW NEXT WEEK IT WOULD BE HELPFUL TO GET A SENSE OF HOW
02:11:01 YOU'RE THINKING ABOUT THIS EVOLUTION.
02:11:02 I MEAN I UNDERSTAND IT'S NOT HAPPENING OVERNIGHT.
02:11:05 IT IS SOMETHING THAT WILL BE DONE WITHIN A FEW YEARS AND I'D
02:11:08 LOVE TO SEE KIND OF THE PHASED APPROACH OF THAT HOW YOU
02:11:11 ANTICIPATE THINGS CHANGING YEAR BY YEAR, WHAT GETS COMBINED,
02:11:15 WHAT DOESN'T GET COMBINED. YOU KNOW, I RECOGNIZE IT IS NOT
02:11:19 NECESSARILY ABOUT COST SAVINGS BUT ABOUT OUTCOMES AND I THINK
02:11:23 THAT'S THE RIGHT WAY TO LOOK AT IT AND I KNOW WE'LL HAVE PLENTY
02:11:26 OF TIME FOR FURTHER CONVERSATION ABOUT THE THE
02:11:30 PERMIT ITSELF IN OPEN GOV AS IT COMES BEFORE THE BOARD AND AND
02:11:35 THE COMMITTEE AND YOU KNOW THIS THIS SLIDE OR THIS THESE
02:11:41 PERFORMANCE MEASURES ON SLIDE 11 I MEAN THAT'S AGAIN WHAT I'D
02:11:45 LOVE TO KEEP US FOCUSED ON WHICH IS TO SAY WHETHER IT IS
02:11:47 THE TECHNOLOGY WITH THE PERMITTING SYSTEM OR WHETHER IT
02:11:51 IS THE MERGER ITSELF, HOW IS THAT GOING TO RESULT IN BETTER
02:11:55 OUTCOMES FOR MOVING THINGS MORE QUICKLY, MORE TRANSPARENTLY,
02:12:00 MORE EFFECTIVELY FOR YOUR USERS, FOR YOUR CUSTOMERS, FOR
02:12:04 OUR CITY? BECAUSE I'D LIKE TO GET A SENSE
02:12:08 OF HOW MUCH OF THESE IMPROVEMENTS THAT WE ALL WANT,
02:12:12 RIGHT? WE ALL WANT TO CUT DOWN ON THE
02:12:13 TIME WE ALL WANT TO CUT DOWN ON THE BACK AND FORTH FOR PERMITS
02:12:15 ESPECIALLY THOSE REALLY SMALL ONES LIKE THE WINDOWS AND THE
02:12:19 DOORS AND THINGS LIKE THAT. HOW MUCH OF THAT CAN WE EXPECT
02:12:22 TO BE IMPROVED FROM A PERSONNEL SIDE OF THE COORDINATION WITH
02:12:27 THE MERGER? HOW MUCH OF THAT DO WE THINK
02:12:28 COMES FROM THE TECHNOLOGY SIDE THAT'S THAT'S WHAT I'D LIKE TO
02:12:32 SEE IS WHERE HOW MUCH IS REASONABLE?
02:12:35 ARE WE TALKING ABOUT 20% IMPROVEMENT, 40% IMPROVEMENT
02:12:37 AND WHERE DOES THAT COME FROM? AGAIN, THE PERSONNEL SIDE
02:12:40 VERSUS THE TECHNOLOGY SIDE. SO I THINK THERE'S THERE'S WAYS
02:12:43 YOU CAN SHARPEN THAT UP WHEN YOU COME BACK TO THIS BODY.
02:12:47 >> THANK YOU. THANK YOU.
02:12:49 >> AND SO MICHAEL WALTON THANK YOU.
02:12:50 CHAIR CHAN, YOU SAID 5.9 TO SEPTEMBER YOU'RE ON TRACK.
02:12:54 >> CAN YOU SEND OVER THOSE ACTUALS SO WE CAN SEE THE
02:12:58 SPENDING THING? >> YES, WE WILL.
02:13:01 THANK YOU SO I WANTED TO UNDERSTAND BETTER THAT WHEN YOU
02:13:18 RETURN IS A FEW THINGS AGAIN THE MATRIX OF SUCCESS OF
02:13:22 EFFICIENCY FOR YOU TO MERGE YOUR DEPARTMENT.
02:13:26 I THINK ULTIMATELY IS YOU HAVE THIS LETTER FROM THE COMMISSION
02:13:34 IF YOU WANT TO. WELL ACTUALLY I AM ASKING FOR
02:13:38 YOU TO HAVE A WRITTEN RESPONSE JOINTLY PROBABLY FROM BOTH OF
02:13:42 YOU TO RESPOND TO ADDRESSING SOME OF THESE CONCERNS FROM THE
02:13:49 COMMISSION AND WHAT YOUR PERSPECTIVE AND APPROACH TO THE
02:13:53 MERGER. I KNOW THAT YOU HAVE THAT
02:13:54 LITTLE GRAPH AND ULTIMATELY YOU MAY COME IN TO LIKE TO CHARTER
02:14:00 AMENDMENTS IN ORDER FOR YOUR MERGER MERGER TO BE ANYTHING
02:14:03 DIFFERENT. BUT IN I'M ALWAYS GOING TO BE
02:14:08 THE ONE THAT SAY THIS AND YOU'LL SEE THAT THAT'S NOT
02:14:12 JUST FOR THE PLANNING DEPARTMENT AND FOR THAT
02:14:13 BUILDING INSPECTION COMMISSION AND PLANNING COMMISSION I'M
02:14:19 ALWAYS ON THE SIDE OF HAVING TRANSPARENCY, HAVING OVERSIGHT
02:14:23 AND GOING TO HAVE MORE COMMISSIONS THAT IS BE ABLE TO
02:14:27 WORK DIRECTLY WITH THE DEPARTMENT AND DIRECTLY WITH
02:14:32 THE HAVING CHECKS AND BALANCES DIRECTLY WITH THE LEADERSHIP
02:14:35 AND THAT THERE'S NO CONFUSION WITH LEADERSHIP STRUCTURE.
02:14:38 THAT IS WHY I ACTUALLY AM IN AN AGREEMENT WITH THE COMMISSION
02:14:43 ON THIS ONE AND I'M GOING TO I AM NOT SPEAKING FOR THE
02:14:46 COMMITTEE. I'M SPEAKING FOR MYSELF AS THE
02:14:47 CHAIR AND THAT I THINK THAT I CONCUR WITH THEIR CONCERN
02:14:53 AND SO I WOULD LIKE TO SEE THAT I WOULD ALSO LIKE TO SEE THAT,
02:14:57 YOU KNOW, AS YOU ARE NOW ASKING FOR THIS BODY TO APPROVE YOUR
02:15:01 BUDGET WITH THE LINE ITEM OF PERMIT MODERNIZATION
02:15:04 SPECIFICALLY I'M LOOKING AT THAT $7 MILLION.
02:15:07 I WOULD LIKE TO HAVE A BETTER UNDERSTANDING OF MAYBE NOT
02:15:11 NECESSARILY ACTUALLY SPECIFICALLY ABOUT OPEN GOV.
02:15:15 HOW ABOUT THAT NOT AS A CONTRACT BUT SURELY AS YOUR
02:15:17 CITY DEPARTMENT THAT RIGHT NOW AS YOU ISSUE ALL THESE CATEGORY
02:15:20 OF PERMITS AND OVERALL LIKE YOUR DATE OF AVERAGE DAY OF WAY
02:15:27 TIME AVERAGE FOR RESPONSE YOUR AVERAGE TIME FOR A REVIEW
02:15:31 AND THEN YOUR AVERAGE TIME FOR PERMITS SOLUTION LIKE APPROVE
02:15:36 OR DENY OR ADJUSTMENT AND WHAT IT IS TODAY VERSUS OF WHAT YOUR
02:15:43 GOAL IS SUPPOSED TO BE A PROJECTION OF ACTUAL GOAL
02:15:46 AND THEN TO SEE HOW THOSE OPEN GOV ACTUALLY MEASURE UP BOTH
02:15:50 IN IMPLEMENTATION BUT ALSO RESULTS AND AND MOST
02:15:55 IMPORTANTLY THOUGH ALSO IS WHAT I LIKE TO KNOW IS WHAT IS YOUR
02:15:59 PLAN B IF IT'S NOT OPEN GOV AND THAT WHAT ARE YOUR OTHER
02:16:06 OPTION NOT GOING BACK TO THE EXISTING SYSTEM BECAUSE THAT'S
02:16:10 NOT WHAT I'M ASKING FOR. I'M NOT ASKING YOU TO GO BACK
02:16:12 TO THE 25 YEAR OLD ORACLE SYSTEM THAT YOU CURRENTLY HAVE.
02:16:15 WHAT I'M ASKING IS THAT LIKE WHEN YOU CHART OUT A COURSE
02:16:18 AND YOU MOVE FORWARD OPEN GO FOR EXAMPLE LIKE AS A CONTRACT
02:16:22 OR THIS PROCESS IF THAT SYSTEM DOESN'T WORK FOR YOU AND IF
02:16:26 ACCORDING TO YOU KNOW SOME OTHER LIKE INCLUDING EVEN A
02:16:30 FORMER OPEN GOVT EMPLOYEE ARE SAYING HEY CITY COUNTY IN SAN
02:16:34 FRANCISCO YOU ACTUALLY MAY HAVE OTHER OPTIONS OUT THERE THAT
02:16:38 ARE ACTUALLY BETTER FOR YOU. I AM ASKING THE DEPARTMENTS TO
02:16:42 EXPLORE THAT ON YOUR OWN TERM AND AND THAT YOU NEED TO COME
02:16:46 BACK AT LEAST A PLAN I DON'T NEED YOU TO SAY WELL NOW I'M
02:16:49 COMING BACK WITH CLARITY. NO THAT'S NOT WHAT I'M ASKING
02:16:51 FOR OR TO COME BACK TO SAY WELL WELL THEN I GUESS WE CAN
02:16:54 DEFAULT TO WHAT WE HAVE. NO I'M ASKING THEN ARE THERE A
02:16:57 COURSE OF ACTION THEN YOU ARE GOING TO TAKE AS A PLAN SHOULD
02:17:01 OPEN GOV DOES NOT WORK FOR YOU. WHAT ARE YOUR OTHER OPTIONS
02:17:06 LIKE ARE YOU GOING BACK OUT FOR BIT?
02:17:09 >> ARE YOU DO YOU MEAN LIKE JUST A COURSE OF ACTION?
02:17:12 YES THE COURSE OF ACTION THERE WOULD BE AS I MENTIONED I
02:17:16 BELIEVE BY THE END OF THIS CALENDAR YEAR WE'LL HAVE A
02:17:17 SENSE OF WHERE WE'RE HEADED IN THE FUTURE WITH OPEN GO
02:17:20 AND THEN AT THAT POINT TOWARDS THE END OF THE YEAR WE COULD
02:17:23 MAKE AN EVALUATION AND SAY, YOU KNOW, DO WE NEED TO LOOK AT
02:17:25 OTHER ALTERNATIVES IN THE INTERIM PERIOD WE WOULD NEED TO
02:17:28 TRANSITION AND SO WE WOULD FALL BACK TO OUR EXISTING SYSTEM
02:17:31 AND CONTINUE TO MAINTAIN THAT IT WOULD LIKELY BE A SEVERAL
02:17:35 YEAR PROCESS TO HAVE TO UNWIND THE CURRENT WORK WE'VE DONE
02:17:39 WITH OPEN GOV THEN HAVE TO RESEARCH AND PROCURE A NEW
02:17:40 SYSTEM. SO DURING THAT INTERIM PERIOD
02:17:43 WE WOULD FALL BACK TO OUR OUR EXISTING PERMIT SYSTEM.
02:17:47 I MEAN THAT'S A CONCERN. YEAH I MEAN IT REALLY IS
02:17:48 AND AND CAN I JUST SAY THE MOST ALARMING OF OF THIS BECAUSE
02:17:55 CLEARLY I'M NOT THE EXPERTS IN THIS BUT IF THERE ARE
02:17:59 EXPERTS HERE AND THAT'S INCLUDING OUR CITY WORKERS
02:18:02 AND ACCORDING TO THE STANDARD ARTICLE THIS IS THE QUOTE IT
02:18:04 SAYS SET ONE CURRENT EMPLOYEE I THINK SAN FRANCISCO IS FUNDING
02:18:10 THE RESEARCH AND DEVELOPMENT WORK OF OPEN GOV.
02:18:14 I'M NOT INCLINED TO FUND THE RESEARCH AND DEVELOPMENT OF
02:18:18 OPEN GOV. WHAT I'M INCLINED TO FUND IS
02:18:22 THE DEVELOPMENT OF A PERMANENT PERMIT, SAYS PERMITTING SYSTEM
02:18:26 THAT ACTUALLY WORKS FOR SAN FRANCISCANS AND I FRANKLY WANT
02:18:30 IT NOW LIKE I THINK THAT'S THE RIGHT THING TO DO THAT IN FACT
02:18:34 THAT'S WHAT WE'RE SUPPOSED TO DO IS THE REASON WHY WHEN THAT
02:18:37 THE SOLE SOURCE CONTRACT WENT TO OPEN GOV I DID NOT I HAVE
02:18:41 QUESTIONS BUT I WASN'T OPPOSING IT FOR THAT MOMENT BECAUSE SURE
02:18:46 LIKE SHOW US WHAT YOU GOT IF THEY SHOW US THAT ACTUALLY IT
02:18:50 WORKS BUT IF YOU DO NOT SHOW US THAT IT WORKS I'M NOT INCLINED
02:18:54 TO SUPPORT IT AND NOT UNTIL THAT IT'S BEING SHOWN THAT TOOL
02:18:57 TO WORK. SO OF COURSE IT'S A SEPARATE
02:19:01 CONVERSATION BUT IT CERTAINLY IS A BUDGET CONVERSATION TODAY.
02:19:05 IT MAY BE A CONTRACT CONVERSATION IN JUNE OR JULY
02:19:08 BUT I JUST WANT TO BE TRANSPARENT AND UPFRONT ABOUT
02:19:12 WHERE I'M STANDING. >> THANK YOU CHAIR AND I
02:19:15 BELIEVE YOUR COMMENTARY WILL HELP US MOVE TO A BETTER PLACE.
02:19:17 >> SO I APPRECIATE THE COMMENTS I AND I WANT TO RECOGNIZE THE
02:19:20 FACT THAT YOU JUST STEPPED INTO THIS ROLE AND WHAT YOU WERE NOT
02:19:24 HERE ALL ALONG. SO I REALLY DO APPRECIATE YOU,
02:19:27 DR. KING, AND THANK YOU SO MUCH FOR YOUR WORK.
02:19:31 >> THANK YOU. I DON'T SEE ANY OTHER NAME ON
02:19:32 THE ROSTER AND I APPRECIATE BOTH OF THE DEPARTMENT OF
02:19:35 BUILDINGS INSPECTION AND THANK YOU DIRECTOR SARAH DENNIS
02:19:39 PHILLIPS AS WELL FOR YOUR PRESENTATION.
02:19:42 >> AND WITH THAT WE'LL MOVE ON TO SUPPORT.
02:20:10 GOOD AFTERNOON CHAIR CHAN AND COMMITTEE MEMBERS WHILE
02:20:12 WE'RE GETTING THE SLIDES SET UP I WANTED TO MAKE A FEW OPENING
02:20:15 REMARKS. FIRST ONE EXPECTS SOME OF
02:20:17 APPRECIATION STARTING WITH THE WATERFRONT SUPERVISORS ON THE
02:20:21 COMMITTEE SUPERVISORS DORSEY SOUDER AND WALTON.
02:20:22 WE REALLY APPRECIATE YOUR PARTNERSHIP AND YOUR
02:20:25 STEWARDSHIP AND SUPPORT FOR YOUR WATERFRONT DISTRICT IS A
02:20:29 HUGE FOUNDATION FOR OUR SUCCESS SO I JUST WANTED TO EXPRESS
02:20:32 THAT TO START IN TERMS OF THE BUDGET SUBMISSION BEFORE YOU I
02:20:36 WANT TO THANK MAYOR LEARY, BUDGET DIRECTOR SOPHIA KETTLER
02:20:39 AS WELL AS OUR BUDGET ANALYST LUISA KOY FOR PUTTING THINGS
02:20:41 TOGETHER IN A WAY THAT WE'RE EXCITED TO MOVE FORWARD WITH
02:20:44 YOU TODAY. I WILL ASK OUR DEPUTY DIRECTOR
02:20:48 OF FINANCE AND ADMINISTRATION MEGAN WALLACE TO STEP UP HERE
02:20:51 IN A MOMENT TO GO THROUGH THE DETAILS BUT I WANTED TO SHARE A
02:20:52 COUPLE FRAMING COMMENTS THAT REALLY I THINK HAVE GUIDED US
02:20:55 AS WE PUT TOGETHER THIS BUDGET. THE FIRST IS THE PORT IS VERY
02:21:02 GLAD TO SEE THAT OVER THE PAST COUPLE OF FISCAL YEARS OUR
02:21:03 REVENUES HAVE REBOUNDED FROM THE PANDEMIC AND ACTUALLY
02:21:06 EXCEED OUR PRE-PANDEMIC REVENUES.
02:21:09 SO AS AN ENTERPRISE DEPARTMENT WHERE OUR OPERATIONS ARE FUNDED
02:21:11 FROM THOSE REVENUES, THAT IS A GOOD SIGN.
02:21:14 YOU KNOW WE FEEL LIKE WE'RE PART OF THE LEADING EDGE OF THE
02:21:17 RECOVERY OF SAN FRANCISCO AND IT'S REALLY HELPING US GET
02:21:18 OUR FOOTING AND TRYING TO LOOK TOWARDS THE FUTURE.
02:21:22 HOWEVER, THAT DYNAMIC IS IS NOW ACCOMPANIED BY PROJECTIONS THAT
02:21:25 SHOW OUR EXPENDITURES ACTUALLY RISING AT A GREATER RATE THAN
02:21:29 OUR ADMITTEDLY CONSERVATIVE REVENUE PROJECTIONS THAT THAT
02:21:32 DELTA BETWEEN THOSE TWO THOSE NET REVENUES IS REALLY WHERE WE
02:21:36 FUND OUR CAPITAL WORK, OUR IMPROVEMENTS TO OUR PROPERTY,
02:21:38 OUR INVESTMENTS TO REALLY DRIVE OUR PORTFOLIO FORWARD.
02:21:42 AND SO THAT IS SOMETHING WE REALLY TAKE SERIOUSLY AND WE
02:21:43 KNOW THAT WE HAVE TO DRIVE THOSE REVENUES AND BEAT THOSE
02:21:46 PROJECTIONS RELATED TO THAT. I THINK WE'RE SEEING A LOT OF
02:21:53 INVESTMENT INTEREST THROUGHOUT OUR PROPERTY FROM NORTH TO
02:21:54 SOUTH. I THINK IT IS PART OF THE GREEN
02:21:58 SHOOTS THAT WE'RE ALL SEEING IN SAN FRANCISCO BUT IT'S
02:22:00 SOMETHING THAT WE KNOW WE HAVE TO TAKE ADVANTAGE OF THIS
02:22:02 AND CONVERT THOSE OPPORTUNITIES TO US.
02:22:05 AND SO ONE THING I'VE REALLY EMPHASIZED TO OUR TEAM IS THAT
02:22:07 WE NEED TO BE GREAT PARTNERS. WE NEED TO BE GREAT PARTNERS
02:22:09 WITH OUR TENANTS. WE NEED TO BE GREAT PARTNERS
02:22:13 WITH OUR DEVELOPMENT PARTNERS. WE NEED TO BE GREAT PARTNERS
02:22:16 WITH THIS BUILDING WITH THE BOARD OF SUPERVISORS AND WITH
02:22:18 THE MAYOR, THE MAYOR WE NEED TO BE GREAT PARTNERS WITH OUR
02:22:20 COMMUNITY BENEFIT DISTRICTS LIKE THOSE ARE THE WAYS WE
02:22:23 CREATE THE CONDITIONS FOR INVESTMENT THAT ARE GOING TO
02:22:25 ALLOW US TO CONVERT THOSE OPPORTUNITIES AND I THINK IT'S
02:22:27 SUPER IMPORTANT FOR US TO REALIZE THAT WE'RE A 24 SEVEN
02:22:33 PORT. PEOPLE COME DOWN, OUR
02:22:34 BUSINESSES ARE OPEN ALL THE TIME ON THE WATER SIDE AND THE
02:22:38 LAND SIDE AND SO TO PLACES WE'RE INVESTING, YOU KNOW
02:22:41 AND OBVIOUSLY THAT'S DRIVING THE EXPENDITURE.
02:22:42 PART OF WHAT I JUST SAID IS IN PUBLIC SAFETY
02:22:45 AND CLEANLINESS OVERNIGHT SO THAT WE CAN BE A PORT THAT IS
02:22:50 WELCOMING THAT PEOPLE CAN COME TO TO BE A PART OF THE WORKING
02:22:53 WATERFRONT, PART OF THE RECREATIONAL WATERFRONT, PART
02:22:55 OF TOURISM AND THEY CAN SEE THAT THE WATERFRONT IS A PLACE
02:22:58 THEY WANT TO BE. SO WITH THAT I'D LIKE TO HAND
02:23:01 IT OFF TO MEGAN TO TALK THROUGH HOW WE'RE GOING TO TAILOR OUR
02:23:03 BUDGET TO TRY TO MEET THOSE GOALS AND I'M GOING TO BE HAPPY
02:23:06 TO JOIN MEGAN IN ANSWERING ANY QUESTIONS.
02:23:08 >> THANK YOU. THANK YOU, MIKE.
02:23:12 GOOD AFTERNOON, SUPERVISORS. I'M GOING TO BRIEFLY WALK YOU
02:23:15 THROUGH THE PORT'S OPERATING BUDGET A PROPOSED BUDGET FOR
02:23:19 FISCAL YEAR 2000 26 2720 2728. >> BEFORE I GO TOO FAR, I JUST
02:23:23 WANT TO REMIND EVERYBODY THAT THE PORT MANAGER IS SEVEN AND A
02:23:26 HALF MILES OF WATERFRONT REALLY SOME OF THE MOST ICONIC PUBLIC
02:23:30 ASSETS ALONG IN OUR CITY. OUR MISSION IS TO ADVANCE
02:23:33 ENVIRONMENTALLY AND FINANCIALLY SUSTAINABLE MARITIME,
02:23:37 RECREATIONAL AND ECONOMIC OPPORTUNITIES THAT SERVE SAN
02:23:40 FRANCISCO, THE REGION AND CALIFORNIA MORE BROADLY.
02:23:45 AND THAT DOES MEAN BALANCING MANY RESPONSIBILITIES AT ONCE.
02:23:46 WE HAVE OVER 500 LEASEHOLDS ACROSS OUR REAL ESTATE
02:23:52 AND MARITIME PORTFOLIOS AND ALL OF THESE REQUIREMENTS AS MIKE
02:23:56 HAD INDICATED, WE REALLY RELY HEAVILY ON OUR PARTNERSHIPS.
02:24:03 >> BEFORE I GET INTO THE BUDGET I ALSO WANT TO JUST HIGHLIGHT
02:24:05 THE ECONOMIC VALUE THAT IS DERIVED BY THE WATERFRONT.
02:24:11 WE DO REPRESENT THE GATEWAY INTO THE CITY.
02:24:14 >> YOU KNOW WE DO DRAW IN THOUSANDS OF JOBS
02:24:16 HOSPITALITY, RETAIL AND TOURISM THROUGH THE WORK OF OUR TENANTS
02:24:22 . CRUISE OPERATIONS WE ESTIMATE
02:24:23 GENERATE APPROXIMATELY $1 MILLION PER CALL AND JUST
02:24:28 NOTABLY THROUGH ALL OF THIS WORTH WORK SALES TAX,
02:24:30 POSSESSORY INTEREST TAX ALL DIRECTLY SUPPORT THE GENERAL
02:24:33 FUND. NOTABLY WE'RE ALSO ADVOCATING
02:24:37 AND MOVING FORWARD WITH OUR WORK ON OUR SHORELINE
02:24:40 RESILIENCE WORK IN PARTNERSHIP WITH OTHER CITY DEPARTMENTS
02:24:43 RECOGNIZING THAT WE'RE PROTECTING BILLIONS OF DOLLARS
02:24:45 OF ASSETS INLAND FROM OUR SHORELINE.
02:24:48 >> WHEN IT COMES TO THE BUDGET NOTABLY THE HARBOR FUND IS AN
02:24:53 ENTERPRISE FUND SO ALL OF OUR REVENUES ARE GENERATED DIRECTLY
02:24:57 FROM OUR OUR ACTIVITIES AND INVESTED BACK INTO OUR
02:25:00 MARITIME AND REAL ESTATE PORTFOLIOS.
02:25:07 AND WE DO INCLUDE ABOUT $40 MILLION OF WORK ORDERS WITHIN
02:25:11 OUR BUDGET BETWEEN OUR RISK MANAGEMENT YOU KNOW, PROPERTY
02:25:14 INSURANCE, FIRE BOAT INVESTMENTS WORKING WITH CITY
02:25:17 ATTORNEY. SO YOU WILL SEE THE PORT'S
02:25:21 CONTRIBUTIONS WITHIN THE LARGER BUDGET OUR PER PRIORITIES ARE
02:25:28 FOCUSED ON CONTINUING TO BE MAINTAINING A SAFE, CLEAN
02:25:33 AND VIBRANT WATERFRONT. ONE IMPORTANT INVESTMENT
02:25:34 IN THIS BUDGET IS STRENGTHENING STAFFING IN OUR MAINTENANCE
02:25:37 DIVISION SO WE CAN BETTER SUPPORT DAY TO DAY CLEANING
02:25:40 AND UPKEEP. AS MIKE HAD INDICATED, WE WANT
02:25:43 TO BE A 24 SEVEN PORT. WE ARE CONTINUING MODERNIZATION
02:25:46 EFFORTS WHERE WE ARE PARTNERS IN THE PERMITTING ACTIVITIES
02:25:50 BUT WE ARE ALSO INVESTING IN OUR OWN SYSTEMS RELATED TO
02:25:55 ASSET MANAGEMENT AND PROPERTY MANAGEMENT.
02:25:58 ALL OF OUR ACTIVITIES AROUND DEVELOPMENT PIER 70, MISSION
02:26:03 ROCK 32 AND SEAWALL LOT 330 ARE OF COURSE CRITICAL FOR LOOKING
02:26:10 AT THE FUTURE OF HOUSING, JOBS AND OTHER ACTIVITIES ALONG THE
02:26:13 WATERFRONT. AND THEN JUST THINKING ABOUT
02:26:20 ANOTHER MAJOR FOCUS IN OUR BUDGET IS PROTECTING OUR ASSETS
02:26:24 AND PREPARING THE WATERFRONT FOR THE FUTURE.
02:26:25 MUCH OF THE PORT'S INFRASTRUCTURE IS AGING
02:26:28 AND INCREASINGLY VULNERABLE TO FLOOD AND SEISMIC RISKS.
02:26:32 ACCORDINGLY, THE PORT'S CAPITAL IMPROVEMENT PROGRAM PRIORITIZES
02:26:35 STATE OF GOOD REPAIR INVESTMENTS, RESILIENCE
02:26:36 INTEGRATION AND RISK REDUCTION. AS THE SUPERVISORS MAY RECALL,
02:26:43 THAT DOES INCLUDE INVESTMENTS IN REMOVAL AND DISPOSAL OF OUR
02:26:45 DRY DOCKS AND IN THE SOUTHERN WATERFRONT AS WELL AS
02:26:51 IMPROVEMENTS TO OUR FACILITIES TO MAINTAIN MAKE SURE THAT WE
02:26:52 ARE RETAINING OUR REVENUES. >> BUT THE BUDGET ALSO ADVANCES
02:26:58 SUSTAINABILITY PRIORITIES SUCH AS THROUGH ZERO EMISSION FLEET
02:27:00 TRANSITION EFFORTS AND WATER QUALITY IMPROVEMENTS
02:27:04 AND BIODIVERSITY. AND WE DO CONTINUE TO
02:27:07 PRIORITIZE COMMUNITY ENGAGEMENT, PUBLIC ACCESS,
02:27:10 WORKFORCE DEVELOPMENT AND OTHER ACTIVITIES AROUND OUR
02:27:15 STEWARDSHIP RESPONSIBILITIES. >> SO GETTING INTO OUR BUDGET
02:27:22 THE FIRST YEAR OF THE BUDGET IS APPROXIMATELY $234 MILLION.
02:27:25 THIS INCLUDES 129 MILLION FOR OUR OPERATING INVESTMENTS
02:27:32 AND 86.5 MILLION FOR CAPITAL. >> THAT LEAVES JUST OVER A $19
02:27:36 MILLION NET OPERATING INCOME. SO IF YOU LOOK AT THE YOU KNOW
02:27:40 IN THE PROPOSED BUDGET THAT DISTANCE BETWEEN THE REVENUES
02:27:43 THAT WE'RE GENERATING AND THE EXPENDITURES IN OUR BUDGET
02:27:48 REPRESENTS THE AMOUNT THAT WE AS A AS AN ORGANIZATION PUT
02:27:52 AWAY. IT'S IN OUR BUDGET TO DEDICATE
02:27:55 TO FUTURE CAPITAL IMPROVEMENTS IN THE FOLLOWING YEAR.
02:27:59 YOU CAN SEE THAT OUR OVERALL BUDGET DECLINES TO $188
02:28:03 MILLION. THAT'S TAKING INTO ACCOUNT
02:28:07 ESCALATION WITHIN OUR OPERATING BUDGET.
02:28:10 SO THE COSTS OF PERSONNEL AND NON PERSONNEL EXPENSES ALL
02:28:15 CONTINUE TO GROW AND ESCALATE. BUT WE REDUCED OUR INVESTMENT
02:28:18 IN CAPITAL JUST BECAUSE IN THE FIRST YEAR OF THE BUDGET WE
02:28:20 DREW DOWN A SIGNIFICANT AMOUNT OF FUND BALANCE TO ADDRESS
02:28:23 SIGNIFICANT ONETIME NEEDS. >> BUT OVERALL JUST REALLY WANT
02:28:27 TO MAKE SURE THE SUPERVISORS AND THE PUBLIC ARE AWARE OF THE
02:28:31 PORTS ONGOING FINANCIAL MANAGEMENT REALLY TRYING TO
02:28:35 ENSURE THAT WE'RE MAXIMIZING OUR NET OPERATING INCOME
02:28:39 BECAUSE IT'S SO CRITICAL TO SUPPORTING OUR CAPITAL PROGRAM
02:28:42 WHICH INCLUDES A $1.9 BILLION DEFERRED MAINTENANCE NEED
02:28:46 WITHIN OUR TEN YEAR CAPITAL PLAN.
02:28:49 >> I WON'T SPEND A LOT OF TIME ON OUR ORG STRUCTURE.
02:28:53 I JUST WANT TO, YOU KNOW, RECOGNIZE HOW VAST THE NEEDS
02:28:57 ARE OF THE SERVICES THAT WE PROVIDE AT THE PORT.
02:29:00 YOU CAN SEE THAT YOU KNOW, LOOKING AT THE EXECUTIVE
02:29:04 DIVISION ALL THE WAY FINANCE AND ADMINISTRATION REAL ESTATE
02:29:08 ,MARITIME PLANNING AND ENVIRONMENT ENGINEERING
02:29:09 MAINTENANCE WE BASICALLY ARE OPERATING AS A SMALL CITY ALONG
02:29:15 OUR WATERFRONT. AND IT REQUIRES A SIGNIFICANT
02:29:16 AMOUNT OF ENGAGEMENT ACROSS DIVISIONS AND COORDINATION OF
02:29:23 OUR EFFORTS. AND TODAY WE HAVE APPROXIMATELY
02:29:27 288 OF THESE REPRESENTED AND OUR STAFF WE ARE PROPOSING
02:29:32 TO CONTINUE TO FILL POSITIONS. CURRENTLY WE HAVE 306 POSITIONS
02:29:38 BUDGETED AND WE ARE PROPOSING AN INCREASE OF TEN MORE.
02:29:42 OH I MISSPOKE. SORRY.
02:29:43 WE HAVE 307 BUDGETED FEES AND WE'RE REQUESTING TO
02:29:49 INCREASE THAT TO 317. AND JUST TO PUT THAT INTO
02:29:55 PERSPECTIVE, WANTING TO HIGHLIGHT THE TRENDS AROUND OUR
02:29:57 BUDGETED STAFF AS WELL AS OUR FILLED STAFF, YOU CAN SEE THAT
02:30:00 WE MUCH LIKE OUR BUDGETED REVENUES AND EXPENDITURES WE'VE
02:30:03 CONSISTENTLY CARRIED A DIFFERENT SIGNIFICANT
02:30:07 DIFFERENCE BETWEEN WHAT WE HAVE THE AUTHORITY FOR IN TERMS OF
02:30:11 STAFFING AND WHAT WE'VE ACTUALLY FILLED AND GOING
02:30:14 THROUGH THE PANDEMIC YOU CAN SEE THAT WE SAW A DECLINE
02:30:18 IN OUR OVERALL STAFFING JUST AS WE WERE TRYING TO ATTRACT OUR
02:30:22 RESOURCES TO ACCOMMODATE YOU KNOW, DECLINES IN OUR REVENUES.
02:30:27 BUT NOW AS WE'RE COMING UP OUT OF THE PANDEMIC SEEING STRONG
02:30:31 ECONOMIC RECOVERY, THE PORTS REQUEST TO INCREASE OUR FTE IS
02:30:34 REALLY REFLECTS THE GROWING OPERATIONS AND EFFORT THAT
02:30:38 WE'RE MAKING TO SUPPORT HAVING A SAFE, CLEAN AND VIBRANT
02:30:42 WATERFRONT. SO THANK YOU SO MUCH FOR YOUR
02:30:46 TIME AND WELCOME ANY QUESTIONS? >> THANK YOU.
02:30:49 AND SUPERVISOR SAUTER, THANK YOU FOR THE PRESENTATION AND I
02:30:53 JUST WANT TO EXPRESS MY APPRECIATION FOR PARTNERSHIP
02:31:00 WITH OUR OFFICE PARTICULARLY ON ON FISHERMAN'S WHARF AND ALL
02:31:04 ALONG THE WATERFRONT. THINGS ARE LOOKING BETTER AND I
02:31:11 THINK THEY'RE HEADED IN THE RIGHT DIRECTION.
02:31:13 I WAS AT THE WHARF LAST NIGHT I WAS VISITING.
02:31:16 I TOOK MY NIECE TO MUSEUM MÉCANIQUE SO IT WAS A GOOD
02:31:20 EVENING AND YOU KNOW, LOOKING AT YOUR PRIORITIES I WAS REALLY
02:31:24 HAPPY TO SEE THE FOCUS ON ON CLEAN AND SAFE AND MAINTENANCE.
02:31:32 I MEAN THOSE ARE THE THINGS THAT WE HEAR ABOUT MOST
02:31:33 IN PARTICULAR AND I THINK YOU'RE DOING A FANTASTIC JOB ON
02:31:36 MAINTENANCE. YOU'RE DOING A LOT OF THAT
02:31:37 IN PARTNERSHIP WITH THE FISHERMAN'S WHARF CBD ON SAFETY
02:31:43 ON THE SAFETY SIDE, I WANT TO PARTICULARLY APPRECIATE YOUR
02:31:45 WORK THERE. WE'VE HAD A LOT COME THROUGH
02:31:48 OUR OFFICE IN TERMS OF THE ILLEGAL VENDING ALONG THE
02:31:51 WATERFRONT AND SOME OF THAT IS A PERMITTING OUTREACH BUT SOME
02:31:58 OF THAT IS A SAFETY OUTREACH. ADDITIONALLY WE'VE HAD A LOT OF
02:32:02 FOCUS AND NEED ON ON SIDESHOWS ALONG THE WATERFRONT AND ON
02:32:06 SOME OF THAT ACTIVITY BOTH ON THE EMBARCADERO BUT IN THE PORT
02:32:10 PROPERTY PARTICULARLY PIER 27. AND YOUR RESPONSE HAS BEEN
02:32:13 FANTASTIC ON THAT. SO I WANT TO ACKNOWLEDGE THAT
02:32:17 AND APPRECIATE THE FOCUS ON THAT AND I WANT TO SEE THAT
02:32:18 CONTINUE. >> THANKS.
02:32:22 THANK YOU. AND VICE CHAIR DORSEY THANK YOU
02:32:26 CHAIR CHAN I'M GLAD SUPERVISOR SAUTER BROUGHT IT UP BECAUSE I
02:32:30 DO THINK THAT WHAT YOU MENTIONED ABOUT PARTNERSHIPS
02:32:34 AND SECURITY IS IMPORTANT. ONE THING THAT I HEAR FROM A
02:32:36 LOT OF WATERFRONT BUSINESSES ESPECIALLY AROUND THE BALLPARK
02:32:42 IS THEY'RE THEY'RE BEING UNDERCUT BY ILLEGAL VENDING
02:32:46 IN SOME CASES JUST FULL ON BARS THING.
02:32:47 YOU KNOW, LIKE PEOPLE OPERATING OUT OF CARS AND VEHICLES.
02:32:51 I DON'T KNOW IF THERE'S IF YOU CAN SPEAK TO ANY OF YOUR
02:32:55 INVOLVEMENT IN THE PORT ENFORCEMENT AROUND ILLEGAL
02:32:58 VENDING I KNOW THIS IS SOMETHING THAT IT SEEMS TO ME
02:33:02 THIS I THINK ABC IS INVOLVED IN IT AS A PD IS INVOLVED
02:33:06 IN IT. I THINK THERE'S WHEN IT'S SOME
02:33:09 KINDS OF CARTS AND I KNOW THAT YOU HAVE A ROLE TO PLAY
02:33:10 IN THAT. SO IF YOU COULD HELP ME
02:33:11 UNDERSTAND HOW THAT PLAYS OUT. BUT I DO KNOW I WILL SAY THIS
02:33:17 IT IS FOR BUSINESSES THAT REALLY NEED TO DO WELL WHEN THE
02:33:22 BALL GAMES ARE THERE IT'S REALLY DISPIRITING FOR THEM TO
02:33:25 SEE WHAT THE CITY SEEMS TO TOLERATE SOMETIMES IN TERMS OF
02:33:29 ILLEGAL VENDING. >> SO IT'S A IT'S A REALLY
02:33:32 GREAT POINT AND I APPRECIATE THAT YOU HIGHLIGHTED THAT IT IT
02:33:35 IS A CHALLENGE THAT IS FACED BY THE FACT THAT THE ENFORCEMENT
02:33:40 ABILITIES ARE SPREAD A BUNCH A BUNCH OF AROUND A BUNCH OF
02:33:43 DIFFERENT AGENCIES FOR THE ALCOHOL YOU HAVE YOU KNOW THE
02:33:44 POLICE DEPARTMENT AND LAW ENFORCEMENT AND ABC FOR VENDING
02:33:48 PUBLIC WORKS IS THE CITY'S ENFORCER FOR PUBLIC FOR HOTDOG
02:33:51 CARTS. IT'S PUBLIC HEALTH ARE SO IN SO
02:33:54 FAR AS ORACLE PARK IS ON OUR PROPERTY OUR SECURITY TEAM HAS
02:33:59 TAKEN THE LEAD IN ORGANIZING WHAT WE CALL THE VENDING
02:34:02 ENFORCEMENT TASK FORCE TO BRING ALL OF THOSE ENFORCEMENT
02:34:04 AGENCIES TOGETHER IN ONE GROUP AND WE DEPLOYED IT OVER 50
02:34:10 EVENTS AND BASEBALL GAMES LAST YEAR.
02:34:11 THAT IS NOT AN EASY SCHEDULING EFFORT AND OBVIOUSLY IT'S A
02:34:17 IT'S A SITUATION WHERE IT IS A VERY DIRECT MOMENT WHERE THAT
02:34:21 TEAM MOVES AROUND AND IS ABLE TO ADDRESS OR DISCOURAGE THAT
02:34:25 ACTIVITY. BUT IT MAY BE HAPPENING ON THE
02:34:26 OTHER SIDE OF THE BALLPARK. SO WE'RE NOT RESTING ON THOSE
02:34:29 LAURELS. WE KNOW WE WANT TO DO MORE
02:34:30 BECAUSE WE WANT THOSE EXPERIENCES TO BE GREAT.
02:34:33 IT'S ONE OF THE GREAT WAYS WE GET PEOPLE TO COME TO OUR CITY
02:34:36 AND WE'RE VERY MINDFUL OF THOSE BUSINESSES EVEN WHEN THEY'RE
02:34:38 NOT ON POOR PROPERTY BECAUSE THAT'S PART OF THE VIBRANCE OF
02:34:40 THE WATERFRONT TOO. SO I WOULD SAY IT'S A WORK
02:34:44 IN PROGRESS AND SOME OF THE CHALLENGES FROM STATE LAW ARE
02:34:46 THINGS WE'RE STILL MANAGING OUR WAY THROUGH BUT WE'RE REALLY
02:34:49 APPRECIATIVE OF THE PARTNERSHIP THAT WE'VE HAD FROM THOSE
02:34:52 AGENCIES AND I THINK OUR SECURITY TEAM JUST WANTS TO
02:34:55 CONTINUE TO GROW THAT EFFORT INCLUDING IN ORACLE PARK WHICH
02:34:57 ALSO IS NOT ON OUR PROPERTY BUT WE ARE VERY MUCH PART OF THOSE
02:35:00 EFFORTS AS WELL. SO I KNOW IN MY DISTRICT EVEN
02:35:07 DURING MY TIME YOU KNOW MY THIS MY FIRST FOUR YEARS ON THE
02:35:10 BOARD YOU KNOW WE HAVE HAD THE THE RESIDENTIAL COMMUNITY
02:35:14 IN MISSION BAY IS GROWING MISSION ROCK HAS COME ONLINE WE
02:35:18 ARE WE'RE GETTING I MEAN WE GET COMPLIMENTS FROM I HEAR
02:35:22 COMPLIMENTS ABOUT THE PORT FOLKS AND THE THE MAINTENANCE
02:35:26 AND SECURITY THAT YOU DO PROVIDE.
02:35:29 >> BUT WE ALSO GET REPORTS ON STREET CONDITION ISSUES THAT
02:35:33 ARE PLAYING OUT THERE AND I THINK THIS IS MORE A FUNCTION
02:35:37 OF THIS BECOMING A MORE POPULATED NEIGHBORHOOD.
02:35:40 >> BUT IF YOU COULD ADDRESS ANY THOUGHTS ON WHERE WE'RE GOING
02:35:44 TO BE AS THE NEIGHBORHOOD CONTINUES TO GROW AND WHAT'S
02:35:47 WHAT YOU'LL NEED ONE THING I'M LOOKING FOR IS IS THE FUTURE
02:35:51 PHASES OF MISSION ROCK IN PARTICULAR BECAUSE RIGHT NOW
02:35:55 A LOT HERE WHICH IS AN IMPORTANT PARKING RESOURCE IS
02:35:56 KIND OF A DEAD ZONE AND I THINK IT'S THE CLASSIC EYES ON THE
02:36:00 PARK MOMENT THAT ONCE THAT PROJECT IS FULLY REALIZED I
02:36:03 THINK IT BECOMES A LINK IN HAVING THE POPULATION THERE.
02:36:07 IT DRIVES MORE REVENUES INTO THE DEVELOPMENT WHICH IS
02:36:11 ACTUALLY FUNDING A LOT OF ITS OWN MAINTENANCE ON ITS STREETS
02:36:14 AND PARKS. BUT IN THE MEANTIME WE'VE GOT
02:36:15 TO STEP INTO THAT AND IT'S SOMETHING WHERE WE DO NEED TO
02:36:19 PARTNER WITH MISSION ROCK PARTNERS AND THE GIANTS
02:36:22 ESPECIALLY ON CHINA BASIN PARK AND ON THE THINGS THAT HAPPEN
02:36:25 IN THAT GENERAL VICINITY AS YOU MOVE SOUTH YOU KNOW YOU HAVE
02:36:27 THE SORT OF BOOMING MISSION ROCK MISSION BAY NEIGHBORHOOD
02:36:31 EXCUSE ME WHICH HAS ITS CHALLENGES AS WELL.
02:36:35 BUT OBVIOUSLY WE WANT TO BE GOOD PARTNERS AS WELL AS THE
02:36:38 SORT OF THE DIFFERENT PARKS AND DIFFERENT THINGS STILL COME
02:36:40 OUT OF THAT PROJECT THAT ARE STILL BEING DELIVERED.
02:36:42 SO YOU KNOW, I THINK THE CHALLENGE FOR US IS ALWAYS, YOU
02:36:47 KNOW, GOOD COORDINATION. WE'RE NOT THE ENFORCERS
02:36:51 OURSELVES BUT WE HAVE A A REALLY STRONG SECURITY TEAM
02:36:53 BOTH IN THE DAYTIME AND AS PART OF THIS BUDGET WE WANT TO HAVE
02:36:55 THAT NIGHT SECURITY TEAM THAT CAN REALLY BE THE COORDINATOR
02:36:59 AND AND SORT OF COMMUNICATED TO MAKE SURE STRATEGY
02:37:02 AND ENFORCEMENT ACTIONS ARE HAPPENING IN A TIMELY WAY SO
02:37:06 THAT WE'RE NOT WAITING TO THE NEXT MORNING TO FIND OUT WHAT
02:37:08 HAPPENED. BUT WE'RE ACTUALLY GETTING
02:37:10 AFTER IT RIGHT WHEN IT HAPPENS. >> OKAY.
02:37:11 OKAY. I APPRECIATE IT.
02:37:12 THANKS. THANK YOU.
02:37:14 AND SO WITH THAT I DON'T HAVE ANY ADDITIONAL QUESTIONS.
02:37:18 I APPRECIATE YOUR WORK AND WE WILL GO TO A APAC
02:38:00 . >> GOOD AFTERNOON SUPERVISORS
02:38:01 DENNIS HERRERA, THE GENERAL MANAGER OF THE PUBLIC UTILITIES
02:38:05 COMMISSION A PLEASURE TO BE BEFORE YOU TODAY AND NUMBER
02:38:09 ONE, THANK YOU FOR YOUR SERVICE AND DOING A WONDERFUL JOB AT
02:38:12 RUNNING A VERY EFFICIENT AND QUICK FINANCE COMMITTEE
02:38:16 MEETING TODAY SO SUPERVISOR CHAN, THANK YOU SO MUCH
02:38:20 AND THANK YOU TO THE ENTIRETY OF THE MAYOR'S BUDGET STAFF
02:38:27 SOPHIE AND HER TEAM. >> WE CAN'T TELL YOU HOW MUCH
02:38:28 WE APPRECIATE ALL THE WORK THAT YOU'VE DONE WITH US HELPING US
02:38:34 GET TO WHERE WE ARE TODAY. >> SO IT'S OUR PLEASURE TO BE
02:38:38 WITH YOU HERE TODAY AND I KNOW THAT MANY OF YOU ALL OF YOU ARE
02:38:42 AWARE OF WHAT THE PUC DOES DELIVERING THREE ESSENTIAL 24
02:38:45 SEVEN SERVICES WHEN IT COMES TO WATER WASTEWATER AND POWER
02:38:49 SERVICES ON THE RETAIL BASIS HERE IN THE CITY AND COUNTY OF
02:38:53 SAN FRANCISCO BUT ALSO FOR THE 2.7 MILLION OTHER RESIDENTS OF
02:39:00 THE BAY AREA THAT WE SERVE THROUGH OUR WHOLESALE WATER
02:39:01 SERVICE AS WELL ALL THE TIME TRYING TO MAKE SURE THAT WE ARE
02:39:06 BEING GOOD STEWARDS OF THE ENVIRONMENT AND PROTECTING
02:39:08 PUBLIC HEALTH AND THE SAN FRANCISCO BAY MORE GENERALLY.
02:39:11 HERE'S A LOOK AT OUR AGENCY WHICH I KNOW MANY OF YOU ARE
02:39:14 AWARE IS POWERED BY 2500 OF THE MOST DEDICATED PUBLIC SERVANTS
02:39:19 THAT YOU WOULD FIND ANYWHERE HOUSED ACROSS OUR THREE
02:39:25 ENTERPRISES AND MULTIPLE BUREAUS THAT SUPPORT THEM
02:39:29 AND THAT ARE NOT JUST HERE IN THE CITY AND COUNTY OF SAN
02:39:30 FRANCISCO BUT RANGE ACROSS THE STREET THE STATE ALL THE WAY UP
02:39:34 TO 160 MILES AWAY IN SEMI NATIONAL PARK TODAY WE'RE HERE
02:39:40 TO TALK ABOUT OUR BUDGET AND OUR CAPITAL PROPOSAL FOR
02:39:43 THE NEXT TWO FISCAL YEARS WHICH IS IN THE WHICH IS THE FINAL
02:39:47 STAGE IN A LONG AND RIGOROUS PROCESS THAT STARTED OVER A
02:39:50 YEAR AGO. >> OUR PRIORITIES FOR THIS
02:39:51 BUDGET REFLECT THE COMMITMENTS THAT ARE LISTED HERE.
02:39:55 THEY INCLUDE BEING RESPONSIVE TO THE MAYOR'S INSTRUCTIONS TO
02:39:59 FOCUS ON CORE OPERATIONAL SERVICES AND WE MEASURE THOSE
02:40:02 THROUGH OUR LEVEL OF SERVICE GOALS SET AT EACH ENTERPRISE.
02:40:06 >> AT THE SAME TIME WE HAVE RESPONSIBILITIES TO OUR
02:40:10 RATEPAYERS TO MAINTAIN LONG TERM FINANCIAL SUSTAINABILITY
02:40:14 I.E. TO BE STEWARDS OF THE RESOURCES IN OUR CARE WHILE
02:40:15 CONTINUING TO LEAD THE CLEAN ENERGY TRANSITION.
02:40:19 AND FINALLY WE WANT TO ENSURE THAT WE ARE INVESTING IN OUR
02:40:22 WORKFORCE AND THE COMMUNITIES THAT WE SERVE.
02:40:26 >> THIS BUDGET STRIVES TO BALANCE THOSE COMMITMENTS
02:40:29 IN THE FACE OF MAJOR CHALLENGES INCLUDING THE NEED FOR CRITICAL
02:40:33 UPGRADES, HIGH CONSTRUCTION COSTS, COMPLEX REGULATORY
02:40:37 OBLIGATIONS AND UNFORTUNATELY A LACK OF FEDERAL SUPPORT THAT I
02:40:41 KNOW THAT MANY OF MY COLLEAGUES ACROSS THE CITY ARE ALSO
02:40:44 SUFFERING FROM IN THEIR DEPARTMENTS FOR THE DETAILS I'M
02:40:49 GOING TO TURN THIS OVER TO OUR BUDGET DIRECTOR AND ARE DOING
02:40:52 AND I'M HAPPY TO TAKE ANY QUESTIONS THAT YOU MIGHT HAVE
02:40:54 AFTER HER PRESENTATION. >> AND THANKS VERY MUCH.
02:40:57 ALL RIGHT. GOOD AFTERNOON.
02:41:02 AND BUDGETARY CHANNELS, SUPERVISORS AND MEMBERS OF THE
02:41:03 BUDGET AND APPROPRIATIONS COMMITTEE I'M IN A DOING THE
02:41:06 BUDGET DIRECTOR AT THE SFP YOU SEE SO THEY'RE ACTUALLY GOING
02:41:09 TO BE TWO BUDGETARY ORDINANCES FOR YOUR CONSIDERATION OUR
02:41:13 OPERATING BUDGET WHICH IS PART OF THE AOE OR THE MAYOR'S
02:41:14 PROPOSED BUDGET AS WELL AS OUR CAPITAL BUDGET WHICH WILL BE
02:41:18 PRESENTED AS A SEPARATE SUPPLEMENTAL NEXT WEEK.
02:41:21 OUR OPERATING BUDGET IS FUNDED ALMOST ENTIRELY BY RATEPAYER
02:41:25 REVENUES. MEANWHILE OUR CAPITAL BUDGET IS
02:41:26 FUNDED BY A COMBINATION OF OPERATING REVENUES AS WELL AS
02:41:29 DEBT WITH DEBT FINANCING MAKING UP AROUND 70% OF THE CAPITAL
02:41:33 BUDGET. OUR PROPOSED OPERATING BUDGET
02:41:36 FOR NEXT FISCAL YEAR IS NEARLY $2.2 BILLION.
02:41:42 >> OVER A THIRD OF THAT GOES TOWARDS OUR CAPITAL COSTS THAT
02:41:43 I MENTIONED ON THE PREVIOUS SLIDE THE SECOND HIGHEST COSTS
02:41:46 HIGHEST COST IN OUR BUDGET IS THE PURCHASE OF POWER
02:41:50 AND THAT'S FOR POWER THAT WE CANNOT GENERATE OURSELVES.
02:41:53 OUR PROPOSED OPERATING BUDGET FOR THE NEXT TWO FISCAL YEARS
02:41:58 IS NEARLY $2.2 BILLION AND IT WILL GROW BY ABOUT 12% OR 257
02:42:03 MILLION FROM THE CURRENT YEAR. MOST OF THAT GROWTH IS AGAIN
02:42:07 DRIVEN BY CAPITAL INCLUDING DEBT SERVICE COSTS THAT ARE
02:42:10 JUST NOW COMING ONLINE FOR RECENTLY COMPLETED WASTEWATER
02:42:12 PROJECTS OUTSIDE OF CAPITAL RELATED COSTS.
02:42:19 THERE ARE OTHER CHANGES IN THIS BUDGET ALL OF WHICH ARE CLOSELY
02:42:22 ALIGNED WITH OUR PRIORITIES. THEY INCLUDE STAFFING
02:42:24 AND MAINTENANCE COSTS TO OPERATE NEW FACILITIES THAT ARE
02:42:28 NEAR COMPLETION IN WATER AND WASTEWATER INCLUDING THE
02:42:31 BIO DIGESTERS SHOWN IN THIS PHOTO.
02:42:32 THEY INCLUDE CUSTOMER INCENTIVE PROGRAMS TO ENCOURAGE OUR
02:42:35 CUSTOMERS TO TRANSITION TO CLEAN ENERGY THROUGH ELECTRIC
02:42:39 VEHICLES, SOLAR INSTALLATIONS, HEAT PUMPS AND MORE.
02:42:42 >> THEY ALSO INCLUDE ONGOING OPERATING FUNDS FOR SEVERAL
02:42:46 COMMUNITY PROGRAMS THAT HAVE BEEN FUNDED INCONSISTENTLY
02:42:48 AND PRIOR BUDGETS. MOVING ON NOW TO OUR CAPITAL
02:42:54 BUDGET WHICH AGAIN YOU WILL HEAR MORE ABOUT NEXT WEEK
02:42:55 IN OUR WATER AND WASTEWATER ENTERPRISES INVESTMENTS ARE
02:42:59 FOCUSED ON MAJOR CAPITAL UPGRADES THAT ARE REQUIRED FOR
02:43:02 SYSTEM QUALITY RELIABILITY AS WELL AS REGULATORY COMPLIANCE.
02:43:07 MEANWHILE AND THE POWER ENTERPRISE CAPITAL INVESTMENTS
02:43:11 WILL GO TOWARDS SYSTEM RESILIENCY AS WELL AS CUSTOMER
02:43:12 GROWTH. WE'RE BUILDING NEW ASSETS TO
02:43:15 DELIVER CLEAN ENERGY TO NEW CUSTOMERS.
02:43:19 THIS CHART SHOWS A BREAKDOWN BY ENTERPRISE OF THAT CAPITAL
02:43:23 BUDGET OVER THE NEXT TWO YEARS AND YOU CAN SEE WASTEWATER AS
02:43:24 WELL AS THE WATER ENTERPRISES DOMINATE THOSE INVESTMENTS.
02:43:30 AND FINALLY WE WILL ALSO BE REQUESTING YOUR AUTHORIZATION
02:43:31 AUTHORIZING OPTION FOR DEBT FINANCING ALONG WITH OUR
02:43:35 CAPITAL BUDGET NEXT WEEK AND YOU'LL SEE THAT TRAINING
02:43:39 LEGISLATION SOON. SO THAT IS OUR VERY QUICK
02:43:42 OVERVIEW. WE HAVE LEADERSHIP FROM ACROSS
02:43:43 EVERY ENTERPRISE HERE TO ADDRESS YOUR QUESTIONS,
02:43:47 SUMMARIZE ALL TO THANK YOU CHAIR CHEN JUST AS WE LOOK AT
02:43:54 THE BUDGET FOR THIS YEAR AND NEXT YEAR, HOW MUCH WAS THE
02:43:58 INCREASE TO RATEPAYERS WITHIN THIS BUDGET?
02:44:05 >> SO THE RATE INCREASES THAT WERE ADOPTED BY OUR COMMISSION
02:44:09 A COUPLE OF YEARS AGO ARE REFLECTED IN THE REVENUE
02:44:10 INCREASES IN THE BUDGET. THOSE RATE INCREASES IN WATER
02:44:14 ARE 7% OVER THE NEXT TWO YEARS IN WASTEWATER THERE 15%
02:44:19 AND 14.5% AND IN POWER THEY'RE ABOUT 7%.
02:44:23 HOWEVER IN CLEAN POWER SRF THERE ARE TWO PROGRAMS WITHIN
02:44:27 WITHIN THE POWER ENTERPRISE CLEAN POWER SRF AS WELL AS
02:44:30 HATCHERY POWER CLEAN POWER SRF RATES ARE ACTUALLY GOING DOWN
02:44:33 BY 20 TO 25% AND THOSE DECREASES WERE ADOPTED BY OUR
02:44:37 COMMISSION IN MARCH. >> AND IN LAYMAN'S TERMS WAS
02:44:41 THE WHAT AMOUNT WILL INDIVIDUALS BILL GO UP?
02:44:48 >> SO IN THE INDIVIDUALS GET A COMBINED WATER AND WASTEWATER
02:44:52 BILL THE AVERAGE BILL INCREASE WILL BE AROUND 10.5% IN DOLLARS
02:44:59 IN DOLLARS. >> IT REALLY VARIES BY
02:45:00 HOUSEHOLD AND BY SIZE BY HOW MUCH WATER YOU USE FOR THE
02:45:06 SINGLE FAMILY HOME. DOES ANYBODY HAVE THIS OFF THE
02:45:08 TOP OF THEIR HEAD ON THAT? >> AND AND IF YOU DON'T HAVE IT
02:45:13 RIGHT NOW WITH YOU, WE CAN DEFINITELY HAVE THIS
02:45:14 CONVERSATION LATER BUT YEAH OKAY.
02:45:18 >> I CAN RECALL THE CHART WHICH WE WENT THROUGH ON OUR RATE
02:45:21 SLIDE SO THE AVERAGE SINGLE FAMILY HOME WHICH IS WE HAVE
02:45:25 THE BEST DATA ON THEM BECAUSE THEY HAVE THEIR OWN METERS,
02:45:26 THEIR BILL RIGHT NOW AROUND 160, $170 A MONTH THEY'LL BE
02:45:33 GOING UP TO AROUND 180 TO $190 A MONTH.
02:45:36 >> YEAH, OKAY. THANK YOU.
02:45:41 >> OKAY. THANK YOU.
02:45:42 I APPRECIATE YOUR EFFORT AND I THINK WE ALSO APPRECIATE JUST
02:45:53 THE OVERALL EFFORT OF BALANCING THIS BUDGET BUT IN MANAGING
02:46:01 SORT OF THE LONG, LONG TERM CONSTRUCTION YOUR CAPITAL
02:46:04 IMPROVEMENT NEEDS AND YOUR CONSTRUCTIONS BUDGET, I THINK I
02:46:12 THINK I WAS ASKING A LITTLE BIT MORE OF HELP US UNDERSTAND A
02:46:15 BETTER ABOUT WHEN YOU'RE SPENDING WHAT YOUR CAPITAL PLAN
02:46:23 $1.9 BILLION FOR THE WATER AND WASTEWATER APPROPRIATION
02:46:27 AND THEN ABOUT $300 MILLION OF THE POWER APPROPRIATION AND MY
02:46:31 MY APOLOGIES ARE THERE PROJECTIONS OF THE REVENUE THAT
02:46:35 YOU DO GENERATE FROM FROM THIS IMPROVEMENT?
02:46:41 >> SO IN WATER AND WASTEWATER WE'RE LARGELY NOT GENERATE
02:46:45 REVENUE. THOSE ARE PROJECTS TO MAINTAIN
02:46:46 OUR SERVICES IN SOME CASES TO MAKE UPGRADES OR TO COMPLY WITH
02:46:51 NEW REGULATIONS. BUT NEW REVENUE TENDS TO COME
02:46:55 FROM NEW CUSTOMERS AND INSOFAR AS POPULATION IS NOT GROWING
02:46:58 ALL THAT FAST, WE'RE NOT NECESSARILY BRINGING ON NEW
02:47:02 CUSTOMERS IN WATER AND WASTEWATER ON THE OTHER
02:47:06 HAND, IN POWER THOSE INVESTMENTS ARE AIMED AT
02:47:07 ACQUIRING NEW CUSTOMERS TO DELIVER THEM CLEAN ENERGY
02:47:13 AND THOSE INVESTMENTS OVER TIME WILL BRING NEW RATE PAYERS ON
02:47:17 TO THAT TOUCHY POWER AND THEN ALLOW US TO REDUCE RATES FOR
02:47:19 ALL OF OUR CUSTOMERS. THAT HOWEVER IS GOING TO TAKE
02:47:23 MANY YEARS AS WE NEED. THESE ARE REALLY BIG PROJECTS
02:47:26 THAT WILL TAKE 5 TO 10 PLUS YEARS TO FIRST BUILD EVEN
02:47:29 BEFORE WE BRING ON THOSE CUSTOMERS.
02:47:32 >> SO WE'RE REALLY TALKING ABOUT REVENUE GENERATION YOU
02:47:36 KNOW, 1010 YEARS OUT FROM NOW. >> I SEE I ALSO WANT TO EXPRESS
02:47:39 MY GRATITUDE TO TO DIRECTOR HERRERA AND YOUR DIRECTOR OR
02:47:47 YOUR GENERAL MANAGER AND GENERAL MANAGER GENERAL
02:47:48 MANAGER HERRERA HERRERA AND BECAUSE AS THIS BODY HAS
02:47:54 GRANTED TO 9.118 AUTHORITY FOR TO YOU TO NOT HAVING TO COME TO
02:47:57 US FOR ELECTRICITY OR BATTERY AND POWER PURCHASE AND YET YOU
02:48:06 I THINK YOUR TEAM HAS DONE A GREAT JOB TO REALLY MAKE SURE
02:48:10 THAT WHENEVER POSSIBLE YOU STILL COME BACK TO THE BOARD
02:48:11 FOR CONVERSATION AND SO WE APPRECIATE THAT EFFORT AND IT
02:48:14 HAS BEEN PROVEN FOR THE LAST AT LEAST I KNOW MORE THAN TWO
02:48:20 YEARS NOW THAT YOU HAVE BEEN PROVEN IN GOOD FAITH THAT YOU
02:48:22 CONSISTENTLY TRYING TO MAKE SURE THAT IF YOU PRESERVE HAVE
02:48:28 AND YOU EXERCISE THAT AUTHORITY CAREFULLY AND SO WE REALLY DO
02:48:32 HAVE I REALLY PERSONALLY REALLY APPRECIATE YOUR YOUR EFFORT ON
02:48:36 THAT. SO WITH THAT WE WILL GO TO
02:48:39 THANK YOU SO MUCH FOR YOUR TIME AND THANK YOU SO MUCH FOR YOUR
02:48:43 SERVICE AND WE WILL GO TO RENT OPERATION BOARD RENT BOARD
02:49:18 . >> GOOD AFTERNOON AND CHAIR
02:49:23 CHAN SUPERVISORS DORSEY SAUDER AND WALTON.
02:49:27 I AM CHRISTINA VARNER, THE EXECUTIVE DIRECTOR OF THE
02:49:31 RESIDENTIAL RENT STABILIZATION AND ARBITRATION BOARD ALSO
02:49:32 KNOWN AS THE SAN FRANCISCO RENT BOARD.
02:49:35 I APPRECIATE THE OPPORTUNITY TO PRESENT YOU WITH THE
02:49:39 DEPARTMENT'S FISCAL YEAR 20 2627 AND 20 2728 BUDGET.
02:49:42 I WOULD LIKE TO THANK MAYOR'S BUDGET OFFICE SOPHIA JOSHUA
02:49:46 THANK YOU SO MUCH FOR YOUR SUPPORT AND GRACE AND SPENCER
02:49:50 AT THE COMPTROLLER'S OFFICE. >> NEXT SLIDE PLEASE.
02:49:56 HERE YOU WILL SEE THE RENT BOARD'S MISSION FISCAL YEAR
02:50:00 2425 SAW 3861 TOTAL FILINGS INCLUDING LANDLORD AND TENANT
02:50:05 PETITIONS, APPEALS, EVICTION NOTICES AND BUYOUTS.
02:50:08 >> AND WE PROJECT ABOUT 4400 FILINGS FOR THE CURRENT FISCAL
02:50:11 YEAR FISCAL YEAR 2425 SAW WELL OVER 25,000 PHONE CONTACTS WITH
02:50:17 SIMILAR NUMBERS AGAIN PROJECTED FOR THIS FISCAL YEAR.
02:50:21 OUR ADMINISTRATIVE LAW JUDGES RESOLVED OVER 730 PETITIONS
02:50:24 LAST FISCAL YEAR ACROSS OVER 2300 UNITS AND THIS YEAR HAVE
02:50:31 RESOLVED 600 PETITIONS ACROSS NEARLY 1400 UNITS SO FAR.
02:50:34 >> NEXT SLIDE PLEASE. HERE YOU CAN SEE THE RENT
02:50:38 BOARD'S ORGANIZATIONAL STRUCTURE AND ANSWERING THE
02:50:41 CALL OF THE QUESTION. CHAIR CHAN SINCE EXPANDING
02:50:45 IN FISCAL YEARS 21 AND 22 THE DEPARTMENT HAS BEEN BUDGETED AT
02:50:49 50 FULL TIME EMPLOYEES AND CURRENTLY HAS 49 FILLED
02:50:52 POSITIONS. ALL POSITIONS ARE PERMANENT
02:50:53 CIVIL SERVICE EXCEPT FOR THE EXECUTIVE DIRECTORS, DEPUTY
02:50:57 DIRECTOR ATTORNEYS AND SUPERVISING ATTORNEYS WHICH
02:51:00 ARE PERMANENT EXEMPT. THERE ARE EIGHT MEMBERS OF
02:51:02 SENIOR STAFF AND TWO SUPERVISORS THE HEARINGS UNIT
02:51:05 AND THE PUBLIC INFORMATION UNIT EACH HAVE TWO MANAGERS
02:51:08 AND SUPERVISE 11 AND 13 EMPLOYEES RESPECTIVELY.
02:51:12 BOTH UNITS ENGAGING IN COMPLEX MULTI FUNCTIONS THAT REQUIRE
02:51:16 SUCH SUPERVISION. THE CLERICAL UNIT SUPERVISOR
02:51:18 DIRECTS FIVE EMPLOYEES AND THE INVENTORY AND FEE UNIT
02:51:20 SUPERVISOR DIRECTS SEVEN THE OPERATIONS AND FINANCE MANAGER
02:51:24 MANAGES THE INVENTORY AND FEE UNIT FINANCE AND OPERATIONS
02:51:27 AND PARTICIPATES IN BUDGET PREPARATION.
02:51:30 THE DEPUTY DIRECTOR OVERSEES FOUR SUPERVISORS AND THREE
02:51:33 UNITS AND SIX EMPLOYEES REPORT TO THE EXECUTIVE DIRECTOR.
02:51:37 TWO ATTORNEY POSITIONS ARE VACANT ONE IS WILL BE FILLED
02:51:41 WHEN IT'S OPERATIONALLY NECESSARY AND ONE IS BEING HELD
02:51:44 VACANT FOR ATTRITION SAVINGS. THE PRESENT POSITION ALLOCATION
02:51:47 MEETS CURRENT SERVICE DEMANDS. NEXT SLIDE PLEASE.
02:51:51 HERE YOU CAN SEE THE RENT BOARD'S BUDGET SUMMARY DATA.
02:51:55 THE PROPOSED BUDGET FOR 2627 WILL DECREASE BY $135,040
02:51:59 AND THEN THE BUDGET WILL INCREASE TO 677906 WHICH IS AN
02:52:06 INCREASE OF FIVE 4240 FROM TODAY'S BUDGET AND STILL LESS
02:52:10 THAN WHAT WAS FORECASTED ONE YEAR AGO.
02:52:11 >> THE INCREASE IS PRIMARILY DUE TO INCREASES IN WAGE
02:52:14 AND MANDATORY FRINGE BENEFITS AND SOME SMALL WORK ORDER
02:52:18 INCREASES. THE FULL TIME EMPLOYEE COUNT
02:52:19 WILL REMAIN AT 50. >> NEXT SLIDE PLEASE.
02:52:25 >> HERE YOU WILL SEE THE BOARD'S PROPOSED TOTAL REVENUE
02:52:27 FOR THE COMING FISCAL YEAR. THE BOARD DERIVES THE MAJORITY
02:52:30 OF ITS REVENUE FROM THE ANNUAL PER UNIT FEE THAT IS CHARGED TO
02:52:34 THE PROPERTY OWNER WITH HALF THE COSTS PASS THROUGH TO THE
02:52:37 TENANT. >> THE COMPTROLLER'S OFFICE
02:52:38 CALCULATES THE FEE BASED ON PROPERTY DATA AND WHAT IS
02:52:41 NEEDED TO SUPPORT THE DEPARTMENT'S PROGRAMMATIC WORK.
02:52:44 >> WE EXPECT THAT DUE TO FUND BALANCE AVAILABLE TO THE
02:52:46 DEPARTMENT THAT ACCUMULATED DURING PERIODS OF SLOW HIRING
02:52:50 THE FEE WILL REMAIN AT $59 PER RESIDENTIAL DWELLING UNIT FOR
02:52:53 THE NEXT TWO YEARS. >> NEXT SLIDE PLEASE.
02:52:59 >> HERE YOU CAN SEE THE PROPOSED TOTAL EXPENDITURES FOR
02:53:02 THE NEXT FISCAL YEAR AS IS TRUE YEAR OVER YEAR SALARIES
02:53:06 AND MANDATORY FRINGE BENEFITS HOVER AROUND 80% OF THE TOTAL
02:53:09 BUDGET. THAT ALLOCATION DIRECTLY FUNDS
02:53:10 THE CORE OPERATIONS TO CARRY OUT THE DEPARTMENT'S MISSION
02:53:15 AND SUPPORTS TENANTS AND PROPERTY OWNERS TO RESOLVE
02:53:17 DISPUTES. >> WE TRY TO KEEP OTHER COSTS
02:53:18 AS LOW AS POSSIBLE INCLUDING WORK ORDERS WITH DEPARTMENTS
02:53:22 LIKE REPRO MAIL, THE DEPARTMENT OF REAL ESTATE SFR 311
02:53:26 ACCOUNTING TREASURER AND TAX COLLECTOR AND THEN ENSURE THAT
02:53:29 NON-PERSONAL SERVICES AND MATERIALS AND SUPPLIES
02:53:33 COSTS STAY LOW. NEXT SLIDE PLEASE.
02:53:36 THE DEPARTMENT'S MISSION AND CORE OPERATIONS ARE ALIGNED
02:53:38 WITH MAYOR LARRY'S CALL TO MAKE THE CITY MORE AFFORDABLE
02:53:41 AND LIVABLE FOR FAMILIES. >> STAFF DAILY PROVIDE
02:53:44 INFORMATION TO THE PUBLIC AROUND THEIR RIGHTS
02:53:45 AND RESPONSIBILITIES AROUND THE RENT ORDINANCE AND RELATED LAWS
02:53:49 LESSENING THE NEED FOR UNNECESSARY DISPUTES.
02:53:52 OUR HEARINGS UNIT BRINGS THE CASES BEFORE IT TO A SUCCESSFUL
02:53:55 RESOLUTION WHETHER THAT IS CERTIFYING CAPITAL IMPROVEMENTS
02:54:00 FOR A LANDLORD TO PROTECT THEIR INVESTMENT OR SETTLING
02:54:01 DECREASED HOUSING SERVICE CLAIMS SO THAT A SIGNIFICANT
02:54:05 PROPORTION OF CLAIMS DO NOT HAVE TO GO TO HEARING.
02:54:08 DURING THE COMMISSION STREAMLINING PROCESS.
02:54:09 OUR COMMISSION'S WORK WAS FOUND TO BE SO CRITICAL THAT THE
02:54:12 LANDLORD AND TENANT COMMUNITIES UNIONS MOSTLY AGREED THAT THE
02:54:16 COMMISSION SHOULD CONTINUE TO EXIST IN ITS CURRENT FORM.
02:54:19 OUR WORK IS SEEN AS BEING FAIR AND BALANCED AND ESSENTIAL TO
02:54:23 THE COMMUNITY'S WELL-BEING. NEXT SLIDE PLEASE.
02:54:26 >> THE DEPARTMENT IS COMMITTED TO MODERNIZATION AS A MEANS FOR
02:54:28 DELIVERING EFFECTIVE COMMONSENSE GOVERNMENT TO THE
02:54:31 CITY'S LANDLORDS AND TENANTS AND HAS BEGUN BUILDING A NEW
02:54:34 PRIMARY CASE MANAGEMENT SYSTEM THAT WILL ENABLE MEMBERS OF THE
02:54:38 PUBLIC TO FILE AND INTERACT WITH THE DEPARTMENT ONLINE.
02:54:41 THE HOUSING INVENTORY REPORTING COMPLIANCE RATE INCREASED BY
02:54:45 18% FROM THE YEAR PRIOR. THE DEPARTMENT CRITICALLY
02:54:46 COLLECTED OVER 95% OF THE ASSESSED 2025 RENT BOARD FEE
02:54:52 ENSURING THAT THE DEPARTMENT IS NOT RELIANT ON THE GENERAL
02:54:55 FUND. >> WE PARTNERED WITH DATA ASF
02:54:56 TO MAKE RENT MORE DATA EASILY ACCESSIBLE SUPPORTING INFORMED
02:55:00 DECISIONS ABOUT THE CITY'S HOUSING LANDSCAPE.
02:55:04 >> IN CLOSING I WOULD LIKE TO HIGHLIGHT THE CONSTANT
02:55:07 AND DEDICATED PUBLIC SERVICE OF THE BOARD TEAM AND THANK YOU
02:55:11 CHAIR CHAN AND SUPERVISORS FOR YOUR TIME AND VERY HARD WORK
02:55:15 TODAY AND I WILL TAKE ANY QUESTIONS.
02:55:17 THANK YOU. WANTED TO JUST HAVE A BETTER
02:55:22 UNDERSTANDING ABOUT HOUSING THE HOUSING INVENTORY
02:55:29 IMPLEMENTATION GOING. >> IT KEEPS US VERY BUSY CHURCH
02:55:34 AND THAT'S A GOOD THING AND CHARACTER HE ELABORATED
02:55:37 JUST A LITTLE BIT. >> SURE.
02:55:38 WE ATTEMPT THAT TO ENGAGE IN YOU KNOW, OUTSIDE OF OUR
02:55:46 OPEN FRONT COUNTER THAT'S OPEN DAILY AND OUR PHONE LINES THAT
02:55:50 ARE OPEN SIX HOURS PER DAY AND SAT A FULLY STAFFED SIX
02:55:53 HOURS PER DAY. WE GO OUT TO THE COMMUNITIES
02:55:57 AND ENGAGE IN OUTREACH OPPORTUNITIES AT LEAST TWICE
02:55:58 PER MONTH WITH OUR PUBLIC INFORMATION UNIT INVENTORY
02:56:02 AND FOR UNIT STAFF. SO WE'VE BEEN WORKING REALLY
02:56:05 HARD TO CONTINUE TO TRY TO GET THE WORD OUT TO OWNERS ABOUT
02:56:08 THEIR RIGHTS AND RESPONSIBILITIES WITH
02:56:12 REGARD TO THE HOUSING INVENTORY.
02:56:13 AND WE'RE FINDING AGAIN AS I STATED IN MY PRESENTATION, WE
02:56:16 HAVE HAD GROWTH WITH REPORTING INTO THE INVENTORY SO IT HAS
02:56:20 GROWN 18% FROM 24 TO 25 AND IT'S CONTINUING TO GROW
02:56:23 THIS YEAR. AND WE RECENTLY SAID SENT OUT A
02:56:27 NOTIFICATION TO NONCOMPLIANT OWNERS TO SO THAT THEY WOULD BE
02:56:34 AWARE THAT THEY ARE NOT REPORTING INTO THE INVENTORY AS
02:56:38 THEY SHOULD BE. AND WE'VE WE'VE HAD SOME GREAT
02:56:39 RESPONSE FROM THAT AND INCREASED REPORTING.
02:56:42 SO WE'RE WE'RE CONTINUE OUSLY WORKING TO GET THE WORD OUT.
02:56:47 AND IT REALLY ASSISTS US AND THEIR TENANTS AND THE
02:56:50 DEPARTMENT TO FOR THE OWNERS TO BE REPORTING IN SO THAT THERE
02:56:54 WILL BE FEWER DISPUTES AND TENANTS WILL NOT BE FILING
02:56:58 PETITIONS FOR UNLAWFUL RENT INCREASE IF THE OWNERS ARE
02:57:01 UNLICENSED AND PASSING THROUGH PARDON AND RAISING THEIR
02:57:05 TENANT'S ANNUAL ALLOWABLE RENT. >> THANK YOU SO MUCH FOR YOUR
02:57:09 WORK. >> WE REALLY APPRECIATE IT.
02:57:10 THANK YOU VERY MUCH. THANK YOU.
02:57:13 AND I DON'T SEE OUR NAME ON THE ROSTER SO THANK YOU.
02:57:16 >> THANK YOU. WITH THAT WILL GO TO RETIREMENT
02:57:20 . LAST BUT NOT LEAST FOR TODAY'S
02:57:21 ON THE AGENDA
02:57:59 . >> GOOD AFTERNOON.
02:58:00 I AM ALISON ROMANO, CEO AND CEO OF THE EMPLOYEES RETIREMENT
02:58:07 SYSTEM. THANK YOU CHAIR CHAN
02:58:08 AND SUPERVISORS FOR ALL THE IMPORTANT WORK THAT YOU DO.
02:58:12 THANK YOU TO THE MAYOR'S BUDGET TEAM AND TO THE VLA THROUGHOUT
02:58:16 THIS PROCESS. >> TODAY I WILL WALK THROUGH
02:58:19 SPURS MISSION AND OUR STRATEGIC PLAN HOW THE BUDGET TIES TO
02:58:23 THAT AND THEN PUT THE BUDGET IN CONTEXT OF THE MONEY AND THE
02:58:27 LIABILITIES THAT WE MANAGE. >> SPURS IS DEDICATED TO
02:58:37 SECURING, PROTECTING AND PRUDENTLY INVESTING THE
02:58:38 PENSION TRUST ASSETS ADMINISTERING MANDATED BENEFIT
02:58:41 PROGRAMS AND PROVIDING PROMISE BENEFITS TO ACTIVE AND RETIRED
02:58:45 MEMBERS AND THEIR BENEFICIARIES.
02:58:48 >> SO EVERYTHING THAT WE DO IS CORE TO THAT MISSION
02:58:52 AND CONSIDERED CORE OPERATIONAL SERVICES TO BE SUCCESSFUL FOR
02:58:56 OUR MISSION. WE NEED TO INVEST EFFICIENTLY
02:59:00 AND EFFICIENTLY IN OUR PEOPLE AND OUR SYSTEMS TO DELIVER ON
02:59:04 THE INVESTMENT RETURNS OR BENEFITS ADMINISTRATION AND OUR
02:59:08 BUSINESS OPERATIONS. AS A REMINDER, SPURS DOES NOT
02:59:12 RECEIVE GENERAL FUND SUPPORT TODAY WE ARE RESPONSIBLE FOR
02:59:21 OVERSEEING $48 BILLION IN ASSETS WE SERVE 83 THOUSAND
02:59:25 MEMBERS IN THE PENSION PLAN AND 37,000 ON THE DC PLAN.
02:59:32 >> I'M PLEASED TO REPORT THAT SPURS CONTINUES TO DELIVER ON
02:59:38 THE MISSION AND I WANT TO HIGHLIGHT A FEW KEY STATISTICS
02:59:41 FROM OUR SUCCESSFUL FISCAL YEAR 2025.
02:59:45 IMPORTANTLY, WE'VE CONTINUED TO MAKE PROGRESS IN TERMS OF BOTH
02:59:49 THE INVESTMENT SIDE OF OUR BUSINESS AND ON ADMINISTRATION
02:59:52 . >> OUR ACTUARIAL FUNDED STATUS
02:59:55 IS 97%. THAT IS TREMENDOUSLY HEALTHY.
02:59:59 AND TO PUT A FRAME OF REFERENCE ON THAT, THE AVERAGE FUNDED
03:00:03 STATUS ACROSS CITY STATE AND UP PLANS IS SOMEWHERE IN THE 78 TO
03:00:10 81% RANGE. SO WE HAVE A MUCH STRONGER
03:00:11 FUNDED STATUS THAN MANY OF OUR PEERS.
03:00:14 OUR INVESTMENT PERFORMANCE HAS EXCEEDED OUR ACTUAL RATE OF
03:00:18 RETURN FOR FIVE, TEN AND 20 YEARS.
03:00:21 >> NOW WHY IS THIS IMPORTANT? BECAUSE A STRONG PENSION PLAN
03:00:25 HELPS THE CITY WITH ITS LONG TERM FINANCIAL HEALTH.
03:00:29 >> IF WE HAVE A STRONG PLAN, CONTRIBUTIONS FROM THE CITY ARE
03:00:33 MANAGED. IF WE HAVE A STRONG PLAN THAT
03:00:36 IS AN INPUT INTO THE COST OF CAPITAL FOR THE CITY TO BE ABLE
03:00:40 TO BORROW. AND AGAIN I AM PLEASED TO SAY
03:00:43 WE'RE IN A STRONG FINANCIAL POSITION.
03:00:44 >> IN ADDITION TO THAT WE DO A LOT TO ADMINISTER THE MANDATED
03:00:50 BENEFITS AND SERVE OUR MEMBERS. LAST YEAR WE RESPONDED TO OVER
03:00:54 14 THOUSAND EMAIL INQUIRIES FROM OUR PARTICIPANTS HOSTED 23
03:00:58 RETIREMENT PLANNING WEBINARS. WE'RE OPEN FIVE DAYS A WEEK
03:01:02 AND CONDUCTED OVER 3000 APPOINTMENTS.
03:01:05 WE HAVE MADE A STRONG EFFORT TO MEET OUR MEMBERS WHERE THEY ARE
03:01:08 ,WHETHER THEY WANT TO COME TO OUR OFFICE, WHETHER WE GO TO
03:01:10 THEIR DEPARTMENTS, WHETHER WE WORK WITH THEM ON PROGRAMS THAT
03:01:14 THEY HAVE IN ADDITION TO EVERYTHING THAT WE DO IN THE
03:01:17 PENSION PLAN SIDE. >> I AM VERY PROUD OF WHAT
03:01:21 WE'VE ACCOMPLISHED ON THE DEFERRED COMP SIDE.
03:01:23 60% OF CITY EMPLOYEES PARTIES ARE PAID IN THIS PROGRAM.
03:01:28 THAT IS EMPLOYEES WHO HAVE SAID AFTER MONEY COMES OUT OF MY
03:01:32 PAYCHECK TO PAY TAXES TO CONTRIBUTE TO THE DB PLAN TO
03:01:36 PAY ALL MY BILLS. I THINK DCA OFFERS A GOOD
03:01:40 OPPORTUNITY FOR ME TO INVEST IN MY FUTURE.
03:01:43 >> SO 60% AGAIN A STRONG OPPORTUNITY, A STRONG
03:01:48 PARTICIPATION RATE AND SOMETHING THAT CAN PUT OUR
03:01:52 EMPLOYEES IN A BETTER POSITION TO RETIRE.
03:01:58 OUR OBJECTIVES ARE THREEFOLD TO HAVE BEST IN CLASS OPERATIONS,
03:02:02 FINANCIAL STRENGTH AND INSTITUTIONAL DEFTNESS.
03:02:06 THE STRATEGIC PLAN TIES TO OUR ANNUAL WORK PLAN WHICH TIES TO
03:02:10 OUR BUDGET. AND JUST TO PROVIDE AN EXAMPLE
03:02:14 DATA IN ADDITION TO MONEY IS ONE OF OUR ASSETS.
03:02:18 WE NEED TO INVEST IN TECHNOLOGY SYSTEMS AND THE PEOPLE TO
03:02:21 IMPLEMENT THOSE SYSTEMS TO SECURE THAT DATA, PROTECT THAT
03:02:25 DATA AND UTILIZE THE DATA TO MAKE GOOD INVESTMENT DECISIONS
03:02:30 AND ADMINISTER BENEFITS. TAKEN TOGETHER TAKING INTO
03:02:36 ACCOUNT THAT STRATEGIC PLAN AND OUR MISSION, WE ARE
03:02:40 PROPOSING A BUDGET THIS YEAR OF $62.6 MILLION.
03:02:43 AS YOU CAN SEE IN THE PIE GRAPH.
03:02:46 >> THE VAST MAJORITY OF THAT IS RELATED TO THE PENSION PLAN.
03:02:53 2.4 IS RELATED TO THE CFTC PLAN AND 1.7 TO THE RETIREE HEALTH
03:02:56 CARE TRUST FUND. >> IT'S IMPORTANT TO PUT OUR
03:03:00 BUDGET IN CONTEXT. AND FIRST I'LL START BY PUTTING
03:03:05 OUR BUDGET IN CONTEXT WITH THE LIABILITIES THAT WE MANAGE.
03:03:08 >> WHAT YOU'LL SEE ON THIS PAGE IS A BAR GRAPH OF THE LIABILITY
03:03:12 . SO 39.446 BILLION
03:03:16 IN LIABILITIES. >> CURRENTLY OUR BUDGET IS SO
03:03:19 SMALL COMPARED TO THAT I CAN'T EVEN GET THE BAR TO SHOW ON
03:03:23 THIS PAGE. TO GIVE YOU THE NUMBERS THERE
03:03:24 IN CONTEXT FOR EVERY $100 OF LIABILITIES THAT WE OVERSEE WE
03:03:31 SPEND 14.8 CENTS IN OUR BUDGET. SO A BIG DIFFERENTIAL THERE.
03:03:38 >> THAT'S RELATIVE TO LIABILITIES.
03:03:42 >> LET'S TALK ABOUT THE ASSETS THAT WE MANAGE.
03:03:46 AGAIN HERE WE SPEND LITTLE RELATIVE TO THE ASSETS IN THE
03:03:50 INVESTMENTS. THE LAST THREE YEARS ADMITTEDLY
03:03:53 HAVE BEEN VERY STRONG IN THE MARKETS AND OUR ORGANIZATION
03:03:57 HAS BEEN IN A POSITION TO CAPITALIZE ON THOSE STRONG
03:04:00 RETURNS. >> SO FOR EVERY DOLLAR THAT THE
03:04:04 CITY AND COUNTY PUTS IN IN CONTRIBUTIONS WE HAVE EARNED ON
03:04:08 AVERAGE THREE DOLLARS AND $0.82 OVER THE LAST THREE YEARS.
03:04:11 >> FOR EVERY BUDGET DOLLAR THAT WE SPEND WE'VE EARNED $52
03:04:18 AND $0.33. AGAIN, A PRETTY GOOD RETURN ON
03:04:20 INVESTMENT. >> FINALLY THOUGH WE ARE NOT
03:04:25 GENERAL FUND. WE ALWAYS SEEK TO BE A GOOD
03:04:28 PARTNER WITH THE CITY. >> WE ALLOW THE CITY TO PREPAY
03:04:32 ITS CONTRIBUTIONS WHICH WE ANTICIPATE WILL SAVE $25
03:04:36 MILLION THIS YEAR. >> IN ADDITION, AS A DIRECT
03:04:40 RESULT OF OUR INVESTMENTS EXCEEDING THE ACTUARIAL
03:04:43 EXPECTATIONS THAT HAS DRIVEN A REDUCTION OF $42.4 MILLION.
03:04:50 AND WHAT THE CITY WOULD HAVE OTHERWISE HAD TO PAY THIS
03:04:51 BUDGET YEAR. >> HOPEFULLY THAT IS A
03:04:55 COMPELLING STORY RELATIVE TO OUR LIABILITIES ASSETS AND THE
03:04:59 PERFORMANCE THAT WE HAVE DELIVERED ON BEHALF OF OUR
03:05:02 MEMBERS AND PARTICIPANTS. THANK YOU.
03:05:06 IT IS A COMPELLING PRESENTATION AND WE APPRECIATE ALL YOUR WORK
03:05:11 THAT YOU'RE DOING AS SPECIAL, ALI, IN LIGHT OF A VERY
03:05:15 DIFFICULT JUST OVERALL ECONOMIC SITUATION NATIONALLY
03:05:21 AND GLOBALLY AND JUST HOW MUCH OF WORK TO TO REALLY MONITORING
03:05:29 AND MANAGING OUR ASSETS AND INVESTMENTS.
03:05:33 SO I APPRECIATE THE WORK. THANK YOU.
03:05:37 >> AND SO WITH THAT I BELIEVE THIS IS OUR LAST CITY
03:05:41 DEPARTMENT FOR THE FOR THE DAY AND THAT WE WILL GO TO PUBLIC
03:05:45 COMMENT FOR THE ITEMS. >> YES, WE'RE NOW OPENING
03:05:49 PUBLIC COMMENT FOR THESE ITEMS ONE, TWO, THREE REGARDING THE
03:05:55 HEARING AND THE PROPOSED APPROPRIATION ORDINANCE AND THE
03:05:59 ANNUAL SALARY ORDINANCES OF THE MAYOR'S ENTERPRISE BUDGETS.
03:06:03 HOW LIMITED BY THE AIRPORT COMMISSION BOARD OF APPEALS
03:06:07 DEPARTMENT OF BUILDING INSPECTION CITY PLANNING CHILD
03:06:08 SUPPORT SERVICES DEPARTMENT OF THE ENVIRONMENTAL LAW LIBRARY.
03:06:14 MUNICIPAL TRANSPORTATION AGENCY.
03:06:15 PORT PUBLIC LIBRARY, PUC AND THE RENT OUR PATRICIAN
03:06:19 BOARD AND RETIREMENT SYSTEM. AND WE CAN ACCEPT PUBLIC
03:06:23 COMMENT REGARDING THE BUDGETS FOR THOSE DEPARTMENTS.
03:06:27 AND WITH THAT OH AND THE. THE CHAIR DID ANNOUNCE THAT WE
03:06:31 ARE LIMITING PUBLIC COMMENT TO ONE MINUTE.
03:06:32 BUT IF WE HAVE FIRST SPEAKER. >> GOOD AFTERNOON BUDGET
03:06:40 AND APPROPRIATIONS COMMITTEE GRIFFIN LEE REPRESENTING
03:06:42 CONNECT ESF STAFF AND MEMBERSHIP.
03:06:45 >> THERE'S A LOT I COULD QUESTION AND COMMENT ON BUT
03:06:49 FOCUSING SPECIFICALLY ON THE MTA BUDGET I'M THIS
03:06:55 PRESENTATION HERE ACTUALLY SURPRISED ME A BIT BECAUSE
03:06:59 NUMBERS THEY'RE THROWING IN THEIR BUDGET PRESENTATIONS
03:07:03 AGAIN ARE DIFFERENT THAN RECENT PAST BUDGET PRESENTATIONS.
03:07:07 >> LET ME TAKE A STEP BACK. ON FEBRUARY 2ND IN THEIR BUDGET
03:07:11 WORKSHOP THEY ADDRESSED TRANSIT BUDGET REPRESENTED 77 TRANSIT
03:07:18 REPRESENTED 77% OF THEIR OVERALL BUDGET IN THE PARTIAL
03:07:22 TAX LEGAL TAX IT SAYS NEARLY 90% AND TODAY IT SAID JUST OVER
03:07:29 75 PERCENT. THERE'S A LACK OF DISCREPANCY
03:07:33 AND CLEAR TRANSIT PARENTS YOUNG WHITE TRANSIT IS ACTUALLY
03:07:37 ATTRIBUTING TO. >> TO THE OVERALL BUDGET BY THE
03:07:41 MUNICIPAL TRANSPORTATION AGENCY .
03:07:43 >> SECONDLY I APPRECIATE THE QUESTIONING ON SOME OF THOSE
03:07:47 TOPICS TODAY BUT THE ONES EXPIRED.
03:07:48 CAN I WRAP UP MY CENTRAL QUESTION ONE THING ON THE MTA
03:07:52 WHICH GRIFFIN LEE FOR ADDRESSING HIS COMMITTEE WRITE
03:07:55 TO US IF WE HAVE ANY OTHER SPEAKERS WHO WILL WANT TO
03:07:58 ADDRESS THIS COMMITTEE. NOW IS YOUR OPPORTUNITY.
03:08:01 >> MADAM CHAIR, THAT COMPLETES OUR QUEUE SEEING NO MORE PUBLIC
03:08:06 COMMENTS, PUBLIC COMMENT IS NOW CLOSE.
03:08:07 >> COLLEAGUES I WOULD LIKE TO MOVE TO CONTINUE THESE THREE
03:08:12 ITEMS TO OUR MEETING NEXT WEEK SECONDED BY VICE CHAIR DORSEY
03:08:20 AND WE'LL DO A ROLL CALL PLEASE HAND ON THEIR MOTION THAT WE
03:08:24 CONTINUE THE HEARING AND BOTH APPROPRIATE.
03:08:25 I'M SORRY AND BOTH ORDINANCES TO THE MAY 20TH MEETING OF THIS
03:08:28 COMMITTEE MOVE BY CHURCH AND SECONDED BY VICE CHAIR
03:08:32 DORSEY, VICE CHAIR DORSEY AND DORSEY I REMEMBER SAUTER.
03:08:35 SAUTER I REMEMBER WALTON ALL RIGHT WALTON I.
03:08:39 CHURCH CAN I CAN I WE HAVE FOR US THE MOTION PASSES AND MR.
03:08:43 CLERK DO WE HAVE ANY OTHER BUSINESS BEFORE US TODAY?
03:08:47 >> MADAM CHAIR TO COMPLETE OUR BUSINESS THE MEETING IS
03:08:49 ADJOURNED