Skip to main content

tv   [untitled]    November 1, 2010 4:30am-5:00am PST

5:30 am
tax law changes. we are excited about this legislation for a couple of reasons. i appreciate you hitting the points about what this legislation accomplishes. in addition to what you mentioned, there are a host of technical changes that are part of the legislation. the big picture is that this is the next of that our office has taken to improve tax collection and enforcement. this goes hand in glove with the implementation of the revenue equipment law. to my knowledge, we are still the first and only city that has a revenue control equipment law that helps to ensure all the money is being paid to city government. in addition, we have improved the parking tax information on our forums, and we are requiring in the production of even more information which will help us make sure that all taxes are paid. this is just the next logical
5:31 am
step. i am happy to answer any questions for the committee. supervisor mirkarimi: i do not have anything further, in terms of questions. if it is ok with the chair, we can go to public comment. >> there are some amendments that i would like to bring to the committee's attention. supervisor mirkarimi: thank you. i was about to mention that. my reading of them declares them on substantive, but i would just like to ask the city attorney if that is the case. >> the one change that i do think is substantive is the change to the requirement for exhaustion of remedies. that is a change to chapter 6. supervisor mirkarimi: very good. >> item 6. the amendments to six should stay behind. >> with all the amendments be
5:32 am
staying behind or just that one? >> it would make sense to just leave it rather than divide the file and create two documents. supervisor mirkarimi: we will keep them together. it is a set. supervisor avalos: we are going to go on to public comment on these items. >> i am just glad to see that you have got tax control you have tax control deep in the heart of this city for you and me so deep in the heart it almost taxes a part of me try not to give in i say to myself item 7 you are
5:33 am
going to make it work square make it good today. >> the san francisco police department permits section. it looks like we have been given the task of permitting gays commercial parking garages and lots starting january 1, 2011 from the fire department. we have set up a special application for these parking garages. we are also sending out letters, notifying them of the change, what needs to be done. from what i have listened to from the budget tax office, we
5:34 am
are probably going to need to coordinate with them on bonds and different things they have to submit with their application in january. supervisor avalos: thank you. seeing none, public comment is closed. -- is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. supervisor mirkarimi: did you want to respond to that? >> yes, this was originally a response to supervisor alioto- pier. this past the board about one month ago. we are aware of that and are working with the police department. supervisor mirkarimi: but they are not implicated. >> not in this legislation. just for the committee's information, we are starting a conversation about changes to article 22, a revenue control
5:35 am
law. we will be working with the mta, parking industry, other interested parties, to see if the law can be modernized to reflect current technology. it is our belief that any law that attempts to capture technology can get obsolete fairly quickly. we want to make sure we have a law that reflects new technology but also ensures we are collecting everything that we can be, and giving consumers the assurance when they are parking their cars. we will be coming back to the board in the near future. supervisor mirkarimi: we look forward to that conversation. i also want to thank the mta, who is present here, for their work in this effort today. supervisor avalos: ok, move to accept the amendments and continue the items until next week. keep them together. ok.
5:36 am
mr. young, please call items 8, 9, and 10. >> item 8. resolution providing for the issuance of not to exceed $412,300,000 aggregate principal amount of city and county of san francisco general obligation bonds (earthquake safety and emergency response bonds, 2010); authorizing the execution, authentication, and registration of said bonds; providing for the levy of a tax to pay the principal and interest thereof; providing for the appointment of depositories and other agents for said bonds; providing for the establishment of accounts related thereto; ratifying certain actions previously taken; adopting certain ceqa findings and determinations; and granting general authority to city officials to take necessary actions in connection with the authorization, issuance, sale item 9. resolution authorizing and directing the sale of not to exceed $85,000,000 aggregate principal amount of city and county of san francisco general obligation bonds (earthquake safety and emergency response bonds, 2010), series 2010e (tax-exempt), and city and county of san francisco general obligation bonds (earthquake safety and emergency response bonds, 2010). item 10. ordinance appropriating $85,000,000 of the 2010 series 1 earthquake safety and emergency response general obligation bond proceeds including $76,603,071 to the department of public
5:37 am
works, and $8,396,929 to the public utilities commission for necessary repairs and seismic improvements in order to better prepare san francisco for a major earthquake or natural disaster for fy2010-2011, a1. supervisor avalos: thank you. we have a presentation. >> good morning, supervisors. comptroller's office of public finance. we have. pieces of legislation before you. one is authorizing the issuance of the task. a resolution authorizing an amount not to exceed $85 million for the issuance of sales of the first series of bonds under that authorization, as well as a supplemental ordinance allowing the expenditure of those funds.
5:38 am
of $85 million that we are asking not to exceed amount, $78.8 million is for the budget fund. $8.4 million will be managed by the public utilities commission. we have a representative here from the puc. the remaining amount would be managed by the department of public works. we have someone here who can speak to the project. we have made assumptions of 6% in the amortization schedule, in amortized over 25 years. we know that to% is extremely high considering a few months ago we had general obligation bonds at less than 4%. the last time we issued obligation bonds, our rating was double a-plus. we will proceed and have them write this transaction to access the market, if you approve it.
5:39 am
we have also requested an authorization for the use of build america bonds, 35% in subsidies to the city on its debt service. we have used this transaction twice and we have saved $43 million. we are expecting access to that as well. one thing that i would like to emphasize -- typically we do a 20-year transaction. as a result of going to the board and going to the limitations and our 10-year capital plan, it would allow and amortization term of 25 years. we will continue to look at that and would like to have the flexibility to amortize it over 20 years, instead of 25, if market conditions are typical enough and allow us to stay within the constraints of the plan. we have outstanding $1.4 billion in general-obligation bonds which is 0.8% of the 3% that is allowable by charter, which is
5:40 am
3% of the assessed valuations. if we issue all that is authorized, 1.8 -- 1.68%, which is still low compared to the 3%. by approving the sale, it would increase the debt capacity from 0.5% signed 2.93%. we also wanted to highlight that we are within the constraints of the 10-year capital plan. by approving this, you would allow for this increase in additional tax rates, which is still below the 2006 tax rate level that we have allowed for. in addition, we have a disclosure documents in appendix a that outlines the city's finances. it has been updated through august 31, 2010. by the time we hit the market,
5:41 am
there is a likelihood that our financials will be released, so the first quarter report that was recently released will be updated to reflect that. we are requiring that you delegate that authority to the controller's office to make those necessary changes. i am happy to answer any questions. supervisor avalos: thank you. mr. rose, if we could hear from your office. >> members of the committee, on number six of our report -- excuse me. on page six of our report we point out the debt service on this $85 million, a first series of bonds to be sold, would be about 155.3 million over a 25- year term.
5:42 am
75.4 million interest. seven $9.9 million in principal. the estimated annual debt service is $6.2 million a year on a single-family residence valued at $500,000, assuming their home waters of fiction -- exemption of $700,000, additional property tax would be a $11.83. however, as you know, as you issue these bonds at the same time, existing bonds are being redeemed. those property taxes for those existing bonds would be going down. we recommend you approve this legislation. supervisor avalos: thank you mr. -- thank you, mr. rose. just a couple of questions, probably some of the other department that may be able to respond. i recall discussions in the spring prior to this going to the ballot about the capital plan, fire stations, specific
5:43 am
fire station that would be serviced under this bond. do we have a more specific list of those stations now? >> good morning, supervisors. we do have some information to provide you. i have a brief summary of where we have been, where we intend to go upon receipt of these bond funds. certainly, i can speak more directly to your specific question if i can refer to my power point. supervisor avalos: of course.
5:44 am
>> we have been working for many months with the fire department, administration, the parks commission as well in assembling the needs of the fire department. what we have arrived at here is a list of projects -- they are in order of providing uninterrupted services in the event of an earthquake. without belaboring this too much -- thank you. we have a number of projects, 19 to be precise, that we are intending to follow through on. these are distributed throughout the city. certainly, i want to underscore, these are fire department projects that are most needed,
5:45 am
as a result of discussions with fire departments. they are distributed not according to any other criteria then need. they are distributed throughout the city. the list of projects are these, and they are categorized in three categories. we have focused projects, the products that are in need of specific improvements, including the pair of -- the repair of roofs, windows, doors, and such. those are the projects that will enable us to move the various cruise around the station that we expect to close. we want to make sure the station where we relocate fire crews are up to snuff in terms of accommodating increased personnel.
5:46 am
the seismic improvement projects are those that are especially indicative of potential vulnerabilities, failures in the event of a major earthquake. including among those are two projects arof central importanc, the central station and the logistics center for the department. those are essential services in the sense that they are the backbone for the department, in regard to deploying these particular services. the next group of work are what we call comprehensive renovation projects, and there are two of them. the sum total of them is $61.5 million. we are intending to initiate the work in the second half of 2011
5:47 am
through 2013, beginning with the major projects in the early part of 2012. supervisor avalos: thank you. and you have a timeline for the public safety building as well? >> ok, very quickly. public safety building, 300,000 square feet. it is the largest among the bond program projects. it is relocating the police headquarters from a hall of justice. the same is true for the
5:48 am
southern district police station. we are also building a new mission district fire station. notably as well is the renovation of fire station 30. it will be in essential services facility which means it will be particularly resistant in the event of a major earthquake. it can operate under its own steam for about 96 hours before requiring replenishing. it will be a lead gold standard building. this is a bird's eye view of the location. that small white square bounded by red in the upper right-hand corner. this is adjacent to china basin street as well. this is a early development of the project. we will continue to develop it as soon as we receive our bond funds. this is the schedule for the
5:49 am
project. we have been under way with this and before the bond past. it was a necessary it endeavor to have a good description and corresponding cost of the project, the $243 million that we cited. we are going to resume the projects here shortly and we are going to take that through the beginning of 2012. in fact, we will have trade packages available in the fall of 2011. we will be phasing in construction, tried to get word out on the st as soon as possible -- trying to get word out on the street as soon as possible. supervisor avalos: thank you. related to the auxiliary water supply systems? >> i am glad you asked. supervisor avalos: how could i not after asking
5:50 am
>> this system is certainly inclusive of three component parts, the aboveground court facilities -- core facilities, the sterns, and pipe networking tunnels. those are now under the jurisdiction of the puc. we have been working with them in recent time subsequent to the transfer. we are developing a strong relationship with them in that regard. especially important, and overarching activity, the termination of modernization strategies. -- the determination of modernization strategies. it was a genius system when it was launched, but it is 100 years old. we a imagine there are certain aspects of the system that could be modernized, in other words, aspects of the pipe network that could be reduced.
5:51 am
if you look at the system layout, it is focused in the historic district. there is logic to recommend that the system should be expanded into other parts of the city. that is the precinct of the examination of the study, as well as examining certain types of networks in the city. that is the overarching activity that will take place over the next 18 months approximately. here is the schedule. that will take a period of time. that will not inhibit our ability to get under way with developing the core facility projects as well as the cistern
5:52 am
projects. we can arrive at identification with regard to stearns, working with the fire department and puc. we have already collected ceqa clearance on the above ground facility. we are ready to go. that is really a matter of the first bond sale. supervisor avalos: do you have an extended schedule as well? this schedule that you just showed us, that is for the early phase, mostly design. >> exactly. we needed a partner in the puc to develop the approach. we had certain sensibilities. in the pre bond effort, we accumulated our best minds to see with an effort might be. now that we are involved with the puc, they are lending their efforts, understanding how water
5:53 am
moves around the city. we are going to build their funding plan in that regard. supervisor avalos: in your timeline for construction. that is breaking ground -- we will be breaking grou >> we will be breaking ground in 2012. because we do not have clearance for the cisterns, we will have to secure funds. we hope to secure that in the next bond sale. supervisor avalos: great. thank you. colleagues, any questions or comments from the committee? public comment. >> now budget committee now that this item is on the floor
5:54 am
of the emergency fund in case the earth shakes, shakes, shakes the ground breaks, briggs, breaks in the city in the city in case the city earth shakes, shakes, shakes the ground breaks, brakes, breaks in the city in the city i know you have lots of money i can tell why fix it up all around that would be swell in case the earth shakes, shakes, shakes the brown bricks, brakes, breaks all around all-around in case the earth shakes, shakes, shakes the ground breaks, brakes, breaks in the city. i know you have lots of money
5:55 am
you can fix it up the best in the world that would be swell. thank you. supervisor avalos: thank you. seeing no other member of the public, we will close public comment. motion from supervisor mirkarimi. without objection. forward with recommendations. mr. young, item 11. >> item 11. resolution approving the city and county of san francisco 2010 grant application for the united states department of housing and urban development continuum of care programs and fulfilling the san francisco board of supervisors' review and approval process for all annual or otherwise recurring grants of $5,000,000 or more. >> hello, supervisors. i work for the human services agency housing and homeless program. i am staffed to the homeless
5:56 am
coordinating board. i am here to see your approval of the resolution approving the city and county of san francisco's 2010 application for the hud assistance grant. we called in the mckinney grant. during the last nine months, the homeless board has been working with our service providers, especially those that receive mckinney funding, in developing the 2010 continuing care application. this year under the direction of the human services agency and local homeless coordinating board, we will be applying for approximately $18.2 million in funding. this amount will fund 51 renewal projects and one new project that will find permanent housing for homeless, disabled adults, or families. we have provided you a complete list of all 51 projects and the amounts they are applying for. in general, mckinney grants are used to provide permanent
5:57 am
housing, transitional housing, and vera support services, such as employment or legal services for people that are homeless in san francisco. our projects to absolutely amazing work. we are working on a short deadline with a submission due on november 18. we look forward to your approval and resolution. i can answer any question that you might have about the grant or application process. supervisor avalos:
5:58 am
5:59 am