tv [untitled] June 6, 2012 2:30am-3:00am PDT
i believe this is changing here in city hall. this legislation is a big step in that direction. this will allow small-business this with a payroll under $500,000 to expand their peril of to $250,000 a year. -- their payroll up to $250,000 a year. it extends through fiscal year 20 -- calendar year 2015. this will create hundreds of jobs for san francisco residence. the notion of underemployment, i am sure many in this room and watching know a lot of friends, former colleagues, that are currently working, but may be working less hours and making less wages. hopefully, this will also fuel our economic recovery and continued to do that in san
francisco. we currently have a 7.4% unemployment rate in the city. that is dropping. this is time to accelerate it. before turning over to the supervisor campos: thank you for allowing me to sit in on this item. i want to thank supervisor faell. this is something we have worked with his office on for quite some time. we have had many discussions in the last few years about the pros and cons of the tax cut. i know there are very strong opinions on either side of that issue. from my perspective, the reason why i am supportivef this item is it is an issue of fairness. i think that if tax breaks are ompanies, certain industries, i
think it is important for us to also do something for he small business, which is the one that is the real economic engine that makes this economy work. the vast majority of jobs are created by small businesses. it is especially the case that small-business is have a unique commitment to job creation in specific neighborhoods. what i have seen in my district, and whether it is the mission, is that when the small business owners in those neighborhoods higher, they hire people from the local neighborhood. it is not just about creating opportunities for them to hire new people. it is also to deal with the issue of underemployment. what this legislation does in
addition to allowing them to raise the payroll by hiring new people, it also allows these businesses that might be on the fence about giving an employee more hours to work, it allows them, incentivizes them to actually give that complete the additional hours. it is not just unemployment, it is under employment, that is a big concern. i appreciate the approach that supervisor farrell has done because it reflects the reality of what is happening in these communities. the numbers we have seen in terms of the numbers of businesses we have the neighborhoods like the mission, the vast majority of businesses in that neighborhood have anywhere from five to 20 employees. these are the kinds of businesses that this legislation is targeting and trying to help. the other thing that was important for us was to make sure that we also recognize that
it is important to reward businesses that are following the spirit of the laws around the treatment of workers. i am appreciative that the supervisor was willing to work with us, which is also interested in helping small businesses, to include language that insures an order to benefit from this tax break, there can be no finding of misconduct by the office of labor standards. i think that is a very good ing because we want to promote people following the rules and playing by rules. the vast majority of businesses do that. we want to reward those. i am very proud to support this piece of legislation. colleagues, i look forward to yourupport. thank you to everyone who has
worked on this. >> i'd just wanted to make a couple of introductory comments ts as well. reforming their payroll tax is something i have been working on since my days on the small business commission. i want to sink the small business leaders that are here. we allknow that we have a tax system that is not only adisincs disproportionately impacted our small business community. over the past half year, working closely with our city economist, and our treasury's office, we have been engaged in a conversation around comprehensive business ta reform so that we figure out a proposal to replace wholesale the payroll tax that we have. i do hope we will be able to move forward in the coming weeks
to work on a proposal that we can put on the november ballot. i want to thank members of the business community who have been working on this. this legislation we have in front of us today is important to me forward because of our -- are small businesses need all the help they can get. we do not have time to waste. >supervisor farrell: we did sped a lo of hrs togethe working with a lot the neighborhood merchants. i think they were very valuable in ter of the template and what we did with this legislation today. -- input and what we did with this legislation tod. good afternoon.
i will give a very brief overview oour port. if you have questions, or later i can respond to them. we did lk at this program i am not going to summarize it unless you want me to, ut it d pride -- based on the first yearerro e estimated-- payroll. we estimated that the reduction in revenue to the city wouldb about $2 miion per ye. we rd a cpleolicy conserations. one is t would apy to any incrse inyrt one of t ecd issues we raised that as a business
eense -- expands, to apply to them. we do consider this to be a policy matter. supervisor farrell: questions thank you. much appreciated. i asked our city chief economist toome up. i think one of the things we should -- i should think you personally. if you he any comments or the one thing i do want to ask, we talk about $2 million from harvey's office, we also talk about the job creation. if you could address that. >> pact. as the work on this item, we
determined that it wouldot meet our threshold likely cause did work would supervor farrell, i woul be ppy to offer th the drop we had provided the estimate to the budget an and wedid despitmodeling wt this legislation would have cost in 2010 -- we did it sed on what this would have cost in 2010. we e more in an economic recovery and i would expect the cost ofhe policy to go up. $2 millionper yris a in terms of the job creation, payroll taxes incased to the it reduces their affected cost of labor and incentives for job creation.
the chief question when the tax cut sufficiently designed to minimizehemoun forgone revenue that is spent on payroll and job growth. i do think this policy measure iscarefully tailored ithree wayshat s the cost per job lower than a straigh tax reductionly for net new pay row. it is an incentive for bunesses to add payroll andt emoyment or hours or salarie it does not provide incentives to businesses that are contracting in the city. secondly, by focusing on small than$5,000, at is broadwith less range of businesses in the city. with estimated that to 30,000 businesses. -we have estimated that to
t fact that the ew peril is capped a $250,000 in one year. it does mean that you are eliminating the risk of subsidizing a busiss. you are limiting their exposure to any particular growing business to $250,000. on that basis, ioustimate between $6,500 and about $10,000 a job. that wouldeant job creatio bween 150,200 50,000 job -- $150,000 and $250,000 jobs. >>eno say if it ess an $ milon a year, that is not material for the purpose of our reporting. supervisor farrell: next
speaker. one of the offices we worked with was the tax collector to make sure we insure that this was a relatively small piece of legislation that could be implemented ey. thank you for being here. i do want to thank the willingness to work with our office. it will be straightforward for us to implement. this exclusion would be granted for all qualifying businesses thatake a timely filing of their payroll expense tax returns. what is going to be helpful is this is go to be automated as part of our exng tax return process. it does not require us to collect and track any additional pieces of data. relatively limited.
w've started the conversations with the office of labor standards enforcement as to how we will incorporate the recent amendment to make sure that those businesses that have of finding against them for violatingwage laws are not included. it is going to be a process very similar to how we handle other exclusions. i am happy to answer any questions. supervisor farrell: question thank you. thank you for your work on this. last, we have the small business commission, office of small business. >> good afternoon. i am t dr o the office small bus weak theme was saluting the heroes of our economy. muzzng theeroes of enomy.
the commission heard reviews of -- the amendments you have proposfl in linewith what the commission would support. it would very muchsupport what you were wanting to accomplish th at. the commiion had the same oted by supervisor campos in terms of thisetting to our small neighborhoodbusinesses d helping not y d with thobrowth. express our appreciation and responding to the ne -- wh we have had the enterprise tax credits, we have heard from businesses, when w do sectorbased taxe credits, businesses have also
aid, why not our sector? this will cover a broad range. we are very much appreciative, thank you. survisor farrell: thank you. colleagues, any other comments? we would like to open it up to public comment. still free to step forward and line up over here. i see a number of colleagues here from our all business community. everyone will have two minutes. >> thank you. thank u for introducing this. the other pa that is n. looked at is when morefolks are mo ty will be in the that comes back in a different way. otr effects that are helpful
in many aspects. i wa to address survisor farrell. you reached out and said, how can we do this? can you work with us? that was a wonderful way to do this. that y you got some input from small-business. the oy feedcki gothat was not100% for this at happens in november? what hapns if things change the tax structure? if you do not do something, who kn whais going to happen? we do not ru know what is going to happen. the inot a ason. uspush forwd, lsmove forward. again, i want thank we think is a wonderful move
forward. supervisor farrell: thank you. before you begin, i want to thank the number of my other co- sponsors. in particular, supervisor elsbernd. >> good afternoon. i really plaud the supervisors for putting this through. being a small businesses, we are the folks who ora with two or three employees. it is usually a mom-and-po eration. there are folks that do walking tours of around the city. maybe she will be able to help
somebody -- helper do this. one of the hardest working the y is just amazing. we need to be aboard these people. i think that is what you are doing, -- we need to rew these people. i think that is what you are doing. i think you will find most like what they do. they like the commity thr workith. this is excellent legislation. thank you very much. supervisor farrell: next speaker. >> good afternoon, supervisors. san francisco chamber of commerce. i think we have to recognize an impac hing.is ll have of very costly impacts one
dcade, co 50% more in san francisco than the surrounding area to hire n try-level ployees. d at up, and there is a dienve to hiring. in 2000, there ere 600, people working in san francisco. that recession brought it down to 510,000 people. we never made itback in est crease in e during theirst decade of the 21st century. the first time coming out of recesssan francisco's above the prior high point. even though unemployment is dropping. unemployment wasfour%iv years ago. employment -we are working our
cicism, it iserin dientive the, iisactually ortheof whhat o business week. of smallr to have an additional mploye on staffto sidech eye on that and be able impossible under the current conditions. hopefully, this is going to move thatforwd, create a lot of jobs. small business is the backbone of the economy in san francisco.
supervisor farrell: next speaker, please. >> good afternoon, supervisors. i was looking over toda's three out of four items were originally scheduled for budget anfinanc or the record, i would li to oppose this because i think it committee. the last time i looked it said i look at theseour items a iht. do not see any audits an oversight. unless you want to stretch the definition of the word audit and oversight. if you would like to -- if you wouldliksome uggestions we could try the department of public health. we could try all the drug dealing on the east side of the park. we cod always revisit the
department of building inspection. i am sure does not want to -- i am sure the city does not want to get the fbi involved again. >> i wanted to say that i am very much for this legislation. i hope you are able to get this through. it is something the city needs. supervisor farrell: any other members of the public who wish to speak? just a few closing comments. the reason this item -- we actually have two fiscal committees at the board of supervisors. during budget season, that is the reason why we have a second fiscal committee. that is why we have these items in front of us. i just want to thank all the speakers who came out and the members of our city staff and departments to cannot to speak. always have -- who came out to
speak. san francisco is incredibly unique because of our different neighborhoods. small binesses are the backbone of our neighborhoods. we think this is an important piece of legislation. i want to thank my colleagues. supervisor campos: i want to add something. i do want to thank the lord 24th street merchants association -- lower 24th street merchants association. to make sure the perspective of how this would work on the ground was taken into consideration and to make sure that it was something that was done in the most expedited and easiest way to use possible. i want to thank them for their input. thank you, supervisor farrell. supervisor farrell: comments?
can we do that without objection? so moved. thanyou, everyone. >> resolution appring the issuance of tax-exempt revenue obligations by the california enterprise developed authority. supervisor farrell: we have our bond associate. please come forward. >> good afternn. thank you for agreeing to hold this hearing. the item before you authorizing the sale not to exceed $6.75 million.
there is no fiscal impact of the city and thcity is not rsponsible r repayment on the obligation. there is no budget analyst report. i would like to draw your attention to atypographical error on ge two, line 23, of the resolution. it has 2010 as the hearing date. w held a hearing on april 27, 2012. happy to answer any questions. we also have reesentatives from live oak available. supervisor farrell: thank you very much. i would like to open this up to public comment. public comment is closed. colleagues, do we have a motion to move it forward. we can do this without objection. >> it looks like we need to amend that resolution to correct the date.
supervisor farrell: can we make a motion to rescind that vote? can we have a motion to amend the resolution to reflect the typographical error that was mentioned? ok, we had a motion to amend and send forward. we can do that without objection. thank you very much. chemica items #three and four together? >> ordinance appropriating $1,039,6 of fu balance and the marina yacht harbor operating funds to the recreation and park department. supervisor farrell: thank you. these are two items before us. the first is an approval of the appropriation for the marina harbor yacht fund. the appropriations will go
towards 36 new berths for smaller boats. enhances the west harbor renovation park that is currently underway. the second piece of legislation does a number of things. it codifies the existing fees previously approved by the board of supervisors in 2008. improvises a few other xisting fees,clarifies the department's policy regarding the transfers. clarifies the time periods of the license that is now part of the legislatio we engage in a relatively extensive public process led by rec and park. i attended a number of community meetings, as did my staff. this is a situation where no one got exactly what they wanted, but it is something we all can
ve with. i want to thank everyone from the community, from the yacht harbor, as well athe rec and park department. >> thank you, supervisor. good afternoon. i uswaed to add cplef things to what the supervisor said and thank him for his leadership on oth helpi us identify the funds rthe 36 adition slips and working closelwith e voters. -- boaters. t harbois currently uergoing a renovation funded by a loan om the department of boating and waterways. this 36 additional slips, which is an alternativendas voted theoter as their most would genera