City and County of San Francisco Wednesday, September 06, 2017

test, test test

>> good morning and welcome to the san francisco growth

snooichlz a jane kim and joined

by supervisor peskin and to my left supervisor President London breed

our clerk is john carroll I'd

like to thank the staff at sfgovtv for recording and

staffing this meeting and making

sure that the video and

transcript are available on line

please note I'll westbound

calling items one and two first

and the geo committee will queen

in closed session with a number

of items a time certain on the

closed session items and then

we'll come back and recareen for

items 3, 4 and 5 Mr. Clerk, any announcements?

>> please silence all electronic

devices. Completed speaker cards and documents to be included should be submitted to the clerk. Items acted upon today will

appear on the board of supervisors agenda unless otherwise stated.

>> thank you and Mr. Clerk and

can you please call items number one, and 2.

>> agenda

receiving and approving annual reports for the tourism improvement district for fys 2009-2016, submitted as

required by the property

submitted as required by the property and business improvement district law of 1994.

>> 2014 through 2016 I see

from oewd is here so if you can

please come up to present on

these items and not shush if chris's office are presenting. >> good morning chair kim and

supervisor peskin thank you yes, I'm presenting open on behalf of

the oewd chris our project

manager is here to help answer

questions as he prepared the

annual report I'll be presenting

today and then life on the line

the director of the san francisco tourism improvement

district is here to co-present

with me and update you on the

activities of both the tourism improvement district and the moscone expansion district I'm

the director of policy and planning at the workmen's compensation e office of economic workforce development

but previous he oversaw the

formation of the tourism

improvement district and oversaw the operation in he means of

operating the agreement between the city of san francisco and

the m e d until 2016 so I was

asked by chris to help present this today, I was working with

those districts the bulk of time

of their operation to date

so san francisco traffic

association provides the

administration for the medicaid their, their managed by a board

of directors that is part of the

the nonprofit management

corporation called the tourism

improvement district corporation.

>> so as you May know cvos are

the district governed by two

piece of legislation the 1994 improvement district act and

thanks to supervisor peskin we

have our local ordinance article

15 was amended to state law

southern ways to have additional regulations on prop and

improvement districts here in san francisco

the tip are unique compared 0

other vcr their industry based

economic development for the

tooufrm segment and hotels in particular it is different from

the geographic property district

we know in the neighborhood of

the v v d they're formed under

the same state and local stults

before I continue with my overview of the annual report

nevertheless of financial I want

to ask my colleague the

executive director of the m e d

to present an overview and what

their accomplished to date so since their inreceptions I'll

send it over to you and I'll be back.

>> we're happy to show you

highlights I want to thank supervisor kim and supervisor breed for coming yesterday next day for the industry in the city as a whole as you May know back in 2008, we

had the legislation that I know that supervisor peskin was a

proponent of and helped us to

get to there

to take the funding of the tourism dollars from the marketing and improvement from

the moscone center at the taken

out of general fund into the

tourism improvement community in

general so the hotel community

decided to do self-assessment it

relieved general fund dollars

that used to go to sftravel and comes from the special

assessment by the hotel sf grand I'm going to quickly go through

here and not read them but some

of the highlights going back to

2009 and 2010 we've added staff

as you see over the year we benchmarked on san francisco

benchmarked on moscone center it

is a real tangible number we can

do in 2009 over one $.7 million

hired in the target goal this

year we started to plan the moscone renovation that happened

between 2009 and 12 that was a

56 public-private partnership between the tourism improvement

district to do upgrading not

only nice customer and bathroom remodel infrastructure as well

as the hbac and 2010 a powwow a lot of meeting planners and

clients we had our opening and coloring party to the city hall I believe a lot of you attended

that that was successful to san francisco

we also have a couple of marketing campaigns with the

visitor center at the holiday center 4 hundred and 50 people

to that on the moscone side we

also pursued the goal

certification in the hbac

upgrade in 2011, he 12 we hosted industry travel professionals

bringing in promotional events

from all over the world

generating over 11 hundred

meeting over one point plus billion dollars in spending on

the moscone side we installed

the most robust connection wifi

in the country

in 2012 and 2013 over 12 hundred meetings in san francisco

we hosted 4 hundred and 25 thousand visitors information

centers and had more than $4 million international

visitors in for our team at sftravel working closely with

sfo for the visitors and in this

area to san francisco

in 2012 and 2013 we the moscone

renovation finished and we

started the initial appease for the moscone center expansion

that will happen opening this

week later with the architect we

did a comprehensible design we

started to form the moscone

expansion district

in 2013, 2014 as you can see kind of the spend from the

visitor over one billion dollars in the city of san francisco

again, we participated with sfo

and hosted over 1000 travel

professionals and had over

$4.5 billion worldwide on the

moscone center vegetation center

did an out oversee the moscone

expansion and to the delight you

were involved and helpful that community outreach with the neighbors on that plan to make

sure the building was expanded but also take into account the

will neighborhood and the

neighborhood that the you know what I'm talking about has

become since moscone was built

and published the draft environmental impact report that

year

in 2014-2015 the martin efforts

sales anything and washington,

D.C., chicago, and reaching over one hundred planners have their haeshthsdz in washington, D.C. And chicago that is important

for us to be there to make sure that san francisco is on the top

of their mind and the social

media aspects we in 2014-2015

had over 62 million facebook inreceptions 200 twitter

followers those numbers are

increasing every year in

2015-2016 we started san

francisco dot travel 2 million

visitors as you can see nights

were one.9 million and meeting

at the information center

highlighted the visitor speaking

15 different los angeles's

languages so the tourism that is

really by san francisco travel

the marketing efforts rendered

by the sfravl expansion Madam Clerk, is there any additional business to come before this body? >> that was started to

primarily to fund the moscone expansion that is happening

right now out there our second phase our main building opposite

on saturday to clients we have a ribbon-cutting yesterday it was

an exciting time we partnered that the city and working

closely with the controller's office and the city

administrator's office to find a

financing plan the moscone center is funding the expansion

partnered with the city we're really taking from investment

into a city owned building into

the private sector to fund this

money for the benefit of san francisco

as you can see our architect our

contractors are here and san francisco public works are the project managers.

>> we are going to be replacing 25 thousand square

feet of truck ramp parking with an enhancement I'm happy to say

some of it has happened and

opposite this weekend adding several public spares and building a new park for the community and the residents and

the children and families

moving into here and adding retail use and producing the overall pedestrian assess those

are all in addition to the

building over 80 meeting rooms

and additional space for your clients construction was began

in 2014 a $550 funded project

done if phases we can see the

vintage stereo rudolph don't a

need that impact it it brings to san francisco

as part of moscone expansion we

have a capital reserve to do ongoing improvements to moscone

center in 14 and 15 put indoor

locks at the moveable stores

don't have locks it is important

to our customers we were able to do that and we also have an

incentive fund to help to buy

down the rents of the center and can sometimes be a hindrance to

clients we have funds to offset

rental costs to clients to keep them here

in 2015-2016 demolition of the

major phase started our brutal

was at 95 percent met we have 85

contractors having a 20 percent

local hire goal that was secured in the 2015-2016 year

we also in that year spent over

$2 million to fund to attract clients

so that's my update on a quick

overview on sftravel in the moscone expansion district I'll

send it back to lisa. >> thank you and really impressive work on the moscone expansion that the project

really the great job of

balancing a lot of different needs and wants

within a project that is really

geared towards convention so excited about the improved pedestrian round that is hard to

walk around the center and also

the child top lot the children's

playground will be very exciting addition for the neighborhood

congratulations for getting the

project on time a aggressive

timeline for the first convention started.

>> they started moving on in today. >> very expressive work so thank you for the entire team

and making sure we got this done

on time and the including the neighborhood. >> thank you for all your hard work and helping to connect us

with the neighborhood group.

>> thank you

lisa as oh, I'm existed that the

moscone will be zero emission on completion a future accomplishment very excited.

>> agreed and you know it is

amazing we started this tip you

know 10 years ago at least now

and at least we started the plan

for that the moscone expansion

now is being built like to see 2

within the timeframe and all the

clients by the hotel it is

magnificent and all the tourism

made that happen quite a success.

>> I'm providing the findings of the tourism improvement

district with the oewd conducted

the first seven years from

July 2009 to June 30th, 2016,

the resolution the annual report

covers that time period and for

the m e d to improve the annual

report from June 2014 to 2016

there is detailed memos you have

no. Your legislative package and the annual reports that were smimth as well as the audit in

the moscone expansion district to the office every year they

submitted them to us we reviewed them we're here presenting them

to you today to get you

up-to-date to come once a year

to present the updateed ones the 2016-2017 I believe annual

reports are due in October so

we'll be coming to you in the

spring with that one, the tihdi

they've over seen by the board

of directors and a tourism

improvement district but they've

over seen by oewd does have to oversee their management architecture with the city to make sure they're in compliance

with what is in the management

contract the city has with the

districts and we over view their annual reports to the city and

we work with the controller's

office to look at their audits

but in addition these district

unlike the other cvds they

collect the assessment and perform actually random auditing

services to make sure the hotels

are declaring you know the

proper formula and claulth the rates the mission forms do audits to make sure that the

hotels are in compliance and

they disperse the amendment to

the m e determination and dtx provides the disbursement information that is also verified through an independent

audit for those two districts

taishgs and the controller's

office because we're working on

projects together and some of

the resources for example, from

the moscone xanls districts are

used to pay back the bonds the

city took out to fund the construction you know we're very

aware of what is going on a

monthly basis

so these are the fiscal years

we're covering and so citywide

hotels citywide that rent rooms

to tourists are subject to an

assessment under the m e d as you can see those documents

represent where the hotels are located where we created the

districts so one is in the red

area those are the zones hotels

closer to the convention center

with the engineers to have a

higher benefit they pie a higher

assessment rate the numbers

outside of the box pays lower

and the assessments so for both districts are different as laid

down out in the management plan they're based on a percentage of

the room rent collected by the

hotel so the assessment flux a what the doesn't make sense the

hotels or the rooms that the

hotels charge the economy

impacts how much assessments are collected

so that provides an interesting

somewhere you look at their

progressive budget some have

been able to collect more

because we have been fortunate to have a good tourism segment

in the last year's

so the tid they're assessing the

hotels the original budget for

the $27 million is formed from

January y509 and expires in

December 2009 if the negligent

year as of the day a term of 15

years the moscone center is in

the fifth year a term of 15

years oriental year one budget

was estimated $19 million it

expires in 2045

so the benchmarks that oewd look

at in the annual review process we look at evaporates between

the management planned budget

and the fiscal year budget there

is a difference between the

annual budget and the actuals

expenses we monitor and track carry forward any assessments

not spent in the fiscal year

carried forward to future years

so I'm not going into go into

details about the service is

area life on the line provided

that as has provided with the inreceptions but I'm going to

show you what we looked at in

terms of the budget so for

fiscal years 2009 to 2017 to

provide data to us and meet the

management plan and requirement

regarding putting a projected

budget based on what the estimated collections and providing annual budget every

year with the actual funds that

they are more likely to receive

based on the current planning so

they do have the flexibility to

allocate their resources more flexiblely as some of the cvos

so the original plan as margaret

and promotion to be

approximately 70 percent some

years lower and some years

higher as you can see-and

than the budget versus they have

to look at the current

projections for hotel revenue

and adjust their annual budget based on the projects and they actually spend every year we

track as you can see the first year they pronged they'll spend

was a little bit out of line

with what they spent in terms of

they spent more on marketing and

less on admin but all the things

we've tracked for 2015-2016 they normalized their projected

budget was very, very close to their actual expenditures

and even every year have carry

over and so we track what the

carry over is for and they have

to state what the carry over is

for they have carry over sometimes marry reserves you

know and then for different

programs sometimes for admin and

convention center upgrades

capital incentive funds that's

how they budget carrying forward. >> is there anything else to definitely highlight from the report.

>> you have the information on

the m e d to see how their

budgets and active uses were similar my main I couldn't has

been around the website and the builders really important to put

the agenda in the notes for all

the management corporation meeting on the website we

recommend they put the past

minutes but make sure they have consistent agenda that's the one

area we want them to improve on but the fact that you have

everything here he know you have

a lot on our agenda thank you for your time.

>> thank you so much and again, just want to reiterate my thanks

to the team I think that this is

had an incredible work and you know that this revenue is

acceptable for us to provide the services we believe it should have around education or healthcare we know that this is

an important part of the economic function so thank you, thank you for all your hard work

and but also as the supervisor that represent the district we appreciate partnering with the neighborhood to make sure that

is a site that continues to make

residents feel there is a place for them as well so thank you

any questions from the community members. >> one question given the

large number of years in the tid

that are before us this is the

alaska last of the backlogs is

that true?

Laughter:   Absolutely.

>> thanks. >> thank you, supervisor

peskin actually, I'm sorry I have one remaining question I know that

the moscone project contributes

to the yerba buena island to

help with the maintenance I'm

sorry, I should have asked this

I wasn't sure now that the fees have expired.

>> I don't know it is in of the

a resolution owe know that john the manager for the city of san

francisco is working I think

with the new consortium that is

starting up and so because of

the be redevelopment and ocii

and a new consortium I'm hearing

at the end of the year he's

taking the lead to have the

final financing now that the

moscone center is complete.

>> how we continue to maintain

the gardens at the level they

current are open space it is raw and really enjoyed by the workers and resident what I want

to make sure we are able to maintain that level.

>> absolutely I'll put a bug

in john's era.

>> seeing not oat questions from community members any public comment?

On items one and two? Seeing none, public comment is

closed. Colleagues, can we move forward

those items are recommendations

to the full board and I see

nodes we'll do that without opposition

Mr. Clerk, call items 6 through 10

>> agenda items 6 through 10

are ordinances and resolutions

authorizing the lawsuits an exclaims against the city and

county of san francisco.

>> as I mentioned we got a

request to move these up after

we vein we'll reconvene in open

session and hear items 3, 4 and 5 at this time we'll open up for

public comment on items 6 through 10.

>> any public comment?

On items 6 through 10 seeing none, public comment is closed.

at it time we'll be closing

chambers so we asking the members of the public to exit at

this time and on the doors and

reconvene >> (Clapping.)

>> my name is lena I'm very, very proud principal of our

amazing middle school in the

mission this is my 5th year as

principal 8 years and part of

turning our school around from

the lowest perform school to a

growing school and this fall on

monday welcome seven hundred and

46 and 7 and 8 gardeners sweet spots building we're excited about that. >> (Clapping.)

>> and want to say a there is a lot of things gone into the

turn around of our school and blooets but say you something

close to my heart as a teaching

staff we talk about brain

science and we talk about part

of brain called the amygdala la no one knows

I'm used to hand raising we talk

about the part of the brain when

is it calm when students feel

safe and know the adults are

created a environment that is

calm and structured their brain

a calm their e message and focus

on learning and able to critically think to engage in academic risk-taking all the

things we want for the students

especially, when I think about

closing the quality achievement

gap we thought about all the

ways that are students feel safe

in the building involved us

thoughtful about the streets the parking working with public transportation and our security entering the school gone over

the emergency drills within the

first couple of weeks all those

things insuring our students are

calm and ready to learn I'm thankful that mayor ed lee is

focusing on the topic and appreciative you've chosen to

come to everett to talk about public safety in public schools

now I'm introducing the

wonderful mayor ed lee. >> (Clapping.)

>> well, thank you principal

van heroin that is wonderful to

be here at everett middle school

and you know, I get he get to

society myself with all the

wonderful people whose agency are important in the message we

have today and the message we need our streets to be

satisfactory for the welcoming

of our kids on the first day of

school on monday it is so

happens every middle school is part of a our middle school

initiative so I'm layers focused

on what happens here principal

those kids are at a tender ample

their futures are dependent as

we would be collaborative's do

in support of our public schools

education thank you particularly

to all of the energy response and law enforcement

representatives here from our own police and fire department

to our chp chp to our department of emergency management, and all

those that are working so that

if we can educate the entire

public in particular the driving

public around our schools it is

15 miles per hour that's lower

than all the other streets in our city

not only be aware strictly abide

by that didn't want to see our chp and police officers give you a ticket ambassador more

importantly you're seeing don't

want the accidents that are

attributable to peed exceed e

speed is according to the health department they've can study it with the mta and all the other

agencies about higher levels of

safety speed is still one of the

killers of high speed on the

street when we have kids coming at the numbers we invited

to come and parents walking them

dropping them off and kids now

interacting with each other we

want everybody to be safe I want

all the enforcement agencies to

focus on safety for the kids

that's why we are neatly in supervisor sheehy's district

he's here because of father

father and certainly as a public

official he is joining with all

his energy do make our streets

safer to him and you'll see

supervisors will that will do

salary with all the district on

monday requires us to have a

higher level of safety reduce

the speeds and make sure not all

on law enforcement we have to do our part in educating everyone

on the streets particularly

those who drive slow down calmed

and be aware don't make

suspected mistakes there are no

accidents more one people we

can't say their accidents we are intelligent human beings and

ought to know how to allowance

and make sure we're driving our

vehicles in a safe way that's

why we and I maxed those

agencies to the student delegate report r unified school district

and now have the privilege of

making sure our schools are run

properly our kids will get a

good education along with shamann walton and other trustees like hydra mendosa-mcdonnell and others

we're investing with draufts and

all the principals and teachers

we'll have a wonderful education experience this year and every

year but that we celebrate the will environment of a higher

level of safety for everyone so

that education can take place

without interruption my

>> thank you, everyone we're

ready to vein back into open

session

so May we take I'm sorry city attorney Mr. Gibner john gibner, deputy city attorney. For the record during the closed

session the committee voted by 3

to zero to forward 6 to 10. >> send it to the full board with a positive recommendation. >> and I'll make a

recommendation not to disclose

without opposition thank you, Mr. City attorney

items 3 and 4 together.

>> responding to

recently-published 2016-2017 civil grand jury report, entitled "accelerating sf government performance-taking accountability and transparency to the next level."

>> apologize we have a new

system and the board chambers

after labor day we're working

through technical difficulties.

>> how much did that system cost ron.

>> contained in the accountability and transparency to the next level."

>> affirming accountability

and transparency to the next level." >> thank you Mr. Clerk. >> first of all, welcome our civil grand jury back to it

chambers today thank you for

you're volunteer service to

service on this jury I want to

start with an introduction in

the floor person kathleen and

then go to the presentation from

the chair the committee lawrence

than hear from the mayor and

controller's office on their

response I believe that both melissa and the mayor's office

from the controller's office

will be presenting on the responses

and after that we will hear from

the committee chair to have an opportunity for a brief rebuttal

so once you've heard from the commission read into the record verbal motion on the recommendations that do require

a board response

and then you know we'll go in

that order thank you for thank you for being here. >> thank you supervisor peskin and supervisor

kim I'm the floor person kathy of the 2016-2017 civil grand

jury we're proud to be here for

the first report "accelerating sf government performance- taking accountability and transparency to the next level." before introducing the jury

presenting this report I do want

to say during our term we found

the city staff people we met and

met with many of them to be assessable, intelligent and

commented that was an honor to

work with them we had a great

year now lawrence the chair of

the committee that prepared the

accelerating government performance report an independent consultant that lives in san francisco with his

wife and two children.

>> thank you, Mr. >> good morning chair kim and vice chair supervisor peskin and supervisor President London breed it is a

pleasure to be here to share our

work I wanted to recognize 3

groups who played an important role in contributing to the government here in san francisco

the first is actually all the members of civil grand jury

volunteered their time so the

folks from last year's jury if

you're here please stand point

stand up to be recognized I want

to paid attention to kathy the

floor person she did a heck of a

low shepherding lots of juries

and put up with me so thanks to

her the second person I'd like

to recognize a number of n go

that provided valuable input and

services to the community groups

like the san francisco public

press, california aware and california forward and the civil grand jury association of san francisco

a number of those groups are

represented here today their

work in many was way extremely

important in developing the

analysis and finding and recommendations

the third group I'd like to recognize briefly members of this committee

chair kim you've been a strong

voice on housing affordability

we note the public crisis is now that is vice chair supervisor peskin

I've been strong voice on issues

of performances with 9-1-1

service levels and disabusing

the way the city or Miss Categories potholes and supervisor President London breed has been a vocational

advocate and a strong voice on affordability she led the call

for the recent performance on the homeless service with that

said, I want to start with a

quick confession but if you have

questions about the power point

please go ahead I'll spend 7

minutes to talk about first and

second what we found so in short

we start with a fundamental question noting on the one way or another

high levels of public frustration and on the other hand, a government budget

operating budget that is

increased by 100 percent over

the last 10 years why is it

according to the city's metrics important issues like homeless

and affordable housing and petty

street crime have not gotten

better in some cases worst we look at starting with this question the basic operating

model the city how it works how

the government manages the

performance and how that is and

recorded to the public the focus

of that experience was the only systematic performance

management system that the city

has today which is the performance score cards

framework you all know the score card framework is managed and

cooperated by the krorld they're

a small team performing the

coagulating of data and star-spangled banner and report

to the other branches of the

government under the city

charter the mayor makes that the accountable executive the score cards are really a way for

reporting on the mayor and the

governments performance so the mayor to communicate that performance to the people

alongside of the looking at that

we look at what other cities do how they handle performance

management their approach to

acknowledge was we looked at 4

models austin, sexual assault,

new york city, philadelphia and

no city is a perfect model for

what we have in san francisco again collectively their

experience their overall

examples suggests things we are

important for reinforcing a

number of finding but what were

our findings do you only 3 things first of all, barley

anyone including people that the

building is barely aware of the

performance management for san francisco, and, secondly, in the

most important measures most

important areas to the pep of san francisco homeless and other

areas no goals or clear goals or

the goals are wrong for the

indicators are wrong or need to

be up there

thirdly, this is a little bit

embarrassing other cities are

way ahead of you do we want

seattle to be head ahead of us.

>> did you say austin or boston.

>> no austin but boston would work too.

>> overall we had 8 finding

which are relatively brief I'll

read them one by one for the record finding number one, the

broadly public a barely aware of

the score card and hampering the

progress secondly, the executive director of the san francisco government the mayor didn't

directly report to the public as

it is done in other cities

finding 3 the performance score

card encompasses too many

indicators some are of great

importance anothers are much

less significant and finding 4

having performance indicators

without associated goals goes against practice in other

leading cities and limits the

public's built to understand how

the government is preying and

citizens have no means by which to systematically access the

governments performance relative

to other cities in contrast they

provide the information to the cities

finding six the performance

score card framework is not integrated into the san francisco government planning

process other than occasion and budget discussions it's true

value is an extent to which the government planning is directly

linked to the performance score

card and finding 7 the specific indicators within the score card

framework detract it in the

areas of gravest public concerns

should be upgrade to reflect to

address the public's greatest concerns

and finding 8 noting the serious economic inequality between the neighborhoods and communities in

the city and consist with the

cities understanding of social

inclusive policy the performance

score card should gage

addressing the gender and racial

entities from those finding 14

recommends ruled

essential for the community consideration these

recommendations consisted or

constitute a non-partisan blueprint to include the transparency and accountability

and the performance of the

government we're pleased that

the mayor and the controller is

accepted the large majority of recommendations therefore in the interest of time not going

through each one, however, if you have very specific questions about the recommendations we're,

of course, available to answer them.

>> I want to make one more

comment before closing I'll

speak bluntly I'm not sure why

it takes the citizens to point out in the areas of government

that matters most to the public

should be clear goals, clear indicators and recorded

regularly to the public

and I'm not sure why it takes volunteers citizens taking their

time to point out that maybe the

government should put on the homepage the government's website and the mayor's website

of the performances of their

government

the irony in the mayor's best

interests and the interests of

all the elected officials to get the information out that the academic research suggests

clearly that the more the public understand what is going on what

is done on their behalf the

efforts, the progress or lack therefore they'll trust and have

confidence in what is going on

not for in case simon anyone is

running for mayor this is a

potentially a good point to think of chair kim and supervisor peskin and supervisor President London breed thank you very much attention we are open to questions, of course, have responses to the office of the

controller and the mayor thank you.

>> thank you so much and again

want to thank you and the civil grand jury for your work on this

very important issue and your presentation

I had to chuckle when you said

you went through the halfway the

city hall and not unaware of the performance thank you for your

work at this time I'll move to both the mayor's office and controller's office for their response and then I have questions but I'll wait until we

have everyone speak on their presentation so.

>> and let me add that supervisor peskin.

>> I was very-I have an on

and off for the last 20 years interest in the performance

score card particularly as it relates to the budget which is

the best time of the requester

year for the board to pay play

it's checks and balances and no

questions in my mind that there

have been moments of advancement

in the area there's been a lot

of backsliding in recent years

not just out of executives

office but this bodies

responsibility to take those

measures seriously everything in

the report is a no-brainer. >> thank you thank you very much thank you

and so at this time oh, melissa

white house representing the

mayor's office is here to

respond and go to the controller's office. >> thank you chair kim and supervisor peskin

for having me here first, I want

to thank the members of the

stockton for look at this important issue and my father

sat on the civil grand jury I

know how much time so we're deeply appreciative of everyone time we agree the issue is important we work closely with the controller's office for many

years on tracking and reporting

of performance measures as vice

chair supervisor peskin noted

and sitting on the budget and finance committee they asked

scott wiener's asks we review the thousand plus measures to

include in the budget and was happy to see people asking questions from the departments

as they came up and taking a close look at the measures we include and making sure the departments are prepared in the

hearings to answer are questions

and familiar with the measures

something we're proud of as the

website launched in early 2016

it was collaborative effort

between our office and the controller's office if in the all credit to the go to the controller's office it is a great website to highlight performance measures and interesting work to mrooikz and

we'll augment the measures in the performance score card as

well as linking the budget

altogether I'm also I'll be happy to answer any questions you May have. >> as this committee would like me, too. >> thank you very much. We

have a summary of the mayor's

office disagreements what we'll

be working on.

>> I will walk you through whatever you prefer. >> move to the controller's

office for a response first and

why not ask questions.

>> okay. Thank you. >> good morning, supervisors. I'm the director of the city performance within the scope in the controller's office

and just in general again I'll

like to thank the civil grand

jury we know how time consuming

they were polite and professional and worked well

with us and with the data key

cards they looked at the performance score card and the other materials in the program

so follow-up on twitter sf city score cards we know we've got a

lot more work to do to get the information out to the public we're interested in

understanding how it is perceived by the civil grand jury eyes and again, the good

news we think agree with 7 out of 10 of the recommendations for

the most part and give us advice into the score card

the finding I think there is

more disagreement but really

think reasonable people can

disagree I see a steady work to

improve the acres that and add new products and make them more

available to the public I think

the perform is the best examples

of sfeg and we have work hard in

particular with the score card

is increase transparent and

nicaragua measures in the budget hearings the score cards made an

effort to pull out the ones

critical and put them into

certain areas so people can choose the won their interested

in and allowing people to kind

of move in and out of the details they can look at what

they want and not what they want

so that's our architectural if I

can beg indulge so show you the

score cards and you'll be interested in the architectural then I won't go over the detail of our response to the civil grand jurys finding and

recommends you have our letter in our response table I'll be happy to answer any questions you May have. >> but unless you want to

don't need to do that but show

the score cards for the public

through the architectural that will be helpful.

>> I'm natasha run the

reporting out of controller's

office and we did a diving on

the breshgz so I want to give a

high-level view a big piece of work to educate the policymakers

how we're doing this slide is

listing reporting items so every

year due in October everywhere

we'll publish a report over 1000

as I mentioned we in the maybe budget in the string publish a subset with the mayor's office

and do on annual report on citywide benchmarking we plan to

release in February and do the performance score card everyone mentioned with the idea of

trying to get to how to better

condense a large volume of

information into a way that is educational for people looking

at the 8 policies areas we cover

we had previously had a pdf table report called the

government bar replacement we looked at other jurisdictions to

see what makes sense for the city and county of san francisco

was a lot of areas to cover 8 areas you can go into public

safety and look at crime and

9-1-1 response volume and look

at some of the case loads in the

pointing areas so the ability are parks and libraries and

potholes and transportation some of the key components metrics as well as environment the economy

was a prior product of the

economy barry

ometer-on each score card an example of the transportation score card the

list of what the measures are with code indicators those are how the performance is mediating

the target I know that is

mentioned in the report some

measures that don't have goals

right now those measures are around counts like street

cleaning 9-1-1 call volumes awhile some of the survey

measures will be added adding on

projections so we will have

colored indicators higher or

lower than what we expected with

the department do and added since the civil grand jury

report came out a little bit

error arrowed indicators has it

gown up and down but a wealth of information on each perform measure in the past thought

information was lacking so if

you go to each score card

measure I've chosen one that

that is up in May on commission.

>> at mta so how the start and

how the past results who is responsible for that descriptions and measure why it

is important why follow it was

has historical data do download

the discussion how the agency is

performing and then links to

department sites and data

that's it.

>> natasha to follow up on one

we on the budget committee this

last summer and maybe a question

for Ms. White house have we

landed on which performance metrics end up in the budget

book and why one of the things

I've discovered having not been on the budget committee for a

better than a decade from year

to year different metrics were

you stuck in the mayor's office

you could not track them some

are remarkably meaningful and

some not so much can you help me out.

>> it will be in the annual reporting we have to keep track

of that every year we work with

the mayor's office to have them

review the measures to check and

see if anything is relevant and

they can talk about that more

directly it is an educational piece if in department section we are also going to be working

with the department to make sure

those measures are better maybe

not see that but some of the

tracking at the department level

and not at the individual level and trying to put us in the

shoes of public what is the most

interesting things we want to

get across but with the past

performing score card so it

shows up from the mayors information. >> I know we'll get to the

specific recommendations the one

I was existed about can get

excited about recommendation 4.1

the nexus before a performance metric a goal target that is where the rubber meets the road

information is nice as I see that ambulance response time got better in the most o month of

July you feel good about that

but no direct correlation during

the budget season as the documents brptd property by the

mayor and the board this means a

programmatic change that is

having the conversation with the

budget analyst office yesterday

missing in the format. >> oh, okay.

>> I the President To go through some of the responses

and the comments that were made

both but the mayor's office and the civil grand jury first of

all, confer with supervisor

peskin I think absolutely vital

that we link our performance

score card with actual goals to make sure that we're staying on

track and linking it to the budget expenditures we know we're submitting resources and

shifting the goals we vault I

want to say that I like one of the civil grand jury

recommendations which is that we

I'm not saying we limit the

metrics we have over 90 but I

like the idea of highlighting a

smaller category of them to ones

we know our city residents care about I know powell or survey in the city that was included isn't civil grand jury report but I

think I can say from the e-mails

he get that street cleanliness

and homelessness are at the top

of residents are concerns so a

way do you you do the evaluations but highlighting

less than thirty we're not

inundating the public with so

much information impossible to

go through and irrelevant so I appreciate that suggestion we

want to make sure the data is

bite size but also narrowed to the one that the members of the

public care the most about I'm

curious if we can implement that.

>> I know disagreement this

was on 3 point is recommendation.

>> yeah oh, I guess in general when I mentioned part of the

design the score card was to

take advantage of of the website architecture that lets the people choose the level of

detail for exactly this reason a

lot of noise in the media market

and increasingly not print we

don't do electronic media we're

trying to hit a product that

lets people look at highlights and focus but also drill down

and pull up data they want to a lot of stakeholders organization

in san francisco want the high-level of transparency so

the choice that natasha showed

you to try to let people focus

and explore them or not

the choice now 90 measures in

the score cards themselves was a

longest active progress between

the mayor's office and our

department pushing for what

should be in there I can't

imagine run a complex mta or the

hospital to have the measures

that help you run their

operations very often it is with

too complicated we had past civil grand jury reports that

said we didn't have enough

measures I am saying this we're interested in trying to hit and sweet spot the score cards is

out there for a year and a half

and we are doing other things with the material we're twitter

on it and presenting to a couple

of professional krejz

organizations the upcoming we're

gathering input and I'll be happy to meet the concern I'm telling you some of the things

to try to get to it.

>> I recall your or natashas

presentation as we're going over

the comparisons to other cities; is that correct yes the benchmark report is a

separate product we mexico's it

in our letter it is again one

we're proud of very detailed

methodology rigorous we dwron and look at how our function

compares to its something of a consolidate city and county that

function looks like it is

different you need to choose

different comparison cities and

recalculate a likeness for every

measure so the methodologyal

rigorous and benchmark a huge

upgrade over prior years and

took some of the measures and

included those in the score

cards be architecture partly because of civil grand jury show to the public

context and do more of that as well

>> and then one other question

which always bugs me every time owe look at those things

announce with the budget process

some departments say we had 5.7

muni crashes other departments

say we service 75 thousand

unduplicated clients I always go

after those departments I know

you didn't service 75 thousand

maybe 75 thousand and 80 but

when I see those kinds of numbers someone filled in a

blank on a performance thing and forwarded it to what extent that

is not part of the civil grand

jury report do you independently

verify the information you're getting from the departments.

>> we put hours in our work

plan to go down and test with

the department and look at the underlying details and find out

where this is true or not or

something is checking a box and

it is mentioned some of the other performance in the city should test those things I look

at the test that are published by the colleagues I don't know

if they have the same rigorous

details that we do I have

confidence in our program I'll

be interested to know if boston

or new york went into the underlying data the short

version we had a few hundreds

hours of that testing every year and try to put the important

ones or ones we can look and see

if nothing has changed we can if someone has been petitioning and

design our testing. >> okay. >> I'm sorry and we'll come

back to the city manager and

allow you time to respond but to

the website architecture if I

can get more feedback that is a

home page you went to. >> yes.

>> first of all, not clear

where you'll check on data that

is an issue on the minds of the

resident how the city was doing

on meeting the goals on addressing homelessness how will

they search for that.

>> it is one I'll let natasha talk about that. >> I think a member of the

public what have to look through and hope that is we're going to

be working with the department of emergency management soon to

look at doing some redesign on

the website that could do some differently highlighting so we can make that easier once our on

the page you can't hover over

the top all the score cards they

fall down you don't have to

click around but go through not on a mobile device.

>> if you want to look at street cleanliness. >> street.

>> if I had to search for

those the e-mails owe get the

most anecdotal is not based on

data but to cleanliness and

street and so if there's a way to somehow highlight that and

make that easier for the members

of the public to search for the items we highlighted so those

issues are clear to the members

of the public how to search for

that that would be great I think I'll like to understand what if

you click on the issues will

discover those are questions I

have but before we devolve into that I want to go back to the

civil grand jury for our brief

response I have still if you can

I saw that in the report you

compared our budget and how much

we spent per capita on services around the country and san

francisco ranges in the highest

how many of the cities are

budget and county functions. >> that's a good question I

know that ben the corral is

pointing this out it is true

every city is different to

compare apples to apples but a

couple of cities philadelphia is

one I believe new york city is

another that as combined

community and city functions

difference hard to make perfect comparisons however, I think if you look at

the data the data we had and could get the best indicate out

there pub we have the most

expensive public services of new

major city and I think that

needs leads to a number of points and questions you made

about the need to verify the

results of the performance etc. Vice chair supervisor peskin I

think a great point about

focusing on the need to link the

indicators and goals to me that

is the right hand thought or the

lone of the board and the mayor

to get it together and really

think that is violate I also a difference of opinion with the

controller's office and before I mentions that I want to recognition again, the controller's office has been

extremely patient with us

ben and peg and natasha as other

wonderful a great cooperation from the mayor's office a

loyalty to the current structure which I said the constitutional

but the people as the polls

demonstrate and chair kim you

asked about this the best systematic of what the people

care about that the polls and the polls demonstrating homelessness and affordable housing and public safety so

let's make those things the

results very, very clear very

easy and we're not suggesting that the controller should stop

anyone of the important work we said several times in and out it

is important what they're doing

is great keep on doing that but in terms of educating the people

focus on that I think that is potentially the most important point let me stop there

>> I want to weigh in and say I share our frustration and the frustration of people throughout

the city your budget as grown

and things appear to be dirtier

or what have you and part of the

it by the way, is drich by an

underlying culture that is not

going to be transcended by

performance metrics so much of

the attitude a complaint driven

if you go to the issue of street

and sidewalk cleaning response which is gotten a nice thank you from the civil grand jury uproar

at 84 percent of responding with

in 48 hours right that's good

but actually didn't ask the

right question why does is citizen have to pick up the

phone to say that the street is

dirty why not have something in

place where we're cleaning that

sidewalk without having to have

a complaint so the entire

question we're asking is kind of

missing the goal the goal should

be I've got one steam cleaner

for every 10 or 20 blocks of commercial corridor we're asking

the wrong we see when you start

to ask the questions the

departments get defensive and if

you ask 9-1-1 response time is

risen but I think we're asking

the wrong question everything is

complaint driven we pat

ourselves on the backs how come

I can't have an inspector to

fill the potholes why does the

citizens have to examine. >> thank you for that

excellent want supervisor peskin

couldn't agree more our general view we have to start somewhere

the score cards is the basis of

affordability now it is true depending upon it May or May not

be more or less complaint driven

for example, affordable housing

the major counterparts have

agreed to ray be a metric more affordable housing the right thing that will not be complaint

driven but a goal and there's

going to be measures across time

whether it is quarterly or annual that May not be complaint

driven but other issues will be

complaint driven thank you.

>> not to put two fine a point

but at some point there is one consist type throughout the

responses which is the word not

note and it is like 70 percent

of responses and they all say

this recommendation has note

been so we might want to clean

those up for prosperity. >> yes. >> would you like to respond to any of the other comments

made by the mayor's office and the controller's office in response to the recommendation.

>> thank you actually in the

interest of time check in and acknowledgement they've september the recommendations I

don't have any fuven comments.

>> but appreciate our work I

think that I appreciate that the civil grand jury highlighted this issue again, our

performance score card is new

and so it will takes to educate the members of the public and

even I guess our own members of

the city family on the score

cards but appreciate the work how to better generate awareness

how we make sure that the

government is doing its job and

meeting the goals to the members of the public.

>> I want to add after this

year's budget process a uniform

desire by the members of the

board to revisit the budget

process I know that the budget

and analyst has been talking to individual supervisors and

departments and what have I

think one of the things up want

to get out of new improved budget process much more

adherence and time spent on talking with the departments

about performance measures and goals so for the record as long

as I'm on the board I'll continue doing that.

>> appreciate that thank you.

>> thank you so at this time we'll open up for public comment

on items 3 and 4 if you want to

speak please line up on the

right-hand side of the podium. >> seeing none, public comment is closed.

On oh, -

>> good afternoon, supervisors

I'm richard speaking on behalf of the californians aware

californians aware is a nonprofit organization based on

in carmichael near sacramento

and the general council executive director of the

council is jerry frank you might

know drafted the original language of san francisco sunshine ordinance and his

sunshine language is a template

used by localities and counties

and so forth across the country

regarding today's report before

us now I wanted to convey a

message that Mr. Frank asked me

to speak to

he said a main problem with the

civil grand jury report and the

responses is there seem to

repeatedly encounter while the

city amasses huge quantity of data that is too often not

converted in the indicators so

the public can readily navigate

particularly journalist didn't

mention the state journalists

whose task to have editorial

conclusion that increasing

patient or ill-informed

listeners he didn't give me my

specific works and I haven't had

a chance to look out the

performance the the performance

index to give you an example

myself if you want I'll be happy

to go through it at some future date you know give some examples

I have more than I want to say I

see my time is up so I'll leave the microphone here. >> thank you so much any public comment?

On items 3 and 4 seeing none,

public comment is closed.

So at this time I was planning

to issue the board responses Mr.

Clerk I know that I've submitted

a draft response to members of

that committee and to our city attorney and so read into the record and

have a conversation with you if

you want to edit any of the responses will that work

>> are you asking me if you want me to read.

>> that's what I have right here. >> I'm prepared to row cite

the things but expect a motion to come from the members of the commission.

>> so why not do that if you

can reading do whereas I'll make the motion.

>> okay start with finding f

one the broader public is barely

aware of this utility and hampering the government to communicate the progress.

>> great so I'll make a motion to the board of supervisors

reports to the presiding judge

for the reasons the score cards framework is relevant to the

governance and adding a direct

link to the mayor's office which they've done.

>> Mr. Clerk read out finding number 2.

>> states despite the mayors

role the mayor didn't directly

report to the public as done in other cities.

>> so here actually I'm not

sure if I made a draft on this

motion we do know the mayor's

office has stated that the mayor's office does engage in

performance to the public in

many forums and not sure it is

stopping with the transparency

nor does that address the

controller's office as a body

I'll look to committee if it is

the motion we'll put forward I

know that one of the requests

around krefrnz and trying to

pull that up right now-as

well other related to how it is

put in the website

so this is the findings that was suggested by supervisor peskin

would you like to edit this motion.

>> I mean far be it for

legislative branch to disagree

with the executive branch I was

going to comment with the civil grand jury was presenting it's

report this various from mayor

to marry I remember mayor newsom

stood in front of the camera reciting performance measures as part of the city address that

was the ended up of that but far

be it from the board to tell the

board their disseminated by the controller's office so there is

a way for the public to get the

information from the mayor

chooses to disseminate it there

is some that do it in some other ways.

>> okay. So the motion that

we'll-that the board of

supervisors reports to the presiding judge we disagree with

the finding number 2, for the reasons I've listed but state on

the record we agree it is

important that we believe for the executive office to disseminate information on our goals and performance score card

in many ways as possible without specifically being done great.

>> can you read out findings 3

and for clarity of the record will be a disagree in part.

>> yes. A disagree in part.

>> f-3 the framework

encompasses too many indicators

some are of greater importance

and less some less insignificant. >> I'm going to make a motion

that the board of supervisors

reports to the presiding judge

we read in part with 3 for

follows it is important to

continue to report on all

indicators as current practice

you recommend instead organizing

the public score card framework

to highlight 20 to thirty

indicators to the members of the public. >> Mr. Clerk read out finding 4.

>> f-4 states having the indicators without the goals goes against practice and the

public to understand how the government is performing.

>> I'll make a motion to the board of supervisors report to

the presiding judge we agree in

whole with the reasons as

following having benchmarks and goals with the indicators helps

the city to track the better performance Mr. Clerk findings 6.

>> the performance score card

framework is now formally integrated into the governments

planning process other than a

true value the extent to the

government budgeting linked to

the performance score card framework. >> I make the motion that the board of supervisors reports to

the presiding judge we agree

with the report the framework

are already for the mayor's

office but more is needed for

the strategic plan better aligns

our decision making to the score cards. >> okay.

>> findings f-8 with the inequality with in between neighborhoods and communities in

the city and consistent with the

city's long-standing platform score card should engage and thank you for the civil grand

jury findings this is important

we May have great services but needed to make sure we address

the social gender and quality i make a motion that the board of supervisors reports to the presiding judge to agree with

finding 8 as follows:   the score card framework should be

reviewed for the issues of

serious economic I'm sorry

address social gender and racial

imagining qualities

inequalities. >> recommendation r one to

insure the broader score card

platform and consist with the

website should be placed on the

san francisco home page the

office of the mayor and

supervisors home page by 2018.

>> I recommend that I'm sorry

-that number recommendation r

has been implemented.

>> recommendation number r it consist with other leading

cities in 2018 the married

should have a performance report for the government progress to

the public the public contribution of which should

consist of one posting one no

later on to hosting the san francisco government performance

report not last night

January 2018 on the mayor's home page and 3 submitting the performance report to the board of supervisors for comment

within thirty days of the board of supervisors response the controller's office should

update the score card update for government performance with comments from the board of

supervisors and in response from

the office of mayor with online

so the mayor's office and controller's office has

responded that the number r-2

point one will not be

implemented I'll make a note

that it will not be implemented

it is it necessary why it is not

implemented no?

>> actually a question to the city attorney what is listed in

the response from the mayor's office and the controller's

office is that they believe this

recommendation is not warranted or reasonable to communicate the performance results to the

public and they be continue to proactively publish the

information but they don't agree

to implement those

recommendations john gibner, deputy city attorney.

Whether nail not be implemented or requiring further implementation they'll need the

explanation that will include in

the resolution as long as the

budget analyst reports are corrected.

>> Mr. Clerk thank you.

>> recommendation number r-2.2

come mevengs they should have

the one emission to the update of government audit & oversight committee and the mayor's office

and inviting comments and posting the quarterly on the score card with comments from the board of supervisors and the mayor's office included for public reference

and here I'll make a motion that the board of supervisors reports

that recommendation number r-2 dot it will be commend o implemented in the fire chief with the number of times of

years will be done I think we

should have a discussion where

it is most point out important

bio unanimous at a future

hearing within 6 months

one quick question Madam Chair

the time from the release of the

report June 5th for clarity

wanted to be sure not within 6

days but sometime between now.

>> I'm fine 6 months from June 5th a from here I appreciate the recommendation he

had want to implement it I just want to work with the committee

members and also with the controller's office to decide

quarterly is the best timeframe

or should be a different

timeframe we'll work to

implement that for sure

Mr. Clerk read out r f-3 point one.

>> in consolidation with at government groups the controller's office should prop

a narrow set of score card

indicators likely not exceeding by October 1st relinquishment for the government audit & oversight committee should be invited to comment on the indicators prior to the submission of the mayor's office

and for his approval and I make the motion the board of supervisors reports

recommendation requires further

analysis within 6 months of June 6, 2017, would like to

state again that I agree with that recommendation as part I

think we should continue to do the 90 plus performance metrics

we look at today but look like at a narrow set of indicators for the numbers with the public

and work with the controller's

office over the next few months.

>> recommendation number r had

.1 the mayor's office should

sure that by 2018 every score

card has a goal with all goals

approved by the mayor commodity

with the orchestra arching.

>> I recommend this will be

reviewed at a future hearing

within June 6, 2017.

>> states the beginning of the

year with the score cards framework should be incorporated

into the government depth

budgeting process with the mayor's office requires each department to specific within

the stretch plan, which initiative supports the san francisco score card goals

relevant to the mandate and what they projection in achieving

that goal and two specific within the government submission

how their budget is directly supportive of improved

government performance against

the perform score card goals

most relevant to the operational

mandate and make a motion 0 that it will be implemented in the

future this committee with the government audit & oversight committee will review this item

at a hearing within 6 months of June 5, 2017.

>> finally recommendation

number r-8 in communication with

the community organizations the

controller's office should

assure by 2018 one or mother

indicators are amended or to

assure the san francisco

government is reporting on the equity.

>> I make pa motion that reports implemented in the

future and this committee the government audit & oversight committee will review the item implementations as a future

hearing within 6 months of June 6, 2017.

>> do I have a motion to recommend this resolution to the full board? So moved.

>> we have a motion and we can

do this opposition to the full

board on tuesday September 12th. >> thank you, again civil

grand jury we know we'll have

you back here to discuss other reports in our next government audit & oversight committee meeting we also look forward to

working with you over the next couple of months with the controller's office and mayor's office on implementing the recommendations that we've

agreed to implement here today over the next 2 months so thank you for your work to make sure

that we are running our city for

efficiently in a transparent way that provides accountability

mechanisms to the members of the public thank you

parking garage call the next item.

>> prior to calling the next

item we have the hearing agenda item 3 open. >> I'm sorry.

>> so in order to capture the

future responses should we

continue the item. >> yes. Can we please we'll

make a motion to continue item 2 through the chair.

>> call item 5.

>> a resolution urging budget.

>> companies, pursuant to its

commitments to do so since

October 2013, and to provide an update on public and private equity fossil fuel holdings.

>> thank you Mr. Clerk the

author of.

>> item no. 5-it part of the committee supervisor peskin thank you, Madam Chair and given

the long hearing I mean, I'll be

brief this resolution is

consistent with a noouchl pass

resolution authored by then

supervisor avalos in April of

2013 urging the san francisco employees retirement system to divest from fossil fuel

companies at a time sfers had

$583 million of the pension fund

invested in 91 of top corps that

hold the retail use er reserves

with exxon and shell oil the

resolution urged to divest from

fossil fuel companies under the investment programs and policies

this has not yet come to

fruition without going into that

the retirement board to report

warding level one and two engagement of fossil fuel

companies before we go to staff

I wanted to acknowledge that

retirement board victoria here

who has within a remarkable

voiced for divestment on the

board I want to one thank him

and two give him the opportunity

to speak with us and 3 figure

out whether or not before October the 11 at their next

meeting finally vote to divest as commissioner vice-President

Stephen nakajo has said do current, if you will, is not

including 86 vchltsdz of 20/20

year returns 12 pointers and 5

year returns 28 and losers and

18 winners I bring that up

because the real duty of a member of the retirement board

is a fiduciary duty to refund

and the members of the fund and

it is my belief I think the

belief is becoming much more

widening in the wake of the paris.

>> accord and in the wake of

President Trump reneging on the

paris a cord increasing the

world enlistment is that pension

fund fiduciaries should consider

their investment portfolio to

climb related risk with the best

interests of their beneficiaries

reclimatic change is the moral

and social issue of our time and

while short term returns May

feel good by investment

portfolio when we have as we

have here in san francisco a

$5 billion liability to armor or

adopt to sea level rise we May

not be thinking about the long

term fiduciary duties that the

$16 billion fund ultimately has I think that san francisco,

california really be part of the

movement to pave the way in

moving towards non-fossil fuel

low carbon economy thank you commissioner vice President

Mazzucco trying to stop the

deficit time and welcome commissioner vice President Mazzucco /- . >> hi supervisors thank you

for welcoming me first, I'm on my own capacity the retirement board has not given me permission to

to this matter we want to make

that clear and acknowledge the executive director is here some Miss Acceptance on the short

term what motivated me to put

the motion forward with the

fulgs is two-fold one the absolute respect to the board of supervisors answering my

question it was asked four years

ago, we should did you have a

response to the divesting we

should will be able to back up that. >> I put forward the motion to

divest primarily because the

returns were dismal when I looked at it for all for all intents and purposes it

looks like no money in the past

10 years roughly one half a

billion dollars why in the heck

as an investment of $5 million

with visually no returns for 5

years I believe your manages

should have brought it to our

attention and our investment

team should have brought it to

our attention they should call

out it is not return what we

expected it to return and bring forward recommendations whether

we should stay in or get out of

it from no green go reason we've

seen over the past 34 years

divesting from past issues from

May 17th to today I've asked

that our holdings and the

returns data be released pubically very simple question

the public fund a few hundreds

investments let's talk about

this body today schwarzenegger

have the data I'll ask you if

the package if the that retirement board complete with you, look at the hellos and our

returns and make a decision if

you would like to stay in the investment

I made the conclusion not to but I don't believe the public is

given the privilege to look at

the numbers themselves.

>> I had the opportunity to

visit with Mr. Hewish we'll hear

from as well as our colleagues

on the retirement board and it

was their since if I can

communicate it appropriately

that felt being involved from

the pubically traded investment

they can more influence from

within that they could become

activists stakeholders and

change the behavior culture and

investment and encourage these

energy producers to move to a

low carbon economy have you seen

level one and two proxy voting

what has your experience around the governance issues.

>> first, we district attorney

have to invest one half a

billion dollars we can own one

share of each company and attend

their annual meetings and advocate our position

so I think we can be pursuit on making the decision on the

amount of money we invest in the

company and if you want to be at the table to have a lot of

shares or one share I believe that the mere fact

we've not brought forward the

decision to invest or novelist

invest in the last 4 years we

have our he's in the sand and avoiding the debates.

>> has they've been reporting

from staff to the board relevant

to my activist shareholder activities they've been involved

in or the commission has

undertaken. >> I'll leave it up to the executive director to tell how

the staff has engaged the

company we've not been engaged

he was not informed of this meeting a member of the public

that said this I came down open

my own accord the investment is

in front of our body and the debate of this discussion why not clearly send out a notice to the board of supervisors will

discuss that matter and whoever

wants to attend can.

>> my apologies I failed to

inform I've been a fan of your actions on the board

my understanding was the reason

he actually detailed this

hearing was that your board was

going to take the deficit time

up at the last meeting do you

have an understanding why the

matter was detailed and I

requested because two members

with or absent I believe the two

members are in favor and thought

their input would be more

favorable than one against 4 or the entire team.

>> and that hearing is

detailed until October 11th that's correct.

>> I've not been told the date

this is the first I've heard of an October 11th date.

>> why not hear from the staff

commissioner thank you for your precedence. >> thank you for the opportunity. >> thank you sir.

>> Mr. Hewish

good afternoon, supervisors.

>> so relative to some of the

questions he asked sxhak about

the active engagement is that part of the internal conversation since 2013 and

since the board adopt to a level

2 we have a enjoyed this

worldwide there we have a series

of U.S. Public pension plan

members that routing sponsor resolutions in front of

corporations we're stakeholder

in basically actively as shareholder we've done the

letter writing campaigns we feel

that a voice we're combining our

assets with trillions of assets was a more appropriate and

organized way of doing it in May

just May of this year the board

approved our joining the principles for responsible

investment that used to be tied

to the U.N. That is a worldwide

group of 16 hundred asset owners and consultants and investment

managers have the same goal to

change bad behavior make companies recognize the

investment risks associated with

finer risks so we have seen

although slow in coming in May x

son over 050 percent of

shareholders voted to have x son

mobile consider at risk of their

holdings in the future business

plan as far as progress not fast

enough but two groups have shown progress.

>> and it is your-I mean an

investment in bad behavior

particularly if as the gentleman statistics not meeting the

fiduciary duties and so maybe we

can start with the winners and

losers and the gentleman's

contention over the last exactly

not been half a billion dollars

a moneymaker and your invested

in something that I think now

global scientific consensus

could a lead to I don't want to

say the end of humankind but

close to it is there isn't that

better to take our money somewhere else.

>> I'll say that retirement

system has done as much as at

pension plan a one hundred

millions and fossil fuel index

and divested from 9 cools

companies 4 that mohammed's a

term loan and fixed income if we

build it we'll have a loose and

gone from the portfolio in 2020

we've joined the coalition the

two recognized categories that

are activists every season and

so I will say that certainly from the boards action their

clear trying to communicate that they understand the risks

associated with holdings now it

is extraordinary we've only done

it a few times to tell a discretionary manager to divest

from holdings they've selected

to invest on, on our on behalf

the issue of whether we should

hold one share or 5 hundred

shares if you read the

consultant report the opinion it

the pursuit to consider holding

these stocks to divest rising

and inflation or prices are going up and certainly I'll

update the numbers you quoted

we're now over roughly

$23 billion I'll test the market

yesterday was a rough day by

nearly $23 billion and our

assets are shrink to $470 million so there is at least a fact they're losing or

the fact that managers have seen

they need to trim it down we're

holding have been reduced while

our assets have increased over nearly $7 billion.

>> jay can you talk about

other tasks past actions of

retirement system relative to

divesting from obtainable behaves.

>> have termed coal companies

on looking among the holdings

the woifrt and take care mall

coal used for steel production and other I think that thermal

determined by the board and in

action to a state law for superintendant guerrero's from

staying invested in companies

that derive more than 50 percent

of their revenues we have thermal and prior to that.

>> to clarify was that the 21.1 million you divested. >> less than one million dollars.

>> in those 9 companies.

>> so didn't follow the

recommendation that the

retirement board made of the

$21.1 million they identified?

I think total holdings for all

companies was $21 million and

companies listening to

stockholders that was selling

off thermal coals off their

financial and the board focus is

on preserving and increasing

value on behalf of the

beneficiaries so as companies

take action that make the investment stronger investment

facing the carbon risk or the it

degrees issue going forward that

does not incline us to say we'll divest from staff's recommendation the consolidates recommendation was to take so

and so 9 companies that have not

been responsive and not taken action to recognize that

holdings thermal coal on the spreadsheet was an investment

reflex awe of the $21.1 million

that was identified by the staff

of holdings with coal mining

proclamation we need to divest

from $11 million from the coal

companies the complete

>> 9 companies whose holdings

at the time were roughly

$600,000 I don't that in front of me. >> in companies not thermal but coal operations.

>> they have thermal coal holdings not a majority of

40e89dz or the revenues or have taken action to recognize they

need 0 rid themselves of those

coal holdings I don't want the

write-ups in front of must and I'll be happy to present them to the committee.

>> is the contention has been

made by commissioner vice

President Mazzucco it will

illustrate why the managers

investing the money as discretionary managers feel a

place to hold them as a hedge went into place.

>> back to our question a

better thing is firearms the board of supervisors resolution

urging us to divest from firearm manufacturers and identity the

firearm manufacturers that was

just a handful of companies at the retirement board discussion and at the retirement board

suggestion we expand that

restriction to the major firearm

retailers and so the board voted eventually voted to divest and

say to the managers you can't

hold those ammunition and

firearm companies as well as the major retailers of firearms and

prior to that it was I believe

sudan and 10 tobacco and so we

have a history going back to

1988 of the engaging certain

issues social issues through the

retirement board and certainly

some are easy ammunition and

firearm usually not in other types of businesses you're asking them to go out of

business so an easier decision a basically is a as a social issue

we don't want to hold those stock and basically notify the

manages they have a rid the

portfolio of stokes and not invest in the future.

>> what's the investment of the firearms with tobaccos. >> I don't recall I can get the materials. >> that would be great to

understand what that is. >> I kind of feel jay our

making our point for us which

say you have I mean, I assume

that firearms were profitable

yet you made a decision arguably

contrary to the fiduciary a

social matter to divest from

guns the same thing with tobacco

I assume a highly profitable

investment at a boards meeting

they reprimanded-tens of

millions of dollars in champion

dollars you got the important

social issues tobacco kills, gun

kill, but nothing of the magnitude of climatic change relative to the planet earth you

guys are having trouble on this

one even though you admit in the

last 3 to 5 years you have not

performed but make the fiduciary aurjt your hedging against

inflation over 5 or 10 or 15

time horizon the imperative for

cities and states and nations to

act didn't give us 5 or 10 years

but made the decisions in the past, when the fiduciary duty

argument was harder to make

I have been in the 17 years on in and out the board of

supervisors very, very careful

and reticent to tell staff or

the board how to invest the

pension funds something I don't touch lightly but I think and particularly given what is happened in the united states right now where companies like x son and mobile, and others are working to

diminish pollution controls that

whether the clean energy or gut

the united states of america he

can't say we're investing if

that kind of ruinous dangerous

behavior no different than guns

and abstract and arguably more important imperative

which is why supervisor avalos

and supervisor avalos and I attended an editorial in today's

examiner I have to say that none

of this happening by accident

when after you all came in and made your pitch to me I was kind

of reluctant to go forward until

I picked up the newspaper and

read directed to your board your

duly appointed board that was

written by an alleged expert

that turned out to be fake news

the headlines was basically the

retirement fund if it divests

will lose 11 millions it turns

out the study was paid for by

big oil the behavior of going

and getting the cad do and uber institution to write reports

that look like you know

scientific you know economists

know what is going on but paid

for by the institute of america telling the board members not to

vote for it a bad investment

decision if we make the fiduciary argument jay it is incumbent to do what the

commissioner wants to let the

public know what the performance is

relative to those various half a

billion dollars of investment

should be transparent I mean let

the employees how many of you

have take care of 23 thousand,

28 thousand employees should be

making that demand I got an

e-mail during the course of that

hearing with expeditioner

getting to the point for 4 after the board amazing urged you and the commissioner has been trying to get the vote to act if you can't get there and our board it can't get there that think incumbent on me and my employees to get you there I wrote in this

morning examiner if you guys

don't we'll turn it over to the voters of san francisco and

they'll have their choose. >> I'd like to make two responses certainly not the only pension fund in the united

states that is struggling it is difficult for fiduciaries it

would be we'll be the earth public pension plan considering

the issues over the last 5 to 10

years that makes the decision to

flat out divest and get off the dabble or move away from the

table I think that lawless there

are reasons why every pension

board across the united states

is dealing with that is as fiduciaries and the law requires

them to see if this is a prudent

decision and the access to the

stan burger the board sent-

>> were we leaders or followers.

>> certainly an annual report

the board is aware we've lost

money a number of pension boards

are reversing their ban on

tobacco because everyone has

lost money by divesting my

retirement board has not indicated a desire to revisited that discussion I don't believe they will but certainly other

pension plans had faced with the

idea that simply divesting from

tobacco we've lost revenue for

the beneficiaries let's go with

seiu can more of a statement of

you need to clarify our relationship or we'll not

continue to invest in you but

tobacco and firearms the

companies

easily identifiable we'll long

term loss money on the firearms divestment. >> I understand that the argument you're making was that

no longer has done it so why

should to be first, I'm asking a

sign whether we were first on

firearms or first on anything

else because if he were-

>> supervisor I'm not arguing

anything that is a difficult

legal discussion and decision

that every fiduciary across the

united states is dealing with

today, I'm saying that you know

none of them have been able to

come down and do a complete ban

the other thing I'll comment

when you put timetables on that

general that is difficult as. >> item no.1-chief's report. Report on recent police department activities, including to make sure you have one and 80 days or a 5 year period I mean,

you go back and visit some

companies for some pension funds

that have divested and have to

role these things out with that

said, I'm not here arguing against the resolution all I'm

saying my board is struggling

with the same issue that every other member of the every other pension fund board is doing. >> let me say first ask you a

question that is do you or your

staff or consolidates or

managers in any way evaluate the

risk for the liability of having those investments. >> absolutely.

>> you're aware of a general

emerging legal theories for the

center for environmental law a failure to consider climatic change could result in lawsuits

for liability you, you get those kinds of things. >> absolutely.

>> and have determined that.

>> I will say that are works

of largest companies and the

largest holders of big assets

being leaders in the sustainable energy field and if we are really to look to the future and

what we're trying to do it

change what we consider bad

behavior continuing not to

evaluate our final standing

without addressing the potential

that the asset you have on our

books could be worthless in a short period of time but

certainly see the companies have the largest stake in it would be

the people that come there with

the big break throw in

renewables that can speed up the

conversion my personal opinion a

customer a change in the consumer or a governmental

regulation to force the change

and until there is not a demand

for a need I mean the city

itself has to rely on contracts

with those same companies abused

that's part of the our operating

and doing business and providing

services to constituents at the same time, I think that

unfortunately here in the united

states with the present fashion

this government as a government

is not speaking with one voice

to everyone is still looking for a place.

>> the only other thing I want

to add you say a date certain to

divest it puts the staff and the funds in a difficult position

and the reason I want to put my

finger on that to the extent the

voters vote on this in 2018 you

May be given some very real

divestment dates as possible

and the reason I say that you

will have by that point had 5

years to have quest divested in

an odor will I position that is potentially coming from you

can't find your way there might

want to retreat while you can.

>> we'll be interested in the

legal flafls of forcing us to sell without having

repercussions on the board of fiduciaries.

>> I've got some theories.

>> just wanted to add my

comments to supervisor peskin before we move on to open up for public comment first of all, I

just think I don't know how this discussion takes place no matter

the pension fund but included

isn't fiduciaries duties a large discussion about the costs for

the members and I think that

seeing the real horrifying

outcomes of harvey deems to me the investment in fossil fuel

which is certainly linked to what we saw a weeks ago in

houston and throw out texas is going to have an impact on the members of sfers as well the

cost of that is going to be extraordinary going back to tobacco I mean,

the divestment in tobacco has to

be linked with the cost of

healthcare which we provide to

the membership I don't know how

that gets epic in some ways feel theoretical it is easier to look

at numbers and say we're committed to the fiduciary

duties but I just think this is so critical to be having you know the larger conversation

about the costs of investing in

those companies mean ultimately

for our own membership.

>> certainly it will be discussion for retirement board's across the country if we

reduce is carbon risks by the

factor we've divideded but people will buy up our shares in

stoke and hold them they'll building as pension fund as prudent an investment we

certainly not chasing all the

pop outs we're seeing those

stitches access who sustain 3 to

5 years during a business cycle

repeated lose service a purpose we believe we've hired expert

managers understand they need to

hold those stocks even though their losing short term everyone understand they're logging money

and thinks that they are will be

an opportunity to return that

money so we're long term

investors t years we look at as

the horizon for someone that

starts working could I through

their retirement and survives so

our managers we've hired is

experts they choose to hold this

we can go over their shoulder

and ask you to remove this. >> it certainly is a struggle

and what I want to make that

clear is that I believe both

staff and the board have recognized this is a real investment risk no different

than any other larger than other investments we have to vault

that as we buy and as we

basically build out a portfolio. >> you were this is separate

before you were before the board

on a resolution on proxy voting

as stakeholders I'm curious what

steps at that time to examine as

a voting on a proxy as a compensation.

>> we referred it to a

committee that was recently kiss

solved but the investment

committee knows a topic to the investment committee the topic

of executive pay and divests on

board to the issues I believe over the next year at least with

we're planning the calendar for

the investment committee will be

topics brought forward and proxy

voters and staff we intend to

ivy remember the resolution and

certainly of the investment committee chair has indicated he wants to bring that forward.

>> thank you director I look forward to the update as we talk about our fiduciaries duty and

investment it is important we

use our power as proxy voters to

make sure that we believe in on

to divest on our board of

corporate america thank you. I look forward to that update. >> supervisor peskin open up

for public comment on that item auto absolutely. >> at this time public comment

only item 5 if you like to

please-to speak please line

up on the other side of podium.

>> thank you so much chair kim

and supervisors I'm jed senior

policy analysts and one of the

leaders for the-really want

to thank you for this hearing and thank you for your questions

it is gratifying to hear this after the retirement board

meetings this is argument

against this is no agreement

blew and morgan stanley and the

institution it you can think of

it is 12r56r7b9d educates and

the economic damage of climatic

change is towards the portfolio

and must be considered for

fiduciary prurnts I have been to

every he meeting and not taken

it seriously that's why the

comments from the commissioner

today status quo didn't equal

prudence that's the expressive

over that agency any cost benefit of the fiduciaries this is the metric for them will

clearly be in the red when the

public budget will be bankrupted

I need to counter to a total

falsehood on the 0 records we

heard the only pension fund to divest this is false the

washington, D.C. Divested in

June 2016 is it possible how the executive director didn't know

that I mentioned it at the last

meeting and available with you on google divestment throughout

the united states payroll not

done and out of our portfolio I appreciate supervisor kim

question this is totally false

divested less than one percent

of cola I can't remember and a half after they said they're to

do it we heard on the record to say the kind of thing our

retirees zeal with this has to

stop thank you for your support.

>> hi, I'm curtis and part of the apple coalition

you know, I didn't have anything

planned to say but you know just hearing the reason arguments

against divestment or the flow

you know process is just 2017 I

mean this is war I mean, I made

that comment last time like it

May not seem like war but we you

know this the incumbrance consequences of not addressing climatic change is can have the

effects of wary think we have to

treat it as much with that

urgency and you know we're at a point overseeing arguments I'm

sorry just complete bull and I granted I thought like in 2008,

that was a big time to do something by go climatic change

we're here I'm here on my lunch

break from work and have to go

outside of our capacity to what

we can this is war we're

fighting for you know as much as I care about the future

generations this is us not the

next 5 or 10 or 15 years you

know-we had the hottest day

on record exactly that is.

>> I'm kind of I don't know

what is happening anymore but let's go outside of our capacity

to do what we can to convince

people to make that work this is

not history will not be kind to the people that slouz us down

history will judge the people

that sat and did nothing your silence is not good I don't

know what is the motivation to

keep this from not happening

just do is this could set the

blueprint for a wave makes sure

do the right thing thanks

thank you curtis.

>> hi, I'm a san francisco

resident I'm from district 6 and

I'm here if support that have

resolution

I'm also a supporter of fossil

fuel sf and for the apple

coalition been here earlier this

year when the board passed a

resolution the board in support

of standing rock and after that

I started going to the sf

meetings and I just as a regular

citizen was able to find

information about swedish the

largest pension fund in sweden

divesting from a large group of

major fossil fuels and hampton

insure college in the U.S. How

it divested quite a while and

performing better than other universities who had not done

replying so you, you feel that,

yes sf needs some major

oversight that's all I have to say I appreciate your putting

the pressure on the board thank you.

>> good afternoon eddy executive director of bright

line I want to recognize yvonne and others from bright line they

do our legal work and our

program research work on behalf

of the viral just two brief

points it sends a signal that san francisco, california change

the conversation with half a billion dollars supervisor peskin absolutely right that climatic change is a moral issue

of our time and done it before on firearms and tobacco and keeping the investment in fossil

fuel is shown repeatedly to be a

bad investment not in the fiduciary interests of san francisco we know the returns

are dismal as stated by the

commissioner and seen the exposure of I do not like

evidence to the contrary that

tries to prove that the big oil study at the end of the day for

us to see that only one out of

$500 million is divested commissioner kim is not

acceptable that is so far beyond

an action that we have not seen

that we would like to see for

this delayed for 4 years goes

against what bright line stand up for communities in bayview hunters point that are most

subject to climatic change when you see for instance, the risk

involved can be subject to and creates floodwaters those are

the things we're concerned about

and we're glad this conversation

is happening today thank you.

>> good afternoon. My name is

jennifer green I'm a member of san francisco gap he will

coalition three or four points

to make number one, I find is

questionable that divest

indication or divestment causes

a low not judges fossil fuel

number one, we're not just

asking for complete flat out divestment but taking the steps

to start divesting and one

percent is a dismal rate over 5

years number 2, multiple points

number 2, is the environmental policy not taking into account

the climatic change but taking into account the social factors

as well I don't know how their

naval their success rate with engagement with other

organizations just being a

member of an organization that

talks with exxon mobil is not

producing and a social aspect as

well with the thinking against

communities people farm owners

and learned had that are bullied

their land is taken away as

pipelines it put down a powered

keg with the natural disasters with climatic change as well as

pipelines what happens if i

don't need to be dramatic but what happens as a national disaster our councilmember

martinez are leaking and choking

the rivers where access to

rivers and I'll end up with that.

>> thank you thank you I

appreciate your words I'm not a speaker I'm not a paid protester

I took time off of work to come

here I'm dumbfounded this "yeah" behind me says long term

investors I don't know how they

do a long-term investment when

clefks is around us I see my

indigenous brothers and sisters

women disappearing and I see the

land stolen December accurate

you are sacred sites I don't

understand I pay praise this

gentleman if he keeps on going

down the street I hope he has 7

generations behind him.

>> everything brothers and

sisters can we pray for a moment

can we pray for the victims of

all the firefighters, the forest

fires excuse me-and

neighborhoods what can we pray

to find find courage to divest from the phyllis companies that

eventually making a profit from

the pollution that is changing

the weather causing the cat

trophy

I'm one of the retirees whose

money in the pension fund and

want to divest if fossil fuel before I retired two one half

years ago I came to the

commissioners and asked for that

at that time the price of oil

was over $90 a barrel and now it

is half of that

I don't see any change in the

atmosphere at the pension board

in terms of thinking that maybe

if we divest few we'll save

money before it drops further it

looks like that the people the

staff and the commissioners want

to continue to investment in fossil fuels until the very end

until the stocks are worthless I'm hoping each other of us can look at our hearts and cut our permanent pollution as well as

the board divests the pension

board divests in fossil fuel as

well as the san francisco board

of supervisors reconfigure the

clean energy plan so that people

have to opt out out of it

research opting out in we can

all do our part thank you very much.

>> thank you, very much. And

seeing no further public on

number 5 public comment is closed. Supervisor peskin.

>> Madam Chair supervisor President London breed thank you for your patience in hearing this I have one question for Mr.

Hewish and read one statement

and then hopefully. >> send it to the full board with a positive recommendation.

>> it seems like Mr. Hewish

that your main argument for keeping these investment is

because you want to hedge

against future inflation

and while I do not claim to be

an investment guru seems to me investment in the world that

people use to hedge against inflation

as far as the most important one

is gold has they've been

conversation at the board level

investing in other instruments

that hedge against inflation I'm

relying on the boards expertise and staffs expertise they

believe that as been pointed out

in public comment the energy

sector is an important part but

the subsection of fossil fuel a

reason that the discretionary

managers want to hold open

generations speaking don't sell

low and buy high understanding

they objectively are having it in their portfolio to service the purpose the purpose as

defined by the boards consultant

for diversification.

>> that's all by read this from the center from

international law they did a report.

>> few months ago called

trillion dollars fiduciary investment and fossil fuels and

an era of compliment risk climatic change presents a

social and economic chronology

on a scale of humanity not faced

trustees like the gentleman fund

managers like Mr. Hewish and their beneficiaries are not

exempt from the challenges indeed in the years ahead will be confronted with questions

that will reshape the fiduciaries and simultaneously

demand adherence to the

privileges that define that duty

pension fund fiduciaries should consider their portfolios exposure to climatic change and whether or not they are investing in a manner consist

with the best interests of their

beneficiaries I think that last exact time is remarkably important in addition to

thanking my two colleagues, I want to thank supervisor fewer

and supervisor ronen for

covering this as well as form board member supervisor avalos

for his work and staff lee for

prepares and with that,

colleagues appreciate our inindulgence and. >> send it to the full board with a positive recommendation. >> >> thank you, supervisor peskin and thank you for your

work to continue the discussion

think this item that supervisor

avalos initiated and

wholeheartedly agree divesting

in fossil fuel I think that you know to quote one of the member of the public that is a dire

issue and critical one and it is increasingly becoming a matter

of life and death in the near term not the far future we have a motion to move forward with recommendations to the full board

and we can do that without opposition. >> thank you to the members of

the public that waited partially

for this item and also

commissioner making reduce for

joining us today Mr. Clerk, is there any additional business to come before this body? >> there's no further business.

>> seeing no further business