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tv   [untitled]    June 7, 2012 10:00pm-10:30pm PDT

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>> thank you. good morning, everyone. thank you very much. as many of you know, i'm a person that doesn't like a whole lot of drama. but i do want to make sure that we take this opportunity to enjoy. this budget is one that's important to all of us, it certainly is one to me and one that reflects a lot of great work. first of all, let me thank everybody for coming this morning. certainly board president david chiu for helping me co-host
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this and carmen chu and her work with us already started and will help guide us, along with board president david chiu on all of the hearings that the rest of the board will have. i want to thank each and every member of the board of supervisors as well. you've been weighing in and we've been creating a different dialogue on the front end to make sure that all of our constituents know what we're doing, more transparent, and ultimately where our values are. i also want a big shout-out and thanks to everybody in this room. there's a lot of department heads and commissions and labor representatives and representatives from our non-profits and community members as well. thank you for engaging us in this really dedicated six-month process. i want to go back to the very first neighborhood budget hearing that we held about almost six months ago. it was one where i was asked at the very beginning, what does
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the budget mean to you? and i wasn't the only one. there were several supervisors that were there, and we all said pretty much the same thing. it really is a reflection of our values as a city and it's one that we want to work hard at, but ultimately it is who we are and it's a combined effort here, a collaborative effort. so it still is that way, and you'll see from the highlights that we'll be announcing today, as reflected in this budget, it still is a reflection of all of our values. so good morning, everybody. thank you for joining me here today. again, thank you for board president chiu and budget chair carmen chu and all the others that i've identified here today. i also want to say at the outset this budget reflects countless hours of work. a lot of work behind the
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scenes. in addition to all the neighborhood budget meetings that we had, there were numerous, numerous staff meetings. kate howard's done a wonderful job with her staff. they've met with all of the different departments -- [applause] this is her first full year budget working with us and she's done a great job and her staff has done a great job. it isn't just putting numbers together, it's listening to each of the finance personnel from each department, it is engaging in the numerous meetings that we have with community, it's engaging with staff of the various supervisors, the non-profits. we had special meetings help, it was health and human services and housing and homeless advocates and others. she was there and her staff was there at every turn making sure
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that we listened and it reflected in both number-crunching and challenging what the priorities are and so forth. also want to give a shout-out to steve cava. steve, wonderful with all your work. [applause] it's not easy. you and micki callahan, it's really not easy at all to face a year when there's 27 contracts open, trying to face everybody in the room, trying to make sure that we can make promises we can keep. having been a former employees relations director, i know that keeping promises with our labor representative is critical to building trust and to make sure that we carry out and we honor all that they do every single day in carrying out services for us. to all the department heads and
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your wonderful staffs, thank you. i also want to make sure i acknowledge all of our labor unions, all of our representatives. for years you've worked with us and sacrificed and bemoaned the bad budget years, but you've stepped up in every occasion. for the department heads and non-department heads who we've shared challenges with, thank you for sacrificing so many years. and now we get to, i think, a budget that has some relatively good news and a good foundation. this year we begin the hard work of presenting the city's first two-year budget. and we began that year with a $263 million deficit for our general fund. and then the coming year, the second year of $375 million shortfall. that's what we faced at the very beginning. but because of the fiscal discipline that we put in process, a discipline that's
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reflected in the great work of ben rose enfield and his staff and the controller's office that keeps reminding me of the credit ratings of our city and that we must make sure that we do things in a very solid financial way, we made investments in job creation and we made commitments to reform with that guidance. now san francisco's economy is recovering and reserves are going. in fact, during the last nine months the controller has reported that our revenues were $172 million more than projected. this is good news. this is good news, but it did not come without commitments, without sacrifice by everybody and all the groups represented in this room. i would like to again thank owe employee unions for working with us to find a common goal, saving more than $28 million in your contract negotiations with
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us. i'm happy to report that i'm presenting a responsible and balanced two-year budget. while we spare the city the deep cuts we've experienced over the last several years and one that i present to you in a san francisco economy that's recovering, in this budget you will see investments. investments that ensure that people who live, work and visit our city feel safe, investments that protect our social safety net that supports seniors and youth, low-income and working-class families, investments that support our neighborhoods, our infrastructure and our commercial corridors. this budget reflects a lot of collaboration and partnership with our san francisco community. one thing we agreed on early was that in a time of state and federal cuts, protecting our social safety net is more important than ever, and in this budget i've rejected all service reductions in our health department and human
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service agencies. [applause] s i've included full restoration of federal cuts to programs and services that serve people with h.i.v. and aids. the loss of redevelopment has been a severe blow to our city, especially for this first street corridor. so we will invest in economic initiatives in the heart of bayview to stabilize businesses and attract new ones. [applause] we will also continue our investment in central market and especially sixth street, where the elimination of redevelopment has left a gap in services.
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with our community partners and including the very spirited arts community that's been so wonderful in helping us lead that effort, we'll support businesses in that sector, attract new ones, and keep the area clean and safe. we will also invest in the youth of sfsk and in their education. i will propose releasing the $6 million in rainy day funds to support our public schools, to offset the state's deep cuts to education. [applause] most importantly in this budget we are putting san franciscans back to work. you've heard me say on many occasions recently our unemployment rate dropped from 9.6% in early 2011 to 7.4% today, our lowest since 2008. [applause] we, as a city, along with our business partners and every neighborhood, we created 22,500
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net new jobs in san francisco in just the last year. [applause] that's good. that is really good, but we need to do more. with this budget we are continuing to invest in strategies and incentivized job creation, training, and place our residents for their jobs for the 21st sent re. we are creating a climate that gives entrepreneurs and investors confidence in our city, allowing them to work with us to innovate, grow and create jobs, whether they are in neighborhoods, small businesses or tech start-up or a thriving global headquarters. in neighborhoods, we are more than doubling grants available to small businesses, and we are including $4 million for neighborhood commercial districts through our new invest in neighborhood strategy. that includes job squad and the recapitalize the small business revolving loan fund.
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we are bringing staal to the neighborhoods -- city hall to the neighborhoods where it belongs, to support small businesses. my proposed budget includes $4 million in smart capital investments and $441 million in smart capital investments in our city's 10-year capital plan to improve and invest in the city's infrastructure. [applause] over the next two years we'll invest in and improve or water system and continue investing in our waterfront. we will also continue to invest in our parks. and i've joined the members of the board of supervisors to introduce $195 million bond measure to keep our parks clean and safe. [applause] all told, over the next two
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years enterprise departments will spend more than -- will actually support more than 8,700 jobs in san francisco by infusing $1.3 billion into our local economy. as our economy grows and as we add jobs, we must redouble our efforts to expand housing opportunities and build more housing for people at every income level. i get it. i know there's anxiety out there, because rents are start together creep up again in every neighborhood as our economy recovers. but the answer to scarce housing and rising rents is not to stop growing our economy or creating jobs. that's why we proposed the housing trust fund measure for this november, to create a permanent source of housing and revenue to fund the production of housing at every level of our economic spectrum. i am pleased to share with you, too, that my budget also
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includes a six-year police and fire hiring plan. [applause] this hiring plan for police and fire will train the next generation of san francisco public safety personnel. we are planning for anticipated retirement, reducing overtime and making sure our public safety departments are appropriately stand. mow, of course, this submission of the bubt is not the end of the process. i've looked forward to working with the full board to ensure that our residents receive quality services while we balance the budget and continue in our economic recovery. i again want to recognize supervisor carmen chu and the board of supervisors for their steadfast leadership and commitment to building a collaborative process, backed up with our board president, david chiu. thank you steve cava, chief of
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staff, thank you budget office, director kate howard, and to best rosenfeld, thank you to you and your wonderful staff and i will advance, thank you harvey rose, for his work he'll be doing. this is very less dramatic presentation, i know that. but all the work that's been done in a very comprehensive way, and i want you to know that the values of the city are intact, we are moving forward, and we are investing in all of our neighbors in san francisco. thank you very much. [applause]
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ok, back to work. >> five years ago here in san francisco, and i was toque -- joking with the mayor that it only took us four years to realize the error of our ways and move back here. it did the warriors 41 years. on a day when the city is excited about the basketball team coming back, we are thrilled to have the mayor here to help us open our san francisco office. thank you very much for all you
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have done. want to hand it over to you. [applause] >> congratulations. i wanted to come by. my staff let me know the background and history of this company, and i'm very excited for it and not only wish you success, but it is our success as well as the success of the city to have you here. you're so glad to join our friends at pg&e as well as the department of the environment. their staff. we have some past commissioners as well that have served in various capacities. we are excited about clean energy, and we are excited about the reason you started here. actually started back in virginia, but you came back to san francisco, and we are excited to have you here. the model you have about the ability to communicate with people, using the social media platform, and getting kind of a personal relationship with our
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environment and with energy savings -- that excites us because it has been a challenge for us to talk to people. i know the department of the environment has had that challenge. how do you educate people about helping themselves as well as help the environment? the q you canuote -- you can quote all kinds of information, but it does not become relevant to their lives, and by old power having tools to allow -- to become personal, for me, it becomes personal. do you like tequila, or do you like champagne? [laughter] i happen to be a tequila guy, but anyway. that is part of the excitement here for the staff. i love your bike racks and the way you are conducting yourselves here and growing, and by the end of the year, talking about 75 or 80 people working
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here, that relevancy for my neighbors, me, the residents of the city, who actually, when you talk with them, they all want to do better. they live in a city where they want to feel they belong to the whole movement. that is why i moved to san francisco. there were a lot of movements i wanted to lead and others i wanted to join. when it comes to improvement of the environment, we want to be part of them -- the movement. we want to be part of the best city in the country. how do we get there? we personalize it. we go about every week. this is where we are saying what goes in the green and blue boxes, and we personalize our challenge making sure we know the things we use where it goes so we can get to the 100% recycling, zero ways. we talked about it to our
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friends in china. do you live in a city that is committed to zero ways? you are not up there yet. when it comes to energy efficiency, when it comes to clean tat, -- to clean tech, we would like to talk to people and make sure it is personal to them. that is why i am excited about personalizing it, making it relevant, creating a competitiveness to it, but also a friendly, social environment where people can say, "i am part of san francisco. this is what i do to live here." when we reduce energy consumption, that will meet other people and more people can live in our city. it becomes expensive and unaffordable if we do not start thinking about shared values and shared living standards. that is why i am also excited about the movement about our shared economy. you are part of that. we can reduce the footprint of
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our people, and more people can enjoy the richness of our city. i am year for all those reasons as well as what you mentioned earlier. they are coming back, and we get to celebrate that with you. five years from now, 3000 employees here at full power celebrating an nba championship right in our water from rita. this will be great, right? first of all, thank you very much for being part of a great company. thank you for so many of you living in our city, and thank you, alex, and the whole staff for having such a great model for clean tech, energy- efficient, and thank you for partnering with the city. we will find those opportunities to partner with you. you have a great model, and we are going to search for ways to do that. already been educated about what i do not have, which is digital thermometers in my house. i have a baby thermometer.
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that is how i feel warm, but thank you very much, and congratulations for being part of a great, successful -- now i know why president obama came to you back in 2009. this is that great feeling. he had a vision there to share with you. i get to share that vision now, and hopefully in the next four years, we will do a lot of work together. congratulations. [applause] >> i want to introduce steve, the vp who oversees all of our work at piccinni, oversees the service is brought to you, who are customers of the utility -- all of our work at pg&e. thank you, steve. >> let me just say -- welcome to the neighborhood. thank you guys for choosing to come out here and join us in our home city. we are proud that you are here. we are proud to be part of this city and a partner with you and
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we look for to achieving those goals you laid out. we talked about making energy personal for our customers. you have to make it personal for it to have an impact on your life, and there's probably no better example of that then the relationship you have an old power and the work you help do for our customers. i heard this morning the commission from thecpuc -- the cpuc was making a speech, and she was happy to get her report and had one smiley face and was committed to getting to two. that is one great example of making it personal. there is the work we do with social. we have the opportunity to engage people. we have a passion. we give them the information so they can help accomplish their goals. there is another aspect of this, which is really important, which
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i wanted to thank you all for. i have talked to a lot of our other customers, some of whom are less fortunate in terms of their income and what they have the ability to do. they may be struggling on a monthly basis to pay their bills and to do the things they want to do in their lives. i was speaking to one customer in particular, who was excited to get their report because it helped start them on a journey to use less energy. they did simple things, they took civil actions, they became more aware, and as a result, they were saving about 20% on their bill. that has a huge impact on their life and what they can do. that is another way we can make it really personal, and that is another thing i get excited about. energy has the opportunity to power our lives and help us achieve our goals.
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i'm excited about where we can go with the partnership. again, thank you for joining us. thank you for the partnership. i know many of the folks in this office have probably work some late nights to deliver for us and deliver for our customers, and i want to thank you for all that commitment. i also want to say how happy we are to have you as a customer year in san francisco. i have a feeling you are probably one of our most efficient customers in san francisco. i saw your groupon, the facebook atp -- app to see how you were doing, and you kind of put us to shame. thanks, and welcome. >> thank you. to bank a few more people and provide more context for why we are opening this office here in san francisco, we started this company five years a po intrero hill with the notion -- in potr
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ero hill with the notion that most customers all over the world think energy is boring and the only time they think about it is when something does not work or when a bill comes that is unexpectedly high. we realize -- we thought, anyway, that if we provided people with more compelling information, took the phenomenal data that was coming into utilities, that we could begin to drive behavior change and drive changes in everyday lives of ordinary people. earlier this month, we celebrated having saved a tara what our of energy in partnership with utilities and customers. et al. what our of energy means practically nothing to anybody, but it is a lot of electricity, enough to power a city of 200,000 people for a whole year. what is just as exciting -- more exciting than saving the first taro hour of energy is we are going to save another tarawa of energy over the next 12 months. it took us five years to get to
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the first tarawa hour. it will take less than 12 months to get to the next. to put that in context another way, the entire solar industry in the u.s. produced around 1.7 tarawa hours of electricity last year. this small company in partnership with really phenomenal large companies is having an impact that is approximately 2/3 of that, and we feel like we are just getting started. i feel confident that our ability to have an impact will grow strongly because of the partnerships that the mayor has highlighted, the partnership with facebook. the partnership with honeywell. to be imagine the thermostat. particularly the partnership we have with utilities like pg&e. i think there is someone here from the city of palo alto utilities, and we have worked with for a long time. utilities like back -- you guys are brave.
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utilities have had the same business model and the same basic delivery for a very long time. to recognize and appreciate that your customers could become real partners is a really brave thing to do in an industry that has been understandably risk averse before. we are thrilled to be your partner in that change and to be providing better services and tools to your customers, to give them more control and in doing so, to build a stronger relationship and help them save. the one thing i wanted to thank were our partners. the second group to thank is government. diane is here. she was commissioner on the puc. have beenn 0 fromrdc -- we have people from nrdc.
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thanks of great regulation -- regulation gets a bad name these days, but when implemented correctly, it can be a phenomenal force for good, and the state of california has led the way. local governments -- this is a phenomenal city to do business in a, a city which has attracted and under the mayor's leadership accelerated the attraction of other tech companies and built an ecosystem. when you want to start a business, you want to open an office, you need to go to where the talent is, and there is not a city in the world that has more talented people than the city of san francisco. we are thrilled to be here and to have your leadership. i do not know if we will be at 3000 employees, but if the warriors win the championship, we will be there to celebrate and to help in any way we can. we look forward to being a long-
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term partner of yours and the city's for years to come. of course, the third group to thank here it is it is great to have a beautiful office, but what's most important it are the people who come in every day. i feel phenomenally blessed to have such wonderful colleagues. we started two of us at a desk five years ago. there are now 250 of us that the company. 50 people worked out of this office. we plan to double that in the next 12 months. the mayor already met our lead recruiter are here. when president obama came to visit our offices in virginia, we were 60 people. we told him we would double the company in 12 months, and he went to donny and said, "i understand you are the job