City and County of San Francisco Board of Supervisors Regular Meeting - September 5, 2023

The Board of Supervisors met in regular session on Tuesday, September 5, 2023, its first meeting after the summer legislative recess, with all 11 members present. The agenda included approval of minutes, consent calendar items, unfinished business on development impact fees, opioid litigation settlements, roll-call introductions, a 2:30 p.m. commendation ceremony, public comment, and the for-adoption-without-committee-reference calendar.

Consent Calendar

• Approved the minutes for June 27, July 11, and the June 26 and June 28 special meetings, 11-0.
• Adopted consent items 1 through 6 unanimously, including: a contract amendment with Western Area Power Administration for power and scheduling coordinator services, extending the term and increasing the maximum contract amount to $41,500,000, with a waiver of certain Municipal Code requirements; settlements of unlitigated claims for The Wiseman Group Interior Design, Inc. ($40,000) and AppLovin Corporation ($4,197,820.54 plus statutory interest); the Family Housing Opportunity Special Use District zoning and code amendments; Small Business Month fee waivers including for awning installation and business signs; and the Park Code amendment on PROSAC membership.

Discussion Items

• Items 7 and 8, the development impact fee ordinances, were passed 10-1 with Supervisor Preston voting no. The ordinances amend the Planning, Building, and Administrative Codes to modify development impact fee indexing, deferral, and waivers, adopt the San Francisco Citywide Nexus Analysis, and make CEQA findings.
• Items 9 through 11, the opioid litigation settlements, were passed on first reading 11-0. The ordinances authorize settlements of lawsuits filed by the City and the people of California against Walgreen Co. for $229,610,002 over 15 years; Teva Pharmaceuticals USA, Inc. and related entities for $24,797,604 over 13 years; and Allergan Finance, LLC and Allergan Limited for $12,916,274 over 5 years. The lawsuits alleged public nuisance and unfair competition law violations from misleading opioid marketing and large-volume opioid distribution in San Francisco. Supervisor Preston thanked the City Attorney's office and urged transparency in the use of funds. Controller Ben Rosenfield stated that proceeds will be held in segregated accounts with reporting and eligible-use requirements, that the adopted budget appropriated approximately $100 million in settlement proceeds over the current and next fiscal years, and that payments are front-loaded over a horizon of up to nearly 20 years.

Roll Call Introductions

• Supervisor Mandelman introduced a resolution proclaiming September Transit Month in San Francisco.
• Supervisor Preston introduced a resolution urging the Department of Homelessness and Supportive Housing to fill at least half of vacant permanent supportive housing units within 90 days and maintain a vacancy rate no higher than 5%. He cited 7,754 people experiencing homelessness, more than 1,000 vacant permanent supportive housing units representing over 10% of the portfolio, and more than 700 units ready for referral.
• Supervisor Preston also joined President Peskin in introducing a resolution concerning the UN Plaza activation pilot and the displacement of the Heart of the City farmers market. He stated that the market has operated for 42 years, serves more than 20,000 people on Wednesdays and Sundays, includes more than 50 California farmers, and administers the largest farmers market EBT program in the nation with over $1 million per year in grant-funded incentives. He noted a discrepancy between an initial six-month pilot description and Rec and Park's later description of a two-year pilot.
• Supervisor Ronan made extended remarks in support of opening wellness centers and overdose prevention centers, urging the mayor to give a clear mandate to the Department of Public Health. She described visits to New York and Rhode Island, said the city is losing three lives per day to overdose, and introduced an Overdose Awareness Month resolution.
• Supervisor Safai introduced a letter of inquiry on retail theft and violence, requesting data from SFPD and the District Attorney and asking the mayor to explain why an assistant district attorney position was denied; announced a student village special use district proposal for downtown; and introduced a resolution recognizing September as Childhood Cancer Awareness Month.
• Supervisor Stephanie asked the Controller to audit the HealthRight 360 detox contract, citing a roughly $360 million, 10-year contract and concerns about service delivery and continuity after a COVID-related shutdown.
• Supervisors Walton and Chan introduced fire safety and disaster preparedness legislation, including sprinkler inspection changes, sprinkler requirements for accessory dwelling units, and fire safety access requirements. Chan and Peskin pressed for restoration of the city's outdoor emergency siren system, with Peskin indicating he would seek a supplemental appropriation of about $5 million if funding is not identified. Peskin also criticized the $1.8 million UN Plaza skate park proposal as lacking public process and requested a hearing on city corruption.

Special Order 2:30 P.M. - Recognition of Commendations

• The Board recognized the Asian Firefighters Association for a one-week humanitarian mission to Lahaina, Maui after the August 8 fire. President Stan Lee reported that 12 active and retired firefighters and first responders served at the Lahaina Gateway Center Distribution Depot, served about 2,500 residents and 450 cars daily, provided about 2,200 hot meals per day, raised $6,000 before departure, and helped fight a fire alongside the Maui Fire Department. A second mission is planned for October.

Public Comments & Testimony

• A farmer associated with the Heart of the City farmers market opposed the farmers market relocation, citing the cost of removing brick, environmental concerns, and lack of consultation, and urged the Board to reconsider.
• Several speakers asked the Board to condemn a transphobic conference scheduled at the Hilton Financial District and an associated protest; one speaker expressed support for Supervisor Ronan's overdose awareness resolution and for filling permanent supportive housing vacancies.
• John Anderson of 350 San Francisco supported accepting the municipal finance corporation and public bank reports, urging quick and transparent implementation.
• Two speakers asked the Board to place an eighth-grade algebra measure on the March 2024 ballot, saying SFUSD's elimination of eighth-grade algebra has hurt student preparation and equity.
• A homeless speaker asked for housing assistance and help locating her daughter.
• Remote callers asked for funding for the 1150 Fillmore meeting site station, opposed the UN Plaza farmers market relocation and skate park plan, supported restoring the emergency siren system and eighth-grade algebra, and commented on Castro Theater dark nights and dissatisfaction with city services.

For Adoption Without Committee Reference

• Item 16, commemorating the 50th anniversary of Bruce Lee's passing, was adopted unanimously.
• Item 14, accepting receipt of the Final Governance Plan, Business Plan and Viability Study for a San Francisco Municipal Financial Corporation and a San Francisco Public Bank, was adopted unanimously. Supervisor Preston described the plan as a game-changing tool and said San Francisco can create the first municipal bank in the nation, focused on affordable housing, small businesses, underserved communities, and green infrastructure.
• Item 17, recognizing September 29, 2023 as Korean Chuseok Day and honoring the Korean Center, was adopted unanimously.
• Item 15, the International Overdose Awareness Day resolution, was continued one week to September 12, 2023. Supervisor Dorsey moved the continuance, saying the final resolved clause urging the mayor's office to open new wellness centers made the item non-routine and not eligible for unanimous adoption. He said he supports supervised consumption sites but cannot support wellness hubs without supervised consumption services, and he called for reallocating $18.9 million to jail-based services. Supervisor Ronan defended the resolution and criticized inaction. Supervisors Chan and Melgar added themselves as co-sponsors and supported moving forward; Supervisor Mandelman questioned the Department of Public Health's approach; and Supervisor Preston urged immediate issuance of RFPs. The continuance was accepted without objection.

Key Outcomes

• The minutes and consent calendar were approved 11-0.
• The development impact fee ordinances passed 10-1.
• The opioid settlement ordinances passed on first reading 11-0.
• The public bank and municipal financial corporation plan was accepted unanimously.
• The International Overdose Awareness Day resolution was continued to September 12, 2023.
• The Bruce Lee 50th anniversary and Korean Chuseok Day resolutions were adopted unanimously.
• The Board recognized the Asian Firefighters Association, and the meeting was adjourned in memory of Joan Joaquin Wood, R. Sherman Layman, and Nancy Werfel.