San Francisco Budget and Appropriations Committee Hearing on Mayor's Proposed FY2022-2024 Budget for Enterprise and Non-General Fund Departments - May 18, 2022
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San Francisco Budget and Appropriations Committee Hearing on Mayor's Proposed FY2022-2024 Budget for Enterprise and Non-General Fund Departments - May 18, 2022
The Budget and Appropriations Committee, chaired by Supervisor Hillary Ronen, convened on May 18, 2022, to hold hearings on the Mayor's proposed budget for selected departments for fiscal years 2022-2023 and 2023-2024. Committee members present included Supervisors Connie Chan, Gordon Mar, Ahsha Safai, and Board President Shamann Walton. The committee received presentations from representatives of the following departments: Airport, Board of Appeals, Department of Building Inspection (DBI), Child Support Services, Department of Environment, Law Library, Municipal Transportation Agency (SFMTA), Port of San Francisco, San Francisco Public Library, San Francisco Public Utilities Commission (SFPUC), Residential Rent Stabilization and Arbitration Board, and the San Francisco Retirement System. The committee asked each department to discuss staffing levels, vacancies, and hiring plans. No public comment was offered on any item. The committee voted unanimously to continue all items to the May 25, 2022 meeting.
Department Budget Presentations
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Airport (SFO): Presenters reported passenger traffic at 58% of pre-COVID levels through April 2022, with domestic recovery at 65% and international at 35%. The airport forecast an annual service payment to the city general fund of $31 million for FY2022, $7 million above budget. The proposed budget includes 24 new positions in FY2023 and 4 additional in FY2024. The vacancy rate is currently 21%, with a historical average of 11%; 185 positions are in recruitment, with a goal of reducing vacancies to 15% by end of FY2023 and near historical levels within a year. The airport intentionally held vacancies during the pandemic to avoid layoffs. Their communications and outreach programs include a customer care team, translation services, and internships. Supervisor Safai expressed disappointment that City College eliminated an aircraft mechanic training program that served as a pipeline to airport jobs.
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Board of Appeals: Executive Director Julie Rosenberg presented the budget. The 10-year average for appeals is 164 per year, with 112 anticipated this fiscal year. The budget proposes an increase for FY2023 primarily due to interdepartmental work orders. The department has one vacancy (a position vacant since July 2021) and no current service impact. The proposal includes increasing surcharge rates for Planning Department and DBI permits from $22.50 to $37, with reductions for other departments. Filing fees have not changed for 10 years.
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Department of Building Inspection (DBI): Director Patrick O'Riordan presented. Revenues are increasing $7.4 million from services, including $1.8 million in building permits and $4 million in plan check, though still below pre-pandemic levels. The department uses fund balance and reserves to balance. It has 287 filled positions: 243 permanent civil service, 20 project exempt, and 24 temporary exempt. There are 35 vacancies (12% vacancy rate), with 18 in active recruitment. The budgeted attrition rate is 12%. DBI communicates via multiple languages and hosts a quarterly public advisory forum averaging 74 participants. Chair Ronen raised concerns about the SRO Collaborative program, alleging potential conflict of interest when the landlord operates tenant organizing; the director said he would investigate if complaints are received.
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Child Support Services: Department head Karen Roy reported the department is 100% funded by federal and state funds. Caseload decline over the years resulted in a more than 15% funding reduction. For federal FY2021, it collected approximately $26 million and established paternity for 98% of children. It ranks fourth among the state's 58 counties in collections. There are 4 true vacancies; 16 vacant positions are unfunded and represent attrition. The department restructured its service model from punitive to family-centered.
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Department of Environment: Acting Director Tyrone Jue presented. The budget is flat, with no new positions. The $6.6 million increase from FY22 to FY23 is due to new grants and construction/demolition debris fees. Funding is predominantly impound (restricted), 28% grants, and 11% pass-through. The department has 97 positions and 22 vacancies (22% vacancy rate). Jue noted that 90% of emissions come from buildings and transportation but only 27% of budget can be spent on those sectors. The department requested $3.2 million in FY23 and $4.1 million in FY24 to begin implementing the Climate Action Plan; the request is under consideration. Supervisors Chan and Mar expressed strong support for additional staffing to implement the climate plan.
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Law Library: Director Marcia Bell said the library was founded in 1870 and is autonomous, funded by a portion of civil court filing fees. The city provides only quarters, utilities, and three positions, one of which is vacant. Due to declining filing fees, the library had to lay off three staff during COVID. It provides free legal resources and MCLEs. No supervisor questions beyond appreciation.
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Municipal Transportation Agency (SFMTA): Director Jeffrey Tumlin presented. The budget includes no fare increase for two years and a new accumulator pass product. It funds 22 additional transit ambassadors on top of 20 hired in December. The agency has 1,000 vacancies out of 6,700 budgeted positions; current headcount is 5,600. The budget assumes filling nearly 100% of vacancies by the end of the two-year cycle, with hiring accelerated through HR investments. Fare revenue recovery is at 27% while ridership is over 50%, partly due to Free Muni for Youth. The structural deficit rises from $50 million to $76 million annually, requiring new sustained revenue by calendar year 2024. The budget relies heavily on one-time federal relief. Supervisor Safai asked about safety and fare evasion; Tumlin noted crime is at historic lows but people feel unsafe, and investments in ambassadors and a gender safety equity initiative. Supervisor Walton requested a detailed quarterly hiring plan for next week.
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Port of San Francisco: Director Elaine Forbes presented. The port faces $30 million in unpaid rent, 10 times pre-pandemic levels. The proposed FY23 budget is $193.2 million, up from $92.5 million, due to ARPA funds; FY24 is $149 million. The port projects a $10 million ongoing deficit beginning FY2025. It has 230 employees and 56 vacancies against 286 funded positions; average time to fill a vacancy is 19 months. The budget invests $110.4 million in capital over two years. To re-tenant vacant commercial spaces, the port plans to use broker placements and potentially percentage-rent-only leases. Supervisor Chan asked about ensuring local business equity; Forbes said they will subdivide spaces and require DEI plans. Supervisor Safai noted the city attempted $25 million in back rent relief last year and supports additional funds.
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San Francisco Public Library: City Librarian Michael Lambert and CFO Mike Fernandez presented. The budget invests $1.1 million for racial equity and nearly $1 million for digital access. The Library Preservation Fund provides 94% of the budget. Key items include $200,000 for BIPOC collections, $500,000 for book giveaway programs, $300,000 for a racial equity manager's contracts, and $523,000 for eMedia collections. The library has 109 vacant FTEs compared to 60 at end of 2019. It is on track to restore all 28 locations to seven-day service. Supervisors Chan, Mar, and Safai praised the library's work, especially during the pandemic, and Safai noted the upcoming Library Preservation Fund ballot measure.
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San Francisco Public Utilities Commission (SFPUC): General Manager Dennis Herrera presented. The SFPUC plans $10 billion in capital investment over 10 years. There will be no retail rate increase for water/wastewater in FY23, though a temporary 5% drought surcharge began in April 2022. Power rates will decrease in July. The agency secured $11 million in federal/state funding for bill relief and extended the moratorium on shutoffs through June 30, 2022. A new customer assistance program offers 25% discounts on water/wastewater and 30% on power for low-income households; applications doubled from about 2,100 to over 4,200 in six weeks. The agency has 660 vacant positions (529 in active recruitment), with about 24 recruitments and 37 eligible lists. Hiring timelines range from 6 to 18 months. The operating budget is $1.6 billion. Supervisor Chan asked about emergency contracts; Herrera explained contingency practices. Supervisor Safai questioned vacancies vs new positions; Herrera said some new positions are for emerging needs like cybersecurity.
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Residential Rent Stabilization and Arbitration Board (Rent Board): The Rent Board presented its budget, which increases positions from 47 to 50. The new housing inventory is scheduled to go live June 1, 2022, starting with property owners of 10 or more units. The board added a chief information officer and is hiring. Outreach focuses on small property owners, LEP, and seniors. Supervisors praised the department's work during the pandemic.
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San Francisco Retirement System: The executive director presented. The trust has $35 billion in assets and is 112% funded, the first time fully funded since 2008. Active membership declined from 34,521 to 33,640. There are 20 vacancies (16% vacancy rate), with a new internship program for six positions at $34/hour; 25 candidates were being interviewed. The system pays about $145 million per month in pensions, totaling over $1.5 billion annually. They asked for additional staffing to improve service levels.
Key Outcomes
- The committee voted unanimously (5-0) to continue File Nos. 220490, 220491, and 220492 (the hearing, budget appropriation ordinance, and salary ordinance for selected departments) to the May 25, 2022 Budget and Appropriations Committee meeting.
- The committee also voted unanimously (5-0) to continue File No. 220494 (Administrative Code – Board of Appeals Surcharges on Permit Fees) to the May 25, 2022 meeting.
- No public comment was received on any item.
Meeting Transcript
The meeting will come to order. This is the May 18th Budget and Appropriations Committee. The meeting will get come to order. This is the May 18, 2022 budget and appropriations committee meeting. I'm Supervisor Hillary Ronin, Chair of the Budget and Appropriations Committee. I'm joined by committee members, supervisors. Connie Chan will be joined by Gordon Marr shortly. And President Walton is here. Our clerk is Brent Halipa, and I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. I just want to apologize to all the departments for the delayed start. And thank you so much for being patient and so kind to us all. Really appreciate you all. And with that, Mr. Clerk, do you have any announcements? Yes, Madam Chair, with our return to the chamber. Just a friendly reminder for those in attendance to please silence all cell phones and electronic devices. Also kindly refrain from any flash photography. The Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment while still providing remote access on public comment via telephone. The board recognizes that equitable public access is essential and will be taking public comment as follows. First public comment will be taken on each item on this agenda. Those attending in person will be allowed to speak first. Then we will take those who are waiting on the telephone line. For those watching either channels 26, 78, or 99, uh and sfgovtv.org. The public comment number is streaming across the screen. That number is 415-655-0001. Uh then enter the meeting ID of 2485-295-1638, then press pound twice. When connected, you will hear the meeting discussions, but you'll be muted in list and in listening mode only. When your item of interest comes up in public comment is called. Those joining us in person should line up to speak, and those on telephone should dial star three to be added to the speaker line. If you're on the telephone, please remember to turn down your TV and all listening devices may be using. As previously mentioned, we will take public comment from those in attending in-person first. Then we'll go to our public comment line. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the budget and appropriations, committee clerk at br e-n-t.j at sfgov.org. If you submit public comment via email, it will be forward to the supervisors, and also included as part of the official file. You may also send your written comments to U.S. Postal Service to our office at City Hall 1, Dr. Carlton B. Goodlitt Place, room 244, San Francisco, California, 94102. And Madam Chair, that concludes my comments. Thank you so much. Can you please read in items one, two, and three together? Yes, madam chair. Items uh one through three. Uh item one is a hearing to consider the mayor's May proposed budget for the airport commission, board of appeals, department of building inspection, child support services, office of county education, department of the environment, the law library, municipal transportation agency, uh, the port public library, San Francisco Public Utilities Commission, uh, the residential rent stabilization and arbitration board and retirement system for fiscal years 2022 to 2023 and 2023 to 2024. Item two is the proposed budget and appropriation ordinance, appropriating all estimated receipts and all estimated expenditures for said departments as of May 1st, 2022 for fiscal years 2022 to 2023 and 2023 through 2024. And item number three is the proposed annual salary ordinance, enumerating positions in the proposed budget and appropriation ordinance for said departments as of May 1st, 2022. Members of the public who wish to provide uh public comment on this hearing should call 415-655-0001. The meeting ID is 2497-841-9535, then press pound twice. If we haven't already done so, please dial star three lineup to speak.
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