Budget and Finance Committee Regular Meeting - March 22, 2023
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Budget and Finance Committee Regular Meeting - March 22, 2023
The San Francisco Board of Supervisors Budget and Finance Committee, chaired by Supervisor Connie Chan with Vice Chair Rafael Mandelman and joined later by Supervisor Asha Safayi, met on March 22, 2023. The committee considered six items: a contract modification with Jefferies LLC, a grant acceptance for the Public Defender's Adachi Project, a de-appropriation and appropriation for the Gene Friend Recreation Center, and four resolutions authorizing grant applications for affordable housing projects under the state's Affordable Housing and Sustainable Communities (AHSC) program. The meeting lasted from approximately 10:15 AM to conclusion.
Public Comments & Testimony
- Items 4-7 (AHSC Grant Applications): James Washington spoke generally about housing and the RAD program, expressing concern that public housing tenants are being forgotten. He did not directly address the items at hand.
- Item 3 (Gene Friend Rec Center Funding): Alan Lowe, former commissioner, stated that the 2013 development agreement for 706 Mission Street contemplated a public process for all three streams of payments (annual, one-time, and condo sale annuity). He argued the city must honor that obligation and that no funds should be spent without following the process, referencing a February 2022 GAO hearing.
Discussion Items
- Item 1 – Contract Modification with Jefferies LLC: Deputy City Attorney Ann Pearson requested approval to amend a litigation consulting contract, extending it from April 1, 2023 to September 17, 2027 and increasing the amount by approximately $5.5 million to a new not-to-exceed $15.5 million. The Budget and Legislative Analyst (BLA) noted the contract was redacted for privilege but recommended follow-up on solicitation details. No questions were raised. The committee voted to forward with a positive recommendation (2-0, with Safayi absent).
- Item 2 – Ford Foundation Grant for Adachi Project: Public Defender Mano Raju presented the Adachi Project, a storytelling initiative producing documentary films and photojournalism about the human impact of the justice system. The Ford Foundation awarded a $200,000 grant (disbursed to project partner even/odd LLC) to support short film production for 2022-2024. No funds go to the city. The committee voted to forward (2-0, after excusing Safayi).
- Item 3 – De-Appropriation and Appropriation for Gene Friend Rec Center (Continued): Melinda Stockman Sullivan (Rec & Park) described the $59.3 million project at Folsom & 6th Streets, noting a 24,000 sq ft design with two gyms, two multi-purpose rooms, and more. The item would transfer $1.7 million from Rec & Park to the 706 Mission Street Fund (half to MOHCD, half to Rec & Park) to be spent after community input from the SOMA Community Stabilization Committee. The BLA reported that only $1.5 million remains due to prior spending. Supervisor Chan questioned why, after the board approved an additional $11.1 million in bond funds for this project on January 25, the department now seeks this money. Rec & Park's Sarah Madlin explained that impact fee collections improved, reducing the needed bond borrowing. Chan expressed concern that spending had occurred without a required community process. The city attorney noted the development agreement did not require community process for this one-time payment, but the fund legislation did for ongoing payments. After public comment, Chan moved to continue the item to the call of the chair for further clarity on the legal requirement. The motion passed 3-0.
- Items 4-7 – AHSC Grant Applications for Affordable Housing Projects: Sheila Nicolopoulos (MOHCD) presented four resolutions authorizing joint applications for state AHSC (Cap-and-Trade) funding. Each project is eligible for up to $50 million total ($35 million housing loan, $15 million transportation grant). The projects are: (4) 160 Freelon Family (Related Companies/SF Housing Development Corp.), (5) 850 Turk Street (MidPen Housing), (6) Balboa Reservoir Building A (Bridge Housing, 159 units), and (7) Transbay 2 East Family (Mercy Housing California, 184 units with 40 for homeless families). The city must assume joint and several liability. Non-substantive amendments were introduced for item 7 to clarify MTA improvements. The committee voted to approve all four items with amendments to item 7 and forward them to the full board. Vice Chair Mandelman and Supervisor Safayi requested to be added as co-sponsors.
Key Outcomes
- Item 1: Passed (2-0) and forwarded to full board with positive recommendation.
- Item 2: Passed (2-0) and forwarded to full board with positive recommendation.
- Item 3: Continued to the call of the chair (3-0). The chair requested the city attorney to clarify if the 2013 development agreement required a community process, and directed the controller to explore mechanisms to halt further spending from the account pending the committee's decision.
- Items 4-7: Passed (3-0) as amended (item 7 non-substantive amendments) and forwarded to full board, where they are expected on the April 4, 2023 agenda.
Meeting Transcript
And Finance Committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Rafael Mendelman, and shortly by Supervisor Asha Safayi. Our clerk, it's Brent Halipa. I would like to thank uh Matthew Eatno uh from the SFGTV for uh broadcasting this meeting. Mr. Clerk, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder for those in attendance to please make sure to silence all cell phones and electronic devices so as not to interrupt our proceedings here in the chamber. The Board of Supervisors and its committees are convening hybrid meetings that allow in-person attendance and public comment while still providing remote access and public comment via telephone. The board recognizes that equitable public access is essential and we'll be taking public comment as follows. First public comment will be taken on each item on the agenda. Those in attending in person will be allowed to speak first, and then we'll take those waiting on the cell phone line. Um for those watching either channels 26, 2878 or 99 and SFGov TV.org. The public comment call and numbers streaming across the screen. That number is 415, 65501. Again, that's 415 65501, then enter the meeting ID of 2498-202-4187, and then pound and pound again. When we connected, you will hear the meeting discussions, but you'll be muted 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 the cell phone should dial star three to also be added to the speaker line. If you're on your telephone, please remember to turn down your TV and all listening devices you may be using. Each speaker will be allowed up to two minutes to speak unless otherwise stated. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the budget and finance committee clerk at B-R-E-N-T.j at SFGO V dot O R G. If you submit public comment via email, pardon, it will be forwarded to the supervisors and also included as part of the official file. He may also send your written comments via U.S. Postal Service to our office in City Hall. That's one Dr. Carlton B. Goodlick Place. Room 244, San Francisco, California, 94102. And finally, Madam Chair, with our upcoming legislative spring recess. Items acted upon today are expected to appear on the Board of Supervisors' agenda of April 4th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And uh just like to remind uh everyone that when for the items that actually have the budget and legislative analyst report, uh we will have the department's presentation and immediately go to the BLA report and presentation. Then we have uh questions and comments and then go to public comments. So today's items that have the budget and legislative analysis reports are items one and three. And so let's go, let's get go into it. Um Mr. Clerk, please call item number one. Yes, item number one is a resolution authorizing the second amendment to a contract between the Office of the City Attorney and Jeffrey's LLC for litigation consulting services to extend the contract term for four years and five months from April 1st, 2023 for a total contract term of May 17th, 2019 through September 17th, 2027, and to increase the contract amount by approximately 5.5 million for a new contract amount not to exceed 15.5 million pursuant to the charter and to authorize the city attorney to enter into any amendments or modifications to the contract that do not materially increase the obligations or liabilities to the city and are necessary to effectuate the purposes of the contract or this resolution. Members of the public are joining us remotely and wish to comment, please call 415-655-0001 with the meeting ID of 2498-202-4187. Then press pound twice. Once connected to the meeting, you will need to press star three to enter the speaker line. Hey prompt will indicate that you have raised your hand, and when the system indicates you have been unmuted, he will be requed to begin your comments. Madam Chair. Thank you. And uh today we have just a brief uh presentation, uh, verbal presentation by Deputy City Attorney and Pearson, and then followed by our BIA report.
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