Budget and Finance Committee Meeting - May 10, 2023: COPs, Airport Leases, and Grant Approvals
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Budget and Finance Committee Regular Meeting – May 10, 2023
The Budget and Finance Committee of the San Francisco Board of Supervisors met on Wednesday, May 10, 2023, at 10:00 AM. Chair Connie Chan presided, joined by Vice Chair Rafael Mandelman and later Supervisor Ahsha Safaí. The committee approved several routine lease amendments, tax credit extensions, and grant applications, and held extended discussion on two major certificate of participation (COP) ordinances, including implementation delays for public housing and SRO elevator repairs.
Consent Calendar
- Items 1 & 2 (Airport Leases): Approved resolutions amending the Smarte Carte luggage cart lease agreement (modifying flat service fee methodology) and exercising the final one-year extension for the off-airport reprographics lease (837 Malcolm Road, Burlingame; annual rent $150,450). Both forwarded to full board with positive recommendation (2-0, Safaí excused).
- Item 3 (Child Care Tax Credit): Approved ordinance extending the early care and education commercial rents tax credit for qualifying child care facilities through December 31, 2028. Added Vice Chair Mandelman as co-sponsor. Forwarded 2-0.
- Item 4 (Housing Trust Fund Grant): Authorized MOHCD to apply for up to $5 million in matching funds from the California Department of Housing and Community Development’s Local Housing Trust Fund Program. Added Mandelman as co-sponsor. Forwarded 2-0.
- Item 5 (Abandoned Vehicle Fee): Extended the $1 abandoned vehicle abatement fee on all vehicles registered to city residents for ten years (June 1, 2023, through May 31, 2033). Chair Chan noted the full board will need a two-thirds vote. Forwarded 2-0.
Discussion Items
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Item 6 (Pit Stop Program Grant): Resolution to retroactively accept and expend a $250,000 grant from BART for the Pit Stop Public Toilet Program at three locations (24th & Mission, 16th & Mission, Hallidie Plaza). Public Works presented usage data: over 30,000 uses at 16th & Mission, over 27,000 at 24th & Mission, and 15,000 at Hallidie Plaza in calendar year 2022; also collected 500+ needles and 2,000+ waste bags. Budget and Legislative Analyst (BLA) Nick Minard reported that the nonprofit operating these sites (Hunters Point Family) has financial distress: net assets declined from $1.8 million to $750,000, cash at 2% of operating expenses. BLA recommended approval but noted Public Works plans to reprocure the contract. Supervisor Ronen’s office requested a continuance. The committee voted to continue the item to the call of the chair (3-0).
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Items 7, 8, 9 (Certificates of Participation): Three ordinances authorizing: (7) appropriation of ~$275 million for refunding COPs; (8) refunding up to ~$260 million of existing COPs, estimated to save $7.9 million in net present value debt service; (9) new COPs not to exceed $146.8 million for affordable housing, community facilities, and financing costs. The new COP funding plan includes: $40M for site acquisition, $20M for public housing/HUD co-op repairs, $12M for educator housing, $10M for SRO elevator repairs, $30M for nonprofit community facility acquisitions, and $34.8M for financing costs.
Key Debate: Supervisor Dean Preston expressed strong frustration that two components—public housing repairs ($20M) and SRO elevator repairs ($10M)—still lacked a timeline for issuing NOFAs or RFPs nearly a year after the spending plan was agreed (June 2022). MOHCD Deputy Director Benjamin McCloskey cited staff capacity and vacancy issues (30% staff loss over three years). HSH’s Emily Cohen later clarified that a solicitation for elevator repairs would go out this summer. MOHCD Director Eric Shaw stated the public housing/co-op piece is delayed due to governance and capacity concerns among co-op boards and the need for alignment with redevelopment plans for Plaza East and North Beach. Chair Chan noted the committee would have a deeper housing discussion later that day.
Modification: The BLA’s recommendation for a report back by November 1, 2023, was revised to a quarterly report starting in September 2023, as proposed by Chair Chan and accepted by MOHCD.
Public Comments & Testimony
- Francisco De Costa (speaking on items 7-9) accused presenters of being “full of BS” and demanded accountability for federal funds, including a need assessment.
- Greg Hardeman (Elevator Constructors Union, Local 8) supported item 9, emphasizing safety risks from broken elevators in SROs and urging fast track of the $10 million allocation.
- Additional speaker (name not given) urged the committee to dedicate $85 million in new revenue to land acquisition and housing, citing the Housing Stability Fund Oversight Board’s recommendation.
Key Outcomes
- Items 1-5 approved and forwarded to full board with positive recommendations (unanimous).
- Item 6 continued to the call of the chair for further discussion with Supervisor Ronen’s office and to allow Public Works to provide information on the nonprofit’s financial health and the new RFP process.
- Items 7-9 approved and forwarded to full board with positive recommendations (unanimous). The committee requested MOHCD provide a quarterly report back by September 2023, including timelines for remaining NOFAs on public housing repairs and SRO elevator repairs.
Meeting Transcript
Good morning. This meeting will come to order. Welcome to the May 10, 2023 meeting of the budget and finance committee. I'm Supervisor Connie Chan, Chair of the Committee, and I'm joined by Vice Chair Rafael Mendelman. Supervisor Safai will join us shortly. Our clerk is Brent Halipa. I would like to thank Jason Gohammer for S from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcement? Oh, yes, madam chair. Just a friendly reminder for those in attendance. Please make sure to sound 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. Public comment will be taken on each item on the agenda. Those attending in person will be allowed to speak first, and then we'll take those waiting on the telephone line for those watching remotely and streaming through sfgovtv.org. The public comment call in number is streaming across the screen. When connected, you will hear the meeting discussions, but you'll be muted and in listening mode only. When your item of interest comes up and public comment is called. Those joining us in person should line up to speak, and those on telephone should dial star three to also be added to the speaker line. If you're on your telephone, please remember to turn on your TV and all listening devices may be using, and each speaker will be allowed up to two minutes to speak unless otherwise stated. Alternatively, you may submit public comment and writing in either of the following ways. Email them to myself, the budget and finance committee clerk at B R E N T dot J A L I P A Hat S F G O V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service to our office and city hall. That's one. Dr. Carlton B. Goodlick place, room 244, San Francisco, California, 94102. And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors agenda of May 16th, unless otherwise stated. Thank you, Mr. Clerk. Supervisor Asha Safai is gonna be running a little bit late. And so he has asked to be excused uh until his arrival. Um could I just do I need to do a roll call, Mr. Clerk? Uh yes, madam chair. Great. Uh I'll make the motion to excuse Supervisor Safayi until his arrival. And uh with that roll call, please. On the motion to excuse uh Supervisor Safayi until his arrival. Uh Vice Chair Mandelman Mandelman, I uh Chair Chan. I Chan I. We have two eyes with uh member Safai excused. Thank you. The motion passes. Um thank you. And so today we have uh a few items that does have uh budget and legislative analysts report. So we'll have a presentation and then the report, and then uh we'll do public comments and comments and questions. And so with that, Mr.
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