San Francisco Budget and Finance Committee Meeting – May 17, 2023
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San Francisco Budget and Finance Committee Meeting – May 17, 2023
The San Francisco Budget and Finance Committee, chaired by Supervisor Connie Chan, met on May 17, 2023, to discuss several items including an update on the Healthy Airport Ordinance, bond authorizations for San Francisco International Airport, and multiple affordable housing financing resolutions. The meeting featured extensive public testimony from airport workers and community members, as well as discussions on worker retention, health care benefits, and the selection process for affordable housing developers. Key votes included continuing the Healthy Airport Ordinance hearing to the call of the chair and approving financing for a 160-unit affordable housing project at 730 Stanyan Street with an amendment urging inclusion of transitional-age youth services.
Public Comments & Testimony
- Numerous airport workers and union representatives testified in strong support of the Healthy Airport Ordinance (HAO), emphasizing that the health care benefits provided by the ordinance are essential for them to afford living in the Bay Area and to cover medical expenses. Speakers described personal experiences of medical debt, the importance of health care for their families, and the challenges of low wages and high turnover at the airport.
- Several community members and service providers testified in support of the 730 Stanyan Street affordable housing project, urging the committee to maintain the commitment to a transitional-age youth (TAY) drop-in center on the ground floor, as previously promised in community meetings and loan applications.
- A few speakers expressed concerns about the selection process for the developer of 730 Stanyan, questioning the transparency of the scoring and the lack of audit oversight. One speaker criticized the small sites loan program as potentially misusing taxpayer funds.
- Many residents and service providers spoke in strong support of the Homekey grant application for 1174-1178 Folsom Street, noting the urgent need for supportive housing for young adults leaving homelessness and emphasizing the positive impact such housing has on health and stability.
Discussion Items
- Healthy Airport Ordinance Update (Item 1): President Aaron Peskin, co-sponsor of the hearing, opened by noting that the ordinance is under litigation by Airlines for America (A4A) and that a federal judge upheld the city’s authority. Airport representative Kathy Widener provided data on covered employers (70 airlines, 91 service providers) and wage comparisons (QSP rate $19.65/hour, annualized ~$41,000). Widener confirmed that contracts and leases include HAO compliance language. Discussion centered on worker retention: SEIU USWW representative Jane Martin stated that nearly one-third of passenger service workers have been on the job less than a year, and over 60% less than three years, indicating a crisis in retention. Martin reported that contract negotiations with G2, ABM, PrimeFlight, and Compass have stalled over wages. The committee voted to continue the hearing to the call of the chair.
- Airport Bond Authorizations (Item 2): The resolution to authorize up to $6.06 billion in bonds and other related financings was continued to the call of the chair without discussion.
- 730 Stanyan Street Affordable Housing (Items 3 & 4): The Mayor’s Office of Housing and Community Development (MOHCD) presented a plan for 160 units of 100% affordable housing with 20 units for transitional-age youth, 12 for families experiencing homelessness, and a childcare center and community spaces on the ground floor. The Budget and Legislative Analyst (BLA) raised concerns about the developer selection process, noting an unusual supplemental questionnaire and scoring irregularities. Supervisor Dean Preston proposed a non-binding amendment urging MOHCD to include TAY drop-in center services as a ground floor use, referencing prior representations. The amendment passed 2-1 (with Vice Chair Mandelman dissenting). The committee then voted unanimously to forward items 3 and 4 to the full board with a positive recommendation, item 4 as amended.
- Small Sites Loan (Item 5): MOHCD requested $18.8 million (amended to $18.7 million per BLA recommendation) to refinance four existing small sites properties owned by the San Francisco Community Land Trust, funding capital improvements and an ADU. The committee approved the amendment and forwarded the item to the full board.
- Homekey Grant Application (Item 6): The Department of Homelessness and Supportive Housing (HSH) requested authorization to apply for up to $14.7 million in state Homekey funds to acquire 1174-1178 Folsom Street for permanent supportive housing for 42 young adults leaving homelessness. The committee forwarded the resolution to the full board.
Key Outcomes
- Item 1 (Healthy Airport Ordinance hearing): Continued to the call of the chair (motion passed 3-0).
- Item 2 (Airport bond authorizations): Continued to the call of the chair (motion passed 3-0).
- Item 3 (Multifamily housing revenue notes for 730 Stanyan): Approved with amendment and forwarded to full board (3-0).
- Item 4 (Ground lease and loan agreement for 730 Stanyan): Approved as amended (including the urging for TAY services) and forwarded to full board (3-0); the amendment passed 2-1.
- Item 5 (Small sites loan – SFCLT): Amended to reduce not-to-exceed amount from $18.8 million to $18.7 million, then forwarded to full board (3-0).
- Item 6 (Homekey grant application): Forwarded to full board (3-0).
- The committee noted that the budget and appropriations committee would meet later that day at 1:45 PM.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the May 17, 2023 meeting of the Budget and Finance Committee. I am Supervisor Connie Chan, Chair of the Committee, and I'm joined by Vice Chair Rafayan Mendelman and Supervisor Astra Safai shortly. Our clerk, it's Brent Halipa. I would like to thank uh Jaime uh Echevery uh from SFGov TV for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder for those in attendance to 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. Public comment will be taken on each item on the agenda. And those attending in person will be allowed to speak first, and then we will take those who are 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. Those joining us in person should not speak and those on telephone to dial star three to 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, uh the budget and finance committee clerk at B R E N T dot J A L I P A at SFGO V dot ORG. 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 in City Hall. That's one, Dr. Carlton B. Good place. Room 244, San Francisco, California, 94102. Um and for our first item, we have arranged uh the services of Raymond Burris with our with our Office of Civic Engagement and Immigrant Affairs to provide interpretive services for the hearing for this uh committee to receive an update on the current implementation on the healthy airport ordinance. And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors agenda of May 23rd, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. Uh before uh we call item number one. We I would like to just uh remind everyone that we will have the budget and legislative analyst report uh for item two, four, and five uh on today's agenda. And um and so we will have the department presentation in the follow by the report. Then we'll take questions then to public comment. And with that, Mr. Clerk, please call item number one. Yes, madam chair, item number one is a hearing to receive an update on the current implementation of the healthy airport ordinance, including presentations on a list of contractors responsible for complying with the healthy airport ordinance, hit comparison of airport contract worker wages uh to other comparable industries. How whether SF airport uh contract releases and contracts include compliance language with the healthy airport ordinance and worker retention for low-wage workers versus other workers utilizing badging data. Uh members of the public who are joining us remotely and wish to comment on this hearing, please call the uh public comment call in number at 415-655-0001. Enter the meeting ID of 2604-967-6141. Then press pound twice and once connected. Press star three to enter the speaker line. Hey, system prompt will indicate that you have raised your hand and when the system indicates you have been unmuted. And that'll be your signal to begin your comments. Um, as mentioned in my initial comment uh announcements, we are working with Raymond Burris from the Office of Civic Engagement and Immigrant Affairs to provide interpretive services in the gallop. Um, Mr. Boris, uh thank you for joining us today, and please kindly provide our uh public comment instructions and language. Now healthy airport ordinance.
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