Budget and Finance Committee Meeting - July 19, 2023
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San Francisco Budget and Finance Committee Meeting - July 19, 2023
The Budget and Finance Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Rafael Mandelman and Supervisor Asha Safai, met on July 19, 2023, to consider 14 agenda items. The committee forwarded most items to the full Board of Supervisors with positive recommendations, but sent three items (10, 13, and 14) without recommendation due to concerns about contract management, performance evaluations, and cost overruns. Public comment was received on items 8, 9–12, and 13–14.
Public Comments & Testimony
- Item 8 (Chase Center license): Vanessa Gonzalez from the Golden State Warriors expressed full support for the curb license agreement, highlighting collaboration with SFMTA and the Port to improve traffic flow and pedestrian safety.
- Items 9–12 (PUC contracts): David Pilpel urged the committee to consider bringing engineering and construction management work in-house where possible, and supported the proposed management audit of the PUC.
- Items 13–14 (Central Subway contracts): David Pilpel noted that prior value engineering decisions led to the need for additional funding, and that lessons learned should be applied to future projects.
Discussion Items and Key Outcomes
Item 1: Proposition 64 Grant ($3,000,000)
The Office of Cannabis presented a resolution to accept a $3 million grant from the Board of State and Community Corrections for public health and safety efforts related to cannabis legalization. The funds will fully support five positions through October 2028. Supervisor Mandelman added as a co-sponsor. No public comment. Motion to forward to full board with positive recommendation passed unanimously (3-0).
Item 2: Ryan White HIV/AIDS Grant Increase ($7,223,161)
The Department of Public Health presented a resolution to retroactively accept a $2.56 million grant increase for a total of $7.22 million from HRSA to support HIV treatment and viral load suppression among underserved populations. No public comment. Motion to forward to full board with positive recommendation passed unanimously (3-0).
Items 3 & 4: Bank of America Contract Amendments (Merchant Processing & Banking Services)
The Treasurer and Tax Collector’s Office presented amendments to extend contracts for merchant processing services (increase by $1.13 million, one-year extension) and banking services (increase by $83,000, 90-day extension). The BLA noted the merchant processing extension exceeded the original RFP term due to COVID delays. No public comment. Motion to forward both to full board with positive recommendation passed unanimously (3-0).
Items 5, 6, & 7: Port Lease Amendments and Terminations
- Item 5 (Chowder Hut): Amendment to allow tenant improvements at Fisherman’s Wharf, increasing minimum investment from $800,000 to $900,000 and extending deadline to March 2024.
- Items 6 & 7 (Lou’s Pier 47 and Pompeii’s Grotto): Mutual termination agreements for two restaurants that closed during the pandemic. Lou’s Pier 47 will pay $200,000 termination fee; Pompeii’s Grotto will pay $150,000. Both leave premises in turnkey condition. BLA reported the net cost to the port is $659,107. No public comment. Motion to forward all three to full board with positive recommendation passed unanimously (3-0).
Item 8: Chase Center Curb Space License (GSW Arena LLC)
The Port presented a new 10-year license (with two five-year options) for non-exclusive use of passenger and commercial loading zones and 80 metered parking spaces on game/event days near Chase Center. Anticipated revenue over initial term is $1.5 million, with potential total of $3.5 million. Public comment in support received. Motion to forward to full board with positive recommendation passed unanimously (3-0).
Items 9–12: PUC Contracts (WAPA, Parsons, McMillen Jacobs, Yardi)
- Item 9 (WAPA Power Contracts): Fourth amendment to extend scheduling and full-load service contracts through 2029, increasing the not-to-exceed amount to $41.5 million. BLA recommended approval. No public comment. Forwarded with positive recommendation.
- Item 10 (Parsons Construction Management): Request for $12 million increase (total $47 million) with no term change. BLA noted 90% of original contract spent by year five, partly due to unexpected electrical and safety work and LBE technical assistance. Performance evaluations were lacking. Supervisor Safai proposed a one-year extension instead of two; Vice Chair Mandelman supported two years. Chair Chan broke the tie, supporting two years. Motion to forward to full board WITHOUT recommendation passed (3-0).
- Item 11 (McMillen Jacobs Tunnel Engineering): Fifth modification to increase contract by $7.5 million (total $17.2 million) and extend by four years through 2027 for the Folsom Area Stormwater Improvement Project. Additional work includes modeling for Caltrans infrastructure. No public comment. Forwarded with positive recommendation.
- Item 12 (Yardi Software): Third amendment to extend software-as-a-service contract by five years, increasing total to $515,290. Sole source justification. No public comment. Forwarded with positive recommendation.
Items 13 & 14: Central Subway Design Contracts (CSDG and HNTB)
SFMTA presented amendments to extend two design contracts by one year (with option for a second year) and increase each by $1 million (total $2 million now, up to $4 million if options exercised). Funds will address safety, security, water intrusion, and other enhancements. BLA noted lack of contractor performance evaluations and recommended a hearing. Chair Chan expressed concern about additional costs but acknowledged the project is nearing completion. Public comment supported forwarding. Non-substantive amendments were made to item 13. Motion to forward both to full board WITHOUT recommendation passed (3-0).
Key Outcomes
- All items except 10, 13, and 14 were forwarded to the full Board of Supervisors with positive recommendations.
- Items 10, 13, and 14 were forwarded without recommendation, reflecting concerns about contract management, cost overruns, and lack of performance evaluations.
- The committee directed the PUC to report back on progress for the Parsons contract within one year and to provide a list of LBE participants.
- The BLA recommended a hearing on SFMTA contractor performance evaluations in September 2023.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the July 19, 2023 meeting of the Budget and Finance Committee. I'm Supervisors Connie Chan. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Rafael Mendelman and shortly by Supervisor Asha Safai. Our clerk is Brent Haliba. I would like to thank uh SFGov TV's Jamie Avachuri for 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 to not to enter 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 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, and when connected, you will hear the meeting discussions, but you will 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 telephone should dial star three to be added to the speaker line. If you're on your telephone, please remember to turn on your TV and all listening devices you may be using. And 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 dot J A L I P A at SFGO 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 at City Hall at one Dr. Carleton 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 July 25th, unless otherwise stated. Madam Chair. Thank you. And with that, too, uh just a reminder today is the last of the budget and finance committee before it's the last one before we take recess uh uh for for the entire board of supervisors starting uh next week or week after next week. Um so with that, uh before we call item number one, I would like to remind everyone that we do have budget and budget and legislative analyst reports for items three, six, seven, and nine through eleven, uh, thirteen, fourteen. And for those items, we will have department presentation first, followed by the budget and legislative uh analyst report, then we will take questions and public comment. Um Mr. Clerk, could you please call item number one? Yes, item number one is a resolution retroactively authorizing the Office of Cannabis to accept and expand a grant award in the amount of three million uh from the Board of State and Community Corrections for the Proposition 64 Public Health and Safety Grant Program for a term of May 1st, 2023 through October 31st, 2028, and authorizing the Office of Cannabis to execute the agreement with the Board of State and Community Corrections and any extensions, amendments or contracts subsequent thereto on behalf of the city and county. Members of the public who are joining us remotely and wish to comment, uh press star three to enter the speaker line. Hey, prompt will indicate that you have raised your hand and when the system indicates you haven't been unmuted that we'll be your queue to begin your comments. Madam Chair. Thank you. I believe we have the Office of Cannabis here. And uh please introduce yourself. First name, last name, and your title. I did not want to do it for you, even though I have it written here. I'm sure that you were gonna do it better than I will. Good morning, thank you, madam chair, supervisor. My name is Yule Skinzirava, Associate Director, Office of Cannabis. Uh, we have a slide presentation. If you could please give us a few moments to put it up.
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