San Francisco Budget and Finance Committee Meeting - September 20, 2023
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San Francisco Budget and Finance Committee Meeting - September 20, 2023
The Budget and Finance Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Rafael Mandelman and Supervisor Asha Safayi (and later by President Aaron Peskin), met on September 20, 2023, to consider twelve agenda items. The meeting included resolutions on property tax rates, a fire training facility design contract, a hospice services contract, office leases, technology marketplace amendments, a police salary ordinance, an emergency elevator declaration, a food bank grant, and a commercial ground lease. Voting outcomes varied, with most items approved, one rejected, and one continued.
Public Comments & Testimony
- Item 4 (1155 Market lease): A speaker argued that the building is "worth nothing" due to homelessness in the area and urged the city to use the space for homeless services.
- Item 5 (Onondaga lease): Francisco DeCosta commended Supervisor Safayi for the project but highlighted the need to address PG&E delays and costs.
- Items 6-8 (tech marketplace): A speaker questioned why technology is not being used to speed up FTE hiring in city departments.
- Item 9 (police command staff): Multiple speakers addressed captain turnover and command structure. Chris Romero (Municipal Executives Association) urged reconsideration, citing retention concerns. Chris Schulman (Lower Polk CBD) emphasized the negative impact of captain turnover on community trust. David Pilpel supported restructuring to reduce command staff and proposed retaining station captains for three years.
- Item 10 (Portsmouth Square elevators): No public comments.
- Other items: No public comments on items 1, 2, 3, 11, or 12.
Discussion Items
- Item 1 – Property Tax Rate (Resolution 230957): Jamie Whittaker (Controller's Office) presented the annual resolution setting the secured property tax rate at 1.17769382% (including 1% fixed rate and voter-approved bond debt service at 0.11295032%). The rate decreased by 0.17% from last year. The pass-through rate for residential tenants is approximately $0.07 per $100 of assessed value. The median assessed home increased from $683,637 to $697,310 (2% CPI increase), resulting in a $147.18 tax increase. The tax generates $2.5 billion for the General Fund. The BLA recommended approval. The committee voted 3-0 to forward to the full board with a positive recommendation.
- Item 2 – Fire Training Facility Design (Resolution 230939): Scott Moran (DPW) and Assistant Deputy Chief Gareth Miller (SFFD) requested approval of a $14.1 million architecture and engineering contract with RossDrulisCusenbery Architecture for the new fire training facility at 1236 Carroll Avenue (8-acre site in Bayview). The project is funded by the 2020 ESER bond. The BLA recommended reducing the not-to-exceed amount by $14,814 (to $14,085,186) due to a rounding correction. The committee approved the amendment and then forwarded the resolution to the full board with a positive recommendation (3-0).
- Item 3 – Maitri AIDS Hospice Contract (Resolution 230912): Bill Blum (DPH) presented an amendment to extend the agreement with Maitri AIDS Hospice through March 2027 and increase funding from $9.5 million to $14.1 million (an increase of $4.6 million). The facility provides hospice and mental health services for low-income HIV-positive residents. The BLA noted that mental health service targets were not met in previous years, but DPH reported that staffing has been filled. The committee voted 3-0 to forward the resolution with a positive recommendation.
- Item 4 – 1155 Market Lease (Resolution 230915): Andre Cole (Real Estate) requested approval of a retroactive five-year lease (Feb 2023 – Jan 2028) for 103,000 sq ft at $64.60/sq ft (3% annual increases), totaling $35.5 million over the term. The BLA noted the rate is above the city's appraisal ($62/sq ft) and above current market. Supervisor Safayi expressed discomfort with paying above market, and President Peskin argued the city should reject the lease to send a message to landlords. The committee voted 3-0 to forward the resolution to the full board with a recommendation of do not pass (negative recommendation).
- Item 5 – Onondaga Lease Amendment (Resolution 230952): Andre Cole (Real Estate) and Supervisor Safayi presented a third amendment to increase the city's tenant improvement allowance at 35 Onondaga Avenue from $2.1 million to $2.97 million (an $850,000 increase). The space will house Clinic by the Bay (free clinic) and Artspan (artist space). The BLA noted the city's share of improvements is 2.5 times the 10-year rent, making approval a policy matter. The committee voted 3-0 to forward with a positive recommendation. Supervisor Mandelman added as co-sponsor.
- Items 6-8 – Technology Marketplace Amendments (Resolutions 230905, 230906, 230907): Daniel Sanchez (OCA) presented amendments to increase not-to-exceed amounts for three contracts: CCT Technologies (to $66.5 million, +$3.6M), Insight Public Sector (to $43.8 million, +$3.6M), and Zones LLC (to $26.3 million, +$2.2M). The amendments allow continued spending through Dec 2023 while new contracts are developed. The BLA recommended approval. The committee voted 3-0 to forward all three with positive recommendations.
- Item 9 – Police Salary Ordinance (Resolution 230865): President Peskin proposed an ordinance to delete one assistant chief and three commander positions and add 7.69 police officer positions (Q4 rank). He argued that the command staff has grown from 9 to 15 sworn positions since 2017, leading to captain turnover and increased pension liability (estimated $4M per assistant chief vs. $3M per officer over 30 years). Chief Bill Scott defended the current structure, citing reform work, span of control, and retention needs. The committee heard extensive debate. Supervisor Safayi stressed the need for captain continuity. After public comment, the committee voted 3-0 to continue the item to the October 4, 2023 meeting (though the motion referenced October 5).
- Item 10 – Portsmouth Square Elevators Emergency (Resolution 230949): Stacy Bratley (RPD) requested approval of an emergency declaration for elevator repairs at Portsmouth Square garage, with a not-to-exceed amount of $2.2 million. The BLA recommended deleting the word "estimated" to limit scope. The committee agreed to the amendment and voted 3-0 to forward with a positive recommendation. Supervisor Safayi added as co-sponsor.
- Item 11 – SF-Marin Food Bank Grant (Resolution 230911): Susie Smith (HSA) requested approval of a $17.8 million grant amendment (increase of $6.6 million) for the citywide grocery access program, extending the term through June 30, 2024. The budget decreases from $10.2M to $6M due to the adopted budget. The BLA recommended approval, noting no funding is budgeted for FY 2024-25. The committee voted 2-0 (Supervisor Safayi excused) to forward with a positive recommendation.
- Item 12 – Florida Street Ground Lease (Resolution 230925): Omar Masry (MOHCD) presented a 75-year ground lease for two commercial parcels at 683 Florida and 2070 Bryant streets (part of the Casa Adelante affordable housing development). The lease is for $1/year to allow community-serving uses by Kana SF (nonprofit arts space). The BLA confirmed consistency with prior 2020 approvals. The committee voted 2-0 to forward with a positive recommendation.
Key Outcomes
- Item 1: Approved 3-0 to full board with positive recommendation.
- Item 2: Amended to reduce not-to-exceed amount by $14,814; approved 3-0 as amended.
- Item 3: Approved 3-0.
- Item 4: Voted 3-0 to send to full board with recommendation of do not pass (negative recommendation).
- Item 5: Approved 3-0. Supervisor Mandelman added as co-sponsor.
- Items 6-8: All three approved 3-0.
- Item 9: Continued 3-0 to the October 4, 2023 budget committee meeting (motion referenced October 5).
- Item 10: Amended to remove "estimated" from title; approved 3-0 as amended.
- Item 11: Approved 2-0 (Safayi excused).
- Item 12: Approved 2-0 (Safayi excused).
Meeting Transcript
You're unmuted. The meeting will come to order. Welcome to the September 20th, 2023 meeting of the budget and finance committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Rafael Mendelman, shortly by Supervisor Asha Safayi. Our clerk is Brent Taliba. I would like to thank Matthew Eatnall from SFGov TV 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 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 this agenda. Those attending in person will be allowed to speak first, and then we'll take those who are waiting on telephone line for those watching remotely and streaming through sfgovtv.org. The public comment called the numbers streaming across the screen. And when connected, you will hear 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 telephone 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. 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 Hat 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 be good looked. 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 September 26th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. As usual, we uh have budget and legislative analyst reports uh for all items on today's agenda, which we greatly appreciate. We know it's a jam-pack agenda, and uh with all the reports that needed to be done for this, so we appreciate the budget and legislative analyst office for this. Um, and with that, uh Mr. Clerk, please call item number one. Yes, madam chair. Item number one is a resolution levying property taxes at a combined rate of approximately one dollar seventeen cents on each one hundred dollar evaluation of taxable property for the city and county. Uh City County of San Francisco, San Francisco Unified School District, San Francisco County Office of Education, San Francisco Community College District, and Bay Area Rapid Transit District, and Bay Area Air Quality Management District, and establishing a pass-through rate of approximately seven cents per 100 uh dollars of assessment value for resident uh residential tenants pursuant to the administrative code for fiscal year ending June 30th, 2024. Members of the public have joined us remotely and wish to comment on this resolution. Press star three to enter the speaker line. Hey prompt will indicate that you have raised your hand and when the c when the system indicates you have been unmuted. There will be resettled to be in your comments. Madam Chair. Thank you, Mr. Clerk. I personally always am feeling conflicted when it comes to the discussion around pass-through rates for resident for tenants. Um pass-through tax increase that pass through onto tenants. It's always I feel conflicted about it, but here we are. It's it's a must-be done uh thing or must-be done matter. So um today we have Jamie Whittaker, property tax manager from the controller's office.
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