Budget and Finance Committee Meeting - November 1, 2023
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Budget and Finance Committee Meeting – November 1, 2023
The Budget and Finance Committee of the San Francisco Board of Supervisors met on Wednesday, November 1, 2023, at 10:00 AM (estimated) in City Hall. Chair Connie Chan presided, joined by Vice Chair Rafael Mandelman and Supervisor Ahsha Safaí. The committee considered 12 agenda items, including a $300 million affordable housing bond, several contracts, emergency declarations, and leases.
Public Comments & Testimony
-
Items 1 & 2 (Affordable Housing Bond):
- Elena Engel (350 San Francisco) expressed support for the bond but argued that the 30 million for housing preservation should include a firm commitment to electrify units (remove methane gas). She stated that decarbonization costs are about 3–4% of the preservation fund.
- John Avalos (Council of Community Housing Organizations) expressed full support for the bond, stating it is necessary for San Francisco’s economic recovery and will leverage state and federal funds. He noted that decarbonization can be funded through other sources like the Public Utilities Commission.
-
Items 6–8 (Jackson Park Grant & Emergency Declarations):
- Multiple parents and community members (e.g., Sasha Xavier Reich, Zuri Peace Green) spoke in favor of the Jackson Park renovation, citing the need for better facilities, safe bathrooms, and reduced conflict over field usage. J.R. Epler (Potrero Boosters) noted the park’s critical role in the neighborhood’s open space ecosystem.
- Woody LaBounty (San Francisco Heritage) supported the Trocadero Clubhouse repairs, calling it a historic neighborhood jewel.
-
Item 11 (SF General Hospital Foundation Lease):
- Kim Meredith, CEO of the Foundation, stated the organization has raised $245 million since 1993 and has a five-year plan to raise another $250 million. She noted they invested $2 million in building upgrades and requested continued rent-free space.
Discussion Items
-
Items 1 & 2 – Affordable Housing General Obligation Bond (Not to Exceed $300,000,000):
- The committee heard these items after a one-week hold due to amendments requested by President Peskin. The Budget and Legislative Analyst (BLA) recommended approval. Vice Chair Mandelman added as co-sponsor. The committee voted 2-0 (Safaí absent) to forward both items to the full board with a positive recommendation.
- Note: The bond will appear on the March 5, 2024 ballot.
-
Item 3 – Administrative Code – Reproduction and Notary Fees:
- The Department of Administrative Services requested fee increases for the Permit Center’s print and notary services to recover costs. The BLA recommended approval. The committee voted 2-0 (Mandelman absent) to forward with a positive recommendation.
-
Item 4 – Purchase of Used CNG Buses from Phoenix ($350,000):
- SFO proposed buying 14 used compressed natural gas transit buses (13–14 years old, useful life 3–5 years) for $25,000 each to expand employee shuttle service. Total cost with towing and parts estimated at about $110,000 per bus, far less than new electric buses ($900,000 each). The BLA recommended approval. The committee voted 3-0 to forward with a positive recommendation. Supervisor Safaí noted the decision balances environmental goals with fiscal prudence.
-
Item 5 – District 7 Participatory Budgeting Appropriations ($527,000):
- Supervisor Melgar’s office presented 17 projects selected by district residents, including mural art, playground upgrades, traffic calming, and emergency preparedness. The BLA recommended approval. The committee voted 3-0 to forward with a positive recommendation.
-
Items 6 – Jackson Park Renovation Grant ($12,440,735):
- Rec and Park presented a $12.4 million grant from Friends of Jackson Park to renovate the 5‑acre park (last renovated 1998). The total project cost is about $40 million, with $30 million already raised. The design includes multi‑use courts, flexible open space, and a renovated clubhouse. Supervisor Safaí raised concerns about scheduling conflicts between basketball and pickleball; staff said community meetings continue (next on Nov. 11). Chair Chan questioned the in-kind architectural donation and community input. The committee voted 3-0 to forward the resolution with a positive recommendation. Supervisor Safaí added as co-sponsor.
-
Items 7 & 8 – Emergency Declarations for Storm Damage:
- Rec and Park declared emergencies for winter storm damage at Stern Grove (debris removal) and Trocadero Clubhouse repair. The BLA noted that the department missed the 60‑day deadline to submit resolutions to the board. The committee amended Item 8 to cap the Stern Grove emergency work at $2.1 million (as recommended by BLA). The committee voted 3-0 to forward both items without recommendation to the full board, with the expectation that Rec and Park will establish written emergency procedures within 30 days.
-
Item 9 – Radiation Detection Badge Services Contract ($420,000):
- The Office of Contract Administration (OCA) requested approval for a five-year contract (with two-year option) for dosimetry monitoring for city employees exposed to radiation. The BLA recommended approval. The committee voted 3-0 to forward with a positive recommendation.
-
Item 10 – Gasoline Contract Amendment with Western States Oil (Not to Exceed $35,450,000):
- OCA requested retroactive approval of a fifth amendment increasing contract value by $2.95 million and extending term by 19 days (to November 19, 2023) due to rising fuel prices. The BLA found the increase reasonable. The committee voted 3-0 to forward with a positive recommendation.
-
Item 11 – Lease with SF General Hospital Foundation ($0 Rent):
- The Real Estate Department proposed a 20‑year no‑rent lease for the foundation (about 4,900 sq ft) to continue its fundraising support for Zuckerberg San Francisco General Hospital. The BLA noted a past unpaid rent issue (now resolved) and that the total rent waived over 40 years is $13.6 million, calling it a policy matter. The committee voted 3-0 to forward with a positive recommendation, acknowledging the foundation’s $245 million fundraising and future $250 million goal.
-
Item 12 – Lease at 3801 3rd Street (Bayview Plaza, $554,347/year):
- The chair requested a continuance to the call of the chair due to outstanding BLA analysis and her concerns. The committee voted 3-0 to continue the item.
Key Outcomes
- Items 1 & 2 (Affordable Housing Bond): Forwarded to full board with positive recommendation (2-0, Safaí absent).
- Item 3 (Reproduction Fees): Forwarded with positive recommendation (2-0, Mandelman absent).
- Item 4 (CNG Bus Purchase): Forwarded with positive recommendation (3-0).
- Item 5 (District 7 Budget Transfer): Forwarded with positive recommendation (3-0).
- Item 6 (Jackson Park Grant): Forwarded with positive recommendation (3-0).
- Items 7 & 8 (Emergency Declarations): Forwarded without recommendation (3-0) after amending Item 8 to cap at $2.1 million; Rec and Park to report back within 30 days on emergency procedures.
- Item 9 (Radiation Badges): Forwarded with positive recommendation (3-0).
- Item 10 (Gasoline Contract): Forwarded with positive recommendation (3-0).
- Item 11 (SFGH Foundation Lease): Forwarded with positive recommendation (3-0).
- Item 12 (Bayview Plaza Lease): Continued to call of chair (3-0).
The meeting adjourned after approximately 2 hours.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the November 1st, 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 and shortly by Supervisors Asha Safayi. Our clerk is Brent Halipa today. I would like to thank uh Matthew Enol from SFGov TV for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Uh on October 17th, 2023. The Board of Supervisors approved a motion discontinuing remote public comment and participation at all board and committee meetings. Uh going forward, all public comment will be taken in person with remote access only being provided for those who require an ADA accommodation. For those currently in attendance, public comment will be taken on each item on this agenda. When your item of interest comes up in public comment is called, please line up uh to speak uh right along those curtains to your right. 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 Br ENT dot J A L I P A at 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. He may also send your written comments via U.S. Postal Service to our office in City Hall. That's one. Dr. Carlton B. Goodlett Place, room for 244, San Francisco, California, 94102. And uh just a friendly reminder for those in attendance during this meeting. Uh please make sure to sound all cell phones and electronic devices. And should you have any documents to be included as part of the official file, it should be submitted to myself, the clerk. And finally, madam chair, items acted upon today are expected to appear on the Board of Supervisors agenda of November 7th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And uh this these two I uh before we call item one and the remaining items on the agenda. I would like to remind uh the public that we have budget and legislative analyst reports for items. Um there are actually a few of them on the uh today's agenda. And so for those items, we will have the department presentation first, followed by the budget and legislative analyst report, then we will take questions and public comment. And with that, Mr. Clerk, please call items number one and two together. Yes, items uh number one and two. Uh item number one is the resolution determining and declaring that the public interest and necessity demand the construction development acquisition and or rehabilitation of rental affordable housing projects and related costs necessary or convenient for the going uh for the foregoing purposes to be financed through bonded indebtedness and the amount not to exceed 300 million uh or sorry, yes, 300 million, subject to independent citizen oversight and regular audits, authorizing landlords to pass through 50 percent of the resulting property tax increase to residential tenants under administrative code, uh providing for the levy and collection of taxes to pay both principal and interest on such bonds, affirming the determination under the California Environmental Quality Act, and finding that the proposed bond is consistent with the general plan and the eight priority policies of the planning code. And item two is the associated ordinance calling and providing for a special election to be held in the city and county on Tuesday, March 5th, 2024 for the purpose of submitting to the voters these propositions to incur bonded indebtedness. Madam uh Madam Chair. Thank you, Mr. Clerk. And uh these two items just want to remind everyone that we heard these items last week and uh have made amendments to it uh according to the request of President Peskin, and that uh with that it had to sit for a week. Uh and now here we are. Um President Peskin, would you like to make uh opening remark for these two items and just also that we have a updated uh budget and legislative analyst report? I note that the budget and legislative analysts recommends approval. I think everything that we discussed last week remains true. I commend this item to you and look forward to moving it to the full board. I have been working closely with Mayor Breed and her administration and look forward to a collaborative effort to get this on the ballot and have it passed by the voters in March.
openpublica.com