OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Budget and Finance Committee Meeting – December 13, 2023

Budget and Finance CommitteeWednesday, December 13, 2023
BodySan Francisco, California
SessionBudget and Finance Committee
DateWednesday, December 13, 2023
StatusFILED
Video Record

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Transcript — Verbatim
0:30

Good morning.

0:31

The meeting will come to order.

0:32

Welcome to the December 13, 2023 meeting of the budget and finance committee.

0:37

I'm Supervisor Connie Chan, Chair of the Committee.

0:39

I'm joined by Vice Chair Rafael Mendelman and Supervisor Asha Safayi.

0:44

Our clerk is Brent Talipa and would like to thank uh SFGov TV for broadcasting this meeting.

0:51

Mr.

0:52

Clerk, do you have any announcement?

0:53

Thank you, Madam Chair.

0:54

Just a friendly reminder for those in attendance to please uh make sure to silence all cell phones and electronic devices so as to not to interrupt our proceedings.

1:03

Uh, should you have any documents to be included as part of the file that should be submitted submitted to myself, the clerk.

1:08

Uh public comment will be taken on each item on this agenda.

1:11

When your item of interest comes up and public comment is called, please line up.

1:15

Uh on the west side of the chamber to your right, my left along those curtains.

1:19

Alternatively, you may submit public comment in writing in either of the following ways.

1:23

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 or G.

1:33

If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

1:39

He may also send your written comments via U.S.

1:41

Postal Service to our office in City Hall.

1:43

That's one, Dr.

1:44

Carlton B.

1:45

Goodlick place.

1:46

Room 244, San Francisco, California, 94102.

1:50

And uh finally, Madam Chair, items acted upon today, are expected to appear on the Board of Supervisors agenda of January 9th, 2024, unless otherwise stated.

1:59

Madam Chair.

2:00

Thank you.

2:01

And um before we call the item number one, I would like to just remind everyone that um we have budget and legislative analyst reports for items two through sixteen on today's agenda.

2:14

Uh and for those items, we will have the department presentation first, followed by um the budget and legislative analyst report report, then we will take questions and public comment.

2:25

Mr.

2:25

Clerk, please call item number one.

2:28

Yes, item number one is a hearing to consider the citywide uh project labor agreement or PLA that was executed, uh, the annual reports for fiscal years 2020 to 2021, 21 to 22, and 22 to 23 that highlight the efforts, accomplishments, and challenges encountered and the preliminary high-level methodology developed to evaluate whether the PLA has promoted the efficient economical and timely completion of PLA covered projects, the cost of covered projects and the PLA's impact on local business enterprises and the local workforce.

3:02

Madam Chair.

3:03

Thank you.

3:03

And this item uh this hearing item is uh leading by Supervisor Safayi, and the floor is yours.

3:10

Thank you, Madam Chair.

3:11

Uh thank you uh to everyone that joined us here today uh from organized labor and the departments.

3:18

Um thank you, Chair Chan for scheduling this also before the end of the year.

3:22

I know there's a lot going on.

3:24

Really appreciate, but we wanted to get this in.

3:27

Um as there are projects in the pipelines and there needs to be some clarification on the city side and understanding where we are and what we've accomplished to date.

3:36

Um I was very proud to be part of this uh negotiations to lead the effort to pass a citywide project labor agreement uh back in 2019.

3:47

Uh there were a lot of people that talked about getting this done, and there was not a lot of progress for a few years.

3:54

Um but I really want to thank uh folks from the building trades that that engaged with us, stepped up and allowed us to really move the conversation forward.

4:04

Uh there were a lot of long hours.

4:06

Uh there was some heated disagreements, but at the end of the day, we ended up getting to the finish line, and I think we set the tone for something special in San Francisco.

4:18

Now the question is, is that being fully implemented?

4:22

Is the law being followed?

4:24

And is the city fully uh fulfilling the goals that were set out in the original legislation?

4:32

So that's why I called this hearing.

4:34

I think it's important to have a check-in uh to check on the progress of implementation.

4:40

Uh so we're going to uh look at what was required and we're gonna ask the controller's office and the Office of Labor Standard Enforcement to report back on this progress of implementation.

4:52

So I'm not gonna say much more uh so we can get into the presentations, but just so we know the run of show, we have uh Mark Delarosa from the controller's office, he's the director of audits that's going to present.

5:00

He's the director of audits that's going to present.

5:02

Uh Hunter Wang also from the controller's office.

5:06

Uh Pat Mulligan from the Office of Labor Standards and Enforcement will also uh speak, and then we're gonna provide some time from Rudy Gonzalez from the building trades, and then we'll have questions from committee members, and and then we'll move forward.

5:22

So we what we really want to get into, and we have more, as I said, Mark Delarosa, uh Pat Mulligan from OLSE and controller's office is which projects are currently in the pipeline that will be covered by the PLA, and we'll kind of look at that and get into that.

5:41

So I'm gonna hand this over now to Mark and Hunter from the controller's office to present.

5:48

Thank you, Supervisors, uh Chair Chen, Supervisors Mendelman, and Safai, Mark DeLosa from the Controller's Office.

5:55

I'm joined today by Hunter Wang, as well as our uh staff who worked on this uh report, um uh Oscar Ramos and Singhua Huen.

6:04

Uh before we turn it over to uh Hunter, just a few quick introductory um slides on slide two, I believe, from the presentation that we have.

Discussion Breakdown — Share of Meeting
Labor Relations████████████████████████24%
Public Comment███████████11%
Procurement██████████10%
Procedural█████████9%
Budget and Finance████████8%
Affordable Housing██████6%
Data Management██████6%
Public Works█████5%
Tenant Protection████4%
Summary of Proceedings

San Francisco Budget and Finance Committee Meeting – December 13, 2023

The Budget and Finance Committee, chaired by Supervisor Connie Chan, met on December 13, 2023, to consider a hearing on the Citywide Project Labor Agreement (PLA), several grant acceptances, contract approvals, and annual budget guidelines. The committee approved most items, continued two items, and heard public testimony on the PLA.

Consent Calendar

  • None. All items were discussed individually.

Public Comments & Testimony

  • On the PLA hearing, multiple speakers expressed strong support for the policy. John Doherty (Electrical Workers Local 6) noted the PLA’s effectiveness in getting people into skilled trades but highlighted challenges due to a 75% drop in downtown electrical permit activity and a four-year halt in taking on new apprentices. Alex Lantzberg (research and advocacy director) echoed concerns about downtown work decline and urged clarification that affordable housing projects with city grants should be covered. Dave Fahy (UA Local 38) praised the PLA and noted successful City Build graduations. Joshua Arce (Northern California Laborers Union) cited data showing 51% local workforce and 80% local apprentices on PLA-covered projects vs. 34% and 51% overall. Anthony Viscuso (Local 16) noted that a non-PLA project in the building had no apprentice, while PLA projects always pair journeymen with apprentices. No public comment was offered on items 2–17.

Discussion Items

  • Item 1 (Hearing on Citywide PLA and Annual Reports): The committee reviewed the PLA’s implementation since 2019. Key reports from the Controller’s Office (Mark DeLarosa, Hunter Wang) and the Office of Labor Standards Enforcement (Pat Mulligan) detailed progress: 23 PLA-covered projects awarded (over $428 million total), 23 planned projects ($381 million), 284 letters of assent signed, 88 from LBEs, 46 statements of exemption, and 47 pre-job meetings. No strikes or work stoppages occurred. Supervisor Safai, who led the PLA negotiations, emphasized the importance of full implementation. Rudy Gonzalez (Building Trades Council) highlighted the PLA’s role in expanding local hire and apprenticeship, with 80% local apprentices on PLA projects. He encouraged extending the PLA to other departments, especially housing. Supervisor Chan raised concerns about affordable housing projects not being covered, noting a previous city position that was rescinded. The committee discussed the need for legal clarity and potential expansion.
  • Item 2 (Organized Retail Theft Prevention Grant – $15,326,301): The ordinance was a duplicate of a previously passed item; the committee considered amendments to clarify a waiver for equipment purchases. After a deputy city attorney noted the amendment was substantive, the committee voted to amend and continue the item to January 10, 2024.
  • Item 3 (Emergency Declaration – Zuckerberg SF General Hospital): The department requested a continuance. The committee continued the item to January 10, 2024, acknowledging the urgency of the repairs.
  • Item 4 (Library Grant – $6,336,363): The San Francisco Public Library accepted a state grant for seismic moat and roof replacement projects at the main library. The grant requires a 1:1 match from the library preservation fund, covering 45% of total project costs ($13.94 million). The committee approved the resolution.
  • Item 5 (Eviction Defense Collaborative Grant Amendment – $4,400,000 increase to $11,391,504): MOHCD presented the amendment to fund tenant right-to-counsel services, increasing clients served from 892 to 1,450. The Budget and Legislative Analyst (BLA) noted that performance data is collected but could be better aggregated for easier evaluation. The committee approved the resolution, with Supervisor Chan requesting improved reporting.
  • Item 6 (Prevailing Wage Rates): Annual resolution fixing prevailing wage rates for various city contract workers. The committee approved, with Supervisor Chan adding as a sponsor. An updated rate for motor bus drivers was included.
  • Items 7–16 (Technology Marketplace 3.0 Contracts – 10 contracts, each up to $20 million): The Office of Contract Administration explained the new pool of 61 suppliers for as-needed IT goods and services. The contracts have a five-year term, an 18% LBE subcontracting requirement (increased from 15%), and 37 micro-LBE set-asides. The committee approved all 10 resolutions.
  • Item 17 (Board of Supervisors/Clerk of the Board Annual Budget Guidelines – FY 2024-25 and FY 2025-26): Clerk Angela Calvillo presented the department’s budget highlights, including a $23.6 million current budget, 94 FTE, and ongoing projects such as a new legislative management system and IT infrastructure upgrades. The committee filed the hearing.

Key Outcomes

  • Approved (moved to full board with positive recommendation): Items 4, 5, 6, 7–16.
  • Amended and continued to January 10, 2024: Item 2 (to allow substantive amendment).
  • Continued to January 10, 2024: Item 3 (emergency declaration).
  • Heard and filed: Items 1 and 17.
  • Votes: All actions passed unanimously (2–0, with Supervisor Safai excused for items 2–17).
  • Next Steps: The PLA hearing will be revisited; the committee will seek legal advice on extending PLA coverage to affordable housing projects. The next meeting is scheduled for January 10, 2024.

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the December 13, 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 Supervisor Asha Safayi. Our clerk is Brent Talipa and would like to thank uh 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 uh make sure to silence all cell phones and electronic devices so as to not to interrupt our proceedings. Uh, should you have any documents to be included as part of the file that should be submitted submitted to myself, the clerk. Uh public comment will be taken on each item on this agenda. When your item of interest comes up and public comment is called, please line up. Uh on the west side of the chamber to your right, my left along those curtains. 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 or 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. Goodlick place. Room 244, San Francisco, California, 94102. And uh finally, Madam Chair, items acted upon today, are expected to appear on the Board of Supervisors agenda of January 9th, 2024, unless otherwise stated. Madam Chair. Thank you. And um before we call the item number one, I would like to just remind everyone that um we have budget and legislative analyst reports for items two through sixteen on today's agenda. Uh and for those items, we will have the department presentation first, followed by um the budget and legislative analyst report report, then we will take questions and public comment. Mr. Clerk, please call item number one. Yes, item number one is a hearing to consider the citywide uh project labor agreement or PLA that was executed, uh, the annual reports for fiscal years 2020 to 2021, 21 to 22, and 22 to 23 that highlight the efforts, accomplishments, and challenges encountered and the preliminary high-level methodology developed to evaluate whether the PLA has promoted the efficient economical and timely completion of PLA covered projects, the cost of covered projects and the PLA's impact on local business enterprises and the local workforce. Madam Chair. Thank you. And this item uh this hearing item is uh leading by Supervisor Safayi, and the floor is yours. Thank you, Madam Chair. Uh thank you uh to everyone that joined us here today uh from organized labor and the departments. Um thank you, Chair Chan for scheduling this also before the end of the year. I know there's a lot going on. Really appreciate, but we wanted to get this in. Um as there are projects in the pipelines and there needs to be some clarification on the city side and understanding where we are and what we've accomplished to date. Um I was very proud to be part of this uh negotiations to lead the effort to pass a citywide project labor agreement uh back in 2019. Uh there were a lot of people that talked about getting this done, and there was not a lot of progress for a few years. Um but I really want to thank uh folks from the building trades that that engaged with us, stepped up and allowed us to really move the conversation forward. Uh there were a lot of long hours. Uh there was some heated disagreements, but at the end of the day, we ended up getting to the finish line, and I think we set the tone for something special in San Francisco. Now the question is, is that being fully implemented? Is the law being followed? And is the city fully uh fulfilling the goals that were set out in the original legislation? So that's why I called this hearing. I think it's important to have a check-in uh to check on the progress of implementation.

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