Budget and Finance Committee Regular Meeting - March 6, 2024
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Budget and Finance Committee Regular Meeting - March 6, 2024
The Budget and Finance Committee of the San Francisco Board of Supervisors met on March 6, 2024, at 9:00 AM local time. Chair Connie Chan presided, with Vice Chair Rafael Mandelman and Supervisor Myrna Melgar in attendance. The committee considered six agenda items: a property exchange amendment, two grant acceptances, a bond refunding authorization, and a waste services contract. All items except the waste services contract were forwarded to the full board with positive recommendations; the contract was continued to the call of the chair.
Property Exchange Agreement Amendment (Item 1)
- Discussion: Andrico Pinick, Director of Real Estate, presented a resolution to retroactively approve a second amendment to the conditional property exchange agreement with EQX Jackson SQ Holdco LLC, extending the anticipated closing date to December 15, 2026, due to unfavorable financing conditions. The agreement is a public-private partnership where Related Companies would build a new Fire Station 13 in exchange for city property at 530 Sansome Street. All other terms remain unchanged; any future changes would require further board approval.
- Public Comment: None.
- Outcome: Forwarded to full board with a positive recommendation (3-0 roll call).
Grants from San Francisco General Hospital Foundation (Items 2 & 3)
- Discussion: Carl Tanagucci, Deputy Director of Primary Care, presented Item 2: acceptance of $373,084.11 for the Children’s Health Center’s HealthySteps Program (November 1, 2023 – June 30, 2024), which provides dyadic behavioral health care for children aged 0-5 and their caregivers, serving about 3,000 patients. Retroactive authorization was needed due to late grant notification. Elizabeth Connolly, analyst at DPH, presented Item 3: acceptance of $212,500 for the Predictive Analytics AI/ML program (July 1, 2023 – June 30, 2028) from the Siegel Family Endowment, aimed at reducing racial equity gaps in heart failure readmission rates using cognitive computing and care paths. Retroactive approval was also sought.
- Public Comment: None.
- Outcome: Both resolutions forwarded to full board with positive recommendation (3-0 roll call).
General Obligation Refunding Bonds (Items 4 & 5)
- Discussion: Vishald Rodhi from the Controller’s Office of Public Finance presented a resolution authorizing the issuance and sale of up to $644,675,000 in Series 2024-R1 general obligation refunding bonds to refund certain outstanding bonds issued between 2015 and 2018. The transaction aims to achieve at least 3% net present value savings per city debt policy; current market conditions have improved since November. An appropriation ordinance places the proceeds in the Controller’s Reserve for FY2023-2024. Nick Menard from the Budget and Legislative Analyst’s office recommended approval.
- Public Comment: None.
- Outcome: Forwarded to full board with positive recommendation (3-0 roll call).
Contract with Allied Waste Services (Item 6)
- Discussion: The item, a resolution to authorize a contract with Allied Waste Services of North America, LLC for refuse collection and disposal services (7-year initial term, with 3-year extension, total not to exceed $119,000,000), was continued to the call of the chair at the request of the City Administrator’s office due to outstanding questions and concerns. Chair Chan noted concerns about labor harmony and the impact on union represented workers, echoing testimony from the previous week.
- Public Comment: Evan Boyd, Regional Vice President of Recology San Francisco, expressed concerns about environmental impacts (adding over half a million additional truck miles to San Francisco streets annually), pricing, and labor issues (taking work from union workers in San Francisco to unrepresented workers in San Jose). He urged the committee to investigate further.
- Outcome: Continued to the call of the chair on a motion by Chair Chan (3-0 roll call).
Adjournment
The meeting was adjourned, with Chair Chan reminding members of the afternoon Budget and Appropriation Committee meeting at 1:30 PM.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the March 6, 2024 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 Supervisor Mayor Namalgar. Our clerk is Brent Halipa. I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcements? Thank you, Madam Chair. Just a friendly reminder. To those in attendance to please make sure to silence all cell phones and electronic devices as to not to interrupt the proceedings. Should you have any documents to be included as part of the file, they should be submitted to myself, the clerk. 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 to speak on the west side of the chamber to your right, my left uh along those curtains. And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the trade by the television to your left by the doors. Uh if you wish to be accurately recorded for the minutes, uh 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. A L I P A hat S F G O 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. 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. And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors' agenda of March 12th, unless otherwise uh stated. Madam Chair. Thank you. Um, Mr. Clerk. And before we call item number one, I would like to remind everyone that we have budget and legislative analyst reports for items four through six on today's agenda. For those item, we will have the department presentation first, followed by the budget and legislative analyst report. Then we will take questions and public comment. Mr. Clerk, please call item number one. Yes, item number one is a resolution retroactively approving a second amendment to the conditional property exchange agreement with EQX Jackson uh SQ Holdo LLC to extend the anticipated initial closing date to December 15th, 2026, a three-year extension for a transfer of the of city real property at 530 Sansom Street under the jurisdiction of the fire department in exchange for a portion of real property at 425 to 439 Washington Street, authorizing the director of property and city staff to proceed with the proposed fire station development project and authorizing the director of property to enter into any additions, amendments or other modifications to the agreement that do not materially increase the obligations or liabilities or materially decrease the benefits to the city. Madam Chair. Thank you. And today we have our real estate division director, um Pennick here, and uh the floor is yours. Thank you. Thank you. Good morning, Chair Chan, Supervisor Mandelman, Supervisor Melgar, Andrico Pinick, Director of Real Estate. Um before you this morning with a resolution retroactively approving a second amendment to the conditional property exchange agreement, otherwise known as the CPEA, with EQX Jackson SQL C, which is a subsidiary of related companies. Uh the resolution is to extend for three years the anticipated closing date to December 15th, 2026 on this transaction. The reason for the extension is the inability to obtain favorable financing in the current market. All other terms and conditions of the CPEA will remain the same. Any changes in the deal terms in the future would have to come back before this board for your consideration and approval. You may recall that the CPEA is a public-private partnership wherein related would build a new fire station 13 in exchange for the D to 530 Samsung, all as part of a mixed-use uh high-rise tower project. The defire the fire department is aware of this request and is in support.
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