OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Finance Committee Meeting - April 17, 2024

Budget and Finance Committee — Wednesday, April 17, 2024
BodySan Francisco, California
SessionBudget and Finance Committee
DateWednesday, April 17, 2024
StatusFILED
Video Record
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Transcript — Verbatim
0:07

Good morning.

0:08

The meeting will come to order.

0:09

Welcome to the April 17, 2024 meeting of the budget and finance committee.

0:13

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

0:16

I'm joined by Vice Chair Raphael Mendelman and shortly by Supervisor Mirna Malgar.

0:20

Our clerk is Brent Taliba.

0:22

I would like to thank Colina Mendoza from SFGAU TV for broadcasting this meeting.

0:26

Mr.

0:27

Clerk, do you have any announcement?

0:31

Thank you, Madam Chair.

0:32

Just friendly reminder for those in attendance.

0:34

Uh to please make sure to silence all cell phones and electronic devices as and not to interpret our proceedings.

0:39

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

0:44

Public comment will be taken on each item on this agenda.

0:46

When your item of interest comes up and public comment is called, please line up to speak on the west side of the chamber to your right, my left along those curtains.

0:54

And while not necessary to provide public comment, we do invite you to fill out a comment card and leave them under trade on the television by your left by the doors.

1:02

If you wish to be accurately recorded for the minutes and alternatively, you may submit public comment in writing in either of the following ways.

1:09

Email them to myself, the budget and finance committee clerk at B R E N T dot J A L I P A HET SFGO V dot ORG.

1:18

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

1:24

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

1:26

Postal Service or Office and City Hall.

1:28

That's one Dr.

1:29

Carlton be good at the place, room 244.

1:32

San Francisco, California, 94102.

1:34

And uh finally, Madam Chair, items acted upon today are expected to appear on the board of supervisors agenda of April 23rd, unless otherwise stated.

1:44

Madam Chair.

1:45

Thank you, Mr.

1:46

Clerk.

1:46

And before we call item number one, I would like to remind everyone that we have budget and legislative analyst report uh for items three to five and seven through twelve on today's agenda.

1:58

So for those items, we will have the department presentation first, and then followed by the budget and legislative analyst report and then questions, and then we will go to public comment.

2:08

And with that, Mr.

2:09

Clerk, please call item number one.

2:12

Yes, item number one.

2:14

I'm sorry, one second.

2:17

Item number one is an ordinance amending the administrative code to permit the assessor either to either not enroll on the assessment rule certain property exempt from property taxation due to its low value or to enroll such property and apply the exemption.

2:31

Madam Chair.

2:32

Thank you.

2:33

And today we have the Office of Treasurer and Tax Collector's Office here.

2:37

Good morning.

2:37

Good morning, Supervisors.

2:38

Eric Mankey with the Office of the Treasury and Tax Collector.

2:41

Uh today I'm presenting a proposed ordinance that permits the assessor to enroll a low-value property on the assessment roll and then apply the low value exemption.

2:50

Um this is a technical uh change that codifies existing policy and conforms to the administrative code to uh state law uh to provide a little bit of background.

3:01

Uh California law permits counties to exempt from property tax um any property with a uh total value so low that if not exempt would amount to less than the cost of assessing and collecting them.

3:15

Um California law also permits the assessor to either not enroll the low value property or to enroll and then apply the exemption.

3:23

Um however, currently the administrative code exempts low value property from property taxes, but directs the cessor not to um enroll the property on the assessment roll.

3:34

This ordinance would um simply provide the option to either not enroll or to enroll and then apply the exemption.

3:41

The practice of enrolling and then um and then applying the exemption is preferred because it continues to allow the application of community benefit district and other fees.

3:53

Um with that I will end and um open it up for any questions you might have.

3:59

Thank you.

3:59

Uh I don't see any name on the roster.

4:01

Um let's go to public comments on this item.

4:04

Thank you, madam chair.

4:06

Uh, if we have any members of the public who wishes to address this committee regarding this item number one, now's your opportunity to approach the lectern, and each speaker will be given two minutes.

4:16

Madam Chair, we have no speakers.

4:18

Thank you.

4:18

Seeing no public comments, public comment is now closed.

4:21

And uh Mr.

4:22

Clerk, I would like to make the motion uh to move this item to full board with recommendation and the roll call, please.

4:29

And on that motion to forward this ordinance of the full board with a positive recommendation, Vice Chair Mandelman.

Discussion Breakdown — Share of Meeting
Public Comment██████████████████18%
Procedural███████████11%
Real Estate And Leases██████████10%
Affordable Housing██████████10%
Public Utilities█████████9%
Capital Planning████████8%
Public Works███████7%
Homelessness█████5%
Land Use████4%
Summary of Proceedings

Budget and Finance Committee Meeting - April 17, 2024

The Budget and Finance Committee, chaired by Supervisor Connie Chan, met on April 17, 2024, to consider 13 agenda items including property tax exemptions, contract approvals, leases, and development agreements. The committee approved most items, amended several, and continued one item to a future meeting. Vice Chair Raphael Mandelman and Supervisor Myrna Melgar were in attendance.

Consent Calendar

  • Item 1 (Low-Value Property Tax Exemptions) was passed unanimously with a positive recommendation to the full board.
  • Items 2 and 3 (Technical Assistance Marketplace and Health Advocates contract) were approved together unanimously.
  • Item 4 (Airport escalator contract modification) was approved unanimously.
  • Item 5 (Water recycling engineering contract amendment) was approved unanimously.
  • Item 10 (Abode Services grant amendment) was approved unanimously.
  • Item 13 (Transbay Block 2 East housing revenue notes) was approved unanimously.

Public Comments & Testimony

  • Rudy Gonzalez (Building Trades Council) supported item 4, noting the involvement of elevator constructors.
  • Anthony (construction superintendent) stated the Jolly Bee restaurant at 934 Market Street is targeting an end-of-year opening.
  • Brandon Cox (Lighthouse for the Blind) expressed concern about the city ending its partnership at 1155 Market Street, questioning the message to nonprofits investing in mid-Market.
  • Rudy Gonzalez also supported item 9, praising the Hudson building lease for improving working conditions and emergency capacity.
  • Mia San Giacomo and Paul Wallace (1145 Market Street stakeholders) supported the lease, noting it would help encourage Whole Foods to reopen.
  • Van Hart objected to the short notice and timing of the 1145 and 1455 Market leases, advocating for continued use of the Lighthouse building.
  • Giselle Madrid (Abode Services) supported item 10, sharing a success story of a formerly homeless participant who stabilized through the flexible housing subsidy pool.
  • Multiple union representatives (Carpenters, Building Trades) supported items 11 and 12, emphasizing job creation and housing benefits on Treasure Island.
  • Sherry Williams and others (One Treasure Island) urged approval, warning that delay would jeopardize affordable housing units and behavioral health facilities.
  • Chef Klein opposed the Treasure Island amendments, citing earthquake and megastorm risks not fully addressed.
  • Other speakers offered brief commentary on various items.

Discussion Items

Items 7, 8, and 9: Steam Loop Transfer and Market Street Leases

  • Steam Loop (Item 7): The city will transfer ownership of the 100-year-old steam loop to Energy Center San Francisco (ECSF) for $3.1 million in emergency repairs and a five-year steam purchase commitment. The BLA recommended adding language stating the public interest necessitates the transfer. The committee adopted that amendment.
  • 1145 Market Street Lease (Item 8): A 10-year lease at $29.95/sq ft for 45,000 sq ft, housing DPH, OCEIA, and DMAC. Estimated savings of $1 million annually. The committee amended the resolution to require the director of property to notify the board before exercising extension options, rather than requiring board approval.
  • 1455 Market Street Lease (Item 9): A 21-year lease for 157,000 sq ft at $40/sq ft, with options to expand and purchase. Savings of $2.5 million annually. The lease includes tenant improvement allowances and swing space. The committee approved without additional amendments.

Items 11 and 12: Treasure Island Development Amendments

  • The committee considered amendments to the development agreement (DA) and disposition and development agreement (DDA) to accelerate public financing via $115 million in certificates of participation (COPs) for stage two infrastructure. Concerns were raised about COP capacity and impact on the city's capital plan.
  • Supervisor Dorsey proposed a technical amendment to the DA (striking certain exhibit references). The committee adopted it.
  • Additional amendments were adopted per OEWD: COPs to be issued in at least three tranches, one per fiscal year, only after the 10-year capital plan demonstrates capacity, and with debt service deferred to FY27/28.
  • The amendments were approved and forwarded to the full board.

Item 6: Honeybee Foods License (Hallidie Plaza)

  • The resolution originally proposed a $1,200 monthly base fee for an underground electrical utility line. Real Estate Director Gorham requested an amendment to change to an annual fee of $1,200. The committee adopted the amendment but, because it was substantive, voted to continue the item to the April 24 committee meeting.

Key Outcomes

  • Item 1: Approved unanimously (3-0) to full board.
  • Items 2 & 3: Approved unanimously to full board. Supervisor Mandelman added as co-sponsor.
  • Item 4: Approved unanimously to full board.
  • Item 5: Approved unanimously to full board.
  • Item 6: Amended (yearly fee) and continued to April 24, 2024 meeting (3-0).
  • Item 7: Amended per BLA recommendation, then approved unanimously as amended to full board.
  • Item 8: Amended to add notification requirement, then approved unanimously as amended to full board.
  • Item 9: Approved unanimously to full board.
  • Item 10: Approved unanimously to full board.
  • Items 11 & 12: Amended per Supervisor Dorsey and OEWD, then approved unanimously as amended to full board.
  • Item 13: Approved unanimously to full board.

The meeting adjourned at approximately 2:00 PM.

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the April 17, 2024 meeting of the budget and finance committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Raphael Mendelman and shortly by Supervisor Mirna Malgar. Our clerk is Brent Taliba. I would like to thank Colina Mendoza from SFGAU TV for broadcasting this meeting. Mr. Clerk, do you have any announcement? Thank you, Madam Chair. Just friendly reminder for those in attendance. Uh to please make sure to silence all cell phones and electronic devices as and not to interpret our proceedings. Should you have any documents to be included as part of the file, it 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 and public comment is called, please line up to speak on the west side of the chamber to your right, my left along those curtains. And while not necessary to provide public comment, we do invite you to fill out a comment card and leave them under trade on the television by your left by the doors. If you wish to be accurately recorded for the minutes and 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 HET 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 or Office and City Hall. That's one Dr. Carlton be good at the 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 April 23rd, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And before we call item number one, I would like to remind everyone that we have budget and legislative analyst report uh for items three to five and seven through twelve on today's agenda. So for those items, we will have the department presentation first, and then followed by the budget and legislative analyst report and then questions, and then we will go to public comment. And with that, Mr. Clerk, please call item number one. Yes, item number one. I'm sorry, one second. Item number one is an ordinance amending the administrative code to permit the assessor either to either not enroll on the assessment rule certain property exempt from property taxation due to its low value or to enroll such property and apply the exemption. Madam Chair. Thank you. And today we have the Office of Treasurer and Tax Collector's Office here. Good morning. Good morning, Supervisors. Eric Mankey with the Office of the Treasury and Tax Collector. Uh today I'm presenting a proposed ordinance that permits the assessor to enroll a low-value property on the assessment roll and then apply the low value exemption. Um this is a technical uh change that codifies existing policy and conforms to the administrative code to uh state law uh to provide a little bit of background. Uh California law permits counties to exempt from property tax um any property with a uh total value so low that if not exempt would amount to less than the cost of assessing and collecting them. Um California law also permits the assessor to either not enroll the low value property or to enroll and then apply the exemption. Um however, currently the administrative code exempts low value property from property taxes, but directs the cessor not to um enroll the property on the assessment roll. This ordinance would um simply provide the option to either not enroll or to enroll and then apply the exemption. The practice of enrolling and then um and then applying the exemption is preferred because it continues to allow the application of community benefit district and other fees. Um with that I will end and um open it up for any questions you might have. Thank you.

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