San Francisco Budget and Finance Committee Meeting - May 22, 2024
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San Francisco Budget and Finance Committee Meeting - May 22, 2024
The Budget and Finance Committee, chaired by Supervisor Connie Chan, met on May 22, 2024, to consider multiple resolutions including real property leases, airport concessions, a three-year Mental Health Services Act plan, and grant agreements for homeless services. The committee voted unanimously to forward all items to the full Board of Supervisors with positive recommendations, with one amendment to the Urban Alchemy 711 Post Street shelter contract.
Consent Calendar
- Items 1 and 2: Resolutions approving 15-year and 10-year leases with Trinity Center, LLC at 1145 Market Street for the Law Library ($599,000 initial base rent) and Health Service System ($588,787.05 initial base rent), both with 3% annual increases. Approved unanimously.
- Item 3: Resolution approving a seven-year museum store lease at Harvey Milk Terminal 1 with Love from USA Group, Inc. (minimum annual guarantee $205,000). Approved unanimously.
- Item 4: Resolution approving amendment to the Terminal 3 coffee and quick serve concession lease with Elevate Gourmet Brands SFO group, removing the SF Mac and Cheese Kitchen facility, reimbursing $279,627 for unamortized construction costs, and reducing the minimum annual guarantee from $375,000 to $185,000. Approved unanimously.
Public Comments & Testimony
- On Item 5 (Mental Health Services Act Plan): Multiple speakers, including Tracy Helton, Mark, Maria Jimenez, Nancy, Erin Rubin, Frank Johnson, and Angela Tang (CEO of Rams), expressed strong support for MHSA-funded programs, particularly peer support, vocational services (Rams Higher Ability), and prevention programs (Fuerte). They urged avoiding cuts and highlighted personal success stories of recovery and employment.
- On Item 6 (SF New Deal grants): Carol Tang (Children's Creativity Museum), Raquel Redondias (SOMA Pilipinas), and Scott Roitz (Yerba Buena Community Benefit District) thanked the committee and emphasized the importance of grants for small businesses impacted by the APEC summit, calling for continued community engagement.
- On Items 9 and 10 (Urban Alchemy contracts): Brian Shepherd, Dwight Jones, Danielle Killingsworth, Everett Butler, and others from Urban Alchemy spoke in support, detailing their work at 33 Gough and 711 Post Street, including housing placements, community engagement, and maintaining clean and safe neighborhoods.
Discussion Items
- Item 5 (Mental Health Services Act Three-Year Plan): Jessica Brown (DPH) presented the FY 2023-2026 integrated plan, covering outcomes (e.g., 86% decrease in arrests for older adults in full service partnerships, 87% decrease in mental health emergencies for adults) and the upcoming transition under Proposition 1 (reducing funding categories from five to three). Vice Chair Mandelman expressed concern about the plan's disconnect from acute behavioral health needs and homelessness, and urged a stronger focus on severe mental illness. Chair Chan asked about the timeline for aligning with Prop 1 requirements; the department plans to return for briefings before 2026.
- Item 6 (SF New Deal Grant Amendment): Josio Cruzetta (OEWD) presented the amendment to add $2.455 million for small business grants in the APEC-impacted SOMA area and Tenderloin. Supervisor Dorsey thanked the committee and stakeholders. The BLA report noted that $2 million from the APEC fund was previously approved. No questions from the committee.
- Items 7 & 8 (Episcopal Community Services): Emily Cohen (HSH) presented amendments for the Flexible Housing Subsidy Pool (item 7, $29.5 million total, serving 130 adults annually) and Housing Navigation (item 8, $16.7 million, serving 600 clients annually). Chair Chan inquired about performance metrics; the committee added a requirement to measure average placement time (currently 61 days).
- Items 9 & 10 (Urban Alchemy): Emily Cohen presented amendments for the 33 Gough Cabin Program (item 9, $11.6 million, 9-month extension through March 2025) and 711 Post Street shelter (item 10, $30.4 million, 24-month extension). The BLA reported compliance issues at 33 Gough that were remediated. Chair Chan requested a shorter extension for 711 Post to align contract terms; the department amended item 10 to a 12-month extension (through June 2025) with a reduced total of $22.25 million. The amendment was approved unanimously.
Key Outcomes
- All items (1-10) were forwarded to the full Board of Supervisors with positive recommendations, with the following specific actions:
- Item 5: Approved as presented, with expectation of future briefings on Prop 1 implementation.
- Item 8: Approved with added requirement to track and report average placement time for housing navigation.
- Item 10: Amended to reduce the term from 24 months to 12 months (through June 30, 2025) and the total not-to-exceed amount to $22,246,326; then approved.
- All votes were unanimous (3-0) with Chair Chan, Vice Chair Mandelman, and Member Melgar voting in favor.
- Items acted upon are expected to appear on the Board of Supervisors' agenda of June 4, 2024.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the May 22nd 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 hopefully shortly by Supervisor Mirna Melgar. There she is. Our clerk is Brent Halipa. I would like to thank uh Eugene Labadia and for 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. Uh to please the silence your cell phone so as to not uh interrupt our proceedings. Uh public comment will be taken on each item on this agenda. Uh when your item of interest comes up and public comment is called, please line up to speak along the curtains to your uh to your right, my left and um yeah, right along those curtains. And while not necessary to provide public comment, we do invite you to fill out a comment card and uh leave them on the trade by the television to your left by the doors if you wish to be accurately recorded for the minutes. Uh uh, should you have any documents to be included as part of the file, uh they should be submitted to myself, the clerk. Um, 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 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. Uh, you may also send your written comments via U.S. Postal Service to our office on City Hall at one. Dr. Carlton be good at the place, room 244, San Francisco, California, 94102. And finally, Madam Chair, due to the due to the Memorial Day holiday, items acted upon today are expected to appear on the board of supervisors' agenda of June 4th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And uh, before I call the items uh to on today's agenda, a reminder that uh for items that have budget and legislative analysts report, we will go to the department presentation and the but then the budget legislative analyst report uh and then questions and then public comment. Uh so with that, Mr. Clerk, please call item number one and two together. Yes, madam chair. Items uh item numbers one and two are resolutions approving and authorizing the director of property to execute a le uh to execute lease agreements with the Trinity Center, LLC, located at 1145 Market Street. Uh the leases will be effective upon approval of the respective resolutions and authorizing the director of property to execute any amendments, make certain modifications, and take certain actions that do not materially increase the obligations or liabilities to the city, and also do not materially decrease the benefits to the city and are necessary or advisable to effectuate the purposes of the leases or resolutions. Item number one is on behalf of the law library for the term of 15 years with one five-year option at a base rent of 599,000 per year, with three percent annual rent increases and a partial market reset in year 11. Item number two is on behalf of the health service system uh to lease a portion uh to lease of a portion of the real property uh for an initial term of 10 years with one five-year auction uh extension option to renew at an initial annual base rent of approximately 589,000 with three percent annual increases. Madam Chair. Thank you, Mr. Clerk, colleagues. We have heard this these two items uh last week and it was continued due to amendments that uh in including the dollar amount uh corrected uh on the actual legislation as well as um the term uh the years of and an option uh on these leases. So um I don't know if it requires extensive discussion today. I don't see any name on the roster. Would it be okay if I just go to public comments on these two items? I see nodding. Let's go to public comments on these items. Yes, madam chair. We now invite members of the public who have joined us today who wish to speak on these items one and two uh to line to speak now along those windows. Uh when you come forward to the lecture and all speakers will have two minutes to speak. Madam Chair, we have no speakers. Thank you.
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