San Francisco Budget and Finance Committee Meeting – June 5, 2024

The Budget and Finance Committee met on June 5, 2024, chaired by Supervisor Connie Chan, with Vice Chair Rafael Mandelman and Supervisor Myrna Melgar. The committee reviewed 20 agenda items, including funding for Ukrainian refugee housing, an LGBTQ history museum, infrastructure for the Sunnydale HOPE SF project, a security guard contract, and a fee waiver ordinance for neighborhood outdoor events. All items were forwarded to the full Board of Supervisors with positive recommendations, some with amendments. Public comment was limited to a few items.

Consent Calendar

• Item 1: Resolution approving the second amendment to the management and operation agreement between the SFMTA and Friends of the Cable Car Museum, extending the term five years (through June 30, 2029) and generating $237,733 in concession fee revenue. Passed unanimously.
• Items 2 & 3: Resolutions retroactively authorizing the Human Services Agency to accept and expend grants from the Federal Office of Refugee Resettlement: $1,472,856 for Housing Assistance for Ukrainians (serving up to 130 households) and $500,000 for Ukrainian Refugee Support Services (intensive case management and benefits linkages). Both passed unanimously. Supervisors Chan, Mandelman, and Melgar added as co-sponsors.
• Items 5 & 6: Resolutions retroactively authorizing the Department of Elections to accept California Secretary of State funds: $168,000 for election security (improving physical security at offices and warehouse) and $60,380.03 for polling place accessibility training. Passed unanimously.
• Item 9: Resolution authorizing a five-year contract with Good Guard Security Inc. for unarmed security guard services at Human Services Agency locations, not to exceed $33,760,000 (with two one-year renewal options). Funded 75% from general fund. Passed unanimously.
• Items 10 & 11: Resolutions approving COVID-19 lease extensions for two airport concession tenants: Farley’s Community Cafe (2 years 4 months) and Joe & the Juice (3.5 years), bringing additional minimum annual guarantee rent of $1,596,266. Passed unanimously.
• Item 13: Resolution retroactively authorizing a grant agreement between HSH and San Francisco Health Plan for the Housing and Homelessness Incentive Program, not to exceed $3,227,884 (through Dec 31, 2025). Funds support enhanced healthcare services at permanent supportive housing (pilot at Kelly Cullen Community) and accessibility improvements. Passed unanimously.
• Item 14: Resolution retroactively approving an agreement with the National Association of County and City Health Officials for the Reducing Overdose through Community Approaches Mentorship Program, anticipated revenue $98,999 (July 1, 2023–July 31, 2024). Includes non-binding arbitration clause. Passed unanimously.
• Items 15 & 16: Resolutions retroactively authorizing the Department of Public Health to accept grants: $2,597,683 from CA Department of Health Care Services for Path Justice-Involved Capacity Building (behavioral health linkages for individuals exiting prison/jail) and $1,124,506 from CDC for Capacity Building Assistance for High-Impact HIV Prevention (three-month extension). Passed unanimously.
• Item 18: Resolution approving a six-year extension of the landfill disposal agreement with Recology San Francisco (or until an additional 1.6 million tons of waste disposed), subject to Charter approval. Expected to provide 4.3 more years of disposal capacity. Passed unanimously.

Public Comments & Testimony

• Item 4 (LGBTQ History Museum): Several speakers urged approval, including Roberto Ordeñana (executive director, GLBT Historical Society), Annie Rivera (executive director, Galería de la Raza and board member, GLBT Historical Society), Ben Chavez Gilliam (board chair), Jamie Santos (secretary), Rachel Picorney (treasurer), and Yva Virus (longtime resident). They emphasized the importance of a permanent space for LGBTQ history, especially given rising hateful attacks, and the economic and cultural benefits for San Francisco.
• Item 12 (Meals on Wheels): Jennifer Steele, CEO of Meals on Wheels San Francisco, expressed gratitude for the partnership and commitment to providing high-quality nutrition services to navigation centers and shelters.
• Item 20 (Neighborhood Outdoor Events Fee Waiver): Angie Pettit (Sunset Mercantile) spoke in support, noting the importance of fee waivers for small businesses and community events, and requested consideration for larger community events.

Discussion Items

• Item 4 (LGBTQ History Museum): The Mayor’s Office of Housing and Community Development (Brian Chu) presented a resolution to apply for and accept a $5.5 million state grant from the California Natural Resources Agency to establish a permanent LGBTQ history museum in San Francisco. The city will administer the funds and issue an RFP for a community-based organization to operate the museum. Supervisor Mandelman praised the project, noting it has been a long-term goal. The GLBT Historical Society already operates a small museum on 18th Street. The resolution passed unanimously and will be forwarded to the full board.
• Item 7 (Sunnydale HOPE SF Infrastructure): Jason Liu (Policy Director, HOPE SF) and Ryan Vinzent (Senior Project Manager, MOHCD) presented a resolution authorizing a loan not to exceed $52,362,512 for Phase 3 infrastructure improvements at Sunnydale (15 acres). This phase includes preparation for two affordable housing buildings (184 units), two market-rate buildings, two parks, and public right-of-way. Construction is set to begin July 2024 and complete by Q1 2026. The Budget Legislative Analyst recommended approval and suggested a status update on state funding by end of 2024. The committee approved unanimously.
• Item 8 (Treasure Island Market Rate Housing): Director Bob Beck (Treasure Island Development Authority) presented a resolution approving a 10-year extension (with a three-year option) of the sublease and property management agreement with John Stewart Company for market-rate rental housing on Treasure Island. The number of units under management is decreasing (currently 324, expected to drop to 100–150 by 2030) as residents transition to new affordable housing, and former Navy housing will be demolished for redevelopment. The Budget Legislative Analyst noted limited interest from other proposers. Chair Chan emphasized the need to ensure fair treatment of remaining tenants. The resolution passed unanimously.
• Item 12 (Meals on Wheels Shelter Meals): Emily Cohen (Deputy Director, HSH) presented a resolution approving a five-year grant agreement with Meals on Wheels San Francisco (not to exceed $49,737,600) to provide two meals daily to over 2,300 guests across 15 shelters and navigation centers. The agreement consolidates meal services, with hot meals at three sites and frozen meals at others ($7.15–$8.00 per meal). The Budget Legislative Analyst noted that past meal satisfaction surveys showed only 30–50% positive responses; the new contract adds focus group requirements and performance measures on fruit/vegetable consumption and food insecurity. The committee approved unanimously.
• Item 19 (Annual Retail Food Special Event Permit): The Office of Small Business (Katie Tang) and Department of Public Health (Jen Calvert) presented an ordinance to create a new annual permit for food vendors participating in special events, reducing administrative burden. Due to missing public notice for fee advertisement, the item was continued to the call of the chair. Supervisor Melgar was added as co-sponsor. The item was continued unanimously.
• Item 20 (Neighborhood Outdoor Events Fee Waiver): The Office of Economic and Workforce Development (Alessandra Lozano) presented an ordinance to waive city fees (permits, inspections, staffing) for qualifying single-day neighborhood events (max 3 blocks, 8am–10pm, free and open to the public). The estimated annual cost to the general fund is $700,000, with $1.1 million in waived MTA fees. Supervisor Mandelman moved an amendment to limit fee waivers to 12 events per year per organizer, which was adopted. Supervisor Engardio then proposed an amendment to allow up to six blocks for night markets on specific Sunset Boulevard streets (Irving, Noriega, Taraval between 19th and Great Highway). The file was duplicated, the amendment adopted on the duplicate, and then the duplicate as amended was continued to the call of the chair for further fiscal analysis. The original amended ordinance was forwarded to the full board with a positive recommendation.

Key Outcomes

• All items on the regular agenda were approved unanimously (3-0) and forwarded to the full Board of Supervisors with positive recommendations, except for those continued.
• Item 17 (Purchase of real property at 624 Laguna Street) was continued to the call of the chair.
• Item 19 (Annual retail food special event permit) was continued to the call of the chair due to incomplete fee advertisement.
• Item 20 (Neighborhood outdoor events fee waiver) was amended twice: first to limit eligible events to 12 per year (Mandelman), then on a duplicated file to allow up to six blocks for specified Sunset night markets (Engardio). The original amended ordinance was forwarded to the full board; the duplicated amended ordinance was continued to the call of the chair.
• The committee scheduled a future meeting for continued items.