San Francisco Budget and Finance Committee Meeting – September 25, 2024
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San Francisco Budget and Finance Committee Meeting – September 25, 2024
The Budget and Finance Committee of the San Francisco Board of Supervisors met on September 25, 2024, to consider ten items, including contract amendments, grant acceptances, ground leases, and a hearing on mayoral reserve funds. All items were approved unanimously by the two present committee members (Chair Connie Chan and Vice Chair Rafael Mandelman) and forwarded to the full Board of Supervisors. Supervisor Melgar was excused.
Item 1: Pit Stop Workforce Development Grant Amendment
- The committee approved an amendment to the contract with Hunters Point Family to provide workforce development and pit stop monitoring services. The amendment extends the term by nine months to June 30, 2025, and increases the contract amount by approximately $6.9 million to a new total not to exceed $16.2 million. In fiscal year 2024, the program recorded over 560,000 uses, 13,000 dog waste bags issued, 5,400 needles safely disposed, and 2,700 trash bags issued. The workforce development component had 206 participants, with 70% graduating, 40% promoted within the organization, and 20% obtaining employment with the city. The Budget and Legislative Analyst (BLA) noted that the grant was underspent by 17% last year due to pit stop closures from poor repair and supply delays. The resolution was approved and forwarded to the full board.
Item 2: In-Kind Gift from Deloitte Tax LLP – Climate Tax Advisory Services
- The committee authorized the Department of the Environment to accept an in-kind gift of pro bono tax services from Deloitte Tax LLP, valued at an estimated $112,089, to help the city identify federal tax credits for qualifying sustainability activities under the Inflation Reduction Act’s direct pay program. The engagement runs through May 31, 2025. The resolution was approved and forwarded.
Item 3: California Jobs First Catalyst Grant – Retroactive Acceptance
- The committee retroactively authorized the Office of Economic and Workforce Development to accept and expend a $14 million grant from the California Employment Development Department for the California Jobs First Catalyst program, covering May 1, 2024 through September 30, 2026. The grant is part of a $600 million state initiative focused on racial equity, carbon neutrality, and high-road training partnerships. The legislation also exempts subgrants from certain administrative code requirements to maintain regionalism and community-led planning. The resolution was approved and forwarded.
Items 4-6: HIV/AIDS Research Grants – Retroactive Acceptance
- The committee approved three retroactive grants for the Department of Public Health: (4) $173,063 from the National Institutes of Health through Florida State University for the Adolescent Medicine Trials Network for HIV/AIDS Interventions (December 2023 – November 2024); (5) $177,860 from the Department of Health and Human Services for MyPrEP Plus, a PrEP support tool for transgender women (September 2023 – September 2025); and (6) $160,074 from the National Institutes of Health for the Bridge Clinic, optimizing injectable PrEP delivery for transgender and non-binary people (April 2023 – January 2025). All three were approved and forwarded.
Item 7: Ground Lease for 42 Otis Street – Permanent Supportive Housing for Young Adults
- The committee approved a ground lease with Five Keys Schools and Programs for 42 Otis Street, a 24-unit building constructed in 2021, to operate as permanent supportive housing for young adults (ages 18-24) experiencing homelessness. The lease has an initial term of five years with 10 automatic extensions of five years each (maximum 55 years) at $1 annual rent. The site serves young adults, 68% of whom are unsheltered according to the most recent point-in-time count. The annual operating cost is estimated at $1.3 million, funded by HUD rental subsidies and local Prop C funds. The city received an $8 million Home Key award for the project. Public comment was overwhelmingly supportive. The resolution was approved and forwarded.
Item 8: Ground Lease for 725 Davis Street – Commercial Space
- The committee approved a 70-year ground lease (with a 24-year extension option) at $1 annual rent for a 1,240-square-foot commercial parcel at 725 Davis Street, to be developed into community-serving commercial space. The lease is with Broadway Davis Retail Associates LLC (a joint venture of John Stewart Company and Bridge Housing). The project sponsor will build out the space to a warm shell by early 2025 and then market it to small businesses, with a preference for a restaurant offering discounted food to nearby affordable housing residents. The resolution was approved and forwarded.
Item 9: Acquisition and Ground Lease for 3300 Mission Street – Affordable Housing
- The committee approved the city’s acquisition of three parcels (3300, 3306, 3308 Mission Street) for $4.151 million, a ground lease back to the developer for 75 years (plus a 24-year extension) at $1 annual rent, and a loan not to exceed $12.44 million for construction of a 35-unit 100% affordable housing development (all studios). The development, financed in part with 9% low-income housing tax credits, will serve households at 30-80% of area median income. The city also provided a $1 million limited payment guarantee to support the emerging developer team (Burnle Heights Neighborhood Center, Tabernacle Community Development Corporation, and Mitchellville Real Estate Group). The BLA noted that the project does not meet the NOFA goal of 25% homeless set-aside (no homeless units) and has a higher city subsidy per unit ($474,000 vs. $350,000 target), but supports smaller developers. A technical amendment was made to correct language in the resolution. The amended resolution was approved and forwarded.
Item 10: Hearing on Grant Funds Placed on Mayoral Reserve
- The committee held a hearing on the mayor’s decision to place funding for community-based organizations (CBOs) on reserve, affecting approximately $50 million in adback funds restored by the Board of Supervisors during the budget process. Representatives from the People’s Budget Coalition testified that the delay is causing layoffs, program closures, and loss of trust, and urged immediate release of funds. They highlighted specific programs at risk, including rental assistance, workforce development, youth services, arts funding, and the sugary drinks tax-funded programs. Mayor’s Budget Director Sophia Kittler explained that the reserve is intended to protect against future deficits (projected $800 million deficit in FY26-27) and to prioritize direct services and mid-contract programs. She provided a list of funds already released, including $250,000 from the sugary drink tax, $575,000 for arts grants, $2.7 million for DCYF violence intervention, and full release of neighborhood grocery access and code enforcement grants. She stated that remaining funds would be reviewed in December after revenue updates. Chair Chan challenged the mayor’s authority to withhold funds from a balanced budget, asserting that the decision is discretionary and reflects a choice to prioritize other initiatives over essential services for vulnerable populations. The hearing was filed.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the September 25th, 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. Our clerk is Brent Halipa. I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. Mr. Clark, do you have any announcements? Thank you, Madam Chair. Just a friendly reminder to those in attendance. So please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file, that 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 like to speak on the west side of the chamber to your right, my left along those curtains. And while not uh required to provide public comment, we do invite you to fill out a comment card and leave them on the trade body television to your left by the doors. If you wish to be accurately recorded for the minutes, alternatively, you may submit public comment in writing in either of the following ways. You can email them to myself, the budget and finance committee clerk at B R E N T dot J A L I P A at SFGO 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. You may also send your written comments via U.S. Postal Service to our office in City Hall at 1 Dr. Carlton Biglet 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 October 1st, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And uh today, uh the I before we call item number one. We typically will go to the department presentation and those that actually first and then those that have budget and legislative analyst report would then follow with that report, and then we will have comments from the committee and or question from the committee. Then we will go to public comments. And so with that, Mr. Clerk, please call item number one. Yes, item number one is a resolution approving amendment number six to a contract between the city uh acting by and through the Department of Public Works and Hunters Point family to create employment opportunities, job training and workforce development programs and ensure the availability of safe and clean public restrooms for the Pit Stop Workforce Development Grant Program, extending the term by nine months for a total term of July 1st, 2023 through June 30th, 2025, increasing the contract amount by approximately 7 million for a new total not to exceed amount of approximately 16.2 million and to authorize the director of public works to make necessary non-material changes to the amendment before its execution. Madam Chair. Thank you, Mr. Clerk. And before we uh go call on Department of Public Works, I would like to first excuse uh Supervisor Malgar on from the committee, and I think we can do that without objection. She is excused. And with that, and we have our Department of Public Works here. Uh good morning, Supervisors Bruce Robertson, Deputy Director of Financial Management and Administration with Public Works. I'll make a brief presentation and then answer any questions you may have. So as stated, we're seeking approval of the Sixth Amendment for the Pitstop program, approximately $6.9 million. And per the city charter, this is required for any non-construction contract that exceeds 10 million dollars. The agreement is with Hunter's Point Family to provide pit stop monitoring services. So a quick overview as uh for the of the Pitstar program, which I'm sure you're quite familiar with at this point. The program started in 2014. We deploy on-site attendance to provide clean and safe toilets throughout the city, ranging from 24-7 to reduced hours of ranging from five to eight hours, five days a week, seven days a week, ranging from eight to twelve hours. The responsibility of Honor's Point families to keep the areas not only inside the toilet and restroom facility clean, but is the surrounding areas as well. They also hand out um safe disposal of needles and dog refuse bags as well. As you can see, we currently have 30 locations staffed in 13 neighborhoods. Those are a mix of JC DeCoe standing toilets as well as portable locations.
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