OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Budget and Finance Committee Meeting - November 13, 2024

Budget and Finance Committee — Wednesday, November 13, 2024
BodySan Francisco, California
SessionBudget and Finance Committee
DateWednesday, November 13, 2024
StatusFILED
Video Record
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Transcript — Verbatim
0:06

Good morning.

0:07

The meeting will come to order.

0:08

Welcome to the November 13, 2024 meeting of the budget and finance committee.

0:13

I'm Supervisor Connie Chan.

0:14

I'm joined by Supervisor Mirna Malgar, shortly by Vice Chair Rafael Mendelman.

0:20

Oh, actually, that's my bad.

0:23

No.

0:23

Um, our clerk is Brian Halifa, and I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting.

0:33

Mr.

0:33

Clerk, do you have any announcement?

0:35

Thank you, Madam Chair.

0:36

Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings.

0:44

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

0:49

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

0:52

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 along those curtains.

1:00

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 if you wish to be accurately recorded for the minutes.

1:11

Alternatively, you may submit public comment in writing in either of the following ways.

1:15

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.

1:26

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

1:32

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

1:35

Postal Service to our office in City Hall at one Dr.

1:38

Carleton be good look.

1:40

Room 244, San Francisco, California, 94102.

1:44

And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors agenda of November 19th unless otherwise stated.

1:52

Madam Chair.

1:54

Thank you.

1:54

And actually, that is what I need to do.

1:57

Is that I uh before we call the item, I would like to make the motion to excuse Vice Chair Mandelman a roll call, please.

2:07

And on that motion, that Vice Chairman B uh Mandelman be excused uh from attending today's meeting.

2:13

Member Melgar.

2:14

Melgar, I chair Chan.

2:16

Aye.

2:17

Chan, I we have two eyes with Vice Chair Mandelman excused.

2:19

Thank you.

2:20

And the motion passes.

2:21

And with that, Mr.

2:22

Clerk, um please call item number one.

2:26

Yes, item number one is an ordinance amending the administrative code to establish the worker justice fund to provide financial restitution and timely payment to workers who have not received payment from their employers for violations of city worker protection laws to authorize the fund to receive monies paid to the city as penalties and liquidated damages by employers, as well as additional monies appropriated in the future, and to require the Office of Labor Standards Enforcement to administer the fund and make payments to workers based on specified criteria.

3:00

Madam Chair.

3:01

Thank you.

3:02

And uh Supervisor Ronan is the uh sponsor of this legislation, and the floor is yours.

3:08

Thank you so much, uh Chair Chan.

3:10

Good morning, colleagues.

3:11

Thank you for having me here today.

3:13

I am going to uh describe the overall goals of the legislation and then discuss substantive amendments that I'll be introducing today, which will require uh the item to sit for a week.

3:24

The legislation before you will create a worker justice fund in San Francisco, one of the first of its kind in the country.

3:32

This fund will provide relief to low-wage workers who have been denied their hard-earned wages.

3:38

The fund has been necessary for years now, but in light of the upcoming Trump administration and their vowed impending attacks on immigrants, so many of whom are low-wage workers.

3:50

The fund is more necessary than it's ever been before.

3:53

San Francisco has led the nation in protections for working families, including paid parental leave, minimum wage, and protections against wage theft.

4:02

Still, some workers are left without recourse when a business violates wage laws and then closes, or the employer runs out of money or no has no assets to pay what they owe.

4:14

Um that can be found uh by uh by OLSE or attorneys trying to uh um uh uh enforce judgments.

4:26

Workers are left empty-handed and can often conclude that seeking enforcement and justice is futile.

4:32

During the next four years, getting those workers to come forward will be even harder.

4:36

Under this new ordinance, low-wage workers can finally have some recourse.

4:41

The worker justice fund will be administered by the San Francisco Office of Labor Standards Enforcement, prioritizing restitution to workers who have received a court judgment that the employer violated the city's minimum wage laws.

5:06

Today I'm introducing amendments to this legislation that will address many concerns shared by OLSE and raised in the budget and legislative analysts report.

5:17

First, as to the concern that OLSE will have an overwhelming amount of administrative work to operate this fund.

5:24

I am narrowing the eligibility criteria by eliminating violations of paid parental leave, prevailing wage, and health care security ordinance violations, with one exception, to focus on minimum wage violations.

5:37

You can find these amendments on page six, subsection D to B 1 through 4.

Discussion Breakdown — Share of Meeting
Labor Relations█████████████████████████████29%
Public Finance████████████12%
Public Comment███████████11%
Worker Justice Fund█████████9%
Procurement█████████9%
Public Health██████6%
Transportation█████5%
Public Utilities█████5%
Affordable Housing███3%
Summary of Proceedings

San Francisco Budget and Finance Committee Meeting - November 13, 2024

The Budget and Finance Committee met on November 13, 2024, chaired by Supervisor Connie Chan, joined by Supervisor Myrna Melgar (Vice Chair Rafael Mandelman excused). The committee considered 18 items, including a new Worker Justice Fund, several contracts, grants, and bond issuances. Public comments were heard on the Worker Justice Fund, with many workers and advocates expressing support. Most items were approved and forwarded to the full Board of Supervisors.

Public Comments & Testimony

  • Worker Justice Fund (Item 1): Over 20 speakers testified in support, including workers from the Chinese Progressive Association, Legal Aid at Work, Mujeres Unidas Activas, and others. They shared personal stories of wage theft, unpaid wages, and the need for a safety net. Many emphasized that workers often cannot recover wages when employers go bankrupt or disappear. The fund was described as a 'fund of last resort' to ensure workers receive their hard-earned pay. No public comments were made on other items.

Discussion Items

  • Worker Justice Fund (Item 1): Supervisor Hillary Ronen presented an ordinance to create a Worker Justice Fund, administered by the Office of Labor Standards Enforcement (OLSE), to provide restitution to low-wage workers who have not been paid due to employer violations. Amendments were introduced to narrow eligibility to minimum wage violations (with one exception for a Burger King case), to redirect only 50% (instead of 100%) of OLSE penalty revenues to the fund, and to allow OLSE up to three years to claim unclaimed funds. The Budget and Legislative Analyst (BLA) estimated a general fund impact of up to $1.5 million annually (including $700,000 in diverted revenue and up to $800,000 for four new positions). The fund is projected to pay out $100,000–$300,000 per year, covering about 248 workers in the first year. The item was continued to the November 20 committee meeting.
  • Airport Professional Services Agreement (Item 2): Resolution approving a modification to extend a contract with Professional Business Providers, Inc. for operation and maintenance of passenger boarding bridges and baggage handling systems. The term was extended by two years (through July 2027) and the contract amount increased by $13.3 million to a total not-to-exceed $26.5 million. The BLA recommended approval. The item was forwarded to the full board.
  • Hitachi Rail Train Control System (Item 3): Resolution approving a contract with Hitachi Rail GTS USA Inc. for design, procurement, system implementation, and support for a communications-based train control system (replacing a 25-year-old system). The contract includes a 9-year design/procurement phase ($212 million), 10 years of support ($114 million), and two 5-year options ($237.7 million), totaling up to 29 years. The BLA recommended striking a clause allowing unlimited $2 million contract amendments and instead capping amendments at 5% of total contract value ($28.2 million). The committee adopted that amendment and forwarded the resolution to the full board.
  • Plumbing Supplies Contract (Item 4): Resolution approving a seven-year agreement with Underground Republic Waterworks for plumbing supplies, not-to-exceed $50.4 million. The BLA recommended approval. The item was forwarded.
  • Engineering Services for Transmission Pipelines (Item 5): Resolution approving a $10 million increase to a contract with Kennedy/Jenks Consultants and AGS, Inc. for engineering services on five transmission pipeline projects, raising the total to $17 million. The BLA recommended approval. The item was forwarded.
  • Real Property Acquisition from Kaiser (Item 6): Resolution approving the purchase of easements from Kaiser Foundation Hospitals for a water pipeline and electrical utilities in South San Francisco for $266,100. The BLA recommended approval. The item was forwarded.
  • HIV Prevention Grants (Items 7 & 8): Two resolutions retroactively authorizing acceptance and application of CDC grants for HIV prevention and surveillance. The total grant amount is $5.7 million (acceptance) and $5.9 million (application). The BLA recommended approval. The items were forwarded.
  • RAMS Vocational Rehabilitation Contract (Item 9): Resolution approving a 3.5-year extension and $22 million increase to a contract with Richmond Area Multi Services, Inc. for vocational rehabilitation programs, raising the total to $38.1 million. The BLA noted improved performance and recommended approval. The item was forwarded.
  • SF AIDS Foundation Contract (Item 10): Resolution approving a 3.5-year extension and $10 million increase to a contract with the San Francisco AIDS Foundation for mental health and substance abuse treatment services (Stonewall Project), raising the total to $19.6 million. The BLA recommended approval. The item was forwarded.
  • Bond Items (Items 11–17): These included an appropriation of $6.2 million in interest earnings from earthquake safety bonds for the emergency firefighting water system (Item 11), and approvals for the sale of $571 million in general obligation bonds across four programs (Seawall, Earthquake Safety, Affordable Housing 2019 and 2024). The bond proceeds will fund projects including the Embarcadero Seawall, fire and police facilities, emergency firefighting water system, and affordable housing. The BLA recommended approval. The committee approved an amendment to correct the title of Item 11 to 'emergency fire fighting water system.' Items 12 and 13 (Seawall-related) were moved to the December 3 board meeting to allow the Port Commission to act first. The remaining items were forwarded to the November 19 board meeting.
  • DA Auto Insurance Fraud Grant (Item 18): Resolution retroactively authorizing acceptance of a $318,857 grant from the California Department of Insurance for the Automobile Insurance Fraud Program. The committee encouraged the DA's office to submit future grants in a more timely manner. The item was forwarded.

Key Outcomes

  • Item 1 (Worker Justice Fund): Continued to the November 20, 2024 committee meeting as amended.
  • Item 2 (Airport Contract): Approved and forwarded to the full board with a positive recommendation.
  • Item 3 (Hitachi Rail Contract): Amended to limit delegated authority to 5% of contract value, then approved and forwarded.
  • Item 4 (Plumbing Supplies): Approved and forwarded.
  • Item 5 (PUC Engineering): Approved and forwarded.
  • Item 6 (Kaiser Easement): Approved and forwarded.
  • Items 7 & 8 (HIV Grants): Approved and forwarded.
  • Item 9 (RAMS Contract): Approved and forwarded.
  • Item 10 (AIDS Foundation Contract): Approved and forwarded.
  • Item 11 (Interest Earnings): Amended (title correction) and forwarded to the full board.
  • Items 12 & 13 (Seawall Bonds): Moved to the December 3, 2024 board meeting.
  • Items 14–17 (Other Bonds): Approved and forwarded to the November 19, 2024 board meeting.
  • Item 18 (DA Grant): Approved and forwarded.

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the November 13, 2024 meeting of the budget and finance committee. I'm Supervisor Connie Chan. I'm joined by Supervisor Mirna Malgar, shortly by Vice Chair Rafael Mendelman. Oh, actually, that's my bad. No. Um, our clerk is Brian Halifa, and I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder to those in attendance to 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, this 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 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 if you wish to be accurately recorded for the minutes. 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 to our office in City Hall at one Dr. Carleton be good look. 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 November 19th unless otherwise stated. Madam Chair. Thank you. And actually, that is what I need to do. Is that I uh before we call the item, I would like to make the motion to excuse Vice Chair Mandelman a roll call, please. And on that motion, that Vice Chairman B uh Mandelman be excused uh from attending today's meeting. Member Melgar. Melgar, I chair Chan. Aye. Chan, I we have two eyes with Vice Chair Mandelman excused. Thank you. And the motion passes. And with that, Mr. Clerk, um please call item number one. Yes, item number one is an ordinance amending the administrative code to establish the worker justice fund to provide financial restitution and timely payment to workers who have not received payment from their employers for violations of city worker protection laws to authorize the fund to receive monies paid to the city as penalties and liquidated damages by employers, as well as additional monies appropriated in the future, and to require the Office of Labor Standards Enforcement to administer the fund and make payments to workers based on specified criteria. Madam Chair. Thank you. And uh Supervisor Ronan is the uh sponsor of this legislation, and the floor is yours. Thank you so much, uh Chair Chan. Good morning, colleagues. Thank you for having me here today. I am going to uh describe the overall goals of the legislation and then discuss substantive amendments that I'll be introducing today, which will require uh the item to sit for a week. The legislation before you will create a worker justice fund in San Francisco, one of the first of its kind in the country. This fund will provide relief to low-wage workers who have been denied their hard-earned wages. The fund has been necessary for years now, but in light of the upcoming Trump administration and their vowed impending attacks on immigrants, so many of whom are low-wage workers. The fund is more necessary than it's ever been before. San Francisco has led the nation in protections for working families, including paid parental leave, minimum wage, and protections against wage theft.

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