OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Budget and Finance Committee Meeting - December 4, 2024

Budget and Finance Committee — Wednesday, December 4, 2024
BodySan Francisco, California
SessionBudget and Finance Committee
DateWednesday, December 4, 2024
StatusFILED
Video Record
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Transcript — Verbatim
0:06

Good morning.

0:09

The meeting will come to order.

0:10

Welcome to the December 4th, 2024 meeting of the budget and finance committee.

0:14

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

0:17

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

0:22

Our clerk today is Brent Halipa, actually always.

0:25

Uh, and that I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting.

0:31

Mr.

0:32

Clerk, do you have any announcement?

0:33

Thank you, Madam Chair.

0:34

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

0:42

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

0:47

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

0:50

When your item of interest comes up, and I said walkie talkies, and public comment is called.

0:54

Please line up to speak on the west side of the chamber to your right, my left along those curtains.

0:59

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 re to be accurately recorded for the minutes.

1:10

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

1:14

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.

1:28

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

1:35

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

1:37

Postal Service to our office in City Hall at one.

1:40

Dr.

1:40

Carlton be good at place.

1:42

Room 244, San Francisco, California, 94102.

1:46

And just a couple of announcements regarding the room.

1:51

Feel free to take any video or photos, but please turn off your flash.

1:55

And uh we do have a rule about standing in the chamber.

1:59

We are opening up uh an overflow room uh right across the hall at uh at 263.

2:05

So please try to find some daylight in some pews, otherwise we do ask that you go down to the chamber and uh watch the proceedings from the overflow room from across the hall.

2:16

Uh and with that items acted upon today uh are expected to appear on the Board of Supervisors agenda of December 10th unless otherwise stated.

2:26

Madam Chair Thank you.

2:31

And um I think if you could don't find a seat, you should have a seat and find a seat.

2:39

Otherwise, you'll probably have to go across the hall as Mr.

2:41

Clerk has indicated.

2:42

And before we start today's agenda, um is our standard reminder that um uh several of today's item have uh budget and legislative analysts report and that our uh procedure for those items is to hear the department presentation first, followed by the budget and legislative analysts report, and then we proceed to questions and then public comment.

3:05

Now I think that everybody probably have noticed today.

3:08

We have 33 items on the agenda, which is unusual.

3:12

So, first of all, we're gonna be limiting public comments to one minute per person for today's item.

3:18

Uh, and then uh I also would like to thank all the city departments today uh that actually um coming before us with their presentation to really be mindful and uh keep their presentation precise.

3:32

Uh that I uh today though, um, we'll be getting uh and asking Mr.

3:38

Clerk to give you a five minutes mark.

3:41

That is not for you to end your presentation, but for you to know that five minutes, please start considering wrapping up your presentation.

3:49

So this way we can get through everybody, and that mainly is also make sure that uh we don't let the general public wait too long for public comments and just to get to the items.

3:59

Um with that too, though, understanding that some percent are today uh from city departments have different schedules.

4:08

Uh we understand you all have important work to do.

4:11

This is not it.

4:12

Uh so it will be possible that I'm calling items out of order uh on the agenda today.

4:19

And so with that, Mr.

4:20

Clerk, please call item number one.

4:22

Yes, item number one is a resolution making findings under the California Environmental Quality Act and confirming the San Francisco Planning Department's determination that no additional environmental impacts that were not previously identified would occur as a result of the proposed lease and approving and authorizing the execution of a 25-year lease agreement after approval of this resolution with four consecutive five-year extension options between the Treasure Island Development Authority and the BAFC team operator LLC for its training facilities on approximately eight and a half acres of land on Treasure Island with a minimum monthly base rent of one dollar from the commencement of the lease until the occupancy date and approximately 28,000 per month thereafter, and to authorize the Treasurer Island Director to enter into amendments or modifications to the lease and the parking lease terms that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the lease or this resolution.

5:22

Madam Chair.

5:23

Thank you, Mr.

5:24

Clark.

5:24

And today first we have uh Madison Tam, a to Supervisor Dorsey.

5:29

The floor is yours.

5:30

Good morning, Chair Cam.

5:33

Madison Tam here on behalf of Supervisor Matt Dorsey, who's actually doing other Treasure Island business right now.

5:39

Supervisor Dorsey is honored to represent Treasure Island and is thrilled to welcome Bay FC, the newest women's professional soccer franchise representing the Bay Area in the National Women's Soccer League.

5:49

This legislation will enable them to build a world-class training facility that will be the heart and home of the club, where their players and soccer staff will work and train every single day.

5:58

Beyond the players and the staff, this will be a home for youth sports and the Bay Area community.

Discussion Breakdown — Share of Meeting
Public Safety████████████12%
Public Comment███████████11%
Homelessness███████████11%
Public Works██████6%
Affordable Housing██████6%
Public Health█████5%
Procedural████4%
Public Housing████4%
Public Finance████4%
Summary of Proceedings

San Francisco Budget and Finance Committee Meeting - December 4, 2024

The Budget and Finance Committee, chaired by Supervisor Connie Chan, met on December 4, 2024, to consider 33 agenda items, including leases, financings, contracts, grants, fee adjustments, and policy resolutions. The meeting lasted from 10:15 AM to after 6 PM, with a recess for a press conference. The committee approved most items, often with amendments, and forwarded them to the full Board of Supervisors. Notable debates occurred over the Pier 45 Fisherman's Wharf development, the Potrero Yard modernization project, the Mid-Market/Tenderloin safety program, Marina fees, and the HomeRise contract.

Consent Calendar

  • Items 7-10: Retroactive grants for COVID-19 test kits ($1.4M), San Francisco General Hospital Foundation ($180,000), Ryan White HIV/AIDS grant ($15.7M), and Southeast Health Center renovation ($1M) – all approved unanimously.
  • Items 12-13: Waterfront Plaza lease termination and new lease (57-year term, $1M initial annual base rent) and transfer tax exemption for certain Port leases – approved.
  • Item 15: Airport Commission bond-related authorizations – approved.
  • Item 16: Recology contract for city refuse collection (7-year initial term, not to exceed $119M) – approved.
  • Item 17: Prevailing wage rates for various workers – approved.
  • Item 18: Sole source agreement with Low Income Investment Fund for Child Care Facilities Fund ($67.7M) – approved.
  • Items 22-23: Casa Adelante affordable housing at 1515 South Van Ness (168 units, $45.2M city loan, $107.6M bonds) – approved.
  • Item 24: Emergency preparedness grants (UASI, etc.) – approved.
  • Item 25: DA's auto fraud grant ($1.2M) – approved.
  • Item 26: Child Support Services lease at 101 New Montgomery (7-year, $580K annual base rent) – approved.
  • Item 27: Compass Family Services urgent accommodation vouchers ($9.6M increase) – approved.
  • Item 29: St. Vincent de Paul Multi-Service Center South shelter contract (amended to 12-month extension, $17.6M) – approved.
  • Item 33: Extension of Budget and Legislative Analyst services contract with Harvey M. Rose Associates (6-year extension) – approved.

Public Comments & Testimony

  • Bay FC Training Facility (Item 1): Multiple speakers, including Bay FC CEO Brady Stewart, youth soccer players, and community organizations, expressed strong support. No opposition.
  • Potrero Yard (Item 11): Rudy Gonzalez of Building Trades spoke in support, noting union commitments.
  • Fisherman's Wharf (Item 14): Heated debate. Commercial fishermen and crab boat owners opposed the term sheet, arguing it would displace the fishing industry. Labor unions (carpenters, plumbers, teamsters) and tourism representatives strongly supported the project. The developer committed to ongoing engagement.
  • Mid-Market/Tenderloin Safety Program (Item 19): Dozens of Urban Alchemy practitioners, residents, and business owners testified in support, emphasizing improved safety, overdose reversals, and employment for formerly incarcerated individuals. A few speakers opposed, citing gentrification or questioned effectiveness.
  • Marina Fees (Item 20): A resident opposed the increase, citing lack of community engagement and impact on small boaters. Another speaker supported the project but urged better maintenance.
  • Embarcadero Plaza Renovation (Item 21): Speakers supported the project but urged community input, including skateboarders.
  • 1174 Folsom Supportive Housing (Items 30-31): Many LGBTQ+ youth advocates, service providers, and residents spoke in favor, citing the need for housing for homeless youth, especially transgender and queer youth. A few speakers urged inclusive drug policies.

Discussion Items

  • Item 1: Bay FC Training Facility Lease – Approved. The resolution authorized a 25-year ground lease with Bay FC for a training facility on Treasure Island. The lease provides $330,000 initial annual base rent, escalating 2% per year, with no public financing for improvements. Revenue over 25 years estimated at $9.66M. The committee added co-sponsors and forwarded with positive recommendation (3-0).
  • Items 2-6: Treasure Island Financing – Approved. These items authorized $65M in certificates of participation (first tranche of $115M), an appropriation of $65.5M, and contributions from CFD and IRFD districts to fund Stage 2 infrastructure. The 10-year capital plan was amended. The BLA noted the net general fund cost of $5.2M annually after offsets. The committee forwarded with positive recommendation (3-0).
  • Item 11: Potrero Yard Modernization (DBFOM) – Approved with amendments. The resolution conditionally approved a design-build-finance-operate-maintain agreement for the bus yard, with not-to-exceed limits including $75M milestone payment, $200M payment by 2033, and $42.2M maximum annual availability payment. The BLA reported the project would be $121M more expensive than conventional financing. The committee amended the resolution to remove delegation of authority to the MTA board, adding endorsement of key terms and SBE/DBE plans. The amended resolution was forwarded with positive recommendation (3-0).
  • Item 14: Fisherman's Wharf Pier 45 Term Sheet – Approved with amendments. The resolution found the project fiscally feasible and endorsed a non-binding term sheet for a $548M redevelopment. The project includes renovation of Shed A, reconstruction of Shed C, and development of Seawall Lot 300/301. The committee added an amendment urging the Port to consider impacts on the commercial fishing industry and seek input from stakeholders. The amended resolution was forwarded with positive recommendation (3-0).
  • Item 19: Mid-Market/Tenderloin Safety Program – Approved without recommendation. The amendment increased the grant to Mid-Market Foundation by $3.76M (instead of $7.7M) to continue ambassador services through April 2025. The BLA raised concerns about administrative costs ($1.5M) and recommended direct contracting. The committee voted to forward without recommendation (3-0) after debate about effectiveness and budget constraints.
  • Item 20: Marina Fees Increase – Approved without recommendation. The ordinance raised fees for slips at the Marina Small Craft Harbor by 15.7% in FY25-26 (cumulative 31.4% over two years). The BLA noted the increases were needed to eliminate a $650K general fund subsidy. The committee forwarded without recommendation (3-0).
  • Item 21: Embarcadero Plaza and Sue Bierman Park Renovation – Approved. The resolution authorized a partnership with BXP and the Downtown Partnership for design and improvements, with $2.5M in private funds for design and up to $10M for construction. The committee forwarded with positive recommendation (3-0).
  • Item 28: HomeRise Transitional Housing Contract – Approved without recommendation. The amendment extended the contract by six months (through Dec 2025) and increased funding by $2.9M (reduced from $2.9M to $2.7M after BLA recommendation). The provider, HomeRise, is under a corrective action plan due to a controller's audit with 62 action items. The committee expressed concerns but agreed to a six-month extension with a hearing scheduled for April 2025 to review progress. The item was forwarded without recommendation (2-0, with Supervisor Melgar excused).
  • Items 30-31: 1174 Folsom Supportive Housing – Approved with amendments. The resolutions approved a ground lease (55-year term) and a property management agreement ($14.2M) for 42 units of permanent supportive housing for young adults (ages 18-24), with a focus on LGBTQ+ youth. The lease addendum clarified that drug-related violations could be grounds for tenancy termination. The items were forwarded with positive recommendation (2-0).

Key Outcomes

  • Item 1: Forwarded to full board with positive recommendation (3-0).
  • Items 2-6: Forwarded to full board with positive recommendation (3-0).
  • Items 7-10: Forwarded to full board with positive recommendation (3-0).
  • Item 11: Forwarded to full board with positive recommendation as amended (3-0).
  • Items 12-13: Forwarded to full board with positive recommendation (3-0).
  • Item 14: Forwarded to full board with positive recommendation as amended (3-0).
  • Item 15: Forwarded to full board with positive recommendation (3-0).
  • Item 16: Forwarded to full board with positive recommendation (3-0).
  • Item 17: Forwarded to full board with positive recommendation (2-0, Vice Chair Mandelman excused).
  • Item 18: Forwarded to full board with positive recommendation (2-0).
  • Item 19: Forwarded to full board without recommendation as amended (3-0).
  • Item 20: Forwarded to full board without recommendation (3-0).
  • Item 21: Forwarded to full board with positive recommendation (3-0).
  • Items 22-23: Forwarded to full board with positive recommendation (3-0).
  • Item 24: Forwarded to full board with positive recommendation (3-0).
  • Item 25: Forwarded to full board with positive recommendation (3-0).
  • Item 26: Forwarded to full board with positive recommendation (2-0).
  • Item 27: Forwarded to full board with positive recommendation (2-0).
  • Item 28: Forwarded to full board without recommendation as amended (2-0).
  • Item 29: Forwarded to full board with positive recommendation as amended (2-0).
  • Items 30-31: Forwarded to full board with positive recommendation as amended (2-0).
  • Item 32: Continued to the call of the chair (2-0).
  • Item 33: Forwarded to full board with positive recommendation (2-0).

The committee also excused Supervisor Melgar for the latter part of the meeting. The meeting adjourned after 7 PM.

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the December 4th, 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 shortly by Supervisor Mirna Malgar. Our clerk today is Brent Halipa, actually always. Uh, and that 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, walkie talkies, and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file, they 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 I said walkie talkies, 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 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 re to be accurately recorded for the minutes. Alternatively, you may submit public comment and 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. You may also send your written comments via U.S. Postal Service to our office in City Hall at one. Dr. Carlton be good at place. Room 244, San Francisco, California, 94102. And just a couple of announcements regarding the room. Feel free to take any video or photos, but please turn off your flash. And uh we do have a rule about standing in the chamber. We are opening up uh an overflow room uh right across the hall at uh at 263. So please try to find some daylight in some pews, otherwise we do ask that you go down to the chamber and uh watch the proceedings from the overflow room from across the hall. Uh and with that items acted upon today uh are expected to appear on the Board of Supervisors agenda of December 10th unless otherwise stated. Madam Chair Thank you. And um I think if you could don't find a seat, you should have a seat and find a seat. Otherwise, you'll probably have to go across the hall as Mr. Clerk has indicated. And before we start today's agenda, um is our standard reminder that um uh several of today's item have uh budget and legislative analysts report and that our uh procedure for those items is to hear the department presentation first, followed by the budget and legislative analysts report, and then we proceed to questions and then public comment. Now I think that everybody probably have noticed today. We have 33 items on the agenda, which is unusual. So, first of all, we're gonna be limiting public comments to one minute per person for today's item. Uh, and then uh I also would like to thank all the city departments today uh that actually um coming before us with their presentation to really be mindful and uh keep their presentation precise. Uh that I uh today though, um, we'll be getting uh and asking Mr. Clerk to give you a five minutes mark. That is not for you to end your presentation, but for you to know that five minutes, please start considering wrapping up your presentation. So this way we can get through everybody, and that mainly is also make sure that uh we don't let the general public wait too long for public comments and just to get to the items. Um with that too, though, understanding that some percent are today uh from city departments have different schedules. Uh we understand you all have important work to do. This is not it. Uh so it will be possible that I'm calling items out of order uh on the agenda today. And so with that, Mr. Clerk, please call item number one. Yes, item number one is a resolution making findings under the California Environmental Quality Act and confirming the San Francisco Planning Department's determination that no additional environmental impacts that were not previously identified would occur as a result of the proposed lease and approving and authorizing the execution of a 25-year lease agreement after approval of this resolution with four consecutive five-year extension options between the Treasure Island Development Authority and the BAFC team operator LLC for its training facilities on approximately eight and a half acres of land on Treasure Island with a minimum monthly base rent of one dollar from the commencement of the lease until the occupancy date and approximately 28,000 per month thereafter, and to authorize the Treasurer Island Director to enter into amendments or modifications to the lease and the parking lease terms that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the lease or this resolution.

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