San Francisco Budget and Finance Committee Meeting - January 29, 2025
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San Francisco Budget and Finance Committee Meeting - January 29, 2025
The Budget and Finance Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and Supervisor Joan Guardio, met on January 29, 2025, to consider 15 agenda items. The committee forwarded most items to the full Board of Supervisors with recommendations, including a major ordinance to accelerate the city's response to homelessness, drug overdoses, and mental health crises. The meeting included presentations from department heads, budget analyst reports, and public testimony.
Item 1: Clean Slate Grant – Retroactive Acceptance of $250,000 from Crankstart Foundation
- Discussion: Public Defender Minod Rajou and Clean Slate Unit Manager Kelly Pretzer presented the grant to fund the managing attorney position. The grant period is July 1, 2024 – June 30, 2025, retroactively approved. Since 2017, Crankstart has provided approximately $1.9 million. The Clean Slate Unit has expunged 60,000 records since 1999, and a 2019 Harvard study found a 25% wage gain within two years of expungement.
- Public Comment: None.
- Outcome: Motion to forward to full board with positive recommendation passed unanimously (3-0).
Items 2: Episcopal Community Services Rapid Rehousing Amendment – Not to Exceed $21,524,980
- Discussion: Deputy Director Emily Cohen (HSH) presented the third amendment to extend the grant term through June 2027 and increase funding by $11.5 million to serve 305 adults (up from 230). The program provides 12-24 month rental subsidies and case management. The budget analyst noted that the contractor had missed the 75-day housing placement target in the past two fiscal years (over 100 days), but recent improvements have brought it to 74.4 days. Chair Chan expressed concern about underspending and placement delays. Vice Chair Dorsey asked about use of "Our City, Our Home" funds, confirming this falls under the temporary housing carve-out (up to 12% of 50% housing allocation).
- Public Comment: Chris Calendrillo (ECS Chief Program Officer) thanked the committee. Two other speakers: one questioned the number of clients housed, and another praised the partnership with faith-based organizations.
- Outcome: Motion to forward to full board with positive recommendation passed (3-0).
Items 3 & 4: Port of San Francisco Certificates of Participation Refunding – Up to $25,000,000
- Presentation: The Controller's Office presented two ordinances to refund outstanding 2013B and 2013C COPs for the Port of San Francisco, generating projected savings. Current good faith estimate shows 2.9% NPV savings, but current market rates project over 5%. The city will only issue if savings exceed 3% threshold. The lease asset is Pier 27 cruise terminal.
- Public Comment: None.
- Outcome: Motion to forward both ordinances to full board with positive recommendation passed (3-0).
Item 5: Coro Northern California Fellowship – In-Kind Gift Valued at $345,000
- Discussion: MOHCD Director of Policy Sheila Nicolopoulos presented the two-year fellowship to research SRO housing policy. The fellow starts February 3, 2025. Chair Chan noted the minimal retroactivity (one day).
- Public Comment: None.
- Outcome: Motion to forward to full board with positive recommendation passed (3-0).
Item 6: Portsmouth Square Garage Free Parking, Transit Fares, and Ambassadors – $250,000 from General Reserve
- Discussion: SFMTA's Joel Ramos presented the request for free two-hour parking at Portsmouth Square Garage (Jan 28 – Feb 28, 2025), free Muni on Feb 15-16, and community ambassadors. The total cost estimated at $559,000, but the ordinance only appropriated $250,000. Budget analyst noted the General Reserve must be replenished. Chair Chan proposed an amendment to increase the appropriation by $276,000 (to cover parking and transit fares only, striking ambassador language), and to continue the item to the next meeting. The amendment was made and the item continued to February 5, 2025.
- Public Comment: Several speakers supported free parking and ambassadors, one questioned ambassador staffing.
- Outcome: Motion to amend and continue passed (3-0).
Item 7: Commercial Vacancy Tax Exemption for Construction Zones
- Discussion: Chair Chan sponsored the ordinance to exempt commercial spaces in districts with city-led public infrastructure projects lasting over 180 days, retroactive to 2022 for Taraval Street districts. Treasurer's Office Amanda Freed explained the automatic exemption process. Supervisor Guardio co-sponsored.
- Public Comment: One speaker expressed frustration with vacancies and criticized city policies.
- Outcome: Motion to forward to full board with positive recommendation passed (3-0).
Item 8: Core Initiatives to Address Homelessness, Drug Overdose, and Mental Health – Major Ordinance
- Discussion: This was the most debated item. Mayor Lurie's policy advisor Ali Bondi and policy director Kunal Modi presented the ordinance, which creates a "shot clock" for board approval of contracts (45 days), waives competitive bidding, delegates authority, and provides a behested payment waiver for six months. The ordinance defines five core initiatives: 24/7 drop-off stabilization center, interim shelter beds, treatment beds, hiring public safety/behavioral health professionals, and tapping philanthropic funding. The administration emphasized urgency, citing 4,300 unsheltered residents and a fentanyl crisis. The budget analyst (Nick Bernard) warned of risks: increased costs, potential for waste/fraud/abuse, and loss of board oversight. He noted that even during COVID, FEMA required competitive bidding. The analyst called it a "policy matter" for the board.
- Amendments: The mayor's office offered ~15 amendments, including: reducing the contract threshold from $50M to $25M, capping non-governmental donations at $10M, adding a one-year sunset (Jan 8, 2026), requiring quarterly reports, and clarifying that state/federal procurement rules still apply. The committee adopted all amendments.
- Public Comment: Extensive testimony (over 20 speakers). Supporters included labor unions (Laborers Local 261), recovery advocates, small business owners, and residents who cited the severity of the crisis. Opponents included the LBE community (concerned about waiving local business enterprise requirements), harm reduction advocates (who wanted clearer goals and metrics), and some residents who questioned the approach. The mayor's office clarified that LBE requirements were not waived.
- Outcome: Motion to amend adopted (3-0). Motion to forward amended ordinance to full board with positive recommendation adopted (3-0).
Items 9-12: Department of Children, Youth and Families – Four Grant Agreements (Total ~$48.7M)
- Discussion: Acting Director Sharice Dorsey Smith presented the five-year contracts with Community Youth Center of San Francisco ($13.7M + $11.7M), Instituto Familiar de la Raza ($12.9M), and Richmond District Neighborhood Center ($10.4M). She described new performance measures focusing on academic outcomes and violence prevention. An amendment corrected two typos in item 9 (youth numbers reduced from 60 to 40 and 640 to 230).
- Public Comment: None.
- Outcome: Motion to amend item 9 and forward all four resolutions to full board with positive recommendation passed (3-0).
Item 13: HSA/EDD Lease at 745 Franklin Street – $105,090/year
- Discussion: Director of Real Estate Andrico Penick presented the five-year lease for the Jobs Now program. A typo corrects the end date from 2030 to 2029.
- Public Comment: None.
- Outcome: Motion to amend and forward to full board passed (3-0).
Item 14: DPH Mental Health Clinic Lease at 729 Filbert Street – $437,146.50/year
- Discussion: The lease amendment reduces rent from $55.30 to $39.50 per square foot. Lease term retroactive to Feb 1, 2024 through Jan 31, 2029. Budget analyst requested more information from DPH about operations, which Chair Chan urged to provide.
- Public Comment: None.
- Outcome: Motion to forward to full board with positive recommendation passed (3-0).
Item 15: SFPD License with U.S. Coast Guard on Yerba Buena Island – $0 Rent
- Discussion: The license allows SFPD to use a 2,700 sq ft building as a substation, replacing the Treasure Island substation. The city pays operating expenses; tenant improvements estimated $700K-$2.5M. Vice Chair Dorsey supported the no-cost lease. Chair Chan raised concerns about capital planning for police stations.
- Public Comment: None.
- Outcome: Motion to forward to full board with positive recommendation passed (3-0).
Key Outcomes
- The committee forwarded all items except Item 6 (continued) to the full Board of Supervisors with positive recommendations.
- Item 6 was amended to increase funding for parking and transit fares only and continued to the February 5, 2025 meeting.
- Item 8 was significantly amended with 15 amendments, including a reduced contract threshold, donation cap, and sunset date.
- The committee emphasized oversight and transparency, particularly for the core initiatives ordinance.
Meeting Transcript
Good morning. Uh the meeting will come to order. Welcome to the January 29, 2025 meeting of the budget and finance committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair, Supervisor Matt Dorsey and Supervisor Joan Guardio. Our clerk is Brent Haliba. I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcements? Thank you, Madam Chair. Just a friendly reminder to those in attendance. To please make sure to sound 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? 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 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 tray 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 Hat S F G-O-V dot or 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 and city hall at one, Dr. Carlton be good at the place, 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 February 4th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And before we call item number one, I would like to remind the public that we have budget and legislative analyst reports for items on the agenda today. And uh for those items, we will have department presentation first, and then we'll go to the budget and legislative analyst report, and then we will open up for the committee members to ask questions and comments, and 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 retroactively authorizing the San Francisco Public Defender's Office to accept and expend a grant in the amount of 250,000 from the Crankstart Foundation to fund the San Francisco Public Defenders Clean Slate Unit to meet the increased demand for clean slate services for the period of July 1st, 2024 through June 30th, 2025. Madam Chair. Thank you and good morning. Today we have our public defender here. Good morning, supervisors. My name is Minod Rajou. I'm the elected public defender of San Francisco. My Chief of Staff, Listen Lacoste, and the manager of the Clean Slate Unit, Kelly Pretzer, will be presenting on this item today. Thank you for hearing this item and thank you to Supervisor Walton's office for introducing it. And thank you to the mayor's office and the controller's office for their help in preparing this resolution and to the Crankstart Foundation for providing this much needed funding. Also would like to thank the mayor's office, specifically our um MBO, Louisa Coy, and from the controller's office, Lily Lee, for also supporting this resolution. Um to provide some context for this grant and the retroactive resolution, Cranstar has supported our clean slate program since 2017, given approximately 1.9 million dollars to date. This specific funding for 250,000 will fund our existing managing attorney position, who you'll hear from um shortly, Kelly, um, for our office clean slate unit for this fiscal year. As stated in the resolution, the grant period is July 1st of 2020 2024 to June 30th of this year. However, the grant agreement was actually finalized on October 10th of 2024, and the resolution package was approved by the controller's office and the mayor's office on November 18th of 2024. Supervisor Walton introduced the the the introduced the resolution the following day on November 19th of 2024, and due to the PAC schedule of the budget committee, we this is the first day that it's being heard. Lastly, I would just like to add um outside of our managing attorney, the clean slate unit is comprised of seven staff in total. This includes two attorneys whose positions are funded by Crankstart.
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