Budget and Finance Committee Regular Meeting – February 5, 2025
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Budget and Finance Committee Regular Meeting – February 5, 2025
The Budget and Finance Committee of the San Francisco Board of Supervisors met on February 5, 2025, at 6:15 PM (UTC) to consider nine agenda items, including appropriations, grant agreements, a professional services contract, and a hearing on the city's five-year financial plan. The committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and Supervisor Joan Engardio, voted unanimously to forward most items to the full board with positive recommendations, continued one item to a date certain, and continued the financial plan hearing to the call of the chair. No public speakers appeared for most items, with the exception of a representative from Catholic Charities on item five.
Discussion Items
Item 1 – Appropriation for MTA – Portsmouth Square Garage and Transit Fares
- Ordinance appropriating $526,000 from the General Reserve to the San Francisco Municipal Transportation Agency to support free two-hour parking in the Portsmouth Square Parking Garage (January 28 – February 28, 2025) and free transit fares for Lunar New Year Parade weekend (February 15–16, 2025). The amount was increased from $250,000 and language regarding ambassadors was removed. The committee voted 3-0 to forward to the full board with a positive recommendation.
Item 2 – Grant Applications for Transitional Housing Programs
- Resolution authorizing the Human Services Agency to apply for and accept up to $4,210,804 from the California Department of Housing and Community Development for a Transitional Housing Program (for foster youth aged 18–25) and up to $629,926 for a Housing Navigation and Maintenance Program (for child welfare–involved youth aged 18–21). The funding was already anticipated in the FY24-25 budget. The committee voted 3-0 to forward to the full board.
Item 3 – Lease Amendment with BART – Rent Credit for Fare Gates
- Resolution approving a rent credit not to exceed $3,150,000 to BART for the Next Generation Fare Gates Replacement Project at the San Francisco International Airport station. The rent credit will be applied as an abatement of BART's monthly rent (~$208,000) for approximately 15 months. The work was completed in October 2024, but the amendment requires Board and Mayoral approval. The committee voted 3-0 to forward to the full board.
Item 4 – Professional Services Agreement – Water Capital Program Management
- Resolution approving a 10-year, $80 million contract with HDR Stantec JV to provide program management consulting services for the SFPUC's Water Enterprise capital improvement programs (Hetch Hetchy, Regional, and Local). The contract includes a 20.83% Local Business Enterprise commitment and a social impact partnership of $1,045,450 in financial contributions and $166,500 in volunteer hours. The Budget and Legislative Analyst noted the contract is about 1.8% of total capital spending, below the typical 5% benchmark. The committee voted 3-0 to forward to the full board.
Item 5 – Grant Amendment – Catholic Charities – Family Rapid Rehousing
- Resolution approving a fourth amendment to the grant agreement with Catholic Charities for the SF Home Rapid Rehousing Program for Families, extending the term through June 30, 2026, and increasing the not-to-exceed amount by $4.1 million to a total of approximately $14.5 million. The amendment adds capacity to serve 29 additional households (total 66 households). Catholic Charities reported that 82% of clients exited to permanent housing, 94% of referred families were placed into housing (average 65 days vs. 75-day requirement), and 97% maintained housing for 12 months. The program is funded by Prop C and general fund. A public speaker, Catherine Lee (Deputy Director of Innovation and Program Strategy at Catholic Charities), expressed gratitude and commitment to the program. The committee voted 3-0 to forward to the full board. During discussion, Supervisor Chan asked about the shelter waiting list (320 families) and the cost of family shelter ($212/night) versus rapid rehousing (~$30,000/year). The department noted that the limiting factor for shelter capacity is funding, not hotel availability.
Items 6 & 7 – Grant Agreements with Young Community Developers and Bay Area Community Resources
- Item 6: Resolution approving a new five-year grant agreement (July 1, 2024 – June 30, 2029) with Young Community Developers for the Black to the Future program ($1.7 million) and School Site Mentoring program ($473,520), total not to exceed ~$12.4 million. The Budget and Legislative Analyst noted that Black to the Future had served only about a quarter of its budgeted clients in FY23-24, so the new grant reduces the client target from 300 to 180 with a commensurate budget reduction. The department explained that the right-sizing was due to lower family engagement and families moving out of the neighborhood.
- Item 7: Resolution approving an amendment to an existing grant with Bay Area Community Resources, increasing the contract amount by approximately $2.3 million to a new total of ~$10.5 million, with no change to the five-year term. The amendment adds funding for Career Pathways for Undocumented Youth ($650,000/year) and a one-time $70,740 from Juvenile Probation for the Reset Justice Collaborative. The department corrected an error in the submitted amount, requesting approval of an amended total of $1,537,840 for the additional funding. The committee voted to amend item 7 as recommended, then voted 3-0 to forward both items to the full board.
Item 8 – Marina Improvement and Remediation – Fiscal Feasibility Findings
- Resolution to adopt findings of fiscal feasibility for the Marina Improvement and Remediation project. The sponsor, Supervisor Sherrill, requested a continuance to March 19, 2025, to allow further community conversation. The committee voted 3-0 to continue to that date.
Item 9 – Hearing on Five-Year Financial Plan Update and Mayor’s Budget Instructions
- Hearing on the city’s five-year financial plan update (FY2025-26 through FY2029-30) and the Mayor’s budget instructions. Benjamin McCloskey, Interim Director of the Mayor’s Budget Office, presented the fiscal outlook: a two-year deficit of $876 million ($253 million in FY25-26 and $623 million in FY26-27), with a projected $1 billion deficit in FY27-28 alone. Expenditure growth ($1.7 billion over five years) far outpaces revenue growth ($520 million). Key risks include state budget challenges, federal grant uncertainty (including $234 million in FEMA reimbursements), and local property/business tax appeals. Mayor Lurie’s additional instructions include a citywide hiring freeze (effective January 9, 2025, through end of fiscal year), a pause on new contracts not yet signed, and a requirement for departments to propose 15% permanent reductions in general fund spending. The committee discussed the hiring freeze’s impact on temporary positions, the need to address contract redundancy, and the importance of the upcoming six-month controller’s report. The hearing was continued to the call of the chair.
Key Outcomes
- Items 1–7: All forwarded to the full Board of Supervisors with positive recommendations (3-0 votes).
- Item 8: Continued to the March 19, 2025, Budget and Finance Committee meeting (3-0).
- Item 9: Continued to the call of the chair (3-0).
- Item 7 Amendment: The committee approved a correction to the contract amount as recommended by the Budget and Legislative Analyst and the department (3-0).
- No public speakers appeared on any item except item 5 (Catherine Lee, Catholic Charities).
- The committee will receive the controller’s six-month financial report later in February and continue budget deliberations in the coming months.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the February 5th, 2025 meeting of the Budget and Finance Committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Matt Dorsey, Supervisor Matt Dorsey, and Supervisor Joan Guardio. Our clerk is Brent Halipa. I would like to thank SFGov TV Kalina Mendoza for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Second, 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, 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 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. Uh 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 at 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 1 Dr. Carlton Be Good Look 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 11th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And uh with that, let's go to item number one. Yes, item number one is an ordinance appropriating 526,000 from the General Reserve to the San Francisco Municipal Transportation Agency to support free two-hour parking in the Portsmouth Square Parking Garage from January 28, 2025 through February 28, 2025 in transit fairs for the Lunar New Year Parade weekend on February 15th and February 16th, 2025 for fiscal year 2024 to 2025. Madam Chair. Thank you. And uh colleagues, this item uh we heard last week, uh, which uh from 250,000 dollars increased to now a total of five hundred and twenty-six thousand dollars, uh striking language um referencing ambassador, and so with that, because it's a substantive uh in dollar amount increase uh that it had to be continued from last week. And so with that, let's go to public comment and and I think we have heard this item, have the discussion. Let's go to public comment on this item. Yes, we now invite members of the public who have joined us today who wish to speak on this item number one uh to line to speak. And uh you will have two minutes. Madam Chair, we have no speakers. Seeing no public comments, public comment is now close. Uh as referenced by the budget and legislative analyst report last week. I think it's the similar that it's really uh policy decisions that we um whether or not we move this forward. So with that, I would like to make the motion to move this item to full board with recommendation and a roll call, please. And on the motion to forward this ordinance to the full board with a positive recommendation. Vice Chair Dorsey. Aye. Dorsey, aye, member and guardio and guardio, aye. Chair Chan. Aye. Chan, I we have three ayes. The motion passes. And Mr.
openpublica.com