San Francisco Budget and Finance Committee Regular Meeting - February 12, 2025

The Budget and Finance Committee of the San Francisco Board of Supervisors convened on February 12, 2025, at 6:15 PM UTC. Chair Connie Chan presided, joined by Vice Chair Matt Dorsey and Member Joan Guardio. The committee reviewed 12 agenda items, including contract amendments, grant acceptances, a property sale, and budget guidelines. All items except one were forwarded to the full board with positive recommendations; item 11 was forwarded without recommendation due to compliance and cost concerns.

Public Comments & Testimony

• Mark Gleason (Teamsters Local 665) spoke in support of the TEGSCO towing contract amendment (item 2), emphasizing the importance of job stability for workers.
• Keenan Arun (Co-Executive Director, Center for Immigrant Protection) thanked the committee for considering the $250,000 grant (item 10), noting the funds are vital for free legal services for LGBTQ+ asylum seekers amid anticipated federal funding cuts.

Discussion Items

• Item 1: CASARC Grant – A resolution to retroactively accept $829,025.83 from the U.S. Department of Justice for a new Child and Adolescent Support Advocacy and Resource Center at San Francisco General Hospital. The relocation from a basement to a more accessible, welcoming space with a secure tunnel to the emergency department was highlighted.
• Item 2: TEGSCO Tow Contract Amendment – Approval to increase the towing, storage, and disposal contract with TEGSCO by $15.3 million, for a total not-to-exceed $136.7 million. SFMTA staff reported strong contractor performance, a 93% on-time arrival rate, and $11.4 million in fee waivers for low-income, unhoused, and crime-related tows. The Budget and Legislative Analyst (BLA) noted the program costs $8 million annually to the MTA, recommending approval. Chair Chan questioned whether other city departments could reimburse SFMTA for tows ordered by them, a topic raised for upcoming budget discussions.
• Item 3: Tax-Defaulted Property Auction – Authorization to sell 155 parcels of tax-defaulted real property via public and sealed bid auctions. The Treasurer’s office described outreach efforts, including notifications to contiguous parcels. Three occupied properties in District 11 (41 Seer Street, 26 Stanley Street, 1123 Capitol Avenue) were removed from the list per Supervisor Chin’s request. The amended list was approved.
• Item 4: SSP Data Inc. Software Amendment – Approval to increase the enterprise agreement with SSP Data for Palo Alto cybersecurity products from $4.4 million to $40 million over six years, extending the term to May 2029. The amendment improves discounts (40-70% on services, additional 20% on hardware) and consolidates procurement citywide, saving an estimated $1 million annually in maintenance costs.
• Item 5: Early Access and Stabilization Services Grant – Retroactive approval of a $3.3 million grant from the California Department of State Hospitals for competency restoration treatment for about 40 individuals per year deemed incompetent to stand trial on felony charges. The program aims to reduce wait times and legal delays.
• Item 6: PUC Electricity Procurement Authority – An ordinance extending the delegation of authority for the SFPUC General Manager to purchase and sell electricity until June 30, 2030, increasing the annual expenditure limit from $200 million to $300 million and the revenue limit from $20 million to $300 million. The PUC cited rising energy prices and the need to compete at commercial pace. The BLA noted the revenue limit is not based on actual need but was set for consistency.
• Item 7: Sale of Surplus Property to San Bruno – Approval to sell 67,802 square feet of property (remnant parcels with no operational use) to the City of San Bruno for $5,000. The property is encumbered with easements and has been under license to San Bruno since 1999 for roadway landscaping and a bike lane.
• Item 8: Airport Specialty Retail Rent Reduction Program – A one-time adjustment to minimum annual guarantees (MAG) for 17 specialty retail concession tenants at SFO, projected to reduce rent by $1.2 million in 2025 and $1.3 million in 2026. The BLA supported the program, noting that 12 of 17 leases are held by disadvantaged business enterprises and that average net income for these tenants was negative 16%.
• Item 9: Minute Suites Lease Termination – Approval of a lease termination agreement with Minute Suites Travelers Retreat SFO, LLC, which never opened due to the pandemic. The tenant will pay a $75,000 termination fee (half the MAG) to compensate the airport until a new contract is awarded.
• Item 10: Center for Immigrant Protection Grant – Retroactive acceptance of a $250,000 grant from the California Department of Social Services, allocated through State Senator Scott Wiener’s advocacy, to support legal services for transgender immigrants. The grant enables the Center for Immigrant Protection (home to the LGBT Asylum Project) to hire an additional attorney.
• Item 11: Mid-Market/Tenderloin Safety Program Amendment – A $4 million increase (total $68.85 million) for the community-based safety program managed by the Mid-Market Foundation, set to expire June 30, 2025. While the program showed reductions in 911 calls (e.g., 35% on the 600 block of Ellis, 49% on Willow Street), the BLA raised concerns about the Foundation’s noncompliance with city nonprofit standards, late reporting, and potential conflict of interest. Chair Chan questioned the cost-effectiveness of the $25 million annual program versus other spending priorities (e.g., dental care, rental assistance). The committee voted 3-0 to forward the item to the full board without recommendation.
• Item 12: Board of Supervisors Budget Guidelines – A hearing to review the Clerk of the Board’s proposed budget for FY2025-27. The department requested $285,000 for two new senior clerks to handle a surge in Assessment Appeals Board filings (from ~2 to 11,000 appeals), $2 million for a new legislative management system (phases 2 and 3), and other minor adjustments. The total budget request is approximately $23.9 million. The committee authorized submission to the mayor and controller.

Key Outcomes

• Item 1-10 and 12: All were moved to the full Board of Supervisors with positive recommendations. Votes were unanimous (3-0).
• Item 3: The list of tax-defaulted properties was amended to remove three occupied parcels (41 Seer Street, 26 Stanley Street, 1123 Capitol Avenue) before the positive recommendation.
• Item 11: Forwarded to the full board without recommendation (3-0) due to compliance and fiscal concerns. The program is set to sunset on June 30, 2025.
• Item 12: The hearing was filed, and the clerk was authorized to submit the budget as presented.