OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Budget and Finance Committee Meeting – April 9, 2025

Budget and Finance Committee — Wednesday, April 9, 2025
BodySan Francisco, California
SessionBudget and Finance Committee
DateWednesday, April 9, 2025
StatusFILED
Video Record
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Transcript — Verbatim
0:05

Good morning.

0:05

The meeting will come to order.

0:07

Welcome to the April 9th, 2025 meeting of the Budget and Finance Committee.

0:11

I am Supervisor Connie Chang, Chair of the Committee.

0:14

I'm joined by member Supervisor Joel Ingario, shortly by Vice Chair Supervisor Matt Dorsey for SFGoff TV.

0:24

Just want to thank uh James Kawana for broadcasting this meeting.

0:30

Mr.

0:30

Clark, do you have any announcement?

0:32

Thank you, Madam Chair.

0:33

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.

0:41

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

0:46

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

0:49

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.

0:56

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 those doors.

1:04

If you wish to be accurately recorded for the minutes, alternatively, you may submit public comment in writing in either of the following ways.

1:11

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 ORG.

1:21

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

1:27

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

1:30

Postal Service to our office in City Hall at 1, Dr.

1:33

Carlton B.

1:34

Goodlick Place, Room 244, San Francisco, California, 94102.

1:39

And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors' agenda of April 15th, unless otherwise stated.

1:48

Madam Chair.

1:49

Thank you, Mr.

1:50

Clerk.

1:50

And um before we call the item on our agenda today, just like to remind the public that we have budget and legislative analyst reports for items 134, 5, 7, and 9 through 14 on today's agenda.

2:05

That means for these items, uh we will have the department presentation first, followed by the budget and legislative analyst.

2:12

Then we will take questions and comment from the committee, and then we will go to public comment.

2:20

With that, Mr.

2:21

Clerk, please call item number one.

2:23

Yes, item number one is a resolution approving a lease with the Chinatown Community Children's Center for approximately six thousand square feet.

2:31

Her real property located in City Hall and its grounds are pertinent, had a base rent of one dollar per year, authorizing the director of property upon receipt of approved permits for the construction of tenant improvements to the leased premises to execute a lease on behalf of the city and county for an initial ten-year term with two 10-year options to renew, and authorizing the director of property to enter into any additions, amendments or other modifications to the lease that do not materially increase the obligations nor liabilities of the city in order to effectuate the purposes of the lease or this resolution.

3:05

Madam Chair.

3:06

Thank you.

3:06

And today we have um Department of Real Estate here.

3:10

Good morning, Chair Chan, Supervisor Dorsey, Supervisor Ingario, and Driko Pinick, Director of Real Estate.

3:16

I'm before you this morning seeking your positive recommendation for a lease agreement with the city as landlord and Chinatown Community Children's Center as tenant for the basement space at City Hall for a child care center.

3:38

By way of background, the previous child care center operator at City Hall, Marin Daycare was unable to recover from the pandemic shutdown, and the ground floor space, as you may know, has been vacant since that time in 2021.

3:52

The real estate division issued an RFP for a new provider to operate the child care facility in the building.

4:00

And the nonprofit Chinatown Community Children's Center, or 4Cs, was selected as the most qualified respondent.

4:09

4Cs will offer an income scale fee structure to its clients.

4:13

The child care operator has partnered with agencies such as the Community Alliance for Special Education, the SF Unified School District, San Francisco Early Learning Allotment to enroll low-income families.

4:32

Four C's will offer a convenient income-based child care operation and access to supplemental educational resources.

4:42

The terms of the agreement are fairly straightforward and are similar to what was uh offered to the prior provider.

4:49

The lease provides 4Cs with an initial 10-year term with two tenure options to renew.

5:00

The rent is $1 per year, which is a nominal rent commonly used in agreements between the city and nonprofit child care centers and city owned and lease spaces.

5:07

This is also the rent that was offered to the previous uh operator.

5:13

The proposed resolution authorized execution of a lease with CCC following their development of design documents and receipt of permits.

5:23

The tenant improvements will be at the sole cost of 4Cs.

5:28

However, the city will ensure that the mechanical, electrical, plumbing uh infrastructure serving the building is in good working order, and the city will also provide basic custodial and utility services to the child care operator.

5:47

We have Ann Wong, the executive director, and Tiffany Rays, the program manager from 4Cs available for any questions you may have of them.

6:00

I also have what I believe to be non-substantive changes that I would like to read into the record.

6:05

These changes by and large are designed to make clear that the board is approving the $1 lease because the service provides a proper public benefit to the community.

6:22

The first change is on page two, line two, the words help me grow, Goten Gate Regional Center are deleted, and the word the is substituted in its place.

6:42

On line 11, still on page two, the word last is deleted, and the line would read with the addition of additional words, whereas real estate issued a permit in February of 2024.

6:56

Still on page two, line 17, the word of is deleted and substituted with the word with.

7:56

Again, on page three, lines three through five are deleted in their entirety.

8:01

Also on page three, line fourteen, the word previous is deleted.

8:07

Also on page three, line seventeen, the words they determine are replaced with or deleted and replaced with the words are determined.

8:17

On line 18, the word R, A R E is replaced with the words to be.

Discussion Breakdown — Share of Meeting
Homelessness████████████████16%
Capital Planning███████████████15%
Procedural██████████10%
Public Works██████████10%
Affordable Housing████████8%
Budget and Finance███████7%
Public Utilities███████7%
Public Comment█████5%
Public Education█████5%
Summary of Proceedings

San Francisco Budget and Finance Committee Meeting – April 9, 2025

The Budget and Finance Committee of the San Francisco Board of Supervisors met on Wednesday, April 9, 2025, at approximately 11:15 AM PDT (18:15 UTC) in City Hall. Chair Connie Chan presided, joined by Vice Chair Matt Dorsey and Member Joel Engardio. The committee considered 14 agenda items covering real estate leases, the 10-year capital plan, PUC contract amendments, Mission Rock park agreements, Sunnydale HOPE SF affordable housing financing, a shelter lease, and multiple homeless supportive housing grant amendments. All items were forwarded to the full Board of Supervisors with positive recommendations, several after amendments.

Real Property Lease – Chinatown Community Children’s Center (Item 1)

  • The committee approved a 10-year lease (with two 10-year renewal options) at $1 per year for approximately 6,000 square feet in the City Hall basement to Chinatown Community Children’s Center (4Cs) for a child care center serving up to 36 children. The space has been vacant since 2021.
  • Non-substantive amendments were adopted, correcting text in the resolution to satisfy administrative code requirements for below‑market-rate leases.
  • The Budget and Legislative Analyst (BLA) estimated the city forgoes about $200,000 per year in market rent and provides janitorial services (~$30,000/yr) plus utilities and security. Tuition subsidies by the Department of Early Childhood could cost up to $1.2 million annually if all families receive full subsidies (starting 2027).
  • Public comment: Tiffany Reyes (Low Income Investment Fund) spoke in strong support, noting the center will serve city workers and the broader community with a focus on infants and toddlers.
  • Key Outcome: Forwarded to full board with positive recommendation (3‑0).

10‑Year Capital Expenditure Plan FYs 2026‑2035 (Item 2)

  • Brian Strong, Chief Resilience Officer, presented the capital plan, now exceeding $50 billion ($52 billion over 10 years). The plan includes investments in affordable housing, infrastructure, parks, transportation, and debt management. The general fund backlog for facilities renewals stands at $1 billion; without sustained funding it could rise to $1.4 billion by 2035.
  • Discussion explored authorized but unused general obligation bond dollars, the city’s debt capacity constraints (capped at 0.14% of property tax ad valorum rate), and mechanisms to accelerate debt repayment or reprioritize capital projects.
  • Public comment: Five speakers (Joni Eisen, Elena Engel, Rosemary Jarrett, Dr. Robert Gould, Julie Lindo) urged rejection or revision of the plan to include a dedicated climate bond for greenhouse gas emission reductions. They emphasized health impacts, the need to fund the Climate Action Plan, and inclusion of the Department of Environment on the Capital Planning Committee.
  • Chair Chan committed to further discussions on adding Department of Environment to the Capital Planning Committee and reviewing unused bond authorizations.
  • Key Outcome: Forwarded to full board with positive recommendation (3‑0).

PUC Contract Amendments – East Bay Construction Management & Technical Services (Items 3 & 4)

  • Item 3: Approved Amendment No. 1 to a construction management contract (CPM/CM Pros JV) for the East Bay region, increasing the not‑to‑exceed amount by $25 million (from $9 million to $34 million) and extending the term two years (to June 2030). The increase is driven by scope, cost, and schedule growth on three major water projects (Alameda Creek Recapture, Sunol Valley Water Treatment Plant Ozonation and short‑term improvements). Construction costs rose from $85 million to $235 million for the ozonation project alone.
  • Item 4: Approved amendments to four specialized technical services contracts (Stantec JHCE JV, MMD JV, AECOM/WRE JV, Lee Incorporated), each increasing by $5.5 million for a new total of $13 million per contract ($52 million total). No term extension. Funds support capital planning, asset management, wildfire risk, and skill‑gap training for aging infrastructure (dams, transmission lines).
  • BLA noted both items are funded by utility revenues and recommended approval. Committee members praised the contextual presentation showing low percentages relative to total project costs.
  • No public comment.
  • Key Outcome: Both items forwarded to full board with positive recommendation (3‑0).

Mission Rock – Park Lease, Licenses, and Management Agreements (Item 5)

  • Approved an ordinance waiving competitive bidding to execute a park lease and loan, open space management agreements, and utility licenses with affiliates of the Mission Rock developer (Seawall Lot 337 Associates LLC). China Basin Park (completed as part of Phase 1) will be managed by the developer’s master association for a 15‑year initial term with three 5‑year renewal options. The port will provide a loan of up to $800,000 over three years to cover operating deficits. Originally Rec & Park was to fund the loan, but the port will now directly fund it. Public access hours: 6 AM–10 PM (bathrooms 8 AM–8 PM). Large events limited to 100 days per year and cannot exceed 30,000 square feet.
  • Licenses allow PG&E to maintain gas and electric lines, and Mission Rock Utilities to operate district energy and blackwater recycling systems (66‑year terms).
  • BLA noted the waiver of competitive procurement is a policy decision; committee members supported the efficiency of using the developer’s affiliate.
  • No public comment.
  • Key Outcome: Forwarded to full board with positive recommendation (3‑0).

Sunnydale HOPE SF Affordable Housing Financing – Blocks 7 and 9 (Items 6‑9)

  • Approved financing for two 100% affordable housing developments at the Sunnydale HOPE SF site:
    • Block 7 (Item 6): Multifamily housing revenue note up to $53,305,000 and loan (Item 7) up to $18,050,000. 89 units (67 replacement units for existing public housing residents at 50% AMI; 22 lottery units at 70% AMI). Total development cost ~$107.6 million, leveraging state ASIC funds ($18.5 million), tax credits, and private loans. Construction starts late May 2025, completion February 2027.
    • Block 9 (Item 8): Multifamily housing revenue bonds up to $57,075,000 and loan (Item 9) up to $30,200,000. 95 units (71 replacement at 50% AMI; 24 lottery at 80% AMI). Total development cost ~$113.5 million. Same construction timeline.
  • BLA noted city funding per unit is between $200,000 and $300,000 per unit. Committee members highlighted the importance of these reparative investments.
  • No public comment.
  • Key Outcome: Item 6 amended (deleting references to permanent lender assignment) then all four items forwarded to full board with positive recommendation (3‑0).

Monarch Hotel Lease – Non‑Congregate Temporary Shelter (Item 10)

  • Retroactively approved a one‑year lease (April 1, 2025 – March 31, 2026) with Lombard Hotel Group for the Monarch Hotel (1015 Geary Street) as a non‑congregate shelter (102 units). Annual base rent $1,597,320 plus a final payment of $100,000 upon surrender. The item had been continued from a prior meeting for substantive amendments.
  • No public comment.
  • Key Outcome: Forwarded to full board with positive recommendation (3‑0).

Homeless Supportive Housing Grant Amendments (Items 11‑14)

Four grant amendments were approved, all with extensions through June 2027 to align with a planned reprocurement of the city’s homeless housing portfolio:

  • Item 11 – Abode Services (Adult Rapid Rehousing): Increase by $8,511,165 (amended downward) for a total not‑to‑exceed $18,402,770. Serves up to 240 adults (expanded from 120). 97% successful housing placement and 97% retention at 12 months. Funded by homelessness gross receipts tax.
  • Item 12 – Episcopal Community Services (Henry Hotel PSH): Amendment reduced from 36 to 24 months; increase by $5,808,651 for a total of $20,400,596. Serves 121 units for formerly homeless adults. Rent collection rate ~47% (post‑eviction moratorium issue). BLA noted legacy site costs 30‑50% less per unit than newer PSH sites.
  • Item 13 – Five Keys (Artmar Hotel – Transitional Aged Youth PSH): Increase by $4.9 million for a total of $13.9 million. 60 units serving young adults (33% LGBTQ). Funded by homelessness gross receipts tax.
  • Item 14 – Mission Action/Dolores Street Emergency Shelter: Increase by $8.5 million for a total of $18.5 million. 91 beds (expanding to 152 beds in fall 2025). Bilingual, culturally responsive shelter serving largely Latinx community; includes Jazzy’s Place (nation’s first LGBTQ shelter). Funded by general fund.
  • Committee discussion focused on cost disparities, rent collection challenges, and the need for tiered service models. Vice Chair Dorsey raised concerns about community relations with Abode Services at City Gardens and 1174 Folsom.
  • No public comment.
  • Key Outcome: Items 11 and 12 amended (reducing amounts/terms as presented); all four items forwarded to full board with positive recommendation (3‑0).

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the April 9th, 2025 meeting of the Budget and Finance Committee. I am Supervisor Connie Chang, Chair of the Committee. I'm joined by member Supervisor Joel Ingario, shortly by Vice Chair Supervisor Matt Dorsey for SFGoff TV. Just want to thank uh James Kawana for broadcasting this meeting. Mr. Clark, 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, 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 trade by the television to your left by those 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 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 B. Goodlick 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 April 15th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And um before we call the item on our agenda today, just like to remind the public that we have budget and legislative analyst reports for items 134, 5, 7, and 9 through 14 on today's agenda. That means for these items, uh we will have the department presentation first, followed by the budget and legislative analyst. Then we will take questions and comment from the committee, and then we will go to public comment. With that, Mr. Clerk, please call item number one. Yes, item number one is a resolution approving a lease with the Chinatown Community Children's Center for approximately six thousand square feet. Her real property located in City Hall and its grounds are pertinent, had a base rent of one dollar per year, authorizing the director of property upon receipt of approved permits for the construction of tenant improvements to the leased premises to execute a lease on behalf of the city and county for an initial ten-year term with two 10-year options to renew, and authorizing the director of property to enter into any additions, amendments or other modifications to the lease that do not materially increase the obligations nor liabilities of the city in order to effectuate the purposes of the lease or this resolution. Madam Chair. Thank you. And today we have um Department of Real Estate here. Good morning, Chair Chan, Supervisor Dorsey, Supervisor Ingario, and Driko Pinick, Director of Real Estate. I'm before you this morning seeking your positive recommendation for a lease agreement with the city as landlord and Chinatown Community Children's Center as tenant for the basement space at City Hall for a child care center. By way of background, the previous child care center operator at City Hall, Marin Daycare was unable to recover from the pandemic shutdown, and the ground floor space, as you may know, has been vacant since that time in 2021. The real estate division issued an RFP for a new provider to operate the child care facility in the building. And the nonprofit Chinatown Community Children's Center, or 4Cs, was selected as the most qualified respondent. 4Cs will offer an income scale fee structure to its clients. The child care operator has partnered with agencies such as the Community Alliance for Special Education, the SF Unified School District, San Francisco Early Learning Allotment to enroll low-income families. Four C's will offer a convenient income-based child care operation and access to supplemental educational resources. The terms of the agreement are fairly straightforward and are similar to what was uh offered to the prior provider. The lease provides 4Cs with an initial 10-year term with two tenure options to renew. The rent is $1 per year, which is a nominal rent commonly used in agreements between the city and nonprofit child care centers and city owned and lease spaces. This is also the rent that was offered to the previous uh operator. The proposed resolution authorized execution of a lease with CCC following their development of design documents and receipt of permits. The tenant improvements will be at the sole cost of 4Cs. However, the city will ensure that the mechanical, electrical, plumbing uh infrastructure serving the building is in good working order, and the city will also provide basic custodial and utility services to the child care operator.

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