San Francisco Budget and Finance Committee Meeting - May 7, 2025
San Francisco Budget and Finance Committee Regular Meeting – May 7, 2025
The Budget and Finance Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and Member Joel Engardio, met on Wednesday, May 7, 2025, at 18:15 UTC. The committee considered eight agenda items, including a contract modification, property sales, lease renewals, grant acceptances, and gift approvals. All items received unanimous positive recommendations to the full Board of Supervisors.
Discussion Items
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Item 1 – Airport Contract Modification (Hallmark Aviation Services, L.P.) – The committee approved a resolution authorizing a second modification to extend the contract by one year (through June 30, 2026) and increase the not-to-exceed amount by $10.7 million, for a new total of $20,001,419. The contract covers guest assistance services at SFO, including information desks and international arrivals line management. Staff reported that in 2024, Hallmark assisted 2.6 million guests at 16 information desks. The modification also funds an 8.5% increase in budgeted positions for construction support. The BLA recommended approval.
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Item 2 – Real Estate Sale Agreement (Bayview McKinnon LLC) – The committee approved the sale of a 5,500-square-foot, 17-foot-wide vacant city-owned lot to the adjacent property owner for $375,000, the fair market appraised value. The property is a former railroad spur deemed unsuitable for independent development. The sale includes a finding of exempt surplus land under the California Government Code. Chair Chan requested that the Director of Real Estate brief District 10 Supervisor Walton before the full board vote, acknowledging the oversight.
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Items 3 & 4 – Lease Renewals at 3801 Third Street (Bayview Plaza) – The committee approved two lease renewals at the same base rent of $33 per square foot (a significant decrease from prior rates). Item 3: Human Services Agency (HSA) – initial three-year term with one five-year option, annual rent $526,251. Item 4: Department of Public Health (DPH) – initial five-year term with two five-year options, annual rent $489,225. Both leases are fully serviced and have no annual rent increases. The BLA noted the total cost over the initial terms is $1.6 million (HSA) and $2.5 million (DPH), and that the DPH lease aligns with plans to move HSA services to a new city-owned site.
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Item 5 – Accept and Expend Grant (Metropolitan Transportation Commission) – The committee approved a resolution retroactively accepting $1,362,816 in State Transportation Development Act Article 3 funds for pedestrian and bicycle safety projects, including curb ramps and sidewalk repairs. The committee accepted two technical amendments: (1) updating the grant performance period to July 1, 2024 – June 30, 2027, and (2) clarifying that Public Works will transmit the resolution to MTC. The amended resolution was forwarded.
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Item 6 – Grant Agreement Amendment (Homeless Prenatal Program) – The committee approved a second amendment to the grant agreement with the Homeless Prenatal Program (HPP) for the Supportive Housing Assistance and Readiness Efforts (SHARE) program. The amendment extends the term by four years (through June 30, 2028) and increases the not-to-exceed amount by $13.8 million, for a new total of $22,627,326. It maintains 32 existing rental subsidies and adds 28 one-time subsidies, serving up to 60 families. In FY 2023-24, the program served 39 households (143 individuals, including 81 children); 20 of 21 families who exited the program moved to permanent housing. The BLA noted a slight delay in average time from referral to move-in (93 days vs. 75-day goal), which is on par with other providers. Funding is from Proposition C revenues.
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Items 7 & 8 – Accept and Expend Gifts (Epic Systems Corporation) – The committee approved two retroactive gifts from Epic Systems: (7) $204,250 for support of Federally Qualified Health Centers (FQHCs), and (8) $115,000 for safety net provider support. The gifts are unrestricted and were reviewed by the Ethics Commission, City Attorney, and Controller’s Office to ensure compliance. Chair Chan noted that the city’s contract with Epic is expiring and expressed interest in learning about Epic’s new AI diagnostic features.
Public Comments & Testimony
- Item 6 only – A representative of the Homeless Prenatal Program spoke in strong support of the grant amendment, emphasizing that the program provides not only housing but also intensive case management, workforce development, mental health support, and fiscal management to ensure long-term sustainability for families. No other public comments were made on any agenda item.
Key Outcomes
- All eight items were forwarded to the full Board of Supervisors with a positive recommendation:
- Item 1: Motion passed 3-0 (Chan, Dorsey, Engardio).
- Item 2: Motion passed 3-0, with Chair Chan requesting that the real estate division brief Supervisor Walton before the May 13 board meeting.
- Items 3 & 4: Motion passed 3-0 (combined vote).
- Item 5: Motion passed 3-0 to accept the technical amendments and forward the amended resolution.
- Item 6: Motion passed 3-0.
- Items 7 & 8: Motion passed 3-0 (combined vote).
- The committee adjourned to reconvene at 1:30 PM for a budget and appropriation hearing.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the May 7th, 2025 meeting of the budget and finance committee. I'm Supervisor Connie Chan, Chair of the Committee, and I'm joined by Vice Chair Supervisor Matt Dorsey and Member Joel Ingario. Our clerk, it's Brent Halipa. I would like to thank Colina Mendoza from SFGO 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 and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file, these 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 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. P A Hat 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 or Office in City Hall at one. Dr. Carlton beak of 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 May 13th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk and uh colleagues. I think that today we have a pretty straightforward um agenda. So let's call item number one. Yes, item number one is a resolution approving modification number two to a contract with Hallmark Aviation Services LP for airport information and a guest assistance services to extend the term for one year for a total term of July 1st, 2024 through June 30th, 2026, and increase the contract amount by approximately 10.7 million for a new contract amount not to exceed approximately 20 million pursuant to the charter. Madam Chair. Thank you. And today we have uh SFO. Good morning, supervisors. Deanna Voleck with SFO. The proposed resolution would approve the second modification to an existing contract between the airport and Hallmark to exercise the first of three one-year options to extend the contract from July 1st, 2024 through June 30th, 2026, and increase the contract not to exceed amount by 10.7 million for airport information and guest services. The original contract was the result of a competitive request for proposals process. This modification will allow Harmart and its local business enterprise subcontractor Polaris to continue to perform essential guest service work at SFO, such as line management in the international arrivals area, wayfinding, and information desk operations. In 2024, staff assisted 2.6 million guests at 16 information desks. The contract employs individuals with diverse backgrounds, nearly all being bilingual at minimum, and a reflection of San Francisco's welcoming spirit. The BLA has recommended approval, and I am here with my colleagues from guest services to answer any questions. Thank you for your consideration. Thank you. The proposed resolution would approve an amendment to an existing contract between the airport and Hallmark Aviation Services to extend the term by one year and increase the not to exceed amount by 10.7 million. Hallmark staff assists international arrivals, passengers through federal inspection services and Polaris, a local business enterprise subcontractor staffs the airport's information desks. The second year of the budget is increasing to reflect increased hourly rates for Hallmark staff, as well as an 8.5% increase in budgeted positions to provide additional support during construction projects. We recommend approval of item one. Thank you. Um thank you. And and uh I do view this for the airport as essential having welcoming staff, having bilingual or multilingual staff for international airport.
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