Good morning. The meeting will come to order. Welcome to the February 11,

2026 meeting of the Budget and Finance Committee. I am Supervisor Connie Chan,

Chair of the Committee. I'm joined by Vice Chair Supervisor Matt Dorsey and Supervisor

Danny Sauter. Our Clerk is Brent Haliba. I would like to thank Kalina Mendoza from SFGov TV 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 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 that 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 tray by the television to your left

by the doors if you wish for your name

to be accurately recorded for the minutes.

Alternatively, you may submit

public comment in writing in either of the following ways.

You can email them

to myself, the Budget and Finance Committee

clerk at

brent.jali

p a

at sfgov.org

If you submit public comment via email,

it will be forwarded to the supervisors.

and also include it 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. Goodlett Place,

Room 244, San Francisco, California, 94102.

And finally, due to our observance of President's Day,

items acted upon today are expected to appear

on the Board of Supervisors' agenda of February 24th,

unless otherwise stated.

Madam Chair.

Thank you, Mr. Clerk.

And so with that, let's go to item number one.

Yes, item number one is an ordinance amending the health and business and tax regulations codes

to revise the definition of a mobile food facility permit,

had definitions for compact mobile food operations, mobile support unit,

and permitted auxiliary conveyance permits to reflect recent amendments to the California Retail Food Code,

Revising existing definitions of various other items to reflect state law definitions in that code

and expand the definition of stadium concession to include food facilities and stadiums with a seating capacity of $5,000 or more.

Establish annual permit and plan check fees for auxiliary conveyance,

compact mobile food operation and mobile support unit permits,

and waive license and permit fees for compact mobile food operations.

amending the Public Works Code to include a definition for compact mobile food operations

and to expand the Department of Public Works street vending authority

to include regulation of compact mobile food operations

and require that the department to consult with the Department of Public Health

and the Fire Department when issuing rules and regulations that regulate street vendors.

Madam Chair.

Thank you, Mr. Clerk.

and this item was continued from last week due to the substantive amendments

and our colleague, Supervisor Filder, has been working on this issue for quite some time

and would like a continuing conversation with the department and the mayor's office

to support the existing vendors, particularly those that may be utilizing micro kitchen, home kitchen.

So with that, it is with her request that we continue this item with date certain February, our next Budget and Finance Committee meeting on February 25th.

So let's go to public comment on this item.

Yes, if we have any members of the public who have joined us today who wish to address this committee regarding this item number one, now is your opportunity.

Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

Colleagues I would like to move this item to continue to our next meeting on

February 25th roll call please and on that motion that we continue this

ordinance to the February 25th meeting of this committee Vice Chair Dorsey

Dorsey aye member Sauter Sauter aye Church hand aye Chan aye we have three

eyes the motion passes and mr. clerk please call item number two yes item

Number 2 is a resolution approving and authorizing the Director of Property on behalf of the San Francisco Employees Retirement System to execute a lease agreement with Doublewood Investment Inc. as landlord for use of a portion of 111 Pine Street consisting of approximately 47,000 rentable square feet for an initial term of 10 years with two five-year extension options to renew and 12 months of rent credit with an annual base rent of approximately 2 million or 3% annual increases.

as efforts to contribute up to approximately $4.7 million in tenant improvement,

effective upon approval of the resolution and execution of the lease by the Director of Property,

and authorizing the Director of Property to execute any amendments,

make certain modifications, and take certain actions that do not materially increase the obligations nor liabilities to the City,

do not materially decrease the benefits to the City,

and are necessary or advisable to effectuate the purposes of the lease agreement or this resolution.

Madam Chair.

Thank you, Mr. Clerk.

Vice Chair Dorsey.

Thank you, Chair Chin.

So as the District 6 Supervisor, I've worked to prioritize the city's strategic investments

on the Market Street corridor, which includes but isn't limited to the mid-market neighborhood

and to date.

Much of this advocacy has been behind the scenes, but we will be announcing a hearing

in the next couple of weeks on this very topic.

I mention that because when there is a public sector tenant that is leaving Market Street,

I want to get informed on if we did everything we could as a city to make sure that we are reflecting

both our commitment to a neighborhood that has, I think, especially in recent years,

been disproportionately harmed by some of the responses that the city had during the COVID era

with shelter-in-place hotels.

I think it's important that we make a commitment to the residents of this neighborhood,

and especially in an area where most city employees and city workers are,

that we're doing something that's convenient.

I have had the opportunity yesterday to meet with the real estate department

and the retirement system, and we had a good conversation,

but I would actually like to be a little bit better informed.

I do think it's important that we be making real estate decisions like this in a way that is thoughtful and strategic from a big picture, and rather than having one-offs.

That's not saying this is necessarily that.

I just want to get better informed.

So I would like to make a motion to continue this to the February 28th meeting.

So with that, let's go to public comment on this continuance, and then we'll come back to roll call for the motion.

Yes, if we have any members of the public who wish to address this committee regarding the continuance of this item, that was your opportunity.

Madam Chair, we have no speakers.

Seeing no public comments on this item, public comment is now closed.

And so with that, a roll call on Vice Chair Dorsey's motion.

And on that motion by Vice Chair Dorsey, that we continue this resolution to the February 25th meeting of this committee.

Vice Chair Dorsey?

Aye.

Dorsey, aye.

Member Sautter?

Aye.

Sautter, aye.

Chair Chan.

Aye.

Chair Chan, aye.

We have three ayes.

The motion passes.

And Mr. Clerk, please call item number three.

Item number three is a resolution approving and authorizing the director of property on behalf of the Office of the Public Defender to execute a First Amendment to the office lease for the continued use of office space located at 258A Laguna Honda Boulevard, Hood Chiu Laguna LLC as landlord,

effective upon approval of the resolution and execution of the amendment by the Director of Property

with an estimated commencement date of March 1, 2026

and terminating on February 28, 2029

at the monthly base rent of approximately $5,000

for a total annual base rent of approximately $58,000

increased by approximately $145 and $148 per month

in the second and third years respectively

with one three-year option to extend and authorizing the director of property to take other actions

in respect or with respect to the amendment that the director of property deems to be in the best

interest of the city, to not materially increase the obligations nor liabilities to the city,

to not materially decrease the benefits to the city, and are necessary or advisable to

effectuate the purposes of the amendment or this resolution and are in compliance with all

applicable laws, including the city's charter. Madam Chair. Thank you. And we have Real Estate

Division here. You also have Listan Lacoste, Chief of Staff of the Public Defender's Office,

along with Jeff Seuss from the Real Estate Division speaking to this item.

Thank you. Good morning, supervisors. Yeah, surprise. It's me again. Again, Listan Lacoste

of the Public Defender's Office.

So this is speaking to a lease amendment

to a property which the public defender

has been housed in for over 20 years.

Hold on, let's get to make sure this slide.

Okay.

And originally, our Youth Defender Division,

formerly our Juvenile Division,

was within the site.

However, as that division downsized

downsides in terms of supports, our mental health unit moved into the property about,

I believe, in 2022. Currently, it houses seven of our mental health unit employees. That includes

three attorneys, one clerk, a medical social worker, and two investigators as well. The mental

health unit, as many of you are familiar with, it provides services for clients who, both criminal

and civil proceedings, including all stages of involuntary treatment commitment, as well as

advocates for clients' best interests in court-ordered treatment programs such as assisted outpatient

treatment, housing conservatorship, and community-based programs.

So with that, I'm going to let Jeff speak to the actual terms of their agreement.

Thank you, Mr. Cox.

Good morning, Chair Chan, Supervisor Dorsey, Supervisor Sautter.

So the real estate division, working with the Public Defender's Office, negotiated a

three-year extension and another option to extend it for an additional three years.

We took advantage of the market.

Current rent is $35 in change per square foot.

Market showed it was around $33, $32.

We have $29.

We've negotiated $29.49.

We also have them refreshing the space with paint, carpeting,

and they also have baited the first month of rent.

So it brings our effective rate down to almost $29 even.

It's pretty straightforward, but we're happy to answer any questions that you have for either myself or Ms. Lacoste.

Thank you.

Thank you.

I don't see any name on the roster.

Let's go to public comment on this item.

Yes, we're now opening public comment for this item number three.

If we have any members of the public, we should address this committee.

Madam Chair we have no speakers. Thank you and seeing no public comments and public comment is now closed

We appreciate all the work that is being done and we understand

That we must allow this continue to so that you have the space

so with that I would like to make the motion to

Forward this item to football with recommendation and a roll call please and on that motion

Do we refer this resolution to the full board with the recommendation?

Vice-chair Dorsey Dorsey I member solder solder I church and I Chen I we have three eyes the motion passes

Thank you. And mr. Clerk, please call item number three

For I'm sure I'm number four. Yes item number four is a resolution adopting a fixed two-year budgetary cycle for the following city departments

Airport, Port, and Public Utilities Commission for fiscal years 2026 to 2027 and 2027 to 2028

in defining terms and setting deadlines. Madam Chair. Thank you. And then we have

our Mayor's Budget Director, Sophia Kittler, here. But I'm going to turn this over to Vice

Chair for a short while as well. Thank you. Welcome, Director Kittler. The floor is yours.

Thank you. Good morning. Thank you, Chair Chan, Vice Chair Dorsey,

member Sautter. This is a straightforward resolution that we bring forward every two years.

As you know, we have a number of enterprise departments that are on fixed two-year budgets

and then come in with kind of an update on odd years. This year we are proposing, as we usually

do, that the Public Utilities Commission, the Airport Commission, and the Port Commission be

submitting their two-year budgets for introduction on May 1st. We may bring forward other regular

annual budgets in that May 1st timeline. Historically, we've brought forth, for example,

DBI and the MTA with these, but these are the three that we are defining the terms and setting

the deadlines for in this annual thing. I'm here to answer any questions.

Thank You director Kittler I don't have any questions and I don't see anyone on the roster

Why don't we open this up to public comment delightful

Yes, we are now opening public comment for this item number four if we have any members of the public who wish to address this committee

Mr. Vice chair we have no speakers

Thank You mr. Clerk the public comment is now closed

And I would like to make a motion to send this item to the full board with our positive recommendation

and on that motion to refer this resolution to the full board with

the recommendation vice-chair Dorsey all right Dorsey I remember solder solder I

chair Chan Chan absent we have two eyes with church and absent great thank you

mr. clerk the motion passes thank you mr. clerk would you please call item number

five yes item number five is an ordinance appropriating approximately

311,000 from the General Reserve to the Municipal Transportation Agency to support free one-hour

parking in the Portsmouth Square parking garage from February 7th through March 7th, 2026,

and transit fares for the Lunar New Year parade on March 7th, 2026, fiscal year 2025 to 2026.

Mr. Vice-Chair.

Thank you, Mr. Clerk.

Supervisor Sautter.

Thank you, Supervisor Dorsey.

Before our presentation, I just want to appreciate my excitement for this.

We had a great community kick off the other week to celebrate this at Portsmouth Square Garage.

You'll note that this year we're looking at one hour free parking rather than two,

kind of reflecting the moment we are with our budget,

but also very excited about the one day of free Muni.

The hope here is to just make it very clear that we want everyone to celebrate

Lunar New Year, Chinese New Year, and of course as the District 3 supervisor we

want a lot of those celebrations to happen in Chinatown and I know they will

and I think this will make it much more accessible. So look forward to supporting

this. Thank you. Thank you Supervisor Sauter. We're going to hear from Robert

Icardi, the off-street manager from the parking and curb management from the San

Francisco's Municipal Transportation Agency and then we'll hear from the BLA.

Mr. Icardi the floor is yours. Morning committee members, Robert Icardi off-street

parking. So as we alluded to earlier in the past we did two hours but this year we're proposing a

one hour free parking and in the heart of Chinatown for Portsmouth Square Garage specifically

and the dates are actually February 8th to March 8th. I think there was a little bit of mistake

there but weekends it's open till midnight and on during the week it's open till 12 starting at 5

a.m. and it's really beneficial for the community and we've seen uptake in the last four or five

years when we implemented this program and just volume of the garage and spills out into the local

community. And it's very simple to use. There's no issue for the end user. We made our system very

robust and user-friendly. Essentially, anyone can pull a ticket, and the system will not charge you

until the 61st minute, allowing patrons of the garage to go out and venture out to other

restaurants or merchants within Chinatown or nearby. And then once they proceed to come back

to the garage, continue to any pay station to pay via cash or credit card, or simply scan their phone

with the ticket, as you see in the slide here,

where they can just use our mobile pay option

and scan using Apple Pay or Google Pay

and then proceed right to the exit.

That's pretty much it for the garage.

Very straightforward for you.

Any questions?

No. Thank you, Mr. Riccardi.

Why don't we hear from the LA?

Good morning.

Nick Menard from the Budget Legislative Analyst's Office.

Item 5 is an appropriation ordinance

that would appropriate about $311,000 from the General Reserve to MTA to fund one month of one hour of free parking

through March 15th at the Portsmouth Square Garage.

Excuse me, it's through March 8th at the Portsmouth Square Garage,

and then one day of free transit on March 7th around the Lunar New Year celebration.

This money will basically fund the cost of that lost revenue to MTA,

and any money you take from the General Reserve has to be replenished next year,

so it's basically another cut you have to make to the general fund budget next year.

The General Reserve right now has about $160 million in it,

so this is $300,000 out of that reserve.

So approval of this is a policy matter for the board.

Thank you, Mr. Menard.

It's my understanding we have just minor amendments to change the effective dates in the long title.

Page 1, line 5, changing February 7th to February 8th and March 7th to March 8th.

I'll read those into the record, and when I make a motion, I will reference that.

Seeing no one on the roster with further questions, I think I appreciate your presentation.

Why don't we open this up for public comment?

Yes, we are opening public comment for this item number 5.

If you have any members of the public who wish to address this committee,

Mr. Vice Chair, we have no speakers.

Thank you, Mr. Clerk.

The public comment is now closed.

And I would like to make a motion to amend the appropriation to the amendment that I just read into the record.

And then we can do this with one motion, I believe.

Send this out to the board with our positive recommendation.

And on that motion, do we amend this ordinance to change the effective dates?

from February 7th through March 7th to February 8th through March 8th.

And then we refer this ordinance to the full board with recommendation as amended.

Vice Chair Dorsey?

Aye.

Dorsey, aye.

Member Sauter?

Aye.

Sauter, aye.

Chair Chan?

Chan, absent.

We have two ayes with one absent, with Chair Chan absent.

Thank you, Mr. Clerk.

The motion passes.

Mr. Clerk, would you please call item number 6?

Yes, item number six is a resolution approving the 10th amendment to a contract with SFMTA 2016-17,

a paratransit broker and operating agreement between the city and county,

acting by and through the Municipal Transportation Agency and Transdev Services, Inc.,

to provide paratransit services to extend the term by two years from June 30, 2026,

for a total term from July 1, 2016 through June 30, 2028,

and to increase the amount by approximately $31 million,

for a total not to exceed amount of approximately $339 million,

and to authorize the MTA to enter into any amendments or modifications to the agreement,

had to now materially increase the obligations nor liabilities to the city

that are necessary to effectuate the purposes of the agreement or this resolution.

Mr. Vice Chair.

Thank you, Mr. Clerk.

We have Jonathan Chang, Paratransit Manager from the San Francisco Municipal Transportation Agency,

as well Mr. Ramos and Ms. McAuliffe are available for questions.

Mr. Chang, the floor is yours.

Thank you.

So, yeah, we're here today to request a two-year contract extension to the Paratransit Agreement,

as well as increasing the contract authority by about $31 million.

So for some background, Asif Paratransit is the city's 88 Paratransit Service,

which provides van and taxi service to seniors and people with disabilities who are unable to use the mini fixed route service.

Since the inception, it's been contracted out to a third-party vendor.

Currently, SFM pay contracts with Transdev, who has operated the broker administrative function since 2000

and has served as the primary service operator since 2014.

The current agreement is set to expire in June of 2026, and the proposed extension will extend these terms through June of 2028.

So over the past year, the program has performed exceptionally well, with a 90% overall satisfaction as well as 95% on-time performance.

This is a result of ongoing dedication to streamlining our operations as well as enhancing the customer experience.

So with this extension, we will also be incorporating new measures that were identified as part

of an agency-wide directive to find cost savings with contractors.

Funding for paratransit comes from a variety of federal, state, and local sources, with

the primary source being the Prop L sales tax.

SFMTA operating funds account for about 13% of paratransit expenditures.

And then with this extension, in addition to stabilizing program costs, this will allow

us to complete several key pilots and technology upgrades, identify new revenue opportunities,

as well as operational efficiencies that we hope to incorporate in the next request for

a proposal for paraconset services.

This RFP is planned to be issued around winter or spring of 2027.

And with that, I yield the floor, and I'm here for any questions.

Thank you.

Thank you, Mr. Chang.

Professor Sauter. Thank you. I just want to, if you're able to answer this, I know it might be a bigger topic, but just some of the reduction in use in the last few years, particularly, I think, around like the group trips and your thoughts on why that might be happening and then what we can do to turn that around or just make the service more accessible.

Yeah, so the reduction in the group van trips, I think, has been largely attributed to kind of recovery from the COVID pandemic.

When the COVID pandemic hit, these are group sites where seniors congregate, receive day programs.

So they were the first locations to actually close, and they were actually the last locations to reopen fully.

So we are seeing kind of higher growth compared to other services, but that growth has started more recently.

So we believe that as more seniors and people with disabilities feel more comfortable attending

services in a group environment, that that service will continue to increase.

We actually are predicting 10% increases for the next two years in terms of that service.

In terms of making sure that seniors have information and knowledge about the services

we provide, we do outreaches through the community.

We also have a mobility management team, which seniors and people with disabilities can call

if they don't know information about transportation in the city

and be connected to services, not only that SFMTA provides,

but as well as other private entities that serve seniors and people with disabilities.

Thanks for that information.

I'm glad to see it starting to pick back up.

Thank you.

Thank you, Supervisor Sauter.

And let's hear from the budget and legislative analyst.

Item six is a resolution that approves an amendment to MTA's contract with TransDev.

Transdev provides, operates the paratransit program for MTA.

They provide some transportation directly and then also manage subcontractors

who provide some of the transportation for some of the programs within the paratransit program.

We show the ridership on page 15.

You can see it has not recovered to its pre-COVID level,

but has been growing about 6% a year for the past three fiscal years.

We also looked at the performance of the contract.

There are various measures in terms of how long people wait on the phone,

if they are picked up on time, how safe the rides are,

and the firm is meeting the performance objectives of the agreement.

We also showed the budget on page 17 of the report.

You can see this is about a $30 million a year contract.

About two-thirds of that is funded by local funds.

including the MTA Operating Fund.

I know one of the purposes of this short-term extension

is to identify cost-saving measures

to make the program more affordable

and then also to look at billing Medi-Cal

because that is an available revenue source

for at least some of the trips.

That has not been done in the past

but could be done in the future.

And that would make the program more affordable

from a local level.

So we do recommend approval of item six.

Thank you, Mr. Menard.

Quick just question about the two-year extension.

Was there a cost associated with extending it two years?

It was a 10-year bid, but that we extended it for an extra two years?

Yeah.

So it's about $30 million a year program that's funded by MTA.

So the extension of the agreement is basically cost that much.

The extension does lower some of the management fees that TransDev would get as part of the contract.

And also they were able to, I believe, consolidate some office space and create some savings within the contract as well.

I think there's probably additional opportunity to reduce the cost of the program given the ridership trends.

and I know MTA has identified a number of areas that they want to look at over the next two years

that would then inform a procurement for a longer-term contract.

Okay.

And this is maybe for either or both of you to just help me understand a little bit about whether

and to what extent we're adequately leveraging Medi-Cal reimbursements.

Yeah, so this is a – we've always been interested in this.

We had been awaiting – there was possible –

The last two years, there was statewide legislation that would help streamline the process and to reduce the administrative burden.

However, those bills didn't pass on the state level.

So with this extension, there are local agencies that have been able to successfully get Medi-Cal reimbursement for medical-based trips.

So with this two-year extension, it allows to do a little bit more research,

to kind of establish a full scope of work, as well as to identify software that we may need to acquire

in order to facilitate the eligibility, trip management, and billing in order to receive Medi-Cal reimbursement.

Okay.

Seeing no one else on the roster with questions, thank you, Mr. Chang.

Thank you, Mr. Bernard.

Why don't we invite up a public comment on this item?

Yes, we're opening public comment for this item number six.

If we have any members of the public wish to address this committee.

Good morning, Supervisors.

Mark Leeson with Teamsters Joint Council 7, our affiliate local Teamsters 853.

The members of that local are the paratransit drivers,

and we are here to support the continuation of the contract and the amendment as it's presented today.

We look forward to continuing to be able to provide this very vital service to the community.

Thank you.

Thank you much, Mark Gleason.

And with that, that completes our queue.

Seeing no more public comments, public comment is now closed.

Thank you so much, Vice Chair Dorsey, for your work on this

and for helping me continue to this committee.

And with that, colleagues, I would.

And also, I appreciate the paratransit really work.

And I think that this is more critical than ever at the moment.

I do think that let's kind of check out how we can bring back the ridership before pandemic level and continue to consistently improve the operation.

It has been sort of an issue about sometime from time to time, I believe, you know, when we hear from senior senators about scheduling for that and including language access for scheduling effort for the paratransit rights.

But with that, I will move this item to full board with recommendation and a roll call, please.

And on that motion that we refer this resolution to the full board with a recommendation, Vice Chair Dorsey.

Dorsey, aye.

Member Sautter.

Sauter aye chair Chan aye Chan aye we have three eyes the motion passes and my

apologies colleagues I believe you have voted on item 5 and if I may resend the

vote for item 5 to allow me to cast the votes in support do we need to call the

item mr. Clark or can I resend the votes for item 5

actually let me go ahead and then just to be safe let me let me read the title

again madam chair thank you and yes item number five is the ordinance

appropriating approximately three hundred eleven thousand from the general

reserve to them to the MTA in support for the free one-hour parking at

Portsmouth Square parking garage and yes madam chair thank you and my

colleges saying my apologies and thank you colleagues and I would like to

resend the vote of on item five and a roll call please and on the motion to

send the last vote on this item five vice chair Dorsey Dorsey I member

solder solder I charge hand I chain I we have three eyes thank you in the motion

passes and colleagues I believe it was probably vice chair Dorsey's motion to

move it with recommendation to full board and I'm gonna say that that's the

motion by vice chair Dorsey and the roll call please and on that motion that we

refer this ordinance to the full board with recommendation as amended. Vice

Chair Dorsey? Dorsey aye. Member Sauter? Aye. Sauter aye. Chair Chan? Aye. Chan aye. We have three ayes. The motion passes. Thank you colleagues for that and let's go to item number seven. Yes item number seven is an ordinance

appropriating 18.5 million of fund balance from the Port Harbor Fund to the

port for stabilization and disposal of dry docks and other shipyard

improvements and safety measures in fiscal year 2025 to 2026. Madam Chair. Thank you and we have

our Port of San Francisco here. Thank you so much supervisors. Good morning. I'm Megan Wallace,

the Port's Interim Deputy Director of Finance and Administration. This item today is requesting

your approval of an ordinance of a supplemental appropriation of $18.5 million for stabilization,

removal and disposal of the port's dry docks.

I was actually here just recently on January 28th

with regard to an emergency declaration

and seeking approval to move forward

with an emergency contract

for stabilization of dry dock number two.

You might recall we do have these two dry docks at Pier 68.

The one on your right, easternmost in the waterfront,

is dry dock number two.

It's currently unstable, taking on water.

However, this supplemental, in addition to supporting initial stabilization of the dry dock,

will also allow us to begin our work in pursuing removal and disposal

of both dry dock number two and the Eureka.

Just again, for illustrative purposes, you can see that in November,

dry dock number two was taking on water,

really pushed us to move forward with an emergency declaration.

the port commission had previously authorized staff to move forward with a

supplemental appropriation so we quickly moved to move that legislation forward

and it's what is before you today I think just since the time the this

committee and now the Board of Supervisors has approved our emergency

declaration we've also been to the capital planning committee just this

last Monday they approved moving forward with this ordinance and again this

will appropriate 18.5 million dollars that on top of pre-existing 1.5 million

of settlement funds will give us 20 million dollars in the current fiscal

year to begin our work however when the port brings our budget forward for

fiscal year 2026-27 we'll be supplementing that budget with an

additional 41.2 million so we will have 61.2 million to really complete the full

scope of stabilization, removal, and disposal. With that, I'm happy to take your questions,

and I appreciate your support through this process. Thank you. This is along with the

emergency repair that came to this body, I think, believe two weeks ago? That's correct.

And then now you're coming for the funding that was actually allocated for it and now

for appropriation so we appreciate the work we do hope that the work commenced

soon if not already and let's go to public comment on this item yes we're

opening public comment for this item numbers sorry do we need a BLA report

for this item I'll just say that there's a hundred and ninety million dollars in

the Harper fund this appropriation of eighteen point five million dollars would

reduced that to about 170 million dollars and is part of a larger project

to dispose of the dry docks that will also be paid for by the Harbor Fund we

recommend approval of item seven thank you and my apologies for interrupting

you mr. clerk while you were calling for public comments sorry and please please

go ahead yes we are opening public comment for this item item number seven

if we have any members of the public who wish to address this committee

Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

Colleagues, I would like to move this item to full board with recommendation and a roll call, please.

And on a motion, do we refer this ordinance to the full board with a recommendation.

Vice Chair Dorsey?

Aye.

Dorsey, aye.

Member Sauter?

Aye.

Sauter, aye.

Chair Chan?

Aye.

Chan, aye.

We have three ayes.

The motion passes.

Thank you.

Mr. Clerk, please call item number eight.

Item number 8 is a resolution retroactively approving Amendment number 50 to the Treasure Island Land and Structures Master Lease between the Treasure Island Development Authority and the United States Navy to extend the term for one year to commence December 1, 2025 for a total term of November 19, 1998 through November 30, 2026, and to authorize the Treasure Island Director to execute and enter into amendments to the lease that do not materially increase the obligations nor liabilities to the

city and are necessary to effectuate the purposes and intent of this resolution.

Madam Chair.

Thank you.

And today we have Treasure Island Development Authority.

Good morning.

Thank you, Chair Chan, Vice Chair Dorsey, and Supervisor Sauter.

Peter Somerville with the Treasure Island Development Authority.

In front of you today is an amendment to the land and structures master lease between Tide

and the Navy to extend the term for one year through November 30, 2026, with no other changes

to the lease terms and conditions.

A question that's asked of this committee every year is why do we have to amend this lease annually?

The one-year lease is a condition of the Navy's overall real estate program.

We do ask them every year if we could have a longer lease or just one extension until the lease sunsets.

However, we do need to come back every year based on their processes.

The lease premises consists of two buildings under Titus' commercial portfolio,

the Department of Public Works, On Island Corporation Yard, and the multi-use recreational

path along the northern edge of the island. I know that Supervisor Dorsey and his dog are familiar

with that path. We do acknowledge that this is a retroactive request for approval this year.

That is solely the fault of staff. We lost track of the timing on our approvals. That is certainly

the exception, not the rule with our administration of this lease, so we seek the committee's

understanding on that element of the item this year.

Again, the authority requests approval of the item.

That completes my presentation.

I'm available for any questions.

Of course.

Thank you.

Vice Chair Dorsey.

Thank you, Chair Chan.

I would say that just having worked in the city attorney's

office and seen for many years, there's

a level of complexity that goes into working

with the military branches.

I think that played out in the Presidio too.

So I understand that I'm fine with the retroactivity of it.

And I just want to express my appreciation to TIDA for all the work that you're doing.

There's really a lot of excitement around Treasure Island, and I'm really proud of the work you're doing.

Thank you.

Thank you.

And let's go to public comment on this item.

Yes, if we have any members of the Public and Western Addresses Committee regarding this item number eight, now is your opportunity.

Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

Vice Chair Dorsey, what is your will?

I would like to make a motion to send this item out to the full board with our positive recommendation.

Roll call, please.

And on that motion by Vice Chair Dorsey, that we refer this resolution to the full board with recommendation.

Vice Chair Dorsey?

Aye.

Dorsey, aye.

Member Sauter?

Sauter, aye.

Chair Chan?

Aye.

Chan, aye.

We have three ayes.

The motion passes.

Thank you.

exceed amount of approximately twenty point two million effective upon

approval of this resolution and to authorize the office of contract

administration to enter into amendments or modifications to the contract that

did not materially increase the obligations nor liabilities to the city

and are necessary to effectuate the purposes of the contract or this

resolution madam chair thank you and today we have the city administrators

office here

Good morning, Chair Chan, Supervisors Dorsey and Sautter.

My name is Sophie Hayward, and I'm here from the Office of the City Administrator on behalf

of the Office of Contract Administration.

And I am here to seek a recommendation of approval to amend the existing contract with

Vitalant for blood and blood products.

The amendment we seek would increase the not-to-exceed amount to $28.2 million.

That's an increase of $18.3 million, and to extend the term by five years to September of 2031.

This contract provides critical blood and blood products to allow Zuckerberg SF General to provide life-saving care to patients,

but you may wonder, as I did, what are blood products?

Blood products are the individual components of blood

that are separated to target specific conditions.

So some examples of those are red blood cells to treat anemia and blood loss,

platelets to help with clotting disorders,

and plasma, which helps patients with liver disease, burns,

and various kinds of trauma.

As you know very well, SF General is the city's only Level 1 trauma center, and therefore it's critical to have access to blood products to meet emergency needs.

Blood products have a limited shelf life, so the geographic proximity of the supplier is actually critical to ensure shipments within one hour when they're needed.

OCA originally entered into this contract with Vitalant in October of 2021, and a first

amendment was executed in October of 2024 and extended the contract through September

of this year.

OCA anticipates that based on the average monthly spend, the proposed amendment is necessary

to ensure continued access to the critical supplies.

That concludes my presentation.

I'm joined today by Shuang Liu from OCA and Sabrina Robinson from DPH for any questions.

Thank you.

Item 9 is a resolution that approves an amendment to the city's contract with Vitalant.

The new value of the contract is $28.2 million.

This was procured on a sole source basis because they are the only blood product provider that can get to General Hospital within an hour.

They're based in Brisbane.

So this is an extension through September 2031.

We evaluated the performance of the contractor.

The contract requires that they meet certain delivery times.

They are meeting those requirements, and we summarized that on page 27 of our report.

DPH spends about $2.5 million a year on these products,

and so that's the basis for the $28.2 million not to exceed amount of the contract.

The prices are similar to what Santa Clara County pays for buying blood from the Red Cross,

though they are a bigger hospital system than San Francisco and are able to get lower unit prices.

But we do recommend approval of item nine.

Thank you.

Thank you.

I don't see any name on the roster.

Let's go to public comment on this item.

Yes, if you have any members of the public, I wish to address this committee regarding this item number nine.

now is your opportunity madam chair we have no speakers seeing no public

comments public comment is now closed colleagues I would like to move this

item to full board with recommendation and a roll call please and on that

motion that we refer this resolution to the full board with recommendation vice

chair Dorsey Dorsey I member solder solder I church and I Chen I we have

The motion passes.

Mr. Clerk, please call item number 10.

Yes, item number 10 is a resolution retroactively authorizing the Environment Department to

accept and expend a grant award from Tech Clean California in the amount of approximately

$299,000 for the period beginning on or about January 20, 2026 through March 31, 2027 to

to provide heat pump water heaters as part of renovation and repair projects through

low income investment funds, child care facilities fund, and to expand the reach of electrification

training to organizations and contractors working in housing rehabilitation programs

and authorizing the director of the environment department to execute the grant agreement

and enter into amendments or modifications to the grant agreement that are necessary

to effectuate the purpose of the grant agreement and or this resolution.

Madam Chair.

Thank you, and we have San Francisco's Department of Environment here.

Good morning, Supervisors.

My name is Alice Hur, Senior Policy Coordinator

from the Environment Department.

And before I begin, I want to recognize Nancy Chen,

who is from the Low Income Investment Fund,

who is the partner for this grant.

So as I stated at the last meeting, San Francisco Environment focuses

on equitable building electrification for health, sustainability, and a resilient San Francisco.

Buildings also comprise a significant portion of the city's emissions at almost 44%,

and the department does not receive significant general funds to conduct this work,

so we are always trying to get external funding to expand the city's climate capacity.

So a little bit about the Tech Clean California Quick Start Scaling Grant.

This is a state program funded by the California Public Utilities Commission through rate period dollars

and administered by SoCal Edison.

Energy Solutions is the implementer or pass-through agency.

And what this grant aims to do is test innovative approaches to overcoming market barriers,

to heat pump space and water heating in underserved communities,

again speaking to the department's equity priorities.

And the benefits of these pilots are to refine intervention

that can potentially be scaled statewide.

So the Environment Department's project,

Clean Air and Repair for Family Child Care,

helps establish a model for layering electrification projects

on existing rehabilitation programs

that are typically like-for-like replacements

and using a fuel replacement or electrification model instead.

So over 2026, the department will partner with the Low Income Investment Fund

to provide heat pump water heater installations

in up to 30 family child care provider facilities.

And just to note, this is a child care model

in which the provider offers child care out of their home

as part of renovation and repair projects

through LIFT's existing child care facilities fund.

And the department will incorporate a standard heat pump substitution measure

into LIFT's Family Child Care Renovation, Repair, and Expansion Grant Program,

as well as provide training and risk-free installation opportunities

to contractors who currently complete like-for-like appliance replacements.

So in terms of why this is important,

the city has a high priority on families and children,

and so we have all heard of the health impacts of gas appliances in homes

and especially on health conditions such as childhood asthma.

So this helps address those childhood health conditions linked to poor air quality caused by gas appliances.

It also prepares contractors within the city for regulations that require heat pump water heaters,

expanding San Francisco's green workforce, especially in light of local regulations such as the air district rules.

And then it ensures underserved communities are not locked out of the benefits of electrication,

including improved occupant health and comfort.

And finally, as I said before, it pilots an electrification layering model

that could be applied to other existing rehabilitation programs

in alignments with the goal of testing models that can be scaled statewide.

So this is just a quick summary slide.

The grant amount is for $299,091.

The grant term is from January 2026 through March 31, 2027.

although I will note that all installations must be completed

by December 31, 2026, and all associated fieldwork,

and then the term after that from January to March

will be reporting that must be completed.

And that is it.

Happy to answer any questions.

Roughly how many sites would this cover?

So it's up to 30 child care facilities.

Great. Thank you.

Thank you, Chair Chan.

I'm excited about this program.

What is the plan to get the word out, making sure you get those applications,

I think the installations by the end of the year?

Sure.

So you can move quickly on that.

I'll let our implementing program team member, Benny, answer that question.

Yeah, thanks for the question, Supervisor.

My name is Benny Zink, Billing Decarbonization Coordinator with the department.

We had an initial overview and orientation for providers last week where we had 90 attendees,

so we're expecting very high participation and sign-up,

and we have a follow-up detailed orientation on the 23rd of this month.

Good. Sounds promising. Thank you.

Thank you. Let's go to public comment on this item.

Yes, we're opening public comment for item number 10.

If we have any members of the public who wish to address this committee.

Madam Chair, we have no speakers. Seeing no public comments, public comment is now

closed. Colleagues, I would like to send this item to full board with

recommendation and a roll call please. And on that motion, do we refer this

resolution to the full board with recommendation? Vice-Chair Dorsey? Aye.

Dorsey, aye. Member Sautter? Aye. Sautter, aye. Chair Chan? Aye.

Chan, aye. We have three ayes. The motion passes. Thank you.

And Mr. Clerk, could you please call items 11 through 13 together?

Yes, items 11 through 13 are resolutions approving and authorizing the terms and conditions

and authorizing the general manager of the Public Utilities Commission and or director of property

to execute purchase and sale agreements and easement deeds with the following

for the acquisition of easements for a subservice sewer tunnel under and across portions of certain

Assessor's Parcels in San Francisco. Hall 3, effective on the date of the respective purchase

and sale agreements, are executed by both parties pursuant to the Charter, adopting findings that

their conveyance is consistent with the general plan and the eight priority policies of the

planning code, and adopting findings that the purchase and sale agreements furthers a proper

public purpose sufficient to meet the Administrative Code's market value requirements.

Item number 11 is with Katie O. Chang for the acquisition of a 9.2-square-foot easement at 491 Gavin Street for a total amount not to exceed $2,500.

Item number 12 is with Robert Tsui and Tui-Anne Lai Tsui as trustees of the Tsui Family Trust for the acquisition of a 298.2-square-foot easement at 495 Gavin Street for a total amount not to exceed $25,000.

And item number 13 is with Wayland Way Hall et al.

For the acquisition of a 693-foot square easement at 499 Gavin Street for a total amount not to exceed $32,000.

Madam Chair.

Thank you. And today we have SFPUC here.

Hi, my name is Dina Brazil. I'm the right-of-way manager for the infrastructure division at the SFPUC.

I'm here today to seek your approval of three purchase and sale agreements for the acquisition

of easements for a subsurface sewer tunnel for the Lower Alamany Area Stormwater Improvements

Project.

First a bit about the project itself.

The Lower Alamany Area lies within the Islayas Creek Basin, which has historically flooded

during large storms.

Development in the area has exacerbated the flooding problem, as you can see in this photo

here.

Our existing stormwater system doesn't have adequate collection capacity to meet the needs of the area,

so we developed the project to address our CISIP level of service goals of managing stormwater during a five-year, three-hour storm.

The project complies with a 2021 California Regional Water Quality Control Board cleanup and abatement order

requiring remedial action on the part of the city to abate threats of sewer overflows

in certain low-lying areas of San Francisco, including the lower Alamany area.

The project proposes to construct the Alamany auxiliary sewer depicted here in red.

The sewer would consist of approximately 6,350 linear feet of a 10-foot diameter tunnel

running along Alamany Boulevard and Gavin Street and turning north at Bayshore to Boutwell.

At Boutwell, it turns into a box sewer for the remaining 1,000 linear feet,

where it ultimately connects to the industrial sewer at Barnbelt.

The primary benefited area is shown here in green.

The project would also provide ancillary benefits to the Cayuga area, shown in blue.

For the most part, the Alamany Auxiliary Sewer manages to avoid private property, staying mostly within public city streets and Caltrans right-of-way.

The tunnel does, however, cross private property at one location at the western end of Gavin Street.

As you see here, the tunnel would cross beneath the driveways of three residential properties.

It's important to note that the tunnel will be installed by horizontal directional drilling,

which is a trenchless method with minimal impact.

The tunnel would be over 50 feet deep at this location,

and there would be no change to how the property owners would use their property.

While the SFPUC wouldn't require the use of the surface of the property,

we do need a property right in order to install the pipeline on the properties.

Our engineers determined that we require a 25-foot-wide right-of-way to operate, maintain, and protect the tunnel.

We made offers to each of the property owners and successfully negotiated purchase and sales agreements with each, which have all been signed by the sellers.

The first easement to be acquired, shown here on 499 Gavin Street, is the largest of the three.

The total square footage of the easement would be 693 square feet, and the negotiated purchase price is $32,000.

The next at 495 Gavin Street would be approximately 298 square feet.

We negotiated a price of $25,000 for this easement.

And finally, the smallest of the three is at 491 Gavin Street, and it would be about 9 square feet.

The purchase price would be $2,500 for this easement.

On March 25th, 2025, the San Francisco Planning Department determined the project is categorically exempt from CEQA,

and on September 10th of 2025, the Planning Department filed a notice of exemption at the county clerk's office,

which was subsequently posted at the state clearinghouse on September 11th.

And now I'm happy to answer any questions you might have about the easements or the project.

Vice Chair Dorsey.

Thank you, Chair Chen.

Just for my edification, a five-year, three-hour storm is a storm that we could expect,

we could reasonably expect every five years that lasts for three hours.

Our project manager, Suzanne Huang, is the one that's well-versed in that topic.

Go ahead.

Good morning.

Suzanne Huang, project manager.

Five-year, three-hour storm translates to about 1.3 inches of rainfall,

and that is the level of service storm that SFPUC used for our design storm.

Okay.

The framing of it as a year event is that my understanding of this,

just because I recall these back in my city attorney days

when we have litigation and claims around flooding events.

Sometimes there's a reference to what the years mean.

Is it a five-year storm is something that we expect every five years?

On average.

Okay.

Yeah.

Okay.

Thanks.

Thank you.

Seeing no names on the roster, let's go to public comment on this item.

Yes, we're opening public comment for these items 11 through 13.

If we have any members of the public who wish to address this committee.

Madam Chair, we have no speakers.

Seeing no public comment, public comment is now closed.

Colleagues, I would like to make the motion to move these three items to full board with

recommendation and a roll call, please.

And on that motion, do we refer all three resolutions to the full board with recommendation?

Vice Chair Dorsey.

Aye.

Dorsey, aye.

Member Sauter.

Aye.

Sauter, aye.

Chair Chan.

Aye.

Chan, aye.

We have three ayes.

The motion passes.

I am going to move this capital to Vice Chair Dorsey.

And if I may be excused for the remaining of the meeting,

and I will have you call the remaining of the other items.

Thank you, Chair Chan.

I would like to make a motion to excuse Chair Chan.

And on a motion, we excuse Chair Chan for the balance of this meeting.

Vice Chair Dorsey.

Aye.

And Dorsey, aye.

Member Sauter?

Sauter, aye.

Mr. Vice-Chair, we have two ayes.

Thank you, Mr. Clerk.

The motion passes.

Mr. Clerk, could you please call item number 14?

14 and 15, Mr. Vice-Chair?

14 and 15, I apologize.

Item numbers 14 and 15 are resolutions reauthorizing the execution and delivery of tax-exempt lease revenue commercial paper certificates of participation

and taxable lease revenue commercial paper certificates of participation

to finance the costs of the acquisition, construction, and rehabilitation

of capital improvements and capital equipment approved by the Board of Supervisors and the Mayor

on offering memorandum, dealer agreements, and certain other related financing documents

and authorizing other related actions.

Heighton number 14 reauthorizes the execution and delivery of tax-exempt lease revenue

commercial paper certificates of participation series 1 and 2, and taxable lease revenue

commercial paper certificates of participation series 1T and 2T, in an aggregate principal

amount not to exceed $150 million, authorizing the delivery of an alternate credit facility

in the total stated amount of $163.5 million, and approving and authorizing the execution

of a third supplement to the trust agreement, a third amendment to site lease, a third amendment

to sublease, a letter of credit and reimbursement agreement, and a fee agreement.

Item number 15 reauthorizes the execution and delivery of tax-exempt lease revenue commercial

paper certificates of participation series 3 and 4, and taxable lease revenue commercial

paper certificates of participation series 3T and 4T, in an aggregate principal amount

not to exceed $100 million, authorizing the maintenance of a liquidity facility in the

total stated amount of $109 million, and approving and authorizing the execution of a second

supplement to trust agreement, a third amendment to site lease, a third amendment to sublease,

an amended and restated revolving credit agreement, a revolving bank certificate,

and an amended and restated fee agreement. Mr. Vice Chair.

Thank you, Mr. Clerk. We have Mr. Grant Carson from the Debt Capital Market Specialist of the

Comptroller's Office of Public Finance.

Mr. Carson, the floor is yours.

Good morning, Supervisors.

Pleasure to be speaking with you here today.

As mentioned, the presentation covers item 14 and 15 on the agenda, two resolutions which,

if approved, would reauthorize the city's existing general fund commercial paper program,

not to exceed principal amount $250 million.

The resolutions would also approve two new bank credit facilities supporting the program.

The city's general fund commercial paper program was first authorized in 2009 and has since

been expanded and reauthorized several times.

For brief background, commercial paper notes are short-term debt instruments, and the city

primarily uses this program to provide bridge financing for projects authorized for long-term

certificates of participation or COP financing.

Duration for commercial paper notes ranges from 1 to 270 days.

interest begins accruing on the issuance date and then through the maturity date,

whereupon the principal and accrued interest can be rolled or refinanced into new notes,

essentially allowing for balances to be rolled forward until they can be refunded by a long-term COP issuance

or paid down directly by the city.

Like most other municipal and corporate commercial paper programs,

the city's program is supported by bank credit facilities,

which provide backstop liquidity to ensure that notes can be repaid in the case of severe market disturbance.

when new notes can't be remarketed.

Although I'll note, to date, the city has never had to draw on its credit facilities.

And then on this page, we have the current existing bank facilities supporting the program.

Series 1 and 2 is supported by a $150 million revolving credit agreement, or RCA, with Wells

Fargo, which expires in March.

Series 3 and 4 is supported by a $100 million RCA with BMO Bank, which expires in April.

that both these facilities are expiring in the fall of 2025 the office of public finance conducted a

competitive rfp process to replace the two facilities on the left we have results for series

one and two five responses were received and td securities was selected as the top scoring firm

based on number factors including the bank's credit ratings experience and its proposed fee

the proposed agreement for series one and two is 150 million dollar letter of credit or loc facility

with a term of three years.

For Series 3 and 4, also five responses were received,

and BMO Bank was selected as the top-scoring firm

for similar factors as I already described for Series 1 and 2.

This would be a $100 million RCA facility,

also with a term of three years.

And then just closing on the timeline before you today,

at Budget and Finance on February 11th,

assuming a positive recommendation,

the full board could consider these resolutions

at its February 24 meeting.

If approved, we could then achieve financial close

on the new facility agreements in early March.

Thank you for your time.

Happy to answer any questions you may have.

Thank you, Mr. Carson.

We'll hear from the budget and legislative analyst.

Items 14 and 15 are two resolutions

that reauthorize the city's commercial paper program.

One resolution authorizes an agreement with BMO and one with TD,

two banks that scored the highest on an RFP process that was administered by OPF.

In total, they'll provide the city with about $250 million of short-term credit.

Each agreement would have a duration of three years, and the city's going to incur costs of

about $750,000 to get the agreements in place, and then annual costs of about $1.6 million to

maintain access to that borrowing capacity. We show the projects that are

currently accessing the commercial paper on page 37 of our report and we

recommend approval of item 14 and 15. Great, thank you Mr. Menard and thank

you Mr. Carson. I don't have any questions and I don't see anyone on the

roster. Mr. Clerk, can we invite a public comment? Yes, we are now opening public

comment for these items 14 and 15 if we have any members of the public question

address this committee mr. vice-chair we have no speakers thank you mr. clerk

public comment on these items is now closed and I would like to make a motion

to send items 14 and 15 to the full board with our positive recommendation

and on that motion that we refer to both resolutions of the full board with

recommendation vice-chair Dorsey aye and Dorsey aye member solder solder I mr.

Vice-Chair, we have two eyes with Chair Chan excused.

Thank you, Mr. Clerk.

The motion's passed.

Mr. Clerk, do we have any further items before us today?

Mr. Vice-Chair, that concludes our business.

Thank you, everyone.

We are adjourned.

Thank you.