Good morning.

The meeting will come to order.

Welcome to the March 11th, 2026 of the Budget and Finance Committee.

I am Supervisor Connie Chan, Chair of the Committee.

I'm joined by Vice Chair, Supervisor Dorsey, and Supervisor Danny Sauder.

Our clerk, it's Brent Halipa.

I would like to thank Jeanette Acknet off.

My apologies from Esacov 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 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, it 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 will not require 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 for your name 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 A L I P A at SFGO V dot ORG.

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

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

Postal Service to our office in City Hall at one.

Dr.

Carlton be good at 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 March 17th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

And uh before we call item number one, we'd like to just remind the public that we have budget and legislative analysts report for item five on today's agenda.

And so for that item, we will have the department presentation first, followed by the budget and legislative analysts.

Then we will take questions and public comment.

With that, Mr.

Clerk, please call item number one.

Yes, item item number one is an ordinance amending the health and business and tax regulations codes to revise the definition of a food 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 wave 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 to require that 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.

Colleagues, um Supervisor Fielder, while she has requests uh for continuance for one more week to our March 18 meeting uh agenda.

While I do want to respect her request, um uh knowing that this legislation's been continuing for at least a couple weeks.

Um for the also for the reason that I wanted to make sure that for any fee um because of the posting requirement, um, I would like to have a date certain continuance, um be it to the next meeting or a date certain uh should there um be an agreement between Supervisor Fielder and the Department of Public Health through the uh facilitation uh from the mayor's office.

Um with that said, uh I am in agreement to continue for one more week to March 18.

But I certainly want to urge Department of Public Health, Supervisor Fielder, and as well as the mayor's office to really come to some agreement on this legislation by March 18.

Either we continue to a date certain so that we can amend accordingly, or that we then will either duplicate the file and figure out potential amendment uh at a later date, or that we uh be able to amend to have amend uh amendment on March 18 to allow this to go through and have a separate trailing legislation uh to address the issue.

So those are my intention uh for March 18 for and and the things that I would like to see um as chair of this committee uh by March 18.

And with that, Mr.

Clark, please um go to public comment on this item.

Yes, we are opening public comment on item number one.

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

Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

Colleagues, I would like to move to continue this item to our NICS budget and finance committee meeting on March 18 in a roll call, please.

And on that motion that we continue this ordinance to the March 18th meeting of this committee.

Vice Chair Dorsey.

Dorsey, I, Member Sauter.

Sorter, aye.

Chair Chan.

I.

Chan, aye.

We have three ayes.

The motion passes.

Thank you, colleagues.

Um Mr.

Clerk, please call item number two.

Yes, item number two is a resolution retroactively authorizing the city and county to accept and expend a grant of approximately 1.4 million from the California Department of Health Care Services for participation in a program entitled Capacity and Infrastructure Transition, Expansion and Development or cited round four program, intergovernmental transfer IGT, part of the California Providing Access and Transforming Health Initiative, authorizing the city to release all claims against DHCS and its third party administrator arising out of or relating to the receipt of grant funds and or activities associated with the grant program, approving the grant agreement between the city, acting by and through the Department of Public Health and the Cal DHCS for the purpose of providing support to help San Francisco Health Network implement uh community supports and enhanced case management programs as part of the California Advancing and Innovating Med Medical for a term of one year from January 1st, 2026 through December 31st, 2026, and for a total not to exceed amount of approximately 1.4 million, approving the grant agreement pursuant to the charter and authorizing the Director of Health to enter into amendments or modifications to the grant agreement that do not materially increase the obligations nor liabilities to the city that are necessary to effectuate the purposes of the grant or this resolution.

Madam Chair.

Thank you.

And today we have the uh San Francisco Health Network.

Thank you.

Uh good morning, Chair Chan, Vice Chair Dorsey and Supervisor Souter.

My name is Alex Boyer.

I'm an administrative analyst with the San Francisco Health Network.

I'm before you today to present a retroactive grant, accept and expend for providing access and transforming health or PATH, capacity and infrastructure transition, expansion, and development cited.

So together PAS CITED round for intergovernmental transfer or IGT.

This grant is funded by the California Department of Healthcare Services and is for a total amount of $2,749,000, $600 $749,633.88.

Of that total amount, uh SFDPH will provide half or $1,374,816 and 94 cents as in IGT.

The grant term runs from January 1st, 2026 through December 31st, 2026.

PASS CITED is a grant program that provides funding to enable the transition, expansion, and development of community supports and enhanced care management programs as part of Cal AIM.

More specifically, this grant is providing funding for implementation work on uh DPH's electronic health record system called EPIC for new community support programs.

It's also providing funding for integrating EPIC with software used in the jail to support the Cal AIM Justice Involved initiative.

There's additional award money for EPIC license fees attributable to the new community supports and enhanced care management programs.

And additionally, we were awarded some salary reimbursement for DPH staff who worked on setting up the new community support and enhanced care management programs under CalAM.

Finally, there is some additional funding for setting up asthma remediation as a new community support program.

Receiving retroactive uh authorization to accept this grant.

The project period for this grant began January 1st, 2026 and goes through December 31st, 2026.

DPH received initial notice of this grant award on November 18th, 2025, and we received final approval of the budget from the grant or DHCS on January 16th, 2026.

After this projected start date, uh DPH brought this item to the board after going through the fiscal approval process, including controllers office review and approval.

We retro or we respectfully request retroactive approval of this item.

Thank you, and I'm happy to answer any questions.

Thank you.

I don't see naming any name on the roster.

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

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

Madam Chair, we have no speakers.

Seeing no public comment, public comment is now close.

Colleagues are to um before I move this forward.

Um I do actually have one more question.

Um the retroactivity is for January 1st of this year through end of calendar year.

Correct.

And what is um going to be the term of the grants beyond and end of the year?

It the grant term ends uh December 31st, 2026.

And will then is it are we in the process of continuing to apply for the grant?

And we have already applied and been awarded the grant.

Beyond beyond the calendar year.

No, it it ends at the end of this calendar year will we be will there be available for us to uh apply for the grants again and for the next calendar year or for the next calendar year, potentially continuance.

Unfortunately, um this is the end of this grant program.

It was part of um California's 1115 uh waiver that was part of CalM that expires at the end of 2026.

Understood.

Thank you so much.

Welcome.

Um colleagues, I would like to move this item to a 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.

I Dorsey, I, Member Sauter.

SONDER, I, Chair Chan.

I.

Chan, I.

We have three ayes.

The motion passes.

Thank you.

And Mr.

Clerk, please call item number three.

Item number three is a resolution retroactively authorizing the Office of the Treasurer and Tax Collector to accept and expand the grant in the amount of three million from JP Morgan Chase Bank NA for implementing the Stop Scams SF program from December 15th, 2025 through December 14th, 2028.

Madam Chair.

Thank you.

And we have Office of the Treasurer and Tax Collector.

All right.

Good morning, supervisors.

My name is Nicole Agbayani.

I'm the director of the Office of Financial Empowerment within the Office of the Treasurer and Tax Collector.

I'm joined this morning by my colleague Eric Menke, our policy manager within the Treasurer's Office as well.

I'm here to present for your approval a resolution authorizing our office to accept and expend a grant of $3 million from the JP Morgan Chase Foundation.

This funding will support Stop Scams SF, a new city-led strategy to stop fraud and protect San Franciscans.

Just to briefly introduce our team before I jump into the grant.

We are once again the Office of Financial Empowerment.

We sit under the umbrella of the Treasurer's Office.

Our work is to support the economic security and financial inclusion of all San Franciscans, and we spend a lot of our capacity thinking about low-income folks here in the city.

We work alongside our sister project, the Financial Justice Project.

Their work is to assess and reform fines and fees that are impacting low-income San Franciscans.

And very soon we will be redoubling down on our efforts and launching as a unified group under a new name, the Economic Justice Center.

And our work will be unified, and our mission going forward will be to turn the powers of the treasurer's office into tools that help San Franciscans build savings, reduce their debt, and keep more of what they earn while eliminating unjust fine and fees and protecting people from predatory financial practices.

So you can imagine alongside this work that we do, scams and fraud have been a growing concern for us as we think about the personal finances of San Franciscans.

In the Treasurer's office as a whole, we're seeing scams come up in our work around tax collection and feeling a need to prevent spoofing of our collection efforts.

And I'm sure like everyone in this room has gotten a scam call, a scam text or a scam email sent to them personally.

And so I'll say that our office and San Franciscans are not alone in seeing this trend.

The data that I have up on the slide is national data about the impact of scams.

The last complete data set was from the year 2024.

Americans during that year saw a loss of two and a half billion, 12.5 billion dollars to fraud.

And more staggering still is that it was a 25% increase over the previous year in 2023.

I think when a lot of us think about scams and fraud, we think about the impact to our elders in the community most of all.

And you can see on the data here that elders do lose the most in terms of financial losses.

But we were surprised to learn in our office that actually young people are the most impacted by volume of scams, with 44% of younger adults reporting a financial loss due to fraud.

So almost half of our young people.

And the idea here is to provide a comprehensive roadmap to San Franciscans all the way from prevention and education through to remediation for folks who have been victimized by these issues.

The effort will prioritize prevention, rapid alerts, and trusted support.

We especially want to focus in on those communities, like I mentioned, that are most likely to be targeted, but also least likely to report the issues.

And some of the strategies you can see listed on the slide here that we plan to deploy include scam alerts.

So with this one, when we learn of scams that are impacting local community, we want to disseminate scam alerts through a rapid response communication network.

We're developing multilingual educational tools to teach community members how to spot a scam and then how to protect and safeguard their personal finances.

We want to develop scam proofing strategies for city communications.

We can start with our own office when it comes to this, but then plan to share a best practices toolkit with the rest of the city family.

Like I mentioned, we already have a robust financial counseling program, and so we would plan with this to integrate into the financial counseling program, a scam prevention and remediation into engagements with clients.

And then lastly, if folks are unfortunately victimized by scams, we want to have really detailed and comprehensive guidance for them on how to respond, how to report, and how to safeguard their personal finances moving forward.

And the last note I'll make on this is that we want to recognize that there's already really great efforts around the city underway from the San Francisco Police Department, as well as the Office of Cybersecurity in this space.

And so the work that we intend to do with Stop Scams and this grant is meant to be additive and supportive to help to fill gaps where they might exist.

So to undertake the work, we have already applied for and we have been awarded a $3 million grant from the JP Morgan Chase Foundation.

The funding will cover the development and implementation of the new initiative over a three-year span.

It will help us with the research and development of the initiative, the launch for the public, continuing to test, iterate and improve, and then finally, like I mentioned, we want to scale and make sure we have those best practice toolkits to sustain and build on the work.

The funding uses will be to help cover our staff time, although no new positions are created with the grant.

It will cover professional services such as the support of a communications consultant, other programmatic costs like funding community workshops, and then operating costs to the department.

And then the last note is this is a retroactive approval to align with the grant start date, which was December 15th, 2025.

To date, our office has not spent any of the funding for the grant, and we don't intend to spend until after the resolution is passed.

That's all that I have.

Thank you for your consideration, and I'm happy to answer any questions.

Do you have a sample sort of example?

I should say example of the scam.

Mm-hmm.

Yeah, so one of the ones that we've seen in our office as the tax collector is folks that are essentially faking as a tax collector.

So they create communications, send them to taxpayers, acting as if they are tax collector, and then seeking to have those funds be sent over to the fake entity versus our office.

And you know, we've seen with AI in particular that the scams are proliferating, they're getting better and better.

And so part of this initiative is really going to be that on the ground training to community members to hold up examples and try to train to say, let's look for these kind of key features of how to spot this as a scam.

That's just one of many, though.

There's we're just at the beginning of this kind of research of finding out what that universe is.

And then what is the difference of the type of scams between for young, younger adults versus seniors?

Sure.

It's it's a really wide difference.

So with our young people, um, what we've found, we've talked to some of them in focus groups so far, and what we found is a lot of them are being scammed through social media.

Yeah.

The types of scams that they are being victimized by are a lot around that point moment that they are in life where they just have their first kind of financial freedom.

They're looking for things like applying for an apartment or applying for a job, and the things that are being sent to them are fake, and scammers are using those as a way to extract funds from the young people.

Um so the the volume of it is really high.

And we've seen some research from consumer action that shows that once folks have been victimized by a scam, they can be more likely to be victimized in the future too.

So we really want to nip it in the bud.

Um does that involve like also ID theft?

Yeah, so that's identity theft is definitely something that's out there when we think about our young people, they have a lot of their lives that are published out there online as well.

Yeah.

Um, so that's a piece of it for sure.

Um, identity theft is one that our financial counselors have helped folks with already.

Um, and so with that one in particular, when I talk about kind of um having this be like a trusted support network, one of the things that you have to do if you've had your identity stolen is to actually go in person to report that to the police.

And so, with a lot of these vulnerable communities, particularly when we think about the immigrant community or youth, they may not feel as comfortable to walk into a police station.

Um, and so in that instance, having our financial counselors actually be there to walk alongside them, go in and help them to successfully file that police report is a really big gap that we're excited we can already do, and we hope to scale up even further with this initiative.

Understood.

And um clearly there's partly this is like prevention.

But then I see that you also um mentioning that you provide support for victims.

What does that support looks like?

We're still building it out, um, but one of the things that we have found as we get deeper and deeper into this topic is that there are you you really need this roadmap because scams take so many different forms.

And what we haven't been able to find in all of our search and with all of the agencies that are doing a lot around prevention and education pre-scam is what that roadmap might look like after folks have been scammed to help to recover and remediate.

Um there's a number of different things besides that police report where you're suggested to go to file, you need to interact with your bank, and then on top of it, there's different layers about how your payment might have been made.

So there's a different path you need to take, for example, if it was a credit card you used, or if you paid someone with Venmo or PayPal.

And so all of that, you know, we we're we're just mapping out what that roadmap would look like now, and we want to share that level of guidance for folks because we actually haven't been able to find that anywhere so far, and so we see a real gap in having kind of that comprehensive and really easily searchable guide instead of asking folks who have already been victimized to go out and chart that course for themselves.

Has there been a conversation between the Office of Treasurer and collective collect tax collector off uh and with the district attorney's office consumer for all units?

We we haven't gone out to too many of our city family yet.

We have so far engaged with SFPD, and we're learning mostly about the outreach efforts that they're doing and the specific scams that they're really concerned about, so that we can try to tailor that toolkit.

Um, but like I mentioned, it's pretty new for us too, and so we're really in that research and development phase.

Um, when we do go out to reach out to city family, we want to think about definitely folks on the enforcement side.

We want to think about the city agencies that can help us to be really trusted conduits to get to the vulnerable communities where we might not have as strong relationships ourselves.

And then most importantly, other departments similar to the tax collector that are really victimized by the spoofing, um, like you know, PUC, for example, with utility bills, the courts when it comes to fake jury summons.

And so we'll have a separate conversation with them about how we can partner and help to really safeguard the different taxpayers and constituents that they serve.

Yeah, I certainly want to strongly encourage you.

I sorry, my apologies.

I certainly want to I'm gonna finish this comment.

I certainly want to strongly encourage you to actually coordinate with the district attorney's office.

They do have consumer fraud units that um in coordination with the victim services that they provide.

Um I think that then your dollars of three million will go much further with that coordination.

Um the victim service units also by the district attorney's office, also with the expectation that they have the language capacity being able to provide you that uh either uh guidance or support um and certainly uh be able to coordinate with victim services that eventually the hope is also holding um people accountable um for for committing the fraud against um against uh uh San Francisco residents and most certainly of our Office of Victim Services in general, that newly established.

I know that there's a lot of focus on human trafficking and sexual assault, um, but I I certainly think that it's it's a worthwhile conversation to be had uh in a much more coordinated fashion.

Um Supervisor Souter.

Thank you.

And I just want to say I'm glad to see you taking this on.

I think it's something that will only continue to be a bigger and bigger problem in the years ahead, and it's getting more complicated because of AI.

And it's something that maybe we've historically thought of as something contained to just seniors.

Um but I think as you illustrate with the data, there are particularly youth are also exposed to this.

And um, you know, that being said, uh I know that like organizations that work in in all of our districts like self-help for the elderly have have done an incredible job of um starting their own trainings and programs.

So I I know that and I hope that you'll work with them to learn what they've done and and uh move quickly out of the research phase to you know get in front of in front of our residents.

So thank you.

Thank you.

And uh with that, let's go to public comment on this item.

Yes, if we have any members of the public who wish to address this committee regarding this item number three.

That was your opportunity.

Madam Chair, we have no speakers.

Seeing no public comment, public comment is now closed.

Colleagues 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 Sauter.

Sauter, aye, Chair Chan.

Aye.

Chan, I.

We have three ayes.

The motion passes.

Mr.

Clerk, please call item number four.

Yes, item number four is a resolution authorizing the mayor's office of housing and community development to execute the standard agreements with the California Department of Housing and Community Development under the Affordable Housing and Sustainable Communities Program for a total award of approximately 47.5 million, including 35 million dispersed by Cal HCD has a loan to Mercy Housing California 109 LP for a 100% affordable housing project at 1939 Market Street, and approximately 12.5 million to be dispersed as a grant to the city for public transportation improvements near 1939 Market Street for the period starting on the execution date of the standard agreement through December 10th, 2080, and authorizing Mo CD to accept and expend the grant of up to approximately 12.5 million for transportation streetscape, pedestrian improvements, and other transit-oriented programming hand improvement as approved by Cal HCD.

Madam Chair.

Thank you.

And I want to acknowledge our board president, Rafael Mendelman, it's here and would like to see if he would like to start with some opening remark on this item.

Thank you, um, Madam Chair.

And um I am uh strongly supportive of this item as evidenced by my uh co-sponsorship of it.

Um the district that I represent um has been characterized by uh second highest level of uh displacement um uh no fault evictions over many years, second only to District 9.

Um, we early on in my time on this board, we did a district eight uh affordable housing survey, and um you know saw what we already kind of knew, which is that that very high level of displacement often hits older um long-term uh rent controlled uh residents, um, disproportionately hits LGBT residents.

We have some legacy uh development, but uh we've seen very little of it over the last um 10, 15 years.

An exception to that has been the LGBT affirming senior housing that has been done by um Mercy and Open House working together, and so um a number of years ago uh when we learned that there was the opportunity to buy this site um and see it uh developed with a uh significant affordable housing um development along the lines of what had happened at 55 and 75 Laguna.

Um we um we uh I was very supportive of that and urged the mayor to um allocate the funds to make that happen.

It did happen.

We've been waiting many years uh to get as close as we are now.

Um this piece of legislation moves us closer.

Um I do have a couple of concerns um about the project and um uh have talked with them uh uh you know with uh the developers and with MOS CD.

Um you know, we'll probably have a little conversation about that after the presentations, but um this is uh important project, and I hope we continue to move it forward.

Thank you.

And we will have the mayor's office of housing and community development.

Though I think Supervisor Dorsey might be in the queue, too.

Oh, no problem.

I just vice chair Dorsey.

Sure.

So I just wanted to express uh my appreciation for everyone's um work on this, and I think um, even though it's it's actually just a few blocks out of my district, but it's but as um a gay man who was uh you know aware of um the fact that we have uh an aging population and especially um people with living with HIV who often have unique uh challenges um as they're aging.

I really appreciate um this kind of project.

We need more of them, and I'd have to I'd like to be added as a co-sponsor.

Thank you.

And with that, Mayor's Office of Housing and Community Development.

Good morning.

Uh my name is Matt Graves.

I'm with Mo C D, Senior Project Manager, uh, and I'm here to speak about 1939 market.

Um as has already been kind of talked about, it is a unique project for Most C D because it is trying to target the needs, the unique needs of uh our aging LGBTQ population.

Um and so this is our response to that.

Uh the resolution before you though is actually about a bit of the financing that we need in order to build the building.

Um and so the resolution before you um it's for an award.

Uh the award is from the state, it's ASIC, and it's actually it has two components.

So it's 47 million dollars, but 35 million of that will go towards the construction of the site, and 12 million of it will go towards various agencies within the city geared towards like public infrastructure, transportation infrastructure and bike improvements.

Um the resolution requests authorization for MOCD to accept the grant for both the housing and on behalf of the various departments, so that will receive the transportation funds.

So 1939 market will have 185 affordable units and two manager units.

Uh there will be 106 units at our studios and 79 units that will be one bedrooms.

The development will make use of 75 SOS subsidies, which will uh which is a subsidy to assist senior households that are low income.

55 vouchers will also be used, uh, and that will be in coordination with the veterans office.

And then we have 40 lost units for homeless senior households.

Uh we also have plus housing program, which is not a subsidy per se, but it comes with some services.

Occasionally there's a subsidy, but it's really geared towards the population.

So it provides HIV positive services for the residents.

And Mercy has partnered with Open House to provide resident services, which we're particularly excited about given their established experience serving this exact population.

Um AMIs for the property will range from 30% to 60%, which is equivalent to an annual salary of about $32,000 to $65,000.

The building will also have 1,600 square feet of commercial space on the ground floor.

And initially that's going to be used by open house to provide those services.

So there'll be resident uh meeting rooms and social services provided there.

Uh in 2020, the city acquired the site at 1939 Market Street.

Uh the building had three tenants at the time, and they all re-signed their leases and they voluntarily waived the relocation benefits.

Mercy was elected in 2021 as a sponsor under Most CD's multi-site RFQ.

And by 2022, Mercy had filed an application to planning for entitlements under SB 35, which was approved in 2023.

Also in 2023, Mercy applied for MHP, which is another state program.

But they were denied due to like competitive reasons with their scoring.

Mercy applied again for ASIC in 2025 and was awarded later on that year, resulting in this resolution before you now.

Let's see.

And so this shows how we've assembled the financing for the building.

Allow Mercy to apply for 76 76 million dollars in TCAC Sidlac funds this year, which will be the final kind of tranche of funding that we need in order to start construction.

And I'll just highlight right here of all the sources, ASIC is like a significant portion of that.

It's 35 million of the total 172 needed.

And we're looking for an award in August of this year.

We'll be back before the board in December.

We have a ground lease that I'll be presenting on, and then of course the loan agreement as well.

We're looking at construction starting in February 2027 with about a two-year construction period, so it'll end in 2029.

And we'll start leasing or marketing and leasing about six months before.

That'll be really like the earnest uh leasing, but we've already started reaching out to community members and making sure they know of the project.

And I have uh Mercy here in open house as well, and they can comment more on those efforts.

Uh this slide shows what the 12 million will be going towards.

So uh it's going towards like right-of-way improvements, sensitive bikeway improvements, rapid bus transit improvements, and then also it comes with service um like social services provided.

And with that, this ends my remarks on presentation, but we have Mercy and Open House who can maybe address the comments beforehand.

Thank you.

Thank you.

I don't see any name on the roster as uh I appreciate frankly from the slide indicating that at the end, truly funding does matter.

You know, like whether we can um continue to have funding to fund um even an approved project.

It's important.

I I feel the same way about some of the project, frankly, on the west side, that's including uh 1234 Great Highway.

Um some of the affordable housing project that is um approved and just waiting for financing, and that's both frankly the affordable and market rate developments at this time.

Um so I really do appreciate the fact that like this is coming through with this dollars.

Um I'm excited about it.

Um President Mendelman.

Uh thank you, Madam Chair.

And we're not having a formal presentation for Mercy and Open House.

They're just here for questions.

All right.

Well, I'm gonna express my concerns and um and invite anyone from OCD or Mercy or uh Open House to address them.

The the need for this project is obvious.

Um, I spoke to that in my opening remarks.

Two concerns that I have about this project.

One is that it actually be queer.

And two is that it not be um so overburdened uh with that it not be overburdened by a mismatch between the needs of the population that lives in the building and the operating funds that are available to meet those needs.

Um on the first side, uh, on the queer of it all.

Um this is complicated.

It's a complicated conversation for us to have in this chamber.

We cannot legally, using the funding sources that we are using, create queer senior housing.

And the housing that was created at 55, and I apologize, 95 Laguna is not exclusively queer.

It is, I believe, majority queer.

Um, and I think that um, and that frankly was achieved through a lot of hard work by open house, especially open house, mercy as well.

And I think that, and that frankly was achieved through a lot of hard work by open house, especially open house, mercy as well, a lot of creative uh marketing, um, communications, um, the fact that HAPWA was a significant subsidy, that is housing for people with AIDS, um, the neighborhood preference uh that applied to the project.

There were many things with people working really, really hard that led to those buildings managing to stay.

I mean, I think one of them actually is below half queer or may have been below half queer at various times, but in general, um, I think we can look at the LGBT community and say we're we're making, you know, we are trying to deliver housing uh to meet the particular needs of that community in that neighborhood.

Um the exception to that was, and I understand may not still be, but was the PSH that was included in the second, I believe in the second of the two developments.

I don't remember where this came out in a SOGI hearing or how it came out, and we've often we did see in the SOGI hearings sort of consistent underrepresentation of the LGBT community in um various uh um HSH uh homeless programs, um which is peculiar because of the overrepresentation of the community in that population.

Um my strong memory is that those PSH units may have been all uh not queer at when when they were first filled.

And I think that has changed over time as people cycle in and out.

But it is entirely possible that if you turn these units over to PSH and assign them as they are going to be assigned through that process, that we are not going to end up with very many queer people at all.

This building leans in more heavily into PSH and VASH, which is also formerly homeless, I believe, um, by a lot.

More than half of the units in the building are going to be either PSH or VASH, which raises for me the concern that I just expressed, that we could end up with a building that is not even as queer as the basically half queer units we've managed to get through the other two uh open house Mercy projects.

That would be experienced, I think, by the queer community as a betrayal, as a disappointment and as failure.

Um I don't want that to happen.

I don't think it's good for the city, I don't think it's good for open house, I don't think it's good for Mercy.

And I want everyone to have eyes wide open and be very clear about how they're going to avoid that outcome with more than half of the units in this building.

The second concern that I have about this project is informed by the experience we've had over the last several years, as I think the city has pushed MOCD and our affordable housing developers to stand up as much PSH as quickly as possible without regard to whether there was actually the funding in the project to make those units and the folks living in those units successful.

I think Supervisor Dorsey has seen some of these projects in his district.

Supervisor Sauter may have seen some of these district these projects in his district.

Um have seen projects like that in their districts, although I cannot speak for them.

But there's a real risk that if we take the most acute people with the greatest needs, concentrate them all into a very tall building, 15 stories, and we don't have the level of subsidy available to actually meet their needs, that this building is going to be a problem not just for the surrounding community, but for the people in that building who thought they were getting a way to stay in San Francisco for the remainder of their lives.

Also, an outcome that would be viewed as a failure for the city, for open house, and for Mercy.

Now, right now, Mercy and Open House are working with what they got to get this project done, which is an operating subsidy program that is only available to permanent supportive housing.

And I've asked to have conversations with the head of with the mayor's chief, Kunal Modi, uh, as well as Dan Adams to figure out whether that's really what we want and need to do for these projects going forward.

And if that is what we want to do, if that LOSP subsidy is actually enough to really meet the needs of the folks coming off of our PSH lists.

But I would like to have this be a project that I feel proud of and feel proud of the contribution I made to getting it done.

And I do have those concerns.

So I don't know if anybody wants to try to make me feel better.

But I welcome welcome that.

I'd love to try to make you feel better about this.

Thank you, Mr.

Graves.

Really what we're talking about here is like going back to that slide that I presented with the different subsidies.

Different subsidies come with different ways of referring people to the project.

So as many as I showed, that's kind of how many we're dealing with.

So we've already reached out to the VA about the VASH vouchers.

They're very aware of what this project is trying to do for the community.

And they've been very supportive and excited about this.

In fact, they've made their own internal like policy changes needed to kind of foster uh this kind of building.

So they're prepared.

Um and we've been in in communication with them multiple times.

Um we also have if Mercy could come up and talk about their efforts with the other referral systems.

Um that would I think that would provide the detail that you're looking for there.

Um so if I have Sean from Mercy, who's also the project manager who can speak on that.

Yes.

Hi.

Thank you, supervisors.

Um I can be happy to break down uh the referral processes.

Um out of the 1870 units, uh 55 are VASH units, so those 55 units will be referred through the local VA.

Um in our conversations that Matt was alluding to with the VA, um they have noted that the priority uh target population through the VA are folks who are already housed, um stabilized and looking for a step up essentially into uh a more secure uh permanent situation.

Um so that's so far the idea for the priority targeted population to the VASH referral units.

Um as for the 40 LOSP units, um, those will come through um uh the HSH referral system, uh open house, which they can speak to this more is exploring the possibility of becoming an access point to ensure that uh the folks that we are getting are from the LGBTQ plus community.

Um one other option uh we have not yet explored with HSH, um, and we're currently undergoing uh the first iteration of this with our new project 1633 Valencia, which has been in operations for about three and a half months, um, is having half of the units, which is what we're doing at 1633 Valencia, uh, be referred through a another similar uh step-up program, um so that half of the folks in that uh out of the referrals, 40 LOSP units are also already stably housed, looking for a more um uh stable uh situation.

Um so those are you know a couple strategies um we're looking into employing to ensure that the uh funding that we have, the operating subsidy that we have is sufficient to meet the needs of the future residents at 1939 Market Street.

Um the other units, uh so uh that's another 90 units, 75 of which are going to be referred, all 90 of which are going to be referred through the Dahlia system.

75 of those units are going are through the senior operating subsidy, so um a most a new MOCD subsidy for seniors age 62 plus that uh helps us uh match up match their income uh between what rent levels they're being they're restricted at, which is 15 and 25 percent MOCD AMI uh and gives us the subsidy that difference up to 60 percent MOCD AMI.

Uh the other 15 units are the nine hopple units, which for this project um uh do not have an operating subsidy associated with them uh because there's no Hopwa vouchers currently available, and then there's six non-targeted unsubsidized units as well.

So that's the breakdown uh and kind of the strategies uh that we've been discussing going into each referral system and each subsidy.

Um I'll just add that um we're also working with two different kind of subsidies here.

So there's a subsidy that is kind of like um uh a check to go directly into your revenue line item.

There's another kind of subsidy that doesn't look at revenue per se, it actually looks at expenses.

And the gap in that's created by providing uh units to certain populations, like that gap can grow over time.

And so it's looking at what that gap is and is providing their amount based on that gap.

And so it's trying to answer this exact question.

Um that's another point that I would bring up.

Um so that's kind of the funding situation we're looking at for your second for your other point, how we lease up the building.

Um, I want to bring up um open house who specializes in this, but I'll just say that they are working with the community, uh, they're looking at having engagement manager, like a dedicated staff member to specifically look uh at the leaseup for this building.

Um they're also looking into um peer outreach, so we would have members of this exact community actually doing outreach to the community so they know who uh needs the units the most.

And then the next thing that we are focusing on is uh peer organizations.

So San Francisco has lots of peer organizations that we can work with who are already kind of tuned into this need.

So if um I could invite Maury up from open house, he can comment on the specifics of those three uh strategies.

Morning supervisors.

Um I wanna I want to just add on some of the subsidy um information that we're already meeting with the VA, and it's been pretty gratifying to hear how confident they are that most of those units um will go to LGBTQ folks based on need that they're seeing and uh particular around a high level of what I see as cultural competence in the department that is going to be tag teaming with us on this project.

Um we also have a meeting tomorrow to think creatively with the LGBTQ center on possibly doing a partnership around being an access point.

Um so we are starting to strategize already on some of the the issues that could impact these concerns.

Um I do want to kind of lay out um what's forming as an outreach and engagement plan for you.

Um, and this is great practice for me because I'm currently talking to donors about funding this because it is not a light lift and it requires resources in really difficult times.

Um before I just give you an overview of this plan, I want to shout out the open house community members here today.

If you can give a a wave.

Um this is the heart and soul of open house and folks who can talk to the experience of living in buildings that already have mixed subsidies and folks facing different likes circumstances.

Um they're the ones that can really have real life experience to share with you on that.

Um my job is a lot of fundraising.

And a couple things have risen to the top.

I've been at Open House's executive director for six months now, and two priority projects I see moving forward.

One is building out our advocacy and policy arm.

I cut my teeth in the AIDS epidemic.

We know what community organizing and action looks like, and we know the power of having voices of communities impacted at these meetings.

And there is a missing voice, I think, for older LGBTQ folks in the city and in Sacramento.

So that is one project that we are going full force to look for resources to get started at our organization.

I feel like if we don't have that, the next three years could flatten us, right?

I think that's true for a lot of community organizations.

The second top issue is occupancy and outreach and community engagement around 1939.

I'm not gonna sugarcoat it.

It's gonna be hard work.

And again, we're talking about an 18-month plan.

A few folks have raised their eyebrows when I say we need 18 months.

We need 18 months.

If we're gonna get the achieve the goal we want, we need boots on the ground.

We don't need the kind of outreach that has come to us.

You know, we don't need the kind of outreach.

Meet us over by our offices.

It's going across the city and working with our partner organizations and working with organizations we've never worked with before.

I think there's a way to get to what we want while respecting and working within fair housing guidelines.

Our plan is dynamic.

Open house has a hustle bone.

Not every organization can say that.

We have a history of producing.

We're not perfect.

There are some issues that President Mandelman has brought up that I think in hindsight.

There could have been some different strategies.

We have a different strategy now.

That's what we can do.

So let me just give you an overview.

This 18 month project is going to cost probably around 250,000.

It's all hands on deck.

It's creating an outreach and engagement strategy, not only with our current queer partner organizations, but with neighborhood associations.

We Hayes Valley Neighborhood Association has invited us in the next couple weeks to come to their meeting to talk about this project.

They have great excitement.

We want to work with the Castro Business District.

We want to go to clinics.

We want to go to churches that are queer affirming.

We want to talk with senior services.

We have a great partnership already with some of them, but we want to build that.

And we want to get this kind of roll out into the our friendly LGBTQ media.

We're going to create really simple, accessible tools for folks.

Clear and simple and queer and simple.

We want them to know the timeline.

We want them to see a sample application so they understand what it looks like.

We want to provide one-to-one support to sit down with folks who are interested.

And we want them to understand eligibility.

So tools are going to be simple with examples.

We're going to assemble a core team.

We're going to have a project coordinator.

And we are.

We're going to hire three or four community members who are leaders and can talk about life at Open House.

And we'll be highly trained in going through Dahlia and going through other systems, where to go and how to get the help they need.

Again, we've been already meeting with the VA team and feel really excited about them helping us meet the mark.

We have a lot of partner organizations, so we want to do we want to do 1939 events at those organizations.

We want what our community enjoys and needs.

We want food and drink there, and we probably want some good music.

We want to have our peers present and we want to have them available doing office hours along with our coordinator at different organizations throughout the city.

And we want to know who needs follow-up help.

We're going to build and track a list of interested community members.

So we're going to meet folks where they are to get help and support them through this process.

Leading up to the application opening up, we're going to have a team of 20 trained staff and volunteers with laptops, ready to get folks from our community in the application process fast, with completion, and maximize their chances of getting in quickly, whether it's the lottery or elsewhere.

What I want to say is it's not, well, you're all facing your own set of stresses.

Fundraising in this time, you know, I've been in ED five times.

This is the most challenging time that I you know that I've seen.

And we are prioritizing this.

And uh I think open house is an organization that has a strong reputation because of its outcomes.

And there's no guarantee on this, but I can tell you this is our top two priorities in the in the year coming forward.

So just so you know, the 18-month rollout would be us coming out loud and proud next Pride month next year, um, and having this 1939 campaign and rolling from there.

Thank you.

President Mandelman.

Yeah, um I'm or are you done, Mr.

Graves?

I am okay and thank thank you for um thanks to everyone uh who spoke.

Um I'm encouraged by open house's plan, and I think and I am hopeful um that the VA will stay true to its commitments over the next several years.

I would just note this is a federal agency.

Um but if they do, you know, those 55 units um, you know, or some large number of them could uh be available for queer people.

I think that the outreach work that open house is talking about could help ensure that the senior operating subsidy units um have enough queer people going into those lotteries that we don't end up with embarrassing outcomes.

Um I remain a little worried, both on the acuity side and on the queerness side about the loss units.

Um but I think that's a conversation that can continue over the next uh I mean it will continue while I'm in office, and I hope it continues under my successor, or maybe we'll get it all resolved.

Um but uh at any rate, thanks to everyone who's doing all this work.

I know it's super hard.

I know the funding sources are complicated and messy and hard to work with, and it's hard to do affordable housing and especially hard to do queer senior affordable housing.

And so for everyone who's trying to get that done, lots and lots of thanks.

Thank you.

I wanted to um, if I may add like a few nuggets of especially working with the VA hospital uh V8 um and just trying to have a better understanding.

Um, are there conversation um in discussion about prioritizing potentially Ryan White Act recipients, um, are there conversation about you know prioritizing um those who receive continuum of care subsidies from Medicaid uh in a combination of that, so that in the scoring of um prioritizing, I should say, um, in terms of either through the VA system or the Dahlia system, that you are prioritizing um and and being able to identify those as categories and criterias.

Um I'm not sure about the um in our conversations with the VA, I'm not sure how they are scoring or assessing, so I can find that out and let your office know.

Um, but I know that there is some kind of scoring um feature.

Are you aware of any?

Yeah, yeah, we'll get back to you on that.

Yeah, I I think that like given that how the federal government is changing the funding formula for Ryan White, meaning like you know, allowing only funding and allowing the city to reimburse for those who receive care um reside where they uh where they reside.

Um I I think that this is a probably a nexus about if we were to identify uh recipients both for the Ryan White care, uh Ryan Y Act care within the city's jurisdiction as well as having um you know of like affordable housing uh in San Francisco.

I think it's something that like it's worthwhile to have those conversations to identify the needs.

Um and that I I do understand you know there are certain restrictions, but I certainly think that Y and White Act recipients uh are really a a sort of the overlapping between federal governments and really um San Francisco residents uh among the LGBTQ community.

I think there gotta be an active effort to also again to um working with uh actually uh our local service provider uh and I really appreciate again you know having the um working with the LGBTQ Center and many other organizations, but I I definitely strong um partnership continues uh even through the Dahlia system on the local level as well, not just the VA system, but also Dahlia system that to prioritize those efforts and for identifying criteria that we can help to prioritize the community and identifying the people who are already on the list and and the lottery list.

Um thank you, uh President Mendelman for um sitting in and asking these questions.

Um my assumption is that we could open this for public comment.

Thank you for your work.

Thank you.

Let's go to uh public comment on this item.

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

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

Madam Chair, we have no speakers.

Oh, wait, hold on.

I guess we do.

Good morning.

Um my name's Lori St.

John Waldwin.

I'm a third generation native San Franciscan, and I happen to it happens to be my 71st birthday today.

Open house is a lifeline for me.

I am a resident of the Mercy Open House on 95 Laguna Street, and as a native daughter, I've invested my career tax money and building the city, and I just feel that it's imperative that there's a place for me and others to be reassured, a home to be, an investment of elder LGBQ folks here in the Bay Area.

And I just really believe that this is imperative for the city to support, and with the new project coming, um just it would just be wonderful to be able to have what we've been discussing to come to fruition.

And with that, I say thank you.

Thank you much for addressing this committee.

If we have any more speakers, if we could line up uh by the curtain so we don't have these awkward pauses.

Thanks.

Next speaker.

Okay, well.

Hi, good afternoon.

Thank you so much.

I guess super emotional when I talk about open house because for the simple fact that um I believe that it's allowed me a life that I could never imagine.

I am the statistic of the person who needs needed the help the most.

I am a transgendered woman who is my community, my family has been brutalized for so many years, and to have a safe place to just put my head on my pillow and know that I am in that moment the safest that I've been in many years.

I'd like you to imagine what security looks like for all of you.

And in the aspect of you know where it comes from.

I mean, you might have family, you might have parents, you might have community who support you.

Now imagine having all of that taken away, and you don't have any of it.

And then imagine that you wake up and you're 65 years old because it's gonna happen, it happens and it's scary.

And then imagine having that waking up 65 and trying to live on $800 a month.

Um it's a it's a hard reality of survival.

Now imagine what aging with dignity looks like to all of you.

It looks like to me that I have a community that I live with that is like-minded, that supports me for who I am, not how much money I have, not how much money I don't have, not you know, I am the statistic of I'm HIV positive, I'm uh uh uh a drug addict in recovery for the speaker's time has expired.

But thank you so much for addressing this committee.

And with no further speakers, Madam Chair, that completes our queue.

See you no more Papa Commons.

Public comment is now closed.

President Mendelman, what is your will on this item?

Uh I would ask the committee forward this to the full board with positive recommendation.

Vice Chair Dorsey, would you like to make the motion?

Sure.

Thank you.

Um, Madam Chair, I'd like to forward this to the full board with our positive recommendation.

Roll call, please.

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

Vice Chair Dorsey.

Aye.

Dorsey, aye.

Member Sauter.

Sawter, aye.

Chair Chan.

Aye.

Chan, aye.

We have three ayes.

The motion passes.

Mr.

Clark, please call item number five.

Yes, item number five is a resolution approving amendment number five between the city acting by and through the Office of Contract Administration and Universal Protection Service LP doing business has allied universal security services for unarmed security guard services at General Hospital, extending the contract by six months for a total term of February 15, 2023 through December 14, 2026.

Indeed and increasing the contract amount by 3.2 million for a new total not to exceed amount of 15.38 million, effective upon approval of this resolution, and to authorize OCA 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 Office of City Administrator here.

Good morning, Chair Chan and Supervisors.

I'm here this morning.

I'm Sophie Hayward, I should start.

And I'm here this morning on behalf of the Office of Contract Administration to seek a recommendation from you of approval to amend the existing contract with Allied University Universal Security Services.

And it would extend the term by six months to December 14th, 2026.

OCA originally entered into this contract with AlEd in February of 2023, and we've been back several times for amendments.

A first amendment was executed in March of 2024 to increase the not to exceed amount due to service gaps because of staffing shortages.

And then a second amendment was executed in September of 2024 to further increase the not-to-exceed amount.

Additional amendments were executed in February and December of 2025 to increase the not to exceed amount, as well as to extend the contract term to allow time for a new solicitation.

And as outlined in the memo from OCA, the average monthly spend over the last three plus years has been close to $300,000.

The proposed amendment is based on actual and projected expenditures plus an additional 20% contingency.

As you know, the provision of security services is essential to operations at DPH.

Security guards assigned to this contract provide access control.

They screen people entering DPH facilities, and they respond to incidents when they occur.

This concludes my very brief presentation.

And all three of us are available for questions.

Thank you.

And to increase the not-to-exceed amount by $3.2 million for a total of $15.38 million.

Following the state of the fatal stabbing of a social worker at SF General Hospital, DPH has increased security staffing at buildings 80 and 90 to add two additional posts.

So DPH is requesting an amendment to this agreement to add those additional hours and also to extend the agreement to give them time to procure a new contract.

Exhibit one on page four of our report shows the basis of the not-to-exceed amount, which includes a 20% contingency as well as a 40% additional adjustment to allow for potential increases in staffing.

60% is a very large contingency, which means the Board of Supervisors doesn't know exactly what you're authorizing in terms of service levels.

But rather than reducing the amount and having this contract come back within the next year, we recommend that the Board of Supervisors request the DPH come back or provide a report to the Board of Supervisors more broadly on their security needs and costs for this contract, other security contracts, use of deputy sheriffs, and to kind to report on how their needs are addressed in the upcoming budget in advance of their first budget hearing in June.

We recommend approval of item five.

Yeah, I mean, I think, you know, I I think it is not just I I think maybe this is something that we look to the city uh administrators to help address the overall security um plan contract.

We just approved one recently.

Um SFMTA that we just approved, you know, on the security contract now with you know uh SF general.

We we do look forward to having this uh more like comprehensive conversation with Director Kittler, Tophia Kittler, uh, as well as the city administrator, the overall like the security plan for city buildings that's inclusive of city hall, um and of course city agency and and city property that how do we balance between you know utilizing our deputy sheriffs who actually are now clearly um also need to figure out their overtime spending um with their limited capacity uh and versus contracting out um security contract um and I appreciate the third party analysis, but is the dirt party analysis specifically for Department of Public Health and involving you know the general premise of San Francisco General Hospital.

Um I think I would let DPH speak to that, but thank you.

Yes, uh good morning, Lorna Walker, Deputy Director at OCA.

Yes, it is for DPH.

Uh Mr.

Price can address if you have specific questions.

It's a procurement to hire a consulting firm who will do an analysis of DPH's buildings and instruct her advice as to what the security measure should be put in place.

And so that's inclusive of all the clinics, including like CID clinics and everywhere else.

Yes.

Wonderful.

Okay.

Thank you.

I also wish that we have similar analysis in all public building, which I think we are somewhat undertaking it, but we probably take that in-house, I think, for the budget for the budget process.

So I'm expecting the layering of Department of Public Health along with the citywide conversation because SFUC and other facilities are in need of security as well.

Thank you, Chair Chan.

I just want to associate myself with your remarks.

I think it is important that we as supervisors in general and as you know, members of the budget committee in particular, be apprised of the security challenges that are facing our departments and in particular their employees.

So that we're not just beefing up or not based on what we think, but having actual experts on that.

But once we get that expertise, I think it is important to that it be shared with us because I think we have an obligation to be informed on this as well.

So I appreciate the BLA's recommendation that this be presented to us.

Thank you.

And so uh with that, let's go to public comment on this item.

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

If we have any members of the public, I 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 uh and a roll call, please.

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

Dorsey, I, Member Sawter.

Soder, I, Chair Chan.

I.

Chan, I we have three eyes.

The motion passes.

And Mr.

Clark, do we have any other items before us today?

I'm Madam Chair, that concludes our business.

And seeing and the meetings adjourned.