Budget and Finance Committee Meeting - March 18, 2026

The Budget and Finance Committee, chaired by Supervisor Connie Chan and including Vice Chair Matt Dorsey and Supervisor Cheryl, met on March 18, 2026 to consider eight items. The committee approved several routine items, heard public testimony on mobile food vendor regulations and the Petrero Yard Modernization Project, and advanced all items to the full Board of Supervisors for the March 24 agenda.

Public Comments & Testimony

• Item 1 (Mobile food facility permits): Over a dozen food vendors and advocates (from Nuestra Casa, Calle 24, and the Food Vendor Committee) testified in Spanish and English. They expressed support for food safety compliance but urged the committee not to advance the ordinance until three core pathways are included: access to affordable commissary spaces, financial support for compliant carts (the "Miko" program), and transition protections to avoid penalization. Speakers warned that without these supports, the law would push existing vendors out of legal operation and risk violent enforcement. One speaker asked directly whether the committee would commit to including these measures.
• Item 7 (Petrero Yard Modernization): Public comment included:
  • Jesus Mendoza (Carpenters Union Local 22) and other union representatives voiced strong support, citing the project's labor agreement, local hiring, and long-term benefits for Muni.
  • Trisha Gregory and Ricardo Maroon (small business owners) supported the project and urged inclusion of LBE/SBE carve-outs.
  • Mary Travis Allen (co-chair of American Indian Cultural District, former SFMTA manager) and Natalie Ortiz (community leader) expressed deep disappointment over the loss of 365 affordable housing units originally planned above the yard. They called for accountability and commitment to the full vision.
  • Peter Papadopoulos (Mission Economic Development Agency) noted the affordable housing team remains dedicated to completing 100 units but urged city reimbursement of design costs and a path for the remaining 365 units elsewhere in the Mission.

Discussion Items

• Item 1 – Mobile food facility permit ordinance: Supervisor Chan announced, after consultation with Supervisor Fielder and vendor groups, that the file would be duplicated. One copy would be passed as amended to the full board; the other would be continued to the call of the chair to allow time for potential waiver language or trailing legislation addressing the micro kitchen (Miko) issue. The committee later rescinded its vote to reopen public comment, heard the public testimony above, then re-voted to send the original amended ordinance to full board.
• Item 2 – Lutheran Social Services money management grant: Emily Cohen (HSH) presented the program, noting 86% of participants achieved financial goals and that the contract would extend through June 2028 with an increase of ~$5.2 million to a total not-to-exceed ~$15.2 million. The BLA reported the contract is cost-effective (~$1,373 per client per year) and recommended approval.
• Item 3 – Gift acceptance for Animal Care and Control: Sophie Hayward (City Administrator’s Office) described a $100,000 gift from the Wilt Living Trust to support animal welfare operational costs (food, treats, toys). The committee approved unanimously.
• Item 4 – Port lease with Dillon's Tours: The lease at 490 Jefferson Street (5-year term, $72,000/year base rent, 3% annual increases) was presented. Scott Lansidel (Port) noted the space has been vacant for 15 years and that Dillon's will offer free shuttle service from Union Square to Fisherman's Wharf. The committee approved.
• Items 5 & 6 – HSA lease amendments for Mission Street offices: Alfie Penaflor and site managers described services provided at these locations (Jobs Now, SF Benefits Net, CalFresh, Medi-Cal, EDD). Sally Orth (Real Estate) reported that the lease term extension reduces annual rent by over $685,000, saving more than $3 million over the term. The BLA confirmed the new rate of $37/sq ft is market-based. Approved.
• Item 7 – Petrero Yard Modernization Project agreement: Judson True (SFMTA Chief of Staff) presented the project. The new bus yard is needed to replace a 110-year-old seismically unsafe facility. The project agreement with PRG Petrero Properties LLC provides a fixed price of $612 million for construction, financed over 30 years via two milestone payments ($65M at financial close, $250M during construction) and annual availability payments (~$33M). The BLA noted that removing the operations-and-maintenance component and restructuring financing saved about $1 billion compared to the earlier version. However, to achieve cost feasibility, the podium that would have supported housing above the yard was eliminated, reducing planned affordable housing from 465 units to 100 units on Bryant Street. Chair Chan expressed strong disappointment, noting the city's housing element goals and the eight years of work that went into planning for housing on the site. She requested a written commitment from SFMTA and the Mayor to explore funding for a reinforced podium to allow future housing construction. She offered two options: a letter before the March 24 board meeting or a further resolve clause in the resolution. Vice Chair Dorsey moved two amendments (one from SFMTA adding a whereas clause about housing element compliance, one from the BLA removing the word "estimated" and adjusting the not-to-exceed language). The committee voted 3-0 to send the resolution, as amended, to the full board.
• Item 8 – Police department overtime appropriation: CFO Kimmy Wu presented the request to de-appropriate $34.3 million from salary savings and appropriate it to overtime, a budget-neutral shift within the department's approved budget. The BLA reported that overtime hours have decreased from over 800,000 two years ago to a projected 717,000 this year, and that the police have ordered a 20% reduction in overtime for the remainder of the fiscal year. Chair Chan commended the department for working within its budget and asked about future staffing, asset management, and technology plans. The committee approved the ordinance but noted that the release of a $537,000 committee reserve would be handled separately at a later hearing.

Key Outcomes

• Item 1: Motion to duplicate the file passed 3-0 (with Sauter excused). The original amended ordinance was forwarded to the full board with recommendation; the duplicate was continued to the call of the chair to allow further work on micro kitchen provisions.
• Item 2: Resolution approved 2-0 (Sauter excused), forwarded to full board.
• Item 3: Resolution approved 2-0, forwarded.
• Item 4: Resolution approved 2-0, forwarded.
• Items 5 & 6: Both resolutions approved 2-0, forwarded.
• Item 7: Resolution approved as amended (3-0) and forwarded to full board. The committee requested a commitment from SFMTA and the Mayor regarding future reinforced podium funding before the March 24 board meeting.
• Item 8: Ordinance approved 3-0 and forwarded to full board. The $537,000 committee reserve release will be addressed at a later date upon written request from SFPD.