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Record of Proceedings

Budget and Finance Committee Meeting – March 25, 2026: Contract Approvals and Affordable Housing

Budget and Finance Committee — Wednesday, March 25, 2026

BodySan Francisco, California

SessionBudget and Finance Committee

DateWednesday, March 25, 2026

StatusFILED

Video Record

0:00 / 1:15:10

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:08

Good morning.

0:09

The meeting will come to order.

0:10

Welcome to the March 25th 2026 meeting of the Budget and Finance Committee.

0:15

I'm Supervisor Connie Chan, Chair of the Committee.

0:18

I'm joined by Vice Chair Supervisor Matt Dorsey and Member Supervisor Danny Souter.

0:23

Our clerk, it's Brent Haliba.

0:26

I would like to thank Jamie Averchery from SFGAU TV for broadcasting this meeting.

0:31

Mr.

0:31

Clark, do you have any announcement?

0:33

Thank you, Madam Chair.

0:34

Just a friendly reminder to those in attendance.

0:36

So please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings.

0:42

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

0:46

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

0:49

When your item of interest comes up in public comment is called, please line up to speak.

0:53

On the west side of the chamber to your right, my left along those curtains.

0:56

And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the trade by the television to your left by the doors.

1:04

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.

1:11

Email them to myself, the budget finance committee clerk at B R E N T dot J A L I P A at SFGOV.org.

1:22

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

1:29

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

1:31

Postal Service to our office in City Hall at one Dr.

1:35

Carlton be good place.

1:36

Room 244, San Francisco, California.

1:39

94102.

1:41

And finally, due to our spring legislative recess, items acted upon today are expected to appear on the Board of Supervisors agenda of April 7th, unless otherwise stated.

1:51

Madam Chair.

1:52

Thank you, Mr.

1:52

Clerk.

1:53

And before we call item number one, I'm going to like to remind everyone that we have budget and legislative analysts report from items one through seven on today's agenda.

2:02

And for those items, we will have the department presentation first, followed by the budget and legislative analyst report.

2:08

Then we will take questions and then go to public common.

2:12

So with that, Mr.

2:13

Clerk, please call item number one.

2:15

Yes, item number one is a resolution approving modification number three to a contract with Hallmark Aviation Services LP for Airport Information and Guest Assistance Services to extend the term for one year from June 30th, 2026 for a total term of July 1st, 2024 through June 30th, 2027, and to increase the contract amount by approximately 10.4 million for a new contract amount not to exceed approximately 30.4 million pursuant to the charter.

2:44

Madam Chair.

2:45

Thank you.

2:46

And today we have SFO here.

2:47

Good morning, Deanna Volek with SFO.

2:50

The proposed resolution would approve the third modification to an existing contract between the airport and Hallmark to exercise the second of three one-year options to extend the contract from July 1st, 2024 through June 30th, 2027, and increase the contract not to exceed amount by 10.4 million for airport information and guest services.

3:12

The original contract was the result of a competitive request for proposals process.

3:18

This modification will allow Hallmark and its LBE subcontractor Polaris to continue to perform essential guest service work at SFO, such as line management in the international arrivals area, wayfinding and information desk operations.

3:33

In addition, this modification expands staffing to support guest navigation during our major construction projects, including Terminal 3 West Modernization, and accommodate in anticipated increases in passenger traffic.

3:48

In 2025, staff assisted 2.7 million guests at 16 information desks.

3:54

The contract employs individuals with diverse backgrounds, nearly all being bilingual at a minimum, and a reflection of San Francisco's welcoming spirit.

4:05

The BLA has recommended approval, and I am here with my colleague from guest services to answer any questions.

4:17

Christina Malamut from the Budget and Legislative Analysts Office.

4:21

The proposed resolution would approve an amendment to an existing contract between the airport and Hallmark Aviation Services to extend the term by one year through June 2027 and increase the not-to-exceed amount by approximately 10.4 million for a new total of approximately 30.4 million.

4:52

Staffs the airport information desks.

5:04

Exhibit one on page five of our report shows the basis of the not to exceed amount.

5:09

The annual budget in the extension year is 10.4 million.

5:13

That reflects the increases in staffing.

5:15

It also reflects increases in the hourly rates and benefits for staff.

5:20

It's funded by airport operating revenues, and we recommend approval of item one.

5:25

Thank you.

5:26

And I'm just out of curiosity and try to understand the calculation of contingency budget for the 22.6%.

5:34

And I'm just kind of curious how how does the 26 22 point six percent come about?

5:39

Sure.

5:40

Um I'd like to call my colleague Christopher Birch, who can explain as the director of guest services.

5:45

Thank you.

Discussion Breakdown — Share of Meeting

Public Health██████████████████████████26%

Procedural█████████████████████████25%

Technology And Infrastructure███████████████████19%

Affordable Housing█████████████13%

Procurement█████████9%

Finance And Debt███3%

Community Engagement██2%

Budget and Finance██2%

Engineering And Infrastructure█1%

Summary of Proceedings

Budget and Finance Committee Meeting – March 25, 2026

The Budget and Finance Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and Member Danny Souter, met on March 25, 2026 to consider seven agenda items. The committee heard presentations from the San Francisco International Airport (SFO), the Assessor-Recorder's Office, the Human Services Agency (HSA), the Department of Public Health (DPH), and the Mayor's Office of Housing and Community Development (MOHCD). All items were approved with recommendations to the full Board of Supervisors.

Consent Calendar

No consent calendar items were listed.

Public Comments & Testimony

Item 3 (CalFresh Stopgap Gift Card Initiative): Griffin Lee, a resident, thanked the Mayor, the Board, the San Francisco Marin Food Bank, and Crankstart Foundation for the rapid response to federal funding cuts, calling it a crucial step in supporting vulnerable residents.
Items 4–6 (Health Access Points): Griffin Lee, representing Connected SF, opposed the three contract amendments, arguing that the contracts lack measurable outcomes and accountability. He noted that “harm reduction” appears dozens of times in the documents and called for an audit of the programs, citing ongoing overdose deaths on city streets.

Discussion Items

Item 1 – Hallmark Aviation Contract (SFO): The committee considered a resolution to approve modification number three to a contract with Hallmark Aviation Services LP to extend the term by one year through June 30, 2027 and increase the not-to-exceed amount by approximately $10.4 million to a new total of $30.4 million. The contract provides airport information and guest assistance services, including line management, wayfinding, and information desks. SFO staff reported that in 2025, Hallmark staff assisted 2.7 million guests at 16 information desks. The Budget and Legislative Analyst (BLA) recommended approval. Chair Chan inquired about the 22.6% contingency budget; SFO's Director of Guest Experience explained it covers potential additional staffing for a new airport integrated operations center and construction support, with costs that are still uncertain. No public speakers appeared. The committee voted 3-0 to send the resolution to the full board with a positive recommendation.
Item 2 – SAPient Corporation Contract (Assessor-Recorder): The committee considered a resolution to authorize amendment number two to a contract with SAPient Corporation for the implementation and maintenance of the property assessment system (SMART). The amendment increases the contract by approximately $6.7 million to a new total of $33.9 million and extends the term by about four and a half years through June 2032. The system went live in September 2025 after significant delays. The BLA reported that implementation costs increased by $16.6 million due to vendor-caused delays, with the vendor absorbing $15.3 million of those costs. Chair Chan requested detailed staffing breakdowns for the $15.3 million in vendor costs to be included in the legislative file. The assessor's office noted they are developing a plan to transition system support in-house. The committee voted 3-0 to send the resolution to the full board with a positive recommendation.
Item 3 – CalFresh Stopgap Emergency Gift Card Initiative (HSA): The committee considered a resolution retroactively authorizing a contract with the San Francisco Marin Food Bank for the CalFresh Stopgap Emergency Gift Card Initiative, with a two-month term through December 2025 and a not-to-exceed amount of $9.1 million. HSA staff reported that after the USDA withheld federal emergency funds, the city and Crankstart Foundation each contributed $9 million to create an $18 million gift card program. 80% of eligible households (65,000 individuals) activated cards, totaling $14.4 million in benefits; 92% of activated funds ($13.2 million) had been spent by March 22, 2026. The program served 112,000 CalFresh recipients, including 48,000 seniors and 18,000 children. Unspent funds will be split between the city and Crankstart. The committee voted 3-0 to send the resolution to the full board with a positive recommendation.
Items 4–6 – Health Access Point Contracts (DPH): The committee considered three resolutions approving amendments to contracts with the San Francisco AIDS Foundation (SFAF), Rafiki Coalition for Health and Wellness, and Instituto Familiar de la Raza (IFR) to extend terms through June 2030 and increase amounts. The programs provide integrated HIV, HCV, STI testing, primary care, mental health, and overdose prevention services tailored to specific populations. The BLA noted that SFAF and IFR exceeded standards, while Rafiki was rated below standards due to missed service units and invoicing issues; DPH reported that Rafiki is now on track. DPH proposed a clerical amendment to item 4 (SFAF) to reduce the not-to-exceed amount from $23.8 million to $21.8 million, reflecting a $400,000 reduction in capacity building support. The committee accepted the amendment and voted 3-0 to send all three resolutions to the full board with a positive recommendation (item 4 as amended).
Items 7–8 – Balboa Reservoir Building A Affordable Housing (MOHCD): The committee considered two resolutions for the development of 158 affordable rental units at 105 Westeria Lane (Balboa Reservoir Building A). Item 7 approves a ground lease (75 years, $15,000 annual base rent) and a $29.9 million loan from MOHCD; Item 8 authorizes the issuance of up to $112.7 million in tax-exempt and taxable bonds. The project serves families at 40–80% of area median income and includes 13 studios, 65 one-bedrooms, 42 two-bedrooms, and one three-bedroom manager's unit. Total development cost per unit is higher than typical due to infrastructure costs; the city's total contribution to Balboa Reservoir affordable housing is approximately $87 million, $36 million more than required by the development agreement. MOHCD requested a clerical amendment to change the developer's name from Balboa Lee Avenue LP to Balboa Gateway LP. The committee accepted the amendment and voted 3-0 to send both resolutions to the full board with a positive recommendation.

Key Outcomes

Item 1 (Hallmark Aviation): Approved 3-0. Referred to the full Board of Supervisors for the April 7, 2026 meeting.
Item 2 (SAPient): Approved 3-0. Chair Chan requested a detailed staffing breakdown of vendor costs be added to the legislative file before the April 7, 2026 board meeting.
Item 3 (CalFresh Gift Cards): Approved 3-0. Referred to the full Board of Supervisors.
Items 4–6 (Health Access Points): Approved 3-0. Item 4 (SFAF) amended to reduce the not-to-exceed amount to $21.8 million. All three referred to the full Board of Supervisors.
Items 7–8 (Balboa Reservoir Building A): Approved 3-0. Item 7 clerically amended to correct the developer name. Both referred to the full Board of Supervisors.

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the March 25th 2026 meeting of the Budget and Finance Committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Supervisor Matt Dorsey and Member Supervisor Danny Souter. Our clerk, it's Brent Haliba. I would like to thank Jamie Averchery from SFGAU TV for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder to those in attendance. So please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file, they should be submitted to myself, the clerk. Public comment will be taken on each item on this agenda. When your item of interest comes up in public comment is called, please line up to speak. On the west side of the chamber to your right, my left along those curtains. And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the trade by the television to your left by 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 finance committee clerk at B R E N T dot J A L I P A at SFGOV.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 place. Room 244, San Francisco, California. 94102. And finally, due to our spring legislative recess, items acted upon today are expected to appear on the Board of Supervisors agenda of April 7th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And before we call item number one, I'm going to like to remind everyone that we have budget and legislative analysts report from items one through seven on today's agenda. And for those items, we will have the department presentation first, followed by the budget and legislative analyst report. Then we will take questions and then go to public common. So with that, Mr. Clerk, please call item number one. Yes, item number one is a resolution approving modification number three to a contract with Hallmark Aviation Services LP for Airport Information and Guest Assistance Services to extend the term for one year from June 30th, 2026 for a total term of July 1st, 2024 through June 30th, 2027, and to increase the contract amount by approximately 10.4 million for a new contract amount not to exceed approximately 30.4 million pursuant to the charter. Madam Chair. Thank you. And today we have SFO here. Good morning, Deanna Volek with SFO. The proposed resolution would approve the third modification to an existing contract between the airport and Hallmark to exercise the second of three one-year options to extend the contract from July 1st, 2024 through June 30th, 2027, and increase the contract not to exceed amount by 10.4 million for airport information and guest services. The original contract was the result of a competitive request for proposals process. This modification will allow Hallmark and its LBE subcontractor Polaris to continue to perform essential guest service work at SFO, such as line management in the international arrivals area, wayfinding and information desk operations. In addition, this modification expands staffing to support guest navigation during our major construction projects, including Terminal 3 West Modernization, and accommodate in anticipated increases in passenger traffic. In 2025, staff assisted 2.7 million guests at 16 information desks. The contract employs individuals with diverse backgrounds, nearly all being bilingual at a minimum, and a reflection of San Francisco's welcoming spirit. The BLA has recommended approval, and I am here with my colleague from guest services to answer any questions. Christina Malamut from the Budget and Legislative Analysts Office. The proposed resolution would approve an amendment to an existing contract between the airport and Hallmark Aviation Services to extend the term by one year through June 2027 and increase the not-to-exceed amount by approximately 10.4 million for a new total of approximately 30.4 million. Staffs the airport information desks. Exhibit one on page five of our report shows the basis of the not to exceed amount.

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