Good morning.

The meeting will come to order.

Welcome to the May 13, 2026 meeting of the Budget and Finance Committee.

I am Supervisor Connie Chan, Chair of the Committee.

I am joined by Vice Chair, Supervisor Matt Dorsey and Member Supervisor Danny Sauder.

Our clerk is Brent Haliba.

I would like to thank Kalina Mendoza from Essex of TV for broadcasting this meeting.

Mr.

Clerk, do you have any announcements?

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 files, 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 and public comment is called, please line up to speak on the west side of the chamber to your right by 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 and 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 Hat S F G O V dot O R G.

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

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

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

Carlton be good at place.

Room 244, San Francisco, California, 94102.

And finally, items acted upon today are expected to appear on the board of supervisors agenda of May 19th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

Uh and before we call item number one, like to just remind the public that we have budget and legislative analyst reports for items two and five on today's agenda.

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

Um then we will take questions and public comment.

And to also for the general public, we will have budget and appropriation committee this afternoon, and that's when the city department of enterprise agencies will come before this body.

So this is still the budget and finance committee.

And so with that, Mr.

Clerk, please call item number one.

Yes, item number one is a resolution authorizing and approving an agreement with the successor agency to the redevelopment agency of San Francisco, acting in its capacity as the legislative body of community facilities district number eight, Hunters Point Shipyard Maintenance District.

How for the city to receive funding for its operation and maintenance of the Hunters Point Shipyard Phase One Parks and Open Spaces, and to authorize the recreation and park department and the San Francisco Arts Commission to coordinate the operation and maintenance.

Madam Chair.

Thank you.

And today we have um OCI.

Yes, Office of Community Infrastructure and Investments here.

Yeah, thank you.

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

I'm Mark Slutskin, the Deputy Director of Office of Community Investment Infrastructure, OCII.

I'm here with the Recreation and Parks Department and the San Francisco Arts Commission.

Uh we are here to present the community facilities uh agreement for the funding and management of the open space and public art and shipyard phase one.

Uh the hilltop area of uh the shipyard phase one has seven hundred and sixty-seven units of housing and thirteen and a half acres of park and open space.

And due to dissolution, we are required to transfer the open space to the city.

Here we have a map of the hilltop area.

The areas in green show the parks, pocket parks, and larger open space.

The orange uh circles is where the public art is located.

Um, currently OCI and Rec Park have a memorandum agreement where they are managing the open space.

Uh, but we're here before you to get the long-term 66 year joint confili joint community facilities agreement.

Um, the joint facilities agreement will be more detailed on how the management and operations are done as well as the funding.

In about a month or so, we'll be coming back before you with the conveyance agreement to start transferring the land.

Uh, this project has a community facilities district that is specific for the funding for the open space in the art.

This funds are will do reimburse Rec Park and the arts commission for their work.

This is 100% covered by the CFD, so there will be no general fund dollars used at all for the management of this open space.

OCI's obligations, we will be the administrator of the CFD funds.

We will review and approve annual operating budgets provided by Rec Park and the Arts Commission.

And then we are also will be overseeing the construction of the remaining parks on the hillside.

Now Antonio Guerra of the Rec Park will come up and speak about their responsibilities.

Good morning, Antonio Guerrero, Director of Administration Finance for Rec Park.

So under this agreement, Rec Park will continue providing comprehensive park and facility management to ensure that these parks are upheld to the same standard as all of our other properties.

This includes staffing custodians, gardeners, and a park section supervisor, along with issuing permits for events and reservations.

Last year, this board approved a park code amendment that allows Rec Park to apply the park code to properties in Mission Bay as well as the Hunter Point Ship Hunters Point Shipyard Parks.

Our park rangers will enforce the park code and act as park ambassadors as they do throughout all of our system.

Our department, Rec Park, will be responsible for submitting annual operations and maintenance budgets to OCI.

As property manager, we're responsible to procuring and paying for required utilities, but these expenses will be reimbursed by this CFD.

And lastly, a subset of the Hunters Point Shipyard Parks are subject to the California Public Trust, and Rec Park will assume the role of trustee as manager of the parks.

We fulfill this role for other parks, including Mission Bay as well as the Marina Yacht Harbor.

And now I will pass the baton to the San Francisco Arts Commission.

Good morning, supervisors.

Similarly to Rec Park, we will be submitting annual operations and maintenance budget to OCI each year.

And as with our other artworks that are on Rec Park property, we will be coordinating with RPD to address any operational maintenance or repair issues related to the art.

And with that, we are happy to take any questions.

Thank you.

And I think I don't, it's not a questions, but more as a commons for the joint facility.

That while I do appreciate, by the way, it's a great facility, it looks uh wonderful.

Um, and I think that again is asking Rec Park, but also um having the community dialogue to kind of see what kind of permits system and should you have not events permit, but but you should you end up having a tenant uh permit in this space.

Um, is that is that really gonna be the goal, or would that be the intention?

Meaning, will you actually have someone who operate in that space?

Similarly to Crenco Park with YMCA, but thank you for the question.

Antonio Guerrera again from Rec Park.

Yes, we do plan uh significant community engagement.

There is a CAC there that we have been collaborating with as we've developed this joint facilities agreement.

Um, additionally, as you're aware, we've been very active in this community uh over at India Basin as well.

So uh we've been very pleased.

We've talked to them as well about workforce initiatives trying to get jobs at Rec Park, too.

So it's something that our engagement there is very strong.

Wonderful.

And of course, like you know, with Supervisor Walton, please make sure that his team him and his team are looped in in terms of facilitating a community dialogue and what permitting what what kind of events and what kind of community events and how that facility should be used.

Similarly, to I think that you know, as a PUC, I am bringing the sort of just the model of operation like SIPUC with the Southeast facility, again, having those dialogue consistently with a community to figure out what that space and how that space should be utilized and prioritizing local communities and local residents uh to be able to fully utilize that space.

It is really uh what I really ask the city departments uh when as you come into this agreement to really consider that.

Um, because again, I think that oftentimes throughout the process, uh, we we let's let's make that effort to prioritize the local community.

Absolutely, thank you.

Thank you.

I look forward to seeing that agreement coming to this body.

Um, I may not be here, but um, anyways, uh, to to as your chair, but um, all which is to say, I appreciate this conversation.

Let's go to um public comments on this um item.

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

If we have any members of the public 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 a full board with recommendation um and a roll call, please.

Now, I motion to refer to the full board.

Vice Chair Dorsey, Dorsey, I, Member Sauter, Soder, aye, Chair Chan.

Aye.

Chan, I we have three eyes.

The motion passes.

Thank you.

Mr.

Clerk, please call item number two.

Item number two is a resolution authorizing the recreation and park department to enter into an agreement to loan up to 8.5 million to the San Francisco Zoological Society to support the operations and long-term financial sustainability of the San Francisco Zoo contingent on various milestones and terms and conditions effective upon approval of this resolution to be repaid over 10 years in the form of deductions from the SFZS's management fee, allowing for the city to terminate the lease and management agreement with the SFZS in the event the loan is not timely repaid, or if the conditions in the loan agreement are otherwise not met and authorizing the recreation and park department general manager to enter into amendment or modifications to the loan agreement that did not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the permit or this resolution.

Madam Chair.

Thank you.

And again, we have SF zoo here.

This item was continued for a couple reasons.

I think it's one we wanted to see the actual loan agreements uh for allowing the budget and legislative analysts uh to be able to look at it.

Uh so we also were looking for a joint letter which we receive.

Um, so if I may today have a have either rec park or zoo to speak on a joint letter and walk us through, and then I'm gonna go to the BLA to speak on the final version that we receive on the loan agreement.

Thank you very much, Chair Chan and Tony O'Guerr again from Rec Park.

Uh, the letter dated uh May 11th from both the zoological society as well as our department basically sets forth the plan on how we get to a new agreement.

We talk about within the current loan, what we have is analyzing what the BLA set out in an audit as well as terms and conditions for the zoo to access the 6.5 million dollar loan, as well as a potential $2 million reserve.

Some of these things is known in the letter R.

Restoring financial stability and transparency through a comprehensive financial sustainability plan, improved budgeting practices, and ongoing reporting.

And that includes some analysis on what happens if we get pandas, what happens if pandas don't arrive, or what happens if pandas arrive and the attendance is as strong as we were thinking.

We also want to develop a clear strategic vision through the creation of a forward-looking strategic plan, campus master plan, and capital investment roadmap, strengthening governance and oversight by enhancing board practices, improving internal controls, and increasing regular reporting and accountability.

As the BLA had noted, we really need a stronger relationship with the zoo, and that's what we're trying to do with this loan agreement.

Uh as well as in the letter, we mention the improved improving operations and guest experience through targeted investments in maintenance, programming, marketing, and public-facing amenities.

And you might have heard Cassandra mention that last week as well.

There are some real initiatives out there on trying to get more people to come to the zoo.

Rebuilding organizational culture and trust through strengthened leadership practices, communication, and staff engagement, as well as aligning animal care facilities and long-term planning to meet modern zoo standards and support accreditation goals.

And that is a goal of both of ours, making sure that the zoo is able to get that AZA accreditation.

So, as we note in the letter, just as importantly as this moment represents an opportunity to strengthen modernized city and zoo partnership, a new lease agreement to operate the zoo will be informed by the planning and financial stabilization efforts undertaken during the loan performance period, which aligns with this upcoming fiscal year.

So once we get all this work done, that is when we will begin to undertake the execution of a new lease agreement.

Good morning, Nick Minard from the BLA.

We reviewed the loan agreement, which as you recall was not available at the committee for the committee's review last week.

The version on Legislature now is entirely consistent with the loan sheet.

It has all the conditions that we discussed in our prior report.

The only difference is that it's not a 10-year agreement.

As it kind of is described in the term sheet, it is a 10-year repayment period after the final disbursement of the loan.

So it'll probably be a 12 or 13-year total term.

But other than that, I think everything's in there.

Thank you.

And so with that, I appreciate the effort.

And I think that I find the audit really helpful with really spelling out all policy recommendations, which I think that thank you to uh director um Cassandra Costello from San Francisco Zoo last week in the presentation.

Uh, I think that there was a lot of it mirroring the audit uh policy recommendation.

So I do appreciate that.

And seeing that um it does give me a level of confidence to support the loan agreement uh today and to move this forward.

So uh let's go to public comments on this item.

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

If we have any members of the public who wish to address this committee, hi, Nate and May.

Um, I was raised half a mile from the zoo, and my parents dragged me there from time to time.

I hated it because I didn't want to see animals in cages.

So I don't go to zoos.

I would love our zoo to be an example to the nation of a place that would take in animals that need to be rescued rather than captive animals.

Um we are facing a severe budget problem.

Mayor Lori is taking money away from health services, senior services, youth services, and I understand that this $8.5 billion is a loan, but I strongly oppose giving the zoo this amount of money, unless there is accountability, credibility, complete transparency.

And I very much oppose the idea of bringing pandas here.

It's not a good place for pandas to die, one died at the Memphis Zoo, and the other one has made wonderful recuperation steps.

I have a picture, he's gained 40 pounds since he up acted China.

So thank you very much.

I'm against this loan.

Thank you.

Thank you much for addressing this committee.

Next speaker.

Good morning, supervisors.

My name is Michael Angelo Torres, and I'm a district three resident.

I work for in defense of Animals, overseeing Bay Area Campaigns, and also serve as chair of the city's animal commission, and recently joined the Jews, the I'm sorry, the joint zoo committee as a non-voting advisory role.

I'm also on the executive board of SF Dog and write a monthly column on San Francisco Animal Issues for Baywolf.com.

Although I'm speaking today on my own behalf, I mention these roles because I spend a great deal of time listening to the community concerns about animals and animal related institutions in San Francisco.

And the issue I hear the most consistently about is the zoo.

For years, community members, including current and former zoo employees, raised concerns about transparency, management, oversight, and accountability.

Those concerns were often dismissed or minimized until the BLA audit was finally released.

Even the joint zoo committee, one of the city bodies responsible for zoo oversight, has faced criticism over transparency and public access.

At one meeting, an ABC 7 reporter was warned not to film a risk removal, and there were repeated concerns raised about how members of the public are treated during their public comment periods.

Eventually the Sunsign Task Force had to become involved.

We are now discussing an $8.5 million loan after years of warnings from the public and only after an audit that the zoological society resisted and fought hard against.

I understand the urgency of the situation, but this situation did not happen overnight.

It developed over years while the community members tried to sound the alarm and asked City Hall for greater transparency and accountability.

Please use this moment to require real accountability, meaningful oversight, public transparency and measurable reform, and compassionate change from the zoo going forward.

The community spoke up long before the audit.

I hope City Hall will start to listen to us now.

Thank you.

Thank you much, Michael Angelo Torres.

Next speaker.

Good morning, supervisors.

My name is Susan Cronen Perano, and I'm here today regarding the zoo's proposed loan.

Before approving this loan, the city should require strong financial and animal welfare safeguards.

First, the zoo should be required to obtain approval for major expenditures before proceeding with any projects.

In addition, all financial expenditures should be reported at the end of each fiscal year to ensure accountability and responsible financial management.

The zoo should maintain its current animal population and refrain from acquiring additional animals unless they are rescued or native species.

If larger enclosures become available, their use should require city approval to ensure they provide appropriate natural habitats that support animal well-being.

The zoo should also ensure that adequate space is provided for animals that require larger enclosures.

The city should also reconsider any plans to acquire giant pandas as it would place a significant financial burden on a zoo that is already struggling.

The priority should be stabilizing the zoo's budget before taking on costly new programs.

Any funding from this loan should be directly primarily forward, improving the care and living conditions of the zoo's existing animals.

In conclusion, this loan should not be approved without clear financial oversight and a firm commitment to animal welfare and responsible spending.

Thank you.

And thank you much for your comments.

If we have any other speaker, okay.

So final call for uh anybody who wants to provide public comment uh on this item, please line up against the uh the curtains just so we know how many uh people we have left.

And with that, next speaker, please.

Yeah.

Sorry, it was a last minute decision.

I'm my name is Sidney Dent.

I'm from San Quentin Village, 66 Main Street.

I just ask that you please uh do not bail out the San Francisco Zoo Zoological Society.

I after reading after reading the audit and the details, it seems that they were i totally not bothered with the state of the zoo finances, or they were complicit in the the fraud, the fraud of giving no bid contracts and the expenses of the CEO, very high.

Uh could we get the zoo under more direct management of the city?

Because then they would be accountable to to the public uh taxes and grants they get thank you bye and thank you much for your comments and with that madam chair that completes our queue seeing no public commons public comment is now close colleagues I would like to um move this item to full board with recommendation and the roll call please and on the on that motion to refer to the full board with recommendation vice chair dorsey Dorsey I member solder solder I chair Chan I Chan I we have three eyes the motion passes um Mr.

Clerk please call items three and four together item numbers three and four are resolutions designating the following has official newspapers of the city and county for fiscal year 2026 to 2027 item number three designates the following as outreach community based weekly newspapers Bay Area Reporter for the lesbian gay bisexual and transgender community and wind newspaper for the Chinese community and designates the following to be the outreach neighborhood based monthly newspapers Clinton Royally communications doing business as the San Francisco examiner for the Eureka Valley Excelsior Financial District Forest Hill Haight Ashbury Marina Mission North Beach Pacific Heights Presidio Heights Richmond Russian Hill South Market Sunset and Tenderloin neighborhoods El Tecalote for the Excelsior Mission and Partado Hill neighborhoods Henry Society Journal for the Bayview Hunters Point Visitation Valley and Western Edition neighborhoods Noe Valley Voice for the Diamond Heights and Noe Valley neighborhoods Pretero View for the dog patch Eastern South of Market Mission Bay and Parterro Hill neighborhoods San Francisco Bay Times for the Castro DeBose Triangle Mission and Noe Valley neighborhoods San Francisco Chronicle serving the entire city and World Journal to serve Chinatown Engleside Mission Richmond and Sunset neighborhoods and item number four designates Clinton Riley Communications doing business as the San Francisco examiner to be the official newspaper for all official advertising Madam Chair.

Thank you Mr Clark and so um with that we have the office of the city administrator here Chan Vice Chair Dorsey and Supervisor Sauter and Sophie Hayward representing the Office of Contract Administration today.

I am here as I am every year uh to present a package that we bring annually in accordance with proposition J that voters passed in 1994.

1994's Prop J, which of course predates the internet and internet advertising as we know it requires that the Board of Supervisor designate three types of publications for publication of official notices one daily official newspaper one weekly community based uh outreach publication and one monthly neighborhood-based outreach periodical for each San Francisco neighborhood if the Board of Supervisors finds that neighborhoods are not being served by other periodicals.

Prop J also includes very specific definitions as to what qualifies for each of these types of periodicals.

The daily official newspaper must be printed in San Francisco on three or more days each week with the hard copy circulation of at least 5000 newspapers the weekly community based outreach periodical has to target specific communities defined as lesbian gay bisexual African American Hispanic or Chinese communities and other communities as designated by the board of supervisors and they also must be printed in San Francisco and published at least once per week.

And then the monthly neighborhood based periodical must target a specific neighborhood in San Francisco as determined, or neighborhoods, plural, as determined by the board of Supervisors, and it must be published at least once per month.

Then pursuant to the administrative code, Section 2.81, the Office of Contract Administration issues a formal solicitation for the selection of each of those three types of outreach periodicals.

And then they receive the proposals and they develop a recommendation that they make to you to the Board of Supervisors for the award.

So in the next three slides, I will just summarize OCA's recommendation for you.

First, OCA recommends for the daily official newspaper that you select the San Francisco examiner.

For the weekly community-based outreach periodical, OCA recommends the BAR and the Wind newspaper.

And then finally, as Clerk Halipa has already read through for you for the monthly neighborhood-based outreach periodicals, OCA recommends the Examiner, El Tocolate, the Henry Society Journal, Noe Valley Voice, the Petrero View, the SF Bay Times, the SF Chronicle, and the World Journal.

That concludes my presentation of OCA's recommendations to you.

I understand that there may be amendments to add to additional newspapers, and I am certainly available for questions, as is Will Alderman from the Office of Contract Administration.

Thank you.

Thank you.

And I before I acknowledge Vice Chair Dorsey, I just want to thank Vice Chair Dorsey, who actually been doing a lot of this work, not just particularly to this item, but just generally around neighborhood press.

So and it's clearly it's been going on since 1994.

So it's no small task.

So Vice Chair Dorsey.

Thank you, Chair Chan.

I want to express my appreciation to everyone for this.

I have circulated amendments that would add El Reportero and Sing Tau as designated neighborhood based outreach publications.

I want to express my appreciation to the department for its work in administering this year's solicitation process.

You know, I've worked in media relations for public agencies for most of my career, and I have always believed that if we're gonna say with a straight face that we support our communities, we need to also support community-based journalism.

So that is something that I think is really important, and that is the animating principle behind Prop J, given the importance of making official city notices accessible across San Francisco's diverse neighborhoods and language communities.

I think these additions would be warranted and consistent with the board's authority under uh administrative code section 2.81 through 4.

So I'm gonna I will just read this into the record.

On page two, line two, adding Singtau to be the outreach neighborhood-based monthly newspaper of the city and county of San Francisco for the Chinatown, Richmond, Sunset, Portola Valley, Excelsior, Outer Mission, Tenderloin, Oceanside, Ingleside, and Merced Heights neighborhoods, semicolon, El Reportero to be the outreach neighborhood-based monthly newspaper of the city and county of San Francisco for the mission, Bernal Heights, Bayview, and Excelsior neighborhoods.

And then on page three at line 16, sorry, sorry, line 15, striking and be it, and replacing it with Sing Tao, Chinatown, Richmond, Sunset, Portola Valley, Excelsior, Outer Mission, Tenderloin, Ocean View, Ingleside, Merced Heights, El Reportero, Mission, Burnal Heights, Bayview, Excelsior, and Be It.

And that would uh be the end of the amendments that I am submitting.

So I'd like to make a motion to um amend this, and then if I may, just I'll look into I assume we can do this in one motion to forward this to the full board with our positive recommendation.

Thank you.

And so with that, we will go to public comment and then we will return to uh a roll call for the motion.

Yes, we're now opening public comment for both these items three and four.

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.

And uh colleagues, I would like to uh let's let's sorry, roll call to the motion proposed by Vice Chair Dorsey.

Yes, and on the motion by Vice Chair Dorsey that we accept the amendments that he just read into the record and that we refer this resolution to the full board with the recommendation as amended.

Vice Chair Dorsey.

Dorsey, aye.

Member Sauter.

Saudder, I chair Chan.

Aye.

Chan, aye.

We have three ayes.

The motion passes.

And with that, uh Mr.

Clerk, please call item number five.

Yes, item number five is a resolution approving the 2023 lease and use agreement between the city and county acting by and through its airport commission and Air Zeta Co.

Limited to conduct flight operations at the San Francisco International Airport for a term commencing on the first day of the calendar month immediately following the receipt of full city approvals of the lease through June 30th, 2033, affirming the planning department's determination under the California Environmental Quality Act and authorizing the airport director to enter into modifications to the lease that did not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the lease or this resolution.

Madam Chair.

Thank you.

And today we have SFO here.

Good morning, Chair Chan of Vice Chair Dorsey and the Supervisor Sauter.

Daniel Sangh with SFO.

Uh the airport requests approval to add uh Air Zeta to as a signatory airline to the airport's 2023 lease and use agreement, with the lease commencing on the first day of the month following receipt of full city approvals.

The lease and use agreement provides a common set of lease provisions such as rent and fees and permitted use of terminal spaces and provides the framework for the airport to make an annual service payment to the city based on the 15% of non-aeronautical uh revenue.

The board approved the current lease and use agreement in June 2023 for a 10-year term with 40 signatory airlines, and since then nine additional airlines have joined as new airlines begin service at SFO and execute the agreement.

The airport will periodically seek board approval for added signatories.

Air Zeta um began cargo operations at SFO on August 1st, 2025 under a permit and now seeks to become a signatory airline.

The airport anticipates approximately 15 million in revenue uh through a June 2033 uh from rent and landing fees.

Uh the BLA has recommended approval and I'm happy to answer any questions after the report.

Uh item five is a resolution that adds Air Zeta to the airport's airline lease and use agreement.

It has the same exact terms of previously approved uh lease and use agreements that have already come through the board of supervisors and would end with all the other uh lease and use agreements in uh in June 2033 based on their projected uh cargo shipments.

They will generate about 15 million dollars to the airport through June 2033, which is about two point two million dollars for the general fund over that period.

We recommend approval.

Thank you.

And uh so with that, uh I don't see any name on the roster.

Let's go to public comment on this item.

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

That was your opportunity.

Madam Chair, we have no speakers.

Seeing no public comments, public comment is now closed.

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

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

Dorsey, aye.

Member Sauter.

Sodder, aye, Chair Chan.

Aye, Chan, aye.

We have three ayes.

The motion passes.

Thank you.

And Mr.

Clerk, do we have any other business before us today?

Uh Madam Chair, that concludes our business.

And so with that, colleagues, just a reminder that we will have our budget and appropriation committee.

Uh, this afternoon starting at 1:30.

Uh, this is starting the budget process uh with the enterprise agencies today.

And so with that, this meeting is adjourned.