OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Budget and Finance Committee Meeting – May 27, 2026

Budget and Finance Committee — Wednesday, May 27, 2026
BodySan Francisco, California
SessionBudget and Finance Committee
DateWednesday, May 27, 2026
StatusFILED
Video Record
0:00 / 3:34:31
Transcript — Verbatim
0:08

Good morning.

0:08

The meeting will come to order.

0:10

Welcome to the May 27, 2026 meeting of the budget and finance committee.

0:14

I'm Supervisor Connie Chan, chair of the committee.

0:16

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

0:21

Our clerk is Brent Halipa.

0:23

I would like to thank Jamie Evercherry from EssexGov TV for broadcasting this meeting.

0:32

Mr.

0:33

Clark, do you have any announcements?

0:34

Thank you, Madam Chair.

0:35

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.

0:43

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

0:47

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

0:50

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.

0:58

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.

1:06

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.

1:13

Email them to myself, the budget and finance committee clerk at B R E N T.j.

1:21

Sf G O V dot O R G.

1:24

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

1:30

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

1:33

Postal Service to our office in City Hall at 1.

1:37

Dr.

1:37

Carlton be good at place.

1:39

Room 244, San Francisco, California, 94102.

1:43

And finally, items acted upon today are expected to appear on the Board of Supervisors agenda of June 2nd, unless otherwise stated.

1:51

Madam Chair.

1:52

Thank you, Mr.

1:53

Clerk.

1:54

And today we will be limiting our public comments to one minute.

1:59

And that would like to remind the public that we have our budget and legislative analyst reports for most of the item today.

2:07

So the way it works will be we will have the department presentation first, followed by the budget and legislative analyst.

2:14

Then this committee will take questions.

2:18

And then we will go to public comments after all the discussion.

2:22

So with that, Mr.

2:23

Clark, please call item number one.

2:26

Yes, item number one is an ordinance amending the business and tax regulations code retroactively to January 1st, 2026 to extend for 10 years to December 31st, 2035, an exemption from the parking tax and certain related requirements for a limited number of special parking events operated by volunteer-led nonprofit organizations on school district property to benefit school uh San Francisco public schools and earning less than 10,000 per event from rent.

2:56

Madam Chair.

2:57

Thank you.

2:58

And before I call on the Office of the Treasurer and Tax Collector colleagues, I would like to make a brief remark just to kind of provide context of this legislation and how it came about.

3:08

Um this legislation um or uh this ordinance reauthorizes and extends an existing long-standing exemption that allows parent teacher association to operate limited parking events on San Francisco Unified School District property without being subject to the property tax uh uh without subject to the property parking tax.

3:30

Um the prior authorization expired at the end of 2025, so this legislation reenacts the program retroactive to January 1st, 2026 and extends it through December 31st, 2035.

3:45

The program is narrow in its scope.

3:48

Events must occur on San Francisco Unified School District property.

3:52

The proceeds must exclusively benefit San Francisco public schools.

3:57

The revenue from any individual event is capping at $10,000.

4:03

So the fiscal impact is minimum based on reasons reporting, foregone parking tax revenue has not exceeded 30 3,800 in any given year.

4:16

So with that, we'll go to the um our office of treasure and tax collector.

4:22

I think you covered it great, so I'm happy to take any questions if you have any.

4:26

My apologies.

4:27

No, no, that's great.

4:29

You covered all the bases yeah thank you.

4:32

Uh I don't see any questions, I don't see any name on the roster.

4:36

Thank you so much for being here.

4:38

Um, and thank you so much for your work on this.

4:40

We really appreciate uh you keeping track and making sure that we're we're made aware um about this exemption and the and the expiration and scope.

4:48

Thank you thank you uh with that, let's go to public comments on this item.

4:52

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

4:55

If we have any members of the public who have joined us today who wish to address this committee madam chair we have no speakers seeing a public commons public comment is close and colleagues I think again this I would say that uh largely for us uh particularly is uh for for schools that are impacted uh by events inclusive like beta breakers or outside lands and other concerts particularly on the west side um and I just want to make sure um I'm transparent about uh also how it benefits uh the West side in our district particularly and so with that let's I would like to move this item to full board with recommendation and a roll call please and I motion to refer this ordinance to the full board with recommendation vice chair dorsey Dorsey I member Sauter solder I Chair Chan I Chan I we have three ayes the motion passes and Mr.

5:54

Clerk please call item number two yes item number two is an ordinance waiving the competitive solicitation requirement under the administrative code and authorizing the director of the department of public works to retroactively enter into uh an agreement a grant agreement with the transgender district in the amount of approximately 24.5 thousand for the purposes of printing and installing placemaking banners in the transgender district in the southeastern tender line head along sixth street south of market madam chair thank you and colleagues um I would uh this is my intention to uh actually continue this item for uh to next week um because we're waiting for a copy of the grant agreements to make sure that we are transparent and that we have those records on file um but if I understand I think that there is um the transgender uh transgender district um ex co-executive directors are here to make brief remarks for the item thank you good morning supervisor chan supervisor dorsey my name is Brianna McCree I'm co-executive director of the transgender district we are here to talk about our banners and our fee waivers um also I have to say the transgender district was founded in 2017 to highlight the deep rooted history here in San Francisco thanks to Susan Stryker and uncovering the history of the Compton's cafeteria riots which is this year's 60th birthday please come celebrate with us this Friday shameless plug um today the district serves as both as a cultural hub and community safety net for trans and nonbinary folks we focus on wellness name and gender change clinics um our entrepreneurship accelerator program to support especially black and brown people within the transgender district the banner oh I'm out of breath so damn the banners pose as a sense of pride for people living in the tenderloin but also people that visit the transgender district just this year I attended the Harome Bay conference and got a chance to take black people in philanthropy on a tour of the transgender district to highlight the work that we do but to show them the sense of pride that these banners within the tenderloin show that transgender life is not only thriving but also supported here in San Francisco I please honor you to please help us away this fee so we continue continue our placemaking efforts within San Francisco to highlight not only the brilliance but the success of transgender life that the transgender district helps to promote along with the city and our community partners.

9:17

Thank you.

Discussion Breakdown — Share of Meeting
Corrections And Reentry█████████████████████████████████33%
Homelessness████████████12%
Procedural███████████11%
Miscellaneous███████████11%
Public Health███████████11%
Cultural Districts█████5%
Community Engagement████4%
Engineering And Infrastructure████4%
Property Lease███3%
Summary of Proceedings

San Francisco Budget and Finance Committee Meeting – May 27, 2026

This was a regular meeting of the San Francisco Budget and Finance Committee, chaired by Supervisor Connie Chan, with Vice Chair Matt Dorsey and Member Danny Sauter. The meeting covered 19 agenda items, including tax exemptions, grants, lease agreements, and contracts. Public comment was limited to one minute per speaker. The committee took action on all items, with several being sent to the full Board of Supervisors with recommendations, one continued, and one sent without recommendation.

Item 1: Parking Tax Exemption Extension for School Events

The committee unanimously approved an ordinance retroactively extending for 10 years (through December 31, 2035) an exemption from the parking tax for special parking events operated by volunteer-led nonprofits on school district property benefiting San Francisco public schools, with a $10,000 per-event revenue cap. The fiscal impact is minimal, with foregone tax revenue not exceeding $33,800 in any given year. The motion passed 3-0.

Item 2: Transgender District Banners Grant (Continued)

  • Background: An ordinance to waive competitive solicitation and authorize a $24,500 grant agreement with the Transgender District for placemaking banners in the southeastern Tenderloin.
  • Discussion: Chair Chan continued the item to June 3, 2026, to wait for a copy of the grant agreement. Public speakers spoke passionately about the importance of visibility for transgender and nonbinary communities, especially given national attacks on transgender rights.
  • Outcome: Continued 3-0.

Item 3: Ella Hill Hutch Community Center Lease (Continued)

  • Background: A resolution approving a lease for 1050 McAllister Street to Booker T. Washington Community Service Center for youth and family services at the Ella Hill Hutch Community Center, at $1 annual rent through June 30, 2027, with a six-month extension option.
  • Discussion: Public comment emphasized the importance of keeping the center in African American community hands. Reverend Amos Brown and other speakers urged careful community engagement and respect for the African American community's history and needs.
  • Outcome: Continued to the call of the chair 3-0.

Item 4: Pretrial Diversion Project Contract (Sent Without Recommendation)

  • Background: A resolution authorizing the Sheriff's Office to contract with San Francisco Pretrial Diversion Project for pretrial services (July 1, 2026 – June 30, 2029) for a total not-to-exceed $22.5 million, with a two-year extension option.
  • Discussion: The Sheriff's CFO presented performance metrics (96% safety rate, >80% appearance rates). The Budget and Legislative Analyst noted the Superior Court requested that adult probation assume pretrial services, proposing an $11 million annual in-house alternative. The Sheriff expressed need for at least one year for a thoughtful transition. Extensive public comment from pretrial staff, clients, and advocates opposed transfer to law enforcement, citing community-based trust and effectiveness. Supervisor Dorsey moved to send to full board without recommendation to allow further policy deliberation. The committee also noted intent to place second-year funding on reserve.
  • Outcome: Sent to full board without recommendation 3-0.

Item 5: 1455 Market Street Lease Amendment (Approved)

  • Background: A resolution approving the second amendment to the lease at 1455 Market Street, adding 502,000 rentable square feet for departments vacating One South Van Ness (city-owned, significant deferred maintenance) and other locations. Rent reset to $40 per square foot from January 2027, with 1% annual increases for 5 years then 3%, projected to save $59 million over the original lease term. Landlord contributing $97.9 million in tenant improvements.
  • Discussion: Supervisor Sauter noted benefits for the mid-Market corridor and civic center vitality. No public speakers.
  • Outcome: Approved and sent to full board with recommendation 3-0.

Item 6: PUC Emergency Firefighting Water System Contract Amendment (Approved)

  • Background: A resolution approving a $5 million increase (to $13 million total) for engineering design services for the potable emergency firefighting water system and water distribution pipeline projects, with no term change (through June 27, 2032). The amendment addresses unforeseen conditions and higher seismic design criteria.
  • Discussion: One public speaker opposed, citing concerns about infrastructure for catastrophic fires.
  • Outcome: Approved 3-0.

Item 7: Portsmouth Square Improvement Project Grant (Approved)

  • Background: A resolution authorizing Recreation and Park to accept a $1 million grant from California Natural Resources Agency for the Portsmouth Square Improvement Project in Chinatown (groundbreaking expected June 2026, completion October 2028). The park is the oldest public space in San Francisco.
  • Outcome: Approved and sent to full board with recommendation 3-0.

Item 8: Powell Street Improvement Project Grant (Approved)

  • Background: A resolution authorizing Public Works to accept a $14.5 million grant from the San Francisco Downtown Development Corporation for the Powell Street Improvement Project (sidewalk replacement, landscaping, lighting, cable car turnaround improvements). Total project budget includes $21.8 million in Prop B funds and $4 million in prior funding. Construction expected late 2026 to November 2027.
  • Discussion: Union Square Alliance CEO spoke in support. Supervisor Sauter emphasized maintenance planning for lights and curb ramps.
  • Outcome: Approved 3-0.

Items 9 & 10: Ukrainian Refugee Grants (Approved)

  • Background: Resolutions retroactively authorizing Human Services Agency to accept and expend grants for housing assistance ($1.8 million total) and refugee support services ($200,000) for Ukrainian refugees displaced by war. Services include rental subsidies, case management, and linkages to benefits, serving about 56 and 54 clients respectively.
  • Discussion: Chair Chan added herself as co-sponsor, citing large Ukrainian community in her district.
  • Outcome: Approved 3-0.

Item 11: Crisis Stabilization Unit Contract Extension (Approved)

  • Background: A resolution approving a $17.2 million increase (to $26.2 million total) for Crestwood Behavioral Health to operate the crisis stabilization unit at 822 Geary Street, extending the term through June 30, 2028. The program served 686 unduplicated clients this fiscal year, with only 6% diverted to psychiatric emergency services. Cost is about half of psychiatric emergency services.
  • Outcome: Approved 3-0.

Items 12 & 13: Medline Medical Supply Contracts (Approved)

  • Background: Resolutions approving amendments to contracts with Medline Industries for medical supplies—low unit of measure ($301.5 million total, through June 2030) and bulk supplies ($165 million total, through June 2030). Funded by the general fund.
  • Outcome: Approved 3-0.

Item 14: Behavioral Health Services Act Integrated Plan (Approved)

  • Background: A resolution approving the three-year BHSA integrated plan (FY26-29), restructuring funding under Proposition 1. The plan allocates 30% to housing interventions, 35% to full-service partnerships, and 35% to behavioral health services, reducing local flexibility for prevention and workforce programs. Five million dollars in workforce education and training reductions over two years were noted.
  • Discussion: Supervisor Chan expressed concern about cuts to programs like the City College addiction counseling certificate, workforce training, and early childhood prevention. She stated she approved the plan but wanted record of concern. The mayor's budget office said they would follow up.
  • Outcome: Approved and sent to full board with recommendation 3-0.

Items 15-19: Homelessness and Supportive Housing Contracts (Approved)

  • Background: Five resolutions for contract amendments/grants with DISH SF (property management, 450 units, $25.4 million), St. Vincent de Paul (Division Circle Navigation Center, $37 million; MSC South Shelter, $35.5 million), and Tenderloin Housing Clinic (three hotels, $42.5 million; 16 supportive housing sites, $303.6 million). Terms extended 18 months to 3 years.
  • Discussion: Public speakers from provider organizations and a resident highlighted the human impact. Supervisors noted program monitoring findings (e.g., service plan documentation) and expected corrective actions.
  • Outcome: All five approved and sent to full board with recommendation 3-0.

Key Outcomes

  • Approved to full board with recommendation: Items 1, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19.
  • Continued: Item 2 (to June 3, 2026), Item 3 (to call of chair).
  • Sent without recommendation: Item 4.
  • All votes were 3-0.
  • The committee emphasized need for transparency (grant agreements, lease documents) and community engagement (African American community, pretrial stakeholders).

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the May 27, 2026 meeting of the budget and finance committee. I'm Supervisor Connie Chan, chair of the committee. I am joined by Vice Chair, Supervisor Matt Dorsey and Member Supervisor Danny Sauter. Our clerk is Brent Halipa. I would like to thank Jamie Evercherry from EssexGov TV for broadcasting this meeting. Mr. Clark, 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 file, this should be submitted to myself, the clerk. Public comment will be taken on each item on this agenda. When your item of interest comes up and public comment is called, please line up to speak on the west side of the chamber to your right, my left along those curtains. And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the 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.j. Sf 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 1. 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 June 2nd, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. And today we will be limiting our public comments to one minute. And that would like to remind the public that we have our budget and legislative analyst reports for most of the item today. So the way it works will be we will have the department presentation first, followed by the budget and legislative analyst. Then this committee will take questions. And then we will go to public comments after all the discussion. So with that, Mr. Clark, please call item number one. Yes, item number one is an ordinance amending the business and tax regulations code retroactively to January 1st, 2026 to extend for 10 years to December 31st, 2035, an exemption from the parking tax and certain related requirements for a limited number of special parking events operated by volunteer-led nonprofit organizations on school district property to benefit school uh San Francisco public schools and earning less than 10,000 per event from rent. Madam Chair. Thank you. And before I call on the Office of the Treasurer and Tax Collector colleagues, I would like to make a brief remark just to kind of provide context of this legislation and how it came about. Um this legislation um or uh this ordinance reauthorizes and extends an existing long-standing exemption that allows parent teacher association to operate limited parking events on San Francisco Unified School District property without being subject to the property tax uh uh without subject to the property parking tax. Um the prior authorization expired at the end of 2025, so this legislation reenacts the program retroactive to January 1st, 2026 and extends it through December 31st, 2035. The program is narrow in its scope. Events must occur on San Francisco Unified School District property. The proceeds must exclusively benefit San Francisco public schools. The revenue from any individual event is capping at $10,000. So the fiscal impact is minimum based on reasons reporting, foregone parking tax revenue has not exceeded 30 3,800 in any given year. So with that, we'll go to the um our office of treasure and tax collector. I think you covered it great, so I'm happy to take any questions if you have any. My apologies. No, no, that's great.

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