This meeting will come to order.

I would like to welcome everyone to the July 22nd, 2026 meeting of the Budget and Finance Committee.

I am Supervisor Matt Dorsey, Vice Chair of this committee, and I am joined today by Supervisors Danny Sauter and Cheyenne Chen.

Our clerk is Mr.

Brent Halipa, whom we thank in advance for staffing and keeping us on track today as well.

We are appreciative for the entire team at SFGov TV for facilitating and broadcasting today's meeting, and that's especially true for our producer today, Mr.

Jaime Eschevery.

Mr.

Clerk, do you have any announcements?

Thank you, Mr.

Vice Chair, and just a friendly reminder uh reminder to those in attendance to please to make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings.

And 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 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 uh committee clerk at B R E N Tot J A L I P A at SFGO 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 the place.

Room 244, San Francisco, California, 941 and 2.

And finally, items acted upon today are expected to appear on the Board of Supervisors' agenda of July 28th, unless otherwise stated.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

Before we go to item number one, I would like to just remind our viewers and attendees that we have budget and legislative analyst reports for items number uh two, four, five, seven, eight, nine, ten, eleven, and eleven on today's agenda.

For those items, we will hear the department presentation first, followed by the budget and legislative analyst.

We will then facilitate questions from the committee and then invite up public comment.

However, before I ask Mr.

Halipa to call item number one, I need to make a motion, excusing Chair Connie Chan from today's meeting.

Uh Mr.

Clerk, may we have a roll call on that motion.

And on that motion, uh, do we excuse Chair Chant from attending today's meeting?

Member Sauter.

Sauter, aye.

Member Chen.

Chen, aye.

Um Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Mr.

Clerk, would you please call item number one?

Yes, item number one is a motion ordering submitted to the voters at an election to be held on November third, 2026.

An ordinance amending the business and tax regulations code to beginning March first, 2027.

Eliminate the real property transfer tax for foreclosure exemption for the transfer of all properties other than the transfer of residential and mixed-use properties with fewer than five residential units.

And to make other non-substantive clarifications to the real property transfer tax and increasing the city's appropriations limit by the amount of real property transfer tax collected for four years from November third, twenty twenty six.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

Um colleagues, we heard this and amended this item last week, and this was continued to allow the amendments to sit as they were substantive.

We have Sam Logan from Supervisor Machmood's office as well as representatives from OEWD if there are any outstanding questions.

I am familiar enough with this that I don't have any questions, but I will say to uh Ms.

Logan, you are welcome to say a few words from Supervisor Mockmood's office, although you are not required to.

Okay.

Uh then uh if not, I don't see any questions or comments or need to further discuss this.

Mr.

Clerk, may we invite up public comment on this item?

Uh yes, we are now opening public comment for this item number one.

If we have any members of the public, I wish to address this committee.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And seeing no further questions or comments, I would move to forward this initiative ordinance to the full board with this committee's positive recommendation.

Mr.

Clerk, may we have a roll call on that motion?

Yes, and on that motion that we refer this motion to the full board with a recommendation.

Member Sauter.

Aye.

Sodder, aye.

Member Chen.

Chen, aye, Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Congratulations, Supervisor Mockmood.

Mr.

Clerk, maybe we please call item number two.

Yes, item number two is a resolution approving the recreation and park department.

General manager's declaration of emergency under the administrative code for emergency dredging at the San Francisco Marina Yacht Harbor, estimated to cost in excess of 2.5 million.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

I think we I think well, I had uh Lorenzo Rosas from Supervisor Sherrill's office in my notes, but what did I uh Mr.

Rosli?

Welcome to the budget and finance committee.

The floor is yours, and then you can introduce the speakers.

Thank you.

Good morning by Chair Dorsey, Supervisor Sauter and Chen.

Um as stated, my name is Lorenzo Rosas, Chief of Staff to Supervisor Sherrill.

I am grateful for the opportunity to speak today on behalf of Supervisor Sheryl.

Just wanted to thank you for scheduling and hearing this item from the District 2 office's perspective.

We've heard consistently uh from Marina residents, boat owners, many clubs in the in the area, um, and pretty much uh to well-trafficked uh area about the need for a quick remediation to the sand buildup at the marina.

And uh we're grateful to Wreck and Park leadership, specifically Beverly Ng, General Manager Madland, um, and Antonio Geta, who we will hear from today.

Um thank you so much.

This resolution helps the city continue to execute on the important progress we have made on this uh issue so far, and Supervisor Sherrill hopes to have your support.

Um thank you again, Supervisors.

I'm here to answer any questions on behalf of the District 2 office.

Thank you, Mr.

Rosa.

And I think next we have uh Mr.

Antonio Guerra, Chief Financial Officer for the Recreation and Park Department.

Mr.

Gurrell, welcome to the budget and finance committee.

The floor is yours.

Thank you very much.

Good morning, Chair Dorsey and Budget and Finance Committee members.

My name is Antonio Guerra.

Uh and the resolution today that is in front of you would approve the emergency declaration issued by General Manager, Sarah Manlin and allow the emergency dredging of the Marina Yacht Harbor for an estimated amount of up to 2.5 million dollars.

The our recreation and park plan to dredge the Marina Harbor from February to March of 2026 via a 30-day contract with Marineship LLC.

After the bid process was conducted, notice to proceed was issued on February 10th.

However, Marineship did not initiate uh attempts at dredging until March 18th.

The contract was terminated on April 23rd due to inadequate and inoperable equipment and an inability to execute proper disposal uh by Marineship LLC.

So after that termination, uh there was a delay in the work, and sediment continued to build up as a result of this delay, leading to General Manager Madeline declaring an actual emergency authorizing emergency dredging.

Uh Dutra, the second lowest qualified bidder, was awarded the contract on April 28th, and they began to dredge immediately on April 29th.

However, their larger equipment was initially unavailable due to another uh job in Los Angeles.

Once larger equipment was available on June 15th, Dutro was able to remove approximately three times more sediment per day, completing the project by June 30th.

Uh we should note that Rec Park spent roughly 1.8 million dollars of the 2.5 million dollars original estimate as noted in the budget and legislative analyst report.

So we want to thank Supervisor Sherrill for his sponsors sponsorship of this legislation.

Thank you for your time, and uh I'm happy to answer any questions as well as project project manager Felix Tong on our staff.

Thank you, Mr.

Garrett.

We'll now hear from the budget and legislative analyst.

Good morning, supervisors.

Nick Menard from the budget legislative analyst office.

Item two is a resolution that would approve an emergency declaration for recreation and park to um procure contractors for dredging work at the Marina Yacht Harbor.

The resolution doesn't approve a particular contract.

It does suspend procurement rules and administrative codes, uh chapters six, twelve A, and fourteen B, as well as employment code 131 and 132.

We summarize the procurement process on pages two and three of our report.

Uh Wreck and Park used the second uh lowest cost bidder from a previous procurement after the first bidder did not complete the work.

The the dredging work is now complete.

Uh we summarize the costs on page five of our report.

It was 2.9 million dollars, uh, which includes 1.8 million dollars of the emergency dredging work.

That emergency piece will be funded by one million dollars um from a loan from the open space fund, and then about $800,000 from the marina fund, which is funded by uh fees charged to people who berth at the marina.

Uh the marina fund will repay the open space fund over the next seven years, and we do recommend approval of item two.

Thank you, Mr.

Minard.

Uh Supervisor Chen.

Thank you, Chair Doris.

Um, I think I would like to ask the department again for this question so we can share that information to the public.

So I know that initially we picked a lowest speed to start this project, and now that uh we figure out the lowest speed uh contractor is not able to uh fully uh uh complete the scope of the work.

And then we go we went back to the second uh bidder, I mean the second lowest.

Um I uh I I think I share it many times.

I think we would like to make sure that and how can we continue to find ways to improve process so then we can be cost effective in terms of like maybe not the lowest, but when you can you know calculating now that we have to spend more, maybe in the future, you know how what can we do to improve this process to prevent it happening again in uh in the future.

Would you elaborate you know what a department does the department have any any strategy that you have thought about to uh in terms of like preventing this kind of things happen again?

It's an excellent question.

And there's multiple things that we're looking at.

The first is uh for any future contract, asking potential applicants whether or not they have uh been unable to perform the work and release from a contract uh over the past five years.

We could also look at best value contracting as opposed to lowest bidder.

That is another option.

We also want to look at long-term contracts, uh, whether or not that would be more beneficial in in locking up a supplier long term.

Dredging is there's not that many companies that can perform dredging in the Bay Area.

And finally, we have initiated conversations with the Port of San Francisco as to whether or not we could also uh work together in the future since they also perform lots of dredging along the waterfront.

Thank you, Supervisor Chen.

Uh Supervisor Sauter.

Uh thank you, Vice Chair.

Um the BLA notes under fiscal impact that several marina capital projects will be delayed to provide funding for the emergency work.

If you could just share some more context on on what those projects are.

And um I wonder if they uh reference some of the other things I'm aware of happening in the area and and maybe you can share how this fits in or does or does not impact other things.

I know there's uh the the thought of a new park as you get closer to Fort Mason uh in the cove there.

I know there's also some um plan changes with a uh gas station on the water.

So can you share how this does or does not impact those pieces?

It's a great question because the projects listed within the BLA report are really about the ongoing maintenance of the current site.

The new park that would be, I guess it's for lack of a better term, the triangle next to the East Harbor.

Um that site by the Safeway, as well as um the potential uh move of the fuel dock.

Those are part of the East Harbor Remediation Project and funded by PG ⁇ E.

And so these projects specifically are really about the need for the work on site.

Rec Park in previous years has subsidized the marina as a whole with general fund subsidies.

Uh we recently uh had additional slipholder fee increases to eliminate that general fund subsidy and make sure that we are fully funding the annual maintenance on site, which is a type of um work that would be done with that money.

So we're talking about uh paving along the marina on the west side where there are uh patchwork going on.

Um additionally emergency power generator for the marina harbor office, remote electrical meter metering of West Marina boat power pedestals, uh the replacement of the West Marina electronic gate controllers with new hardware and receivers, um asphalt overlay with striping in the parking lot.

These are all not part of the East Harbor Rediation Project.

So it's really that annual maintenance piece supported by permit revenue that takes place at Marina Green, the rent by uh from the St.

Francis and the Golden Gate yacht clubs and the slip holder revenue.

Um it's really somewhat different.

I don't I don't think the East Harbor Remediation Project will be affected by this.

Thank you.

Uh Supervisor Chen, do you have further question?

Okay.

I wanted to ask um it's my understanding that there is a recommendation to um that the proposed resolution be amended to state that emergency work is estimated to cost 1.8 million instead of in excess of two and a half.

Is that uh I don't think that was my recommendation, but we don't need to make that right.

Okay, yep.

That's fine.

Okay.

Uh seeing no further questions or comments, uh let's invite a 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.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clark.

Public comment on this item is now closed.

And seeing no further questions or comments, I would move um to forward this item to the full board with our positive recommendation.

Uh, Mr.

Clerk, may we have a roll call on that motion.

And on that motion that we refer.

This resolution is the full board with recommendation.

Member Sauter.

Aye.

Soder aye.

Member Chen.

Chen.

Aye, Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Mr.

Clerk, would you please call item number three?

Yes, item number three is a resolution retroactively authorizing the recreation and park department to accept an expended grant from the California Department of Parks and Recreation from the General Fund specified grant for the Sunset Dune striping and signage project in the amount of 200,000 for a grant performance period starting July 1st, 2025 through June 30th, 2028.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

Um for this item, we are joined by Ms.

Tony Moran, grants manager for the recreation and parks department.

Uh Ms.

Moran, welcome to the budget and finance committee.

The floor is yours.

Thanks.

Thank you.

Um Chair Dorsey and budget committee members.

My name is Caitlin Hall.

I'm stepping in for um Tony Moran.

Um I'm the Partnerships and Capital Associate with the Recreation and Park Department.

Um so I support Tony on grants.

Um I am here along with my colleague Alec Schucknick to present a resolution retroactively authorizing the recreation and park department to accept and expend a grant from the California Department of Parks and Recreation.

The grant is designated for the Sunset Dunes striping and signage project in the amount of 200,000 for a grant performance period of July 1st, 2025 through June 30th, 2028.

A bit of background.

In July of 2025, RPD launched a community engagement public outreach process to understand the community's priorities for the new park and identify the need to improve signage, striping, and accessibility to ensure equitable, safe, and accessible use of the park for people of all ages and abilities.

The State of California Budget Act of 2025 appropriated $200,000 in the form of a general fund specified grant to support the striping and signage project.

The project will increase safety and clarity for pedestrians, cyclists, and other users of the park.

And just a note that the legislation is retroactive because the grant contract performance period began on July 1st, 2025, which was the beginning of the California state fiscal year 2025.

I am now going to hand it over to my colleague Alec Schucknick, the project manager on this project to provide a little more uh in-depth presentation on the eligible and proposed uses of the grant.

Thank you.

Thanks, Caitlin.

Uh good morning, budget and finance committee members.

Alex Schuknecht, project manager with Capital Division uh Reckon Park.

This grant will be used for new striping to improve safety and clarity of uses at Sunset Dunes, new crosswatch striping, uh yield stencils, and more to increase safety and visibility at the main park crossings.

Permanent signage, including yield signs for cyclists at crossings and no bike signs in the west side park zone.

A draft of that signage is shown below on your screen.

And if funds remain, uh they'll be used for additional accessibility improvements in the park.

Here's an image showing a snapshot of existing conditions at one of the crossings.

Um the east side of the park at the bottom of the page is a multi-use zone for cyclists, joggers, pedestrians, and other users.

The west side of the promenade uh at the top of the page is a park zone in which cyclists, the e-scooters, and other faster users are prohibited.

The safety improvements will be focused on the east side, as that's where cyclists, e-bikes, and e-scooters are allowed and where there are more interactions between slower and faster users.

Yield markings and lane narrowing will slow cyclists as they approach crosswalks.

Improved crosswalk striping and look stencils will help make pedestrians more aware that they're entering a multi-use space.

And directional lane striping will improve clarity and direction for cyclists and other users entering the park and as they use the multi-use zone.

Uh we've heard repeatedly that this is a key priority for park users.

And this is a great opportunity to make the park more welcoming and accessible for everyone, especially our seniors and young families.

If approved by the board, we plan to put this out to bid in the coming months and hope to be complete uh before the end of the year.

We respectfully ask for your support for this expect uh accept and expend.

Thanks for your time, and we're happy to answer any questions.

Thanks to you both.

Um I don't see anybody on the roster with questions and comments.

I will say for myself as a as a somebody who does a lot of biking and walking, I really do appreciate the um the value of striping and signage.

I think it's not just something that increases um the safety uh for those who are doing it, but I need also knowing that it's going to be safer, I think also increases the likelihood that people will bike and and walk and use parks like Sunset Dunes.

I'm happy to support this.

Um seeing no one on the roster with questions or comments.

Mr.

Clerk, why don't we open this item up to public comment?

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

If we have any members of the public wish to address this committee.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And I would move to forward this resolution to the full board with our positive recommendation.

Mr.

Clerk, may we have a roll call on that motion?

Yes, and on that motion to refer to the full board with recommendation.

Member Sauter.

Soder, aye, member Chen.

Chen, aye, Vice Chair Dorsey.

I.

Dorsey, aye.

We have three eyes.

Thank you.

The motion passes.

Thank you.

Thanks.

Mr.

Clerk, can you please call item number four?

Yes, item number four is an ordinance amending the police code to prohibit the retail sale of nitrous oxide with exceptions for medical or dental procedures, research and development, manufacturing or industrial operations and food product purposes.

Make violations of the prohibition and infraction or misdemeanor, subject to imprisonment and or a fine.

Authorized a director of public health to enforce the prohibition and make violations of the prohibition a public nuisance, subject to administrative fines, civil penalties, and revocation of a tobacco sales permit.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

I will turn it over to my colleague whose leadership on this issue I really respect.

Supervisor Sauter.

Thank you, Vice Chair Dorsey.

And I do have amendments today on this legislation.

They have been circulated.

They will be a substantive, so I'll be asking at the end here that we continue this to the next meeting.

The amendments as circulated start on page four, and that is the most significant piece, which adds language to clarify that a display of nitrous oxide could uh trigger this legislation.

Uh as well, we have clerical improvements on pages five and six.

Um a little bit of background first on you know why I'm bringing this forward and and speaking to the the problem that is becoming more and more apparent here in San Francisco, but also frankly nationwide, um, which is that nitrous oxide, which many know as laughing gas or whippets, does pose real health risks.

Research has shown that repeated use can lead to serious and potentially life-threatening health complications, including nerve damage, psychosis, and heart attack.

One U.S.

study identified that nitrous oxide deaths increased 600% from 2010 to 2023.

Another study showed that emergency room visits from nitrous oxide misuse have spiked by 500% since 2019.

And in Southern California, the San Diego County Sheriff's Crime Lab has noted an uptick in cases of suspected driving under the influence of nitrous oxide, including 18 car crashes in just a one-year period.

I'm really happy uh to share the support that we've received on this legislation, of course, from co-sponsors, including uh Supervisor Wong, Mahmood, Cheryl, Melgar, and Dorsey, but also from the physicians and medical professionals at the SF Marin Medical Society.

We've also heard support from Recology and Teamsters 350, because they have noted an uptick in explosion of nitrous oxide canisters at their facilities, which risk fires and are a safety hazard to their workers and employees.

I think most powerfully, though, um, has been hearing from individuals themselves who have come forward and shared their personal stories with me about getting hooked on this and thanking us for carrying legislation to make sure that this does not happen to more people.

We do have the police department and department of public health here today available for questions, and I appreciate their partnership on this.

We've had really productive conversations about how we get the enforcement, the operations, the administration of this right, and I think that's really, really important because we want to get this passed and made make sure that it is effective.

I think what I want to stress though is as we um dig into some of the uh the questions in the BLA report on this is that um I have a strong feeling that this ban is going to happen one way or another, and we need to be ready from an operations and administrative perspective to admit to apply it.

Dozens of cities and counties across our state have recently passed bans, including San Mateo, San Jose, Santa Cruz, Mendocino, Humboldt County, Newport Beach, Orange County, and Anaheim.

And in fact, there is a state-level ban being contemplated in Sacramento right now, not only a state level ban, but our own congressman Kevin Mullen has introduced a bill for a federal ban of the retail sale of nitrous oxide.

Um so we have a chance to be uh a bit of a leader on this, but I think it is coming one way or another, and we should prepare um to be ready to administer.

Um with that I'll do share SE colleagues, um so I'll turn it over.

Uh thank you, Vice Chair.

Thank you, Supervisor Sauter.

And next we will hear from the budget and legislative analyst, uh, Mr.

Manard.

Item four is an ordinance that amends the police code to ban the retail sale of nitrous oxide in San Francisco.

The ordinance provides exceptions for commercial and specialized uses.

Uh the ban uh would be effectuated through uh criminal, civil and administrative fines of up to a thousand dollars each and/or jail time of up to six months.

The Department of Public Health, law enforcement, and the city attorney uh receive authority to uh issue these fines.

We showed the fiscal impact on page 10 of our report.

This would cost about $600,000 a year.

That's similar to the existing uh tobacco enforcement activities undertaken by uh public health and the police department and consists primarily of $1.4 uh FTE of environmental health inspectors and then um one police officer on overtime for about half their productive hours.

We have a survey of other jurisdictions, which we summarize on page 12 of the report.

Uh you can see that this or ordinance is very similar in its um criminal penalties of up to a thousand dollars a month and/or jail time.

Other jurisdictions, some of them don't add the administrative or civil penalties, but there's also ways in which this ordinance in San Francisco doesn't go as far as other jurisdictions.

For example, by revoking a business license for a vendor who violates the ban or providing liability for landlords whose tenants are uh violating this ban.

Uh we also, in our conversations with the entities that would implement this ordinance in San Francisco, we determined that the city lacks systematic data about the scope of the problem.

Um, and in part for the and it's because there's no existing enforcement of uh nitrous oxide regulations.

It is right now today already illegal to sell to minors.

Uh vendors have to keep written transaction records that identify the buyers.

Um and it's illegal to sell or um have nitrous oxide if your intention is to get high.

Uh so there's no existing enforcement um that criminal conduct.

Having said that, we do think that the board would benefit from additional information at a couple different intervals over the next year and a half.

One is a report from the Department of Public Health and the Police Department by June 1st, 2027 about the scope of the problem.

We've sent some examples of what other counties have done as part of their policy making process that could then inform the budget process to the extent that these estimates of the um enforcement activity that's necessary to mat you know it may need to be sized up or sized down depending on the scope of the problem.

And then, second, a report from environmental health police, district attorney, and city attorney by the end of the calendar year, December 2027 on enforcement actions taken as a result of this ordinance and any changes, you know, legislative changes that would be necessary to address the scope of the problem from the first report.

But we do consider approval of item four to be a policy matter from the board.

Thank you, Mr.

Manard.

Uh Supervisor Chen.

Thank you, Chair Dorsey.

Um I would like to ask uh a question to the BLAA.

This legislation appeared to be an unfunded mandate and requires funding of positions that aren't necessary and mounted in the budget that we had we just passed, which you also outlined it.

Uh and but could you also clarify if this legislation is requiring an amendment to the ASL.

I don't think it would require, it would necessarily require an amendment to the ASO.

The as we noted on page 10 of our report, the Department of Public Health, which is going to be carrying out the inspections of these vendors, they have several vacancies in the environmental health inspector classification within their general fund.

That could be filled and reassigned to this purpose.

And in our conversations with the police department, they said that they could absorb the 120,000 of overtime.

It will may require deprioritizing other work in the meantime.

So there is a bit of a trade-off.

Got it.

And then for Supervisor Salter, I we hear we I we just outlined it, you know, DPH, the PD, it's conducting a study and it's likely to be complete on June 1st, 2027.

Are you open to delaying the staff this legislation until the study is completed so then we can have more clarity and funding in order to identify the scope of work?

Through the through the chair, um thank you for the question.

Um the the recommendation from the BLA was to collect data at two different points.

And you know, I think uh Mr.

Menard said it well, which is that part of the reason we don't have this data is that there has not been this enforcement.

Um early on in conversations with Department of Public Health, and they can certainly speak to this as well.

We asked them for specifics around this, and the they did not have specifics on this, but there was a general sense that this is a growing problem in San Francisco.

I referenced some of the data from other counties and cities and in uh around California because there's better data from there.

Um but between conversations with them, between some of the outreach we've heard from individuals, certainly from medical professionals, some of the um the board members, in fact, of the SF Marin Medical Society or physicians who have treated patients themselves.

Um at the Chinatown Public Health Center, uh, in fact, and you know, hearing from them, it's it's it's clear to me that there is this is a problem.

The two recommendations from the BLA around additional data, I intend to solicit through a future LOI.

Um but between that and the fact again that there are efforts at the state level and at the federal level, um, I'm not inclined to delay this because I think this is going to happen one way or another, and I think that um we should use this time now to really um you know, to to pass this, implement it.

And one of the recommendations is for a uh a mid-year check-in next year on how this enforcement is actually going, um, and that'll give us a chance to improve in the early days.

Thanks.

Thank you, Supervisor Chen.

Thank you, Supervisor Sauter.

Um I would just say that um especially knowing that there are neighboring jurisdictions um that have enacted bans on this to me argue strongly to uh implement this if only for the deterrent value.

Um, you know, being a jurisdiction that has less permissive um or more permissive uh policies than neighbor neighboring jurisdictions can sometimes create a magnet effect that we know and have documented in other um drug policy areas.

So I think this is something that um should be implemented, and I'm rooting for the state and federal legislation if it comes, but I do appreciate um Supervisor Sauter's leadership on this and helping San Francisco be a leader on it.

Um seeing no one else on the roster of Mr.

Clerk, may we invite up public comment on this item.

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

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

Uh my name is Jack Pereira, um, and thank you for t spending the time to listen to me today.

Um I think I can speak for everyone here.

I love San Francisco.

I have had the privilege of going up to the city every single weekend since growing up, and I've worked here for about seven months now, and I love it, and I hope to continue doing so in the future.

Um but even if I love the city, I can tell that we face a lot of issues here.

You know, some might be homelessness, right, the fentanyl epidemic, um, and there's the issue of the budget, especially when we're dealing with a hostile federal government as well, right?

So we're dealing with a lot of issues.

But we're not here really to talk about those issues.

We're here to talk about nitrous oxide, right?

Now, my personal experience, my anecdotal experience, I don't really see it as an issue.

None of my friends really do nitrous oxide, I don't do nitrous oxide, right?

But we shouldn't really rely on my anecdotal experience for policy, right?

We should look at the data, we should look at studies, which would we talked about earlier.

Um but there is none specifically for San Francisco, right?

And I would urge before we're spending $600,000 of taxpayer money that we're very cognizant about making sure that each dollar gets used effectively, right?

And I'd like to be able to narrow the scope on this ordinance to make sure that we're spending each dollar effectively, not just doing blanket when there is no data, there are no studies about how nitrous oxide is being used in San Francisco.

Because the application isn't in other counties, it's in here at San Francisco.

And so I urge you to kind of listen to the BLA, take those recommendations about doing the study, narrow the scope on that, and thank you for your time.

And thank you much for your comments.

Next speaker.

Hi good morning, supervisors.

My name is Carolyn Gusin, and I'm here from the public defender's office.

And we submitted a letter to the board alongside a number of civil rights and community organizations sharing some concerns with the ordinance as currently drafted.

We understand that the misuse of nitrous oxide can cause real harm.

As a mother, I am also aware of that.

And we share the goal of reducing harm and protecting public health.

One of our primary concerns with the ordinance as drafted is that it commits substantial funding to enforce a problem that the city has not yet measured or studied, as the BLA noted.

The BLA estimates that the ordinance would cost approximately $600,000 a year to enforce from the general fund, most of it through new environmental health staffing at DPH, with the remainder in police department overtime to accompany inspections.

We urge the board to refrain from funding and enforcing this ordinance until the data shows a genuine local problem that enforcement of existing laws cannot address.

And secondly, we respectfully request that new criminal enforcement be removed from the ordinance.

The conduct outlined is already unlawful under state law, and the ordinance also lays out harsher penalties than the statewide ban that is currently moving through the legislature.

We urge the board to instead consider targeted civil and administrative tools where necessary and targeted where the data really shows, together with a public education campaign aimed at spreading information about the public health risks of nitrous oxide, especially for young people.

Thank you for your consideration.

Thank you much, Carolyn Goodson.

Next speaker.

Good morning, supervisors.

My name is Elya Romero, and I'm a lifelong resident of the Bay Area.

I read earlier this year that in the midst of San Francisco's budget crisis, the public health department announced a decrease of 40 million dollars in their budget across the next two years.

The public health department is responsible for a significant amount of San Francisco's health programs with the potential to genuinely impact the lives of its residents.

These programs help immigrants, those that are underprivileged, young mothers, and many more.

I don't believe that the impact of nitrous oxide comparison necessity of these of these.

And as I read, uh, the maternal child and adolescent health unit lost multiple of their administrative roles as a result of these budget cuts.

The unit as a whole has been impacted by these losses.

Right now, the City of San Francisco does not need to put more money into new legislation for the issue of nitrous oxide when the same money could have a much more direct and significant impact in other places.

Therefore, I ask that you take this funding of $600,000 and put it towards existing programs with the public health department like the maternal child and adolescent health unit.

Thank you.

And thank you much.

Seeing no other speakers.

Mr.

Vice Chair, that completes our cue.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

Supervisor Sauter.

Thank you, Vice Chair.

As mentioned, these amendments today are substantive, so I would uh ask that we accept these amendments as read into the record and then continue the item to the next next budget and finance committee meeting.

Thank you, Supervisor Sauter.

Mr.

Clerk, may we have a roll call on that motion?

And on that motion by Member Sutter that we amend the ordinance as so read into the record and that we continue this ordinance to the September 2nd meeting of this committee as amended.

Member Soder.

Soder I.

Member Chen.

Chen, I.

Vice Chair Dorsey.

Aye.

Dorsey, I we have three ayes.

Thank you, Mr.

Clerk.

Uh the motion passes.

Congratulations, Supervisor Sautter.

Mr.

Clerk, can we please call item number five?

Yes, item number five is a hearing to consider the release of reserved funds to the Sheriff's Office placed on the budget and finance reserve by the annual appropriation ordinance of fiscal years 2025 to 2026, and the total amount of approximately 1.1 million, 25,000 to fund additional rent of 70 oak grove, approximately 94,000 for the expansion of software licensing fees, four body worn cameras to all deputies, and one million for salary and fringe spending for operational needs for personnel staffing.

Thank you, Mr.

Clerk.

We are joined today by Mr.

Patrick Leong, uh Chief Financial Officer for the Sheriff's Department.

Uh Mr.

Long, welcome back to the budget and finance committee.

The floor is yours.

Thank you.

During the budget uh for fiscal year 2026, uh there were four items that were placed on reserve by the budget and finance uh appropriation committee.

The Sheriff's Office is requesting the release of three of these items, which I will uh go through one by one.

The first item is a $25,000 reserve hold on property rent.

The Sheriff's Office is paying a holdover rate at 78 Grove.

This location serves as the office for our alternative programs and also our electronic monitoring program.

The Sheriff's Office has been paying or was paying approximately 40,000 per month.

But this lease expired approximately May 2024.

We've been paying the holdover rate since that time, and currently the holdover rate is approximately 42,000.

The Department of Real Estate has been trying to negotiate a long-term lease with the landlord for this location.

The last update that I received was that the discussions have felt through and at present the barring a new agreement with the landlord.

The Department of Real Estate will be looking for a suitable alternative location.

The Sheriff's Office is requesting the committee to release the $25,000 for property rent.

The next reserve hold is uh a 90 approximately $93,000 reserve hold for software licensing fees.

This item is associated with the expansion of our body worn camera project.

It the expansion is to outfit all of our deputies with body worn cameras.

We completed a contract amendment with Axon in early April of this year, and at present, the Sheriff's Office has paid approximately uh 1.45 million for body worn cameras.

There is a remaining $50,000 invoice associated with uh training on the use of this equipment.

And we're waiting for the completion of the training before we pay this invoice.

The Sheriff's Office is requesting the committee to release the $93,000 reserve hold on the software licensing fees.

The last item is uh a million dollars in salary infringed uh budget.

This is split between uh $500,000 in general fund operating and $500,000 in our work order fund.

The for general fund, the sheriff's office during the last fiscal year, we hired uh $118 deputies, new deputies, um, well past our original goal of $75.

And this has added to our personnel costs.

Um additionally, for the work order fund, we have increased our services to both the uh courts and also to uh public health in increasing the security needs at General Hospital and Laguna Honda Hospital.

In total, we're requesting the release of uh a million dollars in the Sally Infringe spending to cover the operational needs for the general fund and also our work order fund.

If there's any questions that the committee may have, uh we're more than happy to answer them.

Thank you, Mr.

Leong.

Uh, next we will hear from the budget and legislative analyst, uh, Mr.

Minard, the floor is yours.

Item five is a hearing that would release 1.2 million dollars uh of the Sheriff's Office uh fiscal year 2526 general fund budget that was placed on committee reserve uh in June 2025.

We summarized the reserves on page 17 of our report and use of these funds uh is basically part of the budget balancing solution that we discussed last week.

Uh so we recommend approval of item five.

Thank you, Mr.

Minard.

Um I don't have any questions and I don't see anyone on the roster with questions.

Thank you, Mr.

Uh Leo.

Uh Mr.

Clerk, may we open this item up to public comment?

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

If we have any members of the public questions to address this committee.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

Um seeing no further questions or comments, I would move to approve the proposed release of reserved funds and for this hearing to be heard and filed.

Uh Mr.

Clerk, may we have a roll call in that motion?

Yes, and on that motion that this committee approves the release of the reserve funds to the sheriff's office and that this hearing be heard and filed.

Member Sauter.

SOTRI, Member Chen.

Chen, I, Vice Chair Dorsey.

I.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Mr.

Clerk Clerk, could you please call item number six?

Yes, item number six is a resolution authorizing the Office of the Treasurer and Tax Collector to accept and expend the grant in the amount of 250,000 from the Jane Trevetti Fund for the purpose of increasing juror per diemes to qualifying low-income jurors in criminal cases in the San Francisco Superior Court from August 1, 2026 through July 31st, 2031.

Thank you, Mr.

Clerk.

We are joined today by Amanda Freed from the Treasurer and Tax Collector's Office.

Ms.

Freed, we welcome you to the Budget and Finance Committee.

The floor is yours.

Thank you, Supervisor.

Thank you for having me today.

This resolution lets the Office of the Treasurer and Tax Collector accept and expend a $250,000 grant from the Jane Trevetti Fund for the Be the Jury program.

Jurors in California are paid just $15 a day.

That forces working people, caregivers, and self-employed San Franciscans to decline jury service, and it disproportionately excludes low-income communities and communities of color from a constitutional right trial by a jury of one's peers.

Be the jury was built to close that gap, raising the stipend to $100 a day for eligible low-income jurors.

At $100 a day, the results were very strong.

84% of participants said they could not have served without the stipend, and 11% of all San Francisco jurors served through this program.

Median participant household income was about $38,000, far below the citywide median, and participants were more racially diverse than San Francisco's registered voters.

This grant helps us keep this program alive with every philanthropic dollar going directly to stipends and no city overhead.

But we are still short of full funding, and that has real consequences.

With this grant, we can maintain the program for one more year, but we will need to reduce the stipend to $75.

This is a public safety program as much as an economic justice program.

Representative juries strengthen the legitimacy of verdicts, reduce mistrials and delays, and build public trust in the courts.

That's why Be the Jury represents a rare, fully aligned partnership.

The District Attorney's Office, the Public Defender's Office, the Superior Court, the Bar Association of San Francisco, and our office all agree this program strengthens fairness and efficiency in the justice system.

We look forward to continuing to work with all of our partners and with public and private sources of funding to restore this program to $100 a day for low-income jurors so that every San Franciscan can enjoy what the Constitution guarantees a jury of their peers.

Thank you.

Thank you, Ms.

Freed, and I would just express my appreciation to Treasurer Cisneros for his leadership on this and to you and the whole team for your work identifying philanthropic dollars.

I think I heard the message loud and clear.

This is a program that works.

It's really hard to argue with success that this is showing, and I think hopefully next year's budget we'll have some conversations about how to make sure that this kind of success is funded.

I don't see anybody on the roster at this time.

Mr.

Clerk, may we open this item up to public comment?

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

Now is your opportunity.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And seeing no further questions or comments, I would move to approve this resolution and forward it to the full board with our positive recommendation.

Mr.

Clerk, may we have a roll call on that motion?

Yes, and on that motion to refer to the full board and recommendation.

Member Sauter.

Sauter aye.

Member Chen.

Chen, aye.

Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Congratulations to the Treasurer.

Mr.

Clerk, can we please call items seven and eight together?

Yes.

Item number seven and uh eight are resolutions approving the third amendments to contracts between the city and county acting by and through the Office of Contract Administration and Resource Design Interiors for System Furniture, extending both terms for September from September 14, 2026, and authorizing the Office of Contract Administration to make necessary nonmaterial changes to the amendment prior to its final execution by all parties that do not materially increase the obligations nor liabilities to the city and are necessary or advisable to effectuate the purposes of the agreements.

Item number seven increases the amount by 1.63 million for a total not to exceed amount of 10.6 million for a total term of nine years from September 15, 2020 to September 14, 2029.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

We are joined today by Angela Yip with the uh City Administrator's Office.

Ms.

Yep, it's good to see you again.

Welcome to the budget and finance committee.

The floor is yours.

Thank you, Vice Chair Dorsey, Supervisors Sodder and Chen.

Angela Yep, representing today the Office of Contract Administration.

We are here today to with to request your approval of two contract amendments for term contracts OCA maintains to help all city departments purchase furniture for their offices, workspaces, and public facilities.

These contracts secure pricing, standardize quality, and help departments save time and money by making it easier and less costly for them to purchase, deliver, and install furniture.

So the first request before you today is to authorize OCA to amend the term contract with resource design interiors, or RDI for short, for various seating lines, delivery and installation, extending the term by three years, and increasing the not-to-exceed amount by $1.63 million to a total not to exceed of $10.63 million.

The second request before you is to authorize OCA to amend the term contract with RDI for various furniture lines, project management, design, delivery, and installation, extending the term by three years, three months, 17 days, and increasing the not-to-exceed amount by $8.75 million for a new total of $17.75 million.

So the first of these two contracts was awarded in August 2020 following a competitive solicitation process.

It was amended twice and neither time increased the not-to-exceed amount.

Since execution departments have encumbered a total average of $77,000 per month against this contract approximately.

And based on prior spend and anticipated future needs across city departments, this current balance is not sufficient to meet citywide business needs.

The second contract before you was awarded in December 2020 following a competitive solicitation, and similar to the previous contract, we have amended it twice, but neither time increased the not to exceed.

Departments have since execution encumbered a total average of roughly $120,000 per month against this contract, so increasing the not to exceed amount will meet anticipated future citywide needs through the end of the proposed term.

And we are happy to answer any questions.

Thank you, Ms.

Yep.

Next we'll hear from the budget and legislative analyst.

Mr.

Mernard, the floor is yours.

Item seven and eight are two resolutions that approve amendments to OCA contracts with resource design interiors.

These contracts allow departments to buy office furniture.

The amendments extend the agreements through December 2029.

We discussed the basis of the not to exceed amounts of each contract on page 23 of their report.

They are based on historical spending of about 2.3 million dollars across both contracts per year projected forward plus known uh furniture purchases over the next couple of years.

We recommend approval of both resolutions.

Thank you, Mr.

Mernard.

I appreciate the presentation from both of you.

Um I have no questions or comments and see none on the roster.

Mr.

Clerk, may we open this item up to public comment.

Yes, we are opening public comment for both of these items seven and eight.

If you have any members of the public who wish to address this committee.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And I would move that we approve both resolutions and forward them to the full board with our positive recommendations.

Mr.

Clerk, may we have a roll call on those motions on that motion.

Yes, and on that motion that we refer both resolutions to the full board with the recommendation.

Member Sauter.

Sodder, I, Member Chen.

Chen, I, Vice Chair Dorsey.

Aye.

Dorsey, I.

We have three ayes.

Thank you, Mr.

Clerk.

The motions pass.

Mr.

Clerk, can you please call items nine and ten together?

Yes, item numbers nine and ten.

Our resolutions approving and authorizing the director of property on behalf of the mayor's Office of Housing and Community Development for the following, and authorizing the director of property and or the director of MOCD to make certain modifications to the respective agreements and any other related actions in furtherance of the respective resolutions.

Item number nine acquires real property located at 758 Pacific Avenue from New Asia Housing LP for approximately 2.2 million Honduran agreement or purchase and sale for real estate, placing 78 Pacific under the jurisdiction of Mo CD for use in constructing affordable housing, approving and authorizing a third amendment to the loan agreement with the residential borrower in a total amount not to exceed approximately 13.6 million to finance pre-development costs associated with the project, to enter into a residential ground lease, to lease a portion of 78 uh Pacific and 772 Pacific to the residential borrower for a term of 75 years with one 24 year option to extend and an annual base rent of 100 dollars, plus an annual monitoring and administrative fee of 15,000 in order to construct a residential project to enter into a commercial ground lease with C C D C New Asia Commercial LLC to lease a portion of 772 Pacific for a term of 75 years with one 24 year option to extend and an annual base rent of $1 in order to construct and operate certain commercial space for community serving purposes on the commercial property, adopting findings, declaring

Approving and authorizing a third amendment to the loan agreement with the residential borrower in a total amount not to exceed approximately 13.6 million to finance pre-development costs associated with the project to enter into a residential ground lease to lease a portion of 78 uh Pacific and 772 Pacific to the residential borrower for a term of 75 years with one 24 year option to extend and an annual base rent of 100 dollars plus an annual monitoring and administrative fee of 15,000 in order to construct the residential project to enter into a commercial ground lease with CCDC New Asia Commercial LLC to lease a portion of 772 Pacific for a term of 75 years with one 24 year option to extend and an annual base rent of $1 in order to construct and operate certain commercial space for community serving purposes on the commercial property, adopting findings, declaring that the property is exempt surplus land pursuant to the California Surplus Lands Act, determining that the less than market rent payable under the residential ground lease and the commercial ground lease will serve a public purpose by providing affordable housing for low-income households in need and community serving commercial space to the residents of the project in accordance with the administrative code.

Adopting finance at the project and proposed actions are consistent with the general plan and the eight priority policies of the planning code.

Item number 10 is to partially forgive approximately 1.2 million of approximately 1.5 million in outstanding rent obligations and reduce the monthly base rent to 5,000 per month for the remaining duration of Shiu Yik, trustee of Shuyek Trust One, and Shuyik and Richard Tong, trustees of Robert Yek Exempt.

Assets trust as less, sir, and Honko Inc., Hong Kong So, an individual and Candy May Yu So, an individual has less C's, month to month occupancy to end on September 30th, 2026.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

For these items, we are joined by Mr.

Robert Baca, Housing Director from the Mayor's Office of Housing and Community Development.

Mr.

Baco, we welcome you to the budget and finance committee.

The floor is yours.

Thank you.

Good morning, Chair and members of the committee.

I'm Robert Backa, Director of Housing at uh Mo C D.

I'm joined by my colleagues at MOCD and our partners at Chinatown CDC.

Before you are files 26073 and 26074 for the senior housing project at 758 and 772 Pacific.

So project timeline, let me start with how we got here.

The City has owned 772 Pacific since 2017, and Chinatown CDC was selected to develop it in 2021.

When the property next door at 758 Pacific became available, the team acquired it.

The funding is coming together.

Last September, the project was awarded 32 million from the state multifamily housing program, and we expect a tax credit award worth an estimated 75 million in early August.

The road ahead is fast.

The tenants move out September 30th.

We return to the board this fall with a full financing package.

All the financing must close by February 2027, and construction will start in March of 2027 with homes opening up 2029.

Next slide.

So today's resolutions, these two resolutions help keep the timeline on track.

First file, 26073 is to as a development action.

It transfers 758 Pacific to the city to lock permanent affordability, approves the ground lease, and raises pre-development financing to $13.6 million.

Together, those steps let the project move forward towards construction in March of 2027.

The second file, 26074, deals with the current commercial tenant.

It lowers their rent to 5,000 a month and forgives a large portion of the rent that built up at the older restaurant rate during the pandemic.

In return, the tenant will leave September 30th, and the remaining balance is still owed to the city, and that's a real enforceable debt.

Next slide.

So these approvals are critical today.

First, it keeps the project in schedule.

These approvals protect the move out date and the February financing deadline.

If they slip, we risk of losing outside financing.

Second, it's a strong deal for the city.

Our action brings more than 100 million from state and federal tax credits.

Third, keeping the site occupied these last five years has saved the city money.

An empty site would have cost the city more than half a million a year to secure and to maintain.

And for and fourth, and most importantly, it protects the community asset.

New Asia Banquet Hall has been part of the block since 1987.

It's a place for jobs, foods, and gathering.

Right now I want to address uh some of the BLA recommendations before my closing remarks.

So in file 26073, it was recommended that we had a competitive procurement for the future commercial tenant, and we respectfully ask that this competitive procurement requirement not be added.

Currently, we use our MOCD commercial space underwriting guidelines for oversight and enforcement.

So every commercial, every future commercial tenant in a MOCD funded building must meet our commercial underwriting guidelines.

The sponsors are responsible for marketing and screening tenants.

Most CD will review letter of intents and leases.

And the tenants uh and the tenant use rent and terms all require our approval and must match the project's approved community serving goals with annual reporting uh due to MOCD.

Uh the second recommendation is for file two six seven two six zero seven nine four, a notice to the clerk.

Uh, we are happy to agree to this requirement.

Most CD will file the notice of change lease terms with the clerk of the board for the legislative file.

We propose one clarifying non-substant substantive uh amendment that within 30 days of the notice being sent to the tenant, most city will provide it to the clerk for inclusion in the official file.

And so I just want to read this amendment language uh right now.

So further resolved that within 30 days of the notice of the change and lease terms being sent to tenant, most city should provide such notice to the clerk of the board for inclusion into the official file.

And the third recommendation is to report back January 15th of 2027, which we are happy to do.

Um I just want to be clear that tenants on most city owned land are usually in the interim basis, given our commitment uh to funding and progressing affordable housing on our sites.

And so to date, we only have a handful of sites left under Most City management, and by March of next year, we'll be down to one site.

But we are happy to to come back and report in January of next year.

And so we respectfully ask that you recommend uh both that you approve both resolutions.

My team and I are happy to answer any questions.

Thank you so much.

Thank you, Mr.

Baca.

Next up we'll hear from Mr.

Bernard from the budget and legislative analyst.

Items nine and ten are two resolutions pertaining to an affordable housing uh development plan for 772 Pacific Avenue, which is a city owned site that will be developed by CCDC.

Uh the resolution in file two six oh seven nine three approves uh the acquisition of an adjacent parcel at 758 Pacific from C C D C for 2.2 million dollars.

Um, an amended loan agreement of $13.7 million to fund uh pre-development work, and then a commercial and residential ground lease for the commercial and residential components of the planned uh affordable housing project.

And then the resolution in 26074 approves 1.2 million dollars in rent forgiveness for the 772 Pacific tenant um so long as they vacate by September thirtieth, 2026.

We uh discuss the fiscal impact of these actions on pages 31 of the report.

There you'll also see a budget for uh the loan agreement.

We do have several recommendations uh given the kind of unusual nature of this transaction.

For file two six oh seven nine three, uh we do think that the board should request MOHCD and C C D C undertake a competitive process to identify a restaurant subtenant that has a demonstrated good business relationship with the city.

Um, this the this tenant has not paid rent since March 2020.

Um then so the proposal here from MOACD is to retroactively reduce their rent um to $5,000 a month to starting January 2021.

Um the restaurant has already agreed to pay 10,000 to over 10,000 a month to CCDC for their new space.

Um given the history of not paying rent and the fact that they converted to a grocery store in violation of the planning code for a couple years.

Um I do think it it would just be a good business practice for the city when it's providing below market rate financing uh for the development of commercial spaces to benefit privately owned businesses to undertake a competitive process to identify the business that has the most viability for that space.

For file two six oh seven nine four, uh that's the resolution approving the rent forgiveness.

We don't have any documentation of that.

There's no agreement in the file for that we got to review.

Um I'm not I don't believe it's even been drafted.

Uh I think that they perhaps is related to the to the timing issue.

Uh trying to move this before the board recess.

Um I don't think that that's a good practice for the board to be approving transactions without um documents.

Uh so but given the time-sensitive nature of this project, our recommendation is to at least submit the documentation afterwards, once it's finalized, um executed and sent to the tenant.

I think we were really struck by the fact that the tenant hadn't paid rent in five years and MYCD had not appeared to take action in that intervening time period.

And so I think it's worth a report back to the board by January 15th, 2027 from MYCD on the commercial tenants that are not paying rent or otherwise not in compliance with their lease terms and plans to bring them into compliance because I do think that is a risk for the city.

Thank you, Mr.

Minard, for your work on this and your diligence.

Supervisor Sauter.

Thank you, Vice Chair, and thank you as well to the BLA for flagging a number of these items.

And I think that you know this is a situation where we have to do our best to balance the scrutiny and importance of these recommendations with kind of weighing the community benefit that this project would bring, but also looking at the time and circumstances of a lot of these a lot of this which happened in the midst of the pandemic.

And I know this was a restaurant that worked with the community to quickly transition, maybe too quickly, we're finding out, but quickly transitioning from a restaurant to a grocery store and providing incredible benefits to the community in a really, really difficult moment.

And I think you're seeing that continue through with their persistence to many, many years later try and be that banquet hall, which we know is particularly important in Chinatown.

And I, you know, with uh the guidance here from MOHCD, I'm seeing that they're um adopting uh and following recommendations two and three uh and on item number one in terms of recommendations that they feel comfortable with the um commercial uh guidelines um and I think I feel comfortable with that as well.

Um, I want to appreciate uh we'll hear from a number of the community members that are here today and from Mr.

So as well, and I want to appreciate uh their work.

Um and I think this is something we are all looking forward to.

And and um after public comment, I will uh ask that we um uh make the amendments as recommended to take items two and three into accord.

Thank you, Supervisor Sauter.

Supervisor Chen.

Thank you, um Chair.

I do have questions for the department.

So can you elaborate, you know, lessons learned from this case?

You know, what can we do in the future to improve the process of holding our sub-leases to the same standards of a subgrantees?

Yeah, I mean, obviously the way this played out was was an ideal, and we completely understand where the BLA report um outlined.

Um, the the original we didn't assume the site um through land dedication, and we did assume this lease.

Um so I think the lesson learned is to essentially negotiate a new city lease before the assumed lease expires, not not to get too much into nuance.

I mean, we we had a lot of conversations with with uh with New Asia, um, but I just think the priority during the pandemic was survival, and we just wanted to support them.

And one of the largest tools, and we're not landlords, we're lenders.

We we we're all our our goal is and our focus is developing affordable housing.

Um the one tool that all landliners will have is the third of eviction, and we just never felt that that was the appropriate step for us to take.

It's it's too important of a community benefit.

It would be too costly to the city to have a vacant site.

And so in hindsight, I think it's just getting that new city lease in place a lot sooner.

Thank you.

Thank you, Supervisor Chen.

Um I appreciate everybody's uh presentation.

I appreciate the questions and comments.

I have none of my own.

Um but Mr.

Clerk, why don't we invite up public comment on this item?

Yes, we're now opening public comment if we have any members of the public who wish to address this committee regarding these items nine and ten.

That was your opportunity.

Good morning, members of the budget and finance committee.

Thank you for your time.

My name is Sydney Yi Siou, and I'm speaking on behalf of Chinatown Media Arts Collaborative, also known as CMAC.

We are committed to implementing a cultural campus in Chinatown's commercial district anchored by the iconic Empress of China building.

Um first and foremost, we want to express our appreciation for our district supervisor, Danny Sauter for authorizing this resolution for frignt forgiveness for Mr.

So in the New Asia restaurant.

Um CMAC is dedicated to being cultural steward of arts media and local connection, and our cultural campus is where Asian American artists, stories, institutions, and communities can thrive.

And we work closely closely with our small businesses to be Chinatow's social and economic engine.

Mr.

Soh and New Asia's restaurant are partners in strengthening Chinatown to connect residents, visitors, and everyone as a whole.

And together, we as a are a family that will uplift Chinatown's long-term success.

And for decades, this banquet hall has been one of those connect the dots places.

Under Mr.

Soh's management, New Asia was never just another restaurant.

It served as one of Chinatown's largest and most successful community gathering spaces where generations of San Franciscans celebrated weddings, birthdays, anniversaries, and community milestones, you name it.

Beyond family celebrations, New Asia also provided an affordable home for countless cultural activities that define Chinatown civic life, including Cantonese opera performances, ballroom dancing, concerts, nonprofit fundraisers, senior programs, cultural festivals, and community meetings.

New Asia is Chinatown's treasure, and we need more of it.

I'm joined by our collaborators support to support Supervisor Sauter's resolution and urge that this resolution passes with a strong yes.

Thank you.

Next speaker.

Good morning, supervisors.

My name is Jenny Lung, and I'm representing the Chinese Cultural Center and Foundation.

I want to thank the Board of Supervisors and Committee for considering supervisors' resolution.

The CCC just celebrated our 60th anniversary in October last year.

Supervisors, you were there to witness it and our commitment and contributions to the city.

Chinatown's vibrancy depends not only on our residents, but our ability to preserve our cultural heritage, to uplift our stories in our own voice.

Equally important, we understand that having a strong, thriving small business community, being able to welcome regional and international visitors is interconnected with strengthening our cultural infrastructure and community.

The future of Chinatown cannot be solely measured in housing units or commercial storefronts.

It also must be measured in where future generations continue to have a place where they can connect, where arts and culture can be created and celebrated and pass on.

The New Asia Banquet Hall has always served as a community gathering place and small business anchor.

And we are told by the community every single day that we need more of these cultural gathering spaces, not less.

And rising costs have really displaced so many long-standing community spaces and places like New Asia are increasingly rare.

The continued participation of the Soh family is so central to Chinatown's future.

Their partnership is critical to carrying on the successful revival of the New Asia as a community-centered cultural venue.

The current financial burden of accumulated rent and penalties could jeopardize the SO's family's ability to remain involved, which places the New Asia development, the housing, and the community banquet hall at risk.

For Chinatown to remain a living community rather than just a historic destination, it must continue to have places where working families, seniors, artists, performers, and community organizations can come together.

CCC respectfully urge the committee and the board of supervisors to the United States.

Thank you much, everyone for uh addressing this committee.

And before I call the next speaker uh to the members of the public, I I do have to note that we do have a prohibition against handheld signs in the chamber.

So uh, but as a as a compromise, don't hold it any higher than your head as people who may be sitting behind you are entitled to an unobstructed view to our proceedings.

Thank you much.

Next speaker.

Good morning, supervisors.

My name is Dixon Lee.

I'm submitting this comment on behalf of San Francisco Housing Authority Commissioner Sharon Lai on her individual capacity, who unfortunately cannot make it today.

Um dear uh Vice Sir Dorsey, uh member Sauter and Member Chen.

I'm writing in my individual capacity to support my strong uh for resolution authorizing the partial waiver rent owned by Mr.

Hanso in the New Asia market to the city.

Throughout my career in housing, community development and public service, I have seen firsthand that transformative projects are built on trust and committed community partners.

Successful development require not only public investment but also individuals and families who are willing to work with our city to realize a shared vision.

The future of the redevelopment site is one of those rare opportunities to create lasting public benefit by combining affordable senior housing with the preservation of an inreplaceable cultural institution in San Francisco's Chinatown.

Mr.

Hansel and his family have been have demonstrated that commitment.

Their willingness to partner in the vision for the future project has been instrumental in moving this development forward.

And on a personal level, I want to acknowledge Mr.

Sill's generosity and community commitment to Chinatown.

During my two decades as a service as both a city staff member and city commissioner, I have attended countless banquets and events at New Asia.

And regardless of the occasion, the family has always been willing to work with the committee host these gatherings.

This consistent partnership reflect a long-standing commitment to the civic engagement and investment in the future of Chinatown.

As someone who spent my career in expanding housing affordability, fostering local economic activities, and strengthening community, I understand how difficult it is to bring together financing partnership and public trust necessary to realize projects of this scale.

For these reasons, I respectfully urge supporters and survivors to approve this resolution.

Doing so will help preserve an important partnership, protect a significant public investment, and then third fieldship's benefit from much needed affordable housing and cultural institution at the heart of Chinatown.

Thank you, Mr.

Nixon Lee.

Next speaker, please.

Good morning, supervisors.

My name is Sharon Ng, speaking on behalf of Chinatown CDC to express our support for the resolution authorizing a partial waiver of rent owed by Mr.

Stowe.

As the community development organization that deals with affordable housing, tenant counseling, economic development, resident services, planning and policy.

We understand that policemaking and police building requires several strategies, but also community members that are willing to shepherd that shared vision of community.

Mr.

So is one of those community members consistently responding to community needs and collaborating with peers.

Before the pandemic, Mr.

Sow operated one of the last long-standing banquet halls in Chinatown, serving as a vessel for community building and continuation of cultural traditions.

When the banquet space no longer served the neighborhood in the way it could before, Mr.

So pivoted to operating a grocery store, offering pantry staples and essential groceries.

As a grocery store, Mr.

Sow also collaborated with C C D C on a feed and fuel voucher program, providing access to food for SRO families at the height of the pandemic.

Between responding to community need and partnering in the vision for the future mixed use affordable housing on the site, Mr.

So has demonstrated dedicated commitment to the fabric of Chinatown.

For these reasons, we urge the Board of Supervisors to approve this resolution.

Thank you.

And thank you much for your comments.

Next speaker.

Good morning, uh Supervisor Souter, uh, Supervisor Dorsey and Supervisor Chen.

Always a pleasure to speak before you.

Uh my name is Jeremy Lee, and I am president of the Rose Pack Asian American Club.

Uh I am here to uh voice our support for this resolution.

Chinatown Banquet Halls are at the center of community.

I know all of you have been to your fair share of Chinatown banquets.

And I want all of you to view this resolution as an investment in Chinatown and the community and the economic vitality of really the poorest neighborhood in San Francisco.

Chinatown has survived lockdowns, has survived Asian hate and survived waves of gentrification, help support a small business owner who is deeply committed to the future of Chinatown and its residents.

Please pass this resolution.

Thank you.

Thank you much, Shermili.

Next speaker.

Mr.

Vice Chair, it doesn't look like we have any more speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

Supervisor Sauter.

Thank you, Vice Chair.

I would ask that we uh make an amendment to uh accept the record accept the amendment rather on page four as read into the record by MOH CD and that we move both items to the full board with rec recommendation.

And the amendment uh is on item 10 in particular, but we move both items to the full board with recommendation.

Thank you, Supervisor Sauter.

Uh Mr.

Clerk, may we have a roll call on those on that motion?

Actually, Mr.

Vice Chair, ahead of that motion.

Um I don't think it was addressed uh at least as far as uh item number nine that uh there is a clarifying language offered by the department uh on it would be on the top of page seven, basically talking about the uh the project not being um not subject to um to sequel under AB uh 2011.

And we should accept that amendment also.

Sure, do it.

Yes, thank you, uh Mr.

Clerk.

And in that case, let's accept the amendments for both item nine and ten and move both items to the full board with recommendation, please.

Thank you, Supervisor Sauter.

Mr.

Clerk, may we have a roll call on that motion?

Yes, and on that motion by Member Sauter.

That we amend both the resolutions and items nine and ten.

And that we refer both resolutions to the full board with a recommendation as amended.

Member Sauter.

Aye.

Soder I, Member Chen.

Chen, I.

Vice Chair Dorsey.

Aye.

Dorsey, I.

We have three eyes.

Thank you, Mr.

Clerk.

The motion passes, and thank you, Mr.

Clerk, for keeping us on track.

Congratulations.

Mr.

Clerk, would you please call item number 11?

Yes, item number 11 is a resolution retroactively authorizing the directory of property to execute a lease between the city and county as landlord and the third street youth center and clinic as tenant for the second and third floors of the property located at 888 Post Street for a two-year term commencing on July 1st, 2026 for an annual base rent of $1, determining that the below market rent payable under the lease will serve a public purpose by providing a navigation center for transitional age youth experiencing homelessness in according in accordance with the administrative code, affirming the planning department's determination under CEQA, authorizing the director of property in consultation with the city attorney to execute the lease and make certain modifications and take certain actions in furtherance of the lease and this resolution and authorizing the director of property to enter into uh amendments or other modifications to the lease agreement that do not materially increase the obligations nor liabilities to the city.

Mr.

Vice Chair.

Thank you, Mr.

Clerk.

Uh, we are joined today by Dylan Schneider, Interim Financial Officer of the Department of Homelessness and Support of Housing.

Uh Ms.

Schneider, we welcome you to the Budget and Finance Committee.

The floor is yours.

Thank you very much, Chair Dorsey and honorable members of the committee.

Nice to be here.

Dylan Schneider, interim deputy director at HSH.

And I am thrilled to be here before you today on behalf of HSH to request approval for a new lease with Third Street Youth Center and Clinic for the second and third floors of the city owned property at 888 Post in Supervisor Sauter's district.

This lease would support the continued operation of the Lower Polk Transitional Aged Youth Navigation Center, which provides 24 hour shelter and services for young adults experiencing homelessness.

And I just want to clarify before I dive into the details, this proposal does not add beds or increase the number of young people served.

What it does do is allow the existing program to use more of the building so it can operate more safely and effectively and provide services and spaces that are better suited for counseling, health and wellness activities, and other supportive programming.

Perfect.

Thank you.

We will get the slides matching here.

So a little bit about the Lower Polk Tain Navigation Center.

As I mentioned, it is designed to serve young adults ages 18 to 27.

And it is operated by the Third Street Youth Center and Clinic.

So this population often has different needs than those of older adults experiencing homelessness, and a youth-centered environment can help young people feel safe, builds trust with staff, and remain engaged in services.

This program provides much more than a temporary place to sleep.

Young people have access to meals, secure storage, support support for pets and service animals, individualized case management, counseling, and housing focused assistance.

This program also connects participants with health and wellness services, education, employment opportunities, and other resources that can help them stabilize and move towards permanent housing.

So again, the purpose of this lease is to give the existing program more appropriate space.

Currently, sleeping areas, community activities, counseling, wellness programming, and other services all take place in a very limited footprint.

Access to additional floors will allow the program to separate these functions and to create spaces that better support the young people that are staying there.

For example, this lease and tenant improvements will allow staff to have more private and confidential areas for case management and counseling.

And the program will also have more appropriate space for on-site health and wellness services.

This will create a calmer and more trauma-informed environment while also improving day-to-day operations.

The proposed terms of the lease.

This lease would cover the second and third floor of the city-owned building at 888 Post Street, with the tenant and operator being Third Street Youth Center and Clinic.

It's a two-year term beginning July 1st, 2026, with an annual base rent of $1.

And a note that approving this lease does not create additional property-related costs for the city.

HSH already funds the building's property expenses, and these costs would not change as a result of this action.

Third Street has raised more than $1 million in private funding that would support improvements to the space through this lease.

And those improvements will be subject to the city's standard review and approval process.

And with that, thank you for your consideration and happy to take any questions.

Thank you, Ms.

Schneider.

We will next hear from Mr.

Menard of the budget and legislative analyst.

Item 11 is a resolution that retroactively authorizes a lease between HSH and Third Street Youth Center for the use of 888 Po Street, which is a city owned property.

The lease is two years through June 2028, and we summarize the other lease terms on pages 38 of the report.

The fiscal impact, the lease has minimal, the lease itself has a minimal fiscal impact because it's only a dollar per year in rent, and the city maintains the building.

But it does allow for our program for a youth shelter program to take place there.

That's $3.9 million a year, as we discuss on page 41 of our report of recommended approval of item 11.

Thank you, Mr.

Minard.

I have a quick question on for Ms.

Schneider.

It is my understanding that historically in San Francisco, our transitional age youth population is often disproportionately represented by people from the LGBTQ plus community, and I've at least heard anecdotally that especially in the current political environment, we're seeing there's there is more and more um transgender and gender nonconforming people who are really coming to San Francisco because this is a place of refuge, a place of sanctuary.

Do we have any numbers on that?

Or do we are do you are you aware that is that something that HSH is seeing, or is there a way to get data on it?

This is something that we track in both through our surveys with our annual point and or biannual point in time count, as well as in our annual sexual orientation and gender identity report.

Um I believe you are correct, at least in past years.

What we have seen is that there is a higher LGBTQIA population in young adults than we see in some of our other populations.

And that's why we do try to have you know culturally competent providers and services that can really support the needs of that population.

Great.

Thanks.

I really do appreciate that.

I don't see anyone on the uh the roster with questions or comments.

I appreciate the presentations um from both of you.

Uh Mr.

Clerk, why don't we open this item up to public comment?

Yes, if we have any members of the public who wish to address this committee regarding this item number 11, that was your opportunity.

Good morning.

My name is Michelle Roberts.

I am the director of residential behavioral health for Third Street Youth Center and Clinic, overseeing the behavioral health service at the TA Navigation Center.

Thank you to the Board of Supervisors for advancing this important project and to the budget and finance committee for hearing our current request request.

Thank you.

Uh the plans for this extended space include a full-scale wellness center for the residents of Third Street TANAV, developed in collaboration with the youth themselves.

The space is designed to serve our current needs and align with the youth's own holistic and culturally centered centered definitions of wellness.

Uh the space includes additional therapy offices for our growing behavioral health team, a large wellness room for therapy and life skills groups, exercise and other large space needs, uh a barbershop salon area, which is a touchstone of connection for many of our uh youth, and a computer lab to enable youth to seize job and educational opportunities in a digital age, as well as a small number of safe private monitor rooms where where youth could spend some time to come both body and mind.

These rooms are particularly important because our youth have little private space throughout the facility, and each use shares a large dorm room with 74 other roommates, which is challenging as you could likely understand.

Um these rooms as well as the other wellness areas would allow our youth suffering from trauma the trauma of being unhoused as well as many other personal systemic and behavioral health challenges to successfully manage those issues and achieve greater wellness.

This also benefits the rest of our city and neighborhood.

As youth engage in their own wellness, they are better neighbors to our fellow residents of our district three and better citizens of our fine city.

Here at this third street, we say healthy youth build healthy lives.

I'll add that healthy youth become healthy adults and sustain and build healthy communities.

I hope you see it fit to approve this measure, an investment in our community, our youth, and our future.

Thank you.

And thank you, Michelle Roberts.

And seeing no other speakers, Mr.

Vice Chair, that completes our queue.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

Supervisor Sautter.

Thank you, Vice Chair.

This um this uh 888 post uh sits in my district in District 3 in the lower Polkland, Lower Knob Hill neighborhoods, um, and I'm happy to support this.

Um I've seen the the space that they're seeking to expand to, and I do think it will uh benefit everyone.

This is a dense neighborhood without much open space, and I think this extra room will do a lot of good.

Uh I appreciate the work to work with um private philanthropy, particularly the Crankstart Foundation to support the build out and look forward to all the improvements and um the upgrades in the space.

So with that, I'd like to ask that we move this item to the full board with the recommendation, please.

Thank you, Supervisor Sauter.

Mr.

Clerk, may we have a roll call on that motion?

And yes, on that motion by member Sauter that we refer to the full board with recommendation.

Member Sauter.

SOTRI.

Member Chen.

Chen, aye.

Vice Chair Dorsey.

Aye.

Dorsey, I.

We have three ayes.

Thank you, Mr.

Clerk.

Congratulations, Supervisor Saudder.

The motion passes.

Mr.

Clerk, can we please call item number 12?

Yes, item number 12 is a resolution approving the 2026 grant application for the United States Department of Housing and Urban Development Continuum of Care Program with anticipated revenue to the city in excess of 16 million, and fulfilling the Board of Supervisors review and approval process for all annual or otherwise recurring grants of 5 million or more.

Yeah, Mr.

Vice Chair.

Thank you, Mr.

Clerk.

Uh, we welcome back Dylan Schneider.

The floor is yours.

Hello again.

Thank you for having me.

Dylan Schneider, interim deputy director at HSH.

Uh back here before you again today with a request for authorization for the Department of Homelessness and Supportive Housing to apply for funding through HUD's fiscal year 2026 continuum of care competition.

This funding, I should say this federal funding is essential to maintaining housing and services for people experiencing homelessness in San Francisco.

We do have some slides and I'm sure it will be up in a moment.

There we go.

Uh so the resolution before you today author would authorize HSH to submit San Francisco's application for the 2026 Continuum of Care Grant Competition.

Board approval is required due to the fact this is a recurring federal grant of more than five million dollars.

These funds currently support housing services, coordinated entry, and our homeless management information system, as well as broader system coordination.

Authorization to apply allows HSH to complete the local competition and submit the city's final application to HUD by the federal deadline of August 26, 2026.

There's a slight typo in this slide.

Apologies.

The continuum of care funding is San Francisco's primary federal funding source that's dedicated specifically to homelessness.

The city received about $56.1 million in the 2024 competition, and the 2025 contracts were extended without a new grants competition by HUD.

We are now coming to the 2026 competition, which will determine whether that federal investment continues and how much risk our housing and service providers face with changes from the eligibility of the grant.

So the 2026 competition is substantially more competitive.

The relatively protected tier one is now limited to 60% of renewal demand compared to with roughly 90 to 95 percent in recent years.

HUD is now prioritizing new programming, including transitional housing, supportive services only projects, outreach, required service participation, recovery focused models, employment and self-sufficiency.

As a result, renewal projects placed in tier two will face greater risk than they have in prior competitions.

So what is our strategy this year?

Our first objective is to protect housing for people already living in permanent supportive housing.

We're prioritizing large site-based permanent supportive housing rental assistance projects for tier one and ranking renewals through the local scoring process and policy priorities.

For tier two, we will avoid proposals that are unlikely to be competitive nationally, and take the opportunity to advance new projects that closely align with HUD's stated priorities.

Through this strategy, we will maximize San Francisco's overall score and funding.

This is an overview of the timeline.

This was a compressed timeline that began on June 1st with a notice from HUD and has moved very quickly to the local application process.

The local local ranked list is scheduled for approval and posting in early August with again the final federal application due by August 26th.

And then we anticipate having the award announcement from HUD this winter.

So I will just note we we just received where we are in the process right now is we just received all of the applications last week.

We are currently in the process uh with the panel doing an evaluation and review of all of those applications that will then put together that um ranked list that will then be shared publicly.

There will be an opportunity for people to comment and to appeal, and then that final approved ranked list will be posted on August 4th.

And with that, happy to take any questions.

Thank you, Ms.

Schneider.

I don't have any uh questions.

I really appreciate the work you are doing on this.

I don't see anybody on the roster, so I think we will at this time invite up public comment.

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

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

Mr.

Vice Chair, we have no speakers.

Thank you, uh Mr.

Clerk.

Public comment on this item is now closed.

And um, let's see.

I will would now uh move to forward this item to the full board with our positive recommendation.

May we have a roll call on that motion.

And on that motion to refer this resolution to the full board with a recommendation, Member Sauter.

SODR, aye.

Member Chen.

Chen, aye.

Vice Chair Dorsey.

Aye.

And Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Congratulations to HSH.

Uh Mr.

Clerk, can we please call next item number 13?

Item number 13 is a resolution retroactively authorizing the Department of Public Health to accept and expend the grant in the amount of 250,000 from the State through Essential Access Health for participation in the program entitled Comprehensive Sexual and Reproductive Health Program, retroactively approving the grant agreement between the city, acting by and through the Department of Public Health and the Essential Access Health for the purpose of strengthening the overall quality of the California Comprehensive Sexual and Reproductive Health Program for a term of one year from April 1st, 2026 through March 31st, 2027, for a total not to exceed amount of 250,000, and to authorize the Director of Health to enter into amendments or modifications to the grant agreement that did not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the grant or this resolution.

Thank you, Mr.

Clerk.

We are joined by Osanachi Yokakpu, family planning coordinator from the Maternal Child and Adolescent Health Unit of the Department of Public Health.

Ms.

Okaku, welcome to the budget and finance committee.

The floor is so much.

Thank you.

Good morning, Vice Chair Dilsey, Supervisor Sotter, and Chen.

My name is Usinachi Okapu.

I'm the Department of Public Health, Patana, Child Adolescent Health, Family Planning Program Coordinator.

I am here today to request approval for a ritual active grant acceptance burned from the State of California, true essential access health for California comprehensive sexual and reproductive health program.

The grant total amount is 250,000 for the period of April 1st, 2026 to March 31st, 2026.

The grant is the state of California, true essential access health.

The funding will help strengthen the overall quality of the California Comprehensive Sexual and Reproductive Health Program.

A little bit of the benefit of the grant.

The ground will also support the Matana Child Adolescent Health Family Planning Program in expanding access to high quality comprehensive sexual and reproductive health services.

It will also help strengthen provider capacity, support evidence-based family planning services, advance health equity, and expand access to informed reproductive health care.

The funding also will support quality improvement, community engagement, and program oversight to ensure that the services that we render remain responsive to the community needs.

For the project start date of April 1st, 2026.

We therefore completed all required fiscal review and approval processes, including review and approval by the controller's office.

We now bring this item before this board for approval.

We respectfully seek approval.

Thank you.

Thank you so much for your presentation.

I just appreciate the work that you are doing on this and for securing the uh funding for the important work.

Um I don't see anybody on the roster with uh questions or comments, and I have none, but I appreciate the presentation.

Mr.

Clerk, may we open this item up to public comment?

Yes, if we have any members of the public who wish to address this committee regarding this item number 13.

Now is your opportunity.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And I would move to forward this item to the full board with our positive recommendation.

Mr.

Clerk, may we have a roll call on that motion?

And on that motion to refer to the full board with a recommendation, Member Sauter.

SODER, aye.

Member Chen.

Chen, aye.

Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

Thank you.

Thanks a motion.

Mr.

Clerk, next, can we call item 14?

Yes, item number 14 is a resolution retroactively authorizing the Department of Health.

Oh, sorry, Department of Public Health to accept an expanded grant increase in the amount of approximately 1.1 million for a total grant amount of approximately 15.8 million from the Centers for Disease Control and Prevention for participation in the program entitled Strengthening STD Prevention and Control for Health Departments.

For the period of January 1st, 2019 through February 28th, 2027, had retroactively approving the notice of award agreement pursuant to the charter.

Thank you, Mr.

Clerk.

We are joined today by Anthony Taylor, who is the STI and HIV program manager for the Population Health Division of the Department of Public Health.

Mr.

Taylor, welcome to the budget and finance committee.

The floor is yours.

Good morning.

There's a slide scroll.

Okay.

So DPH is here to request the retroactive authorization of the grant, which we call STD Peach.

And the grant is the amount of 1,119,045.

The grant aims to protect public health by supporting DPH's disease investigations of HIV and sexually transmitted infections.

Next slide.

This will be accomplished through disease investigations, rapid response to outbreaks linking people to prevention and treatment and case management and oversight.

So we're seeking a retroactive authorization to accept this grant as DPH received the notice of this grant extension on March 6th of 2026 for a project period beginning March 1st of 2026.

So DPH brought this item to the Board of Supervisors as with the previous item through a fiscal approvals process, including controller's office review and approval.

So DPH as excuse me, DPH respectfully requests retroactive approval of the item.

And I am happy to answer any questions you have.

Thank you, Mr.

Taylor.

I have uh no questions myself.

I don't see anybody on the roster with uh questions or comments.

I appreciate the work you are doing and for identifying this um grant funding at this time.

Mr.

Clerk, may we invite up public comment on this item?

Yes, if we have any members of the public who wish to address this committee regarding this item number 14.

Now is your opportunity.

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And I would like to move to forward this item to the full board with our positive recommendation.

Mr.

Clerk, may we have a roll call on that motion?

And on that motion to refer to the full board with the recommendation, Member Sauter.

Sodder, aye.

Member Chen.

Chen, aye.

Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

And thank you to DPH.

Mr.

Clerk, can we please call items 15, 16, and 17 together?

Yes, item numbers 15 through 17.

Our resolution is retroactively authorizing the Department of Public Health to accept and expand monetary gifts from the Epic Systems Corporation to help low-income and at-risk populations for the period of July 1st, 2025 through June 30th, 2026.

Item number 15, uh entitled 2025 UGM Safety Net Grant is in the amount of approximately 12.7 million.

Item number 16, then titled 2025 safety net gift, is in the amount of 115,000.

And item number 17, entitled 2025 unrestricted gift in the amount of 37.5,000.

Thank you, Mr.

Clerk.

We are joined for these items by uh Natasha Lalani, Electronic Health Record Program Director for the Department of Public Health, who will present.

Ms.

Lalani, welcome to the budget and finance committee.

The floor is yours.

Uh good morning and almost afternoon, Supervisors.

Thank you for having me.

I'm Natasha Lalani, and as stated, I am the EHR electronic health medical record director for the city and county of San Francisco supporting DPH.

Um the first item that I have is uh gift amount and one uh twelve thousand seven hundred and ten and forty-four cents.

Uh the timeline was July 1st of 2005 through June 30th, 2026.

Um the funder is the EPIC Systems Corporation.

EPIC is an electronic health record software program.

SFDPH's SFDPH uses EPIC for our health care system throughout DPH services.

EPPIP provides gifts to all federally qualified health systems, FQHCs, using EPIC, including this GIF for SFDPH, as we are considered a safety net hospital and provider.

This GIF does support our users to go to the user group meeting and travel there to learn more about EPIC.

Next slide.

This one EPIC considers DPH to be a safety net provider in hospital based on the volume of Medicaid, Medi-Cal, patients served.

And lastly, the amount of 37,500.

Timeline is between July 1st, 2025 through June 30th, 2026.

The funder again is Epic Systems.

This gift will support EPIC staff training at SFDPH in the purchase of materials and supplies.

We are seeking retroactive authorization to accept these gifts.

And the 2025 safety net gift on January 21st, 2026, and the 2025 unrestricted gift on December 9th, 2025.

DPH brought these items to the Board of Supervisors on June 16, 2026 and June 23rd, 2026, after the budget development process and through the review process of the controller's office.

These items were sent to the controller's office in April and received approval from the MADER's budget office in June.

Thank you.

Great.

Thank you, Ms.

Lilani.

I don't have any questions.

I appreciate uh the work you're doing and the funding that you have identified for this.

Um seeing no one on the roster with questions or comments.

Mr.

Clerk, may we open this item up to public comment?

Yes, we are now opening public comment for these items 15, 16, and 17.

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

Mr.

Vice Chair, we have no speakers.

Thank you, Mr.

Clerk.

Public comment on this item is now closed.

And at this time, I would like to uh move that we move these three items to the full board of supervisors with our positive recommendation.

Uh Mr.

Clerk, may we have a roll call on that motion.

And on that motion there we refer all three resolutions to the full board with the recommendation.

Member Sauter.

Soder aye.

Member Chen.

Chen Abson.

Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have two ayes.

Thank you, Mr.

Clerk.

The motion passes.

Thank you, DPH.

Mr.

Polk, can we please call our closed session for items 18 and 19?

Yes, item numbers 18 and 19, our resolution suspending board rule 3.25.2, requiring the referral of settlements to the government audit and oversight committee and approving the settlements of unlitigated claims, both involving unfair practice charges arising from employment disputes.

Item 18 was filed by the International Federation of Technical Engineers, local 21, against the City and County for approximately 201,000, filed by the public employee relations board on May 4th, 2026.

And item number 19 was filed by the Service Employees International Union, local 1021, against the city and county for approximately 181,000, filed by the public employee relations board on July 11th, 2025, and May 4th, 2026.

Thank you, Mr.

Clerk.

As these are settlement items requiring confidential discussion with our city attorney's office.

The committee will be going into closed session following public comment.

Mr.

Clerk, can we please uh invite a public comment on these two items?

Yes, if we have any members of the public who wish to address this committee before we go into closed session regarding these item numbers 18 and 19.

Now is your opportunity.

Thank you, Mr.

Clerk.

Public comment on uh these items is now closed.

Herbert Chen.

Chen absent.

Thank you, Mr.

Clerk.

The motion passes, and we all will now proceed to close session.

SF Gov TV.

San Francisco government television.

Welcome back, everyone.

We're now reconvening an open session.

Mr.

Clerk, can you please report on the actions that were taken in closed session?

Mr.

Vice Chair, uh, the committee did uh move to forward both resolutions to the full board with recommendation with no objection.

And I would now like to move that the committee finds that it is in the best interest of the public that the committee elect to not disclose its closed sessions deliberations.

Sauter, aye, member Chen.

Chen, aye.

Vice Chair Dorsey.

Aye.

Dorsey, aye.

We have three ayes.

Thank you, Mr.

Clerk.

The motion passes.

And Mr.

Clerk, is there any further business before us today?

Mr.

Vice Chair, that concludes our business.

Thank you, Mr.

Clerk.

Thank you, colleagues, and thank you all to the participants.

We are adjourned.