Budget and Finance Committee Meeting – September 2, 2026
Budget and Finance Committee Meeting – September 2, 2026
The Budget and Finance Committee of the San Francisco Board of Supervisors convened on September 2, 2026, at 6:15 PM, chaired by Supervisor Matt Dorsey, with Vice Chair Cheyenne Chen and Member Danny Sauter. The meeting featured a lengthy agenda covering items from a nitrous oxide ban to major bond issuances and a controversial contract for a citywide permitting system (Permit SF). The committee took public comment on multiple items and voted on a series of routine approvals, bond sales, and the OpenGov contract extension.
Consent Calendar
- Item 2: Resolution approving a $9.5 million increase (to $17 million total) for a professional services agreement with Faith Group PMCM2JV for airport commissioning activation and simulation support. Approved unanimously.
- Item 3: Resolution approving an $8.4 million increase (to $17 million total) for project management support services with Atkins Realis USA Inc. for airfield improvement. Approved unanimously.
- Item 4: Resolution retroactively authorizing DPH to accept a $148,843 grant from the National Institutes of Health for a PrEP blueprint program. Approved with minor amendments.
- Item 5: Resolution retroactively authorizing DPH to accept a $204,000 grant from San Francisco Health Plan for community health assessment. Approved unanimously.
- Item 6: Resolution retroactively authorizing DPH to accept a $2.3 million grant from San Francisco General Hospital Foundation for the Solid Start perinatal behavioral health program. Approved unanimously.
- Items 7-14: Resolutions and ordinances authorizing the issuance and sale of general obligation bonds totaling $423.5 million for health and recovery, earthquake safety, and affordable housing. Approved with amendments (reducing the ESER bond amount from $215 million to $138 million due to project delays).
- Items 15-16: Ordinances authorizing the sale of $43 million in certificates of participation (COPs) for parks projects (Jackson Playground, India Basin, etc.) and appropriating proceeds. Approved with an amendment striking a reference to commercial paper.
- Items 17-21: Resolutions approving grant agreements for rental subsidies from the Affordable Housing Opportunity Fund, totaling $18.5 million over 15–16 years, for five affordable housing projects (160 Freelon, 3300 Mission, Ambassador Hotel, SOMA Studios, South Park Scattered Sites). Approved with an amendment correcting the fund recipient for Item 19.
Public Comments & Testimony
- Nitrous Oxide Ban (Item 1): Pete Wilson (TWU Local 250A) expressed support for the ban but raised concerns about lack of union notification and enforcement by health inspectors vs. police. Jamario Jackson (Ecology) supported the ordinance, citing safety hazards from discarded cylinders and disposal costs of up to $20 per cylinder. Robert Sandoval (Teamsters Local 350) strongly supported the ban, noting that canisters explode in collection trucks, endangering workers. A personal testimony from Julia described her severe addiction, including paralysis, burns, and multiple rehab stays, urging the committee to act.
- Affordable Housing Subsidies (Items 17-21): Todd LaFroge (TNDC) supported the grants, stating they lower rent burdens and improve financial stability for properties. Caitlin Roth (Related California) thanked the committee for supporting deeper affordability at 160 Freelon. Sarah Davy Dillon (Mission Housing) described the South Park scattered sites as critical for extremely low-income residents and thanked the city for the investment.
- OpenGov Contract (Items 22-24): Jerry Gratler expressed support for enterprise software but criticized the OpenGov project for lacking organizational structure and resources, noting the absence of foundational documents and a suitability analysis for DBI. Jessica Newti (Local 21) raised concerns about the procurement process, lack of clarity, and declining service delivery (permits taking 7–10 days instead of same-day). She urged limiting funding to $12 million for year two with additional oversight.
Discussion Items
- Nitrous Oxide Ban (Item 1): Supervisor Sauter introduced the ordinance, citing a 600% increase in deaths and 500% increase in emergency room visits from nitrous oxide misuse. The item was continued to the call of the chair to allow further meet-and-confer discussions with unions and the Department of Public Health.
- Bond Issuances (Items 7-14): Presentations covered health and recovery bonds (DPH and Rec & Park), earthquake safety bonds (SFPUC and DPW), and affordable housing bonds (MOHCD). Key points included a reduction in the ESER bond request due to delays in the emergency firefighting water system pipeline (pipe technology failure and CEQA appeal). The committee discussed market uncertainty, competitive vs. negotiated sale, and debt capacity. The bonds were approved with amendments.
- OpenGov Contract Procurement Hearing (Item 23): Supervisor Fielder called the hearing to scrutinize the procurement of the $5.9 million initial contract (and proposed $33 million, five-year extension) with OpenGov for a new permitting system. The Budget and Legislative Analyst (BLA) reported that the selection process, while legal, did not follow best practices: no standardized evaluation criteria, no cost comparisons among finalists, and limited conflict-of-interest disclosures. The mayor’s office used a Section 2130 waiver to bypass competitive bidding, citing urgency to meet a one-year timeline. Permit SF Director Elizabeth Wadi defended the process, stating the RFI allowed broad staff input (70 staff, 50 vendors) and that OpenGov was chosen based on track record and delivery speed. Supervisor Fielder questioned the early involvement of Mayor’s policy chief Ned Siegel and potential conflicts due to OpenGov founders’ donations to the Mayor’s foundation. The city purchaser from OCA confirmed the waiver was appropriately granted. After extensive debate, the hearing was continued to the call of the chair.
- OpenGov Contract Amendment (Item 22) and Reserve Fund Release (Item 24): Following the procurement hearing, the committee considered the contract amendment to increase the amount by $33.1 million and extend the term five years. The BLA recommended either reducing the contract to $12.1 million (covering year two only) or adding termination-for-convenience provisions. The committee heard that the contract now includes termination-for-convenience rights (negotiated at the chair’s urging). Supervisor Sauter supported the contract, citing speed and innovation. Supervisor Chen opposed, favoring the BLA’s recommendation due to unmet deliverables and staffing concerns. Chair Dorsey expressed support for the goals but noted the contract lacked clear milestones; he moved to forward it without recommendation to the full board for further debate.
Key Outcomes
- Item 1: Continued to the call of the chair (3-0 vote).
- Items 2-6: Approved and forwarded to the full board with positive recommendation (3-0 each).
- Items 7-14: Approved as amended (items 9 and 11 amended to reduce ESER bond amount to $138 million) and forwarded with recommendation (3-0).
- Items 15-16: Approved as amended (item 16 amended) and forwarded with recommendation (3-0).
- Items 17-21: Approved as amended (item 19 amended to correct grantee name) and forwarded with recommendation (3-0).
- Item 22 (OpenGov contract amendment): Forwarded to the full board without recommendation (3-0).
- Item 23 (Procurement hearing): Continued to the call of the chair (3-0).
- Item 24 (Release of reserve funds): Approved contingent upon full board approval of Item 22; hearing heard and filed (3-0).
Meeting Transcript
This meeting will now come to order. This is the September 2nd, 2026 meeting of the Budget and Let and Finance Committee. I would like to welcome everyone back from their legislative recess, which is in part why we have a lengthy agenda today. I'm Supervisor Matt Dorsey, Chair of this committee. I'm also joined by Vice Chair Cheyenne Chen and Member Danny Sauter. Our clerk today is Mr. Brent Halipa, whom we thank in advance for staffing and keeping us on track. As well, we're appreciative to the entire team at SFGov TV for facilitating and broadcasting today's meeting, and that's especially for our producer Jeanette Eganloff. Uh Mr. Clerk, do you have any announcements? Thank you, Mr. Chair. Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. And should you have any documents to be included as part of the file, they should be submitted to myself, the clerk. Public comment will be taken on each item on this agenda. And 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 to 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.jal I P A at SFGOV dot ORG. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service to our office in City Hall at 1. Dr. Carlton be good at place. Room 244, San Francisco, California 94102. And finally, due to our observance of Labor Day, items acted upon today are expected to appear on the Board of Supervisors' agenda of September 15th, unless otherwise stated. Mr. Chair. Thank you, Mr. Clerk. And before we call item number one, I would like to remind our viewers and attendees that we have budget and legislative analyst reports for items one, two, three, and then seven through twenty-four on today's agenda. For those items, we will hear from the department uh first with their presentation followed by the budget and legislative analyst. Uh, we will then facilitate questions from the committee and then invite a public comment. Uh Mr. Clerk, would you please call item number one? Yes, item number one 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. Um make violations of the prohibition an infraction or misdemeanor, subject to imprisonment and or a fine, and authorize the 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. Chair. Thank you, Mr. Clerk. It's my understanding that this item has uh will likely be continued because there is a request for a meeting confer, but it's uh Supervisor Sauter's item, and I'd like to ask Supervisor Sauter to say a few words. Thank you, Chair Dorsey. And um this is an item that we've been working on since a drafting request in February of this year. And we're doing so because at the moment, nitrous oxide is a substance that is addictive, deadly, and available at ease in San Francisco and across much of this state. Um nitrous oxide for those not familiar, also referred to as laughing gas or whippets, has been exploding in popularity. One study over uh found that over the past decade there was an increase of 600 percent in deaths. Emergency room visits up some 500 percent. Um this is a substance that can lead to life-threatening health complications, including nerve damage, psychosis, heart attack, and much more. And it is for this reason and more that we have garnered widespread support for this item, uh, including support and endorsements from the San Francisco Marin Medical Society, from Ecology, from Teamsters 350, from NEMS, the Northeast Medical Services, and for many individuals, parents in particular, who are worried about this substance and the ease that it is available.
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