San Francisco Budget and Finance Committee Meeting – November 4, 2026

The San Francisco Budget and Finance Committee met on November 4, 2026, with Chair Matt Dorsey, Vice Chair Cheyenne Chen, and Member Danny Sauter. The committee approved airport concession leases, homeless services contract amendments, a home-kitchen food business ordinance, and an immigrant legal services appropriation, and continued a loan item for further review. The clerk was Brent Halipo.

Airport Concession Leases (Items 1–3)

• The committee heard a joint presentation by SFO external affairs director Daniel Sang and BLA analyst Nick Minard on three airport leases for Terminal 3 and the Dianne Feinstein International Terminal. Each lease has a 14-year term with one two-year option to extend.
• Item 1 approves a Terminal 3 West Food and Beverage Phase 1 concession lease with Proper Plover SFO LLC, doing business as Andytown Coffee Roasters, for two coffee locations: $456,000 minimum annual guarantee (MAG) for the post-security location and $90,000 MAG for the pre-security location. Rent is 6% of gross revenue for the pre-security location and the greater of the MAG or tiered percentage rent of 8%, 10%, and 12% for the post-security location.
• Item 2 approves a Terminal 3 West concession lease with Fly Proper SFO LLC, doing business as Proper Food, for a gourmet grab-and-go market with a $416,000 MAG and the same tiered percentage rent structure.
• Item 3 approves coffee shop leases with SFO Hospitality Partners LLC, which will operate Pete’s Coffee in the international terminal and Red Bay Coffee in Terminal 3, with a $400,000 MAG for the post-security location and $167,000 MAG for the pre-security location.
• BLA projected about $24.5 million in revenue to the airport over the leases, assuming no rent increases over 16 years. Most revenue remains at the airport, with 15% transferred annually to the general fund. BLA recommended approval.
• No public speakers testified on these items. The committee forwarded all three resolutions to the full board with a positive recommendation by a 3-0 vote.

Homeless Services Contract Amendments (Items 4–5)

• Item 4 approves a third amendment to the Larkin Street Youth Services grant for the Lark Inn Shelter. The clerk described a 31-month extension from the current term to June 30, 2029 and an increase to a total not-to-exceed amount of about $14.9 million, while HSH Deputy Director Emily Cohen described the extension as 24 months—an apparent discrepancy in the term length. The program serves up to 36 transitional-age youth; last fiscal year it served 168 youth at 93% occupancy.
• BLA reported Larkin Street largely met contract goals, but fiscal monitoring found invoices without adequate supporting documentation related to an OEWD workforce grant, and HSH could not say how far client cash disbursements exceeded the $1,000 program cap. BLA treated approval as a policy matter because of the unresolved invoice issue.
• Chair Dorsey expressed strong support for the shelter, emphasizing its importance to LGBTQ+ youth, but said the BLA concern warranted public discussion. HSH committed to a BLA-recommended report back to the committee by November 1. The committee adopted an administrative amendment correcting the RFP number from 129 to 127 and forwarded the item to the full board with a positive recommendation by a 3-0 vote.
• Item 5 approves the first amendment to the Bayview Hunters Point Foundation grant for the Bayview Navigation Center. The amendment extends the term to June 30, 2029 and increases the total not-to-exceed amount to about $25.7 million. The 203-bed shelter served more than 800 adults last fiscal year at 98% average occupancy.
• BLA reported that the foundation had not tracked data on three of four outcome objectives, including exits to stable housing, but has implemented a new case management system. The organization remains in tier-three fiscal monitoring and is several years behind on audits; its last completed audit was FY2021-22. BLA nonetheless recommended approval, citing progress on corrective actions.
• Bayview Hunters Point Foundation CEO Darrell Smith said he took office on May 1, 2026, that the FY2023 audit should be completed within weeks, and that all audits would be up to date by the end of the fiscal year. The committee forwarded the item to the full board with a positive recommendation by a 3-0 vote.

101 Gough Street Affordable Housing Loan (Item 6)

• The committee considered a resolution authorizing a loan not to exceed $15.85 million to San Francisco SafeHouse Holdings LLC for acquisition and rehabilitation of 100% affordable housing at 101 Gough Street, consisting of 23 transitional housing units for extremely low-, very low-, and lower-income households experiencing homelessness, trauma, street violence, domestic violence, sexual abuse, or human trafficking.
• Chair Dorsey said the BLA report raised concerns and recommended continuing the item for further discussion with the Mayor’s Office of Housing and Community Development. No public comment was offered. The committee voted 3-0 to continue the item to the November 18, 2026 Budget and Finance Committee meeting.

Microenterprise Home Kitchen Operations Ordinance (Item 7)

• Supervisor Jackie Fielder, the sponsor, presented an ordinance to permit microenterprise home kitchen operations (MIKOs) in San Francisco. She cited state research showing about 97% of permitted MIKOs had no formal complaint, two foodborne illness complaints among 898 permitted MIKOs between 2019 and 2024, 79% of operators are people of color, about 70% are women, and 73% said operating a MIKO helps them financially.
• The ordinance would allow up to 30 meals per day and 90 meals per week, with a $100,000 annual gross revenue limit adjusted annually. MIKOs would require permits, food safety training, inspections, and compliance with home kitchen rules. They could not use third-party delivery platforms or sell at farmers markets, and, with health department approval, could serve as a commissary for the same individual’s compact mobile food operation.
• BLA analyst Fred Brousseau presented data from six California counties with active MIKO programs. Initial application fees ranged from $673 to $1,460; renewal fees ranged from $347 to $1,460. BLA estimated one-time startup costs of $360,000 and annual net costs of about $33,500 for 50 MIKOs or $67,000 for 100 MIKOs after fee revenue. DPH said two new inspector positions would be needed, costing about $809,000 this year and $868,000 next year; BLA noted other large counties did not use two full-time equivalents for MIKO inspections.
• Public comment was overwhelmingly supportive, including comments from the Democratic Socialists of America San Francisco, Mission Economic Development Agency, Nuestra Causa, food vendor council leaders, street vendors, Renaissance Entrepreneurship Center, and Indivisible SF. Several speakers described MIKOs as an affordable path for immigrant families and a way to reduce commercial kitchen costs. The San Francisco Apartment Association was not opposed but requested amendments modeled on Airbnb legislation to require landlord permission rather than notification and to consider limiting cart access to RH1 districts.
• Supervisor Fielder offered amendments: requiring city notification to landlords and homeowners associations; restricting deliveries to employees or family/household members; limiting sales to direct-to-consumer, same-day-prepared food; and clarifying meal and sales limits, including 80 meals per day and 200 meals per week with a $200,000 annual sales limit for MIKOs serving as commissaries for compact mobile food operations. The committee adopted the amendments and voted 3-0 to forward the ordinance to the full board with a positive recommendation.

Immigrant Legal Services Appropriation (Item 8)

• The committee considered an ordinance appropriating $1,765,000 from the General Reserve to the Mayor’s Office of Housing and Community Development for immigration legal defense and community response services in FY2026-2027. The item requires a two-thirds vote of the full Board of Supervisors.
• Supervisor Fielder, the sponsor, said the funding responds to increased ICE enforcement. She cited a Mission Local analysis of UC Berkeley federal data showing immigration arrests across major Bay Area cities rose 81% between July 2025 and July 2026. She said the funds would support the rapid response network, habeas petitions, accompaniment, and know-your-rights education.
• Public comment was strongly supportive. Speakers included Shira Levine of the Immigration Institute of the Bay Area/Bay Area Habeas Network, the San Francisco ACLU chapter, Annette Wong of Chinese for Affirmative Action, John Phillips of La Raza Centro Legal, Amy Aguilera of Bulldad, and Stay Santos of the San Francisco Rapid Response Network. They described surging ICE arrests, the need for rapid habeas filings, and the importance of sustaining legal services infrastructure.
• The committee voted 3-0 to forward the ordinance to the full board with a positive recommendation.

Public Comments & Testimony

• There were no public speakers on the airport lease items (1–3), the Bayview Navigation Center item (5), or the 101 Gough Street loan item (6).
• On item 4, Sherilyn Adams said none of the fiscal invoices were in question and appreciated the chair’s comments about the shelter.
• On item 7 and item 8, the public comments summarized above were offered in support, with the San Francisco Apartment Association offering conditional concerns on item 7.

Key Outcomes

• Items 1, 2, 3, 4, 5, 7, and 8 were all recommended for approval to the full Board of Supervisors by unanimous 3-0 votes, with item 4 amended and item 7 amended as described.
• Item 6 was continued to the November 18, 2026 committee meeting.
• The clerk stated that items acted upon were expected to appear on the Board of Supervisors agenda of November 10, 2026, unless otherwise stated.
• The agenda also listed two items under the 30-day rule—Sober Spaces Program and Fund and relief from vacancy tax filing obligations—but they were not taken up in the recorded proceedings before adjournment.