OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

SF Gov't Audit Committee Approves Daly City Drainage Deal, Continues Major Downtown Tower Proposal - Oct 2, 2025

Government Audit and Oversight CommitteeThursday, October 2, 2025
BodySan Francisco, California
SessionGovernment Audit and Oversight Committee
DateThursday, October 2, 2025
StatusFILED
Video Record
0:00 / 51:16
Transcript — Verbatim
0:08

Good morning.

0:09

This meeting will come to order.

0:10

Welcome to the October 2nd, 2025 regular meeting of the government audit and oversight committee of the San Francisco Board of Supervisors.

0:17

I'm Supervisor Jackie Fielder, Chair of the Committee, joined by Vice Chair Danny Sauter and Supervisor Stephen Sherrill.

0:24

Our committee clerk is Brent Haliba.

0:26

Our thanks to Jaime Echeveri of SFGovTV for staffing this meeting.

0:30

Mr.

0:31

Clerk, do you have any announcements?

0:32

Thank you, Madam Chair.

0:33

Just a friendly reminder to those in attendance to please make sure to silence all cell phones.

0:37

Handle electronic devices to prevent interruptions to our proceedings.

0:41

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

0:45

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

0:48

When your item of interest comes up in public comment is called.

0:51

Please line up to speak on the west side of the chamber to your right, my left along those curtains.

0:55

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 chair left by the doors.

1:02

If you wish to be accurately recorded for the minutes, alternatively, you may submit public comment in writing in either of the following ways.

1:11

The government audit and oversight committee clerk at M-O-N-I, Q-U-E.C-R-A-Y-T-O-N at S F G-O-V.org.

1:23

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

1:30

You may also send them uh you may also send your written comments via US Postal Service to our office and city hall at one, Dr.

1:37

Carlton Bigot Place.

1:39

Room 244, San Francisco, California, 94102.

1:43

And finally, Madam Chair, due to our observance of indigenous peoples and Italian American Heritage Day.

1:50

Items acted upon today are expected to appear on the Board of Supervisors' agenda of October 21st, unless otherwise stated.

1:56

Madam Chair.

1:57

Thank you, Mr.

1:58

Clerk.

1:58

Please call item one.

2:00

Yes, item number one.

2:03

Here's a resolution approving and authorizing the general manager of the Public Utilities Commission to execute a memorandum of agreement with the City of Daily City for the funding construction and operation of the Vista Grande drainage basin improvement project with a duration of five years, starting August 1st, 2025 through August 31st, 2030, pursuant to the charter.

2:26

Madam Chair.

2:27

Thank you.

2:28

So for this item, Mr.

2:30

Obe Nzewi, Groundwater Program Manager of the Water Enterprise of the SFPUZ PUC.

2:37

I understand will be presenting on this item today.

2:39

Mr.

2:40

Nzeli, please go ahead.

2:52

I'm the groundwater program manager for the PUC in San Francisco and the project manager on our side for this work.

2:58

I will be presenting on this item, giving you a brief background of the project, what the project entails, and then what we're asking for at the end of this.

3:07

And I'll be available to answer any questions if there are any regarding the project.

3:15

So the Vista Grande drainage basin drains stormwater from the northern portion of Daly City.

3:22

That stormwater flows into the Vista Grande Canal and Tunnel System.

3:27

That system runs from Daly City through San Francisco along John Muir Drive.

3:33

It ties into the Vista Grande tunnel that exits at Fort Funstone and transfers their stormwater to the ocean.

3:41

The main issue we're dealing with here is that the canal and tunnel system together do not have enough capacity to handle peak flows during large storm events.

3:50

So that results in flooding in Daily City in residential areas in Daily City and also in San Francisco within the Lake Merced area.

4:00

So basically, this project is going to be doing a couple of things.

4:04

We've been working with Daily City on this for a long time.

4:07

I've been working on this since 2012.

4:09

Daily City operates the entire system, but the project goals of this are going to be a couple.

4:14

We want to try and reduce the flooding that occurs in Daily City and within the San Francisco area.

4:20

We also are using this opportunity to reconnect Lake Merced to its previous watershed and divert some of that stormwater into the lake.

4:31

That gets us a couple of benefits.

4:33

We are able to restore lake levels that have been impacted by drought conditions and also the fact that for San Francisco, we have a combined sewer system.

4:43

So stormwater does not flow into the lake, it flows to our treatment plants.

4:47

The only recharge the lake has right now is basically what falls on it when it rains, so just direct precipitation.

4:53

So this will help us manage the lake levels and raise our lake levels.

4:57

Lake Merced is an emergency water supply for the city that we would use for firefighting and non-potable supplies during emergencies.

5:06

This allows us to increase that supply.

5:10

It also provides us a critical recharge to the underlying groundwater basin.

Discussion Breakdown — Share of Meeting
Economic Development████████████████████████████████████████40%
Engineering And Infrastructure███████████████████19%
Land Use██████████████████18%
Pending Litigation███████7%
Procedural██████6%
Public Comment██████6%
Affordable Housing████4%
Summary of Proceedings

San Francisco Government Audit & Oversight Committee Meeting - October 2, 2025

The committee convened to consider several key agreements and resolutions, focusing on a major infrastructure project with Daly City and a significant downtown redevelopment proposal. The meeting featured detailed staff presentations, supportive public testimony, and financial analysis. Members approved routine litigation settlements and moved to continue several items.

Consent Calendar

  • Items 5 through 11, involving the settlement of lawsuits and unlitigated claims against the city, were forwarded to the full Board of Supervisors with a positive recommendation.

Discussion Items

  • Item 1: Vista Grande Drainage Basin MOA: Obe Nzewi, PUC Groundwater Program Manager, presented a memorandum of agreement with Daly City to fund the Vista Grande drainage basin improvement project. The $173.8 million project aims to reduce flooding in Daly City and San Francisco's Lake Merced area, reconnect the lake to its watershed for water supply and groundwater recharge, and includes new tunnels, wetlands, and a diversion structure. The PUC's maximum reimbursement is $35 million. The Budget and Legislative Analyst (BLA) recommended approval.
  • Items 2 & 3: 530 Sansome Development & Fire Station Project: Jonathan Cherry (OEWD) presented ordinances for a development agreement and a hotel/fire station incentive agreement for a 41-story mixed-use tower (office/hotel) and a new Fire Station 13. Key benefits highlighted include a new $44 million fire station, $15 million in affordable housing payments (prioritizing senior housing in Chinatown), $7 million in SFMTA impact fees, and estimated annual net new general fund revenue of $8-9.5 million. The incentive agreement provides up to $86 million in net present value over 25 years, recaptured from new hotel taxes, to help make the project feasible. The BLA noted the city could self-finance the fire station cheaper but acknowledged capital plan constraints and the project's broader fiscal benefits.

Public Comments & Testimony

  • All public comment was in strong support of Items 2 and 3 (the 530 Sansome project).
  • Speakers and their positions included:
    • Jackson Nepier (SF Chamber of Commerce): Expressed support, citing economic recovery, public benefits, and affordable housing funding.
    • Avi (Chinatown Community Development Center): Expressed support for the project's critical funding for 100% affordable senior housing in Chinatown.
    • Raina Christensen (Hotel Council of SF): Expressed support for the project's economic benefits and diversification of offerings.
    • Trevor Long (Glaziers Union Local 718): Expressed support, stating the project sends a message that San Francisco is open for business and investment.
    • Marcus Alvarez (Elevator Constructors Local 8): Expressed support, highlighting the new fire station, affordable housing contributions, and public open space.
    • Rudy Gonzalez (SF Building Trades Council): Expressed strong support, emphasizing apprenticeship opportunities, economic recovery, and the combined public/private benefits.
    • Chris Wright (Advance SF): Expressed support, stating the project is a win for downtown revitalization and sends a strong investment signal.
    • John Doherty (IBEW Local 6): Expressed support, noting commitments to local workforce, apprenticeship, the new fire station, and affordable senior housing.

Key Outcomes

  • Item 1: Approved. The committee voted (Ayes: Sauter, Sherrill, Fielder) to forward the resolution approving the PUC MOA with Daly City to the full Board of Supervisors with a positive recommendation.
  • Items 2 & 3: Continued. The committee voted (Ayes: Sauter, Sherrill, Fielder) to continue both ordinances to a special meeting on October 6, 2025, to comply with noticing requirements.
  • Item 4: Continued. The resolution authorizing the solicitation of donations for various legal services was continued to the call of the chair.
  • Items 5-11: Approved. The committee voted (Ayes: Sauter, Sherrill, Fielder) to forward the litigation settlement items to the full Board of Supervisors with a positive recommendation.

Meeting Transcript

Good morning. This meeting will come to order. Welcome to the October 2nd, 2025 regular meeting of the government audit and oversight committee of the San Francisco Board of Supervisors. I'm Supervisor Jackie Fielder, Chair of the Committee, joined by Vice Chair Danny Sauter and Supervisor Stephen Sherrill. Our committee clerk is Brent Haliba. Our thanks to Jaime Echeveri of SFGovTV for staffing this meeting. Mr. Clerk, do you have any announcements? Thank you, Madam Chair. Just a friendly reminder to those in attendance to please make sure to silence all cell phones. Handle electronic devices to prevent interruptions to our proceedings. 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 in 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 chair left by the doors. If you wish to be accurately recorded for the minutes, alternatively, you may submit public comment in writing in either of the following ways. The government audit and oversight committee clerk at M-O-N-I, Q-U-E.C-R-A-Y-T-O-N at S F G-O-V.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 them uh you may also send your written comments via US Postal Service to our office and city hall at one, Dr. Carlton Bigot Place. Room 244, San Francisco, California, 94102. And finally, Madam Chair, due to our observance of indigenous peoples and Italian American Heritage Day. Items acted upon today are expected to appear on the Board of Supervisors' agenda of October 21st, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. Please call item one. Yes, item number one. Here's a resolution approving and authorizing the general manager of the Public Utilities Commission to execute a memorandum of agreement with the City of Daily City for the funding construction and operation of the Vista Grande drainage basin improvement project with a duration of five years, starting August 1st, 2025 through August 31st, 2030, pursuant to the charter. Madam Chair. Thank you. So for this item, Mr. Obe Nzewi, Groundwater Program Manager of the Water Enterprise of the SFPUZ PUC. I understand will be presenting on this item today. Mr. Nzeli, please go ahead. I'm the groundwater program manager for the PUC in San Francisco and the project manager on our side for this work. I will be presenting on this item, giving you a brief background of the project, what the project entails, and then what we're asking for at the end of this. And I'll be available to answer any questions if there are any regarding the project. So the Vista Grande drainage basin drains stormwater from the northern portion of Daly City. That stormwater flows into the Vista Grande Canal and Tunnel System. That system runs from Daly City through San Francisco along John Muir Drive. It ties into the Vista Grande tunnel that exits at Fort Funstone and transfers their stormwater to the ocean. The main issue we're dealing with here is that the canal and tunnel system together do not have enough capacity to handle peak flows during large storm events. So that results in flooding in Daily City in residential areas in Daily City and also in San Francisco within the Lake Merced area. So basically, this project is going to be doing a couple of things. We've been working with Daily City on this for a long time. I've been working on this since 2012. Daily City operates the entire system, but the project goals of this are going to be a couple.

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