2026-10-07 - Budget and Finance Committee

,GOOD MORNING. >> THIS MEETING WILL COME TO ORDER. WELCOME TO THE OCTOBER 7TH, 2026 MEETING OF THE BUDGET AND FINANCE COMMITTEE. I AM SUPERVISOR MATT DORSEY, CHAIR OF THIS COMMITTEE. I'M JOINED TODAY

BY VICE CHAIR SHYAM CHIEN AND WE EXPECT OUR SUPERVISOR DANNY SAUTTER TO BE JOINING US SHORTLY. OUR CLERK TODAY IS MR. BRANT HALPER WHOM WE THANK IN ADVANCE FOR KEEPING US ON TRACK AS WELL. WE

APPRECIATE THE ENTIRE TEAM AT S.F. GOV TV FOR FACILITATING AND BROADCASTING TODAY'S MEETING AND THAT IS ESPECIALLY TRUE FOR SUSI NILES WHO IS OUR PRODUCER TODAY. >> MR. CLERK, DO YOU HAVE ANY

ANNOUNCEMENTS? THANK YOU. MR. CHAIR. >> JUST A FRIENDLY REMINDER TO THOSE IN ATTENDANCE TO PLEASE 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 THE AGENDA AND 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 IN 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 TRAY BY THE TELEVISION TO YOUR LEFT BY THE DOORS IF YOU WISH FOR YOUR NAME TO BE ACCURATELY RECORDED FOR TWO MINUTES. ALTERNATIVELY YOU MAY SUBMIT PUBLIC

COMMENT IN WRITING IN EITHER OF THE FOLLOWING WAYS EMAIL THEM TO MYSELF THE BUDGET AND FINANCE COMMITTEE CLERK AT B R N T A L I P A HAS 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 YOUR WRITTEN COMMENTS VIA U.S. POSTAL SERVICE TO OUR OFFICE IN CITY HALL AT ONE DR. CARLTON BIGGER THE

PLACE ROOM 244 SAN FRANCISCO, CALIFORNIA 94122. AND FINALLY 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 20TH UNLESS OTHERWISE STATED. >> MR. CHAIR THANK YOU MR. CLERK. BEFORE WE CALL ITEM ONE, I WOULD LIKE TO REMIND OUR VIEWERS AND ATTENDEES SO THAT WE HAVE BUDGET AND

LEGISLATIVE ANALYST REPORTS TODAY FOR ITEMS 1 TO 5 AND SEVEN ON THE AGENDA . FOR THOSE ITEMS WE WILL HEAR FROM THE DEFENSE DEPARTMENT PRESENTATION FIRST WE WILL THEN HEAR FROM THE BUDGET AND

LEGISLATIVE ANALYST. WE CAN THEN FACILITATE QUESTIONS FROM THOSE OF US ON THE COMMITTEE AND AT THAT POINT WE'LL INVITE A PUBLIC COMMENT. >> NOW MR. CLERK, WOULD YOU PLEASE CALL ITEM NUMBER ONE? >>

YES. ITEM NUMBER ONE IS AN ORDINANCE APPROPRIATING 658,000 OF STATE REVENUE TO THE DEPARTMENT OF ELECTIONS TO SUPPORT COSTS ASSOCIATED WITH THE STATEWIDE NOVEMBER 2026 ELECTION IN FISCAL YEAR 2026 TO

2027. THIS ORDINANCE REQUIRES A TWO THIRDS APPROVAL VOTE OF ALL MEMBERS OF THE BOARD OF SUPERVISORS FOR 308,000 APPROPRIATED FOR SALARY OVERTIME, MANDATORY FRINGE BENEFITS AND NON PERSONNEL SERVICES

PURSUANT TO THE CHARTER. >> MR. CHAIR THANK YOU, MR. CLERK. AND WE WERE JOINED TODAY BY MR. JOHN ARCH WHO IS THE DIRECTOR OF THE SAN FRANCISCO DEPARTMENT OF ELECTIONS. MR. ROBERTS, WE WELCOME YOU TO

THE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. THANK YOU. CHAIR JOHNSON. GOOD MORNING. SO THE BASIS FOR THE SUPPLEMENTAL APPROPRIATION IS THE STATE HAS PROVIDED COUNTIES WITH FUNDS TO MORE

QUICKLY PROCESS BALLOTS AND RELEASE RESULTS REPORTS AFTER ELECTION DAY ON NOVEMBER 3RD. THE FUNDS WILL ALSO SUPPORT COUNTIES IN THEIR OUTREACH EFFORTS IN RELATION TO THE UPCOMING GENERAL ELECTION.

OVERALL THE STATE HAS ALLOCATED $34 MILLION TO COUNTIES OF WHICH SAN FRANCISCO RECEIVED $658,000. EVEN PRIOR TO THESE FUNDS BEING MADE AVAILABLE THE DEPARTMENT HAD ALREADY SET PLANS TO EXPEDITE BALLOT

PROCESSING AFTER ELECTION DAY. >> AND THESE FUNDS WILL NOW SUBSTANTIALLY FURTHER THOSE PLANS. REGARDING THE DEPARTMENT'S INTENTIONS TO UTILIZE THESE FUNDS, THE DEPARTMENT WOULD PURCHASE ADDITIONAL

EQUIPMENT TO PROCESS BALLOTS AND ROSTERS AND ALSO INCREASE ITS OUTREACH EFFORTS. FOR EXAMPLE, THE DEPARTMENT WILL PURCHASE A VOTE BY MAIL BALLOT SCANNING AND SORTING MACHINE THAT WILL REDUCE THE TIME

REQUIRED TO PREPARE BALLOTS FOR COUNTING. WE WILL ALSO PURCHASE EQUIPMENT THAT ALLOWS FOR THE OPENING OF THE ENVELOPES OF RETURN VOTE BY MAIL BALLOTS TO INCREASE THE VOLUME OF BALLOTS AVAILABLE FOR

TABULATION. DEPARTMENT ALSO SEEKS TO PURCHASE SCANNING EQUIPMENT AND RELATED WORKSTATIONS TO ALLOW FOR A FASTER REVIEW OF ROSTERS RECEIVED FROM POLLING PLACES ON ELECTION NIGHT. ALSO THE DEPARTMENT

WILL RUN ADDITIONAL SCANNERS RELATED TO TABULATING VOTES TO INCREASE THE THROUGHPUT OF CARDS THAT WE CAN PROCESS. >> THE TOTAL COST OF THESE EQUIPMENT PURCHASES AND RENTALS WOULD BE APPROXIMATELY

$350,000 TO EFFECTIVELY UTILIZE THIS EQUIPMENT. THE DEPARTMENT WILL NEED TO HIRE SEVERAL HUNDRED ADDITIONAL TEMPORARY PERSONNEL ABOVE THE STAFFING LEVELS APPLIED TO PREVIOUS ELECTIONS. THE STATE

FUNDING WILL COVER THE COSTS FOR THE ADDITIONAL PERSONNEL AND WILL ALLOW THE DEPARTMENT TO OPERATE CONTINUOUSLY FROM ELECTION DAY THROUGH POSSIBLY THE FOLLOWING FRIDAY. >> THIS MEANS THAT THE FUNDING

WILL SUPPORT THE STAFFING COSTS ASSOCIATED WITH OPERATING FOR 24 HOURS DAILY FOR THREE DAYS AND THEN FUND OVERTIME COSTS FOR SUCCEEDING DAYS IF NECESSARY. THE TOTAL COST OF THIS INCREASE IN PERSONNEL

AND THE RELATED COMPENSATION WOULD BE APPROXIMATELY $200,000. THE STATE FUNDS WOULD ALSO COVER THE STAFFING COSTS ASSOCIATED WITH CONDUCTING OUTREACH FOR THE NOVEMBER ELECTION AND WILL SUPPORT MORE

OVERTIME HOURS IN PROVIDING OUTREACH. THE TOTAL COST OF THESE OUTREACH EFFORTS WOULD BE NEARLY $100,000. FINALLY, BESIDES THE POSITIVE IMPACT OF STATE FUNDING WOULD PROVIDE TO REDUCE THE TIME NEEDED

TO PROCESS BALLOTS FOR THE UPCOMING NOVEMBER ELECTION. THE DEPARTMENT WOULD ALSO RETAIN THE EQUIPMENT FOR FUTURE ELECTIONS. THIS MEANS THE INCREASED CAPACITY TO PROCESS BALLOTS MORE QUICKLY ASSOCIATED

WITH OBTAINING THE ADDITIONAL EQUIPMENT IS NOT LIMITED TO ONLY THE NOVEMBER ELECTION. FROM THERE I'LL STEP ASIDE FOR THE THINKING STARTS AND THEN I'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST. >>

MR. BERNARD THE FLOOR IS YOURS. GOOD MORNING NICK MAYNARD FROM THE BUDGET LEGISLATIVE ANALYST'S OFFICE. ITEM ONE IS AN APPROPRIATION ORDINANCE FOR A $658,000 OF STATE REVENUES TO THE DEPARTMENT OF

ELECTIONS. WE SHOWED THE USE AS A FUND ON FUNDS ON PAGE TWO OF OUR REPORT AND INCLUDES BUYING AND RENTING BALLOT SORTING EQUIPMENT AS WELL AS TEMPORARY STAFFING AND OVERTIME TO EXPEDITE THE BALLOT

COUNTING PROCESS AND VOTER OUTREACH EFFORTS. >> THE THESE NEW RESOURCES PLUS OTHER CHANGES THAT THE DEPARTMENT IS MAKING WILL ALLOW THEM TO CONCLUDE THE VOTE THE WEEK OF THE ELECTION RATHER THAN THE

WEEK AFTER AS IS TYPICALLY THE CASE. THERE'S MINIMAL GENERAL FUND IMPACTS FOR THESE PURCHASES EXCEPT THAT THE NEW EQUIPMENT THAT THE DEPARTMENT IS BUYING WILL COST ABOUT $35,000 A YEAR GOING FORWARD.

THAT WOULD BE A NEW TURN OFF ON COSTS FOR LICENSING AND MAINTENANCE THAT YOU KNOW WITHIN A $23 MILLION BUDGET. SO I THINK IT CAN BE ABSORBED BY THE DEPARTMENT AND WE RECOMMEND APPROVAL OF ITEM ONE. >>

GREAT. THANK YOU, MR. MINARD. I KNOW THAT WHEN I HEAR NEWS STORIES ABOUT HOW LONG IT TAKES CALIFORNIA TO GET THROUGH THE VOTING COUNT, THE VOTE COUNTING PROCESS I THINK WE'VE ALL HEARD A NUMBER OF

STORIES AND SECRETARY OF STATE WEBER DISCUSSES SOME OF THE REQUIREMENTS THAT CALIFORNIA PUTS ON ELECTIONS DEPARTMENTS WHICH I THINK ARE WORTHY OF INCREASING CIVIC PARTICIPATION. >> I GUESS THE ONLY

QUESTION I WOULD HAVE FOR YOU IS THIS IS THIS ENOUGH AND SHOULD WE BE ASKING OUR LEGISLATIVE DELEGATION TO INCREASE FUNDING OR ARE YOU AS A LOCAL ELECTIONS DEPARTMENT ARE YOU FEELING WELL ENOUGH

SUPPORTED BY THE STATE FOR THE DEMANDS IT'S PUTTING ON YOU? >> AS FAR AS THE PROCESSING OF BALLOTS WITHIN THE TIMEFRAMES AVAILABLE, YES. THE CHALLENGE ALSO IS WHEN IT COMES TO SORT OF CERTIFYING AN

ELECTION AS COUNTIES CAN'T CERTIFY ELECTION AT LEAST 22 DAYS AFTER ELECTION DAY AND SO FINAL RESULTS CANNOT BE RELEASED REALLY UNTIL THE 20 DAYS AND NOT NOT AFTER 30 DAYS. BUT THE WITH VOTE BY MAIL

BALLOT BEING THE WAY THAT WE MOST PEOPLE CAST BALLOTS NOW IN CALIFORNIA THAT MEANS THAT MORE THAN HALF OF THE BALLOTS ARRIVE ON ELECTION DAY AND VOTE BY MAIL BALLOTS REQUIRE EXTRA HANDLING AND

PROCESSING THAT A THAT A BALLOT A POLLING PLACE DOES NOT REQUIRE. WHEN SOMEONE GOES TO A POLLING PLACE THEY GET THE BALLOT AT THE POLLING PLACE AND THEY AND AND THEIR BALLOTS AND THE VOTES ARE

TABULATED AT THE POLLING PLACES. SO THOSE VOTES ARE REPORTED REALLY ON ELECTION NIGHT AND THAT'S REALLY THE BY MIDNIGHT WE GET THE LAST RESULTS FROM THE POLLING PLACE WITH THE VOTE BY MAIL BALLOTS.

THEY KEEP COMING IN AFTER THE POLLS CLOSE THROUGH THE EVENING ,EVEN THE NEXT DAY NEXT SEVERAL DAYS ACTUALLY FROM THEM FROM THE POST OFFICE AND WE HAVE TO REVIEW THE SIGNATURES ON THE AISLE OVER TO

SCAN THE BALLOTS. WE HAVE TO REVIEW THE SIGNATURES, OPEN THEM, OPEN THE ENVELOPES, GET THE BALLOT CARDS READY FOR PROCESSING, RUN THEM THROUGH THE SCANNERS FOR TABULATION. SO THERE'S JUST EXTRA STEPS.

SO IT'S A IT'S A IT'S A VOLUME ISSUE. SO SO AS FAR AS THE LEGISLATION AND THE SUPPORT FROM THE STATE, YES, I THINK THAT THERE IS SUFFICIENT SUPPORT AND FUNDING NOW FROM THE STATE. BUT THE NATURE OF

ELECTIONS HAS CHANGED FROM FROM PREVIOUS GENERATIONS AND THAT'S WHY THERE'S MORE OF A TIME REQUIREMENT AFTER ELECTION DAY TO RELEASE RESULTS. BUT AGAIN, THE FINAL RESULTS CANNOT BE CERTIFIED FOR THREE

WEEKS AFTER ELECTION DAY NO MATTER HOW MUCH HOW FAST WE CAN PROCESS BALLOTS AFTER ELECTION DAY. >> OKAY, GREAT. >> I WOULD JUST ADD I APPRECIATE THE WORK YOU DO AND I KNOW THAT OVER THE YEARS YOU HAVE

IMPLEMENTED A LOT OF CHANGES COMPETENTLY AND WELL WITHOUT MUCH DRAMA. GOING BACK TO THE RANKED CHOICE VOTING AND EVERYTHING ELSE. SO I APPRECIATE YOUR LEADERSHIP AND EVERYBODY IN YOUR DEPARTMENT FOR

THE WORK THAT YOU DO. I DON'T SEE ANYONE ON THE ROSTER SO AT THIS TIME, MR. CLERK, WHEN WE INVITE A PUBLIC COMMENT ON THIS ITEM YES, WE'RE NOW OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER ONE, IF WE

HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO DRESS THIS COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS. >> THANK YOU. FOR PUBLIC COMMENT ON THE STUDY WHICH IS NOW CLOSED AND AT THIS TIME I WOULD MOVE TO

FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A ROLL CALL IN THAT MOTION? >> ACTUALLY, MR. CHAIR. AHEAD OF THAT VOTE IF WE CAN GET A

MOTION TO EXCUSE. OH, SURE. LET ME AND THEN WE MAKE A MOTION TO EXCUSE SUPERVISOR SAUTER. YES. AND ON THAT MOTION TO EXCUSE SUPERVISOR SAUTER UNTIL THEIR ARRIVAL. VICE CHAIR CHEN CHENNAI. CHAIR DORSEY

I. DORSEY I HAVE TO US THE MOTION PASSES. >> SUPERVISOR SAUTER IS EXCUSED UNTIL HE GETS HERE. >> NOW AT THIS TIME MAY WE MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE

RECOMMENDATION? YES. AND ON THAT MOTION TO REFER TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN. >> CHEN I CHAIR DORSEY I. >> DORSEY WE HAVE TWO EYES. THANK YOU, MR. CLERK. THE MOTION PASSES.

CONGRATULATIONS, MR. CLERK. >> PLEASE CALL ITEM NUMBER TWO. YES. ITEM NUMBER TWO IS A RESOLUTION APPROVING MODIFICATION NUMBER THREE TO A PROFESSIONAL SERVICES AGREEMENT TO PROVIDE SHUTTLE BUS

SERVICES AT THE SAN FRANCISCO INTERNATIONAL AIRPORT BETWEEN SFO HOTEL SHUTTLE INC AND CITY AND COUNTY HACKING BY AND THROUGH ITS AIRPORT COMMISSION TO INCREASE THE CONTRACT AMOUNT BY APPROXIMATELY

25.9 MILLION FOR A NEW AMOUNT NOT TO EXCEED APPROXIMATELY 98.5 MILLION WHEN NO CHANGE TO THE FIVE YEAR TERM OF JANUARY 1ST, 2023 THROUGH DECEMBER 31ST, 2027. >> PURSUANT TO THE CHARTER. >> MR. CHAIR.

THANK YOU, MR. CLERK. WE'RE JOINED BY DEANNA BULLOCK ,MANAGER OF GOVERNMENT AFFAIRS FOR THE SAN FRANCISCO INTERNATIONAL AIRPORT. AND AS LIKE WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE. >> THE

FLOOR IS YOURS. THANK YOU. GOOD MORNING, SUPERVISORS. THE AIRPORT IS SEEKING YOUR APPROVAL FOR MODIFICATION NUMBER THREE TO A CONTRACT WITH SFO HOTEL SHUTTLE INC TO OPERATE AND MAINTAIN AIRPORT

SHUTTLE BUS SERVICES FOR A NOT TO EXCEED AMOUNT OF 98,110,172 AND NO CHANGE TO THE ORIGINAL FIVE YEAR TERM. THIS NOT TO EXCEED AMOUNT INCORPORATES THE RECOMMENDATION FROM THE VLA TO REDUCE THE AMOUNT

IN LINE WITH THE REVISED BUDGET. >> SFO HAS OPERATED SHUTTLE BUS SERVICES FOR OVER 40 YEARS CONNECTING AIRPORT TERMINALS WITH ON CAMPUS AND REGIONAL DESTINATIONS. >> TODAY THE AIRPORT RUNS TWO ON

CAMPUS ROUTES BETWEEN TERMINALS AND REMOTE PARKING. >> SUPPORTED BY 50 AIRPORT OWNED BUSSES ALONG WITH ASSOCIATED ADMINISTRATION AND MAINTENANCE FACILITIES, THE AIRPORT IS ALSO EXPANDING ITS SERVICE

TO INCLUDE REGIONAL ROUTES FOR AIRPORT WITH WORKERS WITH SERVICE TO HAYWARD, CASTRO VALLEY, EL SERINO, VALLEJO, OAKLAND AND SAN FRANCISCO. FARES FOR THESE REGIONAL ROUTES ARE COLLECTED BY THE OPERATOR

ON THE AIRPORT'S BEHALF. THE INCREASE IN THE CONTRACT AMOUNT WILL BE USED TO SUPPORT ADDITIONAL LINES AND SERVICES. ADDITIONAL SERVICE EXPANSIONS PLANNED FOR THE REMAINING TERM INCLUDE AIRFIELD

BUSSING BEGINNING IN MARCH 2027 AND ADDITIONAL TRIPS ON THE COMMUTER ROUTE TO VALLEJO BEGINNING IN FISCAL YEAR 2728. THE CONTRACTOR COLLECTS FARES ON THE REGIONAL LINES, MANAGES THE FLEET AND PERFORMS

PERFORMANCE PREVENTATIVE MAINTENANCE REPAIRS, FUELING CHARGING SUPPORT AND OPERATIONAL DATA REPORTING. SFO CONDUCTS SEMIANNUAL CONTRACTOR PERFORMANCE EVALUATIONS WHICH SHOW THAT THEY ARE GENERALLY

MEETING OR EXCEEDING THE AIRPORT'S EXPECTATIONS. >> HOWEVER IMPROVEMENT IS NEEDED IN AREAS SUCH AS INCIDENT REPORTING AND CUSTOMER COMPLAINT RESPONSES. >> THE CONTRACTOR HAS IMPLEMENTED A NEW INCIDENT

AND CUSTOMER RESPONSE TOOL IN SEPTEMBER 2026 TO ADDRESS THESE ISSUES. >> THE BILL RECOMMENDS APPROVAL WITH THE PROPOSED AMENDMENT AND I AM HAPPY TO ANSWER ANY QUESTIONS ALONG WITH MY COLLEAGUES FROM

LANDSIDE OPERATIONS. >> GREAT. THANK YOU SO MUCH. NOW WE'LL HEAR FROM THE BUDGET LEGISLATIVE ANALYST AS WELL. THE FLOOR IS YOURS. >> GOOD MORNING SUPERVISORS FOR SENIOR MANAGEMENT FROM THE BUDGET AND

LEGISLATIVE ANALYST'S OFFICE. ITEM TWO WOULD APPROVE A THIRD MODIFICATION TO THE AIRPORT SHUTTLE BUS CONTRACT WITH SFO HOTEL SHUTTLE INC. IT'S AN INCREASE OF ABOUT 26 MILLION TO THE NOT TO EXCEED

AMOUNT FOR A NEW TOTAL OF ABOUT 98.1 MILLION WITH OUR RECOMMENDATION. >> THE CONTRACTOR PROVIDES SHUTTLE SERVICES FOR AIRPORT EMPLOYEES TO REMOTE PARKING LOTS AT THE AIRPORT. AND THEN THEY'VE ALSO

EXPANDED SERVICE SINCE 2023 TO LAUNCH FOUR NEW COMMUTER ROUTES THAT GO TO HAYWARD, CASTRO VALLEY, EL SERINO, VALLEJO, OAKLAND AND SAN FRANCISCO LOCATIONS. THEY COLLECT FARE REVENUE ON THE REGIONAL

LINES AND THEY ALSO MAINTAIN THE AIRPORT'S FLEET OF ABOUT 50 BUSSES. >> AS MENTIONED BOTH BY THE AIRPORT STAFF, THE AIRPORT IS WORKING WITH THE CONTRACTOR TO IMPROVE THEIR INCIDENT REPORTING TO THE

AIRPORT AS WELL AS FOLLOW UP ON CUSTOMER COMPLAINTS BUT ARE GENERALLY MEETING THE AIRPORT'S OTHER EXPECTATIONS. >> WE SHOW THE BUDGET AND EXHIBIT TO YOU ON PAGE NINE OF A REPORT. IT INCLUDES A FIXED

MANAGEMENT FEE OF ABOUT $77,000 PER MONTH WHICH IS ABOUT $0.9 MILLION ANNUALLY. THE INCREASE OF 26 MILLION IN THE NOT TO EXCEED AMOUNT IS PRIMARILY DRIVEN BY THE EXPANSION IN THE REGIONAL COMMUTER

LINES. IT'S ALSO DRIVEN BY HIGHER THAN BUDGETED LABOR AND OPERATING COSTS. >> THE AGREEMENTS FUNDED BY AIRPORT OPERATING FUNDS AND WE HAVE A RECOMMENDATION AS I MENTIONED TO REDUCE THE NOT TO EXCEED

AMOUNT BY ABOUT 465 THOUSAND TO $98,110,172. IN LINE WITH THE REVISED BUDGET AND WE RECOMMEND APPROVAL OF ITEM TWO AS AMENDED. >> THANK YOU. >> IS IT OKAY I MEAN IS THAT JUST MAYBE THIS IS A QUESTION

FOR THE CITY ATTORNEY OR SHOULD I READ INTO THE RECORD THE AMENDMENT OR IS IT SUFFICIENT AS STATED? >> DEPUTY CITY ATTORNEY BRAD RUSTY I THINK IT'S SUFFICIENT AS STATED BY THE DEPARTMENT. OKAY, GREAT.

OKAY. LOOKS GOOD. I KNOW THIS IS IMPORTANT AS I UNDERSTAND IT, ESPECIALLY FOR THE WORKFORCE WHO MAY BE WORKING AFTER HOURS. SO WE WANT TO SUPPORT THE ABILITY OF PEOPLE TO WORK AT SFO. SO THANK YOU FOR

THIS AND FOR EVERYBODY'S SCRUTINY ON IT. I DON'T HAVE ANY QUESTIONS. I THINK IT'S PRETTY STRAIGHTFORWARD AT THIS TIME. >> WHY DON'T WE INVITE A PUBLIC COMMENT I GUESS IF WE HAVE ANY MEMBERS OF THE

PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE REGARDING THIS ITEM NUMBER TWO, THAT WAS YOUR OPPORTUNITY, MR. CHAIR. WE HAVE NO SPEAKERS. THANK YOU, MR. CLERK. >> THE PUBLIC COMMENT IS NOW CLOSED AND AT

THIS TIME I WOULD MOVE TO AMEND THE RESOLUTION AS THE BLR HAS ADVISED AND AS PRESENTED BY THE DEPARTMENT AND TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. >>

MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION? YES AND ON THAT MOTION THAT WE AMEND THIS RESOLUTION TO ACCEPT THE BAILEY'S RECOMMENDATIONS AND THAT WE REFER TO THE FULL BOARD WITH THE

RECOMMENDATION AS AMENDED. VICE CHAIR CHEN CHEN CHAIR DORSEY I. >> DORSEY WE HAVE TWO EYES. THANK YOU, MR. CLERK. THE MOTION PASSES. >> THANK YOU SO MUCH. MR. PARKER, CAN YOU PLEASE CALL ITEM NUMBER

THREE? YES. ITEM NUMBER THREE IS A RESOLUTION RETROACTIVELY AUTHORIZING THE OFFICE OF THE DISTRICT ATTORNEY TO ACCEPT AND EXPEND THE GRANT IN THE AMOUNT OF 525,000 FROM THE CRANK START FOUNDATION TO

SUPPORT PARTICIPATION IN THE DISTRICT ATTORNEY'S ACCESS TO HOPE INITIATIVE WHICH INCLUDES A TRANSFORMATIVE EDUCATIONAL JOURNEY WHERE YOUTH RETRACE THE FOOTSTEPS PARDON OF THE CIVIL RIGHTS MOVEMENT BY

VISITING HISTORIC LANDMARKS ACROSS ALABAMA, ARKANSAS, MISSISSIPPI AND TENNESSEE. FOR THE TERM OF MAY 1ST 2026 THROUGH APRIL 30TH 2029. >> MR. CHAIR THANK YOU, MR. CLERK. AND WE ARE JOINED BY MS. MONEY

FOR WILLIS, CHIEF OF STAFF FOR THE SAN FRANCISCO DISTRICT ATTORNEY'S OFFICE. ONE OF MY ALMA MATERS. >> WE WELCOME HIM AS WELL AS TO TO THE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. THANK

YOU AGAIN. MY NAME'S MONIFA WILLIS, CHIEF OF STAFF FOR THE DISTRICT ATTORNEY'S OFFICE. THANK YOU MEMBERS FOR HEARING THIS MATTER TODAY. WE ARE ASKING FOR YOU TO AUTHORIZE A RETROACTIVE ACCEPT AND

EXPEND FROM CRANK START WITH A TOTAL AMOUNT OF $525,000 THAT WILL SUPPORT THREE YEARS OF OPERATION ON THIS VERY UNIQUE TRIP CALLED SOJOURN TO THE PAST. >> IT IS A PART OF OUR YOUTH AND YOUNG ADULT

SERVICE UNIT PROGRAMING. WE OFFER THIS TRIP FREE OF CHARGE TO YOUTH IN DISTRICTS THAT ARE HIT HARDEST BY CRIME. WE IDENTIFY THAT THROUGH THE CRIME STATISTICS THESE YOUNG FOLKS PARTICIPATE IN AN EIGHT

DAY TRIP WHERE THEY TRAVEL THROUGH THE CIVIL RIGHTS TOURS RANGING FROM ALABAMA, ARKANSAS ,MISSISSIPPI, TENNESSEE AND ACTUALLY WALK THROUGH HISTORY AND TALK TO THE PEOPLE THAT LIVE THROUGH THIS

HISTORY. AND THE GOAL OF THIS REALLY IS TO INTERVENE AND BREAK CRIME CYCLES BECAUSE WHAT WE KNOW IS THAT WHEN YOUNG PEOPLE ACTUALLY TOUCH HISTORY, TOUCH RESILIENCY AND HEAR THOSE STORIES, IT CAN

INSTILL RESILIENCY AND HOPEFULLY SEND THEM ON A TRAJECTORY OF HOPE. HENCE THE ACCESS TO HOPE INITIATIVE. WE HAVE BEEN RUNNING THIS PROGRAM NOW FOR THREE YEARS AND SO THIS GRACIOUS FUNDING FROM CRANK

START WILL HELP US CONTINUE FOR THREE MORE YEARS. AND AFTER THIS WE HOPE TO THEN LAUNCH A SECOND TRIP THAT WILL BE MORE LOCAL SO THAT WE CAN INCREASE YOUNG FOLKS ACCESS TO EXPERIENCES LIKE THIS. >>

GREAT. THANK YOU. THANKS SO MUCH. I'VE BEEN ON THAT TRIP WITH CHIEF OF POLICE BILL SCOTT. >> I AM A BIG BELIEVER IN THE VALUE OF THIS AND FOR ANYBODY WHO HASN'T BEEN ON IT I'D RECOMMEND IT. YEAH, I'D

LOVE TO SEE SOMETHING SOME SOMETHING LIKE THIS RESUMED IN OTHER DEPARTMENTS AND IN OTHER FUNCTIONS BECAUSE I THINK IT REALLY IS IMPORTANT. SO I APPRECIATE THE WORK YOU'RE DOING ON THIS. I THINK IT'S

MEANINGFUL. ANY QUESTIONS OR COMMENTS? I THINK THIS IS PRETTY STRAIGHTFORWARD. AT THIS TIME I WANT TO INVITE A PUBLIC COMMENT ON THIS ITEM. YES, WE ARE OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER

THREE. IF WE HAVE ANY MEMBERS OF THE PUBLIC WISH TO ADDRESS THIS COMMITTEE. >> MR. CHAIR, WE HAVE NO SPEAKERS. THANKS SO MUCH. PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED. THANK YOU. AND I SEE NO

FURTHER QUESTIONS OR COMMENTS. I'D MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION? YES. >> AND ON

THAT MOTION THAT WE REFER TO THE FULL BOARD TO THE RECOMMENDATION VICE CHAIR CHEN CHEN CHAIR DORSEY DORSEY. >> I HAVE TWO EYES. THANK YOU, MR. CLERK. THE MOTION PASSES. THANKS. >> NEXT, MR. CLERK, CAN

WE CALL UP ITEM NUMBER FOUR? YES. ITEM NUMBER FOUR IS A RESOLUTION RETROACTIVELY AUTHORIZING THE DEPARTMENT OF ADULT PROBATION TO ACCEPT AND EXPEND A GRANT IN THE AMOUNT OF 100,000 FOR THE PERIODS OF

OCTOBER 1ST 2026 THROUGH SEPTEMBER 30TH 2027, 2028 AND 2029 FOR A TOTAL NOT TO EXCEED AMOUNT THAN 300,000 FROM THE CALIFORNIA OFFICE OF EMERGENCY SERVICES FOR PROBATION SPECIALIZED UNITS PROGRAM

FEDERALLY FUNDED THROUGH THE VIOLENCE AGAINST WOMEN ACT FOR THE GRANT PERIOD OF OCTOBER 2026 THROUGH SEPTEMBER 30TH 2029 TO CONTINUE THE PROBATION SPECIAL ISED UNIT PROGRAM FEDERALLY FUNDED THROUGH

THE VIOLENCE AGAINST WOMEN ACT SHOULD THE GRANT BE AWARDED? MR. CHAIR. THANK YOU MR. CLERK. AND WE'RE JOINED BY ALEX HARDWICK, LEGISLATIVE MANAGER FOR THE SAN FRANCISCO ADULT PROBATION DEPARTMENT. MR.

HARDWICK, WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE. THE FLOOR IS YOURS. THANK YOU. CHAIR DORSEY SUPERVISOR TEN ADULT PROBATION IS REQUESTING THE APPROVAL OF A $300,000 GRANT OVER THREE YEARS

FOR CONTINUED SPECIALIZED SUPERVISION OF DOMESTIC VIOLENCE AND RELATED OFFENSES. THE GRANT WOULD PARTIALLY FUND ONE EXISTING DEPUTY PROBATION OFFICER WITH 25,000 ANNUAL CITY MATCH AND FRINGE BENEFITS.

AND SO THE PURPOSE IS FOCUSED INTENSIVE SUPERVISION MONITORING FOR COURT CONDITIONS. COORDINATING WITH VICTIM ADVOCATES AND JUSTICE PARTNERS . THIS ESSENTIALLY FUNDS ONE POSITION IN OUR DOMESTIC

VIOLENCE UNIT AND ALLOWS FOR CASELOADS TO BE LOWER AND FOR YOU KNOW, SERVICES SUPERVISION LIKE THAT TO REALLY HAVE THE EFFECTS THAT IT CAN. BEYOND THAT I'M HAPPY SO IT'S AND IT'S THROUGH THE

CALIFORNIA OFFICE OF EMERGENCY SERVICES AND WE'VE HAD THIS GRANT SINCE I BELIEVE 2021. SO I'M HAPPY TO ANSWER ANY QUESTIONS. >> KRAMER I KNOW IT HAPPENS TO BE OCTOBER IS DOMESTIC VIOLENCE AWARENESS

MONTH SO THIS IS TIMELY. >> I THINK. I GUESS THE ONLY QUESTION I HAVE SOMETIMES WHEN WHEN IT'S FEDERAL SUPPORT WE HOW IS THE FEDERAL GOVERNMENT TREATING SOME OF THESE? ARE THEY IT BECAUSE THERE'S MANY

GRANTS AND THINGS THAT WERE PULLED BACK AND I BUT THEN WE HAVE SOME THINGS TOO LIKE RYAN WHITE FUNDING WHERE THERE'S THEY'RE STILL ON BOARD. YEAH. HOW IS FEDERAL SUPPORT DONE IN THIS REALM? >> I MEAN

THERE YEAH SO THERE IS THERE HAS BEEN I THINK INITIALLY A LOT OF FUNDING CUT FROM OFFICE OF SOME VIOLENCE AGAINST WOMEN. YOU KNOW UNFORTUNATELY A LOT OF I THINK FUNDING FOR VICTIM VICTIM ADVOCATES

VICTIM SUPPORTS. BUT THERE IS STILL YOU KNOW, THERE IS STILL FUNDING THERE TO SUPPORT JUSTICE AGENCIES AND COORDINATING TIME. FORTUNATELY BUT YEAH, OKAY, GREAT. WE APPRECIATE YOUR WORK ON THIS. I

DON'T THINK WE HAVE ANY MORE QUESTIONS OR COMMENTS AND WE HAVE NO BAILEY REPORT ON THIS ONE. SO AT THIS TIME WHY DON'T WE INVITE A PUBLIC COMMENT? THANKS. THANK YOU. >> YES, WE'RE OPENING PUBLIC

COMMENT FOR THIS ITEM NUMBER FOUR. IF WE HAVE ANY MEMBERS OF THE PUBLIC WISH TO ADDRESS THIS COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS. >> THANK YOU. JUST RECORD PUBLIC COMMENT ON THIS ITEM IS NOW

CLOSED TO ME AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL CALL IN THAT MOTION? >> YES. AND ON

THAT MOTION THAT WE REFER TO THE FULL BOARD WITH RECOMMENDED VICE CHAIR CHEN CHEN. >> CHAIR DORSEY. ALL RIGHT. DORSEY I WAVE TO US. >> THANK YOU, MR. CLERK. THE MOTION PASSES AND CAN WE NOW CALL UP

ITEM NUMBER FIVE? YES, I KNOW NUMBER FIVE IS A RESOLUTION APPROVING A PORT COMMISSION LEASE WITH NORCAL RENTAL GROUP LLC FOR APPROXIMATELY 45,000FT2 OF PAVED LAND AT PIER 96 FOR THE STORAGE AND

PARKING OF CONSTRUCTION RELATED VEHICLES AND EQUIPMENT. THE TERM IS EFFECTIVE UPON APPROVAL OF THIS RESOLUTION AND COMPLETION OF PORT'S PIER 96 GATEHOUSE PROJECT WITH AN INITIAL LEASE TERM OF FIVE

YEARS WITH TWO OPTIONS TO EXTEND THE TERM FOR A TOTAL OF FIVE ADDITIONAL YEARS HAD A MONTHLY BASE RENT OF APPROXIMATELY 32,000 SUBJECT TO ANNUAL 3% INCREASES FOR BOTH THE INITIAL AND EXTENDED TERMS

AND WITH A TOTAL BASE RENT OF APPROXIMATELY 4.3 MILLION OVER THE FULL EXTENDED TERM. >> MR. CHAIR THANK YOU, MR. CLERK. >> AND WE ARE JOINED BY MRS. KIM BEALL, ASSISTANT DEPUTY DIRECTOR OF REAL ESTATE

FOR THE PORT OF SAN FRANCISCO. MISS BEAL WE WELCOME YOU TO THE FINANCE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. THANK YOU AND GOOD MORNING SUPERVISORS AGAIN MY NAME IS KIMBERLY BEAL,

ASSISTANT DEPUTY DIRECTOR FOR REAL ESTATE WITH THE PORT. AND TODAY I'M HERE SEEKING APPROVAL OF A PROPOSED LEASE WITH NORCAL RENTAL GROUP ALSO KNOWN AS CRESCO FOR LEASE NUMBER L17432. >> SO TO PROVIDE

A LITTLE BACKGROUND, CRESCO IS AN EXISTING PORT TENANT AT PIER 96 UTILIZING PAVED LAND FOR STORAGE AND PARKING CONSTRUCT STORAGE AND CONSTRUCTION RELATED VEHICLES AND EQUIPMENT . THEIR CURRENT LEASE

COVERS APPROXIMATELY 15,870FT2 WHICH BEGAN IN MAY OF 2025 AFTER TEMPORARILY RELOCATED TO ACCOMMODATE THE PORT'S PIER 96 GATEHOUSE DEMOLITION PROJECT AND HAS BEEN IN HOLD OVER SINCE APRIL 30TH OF THIS

YEAR. >> TO PROVIDE YOU WITH SOME OF THE KEY TERMS OF THE PROPOSED NEW LEASE THE PREMISES WILL BE APPROXIMATELY 44,750FT2 OF PAVED LAND STILL AT PIER 96. THE USE WILL REMAIN THE SAME WHICH IS STORAGE

AND PARKING FOR CONSTRUCTION RELATED VEHICLES AND EQUIPMENT. THE LEASE TERM IS FIVE YEARS WITH ONE THREE YEAR OPTION AND A SUBSEQUENT TWO YEAR OPTION TO EXTEND THE GATE HOUSE DEMOLITION PROJECT HAS

BEEN COMPLETED SO THE COMMENCEMENT OF THIS AGREEMENT WOULD BE THE FIRST DAY OF THE MONTH FOLLOWING THE BOARD'S APPROVAL IN THE FIRST YEAR. >> THE RENT FOR THIS AGREEMENT IS APPROXIMATELY $32,000 PER

MONTH WHICH EQUATES TO $0.71 PER SQUARE FOOT ON A MONTHLY BASIS WHICH IS WITHIN THE APPROVED PARAMETER RENTS BY THE PORT COMMISSION. OVER THE INITIAL TERM THIS TOTALS ABOUT 2 MILLION AND IF BOTH

OPTIONS ARE EXERCISED IT WOULD BE UP TO ABOUT 4.3 MILLION OVER THE FULL TERM. I THINK IT'S IMPORTANT TO MENTION THAT UNDER THE PORT'S SOUTHERN WATERFRONT BEAUTIFICATION POLICY WHICH RECOGNIZES THE

CONCENTRATION OF MARITIME AND INDUSTRIAL USES ALONGSIDE THE EASTERN NEIGHBORHOODS PARKS, WETLANDS, PUBLIC SHORELINE 6.5% OF THE REVENUE GENERATED BY THE LEASE WILL BE ALLOCATED TO THE PORT'S SOUTHERN

WATERFRONT BEAUTIFICATION FUND. >> THE FUNDS ARE USED BY THE PORT FOR BROADER PUBLIC AND WATERFRONT IMPROVEMENTS IN THE SOUTHERN WATERFRONT SUCH AS FOUR PARKS OPEN SPACE WETLANDS REMOVAL OF

DETERIORATED PIERS AND HISTORIC PRESERVATION ENSURING THAT INDUSTRIAL AND MARITIME TENANTS CONTRIBUTE TO THE SURROUNDING COMMUNITIES AND WATERFRONT RATHER THAN DETRACT FROM THEM. >> SO IN SUMMARY THE

LEASE RETURNS CRISCO TO ITS ORIGINAL PIER 96 AREA FOLLOWING THE GATEHOUSE DEMOLITION PROJECT. IT EXPANDS THE PREMISES FROM 15,870FT2 TO APPROXIMATELY 44,750 SQUARE FEET. THE LEASE PROVIDES A FIVE YEAR

INITIAL TERM AND STABLE RENTAL INCOME FOR THE PORT. THE LEASE TERMS COMPLY WITH THE PORT COMMISSION'S SCHOOL YEAR 2628 LEASING PARAMETERS. AND THIS CONCLUDES MY PRESENTATION. THANK YOU FOR YOUR

ATTENTION AND I'M AVAILABLE FOR ANY QUESTIONS. ALL RIGHT. >> THANKS SO MUCH, MISS BEALE. NEXT WE'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYSTS MS.. MELNYK THE FLOOR IS YOURS. >> ITEM FIVE IS A

PROPOSED RESOLUTION TO APPROVE A NEW LEASE WITH NORCAL RENTAL GROUP LLC, ALSO KNOWN AS CRESCO FOR APPROXIMATELY 45,000FT2 OF PAVED LAND AT PIER 96. IT HAS AN INITIAL TERM OF FIVE YEARS AND OPTIONS TO

EXTEND FOR ANOTHER FIVE YEARS. CRESCO CURRENTLY LEASES PAID LAND ADJACENT TO PIER 96 AND STORES CONSTRUCTION EQUIPMENT AND VEHICLES ON SITE . UNDER THE NEW LEASE THEY WOULD RETURN TO A SITE AT PIER 96

AND EXPAND THE SIZE OF THEIR SITE TO 45 THOUSAND SQUARE FEET. THE TENANT WOULD PAY ANNUAL BASE RENT OF APPROXIMATELY $381,000 WHICH IS ABOUT $8.52 PER SQUARE FOOT. >> THAT IS BASED ON THE PORT'S

STANDARD RENTAL RATE FOR PAVED LAND AND ALSO WITH A 5% DISCOUNT BECAUSE THE SITE QUALIFIES FOR THE PORT'S LARGELY IN DISCOUNT WHICH IS A PORT WIDE POLICY. THE LEASE WOULD GENERATE APPROXIMATELY 2

MILLION IN REVENUES OVER THE INITIAL FIVE YEAR TERM AND ABOUT 4.3 MILLION OVER THE TOTAL POTENTIAL TEN YEAR TERM AS SHOWN ON PAGE 14 OF OUR REPORT. AS MENTIONED BY PORT STAFF, 6.5% OF LEASE REVENUES

WOULD ACCRUE TO THE PORT'S SOUTHERN WATERFRONT COMMUNITY BENEFITS AND BEAUTIFICATION FUNDS AND ALL OTHER REMAINING REVENUES WOULD ACCRUE TO THE PORT HARBOR FUND. >> WE RECOMMEND APPROVAL OF ITEM FIVE.

>> GREAT. THANKS SO MUCH. THIS LOOKS STRAIGHT FORWARD TO ME. GOOD WORK. I DON'T THINK THERE'S ANYBODY WITH QUESTIONS OR COMMENTS. SO THANK YOU SO MUCH FOR YOUR PRESENTATION AND THANK YOU FOR YOUR

ANALYSIS TO THE BOE. >> AND AT THIS TIME WHY DON'T WE INVITE A PUBLIC COMMENT? YES, WE'RE OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER FIVE. IF WE HAVE ANY MEMBERS OF THE PUBLIC OR SHOULD ADDRESS THIS

COMMITTEE. >> MR. CHAIR, WE HAVE NO SPEAKERS. THANK YOU, MR. CLERK PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED. AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO THE BOARD OF SUPERVISORS 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 AND VICE CHAIR CHEN CHEN AND CHAIR DORSEY DORSEY WE

HAVE TWO EYES. >> THE MOTION PASSES. WE'RE ACTUALLY GOING TO THE PORT. MR. CLERK, CAN WE PLEASE CALL UP ITEM NUMBER SIX? YES. ITEM NUMBER SIX IS A RESOLUTION RETROACTIVELY AUTHORIZING THE DEPARTMENT

OF PUBLIC HEALTH TO ACCEPT AND EXPEND MODIFICATION NUMBER THREE FOR A GRANT INCREASE OF APPROXIMATELY 72 THOUSAND FROM THE NATIONAL INSTITUTES OF HEALTH THROUGH THE FAMILY HEALTH INTERNATIONAL FOR

PARTICIPATION IN A PROGRAM ENTITLED HIV PREVENTION PREVENTION TRIALS NETWORK, HPT AND FOR THE PERIOD OF DECEMBER 1ST, 2025 THROUGH NOVEMBER 30TH 2026 AND A TOTAL GRANT AMOUNT OF APPROXIMATELY 181,000

FOR THE TOTAL GRANT PERIOD OF APRIL 1ST 2024 THROUGH NOVEMBER 30TH 2026 AND TO AUTHORIZE THE DIRECTOR OF HEALTH TO ENTER INTO AMENDMENTS OR MODIFICATIONS TO THE GRANT AGREEMENT THAT DO NOT MATERIALLY

INCREASE THE OBLIGATIONS NOR LIABILITIES TO THE CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSES OF THE GRANT FOR THIS RESOLUTION. >> MR. CHAIR. >> THANK YOU, MR. CLERK. WE ARE JOINED BY DR. HYMAN

SCOTT WITH THE SAN FRANCISCO DEPARTMENT OF PUBLIC HEALTH. DR. SCOTT, WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. THANK YOU. I APPRECIATE THE OPPORTUNITY TO PRESENT THIS

TO THE SUPERVISORS TODAY. SO THIS IS A GRANT EXCEPT AN EXTEND REQUEST FROM THE NATIONAL INSTITUTES OF HEALTH THROUGH THE FAMILY HEALTH INTERNATIONAL FOR THE HIV PREVENTION TRIALS NETWORK. AND THIS

GRANT AMOUNT WAS ORIGINALLY 181,434 WITH THE GRANT INCREASE AMOUNT OF 72,466. THE TIMELINE IS THROUGH DECEMBER 1ST TO 2025 THROUGH NOVEMBER 30TH OF THIS YEAR. AND THIS GRANT WILL SUPPORT THE CLINICAL

RESEARCH TRIAL THAT IS DESIGNED TO EVALUATE THE IMPACT OF SEVERAL OF OUR MOBILE HEALTH TOOLS ON HIV AND STI PREVENTION UPTAKE AND PERSISTENCE. THE INVESTIGATORS THAT WILL LEAD THE PROTOCOL ARE LEADING

THE PROTOCOL DEVELOPMENT AND IMPLEMENTATION OF THESE OF THIS RESEARCH ACROSS MULTIPLE SITES BOTH IN THE U.S. AND INTERNATIONALLY. WE ARE SEEKING RETROACTIVE AUTHORIZATION TO ACCEPT THIS GRANT. WE HAVE

RECEIVED SEVERAL INCREASES ON THIS GRANT WHICH IS ON A MULTIYEAR CYCLE FROM 2024. I RECEIVED NOTICE OF THE MOST RECENT INCREASE IN GRANT FUNDS IN ON JUNE 18TH OF THIS YEAR FOR A PROJECT START DATE

THAT WAS RETROACTIVE TO DECEMBER 1ST OF 2025. WE HAVE BROUGHT THIS ITEM TO THE BOARD OF SUPERVISORS AFTER GOING THROUGH THE FISCAL APPROVALS PROCESS INCLUDING THE COMPTROLLER'S OFFICE REVIEW AND

APPROVAL. SO I'M HAPPY TO ANSWER ANY QUESTIONS ABOUT THIS GRANT EXCEPT IN EXTENT. >> THANK YOU. THANK YOU, DOCTOR. I DON'T HAVE ANY QUESTIONS OTHER THAN JUST TO SAY THAT, YOU KNOW, PREP HAS BEEN ONE

OF THE MOST EFFECTIVE TOOLS THAT WE HAVE TO PREVENT HIV AND WE HOPE FULFILL THE PROMISE OF GETTING TO ZERO, WHICH IS SAN FRANCISCO'S AMBITIOUS AND WORTHWHILE INITIATIVE TO END THE HIV EPIDEMIC IN ITS

IN OUR CITY. ITS ASPIRATIONAL OBJECTIVE IS ZERO NEW INFECTIONS OF HIV ZERO PREVENTABLE HIV RELATED DEATHS AND ZERO STIGMA AND DISCRIMINATION. >> I THINK AS A PRACTICAL MATTER DUE TO THESE STATED GOALS

WHICH IS TO REDUCE HIV TRANSMISSION AND PREVENTABLE DEATHS BY 90% WHILE IMPROVING THE QUALITY OF LIFE FOR PEOPLE LIVING WITH HIV. AND I THINK AMONG OTHER CITY DEPARTMENTS I THINK THAT'S GOING TO BE

YOU KNOW, AS WE HAVE A POPULATION OF PEOPLE WHO ARE AGING WITH HIV, THAT'S SOMETHING THAT WE'RE GOING HAVE TO BE MORE AND MORE FOCUSED ON. I'M VERY PROUD THAT SAN FRANCISCO HAS BEEN A NATIONAL LEADER

IN HIV PREVENTION AND TREATMENT FROM THE EARLIEST DAYS IN THE CONTINUED FEDERAL INVESTMENT FROM AI IS ESSENTIAL TO SUSTAINING THAT PROGRESS. I COULD ASK ARE WE YOU KNOW AS AS I DO WITH FEDERAL SUPPORT

IT'S MY UNDERSTANDING THAT THE FEDERAL THIS HAS ENJOYED BIPARTISAN SUPPORT AND HOPEFULLY THAT CONTINUES AT A TIME WHEN THE FEDERAL PUBLIC HEALTH FUNDING CAN CAN HAVE SOME UNCERTAINTY. WE SHOULD BE

CLEAR ABOUT THE VALUE OF THESE PARTNERSHIPS AND THE IMPORTANCE OF PROTECTING THEM. SO I'M GRATEFUL THAT THIS FUNDING WILL ALLOW TO CONTINUE CONTRIBUTING ITS EXPERTISE TO HIV AND STI PREVENTION

RESEARCH GENERALLY. >> I'M HAPPY TO SUPPORT AND CO-SPONSOR THIS. SO THANK YOU FOR ALL YOUR WORK ON IT. >> THANK YOU. THANKS. AND AT THIS TIME WHY DON'T WE INVITE OUR PUBLIC COMMENT ON THIS ITEM? >>

YES. IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE REGARDING THIS ITEM NUMBER SIX NOW IS OUR OPPORTUNITY. >> MR. CHAIR, WE HAVE NO SPEAKERS. THANK YOU. SECOND PUBLIC COMMENT

ON THIS ITEM IS NOW CLOSED. AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION?

YES. AND ON THAT MOTION THAT WE REFER TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN CHEN CHAIR DORSEY I DON'T SEE WHY WE HAVE TO US. >> THANK YOU, MR. CLERK. MOTION PASSES. >> CONGRATULATIONS,

MR. CLERK. CAN WE CALL UP ITEM NUMBER SEVEN? YES. ITEM NUMBER SEVEN IS A RESOLUTION RETROACTIVELY AUTHORIZING THE DEPARTMENT OF PUBLIC HEALTH TO ACCEPT AND EXPEND GRANT FUNDS AUTHORIZING DPS TO ENTER

INTO A GRANT AGREEMENT FOR A TERM COMMENCING ON THE EXECUTION OF THE GRANT AGREEMENT THROUGH JUNE 30TH 2030 BETWEEN THE CITY AND COUNTY ACTING BY AND THROUGH GBH AND THE CALIFORNIA DEPARTMENT OF

HEALTH CARE SERVICES UNDER THE BOND BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM CAP ROUND TO BUY IN THROUGH ITS THIRD PARTY ADMINISTRATOR. ADVOCATES FOR HUMAN POTENTIAL INC HAVING ANTICIPATED

REVENUE OF APPROXIMATELY 14.2 MILLION INCLUDING A PROVISION ALLOWING ALLOWING FOR THE RECAPTURE OF ALLOWABLE PROJECT EXPENSES INCURRED BEGINNING ON MARCH 11TH, 2026 INCLUDING A RECORDED DECLARATION OF

RESTRICTIONS AT 415 TRADEWINDS AVENUE AUTHORIZING THE GRANTOR TO APPLY FOR A RECEIVER IN THE EVENT OF THE CITY'S DEFAULT AND AUTHORIZING VPA TO ENTER INTO AMENDMENTS OR MODIFICATIONS TO THE GRANT

AGREEMENT THAT DID NOT MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES OF THE CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSE OF THE GRANT. >> MR. CHAIR. THANK YOU, MR. CLERK. WE ARE JOINED BY

DR. KELLY HOM SUBSTANCE USE DISORDER SYSTEM OF CARE DIRECTOR AT THE SAN FRANCISCO DEPARTMENT OF PUBLIC HEALTH. >> DR. HOM WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE AND THE FLOOR IS YOURS. >>

THANKS SO MUCH. SO GOOD MORNING CHAIR DORSEY AND VICE CHAIR CHEN. >> MY NAME IS KELLY HARM AND I AM THE DIRECTOR OF SUBSTANCE USE SERVICES. >> I'M HERE TO REQUEST APPROVAL TO ACCEPT AND EXPAND THE

BOND BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE OR PROGRAM OR BOND B CHIP FOR SHORT ROUND TO GRANT THE BOND B CHIP ROUND TO PROVIDES A LITTLE OVER $14 MILLION TOWARDS THE CONSTRUCTION OF A BUILDING IN

TREASURE ISLAND THE BEHAVIORAL HEALTH THAT WILL BE USED FOR BEHAVIORAL HEALTH. THIS INCLUDES 10% MATCHING FUNDS FROM THE 2020 HEALTH AND RECOVERY BOND AND ELIGIBLE SUNK FUNDS SUNK COSTS. >> THE GRANT

TIMELINE IS MARCH 11TH, 2026 THROUGH JUNE 30TH 2030. THE FUNDER IS DHS OR THE DEPARTMENT OF HEALTH CARE SERVICES AND THE GRANT IS ADMINISTERED ON THEIR BEHALF BY THE ADVOCATES FOR HUMAN POTENTIAL OR

AHP. H IS SEEKING RETROACTIVE APPROVAL OF NON STANDARD TERMS FOR THIS GRANT. JUST TO NOTE THAT THE BOARD HAS PREVIOUSLY AUTHORIZED TO APPLY FOR THE BOND B CHIP GRANT IN OCTOBER OF 2025. >> THE PROJECT

IS FOR GROUND UP CONSTRUCTION OF 120 UNIT BEHAVIORAL HEALTH FACILITY LOCATED IN DISTRICT SIX AT 415 TRADEWINDS AVENUE ON TREASURE ISLAND. THIS REPRESENTS A MAXIMUM CAPACITY OF 300 BEDS. 44 OF THOSE

BEDS WOULD BE DESIGNATED FOR SUBSTANCE USE RESIDENTIAL TREATMENT AND THEN THE SITE CAN ACCOMMODATE UP TO 256 TRANSITIONAL RECOVERY HOUSING OTHERWISE KNOWN AS RESIDENTIAL STEPDOWN BEDS. CONSTRUCTION IS

ANTICIPATED TO START NOVEMBER 2026 AND THE PROJECT WILL CONTINUE THROUGH JUNE 2028. THE PARTNERS INCLUDE TREASURE ISLAND DEVELOPMENT AUTHORITY, THE MAYOR'S OFFICE OF HOUSING, COMMUNITY DEVELOPMENT,

MERCY HOUSING AND HEALTH RATE 360. >> JUST A NOTE ON OR TO PROVIDE FURTHER EXPLANATION OF THE RETROACTIVE NATURE OF THIS REQUEST RECEIVED NOTICE OF THE CONDITIONAL AWARD ON MARCH 11TH, 2026. WE WERE

AND WE ARE ABLE TO RECOUP FUNDS ANY REIMBURSEMENT FOR A PROJECT COST RETROACTIVE TO THAT DATE. THEN DHS SENT THE BOND B CHIP ROUND TO GRANT AGREEMENT TO US ON AUGUST 20TH, 26 AND IS NOW BRINGING THIS

ITEM TO THE BOARD . AFTER GOING THROUGH THE FISCAL APPROVAL PROCESS, THE CITY ATTORNEYS AND THE COMPTROLLER'S OFFICE REVIEW SO WE ARE SEEKING APPROVAL FOR THE STATE'S NONSTANDARD TERMS FOR THIS

AGREEMENT AND THE BOARD HAS APPROVED SIMILAR NONSTANDARD TERMS IN PAST B CHIP GRANTS. SO THIS INCLUDES AGREEING TO RECORD A DECLARATION OF RESTRICTIONS WHERE WE WOULD OPERATE THIS SITE IN COMPLIANCE

WITH THE BOND B CHIP TERMS OF 30 YEARS. AUTHORIZES DHS TO APPLY FOR A RECEIVER FOR THE PROPERTY IN THE EVENT OF A DEFAULT AND AUTHORIZE AND OBLIGATE THE CITY TO DEFEND, INDEMNIFY AND HOLD US AND AHP

HARMLESS AGREES WITH THE RECOMMENDATION RESPECTS RESPECTFULLY REQUEST APPROVAL OF THIS PROJECT. >> GREAT THANK YOU SO MUCH. WE HAVE A BUDGET LEGISLATIVE ANALYST REPORT ON THIS ITEM. >> MR. MENARD THE

FLOOR IS YOURS. ITEM SEVEN IS A RESOLUTION THAT APPROVES A GRANT AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES PROVIDING APPROXIMATELY $14.2 MILLION TO THE SAN FRANCISCO DEPARTMENT

OF PUBLIC HEALTH. WITH THIS THIS FUNDING WILL FUND THE CONSTRUCTION OF 44 RESIDENTIAL SUBSTANCE USE TREATMENT BEDS WHICH WILL BE PART OF A LARGER COMPLEX THAT INCLUDES ANOTHER 256 TRANSITIONAL

STEPDOWN BEDS. WE SHOWED THE PROJECT FOR THAT 300 BED SITE ON PAGE 22 OF OUR REPORT YOU'LL SEE THAT THE TOTAL COSTS TO CONSTRUCT AND FURNISH THE SITE ARE $80.5 MILLION. THIS GRANTS PROVIDING $13.5

MILLION OF THE FUNDING FOR THOSE COSTS AND THEN THE CITY IS PUTTING IN MOST OF THE REMAINING FUNDS EXCEPT FOR ANOTHER APPROXIMATELY $10 MILLION STATE GRANT. >> THE THE BEDS WILL HAVE AN ONGOING COST

TO THE CITY ONCE THEY'RE OPERATIONAL WHICH IS EXPECTED AT THE END OF 2028. ESTIMATES THAT THE BEDS WILL COST ABOUT $4.9 MILLION A YEAR. ABOUT 80% OF THAT WOULD BE REIMBURSED BY MEDI-CAL LEAVING ABOUT

$1 MILLION A YEAR THAT WOULD HAVE TO BE LOCALLY FUNDED. WE RECOMMEND APPROVAL OF ITEM SEVEN. GREAT. THANK YOU, MR. MAYNARD. >> A QUICK QUESTION ON THE MEDI-CAL REIMBURSEMENT IS THAT IT'S MY

UNDERSTANDING THAT SOME OF THE CHANGES THAT ARE COMING IN JANUARY WERE BECAUSE OF H.R. ONE THAT EFFECT THE MEDI-CAL THE MEDICAID FUNDING FROM THAT REIMBURSEMENT THAT WE'RE GOING TO BE OKAY ON THAT.

WHEN IT COMES TO SUBSTANCE USE DISORDER. CAN I JUST CONFIRM THAT? >> IS THAT YOUR UNDERSTANDING AS WELL? >> DR.. SO IN TERMS OF THE THE CHANGES TO H.R. ONE IS MORE ABOUT IN THE PEOPLE'S NEEDING TO

MAINTAIN THEIR ELIGIBILITY AND RATHER THAN THE RATES THAT ARE SET BY THC US, THE RATES ARE EXPECTED TO REMAIN AND THEY HAVE STEADILY INCREASED BY 2 OR 3% EVERY YEAR. SO WE WOULD ANTICIPATE THE RATE OF

REIMBURSEMENT TO TO FOLLOW THAT SAME TREND. OKAY. >> OKAY. I AM VERY PROUD TO SUPPORT THIS ITEM AND I WANT TO PUT IT IN THE CONTEXT OF SOMETHING THAT HAS BEEN A PRIORITY FOR ME SINCE FIRST JOINING THE

BOARD OF SUPERVISORS WAS CANDIDLY IT WAS THE REASON I ASKED TO JOIN THE BOARD OF SUPERVISORS AND THAT'S WHAT WE NEED TO DO TO SUPPORT AND INCENTIVIZE RECOVERY FOR PEOPLE STRUGGLING WITH ADDICTION. I

TALK A LOT ABOUT RECOVERY IN THIS ROLE BECAUSE OF WHAT IT MEANS TO ME BUT ALSO BECAUSE OF WHAT I HAVE SEEN IT MEAN TO OTHER PEOPLE IN THEIR LIVES. I KNOW THAT IT DOESN'T HAPPEN BECAUSE LOCAL

GOVERNMENT SAYS THE RIGHT THINGS OR JUST ENACTS THE RIGHT POLICIES. AT THE END OF THE DAY WE NEED EXPERTS LIKE YOU AND WE NEED THE INFRASTRUCTURE AND THE FUNDING TO MAKE SURE THAT WE'RE DELIVERING ON

THE PROMISE OF RECOVERY AND THAT MEANS HAVING TREATMENT BEDS AVAILABLE WHEN SOMEBODY IS READY TO SAY YES IT MEANS HAVING SOMEWHERE SAFE AND SUPPORTIVE TO GO AFTER TREATMENT AND IT MEANS BUILDING A

SYSTEM WHERE RECOVERY IS NOT JUST SOMETHING WE HOPE FOR PEOPLE TO FOR PEOPLE TO DO. IT'S SOMETHING OUR PUBLIC HEALTH SYSTEM IS IS ORGANIZED AND FUNDED TO ACHIEVE. HOPEFULLY I WILL SAY TREASURE ISLAND

HAS BECOME AN INCREDIBLY IMPORTANT PART OF THAT VISION. THERE IS A REAL AND VIBRANT RECOVERY COMMUNITY THERE. I THINK WE SHOULD RECOGNIZE AND CELEBRATE WHAT HAS REALLY BEEN BUILT ON THAT ISLAND PEOPLE

SUPPORTING ONE ANOTHER, REBUILDING THEIR LIVES AND DEMONSTRATING EVERY DAY THAT RECOVERY IS POSSIBLE. IT'S INTERESTING HOW MANY TIMES I JUST HEAR PEOPLE ARE THEY DON'T WANT TO LEAVE THE ISLAND. YOU

KNOW, IT REALLY IS A IT'S A IT'S AN AMAZING COMMUNITY OUT THERE, ESPECIALLY IN THE RECOVERY COMMUNITY. >> SO I KNOW THAT THIS IS SOMETHING THAT'S GOING TO BE SET UP FOR SUCCESS FROM THE COMMUNITY.

WHAT I PARTICULARLY LIKE ABOUT THIS PROJECT IS THAT WE'RE BUILDING ON THAT COMMUNITY AND CREATING A REAL A TRUE CONTINUUM OF CARE. WHAT TAKES ME MOST IS WHAT HAPPENS AFTER TREATMENT. WE KNOW THAT THE

TRANSITION OUT OF RESIDENTIAL TREATMENT CAN BE ONE OF THE MOST VULNERABLE POINTS IN SOMEONE'S RECOVERY PUTTING TREATMENT AND TRANSITIONAL RECOVERY HOUSING TOGETHER ON THE SAME CAMPUS. I THINK GIVES

PEOPLE A REAL OPPORTUNITY TO CONTINUE BUILDING STABILITY. COMMUNITY RECOVERY. HOPEFULLY WE'RE SUPPORTING PEOPLE TO WHO WHO MAY WANT TO BECOME DRUG COUNSELORS BECAUSE THAT'S SOMETHING I HAVE SEEN

INCREASINGLY AS PEOPLE GET ON THE OTHER SIDE OF THEIR ADDICTION TO FIND A WAY REAL MEANING IN GIVING BACK AS DRUG TREATMENT COUNSELORS THEMSELVES. I'VE SAID MANY TIMES THAT RECOVERY SHOULD BE THE

ORGANIZING PRINCIPLE OF OUR RESPONSE TO THE DRUG CRISIS AND THAT REQUIRES TREATMENT ON DEMAND. >> SO I JUST APPRECIATE ALL YOUR WORK. >> AS I SAID, TREASURE ISLAND IS ONE OF THOSE PLACES WHERE WE CAN

SHOW WHAT A RECOVERY ORIENTED SYSTEM LOOKS LIKE. I'M PROUD THAT THIS PROJECT IS IN MY DISTRICT AND GRATEFUL FOR THE STATE'S INVESTMENT. I'M VERY HAPPY FOR YOUR WORK ON IT. >> THANK YOU FOR TO THE VLA

FOR YOUR ANALYSIS OF IT AND AT THIS TIME WHY DON'T WE INVITE A PUBLIC COMMENT ON THIS? I DON'T THINK WE HAVE ANY QUESTIONS OR COMMENTS SO THANKS FOR THE PRESENTATION. >> YES IF WE HAVE ANY MEMBERS OF

THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE REGARDING THIS ITEM NUMBER SEVEN NOW IS YOUR OPPORTUNITY. >> MR. CHAIR, WE HAVE NO SPEAKERS. THANK YOU, MR. CLERK. PUBLIC COMMENT ON THIS ITEM IS NOW

CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION? >> YES. AND ON THAT

MOTION THAT WE REFER THIS RESOLUTION TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHIN CHEN I AMBASSADOR SAUTER I CHAIR DORSEY I DON'T SEE WHY WE HAVE THREE EYES. THANK YOU MR. COOK. >> THE MOTION

PASSES. THANK YOU. THANK YOU, MR. CLERK. CAN WE CALL ITEMS EIGHT AND NINE TOGETHER? YES. ITEM NUMBERS EIGHT AND NINE ARE RESOLUTIONS APPROVING AND AUTHORIZING THE DIRECTOR OF PROPERTY ON BEHALF OF THE

DEPARTMENT OF PUBLIC HEALTH TO EXECUTE LEASE AGREEMENTS WITH THE FOLLOWING ASSET LANDLORDS BOTH FOR INITIAL TERMS OF FIVE YEARS WITH TWO ONE YEAR OPTION A ONE YEAR EXTENSION OPTIONS COMMENCING UPON

ENACTMENT OF THE RESPECTIVE RESOLUTIONS AND THE EXECUTION BY THE DIRECTOR OF PROPERTY AND AUTHORIZING THE DIRECTOR TO ENTER INTO ANY AMENDMENTS OR MAKE MODIFICATIONS TO THE LEASES THAT THE DIRECTOR

DETERMINES IN CONSULTATION WITH AND THE CITY ATTORNEY TO NOT MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES TO THE CITY TO NOT MATERIALLY DECREASE THE BENEFITS TO THE CITY AND ARE NECESSARY TO

EFFECTUATE THE PURPOSES OF THE OFFICE LEASES OR THEIR RESOLUTIONS. ITEM NUMBER EIGHT IS WITH WEST BAY LOCAL DEVELOPMENT CORPORATION DOING BUSINESS HAS WEST BAY CONFERENCE CENTER FOR A PORTION OF 1290

FILLMORE STREET CONSISTING OF APPROXIMATELY 3000 RENTABLE SQUARE FEET FOR AN ANNUAL BASED RENT OF APPROXIMATELY 105,000 INCREASING BY 3% THAT EACH TERM EXTENSION AND ITEM NUMBER NINE IS WITH FILLMORE

CENTER ASSOCIATES L.P. FOR A PORTION OF 1533 EDDY STREET CONSISTING OF APPROXIMATELY 1500 RENTABLE SQUARE FEET FOR AN ANNUAL BASE RENT OF 39.6 THOUSAND WITH A 3% ANNUAL INCREASES. >> MR. CHAIR THANK

YOU, MR. CLERK. WE ARE JOINED TODAY BY SALLY EARTH, DIRECTOR OF REAL ESTATE AND MR. PETER BRIAN BRIAN BRANT THANK YOU ASSET MANAGER FOR THE DEPARTMENT OF PUBLIC HEALTH MISS EARTH MR. BRENNAN WE

WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. MORNING SUPERVISORS. MY NAME IS PETE BURNHAM, AN ASSET MANAGER AT DEPARTMENT PUBLIC HEALTH. I'M HERE TO REQUEST APPROVAL OF A

LEASE THAT WILL SUPPORT THE BLACK INFANT HELP PROGRAM OTHERWISE KNOWN AS BHP WHICH OPERATES AT 1290 FILLMORE AND 1533 EDDY STREET. THE PRIMARY GOAL OF BHP IS TO REDUCE NEGATIVE HEALTH OUTCOMES IN THE

AFRICAN-AMERICAN AND FOR AFRICAN-AMERICAN AND BLACK INFANTS BY PROVIDING A RESPONSIVE SUPPORT FOR EXPECTING MOTHERS. PROGRAMS AT BHP ADDRESS FOOD INSECURITY THEY PROVIDE PRENATAL AND POSTNATAL FOCUSED

EDUCATION PROGRAM WITH TOPICS SUCH AS BREASTFEEDING AND SAFE SLEEP. THEY FACILITATE PEER GROUPS THAT BUILD COMMUNITY AND RESILIENCE. I THINK OF NOTE FOR SAN FRANCISCO'S B H P PROGRAM IT IS THAT IS THE

FIRST IN THE STATE TO INCLUDE AN ONSITE MENTAL HEALTH THERAPIST IN ADDITION TO ITS COMPLEMENT OF SOCIAL WORKERS AND A PUBLIC HEALTH NURSE. APPROVAL OF THIS LEASE WILL HELP ENSURE COMMUTE CONTINUE TO

HAVE CARE AND STRENGTHEN ITS EFFORTS TO IMPROVE MATERNAL AND INFANT HEALTH OUTCOMES IN IMPACTED COMMUNITIES. AND I WILL TURN OVER TO DIRECTOR OUGHT TO TALK ABOUT ALL OF THESE TERMS THANK YOU CHAIR

DORSEY AND GOOD MORNING COMMITTEE MEMBERS AGAIN SALLY ORTH DIRECTOR OF REAL ESTATE AND JUST TO REVIEW THE TERMS OF THESE TWO LEASES THEY BOTH HAVE A FIVE YEAR TERM WITH TWO ONE YEAR OPTIONS TO EXTEND

THE. >> HAVE SLIGHTLY DIFFERENT RENTAL RATES JUST BASED ON THEIR DIFFERENT LOCATIONS AND UNIQUE FEATURES OF EACH PROPERTY. BUT THE RENT FOR 1290 FILLMORE IS AT $35.14 PER SQUARE FOOT AND THE RENT FOR

1533 EDDIE IS $26.40 PER SQUARE FOOT. BOTH ARE AT OR BELOW MARKET RATES I. SLIGHT DIFFERENCE IN THE ESCALATION FOR 1290 FILLMORE THERE WILL BE A 3% ESCALATION AT THE OPTION PERIOD WHILE AT 1533 EDDIE

IT WILL BE AN ANNUAL INCREASE. THE UTILITIES WILL BE PAID BY THE CITY AT TOP 90 FILLMORE ALTHOUGH THE LANDLORD WILL PROVIDE JANITORIAL. AND AT 1533 EDDIE THE CITY WILL BE PROVIDING UTILITIES AND

JANITORIAL SERVICES AND HAPPY TO ANSWER ANY QUESTIONS REGARDING THIS THESE TRANSACTIONS. >> THANKS SO MUCH. I THINK THIS LOOKS FORWARD. IT LOOKS STRAIGHTFORWARD TO ME. I APPRECIATE YOUR WORK ON THIS.

I DON'T SEE ANY QUESTIONS OR COMMENTS AND WE DON'T HAVE A A REPORT ON THIS. THANK YOU FOR YOUR PRESENTATION. SO AT THIS TIME WHY DON'T WE INVITE A PUBLIC COMMENT ON THIS ITEM? YES, WE'RE OPENING

PUBLIC COMMENT FOR BOTH OF THESE ITEMS EIGHT AND NINE IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS . >> THANK YOU, MR. CLERK PUBLIC COMMENT

ON THESE ITEMS IS NOW CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THESE ITEMS TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. MR. CLERK MAY WE HAVE A ROLL CALL ON THAT MOTION?

YES OR NO? NO MOTION TO REFER BOTH RESOLUTIONS TO THE FULL BOARD WITH RECOMMENDATION. VICE CHAIR CHEN CHEN I'M AMBASSADOR SAUTER I. CHAIR DORSEY I'M DORSEY. >> I HAVE THREE EYES. THANK YOU, MR. CLERK

THE MOTION PASSES. THANKS SO MUCH, MR. CLERK. >> WHEN CALL UP ITEM NUMBER TEN IS ITEM NUMBER TEN IS A RESOLUTION APPROVING AMENDMENT NUMBER 51 TO THE TREASURER. ISLAND LAND AND STRUCTURES MASTER LEASE

BETWEEN THE TREASURE ISLAND DEVELOPMENT AUTHORITY AND THE UNITED STATES NAVY TO EXTEND THE TERM FOR ONE YEAR TO COMMENCE SUMMER FIRST 2026 FOR A TOTAL TERM OF NOVEMBER 19TH 1998 THROUGH NOVEMBER 30TH

2027 AND TO AUTHORIZE THE TREASURE ISLAND DEVELOPMENT AUTHORITY EXECUTIVE DIRECTOR. TO EXECUTE AND ENTER INTO AMENDMENTS TO THE LEASE SET TO NOT MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES TO

THE CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSES AND INTENT OF THIS RESOLUTION. MR. CHAIR. THANK YOU, MR. CLERK. WE'RE JOINED BY MISS SHEILA JOVANA OF EXECUTIVE DIRECTOR OF TITLE MR. VONN, WE

WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. THANK YOU AND THANK YOU GOOD AND GOOD MORNING CHAIR DORSEY AND MEMBERS OF THE COMMITTEE. I AM SHEILA JEEVAN AND EXECUTIVE

DIRECTOR OF TREASURE ISLAND DEVELOPMENT AUTHORITY OTHERWISE KNOWN AS KATA AND I'M HONORED TO BE HERE TODAY AND HAVE AN OPPORTUNITY TO PRESENT THIS ITEM TODAY WHERE WE ARE REQUESTING APPROVAL OF AN

ANNUAL EXTENSION OF OUR MASTER LEASE BETWEEN KATA AND THE NAVY. THE CURRENT LEASE TERM EXPIRES ON NOVEMBER 30TH, 2026. THIS LEASE MODIFICATION AND EXTENDS THE TERM THROUGH NOVEMBER 30TH 2027 AND ALL

OTHER REMAINING LEASE TERMS AND CONDITIONS REMAIN UNCHANGED. >> THERE IS NO BASE RENT BUY PAID BY TATA UNDER THIS MASTER LEASE MEANING THE EXTENSION CARRIES NO FINANCIAL IMPACT. >> TO THE CITY'S

BUDGET THIS CONTINUES AN ONGOING ARRANGEMENT ORIGINALLY ENACTED ON NOVEMBER 19TH, 1998 AND STANDARD NAVY REAL ESTATE PRACTICE DICTATES A YEAR TO YEAR LEASE ONLY TAYLOR HAS INQUIRED AGAIN THIS YEAR

ABOUT THE POSSIBILITY OF A MULTIYEAR LEASE TERM BUT TO NO AVAIL. THE LEASE COVERS BUILDINGS GROUNDS AND INFRASTRUCTURE ON THE FORMAL NAVAL STATION. IT ALSO ENABLES TIGTA TO CONTINUE TO SUBLEASE

PORTIONS OF THE MASTER LEASED AREA FOR INTERIM USES AND GENERATE REVENUES TO SUPPORT THE INTERIM USES AND THE FUTURE REDEVELOPMENT OF THE FORMER FORMER NAVAL WEAPON AND NAVAL STATION TREASURE ISLAND.

>> CURRENTLY WE STILL LEASE APPROXIMATELY 120 ACRES FROM THE NAVY AND WHILE TIGHT AIR AND NAVY AND THE NAVY ARE WORKING TO ACCELERATE AND PRIORITIZE LAND TRANSFER FOR DEVELOPMENT PARCELS, THE TIMING

OF THE FINAL LAND TRANSFER IS NOT ANTICIPATED BEFORE 2035. I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ON THIS REQUEST. >> GREAT. THANKS SO MUCH. I DON'T THINK THERE'S ANY QUESTIONS OR COMMENTS

I, I GUESS ONE THING THAT I WOULD SAY WHEN YOU WHEN IT'S THE 51ST AMENDMENT TO SOMETHING YOU ASSUME THIS IS JUST SORT OF AS THE WAY THAT IT GOES AND I I THINK FROM MY DAYS IN THE CITY ATTORNEY'S

OFFICE HAVE SEEN WHAT IT INVOLVES THE U.S. MILITARY DOUBLE THE AMOUNT OF TIME THAT IT TAKES AND THEN YOU KNOW, THERE'S GOING TO BE SOME THINGS I THINK IF I RECALL THIS WAS ALSO THE THINGS THAT WE SAW

PLAY OUT WITH EVEN THE PRESIDIO AND HUNTERS POINT AND YEAH, SOME OF THAT IT LOOKS STRAIGHTFORWARD TO ME. >> I APPRECIATE YOUR YOUR PERSISTENCE ON THIS AND FOR ASKING FOR MULTI YEARS AND MAYBE SOMEDAY

THEY WILL AGREE TO THAT AT THIS TIME WITHOUT FURTHER QUESTIONS OR COMMENTS WHY DON'T WE INVITE A PUBLIC COMMENT ON THIS ITEM? >> YES. WE'RE NOW OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER TEN IF WE

HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS. >> THANK YOU, MR. CLERK. PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME I WOULD MOVE TO

FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. >> MAY WE HAVE A ROLL CALL THAT MOTION? YES. AND I NO MOTION THAT WE REFERRED TO THE FULL BOARD WITH THE

RECOMMENDATION VICE CHAIR CHEN CHEN I'M AMBASSADOR SAUTER. I CHAIR DORSEY DORSEY I HAVE THREE EYES. >> THANK YOU MR. CLERK MOTION PASSES. >> OKAY. SORRY, MR. CLERK, CAN WE PLEASE CALL UP ITEM NUMBER

11? YES. ITEM NUMBER 11 IS A RESOLUTION AUTHORIZING THE SAN FRANCISCO TAX COLLECTOR TO SELL TAX DEFAULTED REAL PROPERTY AND PUBLIC AUCTION AS DEFINED THERE IN MR. CHAIR. >> THANK YOU, MR. CLERK. WE

ARE JOINED TODAY BY MR. DAVID AUGUSTINE, TAX COLLECTOR OF THE OFFICE OF TREASURER AND TAX COLLECTOR. >> MR. AUGUSTINE, WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE. THE FLOOR IS YOURS. >> THANK

YOU. GOOD TO SEE YOU AGAIN. CHAIR DORSI NICE TO SEE YOU MEMBERS I'M I'M DAVID AUGUSTINE TAX COLLECTOR. THIS ITEM IS A RESOLUTION AUTHORIZING OUR OFFICE TO SELL ONE TAX DEFAULTED PROPERTY AT PUBLIC

AUCTION. FIRST SOME BACKGROUND TAX SALES ARE OF DEFAULTED PROPERTY ARE GOVERNED BY STATE LAW PROPERTY BECOMES ELIGIBLE FOR AUCTION AFTER TAXES HAVE BEEN DELINQUENT FOR FIVE YEARS. WE ARE REQUIRED TO

SELL A PARCEL AFTER A PROPERTY HAS BEEN DELINQUENT FOR NINE YEARS. >> OUR OFFICE TYPICALLY WAITS CLOSER TO THE NINE YEAR MARK TO SELL A PARCEL SINCE MOST DELINQUENT BALANCES ARE RESOLVED BETWEEN YEARS

FIVE AND NINE. THIS RESOLUTION IS DIFFERENT IN THAT IT ASKS THE BOARD TO APPROVE A STANDALONE SALE OF A SINGLE PROPERTY BECAUSE OF SOME UNIQUE CIRCUMSTANCES. THE PROPERTY IN QUESTION HAS BEEN TAX

DEFAULTED SINCE JULY 2021 AND HAS REACHED THE FIVE YEAR POWER TO SELL STATUS THIS PAST JULY 2026. THE BALANCE OWED IS APPROXIMATELY $329,000 WHICH IS A LARGE BALANCE AND THE MINIMUM BID AT AUCTION

WILL BE 500,000 DOLLARS. >> BOTH ARE UNUSUALLY HIGH FOR SAN FRANCISCO TAX SALE. OTHER COUNTIES HANDLING COMPARABLE HIGH VALUE PROPERTIES TYPICALLY ACT AT THE FIVE YEAR MARK RATHER THAN WAITING THE

FULL NINE YEARS. AND GIVEN THE BALANCE HERE WE ARE COMFORTABLE MOVING FORWARD AT THE FIVE YEAR MARK. THERE ARE ALSO OTHER COMPLEX ISSUES AT PLAY RELATED TO ALLEGED FRAUDULENT DEEDS THAT HAVE BEEN

RECORDED AGAINST THE PROPERTY WHILE QUESTIONS ABOUT WHO HOLDS VALID TITLE TO THE PROPERTY FALL OUTSIDE OF OUR OFFICE'S PURVIEW, A COMPLETED TAX SALE WOULD RESULT IN A LEGITIMATE DEED BEING ISSUED TO

THE WINNING BIDDER BEFORE THE AUCTION WE WOULD NOTIFY ALL PARTIES OF INTEREST INCLUDING ALL RECENT TITLE HOLDERS AND LEIN HOLDERS SO THEY HAVE THE OPPORTUNITY TO REDEEM THE PARCEL AND PAY THE BALANCE

DUE BEFORE IT AUCTION TAKES PLACE. WE WOULD ALSO POST NOTICES ON THE PROPERTY AND PUBLISH NOTICE OF THE SALE AS REQUIRED IN THE NEWSPAPER. IF APPROVED WE ANTICIPATE THE AUCTION TO TAKE PLACE BEFORE

THE END OF 2026 WILL CONFIRMED EXACT DATES PUBLICLY ONCE WE HAVE BOARD APPROVAL. AS WITH ALL SUCH AUCTIONS THE APPROVAL OF THIS RESOLUTION DOES NOT GUARANTEE THE AUCTION WILL PROCEED. A FULL PAYMENT

OF THE BALANCE DUE DOES STOP THE AUCTION AT ANY POINT BEFORE THE AUCTION STARTS. THAT SAID, I'M HAPPY TO TAKE ANY QUESTIONS. >> THANK YOU, MR. AUGUSTINE OR I MEAN HAVE WE DONE OUR DUE DILIGENCE TO

IDENTIFY THE PARTIES? I KNOW THAT THERE'S I MEAN MY MY RECOLLECTION OF PREVIOUS ISSUES THAT HAVE EMERGED IN THESE I THINK WAS PRESIDIO TERRACE WHICH WHICH I WAS ONE THERE IS IT FROM MY UNDERSTANDING

CASE LAW ESTABLISHES THAT THERE'S A DIFFERENT STANDARD WHEN THERE'S WHEN IT BECOMES A CONSTITUTIONAL TAKING. SO AS LONG AS YOU KNOW TRUST I CERTAINLY HAVE A LOT OF CONFIDENCE IN THAT YOUR OFFICE JUST

WANT TO KNOW THAT AS THIS MOVES FORWARD HOW DO WE ABSOLUTELY APPRECIATE THAT THAT QUESTION WE DO PARTIES OF INTEREST RESEARCH WITH AN OUTSIDE VENDOR TO INDICATE ALL PARTIES WHO MIGHT HAVE A AN

INTEREST IN THE PROPERTY. WE ARE GOING TO BE NOTIFYING ALL RECENT TITLE AND LEAN HOLDERS NOT JUST THE CURRENT ONES BECAUSE OF THE ALLEGED FRAUDULENT DEED. SO WE WILL GO OUT BEYOND TO MAYBE THE PAST

FOR OWNERS OF RECORD AND NOTIFY ALL OF THOSE PARTIES OF THE AUCTION AND GIVE THEM THE CHANCE TO REDEEM THE PARCEL THAT WE THINK THAT IS OUR OBLIGATION TO YOUR POINT WE TAKE THAT VERY SERIOUSLY. WE

REACHED OUT TO OTHER TAXING AGENCIES WHO HAVE AN OPPORTUNITY TO HAVE AN OPPORTUNITY TO OBJECT ATTACHED TO THE TAX SALE OVER THE NEXT FEW MONTHS THE SALE DOES TAKE FOUR MONTHS. THAT IS A LONG TIME AND

THE REASON IT DOES TAKE TIME IS IT'S REQUIRED AND MANDATED BY STATE LAW THAT WE FOLLOW EVERY PROCEDURAL STEP TO MAKE SURE WE DON'T INJURE ANYBODY'S RIGHTS WHO OWNS THE PROPERTY CURRENTLY. IN ADDITION,

I'D SAY FOR THE FOR THE QUESTION ABOUT THE TAKING THERE ARE EXCESS PROCEEDS THAT OUR OFFICE WOULD THEN COLLECT IF THE PROPERTIES AUCTIONED WE WOULD COLLECT SOMETHING PROBABLY ABOVE THE MINIMUM BID

PRICE. THOSE EXCESS PROCEEDS WE WOULD THEN HOLD AND THEY WOULD BE DUE TO THE LEGITIMATE OWNER OF RECORD ONE YEAR AFTER THE SALE TAKES PLACE. THERE'S A LONG PERIOD OF TIME AFTER THE TAX SALE TAKES

PLACE WHERE WE HOLD THAT MONEY ON BEHALF OF THE RIGHTFUL PERSON WHO WOULD RECEIVE THAT MONEY AND WE DON'T GIVE IT OUT BEFORE THAT PROCESS HAS BEEN COMPLETED . >> ALL RIGHT, GREAT. SUPERVISOR SLAUGHTER

THANK YOU CHAIR JUST FOR MY OWN EDUCATION, HOW OFTEN DOES SOMETHING LIKE THIS HAPPEN? I MEAN HOW FREQUENTLY HAVE WE SEEN THIS THROUGH THE YEARS OR BY THIS IF YOU MEAN AN AUCTION WE AUCTION GENERALLY

EVERY YEAR OUR AUCTION IS GENERALLY IN THE SPRING. THIS PARTICULAR FACT A SET OF CIRCUMSTANCES I HAVE NOT SEEN I'VE BEEN IN THIS POSITION FOR 14 YEARS. I'VE BEEN IN MY OFFICE FOR 22 YEARS. I HAVE

NEVER SEEN THIS SET OF FACTS BEFORE WITH THE ALLEGED FRAUDULENT DEEDS AND THE HIGH VALUE OWED. I'M GENERALLY OUR AUCTION THAT HAPPENS IN THE SPRING CONTAINS PARCELS THAT ARE OF MUCH LOWER VALUE SLIVER

LOTS EASEMENTS UNDERWATER LOTS THINGS THAT DON'T ATTRACT A LOT OF ATTENTION. FORTUNATELY SINGLE FAMILY HOMES OR HOMES CONDOS ARE GENERALLY REDEEMED PRIOR TO THAT PROCESS COMMENCING. THIS IS AN

EXCEPTION TO THAT. >> THANK YOU. I KNOW THIS IS A THIS HAS BEEN IN THE NEWS AND IT'S A UNIQUE SET OF CIRCUMSTANCES SO THANKS FOR WORKING TO RESOLVE IT. >> THANK YOU. SUPERVISOR SAUTER OKAY WE

APPRECIATE THE PRESENTATION AND ANSWERING OUR QUESTIONS AT THIS TIME. WHY DON'T WE INVITE A PUBLIC COMMENT ON THIS ITEM? YES, WE'RE OPENING PUBLIC COMMENT ON THIS ITEM NUMBER 11 IF WE HAVE ANY MEMBERS

OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS . >> THANK YOU, MR. CLERK. PUBLIC COMMENT ON THE SIDE OF IS NOW CLOSED AND I DO HAVE AMENDMENTS THAT I WOULD LIKE TO

OFFER TO THIS. SO SEEING NO FURTHER QUESTIONS OR COMMENTS I WOULD MOVE TO AMEND THE SHORT AND LONG TITLE OF THE RESOLUTION TO INCLUDE THE SUBJECT ADDRESS AS FOLLOWS. PAGE ONE LINE ONE ADD 250 32ND

AVENUE. PAGE ONE LINE FOUR AFTER PROPERTY ADD LOCATED AT 250 32ND AVENUE ASSESSOR'S PARCEL BLOCK NUMBER 1391. LOT NUMBER OH 14. PAGE ONE LINE EIGHT ADD LOCATED AT 253 SECOND AVENUE. ASSESSOR'S PARCEL

BLOCK 1391 LOT 014 AND STRIKE LISTED. PAGE ONE LINES NINE AND TEN ADD ON FILE WITH THE CLERK OF THE BOARD IN FILE NUMBER 26 1002 AND IS INCORPORATED HEREIN BY REFERENCE. PAGE ONE LINE 25 STRIKE ON

FILE WITH THE BOARD IN FILE NUMBER 26 1002. PAGE TWO LINE SEVEN STRIKE ATTACHED AND THEN TO FORWARD THAT ITEM AS AMENDED TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. IT'S MY

UNDERSTANDING THIS IS A NON SUBSTANTIVE AMENDMENT. MR. CLERK MAY WE HAVE A ROLL CALL IN THAT MOTION? >> YES. AND ON THAT MOTION THAT WE AMEND THE RESOLUTION AS SO READ INTO THE RECORD BY THE CHAIR AND

THERE WERE REFER THIS RESOLUTION WITH RECOMMENDATION AS AMENDED. >> VICE CHAIR CHEN CHEN I REMEMBER SLATER STARTER I CHAIR DORSEY I DORSEY I WE HAVE THREE EYES THANK YOU MR. CLERK THE MOTION PASSES

MR. QUICKLY PLEASE CALL ITEM NUMBER 12. YES. ITEM NUMBER 12 IS AN ORDINANCE AMENDING THE BUSINESS AND TAX REGULATIONS CODE RETROACTIVELY TO JANUARY 1ST 2026 TO PROVIDE SMALL HARDWARE RETAILERS WITH A

CREDIT AGAINST OUR GROSS RECEIPTS TAX FOR YEARS FOR TAX YEAR 2026 THROUGH 20 35. >> MR. CHAIR THANK YOU MR. CLERK. WE ARE JOINED BY MISS GRACE HUANG, THE LEGISLATIVE AIDE WITH THE BOARD PRESIDENT

RAFAEL MEMBERS OFFICE AS WELL WE ARE JOINED BY TED EGAN, OUR CITY'S CHIEF ECONOMIST. WELCOME, MS. WANG AND MR. EGAN TO THE BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS. THANK YOU, CHAIR DOROTHY

GOOD MORNING, MEMBERS OF THE COMMITTEE. MY NAME IS GRACE AND I'M HERE TODAY ON BEHALF OF PRESIDENT MIDDLEMEN. THE ITEM BEFORE YOU TODAY IS AN ORDINANCE PROVIDING TAX RELIEF TO SMALL INDEPENDENT

HARDWARE STORES THROUGHOUT SAN FRANCISCO. THESE NEIGHBORHOOD HARDWARE STORES HAVE SEEN SIGNIFICANT INCREASES TO THEIR GROSS RECEIPTS TAX BURDEN SINCE THE PASSAGE OF PROP M IN 2024. AND THIS MEASURE

WILL PROVIDE SOME MUCH NEEDED RELIEF. SAN FRANCISCANS LOVE OUR LOCAL HARDWARE STORES IN DISTRICT EIGHT FOR EXAMPLE COOL HARDWARE AND COOP'S VARIETY ARE BOTH FAMILY OWNED BUSINESSES THAT HAVE BEEN

SERVING THEIR NEIGHBORHOODS FOR A CENTURY. FOR GENERATIONS, RESIDENTS HAVE TURNED TO THEIR NEIGHBORHOOD HARDWARE STORES NOT ONLY FOR TOOLS AND SUPPLIES BUT ALSO FOR THE ADVICE AND EXPERTISE OF STAFF

ON EVERYTHING FROM HOME REPAIRS TO CREATIVE PROJECTS DURING THE COVID 19 PANDEMIC. THESE STORES WERE LITERALLY LIFE SAVERS BUT THE REALITY IS THAT BELIEVE IT OR NOT, NEIGHBORHOOD HARDWARE STORES ARE

STRUGGLING. IN ADDITION TO COMPETITION FROM CORPORATE CHAINS AND ONLINE RETAILERS, NEIGHBORHOOD HARDWARE STORES ARE ALREADY OPERATING ON RAZOR THIN MARGINS HAD TO DEAL WITH RETAIL THEFT TARIFFS AND

EVER INCREASING OPERATING EXPENSES. STORE OWNERS HAVE IN RECENT HAVE BEEN OPEN ABOUT HOW DIFFICULT IT IS TO KEEP THEIR DOORS OPEN IN RECENT YEARS. FOR EXAMPLE, IN DECEMBER OF 2020 FOR PAPA HASN'T

HARDWARE IN WEST PORTAL CLOSED AFTER 88 YEARS IN BUSINESS? >> IN 2024 SAN FRANCISCO VOTERS PASSED PROPOSITION A MAJOR REFORM OF OUR BUSINESS TAX STRUCTURE DESIGNED TO INCREASE THE CITY'S ECONOMIC

RESILIENCE. ADOPT A POST-COVID HYBRID WORK PATTERNS CREATE MORE TRANSPARENCY FOR TAXPAYERS AND PROVIDE RELIEF TO SMALL BUSINESSES. THE MEASURE RESULTED FROM EXTENSIVE ANALYSIS AND STAKEHOLDER

CONSULTATION AND WAS ULTIMATELY PUT ON A BALLOT BY SIGNATURE GATHERING EFFORT OUTSIDE CITY HALL. HOWEVER, EVEN BEFORE PROP EM PASSED OR OFFICE HAD BEGUN TO HEAR CONCERN FROM NEIGHBORHOOD HARVESTERS

THAT CONTRARY TO THE INTENT OF PROP THEY WERE IN A CATEGORY OF SMALL BUSINESS THAT MIGHT ACTUALLY SEE THEIR TAX BURDEN INCREASE IF THE MEASURE PASSED. AND IN FACT NOW THAT THE DUST OF THAT CAMPAIGN

HAS SETTLED AND BUSINESSES HAVE BEGUN TO SEE THEIR POST PROP EM TAX BILLS, THESE BUSINESSES ARE IN FACT SINGH'S THING FOR SIGNIFICANT INCREASES. THIS ORDINANCE WOULD REMEDY THAT UNINTENDED CONSEQUENCE

BY CREATING A TAX CREDIT FOR SMALL HARDWARE RETAILERS WHO MEET TWO REQUIREMENTS. FIRST, MORE THAN 50% OF THEIR COMBINED GROSS RECEIPTS COME FROM QUALIFYING HARDWARE PRODUCTS. AND SECOND, THAT THEY

HAVE LESS THAN 50 MILLION IN COMBINED GROSS RECEIPTS FROM ALL SOURCES DURING THE TAX YEAR. THESE THRESHOLDS ARE DESIGNED SPECIFICALLY TO TARGET RELIEF TOWARD SMALL INDEPENDENT COMMUNITY HARDWARE

STORES RATHER THAN LARGER STORES THAT ARE IN A BETTER POSITION TO ABSORB COSTS. >> I WANT TO THANK TERRY AUSTIN BENNET FROM COAST VARIETY STORE RICKERT FROM COLES HARBOR CREW AND ASHFORD FROM

FREDRICKSON HARDWARE AND JEREMY GUTTENBERG FROM CENTER HARDWARE AND SUPPLY CO FOR SHARING THEIR EXPERIENCES WITH OUR OFFICE AND THEIR PARTNERSHIP ON THIS LEGISLATION. I WOULD ALSO LIKE TO THANK SCOTT

RIVER AND CHARLES OLSON FROM THE CITY ATTORNEY'S OFFICE ,TED EGAN FROM THE COMPTROLLER'S OFFICE, ERIC MACKEY AND AMANDA FREED FROM THE TREASURE TAX COLLECTORS OFFICE FOR THEIR WORK ON THIS AS WELL.

DAVID AND ERIC FROM THE CHARTER TAX COLLECTORS OFFICE, TED EGAN, CHIEF ECONOMIST AND MYSELF ARE ALL HERE AND AVAILABLE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. THANK YOU FOR YOUR TIME AND I

RESPECTFULLY ASK FOR YOUR SUPPORT. >> OKAY. THANKS SO MUCH. I DON'T THINK I HAVE ANY QUESTIONS. I DON'T KNOW, MR. EGAN. IS THERE ANYTHING YOU WANTED TO ADD TO HOLD THEM? BUT LET'S GET YOUR MIKE ON. I

THINK IT'S I'M SORRY. >> I'M SORRY. TED EGAN FROM THE COMPTROLLER'S OFFICE. OUR OFFICE DETERMINED THIS MATTER WOULD NOT HAVE ECONOMIC IMPACT SO WE ARE NOT FILING AN ECONOMIC IMPACT REPORT ON IT. WE

WERE INVOLVED IN COSTING THE MEASURE AND I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ABOUT THAT. >> OKAY. THANK YOU SO MUCH. I APPRECIATE EVERYBODY'S WORK ON THIS. IT IS THE NATURE OF SOMETIMES

WHEN WE MAKE CHANGES WHEN WE GO TO VOTERS TO MAKE CHANGES TO TAXES THAT YOU KNOW, THERE'S I THINK WE HAVE LIMITED OPTIONS UNDER STATE LAW OF HOW WE ASSESS TAXES AND I THINK IT'S IMPORTANT THAT WE HAVE

FLEXIBILITY TO MAKE SURE THAT WE'RE DOING THIS IN A WAY THAT IS FAIR. SOMETIMES WHEN YOU GO TO ONE SORT OF GRAND BARGAIN LIKE PROP EM WAS YOU KNOW, THERE'S GOING TO BE UNINTENDED CONSEQUENCES AND

THINGS THAT NEED TO BE FIXED. WE FORTUNATELY HAVE THE ABILITY TO DO TO MAKE SOME ADJUSTMENTS LIKE THIS UNDER STATE LAW. SO I APPRECIATE EVERYBODY'S WORK ON THIS. I THINK IT'S A VALUABLE PIECE OF

LEGISLATION. >> I'M HAPPY TO SUPPORT IT AND ALSO WOULD REQUEST THAT I BE ADDED AS A CO-SPONSOR. >> I SEE NO FURTHER QUESTIONS OR COMMENTS. I WOULD LIKE TO INVITE PUBLIC COMMENT ON THIS ITEM. >> YES,

WE'RE OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER 12 IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE. >> >> GOOD MORNING. >> MY NAME IS TERRY ASTON BENNETT. I'M CO-OWNER OF

CLIFF'S VARIETY AND FIFTH GENERATION OWNER. >> WHEN PROP PROPOSITION M WAS GOING THROUGH THE WORKS I EMAILED AND TALKED TO THE SUPERVISORS OFFICE AND THE LEGISLATORS REPEATEDLY TELLING THEM THAT WHEN

I DID THE MATH THAT IT WOULD MEAN MY GROSS RECEIPTS TAX DOUBLED MY GROSS RECEIPTS TAXED DOUBLED AS A HARDWARE STORE WE ARE VERY LIMITED ON THE PRICES WE CAN CHARGE WE. AND WE'RE SEEING REAL ECONOMIC

MIX FRUSTRATIONS THE TARIFFS, THE FUEL RATES ALL OF THAT GOES INTO PLAY. WE DO OUR BEST TO PAY OUR EMPLOYEES LIVING WAGES. WE PAY FULL BENEFITS. WE WANT TO TAKE CARE OF OUR PEOPLE. WE ALSO WANT TO

TAKE CARE OF OUR NEIGHBORHOOD IN OUR CITY. >> IT WAS YOUR HARDWARE STORES THAT DURING THE PANDEMIC SOURCED HAND SANITIZER FROM LIQUOR DISTRIBUTORS THAT BROUGHT IN K95 MASKS, THAT SOURCED FABRIC MASKS

BEFORE THEY WE KNEW THAT THEY WEREN'T AS YOU KNOW, EFFECTIVE BUT WE WERE ALSO THE ONES THAT WERE MAKING UP THE RULES BEFORE THE CITY PASSED THE RULES TO KEEP PEOPLE SAFE. WE WERE CREATING DISTANCING.

WE WERE LIMITING THE NUMBER OF PEOPLE IN THE STORE. >> DURING THE 1989 EARTHQUAKE IT WAS YOUR HARDWARE STORES THAT WERE BRINGING IN BATTERIES AND OPENING UP AND SELLING TO THE PUBLIC EVEN THOUGH THERE

WAS NO WAY TO COLLECT MONEY BECAUSE THERE WAS NO POWER, YOU KNOW? AND WHEN BIG BAD THINGS HAPPENED IN THE CITY IT IS YOUR HARDWARE STORES THAT YOU NEED SO PLEASE HELP US ARRIVE. >> OKAY. THANK YOU

MUCH TERRY ASKED AND THEN IT NEXT SPEAKER HI MY NAME. >> I'VE NEVER DONE THIS BEFORE. MY NAME IS JAMIE GET KNOW HOW I'M A CO-OWNER OF CENTER HARDWARE. WE'RE IN DISTRICT TEN AND DOGPATCH. WE'VE BEEN IN

THE CITY SINCE 1880 AND WE'RE VERY PROUD OF THAT. >> AND THE REASON WE'VE BEEN ABLE TO DO THAT IS BECAUSE OF SUCH A HEALTHY RELATIONSHIP WITH THE CITY AND ITS RESIDENTS AND BUSINESSES. WE ARE A LITTLE

BIT DIFFERENT THAN TERRY STORE IN THAT WE'RE MAJORLY A COMMERCIAL INDUSTRIAL SUPPLIER WHICH IS WHAT I LIKE TO CALL AN INFRASTRUCTURE BUSINESS WHICH MEANS WHEN STUFF BREAKS WE'RE GETTING CALLED FIRST

WE'RE GETTING TEXT MESSAGES FROM UNDERNEATH BUILDINGS. WE OPEN UP THE STORE WHEN IT'S AFTER 24 HOURS BECAUSE SOMETHING'S GOING ON IN THE MIDDLE OF THE NIGHT YOU'RE BUILDING ENGINEERS, YOUR EMERGENCY

TEAMS THEY ALL HAVE OUR PHONE NUMBER THIS TAX WAS IN ITS BEST INTEREST WRITTEN WELL AND HAD BAD CONSEQUENCES FOR US. I KNOW WE'RE UNINTENTIONAL AND I APPRECIATE THE MEMBERS HERE AND THE SUPERVISORS

OFFICE AND EVERYONE TAKING A SECOND LOOK BECAUSE IT'S NOT OFTEN PEOPLE TAKE THE TIME TO DO THAT. >> SO ANYTHING THAT CAN BE DONE TO HELP US PROTECT OUR LEGACY BUSINESSES AND HELP THIS CITY RUN BEHIND

THE SCENES IS JUST BEST FOR EVERYONE. AND THAT'S GOOD BUSINESS AND I BELIEVE THAT EVERYONE IN THIS ROOM WANTS THAT. >> SO THANK YOU. THANK YOU MUCH FOR ADDRESSING THIS COMMITTEE AND IF WE HAVE NO

FURTHER SPEAKERS, MR. CHAIR, THAT COMPLETES OUR Q THANK YOU MR. CLARK PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME ACTUALLY I WOULD JUST APPRECIATE THE THE PUBLIC COMMENT AND EVERYBODY'S

WORK ON THIS JUST TO MAKE SURE THAT WE'RE GETTING IT RIGHT. AT THE END OF THE DAY WE DO WANT TO MAKE SURE THAT OUR BUSINESSES ARE ARE WELL SUPPORTED AND I THINK IT'S A IT'S AN IMPORTANT LESSON TO

OTHER BUSINESSES JUST TO MAKE SURE THAT THEY'RE ENGAGED AND IF THERE IS A BURDEN THAT WE HAVE PUT ON BUSINESSES THAT WE ALL HAVE A STAKE IN MAKING SURE SUCCEED AND THRIVE IN OUR CITY. >> WE'RE ALL

WILLING TO WORK ON THIS TO GET IT RIGHT TAXATION AND LIKE AS I MENTIONED TAXATION IN CALIFORNIA SOMETIMES I THINK VICE CHAIR CHEN DID RESOLUTION ASK THE LEGISLATURE TO GIVE US SOME MORE FLEXIBILITY IN

HOW WE TAX AS A LOCAL GOVERNMENT. SO SOMETIMES WE'RE WE DON'T HAVE THE OPTIONS THAT WE WOULD WE WOULD ALL LIKE AS A LOCAL GOVERNMENT BUT WITH THE IMPERFECT RULES THAT WE'VE GOT, YOU KNOW, WE'RE TRYING

TO GET IT RIGHT AND BEING ABLE TO COME BACK HERE AND DO THIS TO SUPPORT OUR SMALL BUSINESSES IS HOPEFULLY GETTING IT RIGHT. >> SO I'M HAPPY TO SUPPORT THIS. MR. CLERK, AT THIS TIME WHEN WE MOVE I

WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION. >> MAY WE HAVE A ROLL CALL ON THAT MOTION? YES AND ON THAT MOTION TO REFER TO THE FULL BOARD WITH

RECOMMENDATION VICE CHAIR CHEN CHEN I I'M AMBASSADOR SAUTER I CHAIR DORSEY I'M DORSEY. WE HAVE THREE EYES. THANK YOU MR. CLERK THE MOTION PASSES. CONGRATULATIONS, MR. CLERK. >> IS THERE ANY FURTHER

BUSINESS BEFORE US TODAY? MR. CHAIR, THAT CONCLUDES OUR BUSINESS. THANK YOU, MR. CLERK, AND THANK YOU EVERYBODY FOR PARTICIPATING. WE ARE ADJOURNED