00:00:09 GOOD MORNING THE MEETING WILL COME TO ORDER.
00:00:10 >> WELCOME TO THE JUNE 17, 2026 MEETING OF THE BUDGET
00:00:17 AND FINANCE COMMITTEE. I'M SUPERVISOR CONNIE CHAN,
00:00:18 CHAIR OF THE COMMITTEE. I AM JOINED BY VICE CHAIR
00:00:22 SUPERVISOR MATT DORSEY AND MEMBER SUPERVISOR DANNY
00:00:26 SAUDER OUR CLERK IS BRANT HALPER AND I WANT TO THANK
00:00:33 JAMIE ARBITRARY FROM AS OF GOLF TV FOR BROADCASTING THIS
00:00:36 MEETING MR. CLERK DRIVING THE ANNOUNCEMENT THANK YOU MADAM
00:00:38 CHAIR. >> JUST A FRIENDLY REMINDER TO
00:00:41 THOSE IN ATTENDANCE TO PLEASE TO MAKE SURE ALL TO SILENCE ALL
00:00:45 CELL PHONES AND ELECTRONIC DEVICES TO PREVENT
00:00:46 INTERRUPTIONS TO OUR PROCEEDINGS.
00:00:49 SO DO YOU HAVE ANY DOCUMENTS TO BE INCLUDED AS PART OF THE
00:00:50 FILE? THEY SHOULD BE SUBMITTED TO
00:00:51 MYSELF. THE CLERK PUBLIC COMMENT WILL
00:00:53 BE TAKEN ON EACH ITEM ON THIS AGENDA WHEN YOUR ITEM OF
00:00:56 INTEREST COMES UP AND PUBLIC COMMENT IS CALLED PLEASE LINE
00:00:58 UP TO SPEAK ON THE WEST SIDE OF THE CHAMBER TO YOUR RIGHT MY
00:01:01 LEFT ALONG THOSE CURTAINS AND WHILE NOT REQUIRED TO
00:01:04 PROVIDE PUBLIC COMMENT WE DO INVITE YOU TO FILL OUT A
00:01:05 COMMENT CARD AND LEAVE THEM ON THE TRAY BY THE TELEVISION TO
00:01:08 YOUR LEFT BY THE DOORS IF YOU WISH FOR YOUR NAME TO BE
00:01:11 ACCURATELY RECORDED FOR THE MINUTES.
00:01:12 ALTERNATIVELY YOU MAY SUBMIT PUBLIC COMMENT IN WRITING
00:01:15 IN EITHER OF THE FOLLOWING WAYS EMAIL THEM TO MYSELF THE BUDGET
00:01:18 AND FINANCE COMMITTEE CLERK AT B-R E.A. DOT JL IPA HAT S.F. G
00:01:26 V.ORG IF YOU SUBMIT PUBLIC COMMENT BY EMAIL IT WILL BE
00:01:30 FORWARDED TO THE SUPERVISORS AND ALSO INCLUDED AS PART OF
00:01:31 THE OFFICIAL FILE. >> YOU MAY ALSO SEND YOUR
00:01:34 WRITTEN COMMENTS BY U.S. POSTAL SERVICE TO OUR OFFICE IN CITY
00:01:37 HALL AT ONE DR. CARLTON BEAGLE PLACE ROOM 244 SAN FRANCISCO,
00:01:43 CALIFORNIA 94102 AND FIND THE ITEMS ACTED UPON TODAY ARE
00:01:44 EXPECTED TO APPEAR ON THE BOARD OF SUPERVISORS THE AGENDA OF
00:01:48 JUNE 20TH THIRD UNLESS OTHERWISE STATED.
00:01:50 >> MADAM CHAIR, THANK YOU MR. CLERK AND BEFORE WE CALL ITEM
00:01:54 NUMBER WE CALL THE ITEMS ON THIS AGENDA.
00:01:57 I WOULD LIKE TO REMIND THE PUBLIC THAT WE HAVE BUDGETED
00:02:01 LEGISLATIVE ANALYST REPORT FOR ITEMS ONE AND TWO ON TODAY'S
00:02:04 AGENDA AND FOR THOSE ITEM WE WILL HAVE THE DEPARTMENT
00:02:07 PRESENTATION FIRST FOLLOWED BY THE BUDGET AND LEGISLATIVE
00:02:09 ANALYST. THEN WE WILL TAKE QUESTIONS
00:02:11 AND PUBLIC COMMENT. ALSO TODAY WE'RE JOINED BY
00:02:15 PRESENTER RAFAEL MENDELSON WHO HAS REQUESTED THAT WE TAKE HIS
00:02:18 ITEM FIRST. SO WITH THAT MR. CLERK, PLEASE
00:02:19 CALL ITEM NUMBER TWO. >> YES, ITEM NUMBER TWO 2 TO 2
00:02:24 IS AN ORDINANCE AMENDING THE ADMINISTRATIVE CODE TO INCREASE
00:02:28 THE MINIMUM GRANT AWARD AMOUNT REQUIRING BOARD OF SUPERVISORS
00:02:32 APPROVAL FOR ACCEPTANCE AND EXPENDITURE FROM 100,000 TO
00:02:35 THE GREATER OF 1 MILLION OR THE FEDERAL SINGLE AUDIT THRESHOLD
00:02:39 AMOUNT SET BY THE UNITED STATES OFFICE OF MANAGEMENT AND BUDGET
00:02:43 STARTING OCTOBER 1ST 2026 REQUIRE BOARDS BOARD OF
00:02:46 SUPERVISORS APPROVAL OF A GRANT INCREASE ONLY IF IT RAISES THE
00:02:49 GRANT TO THE APPROVAL THRESHOLD FOR THE FIRST TIME OR INCREASES
00:02:53 A PREVIOUSLY APPROVED GRANT TO 110% OR MORE OF THE PREVIOUSLY
00:02:57 APPROVED AMOUNT. AUTHORIZE THE COMPTROLLER TO
00:03:00 MAKE RULES GOVERNING THE ACCEPTANCE AND EXPENDITURE OF
00:03:04 ANY GRANTS OR GRANT INCREASES THAT DO NOT REQUIRE BOARD OF
00:03:05 SUPERVISORS APPROVAL AND MAKE OTHER NON SUBSTANTIVE
00:03:09 ORGANIZATION ORGANIZATIONAL CHANGES TO THE SECTIONS OF CODE
00:03:12 RELATING TO CASH INVOLVING FUNDS AND ACCEPTANCE
00:03:16 AND EXPECTED EXPENDITURE OF GRANT FUNDS.
00:03:19 >> MADAM CHAIR THANK YOU PRESIDENT BENJAMIN.
00:03:23 THANK YOU CHAIR CHAN FOR MAKING TIME FOR THIS ON TODAY'S AGENDA
00:03:28 AND COMMITTEE MEMBERS SO THIS LEGISLATION WOULD IS IN THE
00:03:32 SPIRIT OF GET GETTING OUT OF THE WAY OF PUBLIC SERVANTS WHO
00:03:38 ARE TRYING TO DO HARD THINGS AND WE ARE ASKING THEM TO DO
00:03:39 THEM MORE QUICKLY AND WE SHOULD FIND WAYS TO HELP THEM DO THEM
00:03:43 MORE QUICKLY. SO THIS WOULD RAISE THE BOARD
00:03:46 OF SUPERVISORS GRANT ACCEPT AN EXPAND APPROVAL THRESHOLD FROM
00:03:53 $100,000 TO $1 MILLION THAT WOULD ALIGN IT WITH THE FEDERAL
00:03:54 SINGLE AUDIT THRESHOLD WHICH IS THE THRESHOLD WHERE THE FEDERAL
00:03:57 GOVERNMENT REQUIRES AUDITS OF OF ENTITIES RECEIVING GRANTS
00:04:00 FROM THE FEDERAL GOVERNMENT GRANTS REPRESENT BETWEEN 18
00:04:07 AND 23% OF OUR ANNUAL CITY REVENUES.
00:04:10 OUR DEPARTMENTS ARE MANAGING SIGNIFICANT GRANT PORTFOLIOS
00:04:14 AND WE WANT THEM TO SEEK MORE GRANT FUNDING.
00:04:15 BUT THE CURRENT PROCESS TO GET THESE GRANTS APPROVED REQUIRES
00:04:19 SUBSTANTIAL STAFF TIME FOR WHAT ARE ALMOST ALWAYS ROUTINE
00:04:22 APPROVALS. >> SAN FRANCISCO SET ITS
00:04:29 $100,000 THRESHOLD 14 YEARS AGO IN 2012 AND IT HAS NOT BEEN
00:04:33 ADJUSTED SINCE. >> AND AS I MENTIONED THE
00:04:37 FEDERAL GOVERNMENT HAS RAISED ITS OWN THRESHOLD FOR AUDITS UP
00:04:41 TO $1 MILLION RIGHT NOW DEPARTMENTS WHEN SMALL ROUTINE
00:04:45 GRANTS DO ESSENTIAL WORK FOR SAN FRANCISCANS BUT THEN HAVE
00:04:49 TO WAIT SOMETIMES MONTHS TO SPEND THEM IN PRACTICE MOST
00:04:54 GRANTS UNDER $1 MILLION AS I SAID, ARE APPROVED WITHOUT
00:04:58 DEBATE ACCORDING TO THE COMPTROLLER'S OFFICE FROM 2018
00:05:01 TO 2025 MORE THAN HALF THE GRANTS REVIEWED BY THIS BOARD
00:05:05 WOULD NOT HAVE REQUIRED APPROVAL UNDER THIS THRESHOLD
00:05:09 AND THIS WOULD THIS CHANGE WOULD REDUCE THE VOLUME OF
00:05:13 BOARD REVIEWED GRANTS BY APPROXIMATELY 50% 4%.
00:05:16 TO ME THAT'S A SIGNIFICANT REDUCTION IN THE ADMINISTRATIVE
00:05:21 BURDEN. IT ALSO CREATES AN OPPORTUNITY
00:05:22 TO REDIRECT STAFF TIME AND RESOURCES TO MORE IMPACTFUL
00:05:25 WORK DEPARTMENTS WILL BE ABLE TO ACCESS FUNDING SOONER
00:05:28 AND MOVE FASTER ON DELIVERING SERVICES WITHOUT THE DELAYS
00:05:32 THAT COME WITH ROUTINE GRANT APPROVAL.
00:05:35 AND I THINK WE WILL ALSO BE REDUCING A DISCOURAGEMENT THAT
00:05:40 CURRENTLY EXISTS TO SEEKING NEW GRANT FUNDING WHEN STAFF
00:05:43 IN DIFFERENT CITY DEPARTMENTS ARE THINKING ABOUT APPLYING FOR
00:05:47 FOUR DIFFERENT GRANTS THEY HAVE TO CALIBRATE THEIR OWN
00:05:52 WORKLOAD, THEIR ABILITY TO LIKE CARRY THIS THROUGH AN APPROVAL
00:05:53 PROCESS AND AND BALANCE WHETHER IT'S WORTH IT GIVEN THE SIZE OF
00:05:56 THE GRANT AND THIS WILL TILT THOSE SCALES A LITTLE BIT MORE
00:05:59 TOWARDS SEEKING THE GRANT FUNDING.
00:06:03 SO I ALSO WANT TO BE CLEAR IT IS NOT LIKE ELIMINATING BOARD
00:06:07 OF SUPERVISORS OVERSIGHT OF THESE GRANTS ELIMINATES
00:06:08 OVERSIGHT ENTIRELY. THE COMPTROLLER HAS A ROBUST
00:06:11 PROCESS. THEY WILL STILL REVIEW PROD
00:06:15 PACKAGES FOR COMPLIANCE WITH GRANT STANDARDS, GRANT OR
00:06:19 REGULATIONS AND FEDERAL REQUIREMENTS AND WE'VE WORKED
00:06:22 CLOSELY WITH THE COMPTROLLER'S OFFICE.
00:06:23 THEY'VE CONFIRMED THAT THIS CHANGE IS IMPLEMENTABLE WHILE
00:06:26 MAINTAINING FINANCIAL INTEGRITY AND THEY'VE DEVELOPED A
00:06:28 CENTRALIZED WORKFLOW SYSTEM TO BE ABLE TO TRACK GRANT PACKAGES
00:06:31 FROM SUBMISSION THROUGH FINAL APPROVAL WITHOUT RELYING ON A
00:06:34 BOARD REVIEW PROCESS. NOW I DO HAVE TWO AMENDMENTS
00:06:38 THAT I HOPE THE COMMITTEE WILL MAKE TODAY.
00:06:41 THE AMENDMENTS ARE SUBSTANTIVE AND SO THEREFORE THIS WOULD
00:06:46 WOULD COULD NOT BE AFFORDED THE FULL BOARD.
00:06:50 SO I WOULD ASK THE COMMITTEE TO CONTINUE AT TWO TO THE NEXT
00:06:52 MEETING OF THE BUDGET AND FINANCE COMMITTEE AFTER
00:06:53 MAKING THE AMENDMENTS. BUT THE TWO AMENDMENTS WHICH
00:06:56 HAVE BEEN CIRCULATED I'LL WALK THROUGH ONE AND DEALS WITH ARE
00:07:03 AMENDMENTS TO GRANTS THAT INCREASE THEM SO THE
00:07:07 LEGISLATION THAT WE ORIGINALLY PROPOSED REQUIRED BOARD REVIEW
00:07:08 WHEN A GRANT WAS INCREASED BY 110% OR MORE OF THE AMOUNT MOST
00:07:14 RECENTLY APPROVED BY THE BOARD THE GAP THAT WE'VE IDENTIFIED
00:07:18 IS THAT LARGE GRANTS COULD RECEIVE A SUBSTANTIAL DOLLAR
00:07:20 INCREASE AND STILL FALL UNDER THAT 110% THRESHOLD
00:07:23 AND BYPASSING BOARD REVIEW. SO THIS AMENDMENT WOULD CREATE
00:07:29 A 2000 $200,000 LIMIT TO THE INCREASES THAT WOULD THEN
00:07:33 TRIGGER A BOARD REVIEW OF EXISTING GRANTS.
00:07:37 THE $200,000 THRESHOLD ENSURES THAT THESE INCREASES ARE STILL
00:07:41 REVIEWED WHILE MAINTAINING THE OVERALL INTENT OF IMPROVING
00:07:42 EFFICIENCY AND MAKING BETTER USE OF TIME, STAFF, TIME
00:07:46 AND RESOURCES. >> THE SECOND SET OF AMENDMENTS
00:07:48 IS AT THE REQUEST OF THE CITY ATTORNEY TO ALLOW THE CITY TO
00:07:52 ACCEPT PRO-BONO LEGAL SERVICES WITHOUT BOARD APPROVAL.
00:07:57 >> THESE SERVICES ARE TYPICALLY PRIVILEGED AND CONFIDENTIAL
00:08:01 OVER THE COURSE OF LITIGATION AND THUS THE SERVICES TO BE
00:08:02 APPROVED WOULD GENERALLY COME RETROACTIVELY 1 OR 2 YEARS
00:08:07 AFTER THE LITIGATION HAS BEEN FINISHED SO FAIRLY POINTLESS AT
00:08:11 THAT POINT BUT ALLOWING FOR THIS KIND OF EXPEDITING THIS
00:08:15 KIND OF ASSISTANCE IS PARTICULARLY IMPORTANT GIVEN
00:08:18 THE CITY'S ONGOING LITIGATION AGAINST THE TRUMP
00:08:19 ADMINISTRATION. >> OUTSIDE LAW FIRMS ARE MORE
00:08:23 WILLING TO PROVIDE PRO-BONO SUPPORT ON HIGH PROFILE MATTERS
00:08:26 WHEN THEY DO NOT WHEN THEY'RE NOT REQUIRED TO PUBLICLY
00:08:30 DISCLOSE THEIR INVOLVEMENT WHILE THE CASE IS LIVE
00:08:31 REQUIRING BOARD APPROVAL CAN DISCOURAGE FIRMS FROM STEPPING
00:08:34 FORWARD AND SO I THINK THAT THESE ARE TWO WORTHWHILE
00:08:38 AMENDMENTS. I HOPE THAT THE COMMITTEE WILL
00:08:41 MAKE THEM AND I DO WANT TO THANK THE CITY COMPTROLLER GREG
00:08:46 WAGNER, WHO'S HELPED US THINK THIS THROUGH OVER I THINK AT
00:08:50 THIS POINT IT MAY BE YEARS. >> IT'S DEFINITELY MORE THAN
00:08:51 MONTHS AND HIS STAFF AS WELL AS THE DEPUTY CITY ATTORNEY BRAD
00:08:55 RUSSI, OUR DEPUTY CITY ATTORNEY BRAD RUSSI AND STAFF AND HIS
00:09:01 OFFICE FOR THEIR ENGAGEMENT AND LEGISLATION.
00:09:05 I WANT TO THANK SARAH CROWLEY IN PARTICULAR AND THEN I WANT
00:09:08 TO THANK LEGISLATIVE AIDES IN MY OFFICE WHO'VE WORKED ON
00:09:10 THIS MAY HAVE SKELLY CURRENTLY AND FORMERLY MELANIE MATHEWSON
00:09:16 AND WITH THAT I BELIEVE THERE IS A BE A LAY REPORT.
00:09:24 GOOD MORNING SUPERVISORS NICK BERNARD FROM THE BUDGET
00:09:25 LEGISLATIVE ANALYST'S OFFICE. ITEM TWO IS AN ORDINANCE THAT
00:09:29 AMENDS CHAPTER TEN OF THE ADMINISTRATIVE CODE TO INCREASE
00:09:31 THE BOARD APPROVAL FOR A GRANT EXCEPT AN EXPENDITURE FROM
00:09:37 100,000 TO $1 MILLION OR THE OMB SINGLE AUDIT REVIEW
00:09:41 THRESHOLD STARTING IN AUGUST 2026.
00:09:44 AND WE LOOKED AT GRANTS THAT WERE THAT THE BOARD APPROVED
00:09:48 BETWEEN JANUARY 2025 AND APRIL 2026.
00:09:51 DURING THAT TIME THE BOARD REVIEWED ABOUT 113 GRANTS
00:09:57 AND 45% OF THEM WERE BELOW THE 100 THE $1 MILLION THRESHOLD.
00:10:00 SO ABOUT THAT PERCENTAGE OF GRANTS WOULD NO LONGER REQUIRE
00:10:05 BOARD REVIEW BUT IT ONLY REPRESENTED ABOUT 2% OF THE
00:10:10 TOTAL GRANT REVENUES THAT WERE ACCEPTED BY THE BOARD.
00:10:12 SO THE GRANTS THAT ARE ABOVE $1 MILLION THAT WOULD STILL BE
00:10:15 SUBJECT TO BOARD APPROVAL ARE A MUCH BIGGER SHARE OF THE GRANT
00:10:18 REVENUE POT AND WE NOTE AS A POLICY CONSIDERATION THAT THIS
00:10:23 WOULD REDUCE THE TIME FOR EXECUTING GRANTS BY A COUPLE OF
00:10:26 WEEKS BECAUSE THAT'S HOW LONG IT TAKES TO GO THROUGH THE
00:10:29 BOARD PROCESS. BUT IT DOES REDUCES THE BOARD'S
00:10:32 VISIBILITY INPUT AND OVERSIGHT INTO THE USE OF THESE GRANT
00:10:37 FUNDS. SO WE CONSIDER APPROVAL TO BE A
00:10:38 POLICY MATTER FOR THE BOARD. >> THANK YOU.
00:10:41 I AM IN SUPPORT OF THIS AMENDMENT SIMILARLY BECAUSE FOR
00:10:45 ANY TYPE OF CONTRACT THAT COMES TO THE BOARD IN TERMS OF
00:10:52 REVENUE CURRENTLY THE THRESHOLD STANDS AT $1 MILLION AS WELL
00:10:55 AND SO I FIND THAT A SOFT AND EXPAND GRANT VERSUS
00:10:59 CONTRACT OR VERSUS REVENUE GENERATED FROM CONTRACT AT 1
00:11:05 MILLION TO BE CONSISTENT AND I CAN BE SUPPORTIVE OF THAT.
00:11:07 >> I LOVE TO LEARN A LITTLE BIT MORE ABOUT THE EXEMPT AND PRO
00:11:10 BONO LEGAL SERVICES AND FREE LITIGATION ONLY BECAUSE JUST
00:11:17 TRYING TO HAVE A BETTER UNDERSTANDING OF HOW THAT WOULD
00:11:21 THEN INTERACT WITH THE BOARD'S POLICY.
00:11:25 I DO UNDERSTAND YOU KNOW EVENTUALLY THAT IT WILL WE CAN
00:11:29 ALWAYS HAVE CLOSED SESSION AND OTHER MEANS FOR THE BOARD
00:11:33 TO ACTUALLY UNDERSTAND THE WORK THAT THE CITY ATTORNEY IS DOING
00:11:37 OVERALL IN TERMS OF LEGAL SUITS AND SETTLEMENT.
00:11:43 SO I THINK IT'S JUST SOMETHING THAT THE BOARD OF ADVISORS
00:11:47 NEEDS TO BE AWARE OF BUT OVERALL I'M SUPPORTIVE OF IT
00:11:51 AND IS SUPPORTIVE OF THE AMENDMENTS TODAY AND ITS
00:11:54 CONTINUANCE SINCE A SUBSTANTIVE FOR FURTHER DISCUSSION.
00:11:58 >> AND SO VICE CHAIR DORSEY, THANK YOU CHAIR CHAN AND THANK
00:12:02 YOU PRESIDENT MANDOLIN FOR YOUR WORK ON THIS.
00:12:03 I'M ACTUALLY REALLY PERSUADED BY THE POINT YOU MADE ABOUT,
00:12:09 YOU KNOW, BEING IN A CITY DEPARTMENT AND HAVING TO GO
00:12:10 THROUGH ASSESS IS GOING TO COST US $25,000 TO GET THIS $15,000
00:12:15 GRANT THAT WE MIGHT BE LEAVING A LOT OF MONEY ON THE TABLE
00:12:17 THAT I THINK IS A REALLY EXCELLENT POINT THAT RESONATES
00:12:21 WITH ME HAVING WORKED IN THE CITY GOVERNMENT FOR A LONG
00:12:24 TIME. SO I'M GOING TO SUPPORT THIS
00:12:25 AND WOULD LIKE TO BE AT IT AS A CO-SPONSOR PRESENT AMENDMENT
00:12:30 THANK YOU CHAIR CHAN I WOULD JUST LIKE TO AFFORD THE CITY
00:12:35 ATTORNEY THE OPPORTUNITY IF HE WANTS TO TALK A LITTLE BIT
00:12:38 ABOUT THE PRO BONO LEGAL SERVICES I'M SURE.
00:12:42 DEPUTY CITY ATTORNEY BRAD RUSTY PRESIDENT MANDOLIN EXPLAINED I
00:12:46 THINK THE THE REASON THAT WE'RE SEEKING THIS AMENDMENT THE
00:12:47 BASIC REASON FREQUENTLY IN LITIGATION WHEN WE GET PRO
00:12:54 BONO COUNSEL OR PRO BONO EXPERT ,THE EXPERT SERVICES IN THE
00:12:59 LITIGATION, THE FACT THAT WE'VE GOTTEN THAT AND THE NAME OF THE
00:13:06 FIRM, THE AMOUNT THAT THEY'RE CONTRIBUTING IS PRIVILEGED
00:13:09 DURING THE COURSE OF THE LITIGATION AND POTENTIALLY EVEN
00:13:11 AFTER THE LITIGATION IS OVER FOR LIKE AN EXPERT WHO HAS
00:13:14 NEVER DISCLOSED IN THE LITIGATION.
00:13:15 SO WE CAN'T COME TO THE BOARD AND IF WE DID COME TO THE BOARD
00:13:22 AND SEEK AN ANY ACCEPT AN EXPENSE RESOLUTION PRIOR TO
00:13:25 THAT, IT REALLY WOULDN'T BE ABLE TO DISCLOSE ANYTHING
00:13:26 BECAUSE IT'S ALL PRIVILEGE AND IT WOULDN'T MEAN ANYTHING
00:13:28 FOR YOU. WE STILL ARE OBLIGATED TO TO
00:13:31 REPORT TO THE ETHICS COMMISSION GIFTS TO THE DEPARTMENT AND THE
00:13:36 AND THE REPORTS THAT WE DO TO THE ETHICS COMMISSION ARE VERY
00:13:40 THEY'RE BASICALLY LIKE REDACTED FOR MOST OF THE SAME
00:13:42 INFORMATION BUT WE DO DISCLOSE IT WHEN WE CAN.
00:13:45 >> SO I THINK THE PURPOSE HERE WOULD BE SORT OF TO ALIGN THE
00:13:49 CODE WITH OUR CURRENT PRACTICE AND MAKE IT CLEAR THAT, YOU
00:13:52 KNOW, WE DON'T HAVE TO COME TO THE BOARD FOR AN AGENCY
00:13:56 IN THESE CIRCUMSTANCES. >> I THINK THIS IS QUITE
00:13:59 SPECIFIC AND I AM I APOLOGIZE IN BRING MY BUDGET BOOK WITH ME
00:14:02 BUT YOU KNOW HOW IN OUR OUR ORDINANCE FOR BUDGET THAT THERE
00:14:07 SPECIFIC WHAT LIGHT SOURCE SUMMARY FOR FUNDING WILL THEN
00:14:11 SOMEHOW THIS ACTUALLY BECOME A LINE ITEM LIKE COLLECTIVELY
00:14:14 AND SAY THIS IS THE THIS IS A SORT LIKE PRO BONO SERVICES
00:14:18 THAT THE CITY ATTORNEY ACTUALLY RECEIVE IN THE ANNUAL BUDGET
00:14:24 IN PROJECTION JUST I'M JUST CURIOUS I THINK THAT COULD BE A
00:14:28 FOR CONTROLLER GOOD MORNING SUPERVISORS DEVIN MCAULEY
00:14:43 CITYWIDE BUDGET MANAGER CHURCH AND YOUR QUESTION ABOUT HAVING
00:14:48 THIS APPEAR IN THE AOE BUDGET BOOK I DON'T BELIEVE THERE'LL
00:14:50 BE A LINE ITEM IN THE BUDGET BOOK FOR THAT TO THE EXTENT
00:14:52 THAT THE ANY EXCEPT EXPEND PROCESS OCCURS OUTSIDE OF THE
00:14:57 ANNUAL BUDGET PROCESS COMES BEFORE YOU TYPICALLY DURING THE
00:15:02 YEAR OUTSIDE OF THE BUDGET PROCESS.
00:15:03 >> THANK YOU. IT'S KIND OF CURIOUS AND WHICH
00:15:05 JUST AGAIN A VICE AND SUGGEST SHOULD THERE BE A POTENTIALLY
00:15:12 AS YOU CONTINUE WITH THIS OVERALL TO BE ABLE TO HAVE SOME
00:15:16 KIND OF PROJECTION OF WHAT YOU EXPECT TO RECEIVE AS PRO BONO
00:15:21 LEGAL SERVICES JUST STOP. >> THANK YOU.
00:15:24 I APPRECIATE IT. SO I DON'T SEE ANY OTHER NAME
00:15:27 ON THE ROSTER. LET'S GO TO PUBLIC COMMENT ON
00:15:29 THIS ITEM. >> YES.
00:15:31 RIGHT NOW OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER
00:15:34 TWO IF YOU HAVE ANY MEMBERS OF THE PUBLIC WHO HAVE HAVE JOINED
00:15:37 US TODAY WHO WISH TO ADDRESS THIS COMMITTEE.
00:15:40 OH AND MADAM CHAIR, LET THE PUBLIC COMMENT WILL BE SET UP.
00:15:46 >> MY APOLOGIES. LET'S SET PUBLIC COMMENTS FOR
00:15:49 BOTH THE BUDGET AND FINANCE AND WE'LL COME BACK FOR THE
00:15:53 BUDGET APPROPRIATION. BUT LET'S SET PUBLIC COMMENTS
00:15:54 FOR TODAY BOTH MEETINGS AT ONE MINUTE.
00:15:56 >> THANK YOU MUCH FANFARE FOR SPEAKER PLEASE.
00:15:59 >> OOP I'M SORRY. I'M SORRY.
00:16:02 ONE MORE TIME. >> GOOD MORNING, SUPERVISORS.
00:16:03 AMANDA FREED FROM THE TREASURER'S OFFICE, A
00:16:07 BUREAUCRAT THAT SPENDS A LOT OF TIME ON EXCEPT AN EXPENSE
00:16:10 AND JUST WANT TO ACKNOWLEDGE PRESIDENT MENDELSOHN FOR THIS
00:16:13 LEGISLATION. AND WHILE I WILL MISS SEEING
00:16:15 YOU ALL VERY REGULARLY ON WEDNESDAY MORNING AND BEGGING
00:16:18 MY COLLEAGUES IN THE COMPTROLLER'S OFFICE TO APPROVE
00:16:22 MY ACCEPTING EXPENSE, I'M VERY GRATEFUL FOR THIS LEGISLATION.
00:16:25 >> THANK YOU. THANK YOU MUCH.
00:16:26 MY FREEDOM AND SEEING NO OTHER SPEAKERS IN LINE.
00:16:30 MADAM CHAIR THAT COMPLETES OUR QUEUE SEEING NO PUBLIC COMMONS
00:16:33 PUBLIC COMMENT IS NOW CLOSED. COLLEAGUES I WOULD LIKE TO
00:16:36 FIRST MOVE THE AMENDMENTS PROPOSED BY PRESENT AMENDMENT
00:16:40 AND THEN CONTINUE TO AMEND ITEM TO OUR NEXT BUDGET AND FINANCE
00:16:44 MEETING WHICH IS SCHEDULED FOR JULY 8TH AND THE ROLL AND AND A
00:16:51 ROLL CALL PLEASE. >> YES.
00:16:52 AND ON THAT MOTION THAT WE AMEND THIS ORDINANCE AS WRITTEN
00:16:56 TO THE RECORD BY SUPERVISOR RANDLEMAN AND THAT WE CONTINUE
00:16:57 THIS ORDINANCE TO THE JULY 8TH MEETING OF THIS COMMITTEE AS
00:17:00 AMENDED AND VICE CHAIR DORSEY DORSEY I REMEMBER SENATOR
00:17:06 SOUDER I CHAIR CAN I CAN I WE HAVE THREE EYES.
00:17:11 >> THE MOTION PASSES. THANK YOU COLLEAGUES.
00:17:14 >> THANK YOU. AND MR. CLERK, PLEASE CALL ITEM
00:17:15 NUMBER ONE. YES.
00:17:16 I DON'T NUMBER ONE IS A RESOLUTION APPROVING AN AMENDED
00:17:22 AND RESTATED LEASE AGREEMENT BETWEEN THE CITY AND COUNTY
00:17:23 AND TED'S INC FOR THE RETAIL SPACE LOCATED AT 44 ELLIS
00:17:27 IN THE ELLIS O'FARRELL GARAGE TO AMEND THE CALCULATION OF THE
00:17:30 MONTHLY BASE RENT TO A PERCENTAGE RENT CALCULATED AS
00:17:35 8% OF GROSS REVENUES RETROACTIVE TO JANUARY 1ST 20
00:17:39 21 TO AMEND THE MONTHLY WATER CHARGE TO 2.4 THOUSAND
00:17:42 RETROACTIVE TO FEBRUARY 1ST 2024 TO AMEND THE CALCULATION
00:17:46 OF BASE RENT AND WATER CHARGE DURING THE FIRST OPTION TO
00:17:50 EXTEND TO REQUIRE TED'S TO PAY FOUR THOUSAND
00:17:53 AND ADMINISTRATIVE FEE TO IMPOSE MINIMUM HOURS OF
00:17:54 OPERATION TO WAIVE TED'S OBLIGATION TO PAY BASE RENT FOR
00:17:58 THE PERIOD BEGINNING ON HERE FIRST 2020 TO DECEMBER 31ST
00:18:03 2020 AND TO WAIVE TED'S OBLIGATION TO PAY OUTSTANDING
00:18:07 WATER CHARGES FOR THE PERIOD BEGINNING FEBRUARY 1ST, 2020 TO
00:18:13 JANUARY 31ST 2024 EFFECTIVE UPON APPROVAL OF THIS
00:18:14 RESOLUTION THROUGH THE EXPIRATION DATE OF APRIL 30TH
00:18:17 2029. >> MADAM CHAIR, THANK YOU.
00:18:21 AND TODAY WE HAVE AS A FIRM TO HEAR OR REAL ESTATE MY
00:18:22 APOLOGIES MORNING SUPERVISORS. MY NAME'S BECAUSE I THINK I'M
00:18:26 THE REAL ESTATE MANAGER A SOPHOMORE HERE.
00:18:29 >> I'D LIKE TO GO THROUGH A SIMPLE PRESENTATION FOR TED'S
00:18:35 AMENDED AND RESTATED LEASE AGREEMENT BACK IN DURING THE
00:18:39 PANDEMIC. LIKE MANY OTHER CITY AGENCIES
00:18:43 WE HAD TO QUICKLY AMEND LEASES TO CONFORM TO THE CURRENT
00:18:50 ECONOMIC ENVIRONMENT THAT THE PANDEMIC PUT US IN AND WE ARE
00:18:54 MAKING ATTEMPTS TO FORMALLY MAKE THOSE AMENDMENTS AND THIS
00:18:58 IS ONE OF THEM. THE KEY TERMS HERE ARE THAT
00:19:01 THIS WOULD BE A TEN YEAR LEASE CONTINUING FROM THE ORIGINAL
00:19:05 LEASE STATE WITH TWO FIVE YEAR OPTIONS.
00:19:06 THE TENANT IMPROVEMENTS THAT WERE COMPLETED IN MARCH OF 2020
00:19:12 TOTAL TO ABOUT 2.7 MILLION AND WE PROVIDED RENT RELIEF
00:19:18 LIKE I SAID TO OUR TENANTS DURING THIS TIME AS PART OF THE
00:19:23 CITY ADMINISTRATORS MEMO HERE'S A SIMPLE CHART TO SHOW WHAT OUR
00:19:30 ANNUAL RENT REVENUE WAS FOR THE FOLLOWING FISCAL YEARS.
00:19:33 THE KEY PROVISIONS OF THE PROPOSED AND RESTATED AMENDED
00:19:38 LEASE ARE THAT THE LEASE EXPIRES TEN YEARS FROM THE
00:19:42 ORIGINAL DATE OF 2019 SO IT EXPIRES APRIL 30TH OF 2029
00:19:48 INCLUDING FIVE TO YOUR OPTIONS TO EXTEND I'M SORRY TWO FIVE
00:19:53 YEAR OPTIONS TO EXTEND RENT WILL CONTINUE AS AGREED AT 8%
00:20:00 OF GROSS REVENUES UNTIL THE INITIAL TERM AND THEN ONCE AN
00:20:04 OPTION TO EXTEND IS EXERCISED THAT WILL CONVERT TO A FIXED
00:20:09 RENT THE RENTAL PROJECTION CONSERVATIVELY IS ABOUT
00:20:19 $241,281 EQUIVALENT TO $44.95 PER SQUARE FOOT WHICH EXCEEDS
00:20:22 THE FAIR MARKET COMPARABLE VALUE OF $43.03.
00:20:31 THAT WOULD BE THE END OF THE SLIDE SHOW REGARDING THE
00:20:35 TENANTS RESTATED AN AMENDED LEASE THAT WE'RE REQUESTING
00:20:39 RETROACTIVE APPROVAL FOR. THANK YOU.
00:20:47 ITEM ONE IS A RESOLUTION THAT APPROVES AN AMENDED
00:20:49 AND RESTATED LEASE BETWEEN MTA AND TAD INC WHICH IS A
00:20:52 RESTAURANT AND AT 44 ELLA STREET IN THE SO FERAL GARAGE
00:20:59 WE SUMMARIZED THE LEASE TERMS ON PAGE FOUR OF THE REPORT BUT
00:21:03 THEY ESSENTIALLY FORMALIZE LEASE AMENDMENTS THAT WERE MADE
00:21:04 BY MTA VERBALLY DURING THE PANDEMIC TO SWITCH FROM A FIXED
00:21:08 TO A PERCENTAGE RENT STRUCTURE WHICH THEY DID FOR MANY OF
00:21:12 THEIR TENANT LEASES. >> AND AS WE DISCUSSED
00:21:15 IN NOVEMBER, THIS IS ONE OF 16 LEASES THAT SWITCHED TO THAT
00:21:18 STRUCTURE BUT THAT DOES NOT HAVE A FORMAL LEASE AMENDMENT
00:21:22 ASSOCIATED WITH THAT CHANGE. SO THIS IS ONE OF THREE LEASES
00:21:28 THAT HAVE BEEN FORMALIZED AS A Q OF 13 MORE THAT STILL NEED TO
00:21:31 BE FORMALIZED THAT ARE UNDERWAY AT MTA AND THEN AS WE DISCUSSED
00:21:35 ON PAGE SEVEN OF OUR REPORT YOU CAN SEE THAT THIS IS GENERATING
00:21:40 ABOUT $241,000 A YEAR IN RENT TO MTA THAT USED TO PAY FOR
00:21:46 TRANSIT OPERATIONS AT MTA AND IT EXCEEDS THE MARKET RENT.
00:21:53 THAT WAS WHAT BUT AN APPRAISAL SHOW WOULD BE MARKET RENT FOR
00:21:57 THIS SPACE BY A COUPLE OF DOLLARS PER SQUARE FOOT.
00:22:00 SO WE DO RECOMMEND APPROVAL OF ITEM TWO WHEN WE RECOMMEND THAT
00:22:04 THE RESOLUTION BE AMENDED TO STATE THAT IT IS RETROACTIVE.
00:22:07 >> THANK YOU. SUPERVISOR SAUTER THANK YOU
00:22:11 CHAIR. THIS IS I THINK IN MANY WAYS
00:22:12 SIMILAR TO SOMETHING WE SAW BEFORE THIS BODY A FEW MONTHS
00:22:16 AGO IN DISTRICT SIX AND I THINK WE'RE SEEING THESE TWO TO
00:22:20 SQUARE UP WHAT WAS DISCUSSED DURING THE PANDEMIC AND SOME OF
00:22:23 THE ADJUSTMENTS IN FORMALIZING THAT SO APPRECIATE THE WORK TO
00:22:26 GET THIS IN LINE AND I'M GLAD TO SEE THAT THINGS ARE PICKING
00:22:30 UP IN UNION SQUARE AND ON THIS PROPERTY ON ELLIS LIST.
00:22:34 SO I'LL BE SUPPORTING THIS AND IN FACT I HAVE AN AMENDMENT
00:22:37 TO DO ONE OF THE RECOMMENDATIONS FROM THE BILL
00:22:41 TO SIMPLY MAKING THIS RETROACTIVE.
00:22:43 SO YOU HAVE THOSE AMENDMENTS BEFORE YOU AND I WOULD ASK THAT
00:22:45 WE ACCEPT THAT AMENDMENT AND SEND THIS TO THE FULL BOARD
00:22:49 WITH RECOMMENDATION. THANK YOU.
00:22:52 AND SO WITH THAT WE WILL GO TO PUBLIC COMMENT.
00:22:56 >> THANK YOU. YES, WE'RE NOW OPENING PUBLIC
00:22:57 COMMENT FOR THIS ITEM NUMBER ONE, IF WE HAVE ANY MEMBERS OF
00:23:00 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:23:03 MADAM CHAIR, WE HAVE NO SPEAKERS SEEN NO PUBLIC
00:23:06 COMMENTS. PUBLIC COMMENT IS I'LL CLOSE
00:23:10 SUPERVISOR SORRY WOULD YOU LIKE TO MAKE THE AMENDMENT MAKE A
00:23:15 MOTION TO AMEND AND AND THEN YES I'D LIKE TO MAKE A MOTION
00:23:18 TO AMEND THE ITEM TO TO INTRODUCE RETROACTIVE LANGUAGE
00:23:22 AND SEND THE FULL BOARD WITH RECOMMENDATION AND WITH THAT A
00:23:26 ROLL CALL PLEASE ON THAT MOTION AND ON THAT MOTION BY MEMBER
00:23:30 SAUDER THAT WE AMEND THIS RESOLUTION ASSOCIATED INTO OR
00:23:34 TO ACCEPT RETROACTIVE LANGUAGE ENTER FOR THIS RESOLUTION TO
00:23:39 THE FULL BOARD WITH RECOMMENDATION AS AMENDED.
00:23:42 VICE CHAIR DORSEY AND DORSEY I REMEMBER SENATOR I SAW HER I
00:23:46 CHURCH CAN I CAN I WE HAVE THREE EYES THE MOTION PASSES
00:23:52 AND MR. CLERK PLEASE CALL ITEM NUMBER THREE.
00:23:53 >> YES. ITEM NUMBER THREE IS A MOTION
00:23:55 ENACTING A 4.5% COST OF LIVING ADJUSTMENT TO THE BASE FISCAL
00:24:01 YEAR 2025 TO 20 26 CONTRACT AMOUNT OF APPROXIMATELY 3.4
00:24:07 MILLION FOR BUDGET AND LEGISLATIVE ANALYST
00:24:08 SERVICES TO BE EFFECTUATED AS OF JULY 1ST 2026 RESULTING IN A
00:24:13 NEW FISCAL YEAR 2026 TO 2027 CONTRACT AMOUNT OF
00:24:18 APPROXIMATELY 3.5 MILLION AN ANNUAL INCREASE OF
00:24:20 APPROXIMATELY 150 2008 TOTAL NOT TO EXCEED CONTRACT AMOUNT
00:24:26 OF 36 MILLION FOR THE CONTRACT TERM ENDING DECEMBER 31ST 2031
00:24:32 AND DIRECTING THE CLERK OF THE BOARD TO TAKE ALL NECESSARY
00:24:33 ADMINISTRATIVE ACTION TO AMEND THE CONTRACT ACCORDINGLY.
00:24:37 >> MADAM CHAIR, THANK YOU. AND TODAY WE HAVE THE CLERK OF
00:24:43 THE BOARD. PLEASE GO AHEAD.
00:24:47 >> GOOD MORNING CHURCH PLANNING COMMITTEE MEMBERS I'M DR.
00:24:50 EDWARD DIOCESE. I'M THE CFO FOR THE BOARD OF
00:24:51 SUPERVISORS. TODAY I'M BRINGING BEFORE YOU
00:24:54 TO REQUEST APPROVAL OF A MOTION TO ENACT A COST OF LIVING
00:24:58 ADJUSTMENT FOR THE BALLET CONTRACT UNDER THE CONTRACT YOU
00:25:02 ARE PROVIDED WITH SERVICES INCLUDING POLICY ANALYSIS,
00:25:05 LEGISLATIVE ANALYSIS AND BUDGET ANALYSIS.
00:25:09 AS YOU KNOW, THE CURRENT CONTRACT IS WITH HARVEY AMBROSE
00:25:13 ASSOCIATES LLC. THE CURRENT NOT TO EXCEED
00:25:14 AMOUNT IS 36 MILLION. THE CONTRACT IS FOR TEN YEARS
00:25:18 AND RUNS TO DECEMBER 31 2031 2031.
00:25:21 TODAY WE'RE REQUESTING THE COMMITTEE'S APPROVAL TO
00:25:24 EFFECTUATE A CONTRACT AMENDMENT TO ENACT A COLA ADJUSTMENT OF
00:25:31 4.5% EFFECTIVE JULY 1ST, 2026. I'LL ADD THAT THE FUNDING
00:25:35 AUTHORITY IN THE BUDGET IS INCLUDED IN THE DEPARTMENT'S
00:25:37 JUNE 1ST BUDGET AND COMPTROLLER'S OFFICE HAS
00:25:39 CERTIFIED THAT THIS CONTRACT GENERATES SAVINGS FOR THE CITY
00:25:45 . I WILL KEEP MY COMMENTS BRIEF
00:25:46 THERE BECAUSE I KNOW WE HAVE A LONG DAY SO I WILL YIELD THE
00:25:50 REST OF MY TIME AND I'M AVAILABLE FOR QUESTIONS.
00:25:54 >> THANK YOU. THANK YOU FOR THE PRESENTATION.
00:25:55 WE APPRECIATE OUR PARTNERSHIP AND WITH THE BUDGET
00:26:01 AND LEGISLATIVE ANALYST AS THIS IS PART OF THE CONTRACT.
00:26:03 >> AND SO WITH THAT LET'S GO TO PUBLIC COMMENT ON THIS ITEM.
00:26:07 >> YES. IF WE HAVE ANY MEMBERS OF THE
00:26:09 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE REGARDING THIS ITEM
00:26:12 NUMBER THREE AND THAT WAS YOUR OPPORTUNITY.
00:26:15 >> MADAM CHAIR. WE HAVE NO SPEAKERS SEE NO
00:26:17 PUBLIC COMMENTS, PUBLIC COMMENTS NOW CLOSE COLLEAGUES,
00:26:20 I WOULD LIKE TO MAKE THE MOTION TO MOVE THIS ITEM TO FULL BOARD
00:26:27 WITH RECOMMENDATION AND A ROLL CALL PLEASE.
00:26:28 >> AND ON THAT MOTION REFER TO THE FULL BOARD WITH
00:26:31 RECOMMENDATION VICE CHAIR DORSEY DORSEY I REMEMBER SAUTER
00:26:35 SAUTER I CHURCH CAN I CAN'T I WE HAVE THREE EYES THE MOTION
00:26:39 PASSES AND MR. CLERK DO WE HAVE ANY OTHER BUSINESS BEFORE US
00:26:42 TODAY? >> I MADAM CHAIR THAT CONCLUDES
00:26:43 OUR BUSINESS