00:00:11 . THIS MEETING WILL COME TO
00:00:12 ORDER. WELCOME TO THE 20 TO THE
00:00:15 SEPTEMBER 30TH 2026 MEETING OF THE BUDGET AND FINANCE
00:00:18 COMMITTEE. >> I'M SUPERVISOR MATT DORSEY,
00:00:19 CHAIR OF THIS COMMITTEE AND I'M JOINED TODAY BY VICE CHAIR
00:00:22 CHEYENNE CHEN AND MEMBER OF DANNY SUTTER.
00:00:25 OUR CLERK TODAY IS MR. VICTOR YANG WHOM WE THANK IN ADVANCE
00:00:27 FOR STAFFING AND KEEPING US ON TRACK TODAY AS WELL.
00:00:30 WE'RE APPRECIATIVE TO THE ENTIRE TEAM AT S.F. GOV TV FOR
00:00:33 FACILITATING AND BROADCASTING TODAY'S MEETING AND THAT IS
00:00:37 ESPECIALLY TRUE FOR OUR PRODUCER TODAY KALEENA MENDOZA
00:00:40 . MR. CLERK, DO YOU HAVE ANY
00:00:41 ANNOUNCEMENTS? YES.
00:00:42 JUST A REMINDER TO THOSE IN ATTENDANCE TO PLEASE MAKE
00:00:45 SURE TO SIGN THIS ALL CELL PHONES AND ELECTRONIC DEVICES
00:00:47 TO FIT INTERRUPTIONS TO OUR PROCEEDINGS SHOULD YOU HAVE ANY
00:00:50 DOCUMENTS TO BE INCLUDED AS PART OF THE FILE THEY SHOULD BE
00:00:53 SUBMITTED TO MYSELF, THE CLERK PUBLIC COMMENT WILL BE TAKEN ON
00:00:56 EACH ITEM ON THIS AGENDA WHEN YOUR ITEM OF INTEREST COMES UP
00:00:58 IN PUBLIC COMMENT IS CALL PLEASE LINE TO SPEAK ON THE
00:01:01 WEST SIDE OF THE CHAMBER TO YOUR RIGHT MY LEFT ALONG THOSE
00:01:04 CURTAINS WHILE NOT REQUIRED TO PROVIDE PUBLIC COMMENT WE DO
00:01:09 INVITE YOU TO FILL OUT A COMMENT CARD AND LEAVE THEM ON
00:01:12 THE TRAY BY THE TELEVISION TO YOUR LEFT BY THE DOORS IF YOU
00:01:16 WISH FOR YOUR NAME TO BE ACCURATELY RECORDED FOR THE
00:01:20 MINUTES ALTERNATIVELY MISSED MID PUBLIC COMMENT IN WRITING
00:01:23 YOU IN THE FOLLOWING WAYS EMAIL THEM TO THE BUDGET AND FINANCE
00:01:27 COMMITTEE CLERK AT B R E N T DOT JLI IPA AT S.F. COORD IF
00:01:32 YOU SUBMIT PUBLIC COMMENT BY EMAIL WILL BE FORWARD TO THE
00:01:36 SUPERVISORS INCLUDED AS PART OF THE FILE.
00:01:39 YOU MAY ALSO SEND YOUR WRITTEN COMMENTS BY US MAIL TO OUR
00:01:41 OFFICE IN CITY HALL ONE DR. CARLETON PLACE ROOM TWO FOUR
00:01:47 FOR SAN FRANCISCO CALIFORNIA NINE FOR 1 OR 2 AND FINALLY
00:01:50 ITEMS ACTED UPON TODAY ARE EXPECTED TO APPEAR ON THE BOARD
00:01:54 OF SUPERVISORS AGENDA FOR OCTOBER 6TH UNLESS OTHERWISE
00:01:56 STATED THAT COMPLETES MY INITIAL ANNOUNCEMENTS.
00:02:00 >> THANK YOU MR. CLERK. BEFORE I ASK YOU TO CALL ITEM
00:02:04 ONE, I'D LIKE TO LET OUR VIEWERS AND ATTENDEES KNOW THAT
00:02:06 WE HAVE PUT OUR BUDGET AND LEGISLATIVE ANALYSTS
00:02:08 THROUGH THE PACES THIS WEEK WITH A LOT OF REPORTS.
00:02:11 WE HAVE REPORTS THIS WEEK FOUR ITEMS THREE FOUR, FIVE, SIX,
00:02:16 SEVEN THROUGH TEN AND 11 ON TODAY'S AGENDA FOR THOSE ITEMS
00:02:20 WE WILL HEAR FROM THE DEPARTMENT FIRST WITH THEIR
00:02:22 PRESENTATION, THEN WE WILL FOLLOW WITH THE BUDGET
00:02:25 AND LEGISLATIVE ANALYST'S REPORT.
00:02:26 WE WILL THEN FACILITATE QUESTIONS FROM THE COMMITTEE
00:02:29 AND THEN INVITE A PUBLIC COMMENT.
00:02:30 NOW MR. CLERK, WOULD YOU PLEASE CALL ITEM NUMBER ONE?
00:02:35 >> YES. ITEM NUMBER ONE IS A RESOLUTION
00:02:38 RETROACTIVELY AUTHORIZING THE DEPARTMENT OF PUBLIC HEALTH TO
00:02:42 ACCEPT AND EXPEND A GRANT IN THE AMOUNT OF 475,000 FROM
00:02:44 THE GOVERNOR'S OFFICE OF EMERGENCY SERVICES THROUGH THE
00:02:48 SAN FRANCISCO GENERAL HOSPITAL FOUNDATION FOR A PARTICIPATION
00:02:52 IN A PROGRAM ENTITLED PHYSICAL AND DIGITAL INFRASTRUCTURE
00:02:55 SECURITY WOMEN'S OPTIONS CENTER SIX IMPROVEMENTS FOR THE PERIOD
00:02:59 OF TERM REFERS 2024 THROUGH DECEMBER 31ST 2026.
00:03:06 >> THANK YOU MR. CLERK. WE ARE JOINED BY MR. JASON ZOUK
00:03:10 WITH CAPITAL PLANNING AND PROGRAMS AT THE DEPARTMENT
00:03:12 OF PUBLIC HEALTH. >> MR. ZAJAC, WELCOME TO THE
00:03:15 BUDGET AND FINANCE COMMITTEE. THE FLOOR IS YOURS NOW MY
00:03:18 APOLOGIES. YOU MAY BEGIN.
00:03:21 >> SORRY I TURNED TO MIKE, SON. OKAY.
00:03:25 >> YEAH. >> HERE WE ARE.
00:03:29 OKAY. SO THIS IS A GRANT TO FUND WHAT
00:03:36 WE'RE CALLING A WOMEN'S OPTIONS CENTER SECURITY PROJECT.
00:03:40 OUR 60 CLINIC WHICH IS THE WOMEN'S OPTIONS CENTER.
00:03:44 >> WE'RE CREATING A NEW SALLY PORT WHICH IS A SECURE DOOR
00:03:48 SECURE ENTRY INTO THE CLINIC BASED ON A HISTORY OF SOME
00:03:55 SECURITY RISKS THAT WE'VE IDENTIFIED AT THE HOSPITAL.
00:04:00 SO THIS INTENDS TO SOLVE THAT PROBLEM.
00:04:03 OKAY. WITH OUR PARTNERS AT THE SAN
00:04:07 FRANCISCO GENERAL HOSPITAL FOUNDATION, WE WERE AWARDED
00:04:11 THIS $475,000 GRANT. >> WE HAVE COMPLETED DESIGN
00:04:18 AND WE ARE AWAITING PERMIT AND THIS FUNDING WILL FOCUS ON
00:04:24 GETTING CONSTRUCTION STARTED AND WE INTEND TO EXPEND THIS BY
00:04:31 DECEMBER 31ST OF THIS YEAR. THIS IS A FLOOR PLAN OF OF THE
00:04:38 LOCATION AND BUILDING FIVE AT GENERAL HOSPITAL.
00:04:40 IT'S A RATHER SMALL PROJECT BUT AN IMPORTANT ONE.
00:04:51 SO THE SCOPE INCLUDES DEMOLITION OF SOME EXISTING
00:04:55 OFFICES IN ORDER TO FACILITATE THE CONSTRUCTION OF THIS NEW
00:04:58 SALLY PORT WHICH WILL ALSO INCLUDE BADGE ACCESS TO BOTH
00:05:02 DOORS AND HELP TO INCREASE THE SECURITY FOR ENTRY INTO THE
00:05:08 CLINIC. THIS IS A RETROACTIVE REQUEST.
00:05:18 WE DID RECEIVE NOTICE OF THE AWARD.
00:05:23 THERE ARE ADDITIONAL CITY FUNDS TO COMPLETE THIS PROJECT.
00:05:27 THE OVERALL PROJECT COST IS APPROXIMATELY $850,000 AT THIS
00:05:34 POINT WE ARE WAITING FOR ADDITIONAL BIDS TO COME IN BUT
00:05:37 THAT'S THAT'S OUR CURRENT ESTIMATE 475 WILL COVER MOST OF
00:05:41 THE COSTS THROUGH THE END OF THIS YEAR AND THAT'S ALL THEY
00:05:52 HAVE. >> OKAY.
00:05:52 ANY QUESTIONS? THANK YOU MR. ZOUK.
00:05:55 I WILL SAY THAT I AM GLAD TO SUPPORT THIS FUNDING TO
00:05:57 STRENGTHEN OUR SAFETY AND SECURITY FOR PATIENTS WHO
00:05:59 ARE SEEKING ABORTION AND REPRODUCTIVE HEALTH CARE AT
00:06:03 THE WOMEN'S OPTION CENTER WE KNOW THIS CARE IS BEING
00:06:07 PROVIDED IN A HEIGHTENED AND INCREASINGLY CHALLENGING
00:06:11 POLITICAL AND SECURITY ENVIRONMENT.
00:06:12 THE NATIONAL ABORTION FEDERATION REPORTED INCREASES
00:06:14 NATIONWIDE IN ASSAULTS, STALKING, THREATS OF VIOLENCE
00:06:19 TARGETING ABORTION PROVIDERS AND PATIENTS IN 2025 A FEDERAL
00:06:22 LAW SPECIFICALLY RECOGNIZES THREATS, INTIMIDATION
00:06:26 AND INTERFERENCE DIRECTED AT PEOPLE SEEKING OR PROVIDING
00:06:30 REPRODUCTIVE HEALTH SERVICES AS A SERIOUS SAFETY CONCERN THAT
00:06:34 MAKES INVESTMENTS IN PHYSICAL SECURITY ESPECIALLY IMPORTANT.
00:06:38 AND I THINK THIS FUNDING WILL CREATE MORE AND BETTER SECURE
00:06:42 AND DISCREET PATIENT CHECK IN AND WAITING AREAS.
00:06:45 NO ONE SEEKING LAWFUL HEALTH CARE SHOULD HAVE TO FEAR FOR
00:06:46 THEIR SAFETY WHEN THEY WALK THROUGH THE DOOR.
00:06:50 AND NO HEALTH CARE WORKER SHOULD HAVE TO FEAR FOR THEIR
00:06:51 SAFETY SIMPLY FOR DOING THEIR JOB.
00:06:54 THIS IS AN IMPORTANT INVESTMENT TO ENSURE THE SAFETY OF
00:06:57 PATIENTS AND OUR WORKERS AND I REALLY APPRECIATE THE WORK THAT
00:07:01 YOU'RE DOING ON THIS. I DON'T SEE ANYONE ON THE
00:07:02 ROSTER WITH QUESTIONS OR COMMENTS AT THIS TIME.
00:07:05 >> WHY DON'T WE INVITE A PUBLIC COMMENT?
00:07:06 YES MEMBERS PUBLIC LIKE ME PUBLIC COMMENT CAN APPROACH THE
00:07:10 PODIUM AT THIS TIME YOU'LL BE ALLOWED TWO MINUTES.
00:07:13 ARE THERE ANY MEMBERS THE PUBLIC LIKE TO MAKE PUBLIC
00:07:16 COMMENT? >> THERE ARE NO PUBLIC
00:07:17 COMMENTERS. THANK YOU MR. CLEAR PUBLIC
00:07:19 COMMENT ON THIS ITEM IS CLOSED AND AT THIS TIME I WOULD MOVE
00:07:24 TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH
00:07:26 OUR POSITIVE RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
00:07:29 ROLL CALL IN THAT MOTION? THANK YOU.
00:07:31 YES. ON THAT MOTION TO REFER THIS
00:07:35 RESOLUTION TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR
00:07:39 CHEN CHEN I REMEMBER SAUTER. SAUTER I CHAIR DORSEY GARCIA
00:07:43 THAT MOTION PASSES WITHOUT OBJECTION.
00:07:47 >> THANK YOU, MR. CLERK. THE MOTION PASSES.
00:07:48 THANK YOU, MR. XU MR. CLERK, CAN YOU PLEASE CALL ITEM NUMBER
00:07:51 TWO? >> ITEM NUMBER TWO IS A
00:07:52 RESOLUTION RETROACTIVELY AUTHORIZING THE DEPARTMENT OF
00:07:55 PUBLIC HEALTH TO ACCEPT AND EXPEND A GRANT INCREASE
00:07:58 FROM THE HEALTH RESOURCE AND SERVICES ADMINISTRATION FOR
00:08:01 PARTICIPATION IN A PROGRAM ENTITLED ENDING THE HIV
00:08:06 EPIDEMIC A PLAN FOR AMERICA. RYAN WHITE HIV AIDS PROGRAM
00:08:10 PARTS A AND B APPROVING THE NOTICE OF AWARD AGREEMENT
00:08:14 PURSUANT TO THE CHARTER AND RETROACTIVELY APPROVING A
00:08:18 NOTICE OF AWARD AGREEMENT BETWEEN THE CITY ACTING BY
00:08:21 AND THROUGH IT THE DEPARTMENT OF PUBLIC HEALTH AND THE HEALTH
00:08:22 RESOURCES AND SERVICES ADMINISTRATION IN THE AMOUNT OF
00:08:28 APPROXIMATELY $2.4 MILLION FOR THE PERIOD OF MARCH 1ST 2026 TO
00:08:31 FEBRUARY 28TH 2027 FOR A TOTAL APPROXIMATE $6.1 MILLION FOR
00:08:36 THE TOTAL PERIOD OF MARCH 1ST 2025 THROUGH FEBRUARY 28TH
00:08:41 2027. >> THANK YOU, MR. CLERK.
00:08:45 >> WE ARE JOINED TODAY BY MR. BILL BLOOM, DIRECTOR OF HIV
00:08:46 SERVICES FOR THE DEPARTMENT OF PUBLIC HEALTH.
00:08:50 MR. BLOOM, WE WELCOME YOU TO THE BUDGET AND FINANCE
00:08:51 COMMITTEE FOR YOURS. >> THANK YOU.
00:08:53 THANK YOU, CHAIR AND SUPERVISOR.
00:08:54 IT'S A PLEASURE TO BE HERE. SO IT IS A SECRET.
00:09:00 THIS IS FUNDING FOR ENDING THE HIV EPIDEMIC WHICH IS A PART OF
00:09:04 THE RYAN WHITE PROGRAMS THAT ARE FUNDING SOURCE IS OUR
00:09:08 GRANTOR'S HEALTH RESOURCE AND SERVICE AGENCY HERSELF
00:09:12 AND THE DIVISION AS HIV AND AIDS BUREAU HAB THE GRANT
00:09:16 AMOUNT IS 3,170,000 WHICH REPRESENTS AN ALMOST $750,000
00:09:25 INCREASE THE TOTAL AMOUNT FOR A TWO YEAR DURATION IS 6,100,000
00:09:31 AND THE FEDERAL GRANT HERE IS MARCH 1ST THROUGH FEBRUARY 28TH
00:09:38 . >> SO JUST A BRIEF ABOUT WHAT
00:09:43 THIS FUNDING IS FOR. IT BEGAN ABOUT SEVEN YEARS AGO
00:09:46 WITH THE IDEA UNDER THE FIRST TRUMP ADMINISTRATION THAT WE
00:09:50 COULD END THE HIV EPIDEMIC PRIMARILY CONSISTING OF FOUR
00:09:54 KEY STRATEGIES GET PEOPLE DIAGNOSED, GET THEM INTO
00:09:57 TREATMENT, PREVENT NEW INFECTIONS FROM HAPPENING
00:10:00 AND THEN RESPONDING WHICH IS KIND OF LOOKING AT CLUSTERS OF
00:10:04 HIV INFECTION. SO WE'RE IN THE SECOND OF THE
00:10:08 FIVE YEAR CYCLE AND THE GOAL IS TO REDUCE BY 90% NATIONALLY BY
00:10:13 2030 EACH YEAR. THE WAY THE FUNDING WORKS IS
00:10:15 FOCUSED IN GEOGRAPHIC AREAS WHERE HIV TRANSMISSION OCCURS
00:10:19 MOST FREQUENTLY AND REALLY IT ALSO LOOKS AT THE PREVALENCE OF
00:10:25 HIV BECAUSE AS YOU GUYS KNOW PROBABLY KNOW WE'VE BEEN VERY
00:10:29 SUCCESSFUL IN TERMS OF REDUCING NEW INFECTIONS.
00:10:30 SO WE ARE AMONGST 57 REGIONS ACROSS 26 STATES D.C.
00:10:33 AND PUERTO RICO THAT GET THIS FUNDING LOCALLY.
00:10:41 SHE FUNDS TEN DIFFERENT AGENCIES TO DELIVER 19 SERVICES
00:10:44 AND I JUST WANT TO PAUSE HERE TO RECOGNIZE ONE OF THE STAFF
00:10:48 OF HIV HEALTH SERVICES, ANDY SHEAR, WHO'S JUST DONE A TOP
00:10:52 JOB ADMINISTERING IT FOR THE LAST FOUR YEARS REALLY KIND OF
00:10:54 LOOKED AT DATA TO CARE CONSIDERATIONS IN THE ROLL OUT
00:10:58 OF TREATMENTS THAT ARE LONG ACTING AND MADE A HUGE
00:11:00 DIFFERENCE. >> SO SHOUT OUT TO HIM.
00:11:02 SO THE OVERALL GOAL LIKE MANY OTHER THINGS IN D H IS TO
00:11:07 PROVIDE LOW BARRIER MEDICAL CARE AND SUPPORT SERVICES
00:11:10 AND IN THIS CASE TO 1200 PEOPLE ABOUT IN SAN FRANCISCO.
00:11:16 >> SO THE REASON THIS ITEM IS RETROACTIVE IS WE RECEIVE THE
00:11:21 AWARD FROM HER TO ON MAY 21ST WHICH IS ACTUALLY AFTER THE
00:11:24 START OF THE CONTRACT YEAR WHICH WAS SET TO BEGIN IN MARCH
00:11:30 1ST SHE THEN DID BRING THIS ITEM THROUGH TO THE BOARD OF
00:11:34 SUPERVISOR FISCAL APPROVALS PROCESS AND INCLUDING THE
00:11:35 COMPTROLLER'S OFFICE REVIEW AND APPROVAL AND THEN WE
00:11:41 SUBMITTED IT FOR HER TO YOU ALL AT THE BOARD OF SUPERVISORS.
00:11:45 >> SO I'M ACTUALLY GOING TO ASK AT THE END CHAIR IF AFTER YOU
00:11:49 GUYS VOTE I JUST A BRIEF STATEMENT IF THAT'S OKAY WITH
00:11:53 YOU BEFORE THE NEXT AGENDA ITEM.
00:11:54 SURE. OKAY.
00:11:54 THANKS. SO MY CONCLUSION IS
00:11:57 RESPECTFULLY REQUEST RETROACTIVE APPROVAL OF THIS
00:12:00 ITEM. >> GREAT.
00:12:01 I'M HAPPY TO HEAR THAT. >> COUPLE QUESTIONS.
00:12:06 ONE I JUST AS YOU MAY KNOW, YOU KNOW IN THIS CHAMBER SOME OF
00:12:11 THE FEDERAL SUPPORT THAT WE HAVE HAD HAS BEEN WITHDRAWN
00:12:15 AND IT'S IT SEEMS TO ME ON RYAN WHITE FUNDING AND OTHERS WE
00:12:19 HAVE BIPARTISAN SUPPORT. >> IS IT YOUR SENSE THAT THAT
00:12:23 IS THE CASE? YES, IT YOU KNOW THAT
00:12:27 PARTICULARLY ON THE REPUBLICAN SIDE WHERE THERE'S A LOT OF NON
00:12:29 MEDICAID EXPANSION STATES, THIS WILL ALL FALL ON THE GOVERNORS
00:12:34 AND LOCAL HOSPITALS. SO WHILE PUBLICLY NOT A LOT OF
00:12:37 LARGE SUPPORT IT HAS HISTORICALLY AND CURRENTLY
00:12:40 ENJOYED SUPPORT THE CHC FUNDING WE'RE REALLY LUCKY WE DID
00:12:45 WONDER IF IT WOULD CONTINUE BECAUSE IT WAS SLATED FOR A FOR
00:12:48 ELIMINATION BUT A LOT OF ADVOCACY AND EDUCATION AND SO
00:12:52 WE'RE IN A GOOD PLACE AND I KNOW IF I UNDERSTAND CORRECTLY
00:12:54 I THINK WE HAVE A PRETTY GOOD STORY TO TELL IN TERMS OF OUR
00:12:57 RATES HOW HOW ARE WE DOING NATIONALLY?
00:13:00 >> WE'RE ABOUT AT THE TOP. WE CERTAINLY SAW AN AP
00:13:04 PRESENTATION, YOU KNOW, SO IT'S A MEASURED BY VIRAL SUPPRESSION
00:13:07 AND WE'RE ONE OF THE FEW PLACES WHERE YOU KNOW, YOU TEND TO SEE
00:13:12 HEALTH HEALTH OUTCOMES DISPARITIES IN TWO POPULATIONS
00:13:16 OR POPULATIONS YOU OFTEN SEE IT WOULD BE WOMEN BOTH CIS WOMEN
00:13:20 AND TRANSGENDER WOMEN AS WELL AS BLACK AFRICAN-AMERICAN
00:13:26 AND AND THEN PEOPLE EXPERIENCING HOUSING
00:13:27 INSTABILITY AND HOMELESSNESS AND ACTUALLY WE'VE KIND OF
00:13:30 ELIMINATED ALL THAT WE ALL OF OUR CONTRACT AGENCIES ARE
00:13:35 REALLY AND CLINICS HAVE ELIMINATED ALL THE DISPARITIES
00:13:38 EXCEPT FOR PEOPLE THAT ARE EXPERIENCING HOMELESSNESS OR
00:13:42 HOUSING INSTABILITY. AND ACTUALLY WITH THE CHC
00:13:43 FUNDING WE'RE REALLY FOCUSED ON TREATMENT CENTER WELL HOPEFULLY
00:13:47 FOR PREVENTION EVERY SIX MONTHS BUT FOR TREATMENT EVERY TWO
00:13:51 MONTHS AND WE HOPE THAT WILL CHANGE THE THE THAT OUTCOME AS
00:13:53 WELL SO WE WON'T HAVE DISPARITIES.
00:13:57 >> WELL, I WANT TO EXPRESS MY SUPPORT FOR THIS ITEM AND FOR
00:13:58 SAN FRANCISCO'S CONTINUED COMMITMENT TO ENDING THE HIV
00:14:01 EPIDEMIC. AS A GAY MAN MYSELF LIVING
00:14:06 OPENLY WITH HIV, THIS IS A PRIORITY FOR ME.
00:14:09 I REMEMBER A TIME WHEN AN HIV DIAGNOSIS CARRIED A VERY
00:14:13 DIFFERENT PROGNOSIS AND THE EXTRAORDINARY ADVANCES
00:14:17 IN TREATMENT AND PREVENTION HAVE REALLY TRANSFORMED WHAT IT
00:14:18 MEANS TO TO LIVE WITH HIV. THAT DOESN'T MEAN WE'RE WITHOUT
00:14:22 CHALLENGES TOO AS WE HAVE AN AGING POPULATION WHO ARE GOING
00:14:25 TO BE LIVING LONGER WITH HIV. WE RECEIVED SOME ENCOURAGING
00:14:29 NEWS I KNOW JUST LAST WEEK SAN FRANCISCO REPORTED 136 NEW HIV
00:14:34 DIAGNOSES IN 2025. >> THAT IS THE LOWEST NUMBER ON
00:14:38 RECORD. IN A 75% DECLINE OVER THE PAST
00:14:41 20 YEARS, I THINK THAT PROGRESS REFLECTS DECADES OF INVESTMENT
00:14:44 IN PREVENTION AND TREATMENT AND ENSURING PEOPLE LIVING WITH
00:14:46 HIV ARE CONNECTED TO CARE. >> BUT WE ALSO KNOW THAT
00:14:50 PROGRESS HAS NOT BEEN SHARED EQUALLY.
00:14:53 BLACK AND LATINO SAN FRANCISCANS AND TRANSGENDER
00:14:56 WOMEN REMAIN DISPROPORTIONATELY REPRESENTED AMONG THE NEW HIV
00:15:00 DIAGNOSES. WE ALSO KNOW THAT BARRIERS LIKE
00:15:04 HOMELESSNESS AND LACK OF ACCESS TO HEALTH CARE CONTINUE TO MAKE
00:15:06 IT HARDER FOR SOME PEOPLE TO STAY IN TREATMENT.
00:15:08 THAT'S WHY I THINK FEDERAL FUNDING LIKE THIS MATTERS SO
00:15:12 MUCH. IT SUPPORTS LOW BARRIER MEDICAL
00:15:13 CARE AND WRAPAROUND SERVICES DESIGNED SPECIFICALLY TO REACH
00:15:16 PEOPLE WHO HAVE HISTORICALLY HAD THE GREATEST DIFFICULTY
00:15:20 ACCESSING AND REMAINING CONNECTED TO CARE.
00:15:24 THESE SERVICES HAVE ALREADY REACHED MORE THAN 1200 PEOPLE
00:15:26 LIVING WITH HIV SINCE MARCH OF 2025.
00:15:30 WE SHOULD BE PROUD OF HOW FAR SAN FRANCISCO HAS COME BUT 136
00:15:33 NEW INFECTIONS ARE STILL I THINK WE WOULD ALL AGREE 136
00:15:37 TOO MANY. GETTING TO ZERO MEANS
00:15:40 CONTINUING TO INVEST IN THE PEOPLE IN THE COMMUNITIES WHO
00:15:44 ARE HARDEST TO REACH AND MAKING SURE THAT EVERYONE LIVING WITH
00:15:45 HIV HAS THE OPPORTUNITY TO RECEIVE TREATMENT, ACHIEVE
00:15:48 VIRAL SUPPRESSION AND LIVE LONG HEALTHY LIVES.
00:15:52 AND I JUST WANT TO EXPRESS MY APPRECIATION TO YOU AND TO
00:15:55 EVERYBODY WHO IS DOING THIS WORK FOR A DEPARTMENT OF PUBLIC
00:15:59 HEALTH. >> THANK YOU SO MUCH.
00:16:00 THANKS. SEE NO ONE ELSE ON THE ROSTER
00:16:02 WITH QUESTIONS OR COMMENTS. THANK YOU FOR YOUR
00:16:03 PRESENTATION. YOU'LL COME UP YOU CAN COME UP
00:16:06 AFTER PUBLIC COMMENT BUT AT THIS TIME MR. CLARK WHY DON'T
00:16:07 WE INVITE A PUBLIC COMMENT ON THIS ITEM?
00:16:10 YES. MEMBERS OF THE PUBLIC WOULD
00:16:11 LIKE TO MAKE PUBLIC COMMENT AT THIS TIME CAN LINE UP TO SPEAK.
00:16:14 EACH MEMBER OF THE PUBLIC WILL BE ALLOWED TWO MINUTES.
00:16:16 ARE THERE ANY MEMBERS PUBLIC BY PUBLIC COMMENT THERE ARE NO
00:16:20 THERE IS NO PUBLIC COMMENT. OKAY.
00:16:21 PUBLIC COMMENT ON THIS ITEM IS CLOSE AND MR. BLOOM, I WOULD
00:16:24 INVITE YOU TO MAKE SOME CLOSING STATEMENTS IF YOU'D LIKE.
00:16:28 >> SURE. I I'M GETTING A LITTLE AHEAD OF
00:16:31 THE VOTE BUT I JUST WANT TO THANK YOU.
00:16:32 I'M GOING TO ASSUME THERE IS SUPPORT THIS ACTUALLY I'VE BEEN
00:16:35 WORKING HERE 20 YEARS AND THIS IS MY LAST TIME OF PRESENTING
00:16:39 TO YOU ALL BECAUSE I WILL BE SOMETHING HAPPENS, I'LL BE
00:16:40 RETIRING AND I JUST WANT TO THANK THE BOARD OF SUPERVISORS
00:16:43 AS WELL AS THE MAYORS BECAUSE IN THE 20 YEARS I'VE BEEN HERE
00:16:46 YOU ALL HAVE BEEN SUPER SUPPORTIVE AND NOT ONLY IN THIS
00:16:49 SIDE WHICH IS A LITTLE MORE JOYOUS BECAUSE IT'S ACCEPTING
00:16:50 MONEY FROM THE FEDERAL GOVERNMENT BUT ALSO WHEN IT
00:16:53 COMES TO ADD BACKS IN DEALING WITH REDUCTIONS AND YOU KNOW WE
00:16:57 ARE SLATED FOR REDUCTIONS WHICH FORTUNATELY WILL BE BACKFILLED
00:17:00 BY ANOTHER PART OF RYAN WHITE WHICH IS GOING THROUGH THE
00:17:02 STATE. SO HOPEFULLY WE'LL WE'LL STAY
00:17:05 HARMLESS BUT IN BAD TIMES ALL OF YOU GUYS AND ALL OF THE
00:17:09 MAYORS AND I GO BACK TO JORDAN AND TELL THEM LIKE I GO YOU
00:17:11 HOPE THAT AN AMAZING JOB TO SUPPORT OUR WORK.
00:17:13 >> SO THANK YOU. THANK YOU.
00:17:14 THANK YOU AND CONGRATULATIONS ON YOUR RETIREMENT.
00:17:17 AT MY AGE I AM I USED TO JUST SAY CONGRATULATION AND NOW I'M
00:17:22 KIND OF JEALOUS AND I THINK WHAT MY PLANS ARE GOING TO BE.
00:17:25 >> SO SEEING NO FURTHER QUESTIONS OR COMMENTS I WOULD
00:17:27 MOVE AT THIS TIME TO FORWARD THIS ITEM TO THE FULL BOARD OF
00:17:29 SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
00:17:32 >> MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:17:34 YES, ON THAT MOTION. VICE CHAIR CHIN CHIN I REMEMBER
00:17:37 SENATOR SAUTER I CHAIR DORSEY DORSEY I THAT MOTION PASSES
00:17:43 WITHOUT OBJECTION. >> THANK YOU MR. CLERK THE
00:17:44 MOTION PASSES AND THANK YOU EVERYONE AND CONGRATULATIONS
00:17:48 AGAIN. MR. BLOCK MR. CLERK, MAY WE
00:17:50 PLEASE CALL ITEM NUMBER THREE? ITEM NUMBER THREE IS A
00:17:54 RESOLUTION APPROVING MODIFICATION NUMBER TWO OF
00:17:57 LEASE AND USE AGREEMENT NUMBER 23-0046 BETWEEN UNITED AIRLINES
00:17:59 INC AND THE CITY AND COUNTY BY ACTING BY AND THROUGH ITS
00:18:08 AIRPORT COMMISSION TO PROVIDE UNITED AIRLINES INC A RENTAL
00:18:11 ABATEMENT IN AN AMOUNT NOT TO EXCEED APPROXIMATELY $7.1
00:18:14 MILLION FOR THE CONSTRUCTION OF BASE BUILDING IMPROVEMENT WITH
00:18:18 NO CHANGE TO THE TERM OF JULY 1ST 2023 THROUGH JUNE 30TH
00:18:24 2033. THANK YOU MR. CLERK.
00:18:28 >> WE ARE JOINED BY DIANA BULLOCK, MANAGER OF GOVERNMENT
00:18:29 AFFAIRS WITH THE SAN FRANCISCO AIRPORT IS VOLOKH.
00:18:32 WELCOME TO THE BUDGET AND FINANCE COMMITTEE.
00:18:35 >> THE FLOOR IS YOURS. GOOD MORNING SUPERVISORS.
00:18:36 THE PROPOSED RESOLUTION WOULD APPROVE MODIFICATION NUMBER TWO
00:18:39 TO THE LEASE AND USE AGREEMENT WITH UNITED AIRLINES.
00:18:43 THIS MODIFICATION PROVIDES FOR A RENTAL ABATEMENT NOT TO
00:18:44 EXCEED 7,175,000 TO REIMBURSE UNITED FOR COMPLETING BASE
00:18:51 BUILDING IMPROVEMENTS AS PART OF A NEWLY DEVELOPED LOUNGE
00:18:55 IN TERMINAL TWO. THERE IS NO CHANGE TO THE
00:18:56 EXISTING LEASE TERM IN AUGUST 2025 UNITED LEASED
00:19:01 APPROXIMATELY 21,219FT2 OF SPACE ON THE THIRD FLOOR OF
00:19:05 TERMINAL TWO TO DEVELOP A NEW LOUNGE AS PART OF THIS PROJECT,
00:19:08 UNITED IS CONSTRUCTING SEVERAL BASE BUILDING IMPROVEMENTS THAT
00:19:12 GO BEYOND THE SCOPE OF TYPICAL TENANT IMPROVEMENTS AND PROVIDE
00:19:15 LONG TERM VALUE AND A PERMANENT BENEFIT TO THE AIRPORT.
00:19:19 THIS INCLUDES A NEW ROOFTOP TERRACE, A NEW CREDENTIALING
00:19:22 LOBBY AND A REDEVELOPED PUBLIC STAIRWELL IMPROVING VERTICAL
00:19:26 CIRCULATION BETWEEN FLOORS. >> THESE IMPROVEMENTS CREATE
00:19:29 4568FT2 OF NEW LEASABLE AND REVENUE GENERATING SPACE
00:19:34 FOR THE AIRPORT AND ENHANCE THE OVERALL FUNCTIONALITY OF
00:19:37 TERMINAL TWO FOR PASSENGERS AND EMPLOYEES BECAUSE THESE
00:19:41 IMPROVEMENTS ARE FULLY INTEGRATED INTO THE DESIGN
00:19:45 AND CONSTRUCTION OF UNITED'S LOUNGE PROJECT, IT WOULD HAVE
00:19:49 BEEN OPERATIONALLY IMPRACTICAL FOR THE AIRPORT TO PERFORM THE
00:19:51 WORK SEPARATELY. THE PROPOSED REIMBURSEMENT
00:19:54 APPLIES ONLY TO ELIGIBLE VERIFIED CONSTRUCTION COSTS
00:19:57 DIRECTLY TIED TO THE BASE BUILDING IMPROVEMENTS TO BE
00:20:01 REVIEWED AND APPROVED BY AIRPORT STAFF.
00:20:05 FINANCIALLY THE EXPANDED AREAS ARE EXPECTED TO GENERATE
00:20:08 APPROXIMATELY $19.7 MILLION OVER THE REMAINING LEASE TERM
00:20:13 THE ENTIRE LOUNGE INCLUSIVE OF THE NEWLY IMPROVED AREAS IS
00:20:16 EXPECTED TO GENERATE ABOUT $110,572,479 OVER THE SAME
00:20:23 PERIOD BASED ON THESE PROJECTIONS, THE RENTAL
00:20:26 ABATEMENT AMOUNT WILL BE RECOVERED IN LESS THAN ONE YEAR
00:20:30 THROUGH REVENUE FROM THE FULL LOUNGE FOOTPRINT WITH ALMOST
00:20:33 SEVEN YEARS REMAINING ON THE AIRLINE LEASE AND USE AGREEMENT
00:20:35 TERM. THE L.A HAS RECOMMENDED
00:20:37 APPROVAL AND I'M HERE WITH OUR AVIATION MANAGEMENT TEAM TO
00:20:41 ANSWER ANY QUESTIONS. >> GREAT.
00:20:44 THANK YOU SO MUCH FROM HIS WALLET.
00:20:46 AND NEXT WE'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST
00:20:48 AS ELEMENT THE FLOOR IS YOURS. >> GOOD MORNING CHRISTINA AN
00:20:49 ELEMENT FROM THE BUDGET AND LEGISLATIVE ANALYST'S
00:20:52 OFFICE. ITEM THREE IS A PROPOSED
00:20:53 RESOLUTION TO APPROVE AN AMENDMENT TO UNITED AIRLINES
00:20:57 LEASE AND USE AGREEMENT WITH THE AIRPORT TO PROVIDE A RENTAL
00:21:00 ABATEMENT OF UP TO ABOUT 7.2 MILLION TO REIMBURSE UNITED FOR
00:21:03 COMPLETING IMPROVEMENTS WITHIN THE TERMINAL TO LOUNGE
00:21:07 PREMISES. >> AS MENTIONED BY THE AIRPORT,
00:21:10 UNITE IS EXPANDING ITS LOUNGE SPACE AND THE IMPROVEMENTS ARE
00:21:14 EXPECTED TO INCREASE THE LEASE SPACE BY ABOUT 40 600FT2 WHICH
00:21:18 WILL GENERATE ADDITIONAL LEASE REVENUES TO THE AIRPORT.
00:21:21 >> THE AIRPORT WOULD REIMBURSE ELIGIBLE COSTS ASSOCIATED WITH
00:21:25 THESE IMPROVEMENTS THROUGH THE RENTAL ABATEMENT AND THE NEWLY
00:21:29 CREATED SQUARE FEET IS PROJECTED TO GENERATE ABOUT
00:21:32 19.7 MILLION OVER THE REMAINING LEASE TERM AS SHOWN ON EXHIBIT
00:21:36 TWO AND ON PAGE FOUR OF OUR REPORT WHICH IS MORE THAN
00:21:39 DOUBLE THE AMOUNT OF THE RENTAL ABATEMENT WE RECOMMEND APPROVAL
00:21:43 AND THREE RENT. >> THANK YOU SO MUCH.
00:21:46 I THINK THIS LOOKS STRAIGHTFORWARD AND GOOD TO ME.
00:21:49 I DON'T HAVE ANY QUESTIONS AND I DON'T SEE ANYONE ON THE
00:21:53 ROSTER SO THANK YOU FOR YOUR PRESENTATION ON THIS MR. CLERK
00:21:57 AT THIS TIME WHEN WE INVITE A PUBLIC COMMENT ON THIS ITEM YES
00:22:01 IF THERE ARE ANY MEMBERS OF THE PUBLIC COLLECT FOR A PUBLIC
00:22:02 COMMENT AT THIS TIME YOU CAN APPROACH THE PODIUM.
00:22:05 YOU'LL BE ALLOWED TWO MINUTES. ARE THERE ANY MEMBERS PUBLIC
00:22:06 FOR PUBLIC COMMENT? THERE ARE NO PUBLIC COMMENTERS
00:22:10 AT THIS TIME. THANK YOU MR. CLERK.
00:22:12 PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME I
00:22:16 WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF
00:22:17 SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
00:22:20 >> MR. CLERK KAUFMAN WE HAVE A ROLL CALL ON THAT MOTION.
00:22:22 YES, ON THAT MOTION. VICE CHAIR CHIN CHIN I MEMBER
00:22:24 ORDER SAUTER I CHAIR DORSEY I SEE THAT MOTION IS APPROVED
00:22:32 WITHOUT OBJECTION. THANK YOU, MR. CLERK THE MOTION
00:22:35 PASSES. THANK YOU.
00:22:36 THANK YOU, MR. CLERK, CAN YOU PLEASE CALL ITEM NUMBER FOUR?
00:22:41 ITEM NUMBER FOUR IS A RESOLUTION APPROVING
00:22:42 AND AUTHORIZING THE DIRECTOR OF PROPERTY ON BEHALF OF THE
00:22:46 DEPARTMENT OF PUBLIC HEALTH TO EXECUTE A FIRST AMENDMENT TO A
00:22:47 LEASE OF REAL PROPERTY LOCATED AT 555 POLK STREET FOR MADISON
00:22:53 FAMILY TRUST AT AN ANNUAL BASE RENT OF 200 AND $2 0.5 THOUSAND
00:23:00 WITH 3% ANNUAL INCREASES FOR INITIAL TERM COMMENCING
00:23:05 RETROACTIVELY ON AUGUST 1ST 2026 UPON FULL EXECUTION OF THE
00:23:09 LEASE AMENDMENT AND EXPIRES ON JULY 31ST 2031 WITH ONE THREE
00:23:13 YEAR OPTIONS TO EXTEND AND AUTHORIZING THE DIRECTOR OF
00:23:16 PROPERTY TO EXECUTE DOCUMENTS, MAKE CERTAIN MODIFICATIONS
00:23:20 AND TAKE CERTAIN ACTIONS IN FURTHERANCE OF THE LEASE AS
00:23:23 AMENDED. >> AND THIS RESOLUTION.
00:23:27 >> THANK YOU, MR. CLERK. AND WE ARE JOINED TODAY BY
00:23:28 SALLY ORTH, DIRECTOR OF REAL ESTATE AND DAVID PORTER JOHNNY
00:23:32 FROM THE DEEP PARTMENT OF PUBLIC HEALTH BEHAVIORAL HEALTH
00:23:35 SERVICES WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE.
00:23:39 >> THE FLOOR IS YOURS. GOOD MORNING.
00:23:40 JARED DORSEY SUPERVISORS AND DE BOER UNION WITH THE DEPARTMENT
00:23:44 OF PUBLIC HEALTH. THE COMMUNITY JUSTICE SERVICE
00:23:47 CENTER SUPPORTS COMMUNITY MEMBERS EXPERIENCING SEVERE
00:23:50 MENTAL ILLNESS INVOLVED IN CRIMINAL OR THE COURT
00:23:54 SYSTEM. THE CENTER OFFERS A RANGE OF
00:23:57 PROGRAMS INCLUDING DIRECT SERVICES SUCH AS ASSISTED
00:24:01 OUTPATIENT TREATMENT AND DRUG COURT AS WELL AS ADMINISTRATIVE
00:24:03 SUPPORT FOR CIVIL COURT PROCESSES LIKE INVOLUNTARY
00:24:06 HOLDS AND THE CONSERVATIVES STEP DOWN.
00:24:09 PROCESS SERVICES EMPHASIZE RECOVERY AND STABILITY THOUGH
00:24:13 BOTH INDIVIDUAL AND GROUP PROGRAMING AND THROUGH BOTH
00:24:17 INDIVIDUAL AND GROUP PROGRAMING WITH GROUPS FOCUSED ON SKILL
00:24:21 BUILDING, THERAPEUTIC SUPPORT AND COMMUNITY INTEGRATION FOR
00:24:25 YOUR BACKGROUND SUPERVISORS I WANT TO POINT TO THE DEAL
00:24:26 POINTS WE HAD BEEN IN A LEASE WHERE WE LEASED AND SUBLEASED
00:24:35 PROPERTY 18,000FT2 AND THE COURT AT 575 POLK, ALSO KNOWN
00:24:40 AS THE COMMUNITY JUSTICE CENTER WITH OUR CLINICS ABOVE IT AT
00:24:44 555 POLK WE WERE GOING TO BIFURCATE THAT ARRANGEMENT
00:24:48 AND AND THE CITY WILL ONLY LEASE THE SPACE AT 555 POLK THE
00:24:54 COURT THE STATE HAS ENTERED THEIR OWN AGREEMENT WITH THE
00:24:59 MADISON FAMILY TRUST. >> SO AGAIN IT'S BEEN A JOINT
00:25:03 ARRANGEMENT IN OUR CONVERSATIONS WITH THE STATE
00:25:06 THERE IS POTENTIAL FOR THEM TO GO THEIR OWN DIRECTION WHEN
00:25:11 THEY BUILD THEIR OWN COURTHOUSE AGAIN SO IT REDUCES RISK TO THE
00:25:14 CITY BY HAVING US JUST RESPONSIBLE FOR THE 9000FT2
00:25:20 THAT WE HAVE ON THE SECOND FLOOR THE CURRENT CIVIC CENTER
00:25:24 LOCATION PROVIDES EASY ACCESS TO ALL THE TENDERLOIN DISTRICTS
00:25:28 SOUTH OF MARKET AND THE LOCAL CIVIC CENTER FOOTPRINT AND THE
00:25:32 DEAL IS PHENOMENAL. IT INCLUDES A RENT REDUCTION OF
00:25:36 $5 PER SQUARE FOOT AS WELL AS A NEW AIR CONDITIONER FLOORS
00:25:40 AND FINISHES. BY THAT I MEAN CARPETING
00:25:43 AND PAINT INSIDE THE SUITE. I WILL BE FOLLOWED BY DIRECTOR
00:25:46 ORTH. THANK YOU AGAIN SALLY ORTH
00:25:53 DIRECTOR OF REAL ESTATE JUST WANTED TO HIGHLIGHT A FEW OF
00:25:55 THE TERMS OF THE LEASE AMENDMENT.
00:25:57 AS DAVE MENTIONED, WE WERE ABLE TO SECURE SOME SAVINGS BUT THIS
00:26:01 IS AGAIN A FIVE YEAR LEASE EXTENSION.
00:26:02 BUT DOES PROVIDE THE CITY WITH SOME ADDITIONAL TOOLS OF AN
00:26:06 EARLY EXIT IF THAT IS SOMETHING THAT WOULD BE USEFUL TO THE
00:26:10 CITY SO WE CAN TERMINATE ANY TIME AFTER DECEMBER 2029
00:26:13 AND THEN THE BASE RENT IS NOW GOING TO BE $22.50 PER SQUARE
00:26:20 FOOT WHICH WILL RESULT IN A YEAR ONE REDUCTION FROM THE
00:26:24 CURRENT RENT OF $81,450 WHICH IS APPROXIMATELY 32.5% JUST
00:26:30 IN YEAR ONE WE'RE ABLE TO REDUCE IT BY 23.4%.
00:26:35 SO WE'RE PLEASED TO BRING THOSE SAVINGS TO THE CITY AND AGAIN
00:26:39 AS DAVE MENTIONED, THERE ARE SOME LANDLORD IMPROVEMENTS THAT
00:26:40 ARE BEING DONE THROUGH BACK CARPET AND PAINTING WHICH IS
00:26:43 NICE TO REFRESH THE SPACE FOR THE THE TEAM DOING SUCH GREAT
00:26:47 WORK. THAT CONCLUDES MY PRESENTATION.
00:26:48 HAPPY TO ANSWER ANY QUESTIONS. >> GREAT.
00:26:51 THANKS SO MUCH. AND NEXT WE'LL HEAR FROM THE
00:26:52 BLACK. >> MR. BERNARD THE FLOOR IS
00:26:55 YOURS. MORNING, NICK BERNARD FROM THE
00:26:58 BUDGET LEGISLATIVE ANALYST'S OFFICE.
00:26:59 ITEM FOUR IS A RESOLUTION THAT APPROVES THE LEASE AMENDMENT
00:27:02 BETWEEN THE CITY AND MADISON FAMILY TRUST FOR OFFICE SPACE
00:27:06 AT 555 POLK STREET. THE SITE IS USED FOR SUBSTANCE
00:27:10 USE AND MENTAL HEALTH TREATMENT PROGRAMS AND WE SUMMARIZE THE
00:27:13 LEASE TERMS ON PAGES SEVEN AND EIGHT OF OUR REPORT
00:27:14 AND THEN ON PAGE NINE YOU CAN SEE OUR PROJECTED COST OF THIS
00:27:20 LEASE IS ABOUT $2.9 MILLION OVER THE ENTIRE EIGHT YEAR
00:27:24 TERM. THOSE COSTS ARE FUNDED BY THE
00:27:25 GENERAL FUND AND WE RECOMMEND APPROVAL OF ITEM FOUR.
00:27:28 THANK YOU MR. MINARD AND I WILL SAY I DO APPRECIATE THE THE
00:27:34 CITY'S COMMITMENT TO THE TO THE AREA TO THE NEIGHBORHOOD.
00:27:38 THIS ISN'T MY DISTRICT STRICTLY SPEAKING AND I KNOW THAT UNDER
00:27:40 THE LEAST UNDER THE CIVIC CENTER AREA AS DEFINED UNDER
00:27:43 THE GENERAL PLAN IT'S NOT TECHNICALLY THE CIVIC CENTER
00:27:46 AREA BUT I THINK IT'S THE CIVIC CENTER SMALL AREA THAT IS STILL
00:27:50 HELPS THE NEIGHBORHOODS AND THE AREA.
00:27:54 I'M A BIG BELIEVER IN THAT THE VISION OF THE CIVIC CENTER AREA
00:27:57 PLAN IS THAT GOVERNMENT SHOULD BE IN THE CIVIC CENTER
00:27:59 MID-MARKET AREA BY DAY AND THEN WE HAVE A VIBRANT CULTURAL
00:28:05 ACTIVATION BY NIGHT. SO I APPRECIATE EVERYBODY'S
00:28:09 WORK ON THIS. I'M HAPPY TO SUPPORT IT.
00:28:10 I DON'T SEE ANYONE ON THE ROSTER WITH QUESTIONS OR
00:28:13 COMMENTS SO AT THIS TIME I THANK YOU FOR YOUR PRESENTATION
00:28:15 AND WHY DON'T WE INVITE A PUBLIC COMMENT?
00:28:17 >> YES IF THERE ARE ANY MEMBERS OF THE PUBLIC BY PUBLIC COMMENT
00:28:20 ON THIS ITEM YOU CAN LINE UP AT THIS TIME.
00:28:23 ARE THERE ANY MEMBERS PUBLIC FOR PUBLIC COMMENT?
00:28:24 THERE ARE NO PUBLIC COMMENTERS ON THIS MATTER.
00:28:27 THANK YOU MR. CLARKE PUBLIC COMMENT ON THIS ITEM IS NOW
00:28:31 CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO
00:28:35 THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
00:28:36 RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
00:28:39 CALL ON THAT MOTION? >> YES, ON THAT MOTION.
00:28:41 VICE CHAIR CHIN CHIN I MEMBER SAUTER SAUTER I CHAIR DORSI ALL
00:28:46 RIGHT. OR SEE THAT MOTION IS ADOPTED
00:28:49 WITHOUT OBJECTION. >> THANK YOU MR. CLERK THE
00:28:51 MOTION PASSES AND THANK YOU EVERYBODY FOR THE PRESENTATION
00:28:54 AND FOR YOUR GREAT WORK. MR. CLERK, PLEASE CALL ITEM
00:28:57 NUMBER FIVE. >> ITEM NUMBER FIVE IS A
00:28:59 RESOLUTION APPROVING AMENDMENT NUMBER FOUR TO THE AGREEMENT
00:29:02 BETWEEN THE CITY ACTING THROUGH THE OFFICE OF CONTRACT
00:29:05 ADMINISTRATION AND HOLLIDAY INC FOR THE SUPPLY OF WASTEWATER
00:29:09 TREATMENT POLYMERS TO INCREASE THEIR AGREEMENT NOT TO EXCEED
00:29:13 AMOUNT OF APPROXIMATELY $12 MILLION WITH NO CHANGE TO THE
00:29:16 TERM OF FEBRUARY FIRST 2021 THROUGH JANUARY 31ST, 2028
00:29:22 AND TO AUTHORIZE THE OFFICE OF CONTRACT ADMINISTRATION TO MAKE
00:29:26 NON-MATERIAL CHANGES TO THE AMENDMENT PRIOR TO THE FINAL
00:29:27 EXECUTION BY ALL PARTIES THAT DO NOT MATERIALLY OR INCREASED
00:29:31 OBLIGATION OR LIABILITIES TO THE CITY AND ARE NECESSARY OR
00:29:35 ADVISABLE TO EFFECTUATE THE PURPOSE OF THE AGREEMENT.
00:29:39 >> THANK YOU, MR. CLERK. WE ARE JOINED TODAY BY MS.
00:29:42 ANGELA YIP, DIRECTOR OF LEGISLATIVE AND PUBLIC AFFAIRS
00:29:43 FOR THE CITY ADMINISTRATORS OFFICE.
00:29:46 MISS YOU. WE WELCOME YOU TO THE BUDGET
00:29:47 AND FINANCE COMMITTEE. THE FLOOR IS YOURS.
00:29:50 >> THANK YOU SO MUCH. CHAIR DARCY AND COMMITTEE
00:29:51 MEMBERS ANGELA APPEAR ON BEHALF OF THE OFFICE OF CONTRACT
00:29:55 ADMINISTRATION AND THE RESOLUTION BEFORE YOU WOULD
00:29:56 AUTHORIZE OKAY TO AMEND OUR TERM CONTRACT WITH PAUL DINE
00:29:59 INC. IT WOULD INCREASE THE NOT TO EXCEED AMOUNT FROM 9.9
00:30:03 MILLION TO 12.2 12.06 MILLION WITH ALL OTHER TERMS UNCHANGED
00:30:08 THIS PARTICULAR TERM CONTRACT SUPPLIES THE PUC WITH WITH
00:30:12 WASTEWATER TREATMENT POLYMERS WHICH ARE ESSENTIAL CHEMICALS
00:30:16 USED IN THE PUC IS WASTEWATER TREATMENT FACILITIES.
00:30:20 THIS PARTICULAR CONTRACT WAS FIRST EXECUTED FOLLOWING A
00:30:21 COMPETITIVE SOLICITATION PROCESS IN FEBRUARY 2021
00:30:25 AND HAS SINCE THEN BEEN AMENDED THREE TIMES INCREASING THE NOT
00:30:28 TO EXCEED AMOUNT EXTENDING THE TERM LENGTH AND UPDATED TERMS
00:30:31 AND PRICING THIS FOURTH AMENDMENT IS NECESSARY TO APPLY
00:30:35 THE PUC WITH ENOUGH POLYMERS TO MEET INCREASED PROCESSING
00:30:39 DEMAND AND OPERATIONAL NEEDS AT THE SOUTHEAST AND OCEANSIDE
00:30:40 WASTEWATER TREATMENT FACILITIES HERE IN THE CITY.
00:30:44 WE ARE AVAILABLE SHOULD YOU HAVE ANY QUESTIONS
00:30:47 AND RESPECTFULLY REQUEST YOUR APPROVAL.
00:30:48 >> THANK YOU. MISS YOU AND WE WILL HAVE A
00:30:51 BUDGET AND LEGISLATIVE ANALYST ON THIS MR. BERNARD THE FLOOR
00:30:54 IS YOURS. >> ITEM FIVE IS A RESOLUTION
00:30:55 APPROVING AN AMENDMENT TO AN OCA CONTRACT WITH POLY DINE INC
00:31:02 . THE POLY SELLS THE CITY
00:31:03 WASTEWATER POLYMERS WHICH ARE USED IN THE WASTEWATER
00:31:05 TREATMENT PROCESS. ON PAGE 13 OF THE REPORT WE
00:31:09 SUMMARIZE THE THE NEED TO CHANGE THE CONTRACT VALUE GOING
00:31:15 FROM 9.9 TO $12.1 MILLION. THIS IS BASED ON HISTORICAL
00:31:18 SPENDING ON THE CONTRACT AS WELL AS AND ANTICIPATED
00:31:22 INCREASE IN THE CAPACITY OF THE SOUTHEAST SEWER TREATMENT
00:31:25 PLANT. WE RECOMMEND APPROVAL OF ITEM
00:31:28 FOR FIVE. OKAY.
00:31:32 THANK YOU. I DON'T SEE ANY COLLEAGUES ON
00:31:33 THE ROSTER WITH QUESTIONS OR COMMENTS.
00:31:36 I THANK YOU FOR YOUR PRESENTATION AND MR. CLERK AT
00:31:37 THIS TIME WHY DON'T WE INVITE A PUBLIC COMMENT?
00:31:40 YES MEMBERS OF THE PUBLIC WISH TO COMMENT ON THIS MATTER CAN
00:31:41 APPROACH THE PODIUM AT THIS TIME.
00:31:44 ARE THERE ANY MEMBERS THE PUBLIC WHO LIKE TO MAKE PUBLIC
00:31:47 COMMENT? >> THERE ARE NO COMMENTERS ON
00:31:49 THIS MATTER. >> THANK YOU MR. FOR PUBLIC
00:31:52 COMMENT ON THIS ITEM IS NOW CLOSED AND SEE NO FURTHER
00:31:55 QUESTIONS OR COMMENTS. >> I WOULD MOVE TO FORWARD THIS
00:31:59 ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
00:32:02 RECOMMENDATION. >> MR. CLERK MAY WE HAVE A ROLL
00:32:03 CALL ON THAT MOTION? YES, ON THAT MOTION.
00:32:07 VICE CHAIR CHEN CHEN I READ MR. SOUDER I CHAIR DORSEY DORSEY I
00:32:11 THAT MOTION PASSES WITHOUT OBJECTION.
00:32:15 >> THANK YOU, MR. CLERK THE MOTION PASSES.
00:32:18 >> CAN WE PLEASE CALL ITEM NUMBER SIX?
00:32:21 ITEM NUMBER SIX IS ORDINANCE AUTHORIZING THE ISSUANCE
00:32:22 AND SALE BY THE PUBLIC UTILITIES COMMISSION OF TAX
00:32:26 EXEMPT TECH OR TAXABLE WATER REVENUE BONDS AND OTHER FORMS
00:32:30 OF INDEBTEDNESS IN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
00:32:34 APPROXIMATELY 492.8 MILLION TAX EXEMPT OR TAX TAXABLE
00:32:40 WASTEWATER REVENUE BONDS AND OTHER FORMS OF INDEBTEDNESS
00:32:42 IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
00:32:47 APPROXIMATELY 224.6 MILLION AND TAX EXEMPT OR TAXABLE POWER
00:32:51 REVENUE BONDS AND OTHER AMOUNT OR OTHER FORMS OF INDEBTEDNESS
00:32:55 IN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED 12.6 MILLION TO
00:32:59 PREPAY EACH ENTERPRISE ALLOCABLE SHARE OF BASE RENTAL
00:33:02 PAYMENTS UNDER THE PROJECT LEASE RELATED TO THE FINANCE.
00:33:06 THE COSTS OF THE COMMISSION'S HEADQUARTERS AT 525 GOLDEN GATE
00:33:10 AVENUE AND RATIFYING PREVIOUS ACTIONS TAKEN IN CONNECTION
00:33:14 THEREWITH. >> THANK YOU, MR. CLERK.
00:33:17 >> AND WE ARE JOINED TODAY BY MR. NICHOLAS KHALAF FROM THE
00:33:19 CAPITAL FINANCE TEAM AS THE CAPITAL FINANCE DIRECTOR FOR
00:33:22 THE SAN FRANCISCO PUBLIC UTILITIES COMMISSION.
00:33:25 MR. SCARLETT, WE WELCOME YOU TO THE BUDGET AND FINANCE
00:33:27 COMMITTEE. >> THE FLOOR IS YOURS.
00:33:29 THANK YOU VERY MUCH, CHAIR DAWSON AND THANK YOU COMMITTEE
00:33:30 MEMBERS. I'M ALSO JOINED HERE TODAY BY
00:33:33 MEMBERS OF NOT ONLY OUR POLICY AND GOVERNMENT AFFAIRS TEAM BUT
00:33:37 ALSO MEMBERS OF OUR CAPITAL FINANCE TEAM AS WELL AS
00:33:41 REPRESENTATIVES FROM THE COMPTROLLER OFFICE OF PUBLIC
00:33:45 FINANCE. >> THAT WAS QUITE A MOUTHFUL
00:33:49 IN TERMS OF THIS AGENDA ITEM BUT WHAT WE'RE TRYING TO
00:33:53 ACCOMPLISH TODAY IS ACTUALLY QUITE SIMPLE.
00:33:56 IN ADDITION TO BORROWING NEW FUNDS, OUR TEAM CONTINUOUSLY
00:34:00 MONITORS OPPORTUNITIES TO NOT ONLY SAVE MONEY BUT ALSO TO
00:34:04 REDUCE RISK. AND SINCE LAST YEAR OUR
00:34:07 COMMISSION HAS BEEN WORKING ON REDUCING A PARTICULAR KIND OF
00:34:11 RISK. THIS ITEM WENT TO OUR
00:34:14 COMMISSION ON JUNE 9TH AND HAS BEEN REFERRED TO BY THE U.S.
00:34:19 COMMISSION SPECIFICALLY IN 2009 AND 2010 UNDER THE OBAMA
00:34:26 ADMINISTRATION THE FEDERAL GOVERNMENT MADE TAXABLE
00:34:30 BORROWING AVAILABLE TO MUNICIPAL ISSUERS IN WHICH
00:34:36 INSTEAD OF HAVING A TAX EXEMPTION THE FEDERAL
00:34:38 GOVERNMENT WOULD PAY A SUBSIDY .
00:34:43 THAT SUBSIDY HAS BEEN COMPROMISED SINCE 2013 DUE TO
00:34:50 SOMETHING CALLED SEQUESTRATION. BECAUSE OF SUBSEQUENT
00:34:53 LEGISLATION THAT WAS PASSED MORE PARTICULARLY IN RECENT
00:34:57 YEARS THE SUBSIDY HAS BEEN UNDER THREAT.
00:35:04 >> LAST YEAR THE WAYS AND MEANS COMMITTEE PROPOSED ELIMINATE
00:35:09 THE SUBSIDY AS PART OF THE SO CALLED ONE BIG BEAUTIFUL BILL.
00:35:16 THE MUNICIPAL FINANCE INDUSTRY WAS ABLE TO STAVE THAT OFF
00:35:20 AND AND DEFEND LOCAL GOVERNMENT FROM THAT CUT.
00:35:24 BUT CURRENTLY BECAUSE OF SUBSEQUENT SEQUESTRATION
00:35:28 MEASURES, CONGRESS NEEDS TO TAKE PROACTIVE MEASURES EACH
00:35:35 YEAR TO WAIVE SUBSEQUENT SEQUESTRATION AND IN THE WAKE
00:35:40 OF ARPA. AND SO IN LIGHT OF THAT,
00:35:43 IN LIGHT OF SOME OF THE DYSFUNCTION IN CONGRESS, WE
00:35:51 HAVE BEEN ELIMINATING THAT EXPOSURE.
00:35:54 WHILE WE CAN DO THAT WITH SAVINGS.
00:35:55 SO WE HAD ISSUED $1.4 BILLION OF BUILD AMERICA BONDS IN 2009
00:36:04 2010. WE'VE ALREADY REFUNDED HALF
00:36:05 THAT. WE'VE REFUNDED ALL OF THE WATER
00:36:09 BUILD AMERICA BONDS LAST YEAR. >> JUST IN AUGUST WE WERE ABLE
00:36:15 TO SUCCESSFULLY REFUND THE WASTEWATER BONDS THAT WERE
00:36:19 ORIGINALLY INCLUDED IN THIS ORDINANCE AND NO LONGER NEED TO
00:36:23 REFUND THOSE. BUT WHAT WE DO STILL HAVE
00:36:27 OUTSTANDING ARE 29 CERTIFICATES OF PARTICIPATION THAT THE
00:36:31 GENERAL FUND ISSUED ON BEHALF OF THE SFP U.S. TWO FOR OUR 5
00:36:40 TO 5 GOLDEN GATE BUILDING. AND WE WOULD PROPOSE TO PREPAY
00:36:44 THOSE THAT WILL FREE UP FUNDS THAT WERE SET ASIDE AS A DEBT
00:36:52 SERVICE RESERVE FUND THAT WILL ALLOW US TO REDUCE THE SIZE OF
00:36:53 THE BORROWING. AND CURRENTLY WE CAN DO THAT
00:36:57 WITH SAVINGS. NOW I WOULD CAUTION THAT
00:37:01 IN JUST RECENT WEEKS DUE TO THE IRAN WAR THE BOND MARKET HAS
00:37:05 EXPERIENCED INCREASED INTEREST RATES.
00:37:08 WE WILL CONTINUE TO MONITOR THIS.
00:37:11 WE KNOW THAT THIS PROCESS WILL TAKE US THROUGH LATE, LATE FALL
00:37:18 . AND SO THE NUMBERS THAT WE'VE
00:37:19 SHOWN YOU HERE IN THIS PRESENTATION HAVE ALREADY
00:37:23 CHANGED AND MAY MAY CHANGE FURTHER.
00:37:27 BUT IT WOULD BE OUR INTENTION TO ONLY REFUND THESE BONDS TO
00:37:31 THE EXTENT WE HAVE SAVINGS. WE ALSO HAVE INCLUDED THE THE
00:37:38 THIRD OF THREE SERIES OF WATER BONDS THAT STILL REMAINED
00:37:42 OUTSTANDING FOR BUILD AMERICA BONDS.
00:37:45 THOSE DO NOT CURRENTLY PROVIDE SAVINGS BUT WE HAVE INCLUDED
00:37:49 THOSE HERE SO THAT WE HAVE THE FLEXIBILITY THAT AS RATES
00:37:53 CHANGE WHETHER IT'S LATER THIS YEAR OR NEXT YEAR WE WOULD HAVE
00:37:57 THE OPPORTUNITY TO REFUND THOSE AND MOVE QUICKLY TO DO SO.
00:38:01 WHAT IS UNUSUAL ABOUT THESE BUILD AMERICA BONDS IS BECAUSE
00:38:04 THEY WERE TAXABLE AND HAVE WHAT IS CALLED A MAKE HOLE
00:38:09 PROVISION. WE THEY TRADITIONALLY HAVE NOT
00:38:12 BEEN ABLE TO BE REFUNDED. BUT IN RECENT YEARS DUE TO A
00:38:17 SUPREME COURT RULING LOCAL GOVERNMENT STATE GOVERNMENTS
00:38:21 ACROSS THE COUNTRY HAVE BEEN REFUNDING THESE AS WE HAVE
00:38:25 THROUGH A CORPORATE AND THAT IS LOWER COSTS.
00:38:29 SO AGAIN WE WOULD ONLY PROCEED WITH THIS TO THE EXTENT THAT
00:38:33 WE'RE ABLE TO PRODUCE SAVINGS AND REDUCE RISK AND WITH THAT
00:38:39 WE WE APPRECIATE THE WORK OF THE BUDGET ANALYSTS AT THE
00:38:47 LEGISLATIVE ANALYSTS AND THEY WE UNDERSTAND THEY HAVE
00:38:51 PROPOSED A CHANGE TO ELIMINATE THE WASTEWATER BONDS THAT WERE
00:38:55 ORIGINALLY INCLUDED IN THIS MEASURE.
00:38:58 WE WOULD CONCUR WITH THAT PROPOSAL.
00:39:02 >> OKAY. OKAY.
00:39:02 JUST FOR MY UNDERSTANDING, THE BUILD AMERICA BONDS ARE THAT
00:39:07 WAS IT ALL OBAMA ERA? >> YES.
00:39:10 AND THEN ARPA IS THE MORE IT WAS THE POST COVID.
00:39:14 >> YES. SO THE BUILD AMERICA BONDS WERE
00:39:18 HIGHLY ATTRACTIVE. I WAS NOT HERE AT THE CITY AT
00:39:22 THE TIME BUT ISSUERS ALL ACROSS THE COUNTRY TOOK ADVANTAGE.
00:39:26 IT WAS VERY ATTRACTIVE TO BE ABLE TO ISSUE BONDS WITH THIS
00:39:32 SUBSIDY. UNFORTUNATELY THE FEDERAL
00:39:34 GOVERNMENT HAS NOT HONORED ITS COMMITMENT TO PAY THAT FULL 35%
00:39:40 SUBSIDY. IT'S BEEN REDUCED TO 33%.
00:39:43 AND THERE ARE THESE ADDITIONAL THREATS PARTICULARLY TO THE
00:39:47 EXTENT THAT CONGRESS DOESN'T AGREE TO A WAIVER WHICH UNDER
00:39:53 THE CURRENT MAJORITIES IS A QUESTION MARK.
00:39:57 OKAY. >> NEXT WE'LL HEAR FROM THE
00:39:58 BUDGET AND LEGISLATIVE ANALYST'S MISMANAGEMENT.
00:40:01 >> THE FLOOR IS YOURS. ITEM SIX IS A PROPOSED
00:40:03 ORDINANCE THAT WOULD AUTHORIZE THE ISSUANCE AND SALE OF WATER
00:40:07 REVENUE BONDS WASTEWATER REVENUE BONDS AND POWER REVENUE
00:40:10 BONDS. IT WOULD ALSO AUTHORIZE
00:40:10 ISSUANCE OF OTHER FORMS OF INDEBTEDNESS INCLUDING
00:40:14 COMMERCIAL PAPER. >> THE PROPOSED DEBT
00:40:17 AUTHORIZATION WOULD ALLOW THE SFP U.S. TO PREPAY A REFUND
00:40:21 PREVIOUSLY ISSUED TAXABLE DEBT UNDER THE BUILD AMERICA BONDS
00:40:24 PROGRAM TO ACHIEVE DEBT SERVICE SAVINGS INCLUDING 115 MILLION
00:40:28 AND OUTSTANDING CERTIFICATES OF PARTICIPATION THAT WERE USED TO
00:40:32 FINANCE A PORTION OF THE PUC HEADQUARTERS AT 55 GOLDEN GATE
00:40:35 AND ALSO 351 MILLION IN OUTSTANDING WATER REVENUE
00:40:39 BONDS. >> THE NEW HEADQUARTERS DEBT
00:40:42 WOULD BASED ON I GUESS THE ESTIMATES IN OUR REPORT WHICH I
00:40:46 UNDERSTAND ARE ALREADY OUTDATED BUT THEY WOULD HAVE A TO THE
00:40:47 HEADQUARTERS DEBT WOULD HAVE A TRUE INTEREST COST OF 3.86%
00:40:52 AND TOTAL DEBT SERVICE PAYMENTS OF APPROXIMATELY 140 MILLION.
00:40:55 THE WATER REFUNDING DEBT IS ESTIMATED TO HAVE A TRUE
00:40:59 INTEREST COSTS OF 4.51 PERCENT. >> IT HAS A LONGER TERM
00:41:03 AND TOTAL DEBT SERVICE PAYMENTS OF APPROXIMATELY 626 MILLION.
00:41:06 WHAT'S UNUSUAL ABOUT THIS TRANSACTION IS THAT NEITHER
00:41:11 CURRENTLY MEETS THE PUC'S DEBT POLICY REQUIREMENT THAT A
00:41:15 REFUNDING PRODUCES NET PRESENT VALUE SAVINGS OF AT LEAST 3%.
00:41:19 THE PUC COMMISSION HAS WAIVED THIS REQUIREMENT TO REDUCE THE
00:41:23 RISK TO THE PUC THAT THE FEDERAL SUBSIDY IS FURTHER
00:41:24 REDUCED OR ELIMINATED. AS MENTIONED, THE PUC ONLY
00:41:28 PLANS TO PROCEED WITH THE TRANSACTIONS IF THEY PRODUCE
00:41:31 DEBT SERVICE SAVINGS. CURRENTLY THE HEADQUARTERS
00:41:35 TRANSACTION IS ESTIMATED TO GENERATE CASH FLOW SAVINGS OF
00:41:38 ABOUT 11 MILLION AT THE WATER. REFUNDING CURRENTLY PRODUCES AN
00:41:42 ESTIMATED CASH FLOW LOSS OF ABOUT 27 MILLION.
00:41:45 BASED ON CURRENT MARKET CONDITIONS AS WE SHOW
00:41:49 IN EXHIBIT FIVE ON PAGE 23 OF OUR REPORTS WE HAVE A
00:41:52 RECOMMENDATION TO AMEND THE ORDINANCE TO REDUCE THE
00:41:54 ISSUANCE AND SALE AUTHORIZATION FOR WASTEWATER ENTERPRISE DEBT
00:41:59 FROM 224,570,000 TO 24,570,000 AS MENTIONED BY THE PUC THAT
00:42:05 ORDINANCE INITIALLY CONTEMPLATED REFUNDING A THIRD
00:42:09 TRANSACTION THROUGH THIS ORDINANCE AND THEY WERE RIGHT
00:42:13 THEY WERE ABLE TO PROCEED WITH THAT TRANSACTION WITHOUT THIS
00:42:16 AUTHORIZATION. WE RECOMMEND APPROVAL OF ITEM
00:42:18 SIX AS AMENDED. >> GREAT.
00:42:19 OKAY. THANK YOU.
00:42:22 I DO WANT TO PUT THIS REFINANCING IN THE BROADER
00:42:24 CONTEXT OF WHAT OUR RATE PAYERS ARE EXPERIENCING NOW.
00:42:30 WATER AND SEWER BILLS HAVE CONTINUED TO RISE AND FOR MANY
00:42:32 SAN FRANCISCANS THERE ISN'T A LOT OF RELIEF IN SIGHT.
00:42:35 RATE PAYERS ARE BEING ASKED TO ABSORB HIGHER COSTS AND AT THE
00:42:39 SAME TIME HOUSEHOLDS AND SMALL BUSINESSES ARE DEALING WITH
00:42:43 ALREADY CHALLENGING ECONOMIC ISSUES.
00:42:46 >> I UNDERSTAND THAT AS A HAS SIGNIFICANT INFRASTRUCTURE
00:42:50 NEEDS AND FINANCIAL OBLIGATIONS AND OBVIOUSLY THAT'S A LOT OF
00:42:54 THE WORK THAT WE DO HERE ON THE BUDGET COMMITTEE.
00:42:57 BUT THE REFINANCING EXISTING DEBT CAN BE ONE TOOL FOR
00:43:00 MANAGING THOSE COSTS. >> BUT EVERY FINANCING DECISION
00:43:02 MATTERS WHEN DEBT SERVICE IS ULTIMATELY SUPPORTED BY
00:43:05 ENTERPRISE REVENUE AND RATE PAYERS.
00:43:08 >> SO I THINK IT'S IMPORTANT THAT WE LOOK BEYOND WHETHER
00:43:09 THIS PARTICULAR TRANSACTION WORKS FINANCIALLY
00:43:12 AND UNDERSTAND HOW IT FITS INTO THE COMMISSION'S LARGER EFFORT
00:43:16 TO MANAGE COSTS AND END RESPOND TO THE CONCERNS OF SAN
00:43:19 FRANCISCANS ABOUT CHALLENGES TOO WITH REGARD TO
00:43:23 AFFORDABILITY. >> SO WITH NOT MUCH RELEASE
00:43:27 RELIEF IN SIGHT FOR RATE PAYERS, HOW DOES THIS
00:43:30 REFINANCING FIT INTO SAP'S BROADER STRATEGY TO CONTROL
00:43:32 DEBT SERVICE COSTS? AND IF YOU COULD HELP US
00:43:35 UNDERSTAND HOW HOW HOW WILL WE KEEP FUTURE RATE INCREASES AS
00:43:38 LOW AS POSSIBLE? THANK YOU FOR THE QUESTION.
00:43:42 FOR THE PIECES OF CAPITAL FINANCE TEAM IS CONTINUOUSLY
00:43:48 EVALUATING REFINANCING OPPORTUNITIES.
00:43:52 WE HAD THE OPPORTUNITY IN AUGUST TO CLOSE A REFUND
00:43:56 IN FOUR WATER BONDS THAT UNDER EXISTING AUTHORIZED ASIAN WE
00:44:01 ALSO WERE ABLE TO ISSUE A SMALLER INTERIM FINANCING FOR
00:44:05 WATER AND WASTEWATER THAT ALLOWED US TO DEFER THE NEED
00:44:13 FOR BORROWING A PREVIOUSLY AUTHORIZED BONDS.
00:44:17 SO THIS PARTICULAR TRANSACTION THAT DOES REQUIRE ADDITIONAL
00:44:21 AUTHORIZATION FROM YOU IS PART OF A BROADER STRATEGY TO FIND
00:44:25 SAVINGS THROUGH REFINANCING OPPORTUNITIES.
00:44:32 >> OKAY. OKAY.
00:44:33 THANKS SO MUCH. AND I SEE EVERYONE ON THE
00:44:36 ROSTER WITH QUESTIONS OR COMMENTS AND I DON'T HAVE ANY
00:44:39 MORE SO THANK YOU FOR YOUR PRESENTATION AND MR. KIRK MAY
00:44:41 WE INVITE PUBLIC COMMENT ON THIS ITEM?
00:44:43 YES, MEMBERS OF THE PUBLIC WISHED FOR MY COMMENT ON THIS
00:44:44 MATTER CAN APPROACH THE PODIUM AT THIS TIME.
00:44:48 ARE THERE ANY MEMBERS PUBLIC VIA PUBLIC COMMENT?
00:44:51 >> THERE ARE NO PUBLIC COMMENTERS.
00:44:52 THANK YOU MR. CLARKE PUBLIC COMMENT ON THIS ITEM IS NOW
00:44:55 CLOSED. THANK YOU FOR YOUR PRESENTATION
00:44:56 AND AT THIS TIME I WOULD MOVE TO AMEND THIS ITEM AS THE
00:45:03 BUDGET AND LEGISLATIVE ANALYST RECOMMENDED TO REDUCE THE
00:45:07 ISSUANCE AND SALE OF AUTHORIZATION FOR WASTEWATER
00:45:10 ENTERPRISE DEBT FROM 224,570,000 TO 24,570,000
00:45:18 AND THEN APPROVE THE ORDINANCE AS AMENDED.
00:45:23 MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:45:24 YES. AND THE MOTION TO AMEND AND TO
00:45:26 RECOMMEND AS AMENDED ON THAT MOTION BY SIR CHEN CHEN I
00:45:30 REMEMBER SENATOR SAUTER I HEAR DORSEY I, DORSEY I THE MOTION
00:45:38 PASSES WITHOUT OBJECTION. >> THANK YOU MR. CLERK.
00:45:39 THE MOTION PASSES. THANKS FOR YOUR PRESENTATION
00:45:42 AND CONGRATULATIONS MR. CLERK ON PLEASE CALL ITEMS SEVEN
00:45:46 THROUGH TEN TOGETHER. >> YES.
00:45:47 ITEM NUMBER SEVEN THROUGH TEN ARE RESOLUTIONS APPROVING
00:45:50 AND AUTHORIZING THE GENERAL MANAGER OF THE PUBLIC UTILITIES
00:45:53 COMMISSION TO EXECUTE CONTRACT NUMBERS PR O03 36. THROUGH D.
00:46:00 SPECIALIZED AND TECHNICAL AS NEEDED SERVICES WITH THE
00:46:04 FOLLOWING TO ASSIST THE HETCH HETCHY WATER AND POWER DIVISION
00:46:07 WITH AS NEEDED OPERATIONS AND MAINTENANCE SUPPORT
00:46:08 INCLUDING ASSET MANAGEMENT SERVICES, CAPITAL PLANNING
00:46:11 ENGINEERING SERVICES THAT ARE LIMITED TO CONDITION CONDITION
00:46:16 ASSESSMENTS, NEEDS ASSESSMENTS AND CAPITAL PLAN DEVELOPMENT
00:46:19 FOR THE WATER ENTERPRISE FOR ASSETS SPANNING FROM
00:46:23 O'SHAUGHNESSY RESERVOIR IN YOSEMITE NATIONAL PARK TO
00:46:27 NEWARK AND OR THE SNOW IN THE SAN FRANCISCO BAY AREA EACH FOR
00:46:31 AN AMOUNT NOT TO EXCEED 20 MILLION FOR A PERIOD OF FIVE
00:46:34 YEARS BEGINNING JANUARY 2027 THROUGH DECEMBER 2032 PURSUANT
00:46:39 TO THE CHARTER. ITEM NUMBER SEVEN IS WITH STACK
00:46:43 TEC CONSULTING INC. I NUMBER EIGHT ALSO A AECOM TECHNICAL
00:46:48 SERVICES ITEM NINE IS WITH JACOBS ENGINEERING GROUP
00:46:54 AND ITEM NUMBER TEN IS WITH LEE INCORPORATED.
00:46:55 >> OKAY. THANK YOU MR. CLERK.
00:46:58 AND WE ARE JOINED BY MRS. CHERYL SPERRY WHO SERVES AS THE
00:47:02 BUSINESS SERVICES MANAGER FOR HETCH HETCHY WATER AND POWER
00:47:05 FOR OUR SFP. >> YOU SEE THIS VERY WE WELCOME
00:47:06 YOU TO THE BUDGET AND FINANCE COMMITTEE.
00:47:09 >> THE FLOOR IS YOURS. THANK YOU.
00:47:11 GOOD MORNING CHAIR DORSEY AND COMMITTEE MEMBERS.
00:47:13 I AM HERE TO REQUEST APPROVAL OF CONTRACTS PRO 3368 THROUGH
00:47:19 D. SPECIALIZED AND TECHNICAL AS
00:47:20 NEEDED SERVICES FOR OPERATIONS AND MAINTENANCE SUPPORT OF THE
00:47:24 HAGERTY WATER AND POWER SYSTEM .
00:47:27 LET ME START WITH A LITTLE BIT ABOUT THE SYSTEM ITSELF.
00:47:28 WE SERVE WATER TO 2.7 MILLION CUSTOMERS IN SAN FRANCISCO
00:47:35 AND THE WIDER BAY AREA. WE HAVE 400MW OF CLEAN
00:47:39 HYDROPOWER CAPACITY CAPACITY GENERATING 1.5GW OF ELECTRICITY
00:47:43 ANNUALLY. THE TERRITORY OF THE SYSTEM
00:47:47 COVERS OVER 150 LINEAR MILES ALMOST SPANNING THE ENTIRE
00:47:53 STATE OF CALIFORNIA. THE SYSTEM IS COMPRISED OF
00:47:57 APPROXIMATELY 15 BILLION IN ASSETS ASSETS ON AVERAGE ARE
00:48:01 140% BEYOND THEIR USEFUL LIFE. >> AND THE SFP YOU SEE HAS BEEN
00:48:05 INCREASING CAPITAL INVESTMENTS IN THIS CRITICAL SYSTEM.
00:48:09 THE PRIOR TEN YEAR CAPITAL PLAN WAS 770 MILLION.
00:48:13 THE CURRENTLY APPROVED CAPITAL PLAN IS 1.8 BILLION.
00:48:19 >> PRO 336 EIGHT THROUGH D WILL PROVIDE AS NEEDED TECHNICAL
00:48:23 AND SPECIALIZED SERVICES TO ASSIST THE PUC WITH OPERATIONS
00:48:28 AND MAINTENANCE OF THE HEDGE TO WATER AND POWER SYSTEM
00:48:32 INCLUDING ASSET MANAGEMENT SUPPORT SERVICES ENGINEERING
00:48:35 SERVICES LIMITED TO CONDITION AND NEEDS ASSESSMENTS CAPITAL
00:48:39 PLAN DEVELOPMENT SERVICES. THESE SERVICES ARE CURRENTLY
00:48:43 BEING PROVIDED UNDER PRO2318 THROUGH D.
00:48:46 >> THOSE ARE THE EXISTING CONTRACT OUTS.
00:48:50 I WILL NOTE THAT THERE IS OVERLAP BETWEEN THE EXISTING
00:48:54 CONTRACT AND THE NEW CONTRACT TO ENSURE CONTINUITY OF
00:48:58 SERVICES. >> SO SOME EXAMPLES OF CONTRACT
00:49:02 SCOPE. SO THE CONTRACT PROVIDES WATER
00:49:06 SERVICES, POWER SERVICES AND OPERATIONS AND MAINTENANCE
00:49:10 SERVICES FOR THE SYSTEM. AN EXAMPLE OF WATER SERVICES
00:49:13 INCLUDE DAM CONDITION ASSESSMENTS ON THE POWER SIDE.
00:49:18 >> AN EXAMPLE INCLUDES A TRANSMISSION LINE CONDITION
00:49:22 ASSESSMENTS AND NEEDS ASSESSMENTS AND ON THE
00:49:23 OPERATIONS AND MAINTENANCE SIDE AN EXAMPLE OF THE SERVICES
00:49:27 PROVIDED IS ENVIRONMENTAL BIO AUDITS OF THE HEAD JETTY RIGHT
00:49:31 AWAY WHICH ARE USED FOR A BASELINE FOR OUR VEGETATION
00:49:35 MANAGEMENT PROGRAM INCLUDING WILDFIRE MITIGATION.
00:49:41 >> REGARDING THE FINANCIAL CONTEXT FOR THIS CONTRACT, THE
00:49:46 CONTRACT IS FUNDED FROM OUR CAPITAL PROGRAM.
00:49:49 OUR OPERATING AND MAINTENANCE PROGRAM AND REGULAR TARY
00:49:54 PROGRAMS WHICH IS PROGRAMMATIC FUNDING ULTIMATELY WATER
00:49:57 AND POWER RATE PAYERS. >> THIS CONTRACT REPRESENTS
00:50:02 LESS THAN 6% OF TOTAL AND ANNUAL EXPENDITURES.
00:50:06 >> GIVEN ALL OF THOSE FUNDING SOURCES.
00:50:07 THE CONTRACT CAPACITY IS 16 MILLION PER YEAR.
00:50:10 >> HISTORICALLY OUR CONTRACT USAGE IS APPROXIMATELY 11
00:50:17 MILLION PER YEAR. THE ADDITIONAL CAPACITY OF 5
00:50:20 MILLION IS TO ACCOUNT FOR CAPITAL PLAN GROWTH PLUS
00:50:22 INFLATION. WE'RE ASKING THE BOARD OF
00:50:27 SUPERVISORS TO AWARD PRO 3368 THROUGH D TO THE FOUR HIGHEST
00:50:31 RANKED PROPOSAL VAS STANTEC CONSULTING SERVICES JACOBS
00:50:35 ENGINEERING GROUP A COM TECHNICAL SERVICES AND LEE INC.
00:50:42 THE NOT TO EXCEED AMOUNT IS 20 MILLION PER CONTRACT AND THE
00:50:46 DURATION FOR EACH CONTRACT IS FIVE YEARS WITH AN OPTION TO
00:50:49 EXTEND. >> FINALLY WE RECEIVED BY WE
00:50:53 THANK THE BUDGET AND LEGISLATIVE ANALYST FOR THE
00:50:57 REPORT AND AGREE WITH THE RECOMMENDED AMENDMENTS.
00:51:01 THANK YOU AND I'M HAPPY TO TAKE QUESTIONS.
00:51:05 >> THANKS SO MUCH. NEXT WE'LL HEAR FROM THE BUDGET
00:51:09 LEGISLATIVE ANALYST MR. MAYNARD.
00:51:09 >> THE FLOOR IS YOURS. THANK YOU.
00:51:12 >> ITEM SEVEN THROUGH TEN ARE FOR RESOLUTIONS APPROVING CONCH
00:51:13 NEW CONTRACTS BETWEEN THE PUC AND FOUR ENGINEERING FIRMS
00:51:16 STANTEC, AECOM, JACOBS ENGINEERING AND LEE
00:51:21 INCORPORATED. THE CONTRACTS WERE AWARDED
00:51:24 FOLLOWING A COMPETITIVE SOLICITATION WHICH WE SUMMARIZE
00:51:28 ON PAGE 28 OF OUR REPORT. EACH CONTRACT IS $20 MILLION
00:51:31 AND HAS AN INITIAL TERM OF FIVE YEARS AS WELL AS LP COMMITMENTS
00:51:37 OF 20% AND CIP COMMITMENTS WHICH WE ALSO SUMMARIZED IN THE
00:51:39 REPORT ON PAGES 31 AND 32 WE DISCUSS THE BASIS FOR THE $20
00:51:46 MILLION AMOUNT FOR EACH CONTRACT.
00:51:49 THE PUC LOOKED AT THE HISTORICAL SPENDING ON THESE
00:51:50 SERVICES AND THEN SCALED THAT UP BASED ON THE NEXT FIVE YEARS
00:51:54 OF CAPITAL AND RELATED OPERATIONS SPENDING FOR HETCH
00:51:58 HETCHY WATER AND POWER ASSETS. AND WE DO HAVE A TECHNICAL
00:52:02 CORRECTION TO THESE RESOLUTIONS TO CORRECTLY IDENTIFY THE END
00:52:05 DATE OF THE INITIAL TERM WHICH IS THE END OF 2031 INSTEAD OF
00:52:11 2032 AND THEN ADD IN THAT EACH CONTRACT HAS AN OPTION TO
00:52:16 EXTEND BY TWO YEARS. AND WE RECOMMEND IT PROVIDES A
00:52:19 MANAGER. >> GREAT.
00:52:20 THANK YOU, MR. MAYNARD. I DON'T HAVE ANY QUESTIONS
00:52:23 AND I DON'T SEE ANYONE ON THE ROSTER SO THANK YOU FOR YOUR
00:52:24 PRESENTATIONS AND THANK YOU FOR YOUR WORK ON THEM FROM THE VLA.
00:52:27 AT THIS TIME MR. CLERK MAY WE INVITE A PUBLIC COMMENT ON THIS
00:52:31 ITEM? YES.
00:52:31 MEMBERS OF THE PUBLIC WISH TO COMMENT ON THIS AND THESE ITEMS
00:52:34 SHOULD APPROACH THE PODIUM AT THIS TIME.
00:52:37 ARE THERE ANY MEMBERS OF THE PUBLIC WHO LIKE TO PUBLIC
00:52:39 COMMENT ON ITEM SEVEN 310? >> THERE IS NO PUBLIC COMMENT.
00:52:44 THANK YOU, MR. CLERK. >> PUBLIC COMMENT ON THIS ITEM
00:52:46 IS NOW CLOSED. >> AND AT THIS TIME I WOULD
00:52:49 MOVE TO AMEND THE PROPOSED RESOLUTIONS AS THE BILA ADVISED
00:52:53 TO CORRECT THE ANTICIPATED CONTRACT END DATE FROM DECEMBER
00:52:57 2032 TO DECEMBER 2031 AND TO DISCLOSE THE SPOUSES OPTION TO
00:53:00 EXTEND EACH CONTRACT FOR UP TO TWO YEARS AND THEN FORWARD
00:53:04 THESE RESOLUTIONS TO THE FULL BOARD OF SUPERVISORS WITH THEIR
00:53:08 POSITIVE RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
00:53:09 ROLL CALL ON THOSE MOTIONS? >> OH YES.
00:53:11 AND THE MOTION TO AMEND AND RECOMMEND AS AMENDED VICE
00:53:15 CHAIR CHEN CHEN I REMEMBER SENATOR SUTTER I CHAIR DORSEY I
00:53:19 FORESEE THAT MOTION PASSES WITHOUT OBJECTION.
00:53:23 >> THANK YOU, MR. CLERK. THE MOTION PASSED.
00:53:26 >> AND MR. CLERK, WE PLEASE CALL ITEM NUMBER 11.
00:53:29 ITEM NUMBER 11 IS A RESOLUTION APPROVING AND AUTHORIZING THE
00:53:33 GENERAL MANAGER OF THE SAN FRANCISCO PUBLIC UTILITIES
00:53:34 COMMISSION TO EXECUTE CONTRACT NUMBER PRO .30339 OUR POWER
00:53:40 CAPITAL PROGRAM MANAGEMENT CONTRACT WITH DELOITTE.
00:53:44 TRANSACTIONS AND BUSINESS ANALYTICAL LLP TO PROVIDE
00:53:47 PROGRAM MANAGEMENT CONSULTING SERVICES TO SUPPORT DELIVERY OF
00:53:51 POWER ENTERPRISES CAPITAL IMPROVEMENT PROGRAMS FOR AN
00:53:55 AMOUNT NOT TO EXCEED 30 MILLION AND A DURATION OF TEN YEARS
00:53:59 FROM NOVEMBER 16TH 2026 THROUGH NOVEMBER 15TH 2036.
00:54:04 >> THANK YOU, MR. CLERK. WE ARE JOINED BY MR. JIMMY
00:54:05 LIANG, PRINCIPAL PROJECT MANAGER AT THE SAN FRANCISCO
00:54:09 PUBLIC UTILITIES COMMISSION. MR. LIANG, WELCOME TO THE
00:54:12 BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS.
00:54:13 THANK YOU. GOOD MORNING CHAIR DORSEY
00:54:17 AND COMMITTEE MEMBERS. JIMMY LAM PRINCIPAL PROJECT
00:54:20 MANAGER OF SAP U.S.. I'M HERE TODAY TO PRESENT A
00:54:25 PROPOSED PROFESSIONAL SERVICES AGREEMENT FOR THE POWER CAPITAL
00:54:29 PROGRAM MANAGEMENT CONTRACT PRO SEO 33905 AND NUMBER 2609 54
00:54:36 AND REQUEST APPROVAL OF THE PROGRAM MANAGEMENT CONTRACT
00:54:41 BETWEEN SPC AND DELOITTE TO SUPPORT THE POWER ENTERPRISE
00:54:44 CAPITAL IMPROVEMENT PROGRAMS. >> I'M HERE WITH SONI DHALIWAL
00:54:51 WHO IS THE PROGRAM DIRECTOR AND WILL SERVE AS THE CONTRACT
00:54:56 MANAGER OF THIS PROFESSIONAL SERVICES CONTRACT.
00:55:00 ONCE THE AGREEMENT IS EXECUTED IT AS YOU KNOW THE SSP C IS SAN
00:55:10 FRANCISCO'S LOCAL CLEAN ELECTRICITY PROVIDER THROUGH
00:55:14 HAVE HAD YOU POWER AND CLEAN POWER ASSESS PROGRAMS WE
00:55:18 SERVICE AND AS CISCO RESIDENTS BUSINESSES VENDORS SUPPORT
00:55:22 OPERATIONS AND CITY BUILDING WITH CLEAN POWER.
00:55:29 >> THE FSP U C POWER ENTERPRISE TEN YEAR CAPITAL PLANS COVERING
00:55:33 FISCAL YEAR 2027 THROUGH 2036 TOTAL APPROXIMATELY TWO POINT 2
00:55:42 BILLION. >> THESE INVESTMENTS HELP
00:55:43 ADVANCED US CITY'S CLIMATE GOALS INCREASE POWER
00:55:47 RELIABILITY, SUPPORT ELECTRIFICATION AND IMPROVE
00:55:51 ESSENTIAL INFRASTRUCTURE TO DELIVER SUCH SUCH LARGE
00:56:00 AND COMPLEX CAPITAL PROGRAMS. THE FSP C IS SEEKING TO RETAIN
00:56:05 SERVICES OF A QUALIFIED PROPOSAL TO PROVIDE
00:56:09 PROGRAMMATIC SUPPORT SERVICES. THE OBJECTIVE OF THE CONTRACT
00:56:13 IS TO OPTIMIZE CAPITAL PROJECT DELIVERY PROCESSES AND HENCE
00:56:17 QUALITY MANAGEMENT IN AND SUPPORT TIMELY COMPLETION OF
00:56:21 PROJECTS WITHIN THE APPROVED SCOPE, SCHEDULE AND BUDGET.
00:56:25 >> THE MANAGEMENT CONTRACT PRO 033 AND I O IS STRUCTURED AS A
00:56:32 SINGLE AGREEMENT WITH AN AMOUNT NOT TO EXCEED 30 MILLION OVER
00:56:39 TEN YEARS AND INCLUDES A 20% LOCAL BUSINESS ENTERPRISE
00:56:43 SUBCONTRACTING REQUIREMENT. THIS IS THE FIRST PROGRAM THAT
00:56:50 HAS BEEN CONTRACT FOR OUR POWER CAPITAL IMPROVEMENT PROGRAMS.
00:56:54 THE EXPECTATION SHOWN IS TO TRANSFER THE EXPERTISE
00:56:58 AND IMPROVE THE PROCESSES TO CITY STAFF OVER TIME.
00:57:04 >> THE SCOPE OF SERVICE INCLUDE FOUR MAJOR AREAS PROGRAM
00:57:08 ADMINISTRATION INCLUDING CONTRACT MANAGEMENT
00:57:12 AND DOCUMENT CONTROL. >> STRATEGIC CAPITAL PLANNING
00:57:16 ENSURING ALIGNMENT WITH LONG TERM GOALS AND SUPPORTING
00:57:21 CAPITAL PLANNING AND ATTRACTIVE PROGRAM MANAGEMENT PROCESSES.
00:57:27 PROGRAM DELIVERY INCLUDING SAFETY OVERSIGHT PROGRAMS LIKE
00:57:31 MANAGE PROGRAM RISK MANAGEMENT AND PERFORMANCE TRACKING
00:57:38 AND PROJECT TECHNICAL SUPPORT RANGING FROM POWER MODELING
00:57:43 AND GRID CONNECTIONS STUDIES TO ASSET IMPORTING
00:57:46 AND DECARBONIZATION STRATEGIES .
00:57:52 >> THE FCPA SEE WE RECEIVE ONE PROPOSAL ON JUNE 1ST, 2026
00:57:57 AFTER A THOROUGH REVIEW. THE PROPOSAL WAS FOUND
00:58:02 RESPONSIVE AND QUALIFIED ON JULY 28TH, 2026.
00:58:08 THIS YEAR OUR COMMISSION APPROVED AWARDING THE CONTRACT
00:58:12 TO DEPLOY TRANSACTION AND BUSINESS ANALYTICS FOR OUR
00:58:17 LP CONTINGENT ON THE BOARD OF SUPERVISOR APPROVAL UNDER
00:58:21 CHAPTER SECTION 9.118. WE ALSO THANK YOU.
00:58:27 THE BUDGET AND LITERACY AND IS THIS RECOMMENDATION AND WE
00:58:31 AGREE TO THE PROPOSED AMENDMENT TO THE RESOLUTION TO DISCLOSE
00:58:39 THE OPTION TO EXTEND THE CONTRACT BY UP TO A FY AT THIS
00:58:41 RATE WOULD YES. WITH THAT I'M HAPPY TO ANSWER
00:58:44 ANY QUESTION. >> OKAY.
00:58:47 GREAT. THANKS.
00:58:48 WE'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST MR.
00:58:51 MINARD. >> ITEM 11 IS A RESOLUTION THAT
00:58:53 APPROVES A NEW CONTRACT WITH DELOITTE.
00:58:56 THE CONTRACT WAS AWARDED FOLLOWING A COMPETITIVE
00:59:01 SOLICITATION PROCESS IN WHICH DELOITTE WAS THE ONLY PROPOSER.
00:59:05 WE DISCUSSED DOWN ON PAGE 41 OF OUR REPORT.
00:59:06 THE CONTRACT IS $30 MILLION AND HAS AN INITIAL TEN YEAR
00:59:12 TERM WITH ONE FIVE YEAR OPTION TO EXTEND.
00:59:13 WE SHOWED THE BUDGET FOR THE CONTRACT ON PAGE 44 OF THE
00:59:16 REPORT. YOU CAN SEE THE SCHEDULE OF THE
00:59:19 ANTICIPATED SPENDING OF THE $30 MILLION OVER THAT INITIAL TEN
00:59:22 YEAR TERM. AND WE DO HAVE A TECHNICAL
00:59:26 RECOMMENDATION TO ADD LANGUAGE TO THE RESOLUTION STATING THAT
00:59:29 THE CONTRACT HAS AN OPTION TO EXTEND BY FIVE YEARS.
00:59:33 >> RECOMMENDED PROVIDES AMENDED GREG.
00:59:36 >> THANK YOU MR. MINARD. JUST A SORT OF SIDE QUESTION ON
00:59:40 THE SOCIAL IMPACT PARTNERSHIP PROGRAM.
00:59:44 >> I NOTE THAT THE THAT DELOITTE IS COMMITTING TO
00:59:47 PROVIDE 4000 VOLUNTEER HOURS THROUGH THAT.
00:59:51 WHAT KIND OF SERVICES? WHAT KIND OF SOCIAL IMPACT
00:59:52 VOLUNTEER WORK DO THEY DO OF THE SOCIAL IMPACT PROGRAM?
00:59:59 IS IT MAINLY TO HELP THE COMMUNITY GET THE WORKFORCE
01:00:06 TRAINED LIKE TO HELPING THE APPRENTICE OR GIVE THEM THE
01:00:10 CHANCE TO GET INVOLVED INTO THE WORKFORCE?
01:00:14 AND AS PART OF THAT AND THE OTHER PART IS SOME SORT OF
01:00:18 EDUCATION PROGRAM TO TO HELP THE NOT ONLY THE WORKFORCE BUT
01:00:28 ALSO SOME OTHER ORGANIZATION AND GO TO LEARN MORE ABOUT
01:00:33 CAPITAL PROGRAMS SO THAT THEY CAN BE PARTICIPATING IN THE
01:00:37 FUTURE SO THEY ARE PLENTY OF THE SOCIAL IMPACT PROGRAM THAT
01:00:43 WE HAVE EMPLOYED TO. BUT I THINK I HOPE THAT ANSWERS
01:00:48 YOUR QUESTION. BUT IF YOU NEED MORE
01:00:52 INFORMATION AND WE CAN HAVE OUR SPECIALISTS TO ANSWER YOUR
01:00:56 QUESTION AS WELL. YEAH, I WOULD SAY I HAVE BEEN
01:00:59 OUT DOING SORT OF NEIGHBORHOOD CLEANUPS AT A DOG PARK AND SAW
01:01:02 SOME, YOU KNOW, VOLUNTEERS FROM DELOITTE AND NOW THAT I KNOW
01:01:03 THAT WE'VE GOT THEM ON THE HOOK FOR VOLUNTEER HOURS MAYBE I
01:01:07 SHOULD BE ASKING BUT MAYBE NOT WE CAN TAKE IT OFFLINE BUT IF
01:01:10 THERE YOU KNOW THERE'S CERTAINLY COMMUNITY NEEDS THAT
01:01:11 THE NEIGHBORHOODS HAVE WHETHER IT'S ELIGIBLE FOR THAT KIND OF
01:01:14 COMMITMENT OR VOLUNTEER HOURS WE HAVE PLENTY OF WORK TO DO
01:01:18 IN THE CITY SO I'M GLAD THAT THEY DID IT AND I APPRECIATE
01:01:21 YOUR WORK IN NEGOTIATING IT. I DON'T HAVE ANY QUESTIONS.
01:01:25 I DON'T SEE ANYONE ON THE ROSTER WITH QUESTIONS OR
01:01:26 COMMENTS. I THANK YOU FOR YOUR
01:01:29 PRESENTATION AND MR. CLERK, WHY DON'T WE INVITE PUBLIC COMMENT
01:01:31 ON THIS ITEM? YES, MEMBERS OF THE PUBLIC
01:01:33 WOULD LIKE TO PROVIDE PUBLIC COMMENT ON THIS MATTER SHOULD
01:01:36 LINE UP TO SPEAK AT THIS TIME AT THE PODIUM.
01:01:40 ARE THERE ANY MEMBERS OF THE PUBLIC LIKE TO PROVIDE PUBLIC
01:01:41 COMMENT? THERE ARE NO PUBLIC COMMENTERS.
01:01:44 THANK YOU. MR..
01:01:45 PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME I
01:01:48 WOULD LIKE TO MOVE TO AMEND THE ITEM AS THE VLA ADVISED
01:01:56 AND FORWARD THIS TO THE FULL BOARD OF SUPERVISORS WITH OUR
01:02:00 POSITIVE RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
01:02:01 ROLL CALL ON THAT MOTION? >> YES, ON THE MOTION TO AMEND
01:02:04 AND TO RECOMMEND AS AMENDED. CHEN CHEN I AM MR. SUTTER I
01:02:11 CHAIR DORSEY I OR C I THAT MOTION PASSES WITHOUT
01:02:14 OBJECTION. >> THANK YOU, MR. CLERK.
01:02:15 MOTION PASSES. >> MR. CLERK, CAN YOU PLEASE
01:02:18 CALL ITEM NUMBER 12? ITEM NUMBER 12 IS A RESOLUTION
01:02:21 APPROVING AND AUTHORIZING THE GENERAL MANAGER OF THE SAN
01:02:22 FRANCISCO PUBLIC UTILITIES COMMISSION TO EXECUTE A PROJECT
01:02:25 SPECIFIC MAINTENANCE AGREEMENT AT NO COST FOR A TERM EFFECTIVE
01:02:29 UPON APPROVAL OF THIS RESOLUTION UNTIL THE
01:02:33 TERMINATION OF THE AGREEMENT BY ONE OF THE PARTIES WITH THE
01:02:36 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION CALTRANS FOR
01:02:39 ONGOING MAINTENANCE SUPPORT PROPOSED IMPROVEMENTS UNDER
01:02:41 CONTRACT NUMBER WW-780 PUMP STATION SECURITY UPGRADES AT
01:02:48 TWO WASTEWATER PUMP STATIONS LOCATIONS WITHIN CALTRANS RIGHT
01:02:51 OF WAY PURSUANT TO THE CHARTER .
01:02:55 >> THANK YOU MR. CLERK AND WE'RE JOINED BY DANA BRAZIL
01:02:57 RIGHT OF WAY MANAGER WITH THE SAN FRANCISCO PUBLIC UTILITIES
01:02:59 COMMISSION IS BRAZIL WE WELCOME TO THE BOARD TO THE BUDGET
01:03:02 AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS.
01:03:04 THANK YOU. GOOD MORNING SUPERVISORS THE
01:03:06 AGREEMENT BEFORE YOU FOR CONSIDERATION IS BETWEEN THE
01:03:10 CITY THROUGH THE SFP C AND CALTRANS.
01:03:11 >> IT'S CALLED A PROJECT SPECIFIC MAINTENANCE AGREEMENT
01:03:15 BUT IT'S MORE COMMONLY REFERRED TO AS A FREEWAY MAINTENANCE
01:03:19 AGREEMENT AND IT'S REQUIRED BY CALTRANS ANY TIME WE CONSTRUCT
01:03:22 ANY FACILITIES WITHIN THE CALTRANS RIGHT OF WAY THE SFP
01:03:27 OWNS, MAINTAINS AND OPERATES TWO WASTEWATER PUMP STATIONS
01:03:30 WITHIN THE STATE HIGHWAY ROUTE 80 RIGHT OF WAY THE SFP C IS
01:03:35 IMPLEMENTING A PROJECT TO ADDRESS AND CORRECT CERTAIN
01:03:38 SECURITY VULNERABILITIES AT THESE TWO PUMP STATIONS.
01:03:42 WHEN WE APPLIED TO CALTRANS FOR AN ENCROACHMENT PERMIT FOR
01:03:46 CONSTRUCTION WITHIN ITS RIGHT OF WAY CALTRANS MADE THE
01:03:49 ISSUANCE OF THE ENCROACHMENT PERMIT SUBJECT TO RECEIPT OF A
01:03:53 FULLY EXECUTED FREEWAY MAINTENANCE AGREEMENT FOR THE
01:03:54 NEW SECURITY FACILITIES. THERE IS NO COST FOR THE
01:03:57 AGREEMENT. ITS PURPOSE IS SIMPLY TO
01:04:01 MEMORIALIZE THE RELATIONSHIP AND ENSURE THAT THE PARTY THAT
01:04:04 OWNS THE IMPROVEMENTS WILL CONTINUE TO BE RESPONSIBLE FOR
01:04:08 THEIR ONGOING MAINTENANCE UNTIL SUCH TIME AS THE AGREEMENT IS
01:04:09 TERMINATED AND THE FACILITIES REMOVED.
01:04:14 >> THIS AGREEMENT REQUIRES BOARD APPROVAL BECAUSE SECTION
01:04:19 9.118 OF THE CITY CHARTER STIPULATES THAT ALL CONTRACT
01:04:20 WITH A TERM IN EXCESS OF TEN YEARS HAVE TO BE SUBJECT TO THE
01:04:27 APPROVAL OF THE BOARD OF SUPERVISORS AT THIS TIME I'D BE
01:04:31 HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ABOUT THE
01:04:32 AGREEMENT OR ABOUT OUR PROJECT .
01:04:34 OKAY. THANKS SO MUCH.
01:04:35 I THINK IT'S STRAIGHTFORWARD TO ME AND I DON'T SEE ANYBODY ON
01:04:39 THE ROSTER WITH QUESTIONS OR COMMENTS AND I DON'T WE DON'T
01:04:42 HAVE A BUDGET LEGISLATIVE ANALYST REPORT ON THIS.
01:04:46 SO AT THIS TIME I APPRECIATE YOUR PRESENTATION AND WHY DON'T
01:04:47 WE INVITE A PUBLIC COMMENT ON THIS ITEM?
01:04:50 >> THANK YOU. YES.
01:04:50 MEMBERS OF THE PUBLIC WISH TO PROVIDE PUBLIC COMMENT CAN
01:04:53 APPROACH THE PODIUM AT THIS TIME.
01:04:56 ARE THERE ANY MEMBERS PUBLIC BY PUBLIC COMMENT THERE ARE NO
01:04:58 MEMBERS OF THE PUBLIC. THANK YOU MR. CLERK FOR THE
01:05:02 COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME I WOULD
01:05:04 MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS
01:05:09 WITH OUR POSITIVE RECOMMENDATION.
01:05:10 MR. KIRK MAY WE HAVE A ROLL CALL ON THAT MOTION?
01:05:13 >> YES, ON THAT MOTION. VICE CHAIR CAN I CAN I REMEMBER
01:05:19 SADR I SADR I CHAIR DORSEY I GARCIA THAT MOTION IS ADOPTED
01:05:24 WITHOUT OBJECTION. >> THANK YOU MR. CLERK THE
01:05:27 MOTION PASSES. MR. CLERK DO WE HAVE ANY
01:05:30 FURTHER BUSINESS BEFORE US TODAY?
01:05:32 THAT COMPLETES THE AGENDA FOR TODAY.
01:05:34 >> THANK YOU, MR. CLERK, AND THANK YOU EVERYONE FOR YOUR
01:05:36 WORK AND PARTICIPATION. >> THE MEETING IS ADJOURNED