00:00:10 ,GOOD MORNING. >> THIS MEETING WILL COME TO
00:00:12 ORDER. WELCOME TO THE OCTOBER 7TH,
00:00:13 2026 MEETING OF THE BUDGET AND FINANCE COMMITTEE.
00:00:17 I AM SUPERVISOR MATT DORSEY, CHAIR OF THIS COMMITTEE.
00:00:19 I'M JOINED TODAY BY VICE CHAIR SHYAM CHIEN AND WE EXPECT OUR
00:00:22 SUPERVISOR DANNY SAUTTER TO BE JOINING US SHORTLY.
00:00:26 OUR CLERK TODAY IS MR. BRANT HALPER WHOM WE THANK IN ADVANCE
00:00:29 FOR KEEPING US ON TRACK AS WELL.
00:00:30 WE APPRECIATE THE ENTIRE TEAM AT S.F. GOV TV FOR FACILITATING
00:00:34 AND BROADCASTING TODAY'S MEETING AND THAT IS ESPECIALLY
00:00:38 TRUE FOR SUSI NILES WHO IS OUR PRODUCER TODAY.
00:00:41 >> MR. CLERK, DO YOU HAVE ANY ANNOUNCEMENTS?
00:00:42 THANK YOU. MR. CHAIR.
00:00:44 >> JUST A FRIENDLY REMINDER TO THOSE IN ATTENDANCE TO PLEASE
00:00:46 SILENCE ALL CELL PHONES AND ELECTRONIC DEVICES TO
00:00:49 PREVENT INTERRUPTIONS TO OUR PROCEEDINGS AND SHOULD YOU HAVE
00:00:52 ANY DOCUMENTS TO BE INCLUDED AS PART OF THE FILE THEY SHOULD BE
00:00:54 SUBMITTED TO MYSELF. THE CLERK PUBLIC COMMENT WILL
00:00:56 BE TAKEN ON EACH ITEM ON THE AGENDA AND WHEN YOUR ITEM OF
00:01:00 INTEREST COMES UP IN PUBLIC COMMENT IS CALLED.
00:01:03 PLEASE LINE UP TO SPEAK ON THE WEST SIDE OF THE CHAMBER TO
00:01:05 YOUR RIGHT IN MY LEFT ALONG THOSE CURTAINS.
00:01:07 AND WHILE NOT REQUIRED TO PROVIDE PUBLIC COMMENT WE DO
00:01:08 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
00:01:15 WISH FOR YOUR NAME TO BE ACCURATELY RECORDED FOR TWO
00:01:16 MINUTES. ALTERNATIVELY YOU MAY SUBMIT
00:01:19 PUBLIC COMMENT IN WRITING IN EITHER OF THE FOLLOWING WAYS
00:01:21 EMAIL THEM TO MYSELF THE BUDGET AND FINANCE COMMITTEE CLERK AT
00:01:24 B R N T A L I P A HAS F G O V.ORG IF YOU SUBMIT PUBLIC
00:01:31 COMMENT VIA EMAIL IT WILL BE FORWARDED TO THE SUPERVISORS
00:01:35 AND ALSO INCLUDED AS PART OF THE OFFICIAL FILE.
00:01:39 >> YOU MAY ALSO SEND YOUR WRITTEN COMMENTS VIA U.S.
00:01:40 POSTAL SERVICE TO OUR OFFICE IN CITY HALL AT ONE DR. CARLTON
00:01:44 BIGGER THE PLACE ROOM 244 SAN FRANCISCO, CALIFORNIA 94122.
00:01:49 AND FINALLY DUE TO OUR OBSERVANCE OF INDIGENOUS
00:01:53 PEOPLES AND ITALIAN-AMERICAN HERITAGE DAY ITEMS ACTED UPON
00:01:56 TODAY ARE EXPECTED TO APPEAR ON THE BOARD OF SUPERVISORS AGENDA
00:01:58 OF OCTOBER 20TH UNLESS OTHERWISE STATED.
00:02:01 >> MR. CHAIR THANK YOU MR. CLERK.
00:02:04 BEFORE WE CALL ITEM ONE, I WOULD LIKE TO REMIND OUR
00:02:06 VIEWERS AND ATTENDEES SO THAT WE HAVE BUDGET AND LEGISLATIVE
00:02:09 ANALYST REPORTS TODAY FOR ITEMS 1 TO 5 AND SEVEN ON THE AGENDA
00:02:16 . FOR THOSE ITEMS WE WILL HEAR
00:02:17 FROM THE DEFENSE DEPARTMENT PRESENTATION FIRST WE WILL THEN
00:02:19 HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST.
00:02:23 WE CAN THEN FACILITATE QUESTIONS FROM THOSE OF US ON
00:02:25 THE COMMITTEE AND AT THAT POINT WE'LL INVITE A PUBLIC COMMENT.
00:02:28 >> NOW MR. CLERK, WOULD YOU PLEASE CALL ITEM NUMBER ONE?
00:02:31 >> YES. ITEM NUMBER ONE IS AN ORDINANCE
00:02:33 APPROPRIATING 658,000 OF STATE REVENUE TO THE DEPARTMENT OF
00:02:38 ELECTIONS TO SUPPORT COSTS ASSOCIATED WITH THE STATEWIDE
00:02:42 NOVEMBER 2026 ELECTION IN FISCAL YEAR 2026 TO 2027.
00:02:45 THIS ORDINANCE REQUIRES A TWO THIRDS APPROVAL VOTE OF ALL
00:02:49 MEMBERS OF THE BOARD OF SUPERVISORS FOR 308,000
00:02:51 APPROPRIATED FOR SALARY OVERTIME, MANDATORY FRINGE
00:02:56 BENEFITS AND NON PERSONNEL SERVICES PURSUANT TO THE
00:02:58 CHARTER. >> MR. CHAIR THANK YOU, MR.
00:03:01 CLERK. AND WE WERE JOINED TODAY BY MR.
00:03:02 JOHN ARCH WHO IS THE DIRECTOR OF THE SAN FRANCISCO DEPARTMENT
00:03:05 OF ELECTIONS. MR. ROBERTS, WE WELCOME YOU TO
00:03:08 THE BUDGET AND FINANCE COMMITTEE.
00:03:09 >> THE FLOOR IS YOURS. THANK YOU.
00:03:10 CHAIR JOHNSON. GOOD MORNING.
00:03:12 SO THE BASIS FOR THE SUPPLEMENTAL APPROPRIATION IS
00:03:15 THE STATE HAS PROVIDED COUNTIES WITH FUNDS TO MORE QUICKLY
00:03:16 PROCESS BALLOTS AND RELEASE RESULTS REPORTS AFTER ELECTION
00:03:19 DAY ON NOVEMBER 3RD. THE FUNDS WILL ALSO SUPPORT
00:03:22 COUNTIES IN THEIR OUTREACH EFFORTS IN RELATION TO THE
00:03:26 UPCOMING GENERAL ELECTION. OVERALL THE STATE HAS ALLOCATED
00:03:29 $34 MILLION TO COUNTIES OF WHICH SAN FRANCISCO RECEIVED
00:03:33 $658,000. EVEN PRIOR TO THESE FUNDS BEING
00:03:37 MADE AVAILABLE THE DEPARTMENT HAD ALREADY SET PLANS TO
00:03:38 EXPEDITE BALLOT PROCESSING AFTER ELECTION DAY.
00:03:41 >> AND THESE FUNDS WILL NOW SUBSTANTIALLY FURTHER THOSE
00:03:43 PLANS. REGARDING THE DEPARTMENT'S
00:03:46 INTENTIONS TO UTILIZE THESE FUNDS, THE DEPARTMENT WOULD
00:03:48 PURCHASE ADDITIONAL EQUIPMENT TO PROCESS BALLOTS AND ROSTERS
00:03:52 AND ALSO INCREASE ITS OUTREACH EFFORTS.
00:03:53 FOR EXAMPLE, THE DEPARTMENT WILL PURCHASE A VOTE BY MAIL
00:03:57 BALLOT SCANNING AND SORTING MACHINE THAT WILL REDUCE THE
00:03:58 TIME REQUIRED TO PREPARE BALLOTS FOR COUNTING.
00:04:00 WE WILL ALSO PURCHASE EQUIPMENT THAT ALLOWS FOR THE OPENING OF
00:04:04 THE ENVELOPES OF RETURN VOTE BY MAIL BALLOTS TO INCREASE THE
00:04:07 VOLUME OF BALLOTS AVAILABLE FOR TABULATION.
00:04:10 DEPARTMENT ALSO SEEKS TO PURCHASE SCANNING EQUIPMENT
00:04:12 AND RELATED WORKSTATIONS TO ALLOW FOR A FASTER REVIEW OF
00:04:15 ROSTERS RECEIVED FROM POLLING PLACES ON ELECTION NIGHT.
00:04:18 ALSO THE DEPARTMENT WILL RUN ADDITIONAL SCANNERS RELATED TO
00:04:20 TABULATING VOTES TO INCREASE THE THROUGHPUT OF CARDS THAT WE
00:04:23 CAN PROCESS. >> THE TOTAL COST OF THESE
00:04:26 EQUIPMENT PURCHASES AND RENTALS WOULD BE APPROXIMATELY $350,000
00:04:29 TO EFFECTIVELY UTILIZE THIS EQUIPMENT.
00:04:30 THE DEPARTMENT WILL NEED TO HIRE SEVERAL HUNDRED ADDITIONAL
00:04:34 TEMPORARY PERSONNEL ABOVE THE STAFFING LEVELS APPLIED TO
00:04:37 PREVIOUS ELECTIONS. THE STATE FUNDING WILL COVER
00:04:38 THE COSTS FOR THE ADDITIONAL PERSONNEL AND WILL ALLOW THE
00:04:42 DEPARTMENT TO OPERATE CONTINUOUSLY FROM ELECTION DAY
00:04:44 THROUGH POSSIBLY THE FOLLOWING FRIDAY.
00:04:48 >> THIS MEANS THAT THE FUNDING WILL SUPPORT THE STAFFING COSTS
00:04:49 ASSOCIATED WITH OPERATING FOR 24 HOURS DAILY FOR THREE DAYS
00:04:52 AND THEN FUND OVERTIME COSTS FOR SUCCEEDING DAYS IF
00:04:56 NECESSARY. THE TOTAL COST OF THIS INCREASE
00:04:59 IN PERSONNEL AND THE RELATED COMPENSATION WOULD BE
00:05:00 APPROXIMATELY $200,000. THE STATE FUNDS WOULD ALSO
00:05:03 COVER THE STAFFING COSTS ASSOCIATED WITH CONDUCTING
00:05:07 OUTREACH FOR THE NOVEMBER ELECTION AND WILL SUPPORT MORE
00:05:10 OVERTIME HOURS IN PROVIDING OUTREACH.
00:05:11 THE TOTAL COST OF THESE OUTREACH EFFORTS WOULD BE
00:05:15 NEARLY $100,000. FINALLY, BESIDES THE POSITIVE
00:05:18 IMPACT OF STATE FUNDING WOULD PROVIDE TO REDUCE THE TIME
00:05:22 NEEDED TO PROCESS BALLOTS FOR THE UPCOMING NOVEMBER ELECTION.
00:05:23 THE DEPARTMENT WOULD ALSO RETAIN THE EQUIPMENT FOR FUTURE
00:05:26 ELECTIONS. THIS MEANS THE INCREASED
00:05:29 CAPACITY TO PROCESS BALLOTS MORE QUICKLY ASSOCIATED WITH
00:05:31 OBTAINING THE ADDITIONAL EQUIPMENT IS NOT LIMITED TO
00:05:34 ONLY THE NOVEMBER ELECTION. FROM THERE I'LL STEP ASIDE FOR
00:05:38 THE THINKING STARTS AND THEN I'LL HEAR FROM THE BUDGET
00:05:41 AND LEGISLATIVE ANALYST. >> MR. BERNARD THE FLOOR IS
00:05:42 YOURS. GOOD MORNING NICK MAYNARD FROM
00:05:45 THE BUDGET LEGISLATIVE ANALYST'S OFFICE.
00:05:46 ITEM ONE IS AN APPROPRIATION ORDINANCE FOR A $658,000 OF
00:05:51 STATE REVENUES TO THE DEPARTMENT OF ELECTIONS.
00:05:53 WE SHOWED THE USE AS A FUND ON FUNDS ON PAGE TWO OF OUR REPORT
00:05:57 AND INCLUDES BUYING AND RENTING BALLOT SORTING EQUIPMENT AS
00:06:00 WELL AS TEMPORARY STAFFING AND OVERTIME TO EXPEDITE THE
00:06:04 BALLOT COUNTING PROCESS AND VOTER OUTREACH EFFORTS.
00:06:08 >> THE THESE NEW RESOURCES PLUS OTHER CHANGES THAT THE
00:06:13 DEPARTMENT IS MAKING WILL ALLOW THEM TO CONCLUDE THE VOTE THE
00:06:16 WEEK OF THE ELECTION RATHER THAN THE WEEK AFTER AS IS
00:06:20 TYPICALLY THE CASE. THERE'S MINIMAL GENERAL FUND
00:06:24 IMPACTS FOR THESE PURCHASES EXCEPT THAT THE NEW EQUIPMENT
00:06:28 THAT THE DEPARTMENT IS BUYING WILL COST ABOUT $35,000 A YEAR
00:06:31 GOING FORWARD. THAT WOULD BE A NEW TURN OFF ON
00:06:35 COSTS FOR LICENSING AND MAINTENANCE THAT YOU KNOW
00:06:38 WITHIN A $23 MILLION BUDGET. SO I THINK IT CAN BE ABSORBED
00:06:41 BY THE DEPARTMENT AND WE RECOMMEND APPROVAL OF ITEM ONE.
00:06:44 >> GREAT. THANK YOU, MR. MINARD.
00:06:47 I KNOW THAT WHEN I HEAR NEWS STORIES ABOUT HOW LONG IT TAKES
00:06:52 CALIFORNIA TO GET THROUGH THE VOTING COUNT, THE VOTE COUNTING
00:06:55 PROCESS I THINK WE'VE ALL HEARD A NUMBER OF STORIES
00:06:59 AND SECRETARY OF STATE WEBER DISCUSSES SOME OF THE
00:07:01 REQUIREMENTS THAT CALIFORNIA PUTS ON ELECTIONS DEPARTMENTS
00:07:03 WHICH I THINK ARE WORTHY OF INCREASING CIVIC PARTICIPATION.
00:07:07 >> I GUESS THE ONLY QUESTION I WOULD HAVE FOR YOU IS THIS IS
00:07:12 THIS ENOUGH AND SHOULD WE BE ASKING OUR LEGISLATIVE
00:07:15 DELEGATION TO INCREASE FUNDING OR ARE YOU AS A LOCAL ELECTIONS
00:07:19 DEPARTMENT ARE YOU FEELING WELL ENOUGH SUPPORTED BY THE STATE
00:07:23 FOR THE DEMANDS IT'S PUTTING ON YOU?
00:07:26 >> AS FAR AS THE PROCESSING OF BALLOTS WITHIN THE TIMEFRAMES
00:07:30 AVAILABLE, YES. THE CHALLENGE ALSO IS WHEN IT
00:07:34 COMES TO SORT OF CERTIFYING AN ELECTION AS COUNTIES CAN'T
00:07:38 CERTIFY ELECTION AT LEAST 22 DAYS AFTER ELECTION DAY AND SO
00:07:42 FINAL RESULTS CANNOT BE RELEASED REALLY UNTIL THE 20
00:07:50 DAYS AND NOT NOT AFTER 30 DAYS. BUT THE WITH VOTE BY MAIL
00:07:56 BALLOT BEING THE WAY THAT WE MOST PEOPLE CAST BALLOTS NOW
00:08:00 IN CALIFORNIA THAT MEANS THAT MORE THAN HALF OF THE BALLOTS
00:08:04 ARRIVE ON ELECTION DAY AND VOTE BY MAIL BALLOTS REQUIRE EXTRA
00:08:11 HANDLING AND PROCESSING THAT A THAT A BALLOT A POLLING PLACE
00:08:12 DOES NOT REQUIRE. WHEN SOMEONE GOES TO A POLLING
00:08:15 PLACE THEY GET THE BALLOT AT THE POLLING PLACE AND THEY
00:08:18 AND AND THEIR BALLOTS AND THE VOTES ARE TABULATED AT THE
00:08:19 POLLING PLACES. SO THOSE VOTES ARE REPORTED
00:08:23 REALLY ON ELECTION NIGHT AND THAT'S REALLY THE BY
00:08:26 MIDNIGHT WE GET THE LAST RESULTS FROM THE POLLING PLACE
00:08:30 WITH THE VOTE BY MAIL BALLOTS. THEY KEEP COMING IN AFTER THE
00:08:33 POLLS CLOSE THROUGH THE EVENING ,EVEN THE NEXT DAY NEXT
00:08:38 SEVERAL DAYS ACTUALLY FROM THEM FROM THE POST OFFICE AND WE
00:08:41 HAVE TO REVIEW THE SIGNATURES ON THE AISLE OVER TO SCAN THE
00:08:43 BALLOTS. WE HAVE TO REVIEW THE
00:08:46 SIGNATURES, OPEN THEM, OPEN THE ENVELOPES, GET THE BALLOT CARDS
00:08:48 READY FOR PROCESSING, RUN THEM THROUGH THE SCANNERS FOR
00:08:50 TABULATION. SO THERE'S JUST EXTRA STEPS.
00:08:53 SO IT'S A IT'S A IT'S A VOLUME ISSUE.
00:08:54 SO SO AS FAR AS THE LEGISLATION AND THE SUPPORT FROM THE STATE,
00:08:57 YES, I THINK THAT THERE IS SUFFICIENT SUPPORT AND FUNDING
00:09:01 NOW FROM THE STATE. BUT THE NATURE OF ELECTIONS HAS
00:09:04 CHANGED FROM FROM PREVIOUS GENERATIONS AND THAT'S WHY
00:09:08 THERE'S MORE OF A TIME REQUIREMENT AFTER ELECTION DAY
00:09:12 TO RELEASE RESULTS. BUT AGAIN, THE FINAL RESULTS
00:09:15 CANNOT BE CERTIFIED FOR THREE WEEKS AFTER ELECTION DAY NO
00:09:17 MATTER HOW MUCH HOW FAST WE CAN PROCESS BALLOTS AFTER ELECTION
00:09:20 DAY. >> OKAY, GREAT.
00:09:23 >> I WOULD JUST ADD I APPRECIATE THE WORK YOU DO
00:09:26 AND I KNOW THAT OVER THE YEARS YOU HAVE IMPLEMENTED A LOT OF
00:09:28 CHANGES COMPETENTLY AND WELL WITHOUT MUCH DRAMA.
00:09:31 GOING BACK TO THE RANKED CHOICE VOTING AND EVERYTHING ELSE.
00:09:35 SO I APPRECIATE YOUR LEADERSHIP AND EVERYBODY IN YOUR
00:09:36 DEPARTMENT FOR THE WORK THAT YOU DO.
00:09:39 I DON'T SEE ANYONE ON THE ROSTER SO AT THIS TIME, MR.
00:09:43 CLERK, WHEN WE INVITE A PUBLIC COMMENT ON THIS ITEM YES, WE'RE
00:09:46 NOW OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER ONE, IF WE
00:09:49 HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO DRESS THIS
00:09:51 COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS.
00:09:55 >> THANK YOU. FOR PUBLIC COMMENT ON THE STUDY
00:09:56 WHICH IS NOW CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD
00:09:58 THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
00:10:02 RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
00:10:03 ROLL CALL IN THAT MOTION? >> ACTUALLY, MR. CHAIR.
00:10:06 AHEAD OF THAT VOTE IF WE CAN GET A MOTION TO EXCUSE.
00:10:09 OH, SURE. LET ME AND THEN WE MAKE A
00:10:10 MOTION TO EXCUSE SUPERVISOR SAUTER.
00:10:13 YES. AND ON THAT MOTION TO EXCUSE
00:10:16 SUPERVISOR SAUTER UNTIL THEIR ARRIVAL.
00:10:17 VICE CHAIR CHEN CHENNAI. CHAIR DORSEY I.
00:10:20 DORSEY I HAVE TO US THE MOTION PASSES.
00:10:24 >> SUPERVISOR SAUTER IS EXCUSED UNTIL HE GETS HERE.
00:10:27 >> NOW AT THIS TIME MAY WE MOVE TO FORWARD THIS ITEM TO THE
00:10:31 FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION?
00:10:36 YES. AND ON THAT MOTION TO REFER TO
00:10:37 THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN.
00:10:39 >> CHEN I CHAIR DORSEY I. >> DORSEY WE HAVE TWO EYES.
00:10:44 THANK YOU, MR. CLERK. THE MOTION PASSES.
00:10:45 CONGRATULATIONS, MR. CLERK. >> PLEASE CALL ITEM NUMBER TWO.
00:10:48 YES. ITEM NUMBER TWO IS A RESOLUTION
00:10:50 APPROVING MODIFICATION NUMBER THREE TO A PROFESSIONAL
00:10:53 SERVICES AGREEMENT TO PROVIDE SHUTTLE BUS SERVICES AT THE SAN
00:10:57 FRANCISCO INTERNATIONAL AIRPORT BETWEEN SFO HOTEL SHUTTLE INC
00:11:01 AND CITY AND COUNTY HACKING BY AND THROUGH ITS AIRPORT
00:11:04 COMMISSION TO INCREASE THE CONTRACT AMOUNT BY
00:11:07 APPROXIMATELY 25.9 MILLION FOR A NEW AMOUNT NOT TO EXCEED
00:11:11 APPROXIMATELY 98.5 MILLION WHEN NO CHANGE TO THE FIVE YEAR TERM
00:11:14 OF JANUARY 1ST, 2023 THROUGH DECEMBER 31ST, 2027.
00:11:18 >> PURSUANT TO THE CHARTER. >> MR. CHAIR.
00:11:21 THANK YOU, MR. CLERK. WE'RE JOINED BY DEANNA BULLOCK
00:11:24 ,MANAGER OF GOVERNMENT AFFAIRS FOR THE SAN FRANCISCO
00:11:26 INTERNATIONAL AIRPORT. AND AS LIKE WE WELCOME YOU TO
00:11:28 THE BUDGET AND FINANCE COMMITTEE.
00:11:29 >> THE FLOOR IS YOURS. THANK YOU.
00:11:30 GOOD MORNING, SUPERVISORS. THE AIRPORT IS SEEKING YOUR
00:11:33 APPROVAL FOR MODIFICATION NUMBER THREE TO A CONTRACT WITH
00:11:36 SFO HOTEL SHUTTLE INC TO OPERATE AND MAINTAIN AIRPORT
00:11:39 SHUTTLE BUS SERVICES FOR A NOT TO EXCEED AMOUNT OF 98,110,172
00:11:46 AND NO CHANGE TO THE ORIGINAL FIVE YEAR TERM.
00:11:49 THIS NOT TO EXCEED AMOUNT INCORPORATES THE RECOMMENDATION
00:11:52 FROM THE VLA TO REDUCE THE AMOUNT IN LINE WITH THE REVISED
00:11:54 BUDGET. >> SFO HAS OPERATED SHUTTLE BUS
00:11:57 SERVICES FOR OVER 40 YEARS CONNECTING AIRPORT TERMINALS
00:12:01 WITH ON CAMPUS AND REGIONAL DESTINATIONS.
00:12:05 >> TODAY THE AIRPORT RUNS TWO ON CAMPUS ROUTES BETWEEN
00:12:08 TERMINALS AND REMOTE PARKING. >> SUPPORTED BY 50 AIRPORT
00:12:11 OWNED BUSSES ALONG WITH ASSOCIATED ADMINISTRATION
00:12:15 AND MAINTENANCE FACILITIES, THE AIRPORT IS ALSO EXPANDING ITS
00:12:17 SERVICE TO INCLUDE REGIONAL ROUTES FOR AIRPORT WITH WORKERS
00:12:20 WITH SERVICE TO HAYWARD, CASTRO VALLEY, EL SERINO, VALLEJO,
00:12:24 OAKLAND AND SAN FRANCISCO. FARES FOR THESE REGIONAL ROUTES
00:12:27 ARE COLLECTED BY THE OPERATOR ON THE AIRPORT'S BEHALF.
00:12:30 THE INCREASE IN THE CONTRACT AMOUNT WILL BE USED TO SUPPORT
00:12:34 ADDITIONAL LINES AND SERVICES. ADDITIONAL SERVICE EXPANSIONS
00:12:39 PLANNED FOR THE REMAINING TERM INCLUDE AIRFIELD BUSSING
00:12:42 BEGINNING IN MARCH 2027 AND ADDITIONAL TRIPS ON THE
00:12:44 COMMUTER ROUTE TO VALLEJO BEGINNING IN FISCAL YEAR 2728.
00:12:50 THE CONTRACTOR COLLECTS FARES ON THE REGIONAL LINES, MANAGES
00:12:54 THE FLEET AND PERFORMS PERFORMANCE PREVENTATIVE
00:12:55 MAINTENANCE REPAIRS, FUELING CHARGING SUPPORT
00:12:59 AND OPERATIONAL DATA REPORTING. SFO CONDUCTS SEMIANNUAL
00:13:03 CONTRACTOR PERFORMANCE EVALUATIONS WHICH SHOW THAT
00:13:06 THEY ARE GENERALLY MEETING OR EXCEEDING THE AIRPORT'S
00:13:07 EXPECTATIONS. >> HOWEVER IMPROVEMENT IS
00:13:11 NEEDED IN AREAS SUCH AS INCIDENT REPORTING AND CUSTOMER
00:13:15 COMPLAINT RESPONSES. >> THE CONTRACTOR HAS
00:13:16 IMPLEMENTED A NEW INCIDENT AND CUSTOMER RESPONSE TOOL
00:13:21 IN SEPTEMBER 2026 TO ADDRESS THESE ISSUES.
00:13:22 >> THE BILL RECOMMENDS APPROVAL WITH THE PROPOSED AMENDMENT
00:13:26 AND I AM HAPPY TO ANSWER ANY QUESTIONS ALONG WITH MY
00:13:29 COLLEAGUES FROM LANDSIDE OPERATIONS.
00:13:30 >> GREAT. THANK YOU SO MUCH.
00:13:34 NOW WE'LL HEAR FROM THE BUDGET LEGISLATIVE ANALYST AS WELL.
00:13:35 THE FLOOR IS YOURS. >> GOOD MORNING SUPERVISORS FOR
00:13:37 SENIOR MANAGEMENT FROM THE BUDGET AND LEGISLATIVE
00:13:40 ANALYST'S OFFICE. ITEM TWO WOULD APPROVE A THIRD
00:13:43 MODIFICATION TO THE AIRPORT SHUTTLE BUS CONTRACT WITH SFO
00:13:44 HOTEL SHUTTLE INC. IT'S AN INCREASE OF ABOUT 26
00:13:50 MILLION TO THE NOT TO EXCEED AMOUNT FOR A NEW TOTAL OF ABOUT
00:13:53 98.1 MILLION WITH OUR RECOMMENDATION.
00:13:56 >> THE CONTRACTOR PROVIDES SHUTTLE SERVICES FOR AIRPORT
00:14:01 EMPLOYEES TO REMOTE PARKING LOTS AT THE AIRPORT.
00:14:05 AND THEN THEY'VE ALSO EXPANDED SERVICE SINCE 2023 TO LAUNCH
00:14:08 FOUR NEW COMMUTER ROUTES THAT GO TO HAYWARD, CASTRO VALLEY,
00:14:12 EL SERINO, VALLEJO, OAKLAND AND SAN FRANCISCO LOCATIONS.
00:14:15 THEY COLLECT FARE REVENUE ON THE REGIONAL LINES AND THEY
00:14:19 ALSO MAINTAIN THE AIRPORT'S FLEET OF ABOUT 50 BUSSES.
00:14:23 >> AS MENTIONED BOTH BY THE AIRPORT STAFF, THE AIRPORT IS
00:14:27 WORKING WITH THE CONTRACTOR TO IMPROVE THEIR INCIDENT
00:14:31 REPORTING TO THE AIRPORT AS WELL AS FOLLOW UP ON CUSTOMER
00:14:34 COMPLAINTS BUT ARE GENERALLY MEETING THE AIRPORT'S OTHER
00:14:38 EXPECTATIONS. >> WE SHOW THE BUDGET
00:14:39 AND EXHIBIT TO YOU ON PAGE NINE OF A REPORT.
00:14:43 IT INCLUDES A FIXED MANAGEMENT FEE OF ABOUT $77,000 PER MONTH
00:14:47 WHICH IS ABOUT $0.9 MILLION ANNUALLY.
00:14:50 THE INCREASE OF 26 MILLION IN THE NOT TO EXCEED AMOUNT IS
00:14:54 PRIMARILY DRIVEN BY THE EXPANSION IN THE REGIONAL
00:14:57 COMMUTER LINES. IT'S ALSO DRIVEN BY HIGHER THAN
00:15:01 BUDGETED LABOR AND OPERATING COSTS.
00:15:01 >> THE AGREEMENTS FUNDED BY AIRPORT OPERATING FUNDS AND WE
00:15:05 HAVE A RECOMMENDATION AS I MENTIONED TO REDUCE THE NOT TO
00:15:09 EXCEED AMOUNT BY ABOUT 465 THOUSAND TO $98,110,172.
00:15:16 IN LINE WITH THE REVISED BUDGET AND WE RECOMMEND APPROVAL OF
00:15:20 ITEM TWO AS AMENDED. >> THANK YOU.
00:15:23 >> IS IT OKAY I MEAN IS THAT JUST MAYBE THIS IS A QUESTION
00:15:28 FOR THE CITY ATTORNEY OR SHOULD I READ INTO THE RECORD THE
00:15:31 AMENDMENT OR IS IT SUFFICIENT AS STATED?
00:15:35 >> DEPUTY CITY ATTORNEY BRAD RUSTY I THINK IT'S SUFFICIENT
00:15:39 AS STATED BY THE DEPARTMENT. OKAY, GREAT.
00:15:40 OKAY. LOOKS GOOD.
00:15:43 I KNOW THIS IS IMPORTANT AS I UNDERSTAND IT, ESPECIALLY FOR
00:15:45 THE WORKFORCE WHO MAY BE WORKING AFTER HOURS.
00:15:48 SO WE WANT TO SUPPORT THE ABILITY OF PEOPLE TO WORK AT
00:15:51 SFO. SO THANK YOU FOR THIS AND FOR
00:15:54 EVERYBODY'S SCRUTINY ON IT. I DON'T HAVE ANY QUESTIONS.
00:15:56 I THINK IT'S PRETTY STRAIGHTFORWARD AT THIS TIME.
00:15:59 >> WHY DON'T WE INVITE A PUBLIC COMMENT I GUESS IF WE HAVE ANY
00:16:02 MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE
00:16:04 REGARDING THIS ITEM NUMBER TWO, THAT WAS YOUR OPPORTUNITY, MR.
00:16:09 CHAIR. WE HAVE NO SPEAKERS.
00:16:10 THANK YOU, MR. CLERK. >> THE PUBLIC COMMENT IS NOW
00:16:14 CLOSED AND AT THIS TIME I WOULD MOVE TO AMEND THE RESOLUTION AS
00:16:17 THE BLR HAS ADVISED AND AS PRESENTED BY THE DEPARTMENT
00:16:20 AND TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH
00:16:22 OUR POSITIVE RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
00:16:25 ROLL CALL ON THAT MOTION? YES AND ON THAT MOTION THAT WE
00:16:28 AMEND THIS RESOLUTION TO ACCEPT THE BAILEY'S RECOMMENDATIONS
00:16:31 AND THAT WE REFER TO THE FULL BOARD WITH THE RECOMMENDATION
00:16:35 AS AMENDED. VICE CHAIR CHEN CHEN CHAIR
00:16:36 DORSEY I. >> DORSEY WE HAVE TWO EYES.
00:16:40 THANK YOU, MR. CLERK. THE MOTION PASSES.
00:16:42 >> THANK YOU SO MUCH. MR. PARKER, CAN YOU PLEASE CALL
00:16:47 ITEM NUMBER THREE? YES.
00:16:48 ITEM NUMBER THREE IS A RESOLUTION RETROACTIVELY
00:16:50 AUTHORIZING THE OFFICE OF THE DISTRICT ATTORNEY TO ACCEPT
00:16:53 AND EXPEND THE GRANT IN THE AMOUNT OF 525,000 FROM THE
00:16:57 CRANK START FOUNDATION TO SUPPORT PARTICIPATION IN THE
00:17:01 DISTRICT ATTORNEY'S ACCESS TO HOPE INITIATIVE WHICH INCLUDES
00:17:04 A TRANSFORMATIVE EDUCATIONAL JOURNEY WHERE YOUTH RETRACE THE
00:17:08 FOOTSTEPS PARDON OF THE CIVIL RIGHTS MOVEMENT BY VISITING
00:17:12 HISTORIC LANDMARKS ACROSS ALABAMA, ARKANSAS, MISSISSIPPI
00:17:15 AND TENNESSEE. FOR THE TERM OF MAY 1ST 2026
00:17:18 THROUGH APRIL 30TH 2029. >> MR. CHAIR THANK YOU, MR.
00:17:22 CLERK. AND WE ARE JOINED BY MS. MONEY
00:17:25 FOR WILLIS, CHIEF OF STAFF FOR THE SAN FRANCISCO DISTRICT
00:17:27 ATTORNEY'S OFFICE. ONE OF MY ALMA MATERS.
00:17:29 >> WE WELCOME HIM AS WELL AS TO TO THE BUDGET AND FINANCE
00:17:33 COMMITTEE. >> THE FLOOR IS YOURS.
00:17:34 THANK YOU AGAIN. MY NAME'S MONIFA WILLIS, CHIEF
00:17:37 OF STAFF FOR THE DISTRICT ATTORNEY'S OFFICE.
00:17:40 THANK YOU MEMBERS FOR HEARING THIS MATTER TODAY.
00:17:41 WE ARE ASKING FOR YOU TO AUTHORIZE A RETROACTIVE ACCEPT
00:17:48 AND EXPEND FROM CRANK START WITH A TOTAL AMOUNT OF $525,000
00:17:54 THAT WILL SUPPORT THREE YEARS OF OPERATION ON THIS VERY
00:17:58 UNIQUE TRIP CALLED SOJOURN TO THE PAST.
00:17:59 >> IT IS A PART OF OUR YOUTH AND YOUNG ADULT SERVICE UNIT
00:18:03 PROGRAMING. WE OFFER THIS TRIP FREE OF
00:18:06 CHARGE TO YOUTH IN DISTRICTS THAT ARE HIT HARDEST BY CRIME.
00:18:10 WE IDENTIFY THAT THROUGH THE CRIME STATISTICS THESE YOUNG
00:18:14 FOLKS PARTICIPATE IN AN EIGHT DAY TRIP WHERE THEY TRAVEL
00:18:17 THROUGH THE CIVIL RIGHTS TOURS RANGING FROM ALABAMA, ARKANSAS
00:18:25 ,MISSISSIPPI, TENNESSEE AND ACTUALLY WALK THROUGH
00:18:26 HISTORY AND TALK TO THE PEOPLE THAT LIVE THROUGH THIS HISTORY.
00:18:30 AND THE GOAL OF THIS REALLY IS TO INTERVENE AND BREAK CRIME
00:18:34 CYCLES BECAUSE WHAT WE KNOW IS THAT WHEN YOUNG PEOPLE ACTUALLY
00:18:40 TOUCH HISTORY, TOUCH RESILIENCY AND HEAR THOSE STORIES, IT CAN
00:18:44 INSTILL RESILIENCY AND HOPEFULLY SEND THEM ON A
00:18:48 TRAJECTORY OF HOPE. HENCE THE ACCESS TO HOPE
00:18:49 INITIATIVE. WE HAVE BEEN RUNNING THIS
00:18:52 PROGRAM NOW FOR THREE YEARS AND SO THIS GRACIOUS FUNDING
00:18:56 FROM CRANK START WILL HELP US CONTINUE FOR THREE MORE YEARS.
00:18:59 AND AFTER THIS WE HOPE TO THEN LAUNCH A SECOND TRIP THAT WILL
00:19:03 BE MORE LOCAL SO THAT WE CAN INCREASE YOUNG FOLKS ACCESS TO
00:19:10 EXPERIENCES LIKE THIS. >> GREAT.
00:19:11 THANK YOU. THANKS SO MUCH.
00:19:14 I'VE BEEN ON THAT TRIP WITH CHIEF OF POLICE BILL SCOTT.
00:19:18 >> I AM A BIG BELIEVER IN THE VALUE OF THIS AND FOR ANYBODY
00:19:22 WHO HASN'T BEEN ON IT I'D RECOMMEND IT.
00:19:25 YEAH, I'D LOVE TO SEE SOMETHING SOME SOMETHING LIKE THIS
00:19:29 RESUMED IN OTHER DEPARTMENTS AND IN OTHER FUNCTIONS BECAUSE
00:19:32 I THINK IT REALLY IS IMPORTANT. SO I APPRECIATE THE WORK YOU'RE
00:19:36 DOING ON THIS. I THINK IT'S MEANINGFUL.
00:19:40 ANY QUESTIONS OR COMMENTS? I THINK THIS IS PRETTY
00:19:41 STRAIGHTFORWARD. AT THIS TIME I WANT TO INVITE A
00:19:44 PUBLIC COMMENT ON THIS ITEM. YES, WE ARE OPENING PUBLIC
00:19:47 COMMENT FOR THIS ITEM NUMBER THREE.
00:19:48 IF WE HAVE ANY MEMBERS OF THE PUBLIC WISH TO ADDRESS THIS
00:19:51 COMMITTEE. >> MR. CHAIR, WE HAVE NO
00:19:52 SPEAKERS. THANKS SO MUCH.
00:19:55 PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED.
00:19:56 THANK YOU. AND I SEE NO FURTHER QUESTIONS
00:19:59 OR COMMENTS. I'D MOVE TO FORWARD THIS ITEM
00:20:00 TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
00:20:02 RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
00:20:04 ROLL CALL ON THAT MOTION? YES.
00:20:06 >> AND ON THAT MOTION THAT WE REFER TO THE FULL BOARD TO THE
00:20:08 RECOMMENDATION VICE CHAIR CHEN CHEN CHAIR DORSEY DORSEY.
00:20:12 >> I HAVE TWO EYES. THANK YOU, MR. CLERK.
00:20:13 THE MOTION PASSES. THANKS.
00:20:16 >> NEXT, MR. CLERK, CAN WE CALL UP ITEM NUMBER FOUR?
00:20:20 YES. ITEM NUMBER FOUR IS A
00:20:21 RESOLUTION RETROACTIVELY AUTHORIZING THE DEPARTMENT OF
00:20:24 ADULT PROBATION TO ACCEPT AND EXPEND A GRANT IN THE
00:20:28 AMOUNT OF 100,000 FOR THE PERIODS OF OCTOBER 1ST 2026
00:20:35 THROUGH SEPTEMBER 30TH 2027, 2028 AND 2029 FOR A TOTAL NOT
00:20:40 TO EXCEED AMOUNT THAN 300,000 FROM THE CALIFORNIA OFFICE OF
00:20:43 EMERGENCY SERVICES FOR PROBATION SPECIALIZED UNITS
00:20:44 PROGRAM FEDERALLY FUNDED THROUGH THE VIOLENCE AGAINST
00:20:47 WOMEN ACT FOR THE GRANT PERIOD OF OCTOBER 2026 THROUGH
00:20:54 SEPTEMBER 30TH 2029 TO CONTINUE THE PROBATION SPECIAL ISED UNIT
00:20:58 PROGRAM FEDERALLY FUNDED THROUGH THE VIOLENCE AGAINST
00:21:00 WOMEN ACT SHOULD THE GRANT BE AWARDED?
00:21:02 MR. CHAIR. THANK YOU MR. CLERK.
00:21:05 AND WE'RE JOINED BY ALEX HARDWICK, LEGISLATIVE MANAGER
00:21:06 FOR THE SAN FRANCISCO ADULT PROBATION DEPARTMENT.
00:21:09 MR. HARDWICK, WE WELCOME YOU TO THE BUDGET AND FINANCE
00:21:10 COMMITTEE. THE FLOOR IS YOURS.
00:21:13 THANK YOU. CHAIR DORSEY SUPERVISOR TEN
00:21:16 ADULT PROBATION IS REQUESTING THE APPROVAL OF A $300,000
00:21:22 GRANT OVER THREE YEARS FOR CONTINUED SPECIALIZED
00:21:26 SUPERVISION OF DOMESTIC VIOLENCE AND RELATED OFFENSES.
00:21:29 THE GRANT WOULD PARTIALLY FUND ONE EXISTING DEPUTY PROBATION
00:21:33 OFFICER WITH 25,000 ANNUAL CITY MATCH AND FRINGE BENEFITS.
00:21:40 AND SO THE PURPOSE IS FOCUSED INTENSIVE SUPERVISION
00:21:41 MONITORING FOR COURT CONDITIONS.
00:21:43 COORDINATING WITH VICTIM ADVOCATES AND JUSTICE PARTNERS
00:21:46 . THIS ESSENTIALLY FUNDS ONE
00:21:50 POSITION IN OUR DOMESTIC VIOLENCE UNIT AND ALLOWS FOR
00:21:54 CASELOADS TO BE LOWER AND FOR YOU KNOW, SERVICES SUPERVISION
00:21:58 LIKE THAT TO REALLY HAVE THE EFFECTS THAT IT CAN.
00:22:01 BEYOND THAT I'M HAPPY SO IT'S AND IT'S THROUGH THE CALIFORNIA
00:22:05 OFFICE OF EMERGENCY SERVICES AND WE'VE HAD THIS GRANT SINCE
00:22:09 I BELIEVE 2021. SO I'M HAPPY TO ANSWER ANY
00:22:10 QUESTIONS. >> KRAMER I KNOW IT HAPPENS TO
00:22:16 BE OCTOBER IS DOMESTIC VIOLENCE AWARENESS MONTH SO THIS IS
00:22:20 TIMELY. >> I THINK.
00:22:23 I GUESS THE ONLY QUESTION I HAVE SOMETIMES WHEN WHEN IT'S
00:22:25 FEDERAL SUPPORT WE HOW IS THE FEDERAL GOVERNMENT TREATING
00:22:28 SOME OF THESE? ARE THEY IT BECAUSE THERE'S
00:22:31 MANY GRANTS AND THINGS THAT WERE PULLED BACK AND I BUT THEN
00:22:34 WE HAVE SOME THINGS TOO LIKE RYAN WHITE FUNDING WHERE
00:22:36 THERE'S THEY'RE STILL ON BOARD. YEAH.
00:22:38 HOW IS FEDERAL SUPPORT DONE IN THIS REALM?
00:22:42 >> I MEAN THERE YEAH SO THERE IS THERE HAS BEEN I THINK
00:22:45 INITIALLY A LOT OF FUNDING CUT FROM OFFICE OF SOME VIOLENCE
00:22:49 AGAINST WOMEN. YOU KNOW UNFORTUNATELY A LOT OF
00:22:50 I THINK FUNDING FOR VICTIM VICTIM ADVOCATES VICTIM
00:22:53 SUPPORTS. BUT THERE IS STILL YOU KNOW,
00:22:58 THERE IS STILL FUNDING THERE TO SUPPORT JUSTICE AGENCIES
00:23:01 AND COORDINATING TIME. FORTUNATELY BUT YEAH, OKAY,
00:23:09 GREAT. WE APPRECIATE YOUR WORK ON
00:23:10 THIS. I DON'T THINK WE HAVE ANY MORE
00:23:13 QUESTIONS OR COMMENTS AND WE HAVE NO BAILEY REPORT ON THIS
00:23:16 ONE. SO AT THIS TIME WHY DON'T WE
00:23:17 INVITE A PUBLIC COMMENT? THANKS.
00:23:18 THANK YOU. >> YES, WE'RE OPENING PUBLIC
00:23:21 COMMENT FOR THIS ITEM NUMBER FOUR.
00:23:23 IF WE HAVE ANY MEMBERS OF THE PUBLIC WISH TO ADDRESS THIS
00:23:25 COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS.
00:23:28 >> THANK YOU. JUST RECORD PUBLIC COMMENT ON
00:23:29 THIS ITEM IS NOW CLOSED TO ME AND AT THIS TIME I WOULD MOVE
00:23:31 TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH
00:23:35 OUR POSITIVE RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
00:23:39 CALL IN THAT MOTION? >> YES.
00:23:40 AND ON THAT MOTION THAT WE REFER TO THE FULL BOARD WITH
00:23:42 RECOMMENDED VICE CHAIR CHEN CHEN.
00:23:44 >> CHAIR DORSEY. ALL RIGHT.
00:23:45 DORSEY I WAVE TO US. >> THANK YOU, MR. CLERK.
00:23:48 THE MOTION PASSES AND CAN WE NOW CALL UP ITEM NUMBER FIVE?
00:23:53 YES, I KNOW NUMBER FIVE IS A RESOLUTION APPROVING A PORT
00:23:57 COMMISSION LEASE WITH NORCAL RENTAL GROUP LLC FOR
00:24:01 APPROXIMATELY 45,000FT2 OF PAVED LAND AT PIER 96 FOR THE
00:24:05 STORAGE AND PARKING OF CONSTRUCTION RELATED VEHICLES
00:24:08 AND EQUIPMENT. THE TERM IS EFFECTIVE UPON
00:24:09 APPROVAL OF THIS RESOLUTION AND COMPLETION OF PORT'S PIER
00:24:13 96 GATEHOUSE PROJECT WITH AN INITIAL LEASE TERM OF FIVE
00:24:19 YEARS WITH TWO OPTIONS TO EXTEND THE TERM FOR A TOTAL OF
00:24:23 FIVE ADDITIONAL YEARS HAD A MONTHLY BASE RENT OF
00:24:26 APPROXIMATELY 32,000 SUBJECT TO ANNUAL 3% INCREASES FOR BOTH
00:24:30 THE INITIAL AND EXTENDED TERMS AND WITH A TOTAL BASE RENT OF
00:24:31 APPROXIMATELY 4.3 MILLION OVER THE FULL EXTENDED TERM.
00:24:34 >> MR. CHAIR THANK YOU, MR. CLERK.
00:24:38 >> AND WE ARE JOINED BY MRS. KIM BEALL, ASSISTANT DEPUTY
00:24:42 DIRECTOR OF REAL ESTATE FOR THE PORT OF SAN FRANCISCO.
00:24:43 MISS BEAL WE WELCOME YOU TO THE FINANCE BUDGET AND FINANCE
00:24:47 COMMITTEE. >> THE FLOOR IS YOURS.
00:24:47 THANK YOU AND GOOD MORNING SUPERVISORS AGAIN MY NAME IS
00:24:50 KIMBERLY BEAL, ASSISTANT DEPUTY DIRECTOR FOR REAL ESTATE WITH
00:24:54 THE PORT. AND TODAY I'M HERE SEEKING
00:24:57 APPROVAL OF A PROPOSED LEASE WITH NORCAL RENTAL GROUP ALSO
00:25:01 KNOWN AS CRESCO FOR LEASE NUMBER L17432.
00:25:09 >> SO TO PROVIDE A LITTLE BACKGROUND, CRESCO IS AN
00:25:13 EXISTING PORT TENANT AT PIER 96 UTILIZING PAVED LAND FOR
00:25:17 STORAGE AND PARKING CONSTRUCT STORAGE AND CONSTRUCTION
00:25:21 RELATED VEHICLES AND EQUIPMENT .
00:25:25 THEIR CURRENT LEASE COVERS APPROXIMATELY 15,870FT2 WHICH
00:25:29 BEGAN IN MAY OF 2025 AFTER TEMPORARILY RELOCATED TO
00:25:37 ACCOMMODATE THE PORT'S PIER 96 GATEHOUSE DEMOLITION PROJECT
00:25:41 AND HAS BEEN IN HOLD OVER SINCE APRIL 30TH OF THIS YEAR.
00:25:47 >> TO PROVIDE YOU WITH SOME OF THE KEY TERMS OF THE PROPOSED
00:25:51 NEW LEASE THE PREMISES WILL BE APPROXIMATELY 44,750FT2 OF
00:25:58 PAVED LAND STILL AT PIER 96. THE USE WILL REMAIN THE SAME
00:26:04 WHICH IS STORAGE AND PARKING FOR CONSTRUCTION RELATED
00:26:06 VEHICLES AND EQUIPMENT. THE LEASE TERM IS FIVE YEARS
00:26:10 WITH ONE THREE YEAR OPTION AND A SUBSEQUENT TWO YEAR
00:26:16 OPTION TO EXTEND THE GATE HOUSE DEMOLITION PROJECT HAS BEEN
00:26:20 COMPLETED SO THE COMMENCEMENT OF THIS AGREEMENT WOULD BE THE
00:26:24 FIRST DAY OF THE MONTH FOLLOWING THE BOARD'S APPROVAL
00:26:30 IN THE FIRST YEAR. >> THE RENT FOR THIS AGREEMENT
00:26:34 IS APPROXIMATELY $32,000 PER MONTH WHICH EQUATES TO $0.71
00:26:38 PER SQUARE FOOT ON A MONTHLY BASIS WHICH IS WITHIN THE
00:26:42 APPROVED PARAMETER RENTS BY THE PORT COMMISSION.
00:26:46 OVER THE INITIAL TERM THIS TOTALS ABOUT 2 MILLION AND IF
00:26:51 BOTH OPTIONS ARE EXERCISED IT WOULD BE UP TO ABOUT 4.3
00:26:57 MILLION OVER THE FULL TERM. I THINK IT'S IMPORTANT TO
00:27:01 MENTION THAT UNDER THE PORT'S SOUTHERN WATERFRONT
00:27:03 BEAUTIFICATION POLICY WHICH RECOGNIZES THE CONCENTRATION OF
00:27:06 MARITIME AND INDUSTRIAL USES ALONGSIDE THE EASTERN
00:27:10 NEIGHBORHOODS PARKS, WETLANDS, PUBLIC SHORELINE 6.5% OF THE
00:27:17 REVENUE GENERATED BY THE LEASE WILL BE ALLOCATED TO THE PORT'S
00:27:21 SOUTHERN WATERFRONT BEAUTIFICATION FUND.
00:27:22 >> THE FUNDS ARE USED BY THE PORT FOR BROADER PUBLIC
00:27:26 AND WATERFRONT IMPROVEMENTS IN THE SOUTHERN WATERFRONT SUCH
00:27:30 AS FOUR PARKS OPEN SPACE WETLANDS REMOVAL OF
00:27:33 DETERIORATED PIERS AND HISTORIC PRESERVATION ENSURING THAT
00:27:37 INDUSTRIAL AND MARITIME TENANTS CONTRIBUTE TO THE SURROUNDING
00:27:40 COMMUNITIES AND WATERFRONT RATHER THAN DETRACT FROM THEM.
00:27:46 >> SO IN SUMMARY THE LEASE RETURNS CRISCO TO ITS ORIGINAL
00:27:53 PIER 96 AREA FOLLOWING THE GATEHOUSE DEMOLITION PROJECT.
00:27:57 IT EXPANDS THE PREMISES FROM 15,870FT2 TO APPROXIMATELY
00:28:03 44,750 SQUARE FEET. THE LEASE PROVIDES A FIVE YEAR
00:28:07 INITIAL TERM AND STABLE RENTAL INCOME FOR THE PORT.
00:28:11 THE LEASE TERMS COMPLY WITH THE PORT COMMISSION'S SCHOOL YEAR
00:28:18 2628 LEASING PARAMETERS. AND THIS CONCLUDES MY
00:28:22 PRESENTATION. THANK YOU FOR YOUR ATTENTION
00:28:26 AND I'M AVAILABLE FOR ANY QUESTIONS.
00:28:27 ALL RIGHT. >> THANKS SO MUCH, MISS BEALE.
00:28:30 NEXT WE'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYSTS MS..
00:28:32 MELNYK THE FLOOR IS YOURS. >> ITEM FIVE IS A PROPOSED
00:28:34 RESOLUTION TO APPROVE A NEW LEASE WITH NORCAL RENTAL GROUP
00:28:38 LLC, ALSO KNOWN AS CRESCO FOR APPROXIMATELY 45,000FT2 OF
00:28:44 PAVED LAND AT PIER 96. IT HAS AN INITIAL TERM OF FIVE
00:28:48 YEARS AND OPTIONS TO EXTEND FOR ANOTHER FIVE YEARS.
00:28:50 CRESCO CURRENTLY LEASES PAID LAND ADJACENT TO PIER 96
00:28:54 AND STORES CONSTRUCTION EQUIPMENT AND VEHICLES ON SITE
00:28:58 . UNDER THE NEW LEASE THEY WOULD
00:28:59 RETURN TO A SITE AT PIER 96 AND EXPAND THE SIZE OF THEIR
00:29:02 SITE TO 45 THOUSAND SQUARE FEET.
00:29:05 THE TENANT WOULD PAY ANNUAL BASE RENT OF APPROXIMATELY
00:29:08 $381,000 WHICH IS ABOUT $8.52 PER SQUARE FOOT.
00:29:15 >> THAT IS BASED ON THE PORT'S STANDARD RENTAL RATE FOR PAVED
00:29:17 LAND AND ALSO WITH A 5% DISCOUNT BECAUSE THE SITE
00:29:23 QUALIFIES FOR THE PORT'S LARGELY IN DISCOUNT WHICH IS A
00:29:27 PORT WIDE POLICY. THE LEASE WOULD GENERATE
00:29:32 APPROXIMATELY 2 MILLION IN REVENUES OVER THE INITIAL
00:29:36 FIVE YEAR TERM AND ABOUT 4.3 MILLION OVER THE TOTAL
00:29:37 POTENTIAL TEN YEAR TERM AS SHOWN ON PAGE 14 OF OUR REPORT.
00:29:43 AS MENTIONED BY PORT STAFF, 6.5% OF LEASE REVENUES WOULD
00:29:47 ACCRUE TO THE PORT'S SOUTHERN WATERFRONT COMMUNITY BENEFITS
00:29:50 AND BEAUTIFICATION FUNDS AND ALL OTHER REMAINING
00:29:51 REVENUES WOULD ACCRUE TO THE PORT HARBOR FUND.
00:29:54 >> WE RECOMMEND APPROVAL OF ITEM FIVE.
00:29:57 >> GREAT. THANKS SO MUCH.
00:30:00 THIS LOOKS STRAIGHT FORWARD TO ME.
00:30:01 GOOD WORK. I DON'T THINK THERE'S ANYBODY
00:30:02 WITH QUESTIONS OR COMMENTS. SO THANK YOU SO MUCH FOR YOUR
00:30:06 PRESENTATION AND THANK YOU FOR YOUR ANALYSIS TO THE BOE.
00:30:09 >> AND AT THIS TIME WHY DON'T WE INVITE A PUBLIC COMMENT?
00:30:10 YES, WE'RE OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER
00:30:13 FIVE. IF WE HAVE ANY MEMBERS OF THE
00:30:15 PUBLIC OR SHOULD ADDRESS THIS COMMITTEE.
00:30:19 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:30:20 THANK YOU, MR. CLERK PUBLIC COMMENT ON THIS ITEM IS NOW
00:30:23 CLOSED. AND AT THIS TIME I WOULD MOVE
00:30:24 TO FORWARD THIS ITEM TO THE BOARD OF SUPERVISORS WITH OUR
00:30:28 POSITIVE RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
00:30:31 CALL ON THAT MOTION? YES.
00:30:32 AND ON THAT MOTION TO REFER TO THE FULL BOARD WITH
00:30:33 RECOMMENDATION AND VICE CHAIR CHEN CHEN AND CHAIR DORSEY
00:30:36 DORSEY WE HAVE TWO EYES. >> THE MOTION PASSES.
00:30:40 WE'RE ACTUALLY GOING TO THE PORT.
00:30:43 MR. CLERK, CAN WE PLEASE CALL UP ITEM NUMBER SIX?
00:30:47 YES. ITEM NUMBER SIX IS A RESOLUTION
00:30:48 RETROACTIVELY AUTHORIZING THE DEPARTMENT OF PUBLIC HEALTH TO
00:30:51 ACCEPT AND EXPEND MODIFICATION NUMBER THREE FOR A GRANT
00:30:54 INCREASE OF APPROXIMATELY 72 THOUSAND FROM THE NATIONAL
00:30:57 INSTITUTES OF HEALTH THROUGH THE FAMILY HEALTH INTERNATIONAL
00:31:01 FOR PARTICIPATION IN A PROGRAM ENTITLED HIV PREVENTION
00:31:05 PREVENTION TRIALS NETWORK, HPT AND FOR THE PERIOD OF DECEMBER
00:31:10 1ST, 2025 THROUGH NOVEMBER 30TH 2026 AND A TOTAL GRANT AMOUNT
00:31:16 OF APPROXIMATELY 181,000 FOR THE TOTAL GRANT PERIOD OF APRIL
00:31:20 1ST 2024 THROUGH NOVEMBER 30TH 2026 AND TO AUTHORIZE THE
00:31:23 DIRECTOR OF HEALTH TO ENTER INTO AMENDMENTS OR
00:31:27 MODIFICATIONS TO THE GRANT AGREEMENT THAT DO NOT
00:31:28 MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES TO
00:31:30 THE CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSES OF THE
00:31:35 GRANT FOR THIS RESOLUTION. >> MR. CHAIR.
00:31:37 >> THANK YOU, MR. CLERK. WE ARE JOINED BY DR. HYMAN
00:31:39 SCOTT WITH THE SAN FRANCISCO DEPARTMENT OF PUBLIC HEALTH.
00:31:42 DR. SCOTT, WE WELCOME YOU TO THE BUDGET AND FINANCE
00:31:44 COMMITTEE. >> THE FLOOR IS YOURS.
00:31:45 THANK YOU. I APPRECIATE THE OPPORTUNITY TO
00:31:48 PRESENT THIS TO THE SUPERVISORS TODAY.
00:31:49 SO THIS IS A GRANT EXCEPT AN EXTEND REQUEST FROM THE
00:31:53 NATIONAL INSTITUTES OF HEALTH THROUGH THE FAMILY HEALTH
00:31:56 INTERNATIONAL FOR THE HIV PREVENTION TRIALS NETWORK.
00:32:00 AND THIS GRANT AMOUNT WAS ORIGINALLY 181,434 WITH THE
00:32:06 GRANT INCREASE AMOUNT OF 72,466.
00:32:09 THE TIMELINE IS THROUGH DECEMBER 1ST TO 2025 THROUGH
00:32:16 NOVEMBER 30TH OF THIS YEAR. AND THIS GRANT WILL SUPPORT THE
00:32:19 CLINICAL RESEARCH TRIAL THAT IS DESIGNED TO EVALUATE THE IMPACT
00:32:23 OF SEVERAL OF OUR MOBILE HEALTH TOOLS ON HIV AND STI PREVENTION
00:32:27 UPTAKE AND PERSISTENCE. THE INVESTIGATORS THAT WILL
00:32:32 LEAD THE PROTOCOL ARE LEADING THE PROTOCOL DEVELOPMENT
00:32:33 AND IMPLEMENTATION OF THESE OF THIS RESEARCH ACROSS MULTIPLE
00:32:37 SITES BOTH IN THE U.S. AND INTERNATIONALLY.
00:32:43 WE ARE SEEKING RETROACTIVE AUTHORIZATION TO ACCEPT THIS
00:32:46 GRANT. WE HAVE RECEIVED SEVERAL
00:32:47 INCREASES ON THIS GRANT WHICH IS ON A MULTIYEAR CYCLE FROM
00:32:53 2024. I RECEIVED NOTICE OF THE MOST
00:32:54 RECENT INCREASE IN GRANT FUNDS IN ON JUNE 18TH OF THIS YEAR
00:33:00 FOR A PROJECT START DATE THAT WAS RETROACTIVE TO DECEMBER 1ST
00:33:03 OF 2025. WE HAVE BROUGHT THIS ITEM TO
00:33:07 THE BOARD OF SUPERVISORS AFTER GOING THROUGH THE FISCAL
00:33:08 APPROVALS PROCESS INCLUDING THE COMPTROLLER'S OFFICE REVIEW
00:33:11 AND APPROVAL. SO I'M HAPPY TO ANSWER ANY
00:33:15 QUESTIONS ABOUT THIS GRANT EXCEPT IN EXTENT.
00:33:18 >> THANK YOU. THANK YOU, DOCTOR.
00:33:19 I DON'T HAVE ANY QUESTIONS OTHER THAN JUST TO SAY THAT,
00:33:22 YOU KNOW, PREP HAS BEEN ONE OF THE MOST EFFECTIVE TOOLS THAT
00:33:25 WE HAVE TO PREVENT HIV AND WE HOPE FULFILL THE PROMISE OF
00:33:29 GETTING TO ZERO, WHICH IS SAN FRANCISCO'S AMBITIOUS
00:33:33 AND WORTHWHILE INITIATIVE TO END THE HIV EPIDEMIC IN ITS
00:33:36 IN OUR CITY. ITS ASPIRATIONAL OBJECTIVE IS
00:33:40 ZERO NEW INFECTIONS OF HIV ZERO PREVENTABLE HIV RELATED DEATHS
00:33:46 AND ZERO STIGMA AND DISCRIMINATION.
00:33:48 >> I THINK AS A PRACTICAL MATTER DUE TO THESE STATED
00:33:51 GOALS WHICH IS TO REDUCE HIV TRANSMISSION AND PREVENTABLE
00:33:55 DEATHS BY 90% WHILE IMPROVING THE QUALITY OF LIFE FOR PEOPLE
00:33:56 LIVING WITH HIV. AND I THINK AMONG OTHER CITY
00:33:59 DEPARTMENTS I THINK THAT'S GOING TO BE YOU KNOW, AS WE
00:34:02 HAVE A POPULATION OF PEOPLE WHO ARE AGING WITH HIV, THAT'S
00:34:04 SOMETHING THAT WE'RE GOING HAVE TO BE MORE AND MORE FOCUSED ON.
00:34:06 I'M VERY PROUD THAT SAN FRANCISCO HAS BEEN A NATIONAL
00:34:10 LEADER IN HIV PREVENTION AND TREATMENT FROM THE EARLIEST
00:34:14 DAYS IN THE CONTINUED FEDERAL INVESTMENT FROM AI IS ESSENTIAL
00:34:21 TO SUSTAINING THAT PROGRESS. I COULD ASK ARE WE YOU KNOW AS
00:34:25 AS I DO WITH FEDERAL SUPPORT IT'S MY UNDERSTANDING THAT THE
00:34:27 FEDERAL THIS HAS ENJOYED BIPARTISAN SUPPORT
00:34:29 AND HOPEFULLY THAT CONTINUES AT A TIME WHEN THE FEDERAL PUBLIC
00:34:33 HEALTH FUNDING CAN CAN HAVE SOME UNCERTAINTY.
00:34:37 WE SHOULD BE CLEAR ABOUT THE VALUE OF THESE PARTNERSHIPS
00:34:41 AND THE IMPORTANCE OF PROTECTING THEM.
00:34:42 SO I'M GRATEFUL THAT THIS FUNDING WILL ALLOW TO CONTINUE
00:34:45 CONTRIBUTING ITS EXPERTISE TO HIV AND STI PREVENTION RESEARCH
00:34:49 GENERALLY. >> I'M HAPPY TO SUPPORT
00:34:53 AND CO-SPONSOR THIS. SO THANK YOU FOR ALL YOUR WORK
00:34:56 ON IT. >> THANK YOU.
00:34:57 THANKS. AND AT THIS TIME WHY DON'T WE
00:35:00 INVITE OUR PUBLIC COMMENT ON THIS ITEM?
00:35:01 >> YES. IF WE HAVE ANY MEMBERS OF THE
00:35:02 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE REGARDING THIS ITEM
00:35:06 NUMBER SIX NOW IS OUR OPPORTUNITY.
00:35:10 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:35:11 THANK YOU. SECOND PUBLIC COMMENT ON THIS
00:35:12 ITEM IS NOW CLOSED. AND AT THIS TIME I WOULD MOVE
00:35:14 TO FORWARD THIS ITEM TO THE FULL BOARD OF SUPERVISORS WITH
00:35:17 OUR POSITIVE RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
00:35:21 CALL ON THAT MOTION? YES.
00:35:21 AND ON THAT MOTION THAT WE REFER TO THE FULL BOARD WITH
00:35:24 RECOMMENDATION VICE CHAIR CHEN CHEN CHAIR DORSEY I DON'T SEE
00:35:28 WHY WE HAVE TO US. >> THANK YOU, MR. CLERK.
00:35:29 MOTION PASSES. >> CONGRATULATIONS, MR. CLERK.
00:35:35 CAN WE CALL UP ITEM NUMBER SEVEN?
00:35:39 YES. ITEM NUMBER SEVEN IS A
00:35:40 RESOLUTION RETROACTIVELY AUTHORIZING THE DEPARTMENT OF
00:35:43 PUBLIC HEALTH TO ACCEPT AND EXPEND GRANT FUNDS
00:35:46 AUTHORIZING DPS TO ENTER INTO A GRANT AGREEMENT FOR A TERM
00:35:50 COMMENCING ON THE EXECUTION OF THE GRANT AGREEMENT THROUGH
00:35:53 JUNE 30TH 2030 BETWEEN THE CITY AND COUNTY ACTING BY
00:35:57 AND THROUGH GBH AND THE CALIFORNIA DEPARTMENT OF HEALTH
00:35:58 CARE SERVICES UNDER THE BOND BEHAVIORAL HEALTH CONTINUUM
00:36:02 INFRASTRUCTURE PROGRAM CAP ROUND TO BUY IN THROUGH ITS
00:36:08 THIRD PARTY ADMINISTRATOR. ADVOCATES FOR HUMAN POTENTIAL
00:36:10 INC HAVING ANTICIPATED REVENUE OF APPROXIMATELY 14.2 MILLION
00:36:15 INCLUDING A PROVISION ALLOWING ALLOWING FOR THE RECAPTURE OF
00:36:19 ALLOWABLE PROJECT EXPENSES INCURRED BEGINNING ON MARCH
00:36:23 11TH, 2026 INCLUDING A RECORDED DECLARATION OF RESTRICTIONS AT
00:36:27 415 TRADEWINDS AVENUE AUTHORIZING THE GRANTOR TO
00:36:31 APPLY FOR A RECEIVER IN THE EVENT OF THE CITY'S DEFAULT
00:36:34 AND AUTHORIZING VPA TO ENTER INTO AMENDMENTS OR
00:36:38 MODIFICATIONS TO THE GRANT AGREEMENT THAT DID NOT
00:36:40 MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES OF
00:36:42 THE CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSE OF THE
00:36:46 GRANT. >> MR. CHAIR.
00:36:47 THANK YOU, MR. CLERK. WE ARE JOINED BY DR. KELLY HOM
00:36:50 SUBSTANCE USE DISORDER SYSTEM OF CARE DIRECTOR AT THE SAN
00:36:54 FRANCISCO DEPARTMENT OF PUBLIC HEALTH.
00:36:55 >> DR. HOM WE WELCOME YOU TO THE BUDGET AND FINANCE
00:36:58 COMMITTEE AND THE FLOOR IS YOURS.
00:36:59 >> THANKS SO MUCH. SO GOOD MORNING CHAIR DORSEY
00:37:01 AND VICE CHAIR CHEN. >> MY NAME IS KELLY HARM AND I
00:37:05 AM THE DIRECTOR OF SUBSTANCE USE SERVICES.
00:37:08 >> I'M HERE TO REQUEST APPROVAL TO ACCEPT AND EXPAND THE BOND
00:37:12 BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE OR PROGRAM OR
00:37:16 BOND B CHIP FOR SHORT ROUND TO GRANT THE BOND B CHIP ROUND TO
00:37:24 PROVIDES A LITTLE OVER $14 MILLION TOWARDS THE
00:37:25 CONSTRUCTION OF A BUILDING IN TREASURE ISLAND THE
00:37:29 BEHAVIORAL HEALTH THAT WILL BE USED FOR BEHAVIORAL HEALTH.
00:37:33 THIS INCLUDES 10% MATCHING FUNDS FROM THE 2020 HEALTH
00:37:36 AND RECOVERY BOND AND ELIGIBLE SUNK FUNDS SUNK COSTS.
00:37:39 >> THE GRANT TIMELINE IS MARCH 11TH, 2026 THROUGH JUNE 30TH
00:37:48 2030. THE FUNDER IS DHS OR THE
00:37:49 DEPARTMENT OF HEALTH CARE SERVICES AND THE GRANT IS
00:37:53 ADMINISTERED ON THEIR BEHALF BY THE ADVOCATES FOR HUMAN
00:37:56 POTENTIAL OR AHP. H IS SEEKING RETROACTIVE
00:38:00 APPROVAL OF NON STANDARD TERMS FOR THIS GRANT.
00:38:04 JUST TO NOTE THAT THE BOARD HAS PREVIOUSLY AUTHORIZED TO APPLY
00:38:07 FOR THE BOND B CHIP GRANT IN OCTOBER OF 2025.
00:38:13 >> THE PROJECT IS FOR GROUND UP CONSTRUCTION OF 120 UNIT
00:38:20 BEHAVIORAL HEALTH FACILITY LOCATED IN DISTRICT SIX AT 415
00:38:24 TRADEWINDS AVENUE ON TREASURE ISLAND.
00:38:28 THIS REPRESENTS A MAXIMUM CAPACITY OF 300 BEDS.
00:38:33 44 OF THOSE BEDS WOULD BE DESIGNATED FOR SUBSTANCE USE
00:38:34 RESIDENTIAL TREATMENT AND THEN THE SITE CAN ACCOMMODATE UP TO
00:38:40 256 TRANSITIONAL RECOVERY HOUSING OTHERWISE KNOWN AS
00:38:41 RESIDENTIAL STEPDOWN BEDS. CONSTRUCTION IS ANTICIPATED TO
00:38:47 START NOVEMBER 2026 AND THE PROJECT WILL CONTINUE THROUGH
00:38:54 JUNE 2028. THE PARTNERS INCLUDE TREASURE
00:38:58 ISLAND DEVELOPMENT AUTHORITY, THE MAYOR'S OFFICE OF HOUSING,
00:39:02 COMMUNITY DEVELOPMENT, MERCY HOUSING AND HEALTH RATE 360.
00:39:09 >> JUST A NOTE ON OR TO PROVIDE FURTHER EXPLANATION OF THE
00:39:10 RETROACTIVE NATURE OF THIS REQUEST RECEIVED NOTICE OF THE
00:39:14 CONDITIONAL AWARD ON MARCH 11TH, 2026.
00:39:17 WE WERE AND WE ARE ABLE TO RECOUP FUNDS ANY REIMBURSEMENT
00:39:24 FOR A PROJECT COST RETROACTIVE TO THAT DATE.
00:39:27 THEN DHS SENT THE BOND B CHIP ROUND TO GRANT AGREEMENT TO US
00:39:33 ON AUGUST 20TH, 26 AND IS NOW BRINGING THIS ITEM TO THE BOARD
00:39:39 . AFTER GOING THROUGH THE FISCAL
00:39:40 APPROVAL PROCESS, THE CITY ATTORNEYS AND THE COMPTROLLER'S
00:39:41 OFFICE REVIEW SO WE ARE SEEKING APPROVAL FOR THE STATE'S
00:39:49 NONSTANDARD TERMS FOR THIS AGREEMENT AND THE BOARD HAS
00:39:52 APPROVED SIMILAR NONSTANDARD TERMS IN PAST B CHIP GRANTS.
00:39:57 SO THIS INCLUDES AGREEING TO RECORD A DECLARATION OF
00:40:01 RESTRICTIONS WHERE WE WOULD OPERATE THIS SITE IN COMPLIANCE
00:40:06 WITH THE BOND B CHIP TERMS OF 30 YEARS.
00:40:08 AUTHORIZES DHS TO APPLY FOR A RECEIVER FOR THE PROPERTY
00:40:13 IN THE EVENT OF A DEFAULT AND AUTHORIZE AND OBLIGATE THE
00:40:16 CITY TO DEFEND, INDEMNIFY AND HOLD US AND AHP HARMLESS
00:40:26 AGREES WITH THE RECOMMENDATION RESPECTS RESPECTFULLY REQUEST
00:40:31 APPROVAL OF THIS PROJECT. >> GREAT THANK YOU SO MUCH.
00:40:34 WE HAVE A BUDGET LEGISLATIVE ANALYST REPORT ON THIS ITEM.
00:40:38 >> MR. MENARD THE FLOOR IS YOURS.
00:40:39 ITEM SEVEN IS A RESOLUTION THAT APPROVES A GRANT AGREEMENT WITH
00:40:45 THE CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES PROVIDING
00:40:46 APPROXIMATELY $14.2 MILLION TO THE SAN FRANCISCO DEPARTMENT OF
00:40:49 PUBLIC HEALTH. WITH THIS THIS FUNDING WILL
00:40:53 FUND THE CONSTRUCTION OF 44 RESIDENTIAL SUBSTANCE USE
00:40:57 TREATMENT BEDS WHICH WILL BE PART OF A LARGER COMPLEX THAT
00:41:01 INCLUDES ANOTHER 256 TRANSITIONAL STEPDOWN BEDS.
00:41:07 WE SHOWED THE PROJECT FOR THAT 300 BED SITE ON PAGE 22 OF OUR
00:41:11 REPORT YOU'LL SEE THAT THE TOTAL COSTS TO CONSTRUCT
00:41:15 AND FURNISH THE SITE ARE $80.5 MILLION.
00:41:18 THIS GRANTS PROVIDING $13.5 MILLION OF THE FUNDING FOR
00:41:25 THOSE COSTS AND THEN THE CITY IS PUTTING IN MOST OF THE
00:41:29 REMAINING FUNDS EXCEPT FOR ANOTHER APPROXIMATELY $10
00:41:32 MILLION STATE GRANT. >> THE THE BEDS WILL HAVE AN
00:41:36 ONGOING COST TO THE CITY ONCE THEY'RE OPERATIONAL WHICH IS
00:41:39 EXPECTED AT THE END OF 2028. ESTIMATES THAT THE BEDS WILL
00:41:43 COST ABOUT $4.9 MILLION A YEAR. ABOUT 80% OF THAT WOULD BE
00:41:49 REIMBURSED BY MEDI-CAL LEAVING ABOUT $1 MILLION A YEAR THAT
00:41:53 WOULD HAVE TO BE LOCALLY FUNDED.
00:41:56 WE RECOMMEND APPROVAL OF ITEM SEVEN.
00:41:57 GREAT. THANK YOU, MR. MAYNARD.
00:42:00 >> A QUICK QUESTION ON THE MEDI-CAL REIMBURSEMENT IS THAT
00:42:04 IT'S MY UNDERSTANDING THAT SOME OF THE CHANGES THAT ARE COMING
00:42:08 IN JANUARY WERE BECAUSE OF H.R. ONE THAT EFFECT THE MEDI-CAL
00:42:13 THE MEDICAID FUNDING FROM THAT REIMBURSEMENT THAT WE'RE GOING
00:42:20 TO BE OKAY ON THAT. WHEN IT COMES TO SUBSTANCE USE
00:42:21 DISORDER. CAN I JUST CONFIRM THAT?
00:42:24 >> IS THAT YOUR UNDERSTANDING AS WELL?
00:42:27 >> DR.. SO IN TERMS OF THE THE CHANGES
00:42:31 TO H.R. ONE IS MORE ABOUT IN THE PEOPLE'S NEEDING TO
00:42:35 MAINTAIN THEIR ELIGIBILITY AND RATHER THAN THE RATES THAT
00:42:42 ARE SET BY THC US, THE RATES ARE EXPECTED TO REMAIN AND THEY
00:42:46 HAVE STEADILY INCREASED BY 2 OR 3% EVERY YEAR.
00:42:50 SO WE WOULD ANTICIPATE THE RATE OF REIMBURSEMENT TO TO FOLLOW
00:42:55 THAT SAME TREND. OKAY.
00:42:58 >> OKAY. I AM VERY PROUD TO SUPPORT THIS
00:43:00 ITEM AND I WANT TO PUT IT IN THE CONTEXT OF SOMETHING
00:43:03 THAT HAS BEEN A PRIORITY FOR ME SINCE FIRST JOINING THE BOARD
00:43:06 OF SUPERVISORS WAS CANDIDLY IT WAS THE REASON I ASKED TO JOIN
00:43:10 THE BOARD OF SUPERVISORS AND THAT'S WHAT WE NEED TO DO
00:43:13 TO SUPPORT AND INCENTIVIZE RECOVERY FOR PEOPLE STRUGGLING
00:43:17 WITH ADDICTION. I TALK A LOT ABOUT RECOVERY
00:43:18 IN THIS ROLE BECAUSE OF WHAT IT MEANS TO ME BUT ALSO BECAUSE OF
00:43:22 WHAT I HAVE SEEN IT MEAN TO OTHER PEOPLE IN THEIR LIVES.
00:43:25 I KNOW THAT IT DOESN'T HAPPEN BECAUSE LOCAL GOVERNMENT SAYS
00:43:28 THE RIGHT THINGS OR JUST ENACTS THE RIGHT POLICIES.
00:43:32 AT THE END OF THE DAY WE NEED EXPERTS LIKE YOU AND WE NEED
00:43:35 THE INFRASTRUCTURE AND THE FUNDING TO MAKE SURE THAT WE'RE
00:43:37 DELIVERING ON THE PROMISE OF RECOVERY AND THAT MEANS HAVING
00:43:40 TREATMENT BEDS AVAILABLE WHEN SOMEBODY IS READY TO SAY YES IT
00:43:44 MEANS HAVING SOMEWHERE SAFE AND SUPPORTIVE TO GO AFTER
00:43:45 TREATMENT AND IT MEANS BUILDING A SYSTEM WHERE RECOVERY IS NOT
00:43:48 JUST SOMETHING WE HOPE FOR PEOPLE TO FOR PEOPLE TO DO.
00:43:51 IT'S SOMETHING OUR PUBLIC HEALTH SYSTEM IS IS ORGANIZED
00:43:55 AND FUNDED TO ACHIEVE. HOPEFULLY I WILL SAY TREASURE
00:43:58 ISLAND HAS BECOME AN INCREDIBLY IMPORTANT PART OF THAT VISION.
00:44:03 THERE IS A REAL AND VIBRANT RECOVERY COMMUNITY THERE.
00:44:07 I THINK WE SHOULD RECOGNIZE AND CELEBRATE WHAT HAS REALLY
00:44:11 BEEN BUILT ON THAT ISLAND PEOPLE SUPPORTING ONE ANOTHER,
00:44:14 REBUILDING THEIR LIVES AND DEMONSTRATING EVERY DAY
00:44:16 THAT RECOVERY IS POSSIBLE. IT'S INTERESTING HOW MANY TIMES
00:44:19 I JUST HEAR PEOPLE ARE THEY DON'T WANT TO LEAVE THE ISLAND.
00:44:23 YOU KNOW, IT REALLY IS A IT'S A IT'S AN AMAZING COMMUNITY OUT
00:44:26 THERE, ESPECIALLY IN THE RECOVERY COMMUNITY.
00:44:30 >> SO I KNOW THAT THIS IS SOMETHING THAT'S GOING TO BE
00:44:31 SET UP FOR SUCCESS FROM THE COMMUNITY.
00:44:33 WHAT I PARTICULARLY LIKE ABOUT THIS PROJECT IS THAT WE'RE
00:44:35 BUILDING ON THAT COMMUNITY AND CREATING A REAL A TRUE
00:44:38 CONTINUUM OF CARE. WHAT TAKES ME MOST IS WHAT
00:44:41 HAPPENS AFTER TREATMENT. WE KNOW THAT THE TRANSITION OUT
00:44:45 OF RESIDENTIAL TREATMENT CAN BE ONE OF THE MOST VULNERABLE
00:44:49 POINTS IN SOMEONE'S RECOVERY PUTTING TREATMENT
00:44:50 AND TRANSITIONAL RECOVERY HOUSING TOGETHER ON THE SAME
00:44:53 CAMPUS. I THINK GIVES PEOPLE A REAL
00:44:56 OPPORTUNITY TO CONTINUE BUILDING STABILITY.
00:44:58 COMMUNITY RECOVERY. HOPEFULLY WE'RE SUPPORTING
00:45:01 PEOPLE TO WHO WHO MAY WANT TO BECOME DRUG COUNSELORS BECAUSE
00:45:05 THAT'S SOMETHING I HAVE SEEN INCREASINGLY AS PEOPLE GET ON
00:45:08 THE OTHER SIDE OF THEIR ADDICTION TO FIND A WAY REAL
00:45:12 MEANING IN GIVING BACK AS DRUG TREATMENT COUNSELORS
00:45:15 THEMSELVES. I'VE SAID MANY TIMES THAT
00:45:16 RECOVERY SHOULD BE THE ORGANIZING PRINCIPLE OF OUR
00:45:19 RESPONSE TO THE DRUG CRISIS AND THAT REQUIRES TREATMENT ON
00:45:23 DEMAND. >> SO I JUST APPRECIATE ALL
00:45:24 YOUR WORK. >> AS I SAID, TREASURE ISLAND
00:45:27 IS ONE OF THOSE PLACES WHERE WE CAN SHOW WHAT A RECOVERY
00:45:31 ORIENTED SYSTEM LOOKS LIKE. I'M PROUD THAT THIS PROJECT IS
00:45:32 IN MY DISTRICT AND GRATEFUL FOR THE STATE'S INVESTMENT.
00:45:35 I'M VERY HAPPY FOR YOUR WORK ON IT.
00:45:39 >> THANK YOU FOR TO THE VLA FOR YOUR ANALYSIS OF IT AND AT THIS
00:45:40 TIME WHY DON'T WE INVITE A PUBLIC COMMENT ON THIS?
00:45:43 I DON'T THINK WE HAVE ANY QUESTIONS OR COMMENTS SO THANKS
00:45:46 FOR THE PRESENTATION. >> YES IF WE HAVE ANY MEMBERS
00:45:50 OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE
00:45:51 REGARDING THIS ITEM NUMBER SEVEN NOW IS YOUR OPPORTUNITY.
00:45:56 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:45:57 THANK YOU, MR. CLERK. PUBLIC COMMENT ON THIS ITEM IS
00:45:59 NOW CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM
00:46:03 TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
00:46:05 RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
00:46:08 CALL ON THAT MOTION? >> YES.
00:46:09 AND ON THAT MOTION THAT WE REFER THIS RESOLUTION TO THE
00:46:11 FULL BOARD WITH RECOMMENDATION VICE CHAIR CHIN CHEN I
00:46:15 AMBASSADOR SAUTER I CHAIR DORSEY I DON'T SEE WHY WE HAVE
00:46:19 THREE EYES. THANK YOU MR. COOK.
00:46:22 >> THE MOTION PASSES. THANK YOU.
00:46:23 THANK YOU, MR. CLERK. CAN WE CALL ITEMS EIGHT
00:46:29 AND NINE TOGETHER? YES.
00:46:30 ITEM NUMBERS EIGHT AND NINE ARE RESOLUTIONS APPROVING
00:46:34 AND AUTHORIZING THE DIRECTOR OF PROPERTY ON BEHALF OF THE
00:46:38 DEPARTMENT OF PUBLIC HEALTH TO EXECUTE LEASE AGREEMENTS WITH
00:46:42 THE FOLLOWING ASSET LANDLORDS BOTH FOR INITIAL TERMS OF FIVE
00:46:46 YEARS WITH TWO ONE YEAR OPTION A ONE YEAR EXTENSION OPTIONS
00:46:49 COMMENCING UPON ENACTMENT OF THE RESPECTIVE RESOLUTIONS
00:46:53 AND THE EXECUTION BY THE DIRECTOR OF PROPERTY
00:46:56 AND AUTHORIZING THE DIRECTOR TO ENTER INTO ANY AMENDMENTS OR
00:46:58 MAKE MODIFICATIONS TO THE LEASES THAT THE DIRECTOR
00:47:03 DETERMINES IN CONSULTATION WITH AND THE CITY ATTORNEY TO NOT
00:47:07 MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES TO
00:47:08 THE CITY TO NOT MATERIALLY DECREASE THE BENEFITS TO THE
00:47:12 CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSES OF THE
00:47:14 OFFICE LEASES OR THEIR RESOLUTIONS.
00:47:17 ITEM NUMBER EIGHT IS WITH WEST BAY LOCAL DEVELOPMENT
00:47:18 CORPORATION DOING BUSINESS HAS WEST BAY CONFERENCE CENTER FOR
00:47:24 A PORTION OF 1290 FILLMORE STREET CONSISTING OF
00:47:25 APPROXIMATELY 3000 RENTABLE SQUARE FEET FOR AN ANNUAL BASED
00:47:29 RENT OF APPROXIMATELY 105,000 INCREASING BY 3% THAT EACH TERM
00:47:33 EXTENSION AND ITEM NUMBER NINE IS WITH FILLMORE CENTER
00:47:37 ASSOCIATES L.P. FOR A PORTION OF 1533 EDDY STREET CONSISTING
00:47:43 OF APPROXIMATELY 1500 RENTABLE SQUARE FEET FOR AN ANNUAL BASE
00:47:46 RENT OF 39.6 THOUSAND WITH A 3% ANNUAL INCREASES.
00:47:53 >> MR. CHAIR THANK YOU, MR. CLERK.
00:47:56 WE ARE JOINED TODAY BY SALLY EARTH, DIRECTOR OF REAL ESTATE
00:47:59 AND MR. PETER BRIAN BRIAN BRANT THANK YOU ASSET MANAGER FOR THE
00:48:04 DEPARTMENT OF PUBLIC HEALTH MISS EARTH MR. BRENNAN WE
00:48:08 WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE.
00:48:11 >> THE FLOOR IS YOURS. MORNING SUPERVISORS.
00:48:15 MY NAME IS PETE BURNHAM, AN ASSET MANAGER AT DEPARTMENT
00:48:17 PUBLIC HEALTH. I'M HERE TO REQUEST APPROVAL OF
00:48:19 A LEASE THAT WILL SUPPORT THE BLACK INFANT HELP PROGRAM
00:48:23 OTHERWISE KNOWN AS BHP WHICH OPERATES AT 1290 FILLMORE
00:48:27 AND 1533 EDDY STREET. THE PRIMARY GOAL OF BHP IS TO
00:48:31 REDUCE NEGATIVE HEALTH OUTCOMES IN THE AFRICAN-AMERICAN AND FOR
00:48:35 AFRICAN-AMERICAN AND BLACK INFANTS BY PROVIDING A
00:48:38 RESPONSIVE SUPPORT FOR EXPECTING MOTHERS.
00:48:42 PROGRAMS AT BHP ADDRESS FOOD INSECURITY THEY PROVIDE
00:48:46 PRENATAL AND POSTNATAL FOCUSED EDUCATION PROGRAM WITH TOPICS
00:48:50 SUCH AS BREASTFEEDING AND SAFE SLEEP.
00:48:52 THEY FACILITATE PEER GROUPS THAT BUILD COMMUNITY
00:48:54 AND RESILIENCE. I THINK OF NOTE FOR SAN
00:48:57 FRANCISCO'S B H P PROGRAM IT IS THAT IS THE FIRST IN THE STATE
00:49:02 TO INCLUDE AN ONSITE MENTAL HEALTH THERAPIST IN ADDITION TO
00:49:04 ITS COMPLEMENT OF SOCIAL WORKERS AND A PUBLIC HEALTH
00:49:06 NURSE. APPROVAL OF THIS LEASE WILL
00:49:09 HELP ENSURE COMMUTE CONTINUE TO HAVE CARE AND STRENGTHEN ITS
00:49:12 EFFORTS TO IMPROVE MATERNAL AND INFANT HEALTH OUTCOMES
00:49:16 IN IMPACTED COMMUNITIES. AND I WILL TURN OVER TO
00:49:20 DIRECTOR OUGHT TO TALK ABOUT ALL OF THESE TERMS THANK YOU
00:49:23 CHAIR DORSEY AND GOOD MORNING COMMITTEE MEMBERS AGAIN SALLY
00:49:27 ORTH DIRECTOR OF REAL ESTATE AND JUST TO REVIEW THE TERMS OF
00:49:30 THESE TWO LEASES THEY BOTH HAVE A FIVE YEAR TERM WITH TWO ONE
00:49:34 YEAR OPTIONS TO EXTEND THE. >> HAVE SLIGHTLY DIFFERENT
00:49:38 RENTAL RATES JUST BASED ON THEIR DIFFERENT LOCATIONS
00:49:41 AND UNIQUE FEATURES OF EACH PROPERTY.
00:49:42 BUT THE RENT FOR 1290 FILLMORE IS AT $35.14 PER SQUARE FOOT
00:49:48 AND THE RENT FOR 1533 EDDIE IS $26.40 PER SQUARE FOOT.
00:49:52 BOTH ARE AT OR BELOW MARKET RATES I.
00:49:55 SLIGHT DIFFERENCE IN THE ESCALATION FOR 1290 FILLMORE
00:49:59 THERE WILL BE A 3% ESCALATION AT THE OPTION PERIOD WHILE AT
00:50:04 1533 EDDIE IT WILL BE AN ANNUAL INCREASE.
00:50:08 THE UTILITIES WILL BE PAID BY THE CITY AT TOP 90 FILLMORE
00:50:12 ALTHOUGH THE LANDLORD WILL PROVIDE JANITORIAL.
00:50:14 AND AT 1533 EDDIE THE CITY WILL BE PROVIDING UTILITIES
00:50:18 AND JANITORIAL SERVICES AND HAPPY TO ANSWER ANY
00:50:19 QUESTIONS REGARDING THIS THESE TRANSACTIONS.
00:50:24 >> THANKS SO MUCH. I THINK THIS LOOKS FORWARD.
00:50:28 IT LOOKS STRAIGHTFORWARD TO ME. I APPRECIATE YOUR WORK ON THIS.
00:50:32 I DON'T SEE ANY QUESTIONS OR COMMENTS AND WE DON'T HAVE A A
00:50:34 REPORT ON THIS. THANK YOU FOR YOUR
00:50:36 PRESENTATION. SO AT THIS TIME WHY DON'T WE
00:50:37 INVITE A PUBLIC COMMENT ON THIS ITEM?
00:50:40 YES, WE'RE OPENING PUBLIC COMMENT FOR BOTH OF THESE ITEMS
00:50:43 EIGHT AND NINE IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH
00:50:47 TO ADDRESS THIS COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS
00:50:50 . >> THANK YOU, MR. CLERK PUBLIC
00:50:51 COMMENT ON THESE ITEMS IS NOW CLOSED AND AT THIS TIME I WOULD
00:50:55 MOVE TO FORWARD THESE ITEMS TO THE FULL BOARD OF SUPERVISORS
00:50:58 WITH OUR POSITIVE RECOMMENDATION.
00:50:59 MR. CLERK MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:51:03 YES OR NO? NO MOTION TO REFER BOTH
00:51:06 RESOLUTIONS TO THE FULL BOARD WITH RECOMMENDATION.
00:51:07 VICE CHAIR CHEN CHEN I'M AMBASSADOR SAUTER I.
00:51:10 CHAIR DORSEY I'M DORSEY. >> I HAVE THREE EYES.
00:51:14 THANK YOU, MR. CLERK THE MOTION PASSES.
00:51:17 THANKS SO MUCH, MR. CLERK. >> WHEN CALL UP ITEM NUMBER TEN
00:51:23 IS ITEM NUMBER TEN IS A RESOLUTION APPROVING AMENDMENT
00:51:28 NUMBER 51 TO THE TREASURER. ISLAND LAND AND STRUCTURES
00:51:32 MASTER LEASE BETWEEN THE TREASURE ISLAND DEVELOPMENT
00:51:34 AUTHORITY AND THE UNITED STATES NAVY TO EXTEND THE TERM FOR ONE
00:51:38 YEAR TO COMMENCE SUMMER FIRST 2026 FOR A TOTAL TERM OF
00:51:43 NOVEMBER 19TH 1998 THROUGH NOVEMBER 30TH 2027 AND TO
00:51:46 AUTHORIZE THE TREASURE ISLAND DEVELOPMENT AUTHORITY EXECUTIVE
00:51:50 DIRECTOR. TO EXECUTE AND ENTER INTO
00:51:51 AMENDMENTS TO THE LEASE SET TO NOT MATERIALLY INCREASE THE
00:51:55 OBLIGATIONS NOR LIABILITIES TO THE CITY AND ARE NECESSARY TO
00:51:58 EFFECTUATE THE PURPOSES AND INTENT OF THIS RESOLUTION.
00:52:01 MR. CHAIR. THANK YOU, MR. CLERK.
00:52:02 WE'RE JOINED BY MISS SHEILA JOVANA OF EXECUTIVE DIRECTOR OF
00:52:05 TITLE MR. VONN, WE WELCOME YOU TO THE BUDGET AND FINANCE
00:52:08 COMMITTEE. >> THE FLOOR IS YOURS.
00:52:09 THANK YOU AND THANK YOU GOOD AND GOOD MORNING CHAIR DORSEY
00:52:13 AND MEMBERS OF THE COMMITTEE. I AM SHEILA JEEVAN
00:52:17 AND EXECUTIVE DIRECTOR OF TREASURE ISLAND DEVELOPMENT
00:52:18 AUTHORITY OTHERWISE KNOWN AS KATA AND I'M HONORED TO BE HERE
00:52:22 TODAY AND HAVE AN OPPORTUNITY TO PRESENT THIS ITEM TODAY
00:52:25 WHERE WE ARE REQUESTING APPROVAL OF AN ANNUAL EXTENSION
00:52:29 OF OUR MASTER LEASE BETWEEN KATA AND THE NAVY.
00:52:32 THE CURRENT LEASE TERM EXPIRES ON NOVEMBER 30TH, 2026.
00:52:36 THIS LEASE MODIFICATION AND EXTENDS THE TERM THROUGH
00:52:42 NOVEMBER 30TH 2027 AND ALL OTHER REMAINING LEASE TERMS
00:52:43 AND CONDITIONS REMAIN UNCHANGED.
00:52:47 >> THERE IS NO BASE RENT BUY PAID BY TATA UNDER THIS MASTER
00:52:51 LEASE MEANING THE EXTENSION CARRIES NO FINANCIAL IMPACT.
00:52:55 >> TO THE CITY'S BUDGET THIS CONTINUES AN ONGOING
00:52:59 ARRANGEMENT ORIGINALLY ENACTED ON NOVEMBER 19TH, 1998
00:53:02 AND STANDARD NAVY REAL ESTATE PRACTICE DICTATES A YEAR TO
00:53:06 YEAR LEASE ONLY TAYLOR HAS INQUIRED AGAIN THIS YEAR ABOUT
00:53:10 THE POSSIBILITY OF A MULTIYEAR LEASE TERM BUT TO NO AVAIL.
00:53:13 THE LEASE COVERS BUILDINGS GROUNDS AND INFRASTRUCTURE ON
00:53:17 THE FORMAL NAVAL STATION. IT ALSO ENABLES TIGTA TO
00:53:20 CONTINUE TO SUBLEASE PORTIONS OF THE MASTER LEASED AREA FOR
00:53:24 INTERIM USES AND GENERATE REVENUES TO SUPPORT THE INTERIM
00:53:26 USES AND THE FUTURE REDEVELOPMENT OF THE FORMER
00:53:29 FORMER NAVAL WEAPON AND NAVAL STATION TREASURE ISLAND.
00:53:33 >> CURRENTLY WE STILL LEASE APPROXIMATELY 120 ACRES FROM
00:53:37 THE NAVY AND WHILE TIGHT AIR AND NAVY AND THE NAVY ARE
00:53:41 WORKING TO ACCELERATE AND PRIORITIZE LAND TRANSFER
00:53:44 FOR DEVELOPMENT PARCELS, THE TIMING OF THE FINAL LAND
00:53:48 TRANSFER IS NOT ANTICIPATED BEFORE 2035.
00:53:49 I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ON
00:53:52 THIS REQUEST. >> GREAT.
00:53:55 THANKS SO MUCH. I DON'T THINK THERE'S ANY
00:53:59 QUESTIONS OR COMMENTS I, I GUESS ONE THING THAT I WOULD
00:54:03 SAY WHEN YOU WHEN IT'S THE 51ST AMENDMENT TO SOMETHING YOU
00:54:06 ASSUME THIS IS JUST SORT OF AS THE WAY THAT IT GOES AND I I
00:54:14 THINK FROM MY DAYS IN THE CITY ATTORNEY'S OFFICE HAVE SEEN
00:54:15 WHAT IT INVOLVES THE U.S. MILITARY DOUBLE THE AMOUNT OF
00:54:18 TIME THAT IT TAKES AND THEN YOU KNOW, THERE'S GOING TO BE SOME
00:54:22 THINGS I THINK IF I RECALL THIS WAS ALSO THE THINGS THAT WE SAW
00:54:25 PLAY OUT WITH EVEN THE PRESIDIO AND HUNTERS POINT AND YEAH,
00:54:29 SOME OF THAT IT LOOKS STRAIGHTFORWARD TO ME.
00:54:33 >> I APPRECIATE YOUR YOUR PERSISTENCE ON THIS AND FOR
00:54:36 ASKING FOR MULTI YEARS AND MAYBE SOMEDAY THEY WILL
00:54:39 AGREE TO THAT AT THIS TIME WITHOUT FURTHER QUESTIONS OR
00:54:43 COMMENTS WHY DON'T WE INVITE A PUBLIC COMMENT ON THIS ITEM?
00:54:44 >> YES. WE'RE NOW OPENING PUBLIC
00:54:47 COMMENT FOR THIS ITEM NUMBER TEN IF WE HAVE ANY MEMBERS OF
00:54:51 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:54:53 MR. CHAIR, WE HAVE NO SPEAKERS. >> THANK YOU, MR. CLERK.
00:54:56 PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME I
00:54:59 WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF
00:55:00 SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
00:55:03 >> MAY WE HAVE A ROLL CALL THAT MOTION?
00:55:04 YES. AND I NO MOTION THAT WE
00:55:06 REFERRED TO THE FULL BOARD WITH THE RECOMMENDATION VICE CHAIR
00:55:08 CHEN CHEN I'M AMBASSADOR SAUTER.
00:55:10 I CHAIR DORSEY DORSEY I HAVE THREE EYES.
00:55:14 >> THANK YOU MR. CLERK MOTION PASSES.
00:55:17 >> OKAY. SORRY, MR. CLERK, CAN WE PLEASE
00:55:21 CALL UP ITEM NUMBER 11? YES.
00:55:22 ITEM NUMBER 11 IS A RESOLUTION AUTHORIZING THE SAN FRANCISCO
00:55:25 TAX COLLECTOR TO SELL TAX DEFAULTED REAL PROPERTY
00:55:29 AND PUBLIC AUCTION AS DEFINED THERE IN MR. CHAIR.
00:55:32 >> THANK YOU, MR. CLERK. WE ARE JOINED TODAY BY MR.
00:55:35 DAVID AUGUSTINE, TAX COLLECTOR OF THE OFFICE OF TREASURER
00:55:36 AND TAX COLLECTOR. >> MR. AUGUSTINE, WE WELCOME
00:55:40 YOU TO THE BUDGET AND FINANCE COMMITTEE.
00:55:41 THE FLOOR IS YOURS. >> THANK YOU.
00:55:43 GOOD TO SEE YOU AGAIN. CHAIR DORSI NICE TO SEE YOU
00:55:44 MEMBERS I'M I'M DAVID AUGUSTINE TAX COLLECTOR.
00:55:47 THIS ITEM IS A RESOLUTION AUTHORIZING OUR OFFICE TO SELL
00:55:50 ONE TAX DEFAULTED PROPERTY AT PUBLIC AUCTION.
00:55:54 FIRST SOME BACKGROUND TAX SALES ARE OF DEFAULTED PROPERTY ARE
00:55:58 GOVERNED BY STATE LAW PROPERTY BECOMES ELIGIBLE FOR AUCTION
00:56:01 AFTER TAXES HAVE BEEN DELINQUENT FOR FIVE YEARS.
00:56:04 WE ARE REQUIRED TO SELL A PARCEL AFTER A PROPERTY HAS
00:56:08 BEEN DELINQUENT FOR NINE YEARS. >> OUR OFFICE TYPICALLY WAITS
00:56:12 CLOSER TO THE NINE YEAR MARK TO SELL A PARCEL SINCE MOST
00:56:16 DELINQUENT BALANCES ARE RESOLVED BETWEEN YEARS FIVE
00:56:19 AND NINE. THIS RESOLUTION IS DIFFERENT
00:56:20 IN THAT IT ASKS THE BOARD TO APPROVE A STANDALONE SALE OF A
00:56:24 SINGLE PROPERTY BECAUSE OF SOME UNIQUE CIRCUMSTANCES.
00:56:27 THE PROPERTY IN QUESTION HAS BEEN TAX DEFAULTED SINCE JULY
00:56:31 2021 AND HAS REACHED THE FIVE YEAR POWER TO SELL STATUS THIS
00:56:36 PAST JULY 2026. THE BALANCE OWED IS
00:56:39 APPROXIMATELY $329,000 WHICH IS A LARGE BALANCE AND THE MINIMUM
00:56:43 BID AT AUCTION WILL BE 500,000 DOLLARS.
00:56:47 >> BOTH ARE UNUSUALLY HIGH FOR SAN FRANCISCO TAX SALE.
00:56:50 OTHER COUNTIES HANDLING COMPARABLE HIGH VALUE
00:56:52 PROPERTIES TYPICALLY ACT AT THE FIVE YEAR MARK RATHER THAN
00:56:56 WAITING THE FULL NINE YEARS. AND GIVEN THE BALANCE HERE WE
00:56:58 ARE COMFORTABLE MOVING FORWARD AT THE FIVE YEAR MARK.
00:57:01 THERE ARE ALSO OTHER COMPLEX ISSUES AT PLAY RELATED TO
00:57:05 ALLEGED FRAUDULENT DEEDS THAT HAVE BEEN RECORDED AGAINST THE
00:57:09 PROPERTY WHILE QUESTIONS ABOUT WHO HOLDS VALID TITLE TO THE
00:57:13 PROPERTY FALL OUTSIDE OF OUR OFFICE'S PURVIEW, A COMPLETED
00:57:17 TAX SALE WOULD RESULT IN A LEGITIMATE DEED BEING ISSUED TO
00:57:21 THE WINNING BIDDER BEFORE THE AUCTION WE WOULD NOTIFY ALL
00:57:24 PARTIES OF INTEREST INCLUDING ALL RECENT TITLE HOLDERS
00:57:28 AND LEIN HOLDERS SO THEY HAVE THE OPPORTUNITY TO REDEEM THE
00:57:30 PARCEL AND PAY THE BALANCE DUE BEFORE IT AUCTION TAKES PLACE.
00:57:35 WE WOULD ALSO POST NOTICES ON THE PROPERTY AND PUBLISH NOTICE
00:57:40 OF THE SALE AS REQUIRED IN THE NEWSPAPER.
00:57:43 IF APPROVED WE ANTICIPATE THE AUCTION TO TAKE PLACE BEFORE
00:57:46 THE END OF 2026 WILL CONFIRMED EXACT DATES PUBLICLY ONCE WE
00:57:50 HAVE BOARD APPROVAL. AS WITH ALL SUCH AUCTIONS THE
00:57:54 APPROVAL OF THIS RESOLUTION DOES NOT GUARANTEE THE AUCTION
00:57:55 WILL PROCEED. A FULL PAYMENT OF THE BALANCE
00:57:58 DUE DOES STOP THE AUCTION AT ANY POINT BEFORE THE AUCTION
00:58:02 STARTS. THAT SAID, I'M HAPPY TO TAKE
00:58:05 ANY QUESTIONS. >> THANK YOU, MR. AUGUSTINE OR
00:58:08 I MEAN HAVE WE DONE OUR DUE DILIGENCE TO IDENTIFY THE
00:58:14 PARTIES? I KNOW THAT THERE'S I MEAN MY
00:58:17 MY RECOLLECTION OF PREVIOUS ISSUES THAT HAVE EMERGED
00:58:21 IN THESE I THINK WAS PRESIDIO TERRACE WHICH WHICH I WAS ONE
00:58:24 THERE IS IT FROM MY UNDERSTANDING CASE LAW
00:58:28 ESTABLISHES THAT THERE'S A DIFFERENT STANDARD WHEN THERE'S
00:58:31 WHEN IT BECOMES A CONSTITUTIONAL TAKING.
00:58:32 SO AS LONG AS YOU KNOW TRUST I CERTAINLY HAVE A LOT OF
00:58:36 CONFIDENCE IN THAT YOUR OFFICE JUST WANT TO KNOW THAT AS THIS
00:58:39 MOVES FORWARD HOW DO WE ABSOLUTELY APPRECIATE THAT THAT
00:58:46 QUESTION WE DO PARTIES OF INTEREST RESEARCH WITH AN
00:58:50 OUTSIDE VENDOR TO INDICATE ALL PARTIES WHO MIGHT HAVE A AN
00:58:55 INTEREST IN THE PROPERTY. WE ARE GOING TO BE NOTIFYING
00:58:56 ALL RECENT TITLE AND LEAN HOLDERS NOT JUST THE CURRENT
00:58:59 ONES BECAUSE OF THE ALLEGED FRAUDULENT DEED.
00:59:02 SO WE WILL GO OUT BEYOND TO MAYBE THE PAST FOR OWNERS OF
00:59:06 RECORD AND NOTIFY ALL OF THOSE PARTIES OF THE AUCTION AND GIVE
00:59:10 THEM THE CHANCE TO REDEEM THE PARCEL THAT WE THINK THAT IS
00:59:14 OUR OBLIGATION TO YOUR POINT WE TAKE THAT VERY SERIOUSLY.
00:59:18 WE REACHED OUT TO OTHER TAXING AGENCIES WHO HAVE AN
00:59:21 OPPORTUNITY TO HAVE AN OPPORTUNITY TO OBJECT ATTACHED
00:59:24 TO THE TAX SALE OVER THE NEXT FEW MONTHS THE SALE DOES TAKE
00:59:28 FOUR MONTHS. THAT IS A LONG TIME AND THE
00:59:29 REASON IT DOES TAKE TIME IS IT'S REQUIRED AND MANDATED BY
00:59:33 STATE LAW THAT WE FOLLOW EVERY PROCEDURAL STEP TO MAKE SURE WE
00:59:37 DON'T INJURE ANYBODY'S RIGHTS WHO OWNS THE PROPERTY
00:59:40 CURRENTLY. IN ADDITION, I'D SAY FOR THE
00:59:44 FOR THE QUESTION ABOUT THE TAKING THERE ARE EXCESS
00:59:47 PROCEEDS THAT OUR OFFICE WOULD THEN COLLECT IF THE PROPERTIES
00:59:51 AUCTIONED WE WOULD COLLECT SOMETHING PROBABLY ABOVE THE
00:59:53 MINIMUM BID PRICE. THOSE EXCESS PROCEEDS WE WOULD
00:59:56 THEN HOLD AND THEY WOULD BE DUE TO THE LEGITIMATE OWNER OF
01:00:00 RECORD ONE YEAR AFTER THE SALE TAKES PLACE.
01:00:03 THERE'S A LONG PERIOD OF TIME AFTER THE TAX SALE TAKES PLACE
01:00:07 WHERE WE HOLD THAT MONEY ON BEHALF OF THE RIGHTFUL PERSON
01:00:11 WHO WOULD RECEIVE THAT MONEY AND WE DON'T GIVE IT OUT BEFORE
01:00:14 THAT PROCESS HAS BEEN COMPLETED .
01:00:17 >> ALL RIGHT, GREAT. SUPERVISOR SLAUGHTER THANK YOU
01:00:21 CHAIR JUST FOR MY OWN EDUCATION, HOW OFTEN DOES
01:00:25 SOMETHING LIKE THIS HAPPEN? I MEAN HOW FREQUENTLY HAVE WE
01:00:26 SEEN THIS THROUGH THE YEARS OR BY THIS IF YOU MEAN AN AUCTION
01:00:29 WE AUCTION GENERALLY EVERY YEAR OUR AUCTION IS GENERALLY IN THE
01:00:34 SPRING. THIS PARTICULAR FACT A SET OF
01:00:37 CIRCUMSTANCES I HAVE NOT SEEN I'VE BEEN IN THIS POSITION FOR
01:00:40 14 YEARS. I'VE BEEN IN MY OFFICE FOR 22
01:00:41 YEARS. I HAVE NEVER SEEN THIS SET OF
01:00:44 FACTS BEFORE WITH THE ALLEGED FRAUDULENT DEEDS AND THE HIGH
01:00:48 VALUE OWED. I'M GENERALLY OUR AUCTION THAT
01:00:52 HAPPENS IN THE SPRING CONTAINS PARCELS THAT ARE OF MUCH LOWER
01:00:55 VALUE SLIVER LOTS EASEMENTS UNDERWATER LOTS THINGS THAT
01:00:59 DON'T ATTRACT A LOT OF ATTENTION.
01:01:00 FORTUNATELY SINGLE FAMILY HOMES OR HOMES CONDOS ARE GENERALLY
01:01:04 REDEEMED PRIOR TO THAT PROCESS COMMENCING.
01:01:08 THIS IS AN EXCEPTION TO THAT. >> THANK YOU.
01:01:12 I KNOW THIS IS A THIS HAS BEEN IN THE NEWS AND IT'S A UNIQUE
01:01:15 SET OF CIRCUMSTANCES SO THANKS FOR WORKING TO RESOLVE IT.
01:01:19 >> THANK YOU. SUPERVISOR SAUTER OKAY WE
01:01:22 APPRECIATE THE PRESENTATION AND ANSWERING OUR QUESTIONS AT
01:01:26 THIS TIME. WHY DON'T WE INVITE A PUBLIC
01:01:27 COMMENT ON THIS ITEM? YES, WE'RE OPENING PUBLIC
01:01:31 COMMENT ON THIS ITEM NUMBER 11 IF WE HAVE ANY MEMBERS OF THE
01:01:35 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
01:01:37 MR. CHAIR, WE HAVE NO SPEAKERS .
01:01:40 >> THANK YOU, MR. CLERK. PUBLIC COMMENT ON THE SIDE OF
01:01:42 IS NOW CLOSED AND I DO HAVE AMENDMENTS THAT I WOULD LIKE TO
01:01:48 OFFER TO THIS. SO SEEING NO FURTHER QUESTIONS
01:01:52 OR COMMENTS I WOULD MOVE TO AMEND THE SHORT AND LONG TITLE
01:01:54 OF THE RESOLUTION TO INCLUDE THE SUBJECT ADDRESS AS FOLLOWS.
01:01:59 PAGE ONE LINE ONE ADD 250 32ND AVENUE.
01:02:03 PAGE ONE LINE FOUR AFTER PROPERTY ADD LOCATED AT 250
01:02:08 32ND AVENUE ASSESSOR'S PARCEL BLOCK NUMBER 1391.
01:02:13 LOT NUMBER OH 14. PAGE ONE LINE EIGHT ADD LOCATED
01:02:17 AT 253 SECOND AVENUE. ASSESSOR'S PARCEL BLOCK 1391
01:02:25 LOT 014 AND STRIKE LISTED. PAGE ONE LINES NINE AND TEN ADD
01:02:28 ON FILE WITH THE CLERK OF THE BOARD IN FILE NUMBER 26 1002
01:02:34 AND IS INCORPORATED HEREIN BY REFERENCE.
01:02:38 PAGE ONE LINE 25 STRIKE ON FILE WITH THE BOARD IN FILE NUMBER
01:02:44 26 1002. PAGE TWO LINE SEVEN STRIKE
01:02:47 ATTACHED AND THEN TO FORWARD THAT ITEM AS AMENDED TO THE
01:02:52 FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
01:02:55 IT'S MY UNDERSTANDING THIS IS A NON SUBSTANTIVE AMENDMENT.
01:02:57 MR. CLERK MAY WE HAVE A ROLL CALL IN THAT MOTION?
01:03:00 >> YES. AND ON THAT MOTION THAT WE
01:03:01 AMEND THE RESOLUTION AS SO READ INTO THE RECORD BY THE CHAIR
01:03:04 AND THERE WERE REFER THIS RESOLUTION WITH RECOMMENDATION
01:03:07 AS AMENDED. >> VICE CHAIR CHEN CHEN I
01:03:11 REMEMBER SLATER STARTER I CHAIR DORSEY I DORSEY I WE HAVE THREE
01:03:16 EYES THANK YOU MR. CLERK THE MOTION PASSES MR. QUICKLY
01:03:20 PLEASE CALL ITEM NUMBER 12. YES.
01:03:22 ITEM NUMBER 12 IS AN ORDINANCE AMENDING THE BUSINESS AND TAX
01:03:26 REGULATIONS CODE RETROACTIVELY TO JANUARY 1ST 2026 TO PROVIDE
01:03:31 SMALL HARDWARE RETAILERS WITH A CREDIT AGAINST OUR GROSS
01:03:35 RECEIPTS TAX FOR YEARS FOR TAX YEAR 2026 THROUGH 20 35.
01:03:41 >> MR. CHAIR THANK YOU MR. CLERK.
01:03:43 WE ARE JOINED BY MISS GRACE HUANG, THE LEGISLATIVE AIDE
01:03:47 WITH THE BOARD PRESIDENT RAFAEL MEMBERS OFFICE AS WELL WE ARE
01:03:50 JOINED BY TED EGAN, OUR CITY'S CHIEF ECONOMIST.
01:03:53 WELCOME, MS. WANG AND MR. EGAN TO THE BUDGET AND FINANCE
01:03:56 COMMITTEE. >> THE FLOOR IS YOURS.
01:04:01 THANK YOU, CHAIR DOROTHY GOOD MORNING, MEMBERS OF THE
01:04:04 COMMITTEE. MY NAME IS GRACE AND I'M HERE
01:04:05 TODAY ON BEHALF OF PRESIDENT MIDDLEMEN.
01:04:09 THE ITEM BEFORE YOU TODAY IS AN ORDINANCE PROVIDING TAX RELIEF
01:04:12 TO SMALL INDEPENDENT HARDWARE STORES THROUGHOUT SAN
01:04:13 FRANCISCO. THESE NEIGHBORHOOD HARDWARE
01:04:16 STORES HAVE SEEN SIGNIFICANT INCREASES TO THEIR GROSS
01:04:17 RECEIPTS TAX BURDEN SINCE THE PASSAGE OF PROP M IN 2024.
01:04:20 AND THIS MEASURE WILL PROVIDE SOME MUCH NEEDED RELIEF.
01:04:24 SAN FRANCISCANS LOVE OUR LOCAL HARDWARE STORES IN DISTRICT
01:04:28 EIGHT FOR EXAMPLE COOL HARDWARE AND COOP'S VARIETY ARE BOTH
01:04:32 FAMILY OWNED BUSINESSES THAT HAVE BEEN SERVING THEIR
01:04:33 NEIGHBORHOODS FOR A CENTURY. FOR GENERATIONS, RESIDENTS HAVE
01:04:35 TURNED TO THEIR NEIGHBORHOOD HARDWARE STORES NOT ONLY FOR
01:04:39 TOOLS AND SUPPLIES BUT ALSO FOR THE ADVICE AND EXPERTISE OF
01:04:42 STAFF ON EVERYTHING FROM HOME REPAIRS TO CREATIVE PROJECTS
01:04:44 DURING THE COVID 19 PANDEMIC. THESE STORES WERE LITERALLY
01:04:47 LIFE SAVERS BUT THE REALITY IS THAT BELIEVE IT OR NOT,
01:04:50 NEIGHBORHOOD HARDWARE STORES ARE STRUGGLING.
01:04:54 IN ADDITION TO COMPETITION FROM CORPORATE CHAINS AND ONLINE
01:04:55 RETAILERS, NEIGHBORHOOD HARDWARE STORES ARE ALREADY
01:04:59 OPERATING ON RAZOR THIN MARGINS HAD TO DEAL WITH RETAIL THEFT
01:05:02 TARIFFS AND EVER INCREASING OPERATING EXPENSES.
01:05:05 STORE OWNERS HAVE IN RECENT HAVE BEEN OPEN ABOUT HOW
01:05:07 DIFFICULT IT IS TO KEEP THEIR DOORS OPEN IN RECENT YEARS.
01:05:10 FOR EXAMPLE, IN DECEMBER OF 2020 FOR PAPA HASN'T HARDWARE
01:05:14 IN WEST PORTAL CLOSED AFTER 88 YEARS IN BUSINESS?
01:05:17 >> IN 2024 SAN FRANCISCO VOTERS PASSED PROPOSITION A MAJOR
01:05:21 REFORM OF OUR BUSINESS TAX STRUCTURE DESIGNED TO INCREASE
01:05:22 THE CITY'S ECONOMIC RESILIENCE. ADOPT A POST-COVID HYBRID WORK
01:05:26 PATTERNS CREATE MORE TRANSPARENCY FOR TAXPAYERS
01:05:30 AND PROVIDE RELIEF TO SMALL BUSINESSES.
01:05:33 THE MEASURE RESULTED FROM EXTENSIVE ANALYSIS
01:05:34 AND STAKEHOLDER CONSULTATION AND WAS ULTIMATELY PUT ON A
01:05:37 BALLOT BY SIGNATURE GATHERING EFFORT OUTSIDE CITY HALL.
01:05:40 HOWEVER, EVEN BEFORE PROP EM PASSED OR OFFICE HAD BEGUN TO
01:05:44 HEAR CONCERN FROM NEIGHBORHOOD HARVESTERS THAT CONTRARY TO THE
01:05:45 INTENT OF PROP THEY WERE IN A CATEGORY OF SMALL BUSINESS THAT
01:05:49 MIGHT ACTUALLY SEE THEIR TAX BURDEN INCREASE IF THE MEASURE
01:05:52 PASSED. AND IN FACT NOW THAT THE DUST
01:05:53 OF THAT CAMPAIGN HAS SETTLED AND BUSINESSES HAVE BEGUN TO
01:05:56 SEE THEIR POST PROP EM TAX BILLS, THESE BUSINESSES ARE
01:05:59 IN FACT SINGH'S THING FOR SIGNIFICANT INCREASES.
01:06:03 THIS ORDINANCE WOULD REMEDY THAT UNINTENDED CONSEQUENCE BY
01:06:04 CREATING A TAX CREDIT FOR SMALL HARDWARE RETAILERS WHO MEET TWO
01:06:08 REQUIREMENTS. FIRST, MORE THAN 50% OF THEIR
01:06:10 COMBINED GROSS RECEIPTS COME FROM QUALIFYING HARDWARE
01:06:12 PRODUCTS. AND SECOND, THAT THEY HAVE LESS
01:06:15 THAN 50 MILLION IN COMBINED GROSS RECEIPTS FROM ALL SOURCES
01:06:17 DURING THE TAX YEAR. THESE THRESHOLDS ARE DESIGNED
01:06:19 SPECIFICALLY TO TARGET RELIEF TOWARD SMALL INDEPENDENT
01:06:22 COMMUNITY HARDWARE STORES RATHER THAN LARGER STORES THAT
01:06:26 ARE IN A BETTER POSITION TO ABSORB COSTS.
01:06:27 >> I WANT TO THANK TERRY AUSTIN BENNET FROM COAST VARIETY STORE
01:06:30 RICKERT FROM COLES HARBOR CREW AND ASHFORD FROM FREDRICKSON
01:06:33 HARDWARE AND JEREMY GUTTENBERG FROM CENTER HARDWARE AND SUPPLY
01:06:35 CO FOR SHARING THEIR EXPERIENCES WITH OUR OFFICE
01:06:37 AND THEIR PARTNERSHIP ON THIS LEGISLATION.
01:06:41 I WOULD ALSO LIKE TO THANK SCOTT RIVER AND CHARLES OLSON
01:06:42 FROM THE CITY ATTORNEY'S OFFICE ,TED EGAN FROM THE
01:06:45 COMPTROLLER'S OFFICE, ERIC MACKEY AND AMANDA FREED FROM
01:06:49 THE TREASURE TAX COLLECTORS OFFICE FOR THEIR WORK ON THIS
01:06:50 AS WELL. DAVID AND ERIC FROM THE CHARTER
01:06:53 TAX COLLECTORS OFFICE, TED EGAN, CHIEF ECONOMIST
01:06:56 AND MYSELF ARE ALL HERE AND AVAILABLE TO ANSWER ANY
01:06:58 QUESTIONS YOU MIGHT HAVE. THANK YOU FOR YOUR TIME AND I
01:07:01 RESPECTFULLY ASK FOR YOUR SUPPORT.
01:07:02 >> OKAY. THANKS SO MUCH.
01:07:05 I DON'T THINK I HAVE ANY QUESTIONS.
01:07:06 I DON'T KNOW, MR. EGAN. IS THERE ANYTHING YOU WANTED TO
01:07:08 ADD TO HOLD THEM? BUT LET'S GET YOUR MIKE ON.
01:07:16 I THINK IT'S I'M SORRY. >> I'M SORRY.
01:07:19 TED EGAN FROM THE COMPTROLLER'S OFFICE.
01:07:23 OUR OFFICE DETERMINED THIS MATTER WOULD NOT HAVE ECONOMIC
01:07:24 IMPACT SO WE ARE NOT FILING AN ECONOMIC IMPACT REPORT ON IT.
01:07:28 WE WERE INVOLVED IN COSTING THE MEASURE AND I'M HAPPY TO ANSWER
01:07:34 ANY QUESTIONS YOU MIGHT HAVE ABOUT THAT.
01:07:35 >> OKAY. THANK YOU SO MUCH.
01:07:38 I APPRECIATE EVERYBODY'S WORK ON THIS.
01:07:39 IT IS THE NATURE OF SOMETIMES WHEN WE MAKE CHANGES WHEN WE GO
01:07:42 TO VOTERS TO MAKE CHANGES TO TAXES THAT YOU KNOW, THERE'S I
01:07:46 THINK WE HAVE LIMITED OPTIONS UNDER STATE LAW OF HOW WE
01:07:49 ASSESS TAXES AND I THINK IT'S IMPORTANT THAT WE HAVE
01:07:53 FLEXIBILITY TO MAKE SURE THAT WE'RE DOING THIS IN A WAY THAT
01:07:57 IS FAIR. SOMETIMES WHEN YOU GO TO ONE
01:08:01 SORT OF GRAND BARGAIN LIKE PROP EM WAS YOU KNOW, THERE'S GOING
01:08:04 TO BE UNINTENDED CONSEQUENCES AND THINGS THAT NEED TO BE
01:08:06 FIXED. WE FORTUNATELY HAVE THE ABILITY
01:08:09 TO DO TO MAKE SOME ADJUSTMENTS LIKE THIS UNDER STATE LAW.
01:08:13 SO I APPRECIATE EVERYBODY'S WORK ON THIS.
01:08:14 I THINK IT'S A VALUABLE PIECE OF LEGISLATION.
01:08:17 >> I'M HAPPY TO SUPPORT IT AND ALSO WOULD REQUEST THAT I
01:08:19 BE ADDED AS A CO-SPONSOR. >> I SEE NO FURTHER QUESTIONS
01:08:21 OR COMMENTS. I WOULD LIKE TO INVITE PUBLIC
01:08:25 COMMENT ON THIS ITEM. >> YES, WE'RE OPENING PUBLIC
01:08:26 COMMENT FOR THIS ITEM NUMBER 12 IF WE HAVE ANY MEMBERS OF THE
01:08:30 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
01:08:32 >> >> GOOD MORNING. >> MY NAME IS TERRY ASTON
01:08:37 BENNETT. I'M CO-OWNER OF CLIFF'S VARIETY
01:08:39 AND FIFTH GENERATION OWNER. >> WHEN PROP PROPOSITION M WAS
01:08:43 GOING THROUGH THE WORKS I EMAILED AND TALKED TO THE
01:08:46 SUPERVISORS OFFICE AND THE LEGISLATORS REPEATEDLY TELLING
01:08:50 THEM THAT WHEN I DID THE MATH THAT IT WOULD MEAN MY GROSS
01:08:52 RECEIPTS TAX DOUBLED MY GROSS RECEIPTS TAXED DOUBLED AS A
01:08:57 HARDWARE STORE WE ARE VERY LIMITED ON THE PRICES WE CAN
01:09:02 CHARGE WE. AND WE'RE SEEING REAL ECONOMIC
01:09:09 MIX FRUSTRATIONS THE TARIFFS, THE FUEL RATES ALL OF THAT GOES
01:09:14 INTO PLAY. WE DO OUR BEST TO PAY OUR
01:09:18 EMPLOYEES LIVING WAGES. WE PAY FULL BENEFITS.
01:09:19 WE WANT TO TAKE CARE OF OUR PEOPLE.
01:09:22 WE ALSO WANT TO TAKE CARE OF OUR NEIGHBORHOOD IN OUR CITY.
01:09:25 >> IT WAS YOUR HARDWARE STORES THAT DURING THE PANDEMIC
01:09:29 SOURCED HAND SANITIZER FROM LIQUOR DISTRIBUTORS THAT
01:09:34 BROUGHT IN K95 MASKS, THAT SOURCED FABRIC MASKS BEFORE
01:09:38 THEY WE KNEW THAT THEY WEREN'T AS YOU KNOW, EFFECTIVE BUT WE
01:09:42 WERE ALSO THE ONES THAT WERE MAKING UP THE RULES BEFORE THE
01:09:45 CITY PASSED THE RULES TO KEEP PEOPLE SAFE.
01:09:46 WE WERE CREATING DISTANCING. WE WERE LIMITING THE NUMBER OF
01:09:52 PEOPLE IN THE STORE. >> DURING THE 1989 EARTHQUAKE
01:09:53 IT WAS YOUR HARDWARE STORES THAT WERE BRINGING IN BATTERIES
01:09:57 AND OPENING UP AND SELLING TO THE PUBLIC EVEN THOUGH THERE
01:10:00 WAS NO WAY TO COLLECT MONEY BECAUSE THERE WAS NO POWER, YOU
01:10:04 KNOW? AND WHEN BIG BAD THINGS
01:10:04 HAPPENED IN THE CITY IT IS YOUR HARDWARE STORES THAT YOU NEED
01:10:11 SO PLEASE HELP US ARRIVE. >> OKAY.
01:10:15 THANK YOU MUCH TERRY ASKED AND THEN IT NEXT SPEAKER HI MY
01:10:19 NAME. >> I'VE NEVER DONE THIS BEFORE.
01:10:23 MY NAME IS JAMIE GET KNOW HOW I'M A CO-OWNER OF CENTER
01:10:26 HARDWARE. WE'RE IN DISTRICT TEN
01:10:29 AND DOGPATCH. WE'VE BEEN IN THE CITY SINCE
01:10:31 1880 AND WE'RE VERY PROUD OF THAT.
01:10:32 >> AND THE REASON WE'VE BEEN ABLE TO DO THAT IS BECAUSE OF
01:10:36 SUCH A HEALTHY RELATIONSHIP WITH THE CITY AND ITS RESIDENTS
01:10:39 AND BUSINESSES. WE ARE A LITTLE BIT DIFFERENT
01:10:43 THAN TERRY STORE IN THAT WE'RE MAJORLY A COMMERCIAL INDUSTRIAL
01:10:46 SUPPLIER WHICH IS WHAT I LIKE TO CALL AN INFRASTRUCTURE
01:10:48 BUSINESS WHICH MEANS WHEN STUFF BREAKS WE'RE GETTING CALLED
01:10:51 FIRST WE'RE GETTING TEXT MESSAGES FROM UNDERNEATH
01:10:52 BUILDINGS. WE OPEN UP THE STORE WHEN IT'S
01:10:57 AFTER 24 HOURS BECAUSE SOMETHING'S GOING ON IN THE
01:10:59 MIDDLE OF THE NIGHT YOU'RE BUILDING ENGINEERS, YOUR
01:11:02 EMERGENCY TEAMS THEY ALL HAVE OUR PHONE NUMBER THIS TAX WAS
01:11:06 IN ITS BEST INTEREST WRITTEN WELL AND HAD BAD CONSEQUENCES
01:11:10 FOR US. I KNOW WE'RE UNINTENTIONAL
01:11:13 AND I APPRECIATE THE MEMBERS HERE AND THE SUPERVISORS OFFICE
01:11:17 AND EVERYONE TAKING A SECOND LOOK BECAUSE IT'S NOT OFTEN
01:11:18 PEOPLE TAKE THE TIME TO DO THAT.
01:11:21 >> SO ANYTHING THAT CAN BE DONE TO HELP US PROTECT OUR LEGACY
01:11:26 BUSINESSES AND HELP THIS CITY RUN BEHIND THE SCENES IS JUST
01:11:32 BEST FOR EVERYONE. AND THAT'S GOOD BUSINESS AND I
01:11:36 BELIEVE THAT EVERYONE IN THIS ROOM WANTS THAT.
01:11:37 >> SO THANK YOU. THANK YOU MUCH FOR ADDRESSING
01:11:40 THIS COMMITTEE AND IF WE HAVE NO FURTHER SPEAKERS, MR. CHAIR,
01:11:44 THAT COMPLETES OUR Q THANK YOU MR. CLARK PUBLIC COMMENT ON
01:11:48 THIS ITEM IS NOW CLOSED AND AT THIS TIME ACTUALLY I WOULD JUST
01:11:51 APPRECIATE THE THE PUBLIC COMMENT AND EVERYBODY'S WORK ON
01:11:56 THIS JUST TO MAKE SURE THAT WE'RE GETTING IT RIGHT.
01:11:59 AT THE END OF THE DAY WE DO WANT TO MAKE SURE THAT OUR
01:12:00 BUSINESSES ARE ARE WELL SUPPORTED AND I THINK IT'S A
01:12:03 IT'S AN IMPORTANT LESSON TO OTHER BUSINESSES JUST TO MAKE
01:12:06 SURE THAT THEY'RE ENGAGED AND IF THERE IS A BURDEN THAT
01:12:08 WE HAVE PUT ON BUSINESSES THAT WE ALL HAVE A STAKE IN MAKING
01:12:13 SURE SUCCEED AND THRIVE IN OUR CITY.
01:12:18 >> WE'RE ALL WILLING TO WORK ON THIS TO GET IT RIGHT TAXATION
01:12:19 AND LIKE AS I MENTIONED TAXATION IN CALIFORNIA
01:12:22 SOMETIMES I THINK VICE CHAIR CHEN DID RESOLUTION ASK THE
01:12:29 LEGISLATURE TO GIVE US SOME MORE FLEXIBILITY IN HOW WE TAX
01:12:32 AS A LOCAL GOVERNMENT. SO SOMETIMES WE'RE WE DON'T
01:12:34 HAVE THE OPTIONS THAT WE WOULD WE WOULD ALL LIKE AS A LOCAL
01:12:37 GOVERNMENT BUT WITH THE IMPERFECT RULES THAT WE'VE GOT,
01:12:41 YOU KNOW, WE'RE TRYING TO GET IT RIGHT AND BEING ABLE TO COME
01:12:44 BACK HERE AND DO THIS TO SUPPORT OUR SMALL BUSINESSES IS
01:12:48 HOPEFULLY GETTING IT RIGHT. >> SO I'M HAPPY TO SUPPORT
01:12:51 THIS. MR. CLERK, AT THIS TIME WHEN WE
01:12:55 MOVE I WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF
01:12:56 SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
01:13:00 >> MAY WE HAVE A ROLL CALL ON THAT MOTION?
01:13:01 YES AND ON THAT MOTION TO REFER TO THE FULL BOARD WITH
01:13:04 RECOMMENDATION VICE CHAIR CHEN CHEN I I'M AMBASSADOR SAUTER I
01:13:07 CHAIR DORSEY I'M DORSEY. WE HAVE THREE EYES.
01:13:11 THANK YOU MR. CLERK THE MOTION PASSES.
01:13:12 CONGRATULATIONS, MR. CLERK. >> IS THERE ANY FURTHER
01:13:15 BUSINESS BEFORE US TODAY? MR. CHAIR, THAT CONCLUDES OUR
01:13:18 BUSINESS. THANK YOU, MR. CLERK, AND THANK
01:13:19 YOU EVERYBODY FOR PARTICIPATING.
01:13:20 WE ARE ADJOURNED