San Francisco Government SmartTranscripts:

[Supervisor Connie Chan (Chair)]: Good morning. The meeting will come to order. Welcome to the 10/01/2025 meeting of the Budget and Finance Committee. I'm supervisor Connie Chan, chair of the committee. I'm joined by vice chair supervisor Matt Dorsey. Our clerk is Brent Haliba. I would like to thank Kalina Mendoza, from SF GovTV for broadcasting this meeting. Mister Clerk, do you have any announcement?

[Brent Jalipa (Committee Clerk)]: Thank you, madam chair. Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file, they should be submitted to myself, the clerk. Public comment will be taken on each item on this agenda. When your item of interest comes up and public comment is called, please line up to speak on the West Side of the chamber to your right, my left, along those curtains. And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the tray by the television to your left by the doors if you if you wish to be accurately recorded for the minutes. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the budget and finance committee clerk at brent.jalipa@sfgov.org. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via US Postal Service to our office in City Hall at 1 Doctor Carlton B. Goethick Place, Room 244, San Francisco, California 94102. And finally, madam chair, items acted upon today are expected to appear on the board of supervisors agenda of October 7 unless otherwise stated. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you, mister Clerk. And before we call item number one, we will need to excuse supervisor Joy and Gardeo. And I would like to move to excuse the supervisor and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion to excuse, supervisor and Gardeo, from today's meeting, vice chair Dorsey. Dorsey, aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes with member and Gardeo excused.

[Supervisor Connie Chan (Chair)]: The motion passes. And, as always, we will have budget and legislative analyst reports, for items, on our agenda. And what we would do is to have department, presentation first, followed by the budget and legislative analyst. Then we will take questions from this com from this committee, and then we will go to public comments. And with that, mister Clark, please call item number one.

[Brent Jalipa (Committee Clerk)]: Item number one is a resolution authorizing the recreation and park department to accept and expend an in kind grant from the Dogpatch and Northwest Potrero Hill Green Benefit District valued at approximately 580,000 for the design and construction of the 22nd Street Trail steps and to authorize the general manager of RPD to enter into modifications to the grant agreement that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the contract for this resolution. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And we have Rec and Park here.

[Tamar Barlev (Recreation and Park Department, Partnerships Division)]: Good morning, Chairwoman Chan, supervisor Dorsey. My name is Tamar Barlev, and I'm with the Recreation and Parks Department Partnerships Division. And I'm here with our partners, Dogpatch and Northwest Patrol Hill GPD, and members of the Friends of Patrol Hill Rec Center to present to you item one on today's agenda, a resolution authorizing the Recreation and Park Department to accept an ex an in kind grant from Dogpatch and Northwest Petrel Hill GBD valued at approximately $580,000 for the design and construction of the 22nd Street trail steps. To provide a little local context, on the left is a view of Petreaux Hill bounded by 28101, Cesar Chavez, And 16th Streets. At the top of Petreaux Hill, which is squarely in District 10, on the eastern side is a 10 acre Petrow Hill Rec Center, which houses recreation center and gymnasium, athletic courts and fields, a community garden, trails, and incredible vistas. Down the hill, to the east of this is the Dogpatch neighborhood, as well as Showplace Square to the North, along with SoMa. The only way to access the, Patrol Hill Rec Center and the open space surrounding it, from the Northeast side of the Patrol Hill Rec Center and Dogpatch is an informal dirt trail located mostly on unaccepted public right of way considered part of 22nd Street, adjacent to the Potrero Hill Rec Center between Connecticut And Missouri Streets. This steep, at times 26% slope, dirt and rock informal trail is worn into the hillside, is located immediately north of the Potrero Hill Rec Center open space, and is adjacent to the Potrero Hill Annex public housing complex. For a decade, members of the Potrero Hill and Dogpatch communities have been advocating for a safer way to traverse this area. In 2017, a neighborhood task force organized by UCSF identified five projects that would cushion the impact of the university's expansion into Dogpatch neighborhood. A staircase built along the same stretch of 22nd Street was one of those five projects. As a result, UCSF pledged $500,000 which is granted to the Dogpatch And Northwest Patrol To Northwest Patrol GBD on behalf of Friends of Patrol Hill Rec Center to design and build these steps. The design approach for these trail steps is to replicate the box steps, a successful trail step design that RPD implements in other parks and open spaces throughout San Francisco. The majority of the trail steps installed at the Trailho Rec Center will be constructed on DPW on accepted right of way adjacent to RPD property, which DPW code states RPD is responsible for improving and maintaining. For this reason, RPD staff has partnered with the community to steer this project forward. And if this resolution is approved by the board of supervisors, the Recreation and Park Department's operations and maintenance staff has agreed to maintain these steps once they are constructed. Here is the budget for this project entirely funded with funding from UCSF and other partners and supporters. That is $580,000 total, including $60,000 for design and project management of the staircase, dollars 5,400 allocated for permit fees, dollars 425,500 for construction. There's also an administrative fee to cover GBD services, as well as 10% contingency to ensure the project is fully funded. The anticipated timeline for the construction of these steps is as follows. In the 2025, requisite permits will be obtained. The GBD will enter into a contract with the contractor, and construction will commence. During the '6, construction will continue. And then in the 2026, it is anticipated that the project will reach both substantial and final completion. Dogpatch And Northwest Betrayal Hill Green Benefit District is acting on behalf of the Friends of Betrayal Hill Rec Center on this project. RPD and Dogpatch GBD are applying for the required permits for the department of from the Department of Public Works. And if approved, the GBD will grant RPD the design of the steps and the steps themselves once they are constructed. UCSF is providing the majority of the funding, as I mentioned before, to cover the cost of design and construction of the staircase with additional support from a grant from the mayor's office of housing and community development, a donation from local community members Keith Goldstein and Donna Warrington, Power Station and Kanata LA have also pledged funds to support the project. The Trail Steps project is supported by District ten supervisor Shamon Walton as well as a diverse group of community and neighborhood business organizations, including UCSF, Potrero Boosters, Dogpatch Neighborhood Association, Friends of Jackson Park, Potrero Health Dogpatch Merchants Association, Pre Fund, and the Dogpatch Business Association. Thank you, and I'm glad I'm happy to answer any questions you may have.

[Supervisor Connie Chan (Chair)]: Thank you. I don't have any name on the roster, and I don't not have additional questions. Thank you so much for your work on this. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. We have any members of the public who wish to address this committee regarding this item number one. I'll go ahead and line up, by those curtains, and I will start our time with the first speaker.

[Donovan Lacy (Acting Executive Director, Dogpatch & NW Potrero Hill GBD)]: Good morning. Good morning, Chairwoman Chan, Supervisor Dorsheets. Good to see you again. Thank you for being here today and for considering the resolution for RPD to accept this in kind donation for the 22nd Street Pathway Steps. I'm Donovan Lacy. I'm the acting executive director of the Dogpatch Northwest Betrayal Hill Green Benefit District. We'll call it GBD. It's a it's a mouthful. The GBD has been a long time supporter of these 22nd Street stairs. I think it's we're looking at probably a decade at this point, And we are very proud to be the fiscal sponsor here. We stepped in when we needed to step in, and we are excited to be part of this project. I've personally used those existing dirt and rock stairs to access Rec And Park Community Garden, of which I'm a member, to take my daughter to the Rec And Park Fields for soccer practice, to attend events at the Potrero Hill neighborhood house, or just to visit my friends up the hill. I I have the scars to prove it. Those stairs are dangerous and and and they're tough. These twenty seconds the proposed stairs are gonna replace what is now this steep, rugged, dangerous dirt and rock path between Missouri and Connecticut with something that's well create well crafted, accessible, and and safe. It's gonna create safe and easy access to those community, amenities, in Dogpatch and Cherry Hill. Things like, as I said, the Cherry Hill Rec Center for with the the the ball fields, the playgrounds, the basketball courts, all of which Dogpatch does not have. So this is a great benefit for Dogpatch. It's gonna provide easy access to the 22nd Street Caltrain and Muni transportation hub just down the hill. And, obviously, it's gonna provide access to the Dogpatch Commercial Corridor and the newly reopened waterfront Pier 70. UCSF and as you heard, UCSF and its community sponsors are have covered the cost entirely of, of the design and construction, partnering with the friends of the Potrero Hill Rec Center and the Green Benefit District. So I urge you to support our community and improve this resolution to accept the the in kind donation.

[Supervisor Connie Chan (Chair)]: Thank you.

[Brent Jalipa (Committee Clerk)]: And thank you for addressing this committee. Next speaker, please.

[JR Epler (President, Potrero Boosters Neighborhood Association)]: Jared Chan, supervisor Dorsey, JR Epler, president of the Patero Boosters Neighborhood Association. It is extraordinarily exciting to be here today because what we have in front of you is a nearly perfect project. It starts off with the public need, and the public have voted with their feet on this, going up and down that hill for years from Potrero Hill to access the Caltrain station, from Dog Patch to access the Potrero Hill Rec Center and the Potrero Hill Neighborhood House. It's clearly something that is necessary because the scars are worn into the hillside to prove it. The city has also recognized this, going all the way back to the 2014 planning department green connectors plan, to the development plans along the waterfront and the South slope of Potrero Hill that recognize the need for a pedestrian connection up to the amenities at the top of the hill and the need for people to get down from the hill to the Caltrain Station into the future amenities that will be along the central waterfront. The neighborhoods around the area have stewarded this project for more than a decade. It started off as an unfunded idea. It received funding from community partners including UCSF, the Potrero Power Station. It raised funds from the neighborhood at large in order to fill the funding gap. And those neighbors have been flexible in their idea of what the stairway could look like coming up with the plan that you have today. We have a great fiscal sponsor for this plan. The community has managed to avoid, any major complications from the fall of the Parks Alliance and has moved to a fiscal sponsor in the Green Benefit District with a decade long track record of delivering green open space connected projects in the area. And finally, supervisor Walton, he understood this immediately when I took him out there to look at it. He worked his way down the path. My shoes couldn't get there. He he came back up. He's like, okay. I get that. Let me know how I can support. And that's why you have this before you're here today. So thank you very much for your time, and please, please, please approve this nearly perfect project for the Potrero Hill and Dogpatch communities. Thank you.

[Brent Jalipa (Committee Clerk)]: And thank you, JR Eppler. Next speaker, please.

[Clement (public commenter)]: Good morning. Chairwoman Chang, supervisor Dursey. My name is Clement. I live very, very close to, the Potrero Hill Rec Center. In fact, we couldn't be any closer. We're really right below. The only thing separating us from the rec center is the path that we're talking about, the rocky, steep path, to access the rec center. And this is really, unfortunately, the main reason why we haven't been taking advantage of this rec center. It's, it's full of great amenities. There are tennis courts. My wife and I, we love playing tennis together. There are a couple of playgrounds. We have a two year old daughter. She loves to, go on the swings, and this, is the really the only, swing that there is in in the neighborhood. And yet, we've, again, barely gone to the rec center because it's so hard to access. The the only other way for us to get there would be to go up the hill and and do a little detour of, you know, a couple of blocks, which would be a whole other ordeal, taking the stroller out and going up the hill with that, and so on and so forth. So I was very excited to learn about this project. And, as soon as I did, I got involved with the, friends of the, Patrol Hill Rec Center, which is a an amazing group, working on making this happen. So for us, we would be very excited to see those stairs built. That would make the difference between using the rec center and currently, unfortunately, not using it. So thank you for considering it, and I hope that you will, vote in favor. Thank you.

[Brent Jalipa (Committee Clerk)]: And thank you for addressing this committee. Next speaker.

[Jennifer Serwer (Friends of Potrero Hill Rec Center)]: Hello, supervisor Chan and supervisor Dorsey. I'm Jennifer Serwer, and I'm one of the friends of Batura Health Rec Center. I've been working on this project since 2016, so we're almost ten years in. I use the rec center all the time. And I have a dog and a kid, and so I use it frequently. And one of the things that's really fun to do is to walk down the dog patch with your dog, and use the dog areas in dog patch, and then come back up. Which is not as easy as it could be without the stair. So it's a great project. So please just make our dream a reality today, and, approve this wonderful project. Thank you.

[Brent Jalipa (Committee Clerk)]: And thank you for your comments. Next speaker.

[Brenna Lord (public commenter, Dogpatch parent)]: Hello, chairwoman Chen, supervisor Dorsey. Thanks for your time today and your attention to this project. My name's Brenna Lord. I'm a parent that lives in the dog patch. I have two students that, went through SFUSD. One is now in eighth grade at Aptos, but was at Star King. And when he started kindergarten, we were telling him, oh, the stairs are coming. So we've been looking forward to it for a long time, and we do take that path daily. It is rocky. When the grandparents come to visit, we have to take the long way around, and it adds a good twenty minutes to the route to get up to the school. So instead of, you know, fifteen minutes, thirty five minutes in the morning, it makes a big difference. So we look forward to your hope for your approval of this project so we can finally get it done. Thank you.

[Brent Jalipa (Committee Clerk)]: Thank you much, Brenda Lord. Next speaker, please.

[James Harvey (public commenter)]: Hi. Supervisor Chan, supervisor Dorsey, my name's James Harvey. I'm one of the Butters on 22nd Street. My kids walk up that path every day to school, except when it's too muddy, and then they have to take the long way around and leave about twenty minutes earlier, like Brenda said. And, I just like to say, everybody on my street, supports the project, and we're very enthusiastic about it. So thank you for considering it.

[Brent Jalipa (Committee Clerk)]: And thank you much for your comments. Next speaker.

[Unidentified public commenter]: Supervisors, thanks for your patience, with this ten years of pent up desire and hope here. I I I'm gonna take a bigger picture. So between 2016 and 2019, back in the boom, 2,500 units of housing were added in Dogpatch. Trick question. How many children's play areas, city tennis or basketball or pickleball courts were there before the expansion, and how many are there now? The answer to both questions is zero. There are no city facilities down in Dogpatch to handle the thousands of new people that came in. The T Line gets extended to Chinatown. Lots of fanfare. Right? You can go from Bayview to North Of Market. How many pedestrian improvements were made to make it easier for the residents of Potrero Hill to get to the blessed T Line, or to one of only two Caltrain stations in the entire city of San Francisco. Also zero. The city's largest contiguous subsidized housing project anywhere in the city is on the Southern and eastern slopes of Telegraph of, Potrero Hill. How many efforts have been made to connect that facility to the amenities that surround it? So far, zero. So this precious little simple wood stair that these neighbors have tried for ten years to build is really something that the city ought to be doing in my estimation. And you think about all of the wonderful stairway walks and alley blocks, all the the crosstown walks, most of them rely on infrastructure that's 75 to a 100 years old. Between the world wars, we built streets and tunnels and bridges and stairways and alleys, and we haven't done a lot of that since. And while we have big grandiose projects, especially along the waterfront, your districts and this district could benefit by some simple parks and pedestrian passageways to encourage the community and the connectivity that makes neighborhoods so special.

[Brent Jalipa (Committee Clerk)]: Speaker's time has expired.

[Unidentified public commenter]: Thank you.

[Brent Jalipa (Committee Clerk)]: And with that, madam chair, with no further speakers, that completes our queue.

[Supervisor Connie Chan (Chair)]: Thank you. Seeing no more public comments, public comments now closed. Vice chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, chair Chan. And I just wanna express my appreciation to everybody for their persistence and hard work on this. I suppose, as a member of the budget committee, it's especially appropriate to thank everybody for their, those who contributed to the funding of this. And it occurs to me the next time I see Keith Goldstein at the gym, I'm gonna try to convince him

[Clement (public commenter)]: to move to, to move

[Supervisor Matt Dorsey (Vice Chair)]: to South Of Market because, I really appreciate, his leadership. I'm happy to support this, and I just wanted to express my gratitude to everybody.

[Supervisor Connie Chan (Chair)]: Thank you. And seeing that, what is your will, supervisor?

[Supervisor Matt Dorsey (Vice Chair)]: Madam chair, I would like to, move this to the full board with our positive recommendation.

[Supervisor Connie Chan (Chair)]: And roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion by vice chair Dorsey that we forward this resolution to the full board with a positive recommendation. Vice chair Dorsey? Aye. Dorsey, aye. Chair Chan?

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes with member and cardi excused.

[Supervisor Connie Chan (Chair)]: The motion passes. And, mister Clark, please call item number two.

[Brent Jalipa (Committee Clerk)]: Yes. Item number two is a resolution retroactively authorizing the Department of Homelessness and Supportive Housing to enter into a grant agreement amendment effective 07/01/2025 between the city and county acting by and through HSH and the, San Francisco health plan to continue to provide enhanced on-site services and permanent supportive housing and data integration under the housing and homelessness incentive program, amending the existing term of the grant agreement through 12/31/2025 with automatic one year term renewals effective January 1 of each year until the grant agreement is terminated by either party, increasing the grant amount by approximately 2,800,000.0 for a total not to exceed amount of approximately 6,000,000 and authorizing HSH to enter into any amendments or other modifications to the amendment that did not materially increase the obligations nor liabilities or materially decrease the benefits to the city and are necessary or advisable to effectuate the purposes of the agreement. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And today, we have Department of Homelessness in support for housing here.

[Dylan Schneider (Manager of Legislative Affairs, HSH)]: Thank you. Good morning, Chair Chan and Vice Chair Dorsey and Brent. I hope one day we'll give you a short title on one of these pieces of legislation. My name is Dylan Schneider. I'm the manager of legislative affairs with the Department of Homelessness in Supportive Housing. Happy to be here before you today with this grant agreement amendment with the San Francisco health plan for our second round of housing and homelessness incentive program, or HHIP state grant funds. So the resolution before you authorizes HSH to retroactively approve the first amendment to the grant agreement between HSH and the San Francisco health plan that will continue enhanced care services and permanent supportive housing and associated data integration. It will extend the term of the agreement through 12/31/2025, and include automatic one year extensions beginning January 1. It will increase the total not to exceed amount by approximately 2,800,000.0 for a new total not to exceed amount of approximately 6,000,000. And this proposed amendment was reviewed and approved by the homelessness oversight commission in August. Just a brief overview of the budget. The slide in front of you reflects, the breakdown of funding from both rounds of HHIP funding. We had 3,200,000.0 in round one that funded enhanced care in permanent supportive housing, capital projects at 14 permanent supportive housing sites, and that associated data integration. And with the 2,800,000.0 in round two funding that is being added under the proposed amendment, It will continue enhanced care in permanent supportive housing and data integration. So we wanted to just take a brief moment to share impacts and an update on the enhanced care program at the Kelly Kolen Community Permanent Supportive Housing site. And this is a really exciting and successful pilot that we have been partnering with Cardea Health over the last few years to run. This program also leverages the state's home and community based alternative waivers or the HCBA waivers through Medi Cal. And supervisor Dorsey, we're very happy that you were able to visit the program on-site last year with us. So this enhanced care services program supports, a 159 tenants at the Kellen, Colon community, and provides skilled nursing seven days a week, medical case management five days a week, and twenty four hour caregiving schedule. And all residents receiving these enhanced cares are considered medically fragile and higher acuity. And so having these on-site services, being able to keep them stably housed and healthy has, had some really great impacts. And so just a few of those over the last year, we saw a fifteen percent decrease in ER visits, twenty three percent decrease in inpatient admissions or hospitalizations, and a forty five percent decrease in the number of days spoke spent hospitalized. So again, really excited to be able to continue this program with this additional state funding. And with that, happy to take any questions.

[Supervisor Connie Chan (Chair)]: Vice chair Dorothy.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, chair Chan. So I think this if I understand it correctly, this is sort of what we had talked about as sort of a PSH plus

[Supervisor Connie Chan (Chair)]: Exactly.

[Supervisor Matt Dorsey (Vice Chair)]: Kind of enhanced care model. I I will say I'm happy to support this. One thing that I have observed, and I know that we've had these conversations, privately, but I think, too often we ask permanent supportive housing to solve problems that it wasn't intended to solve. And I think this is an expenditure of funding that is enhanced care to enable our part our well, our departments and our nonprofit partners to succeed to set them up for success. So I think this is money well spent, and I'm happy to support this.

[Supervisor Connie Chan (Chair)]: Thank you. Great. Thank you. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. We are now opening public comment for this item number two. If you have any members of the public who wish to address this committee. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comments, public comment is now closed. And, I would like to just move this item to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion to forward this resolution to the full board with a positive recommendation, vice chair Dorsey.

[Hao Xie (Strategic Sourcing Manager, Department of Technology)]: Aye.

[Brent Jalipa (Committee Clerk)]: Dorsey, aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes with member of Angadio excused.

[Supervisor Connie Chan (Chair)]: Thank you. And the motion passes. Mister Clerk, please call item number three.

[Brent Jalipa (Committee Clerk)]: Yes. Item number three is a resolution authorizing the Department of Public Health to submit applications to the California Department of Health Care Services under the Bond Behavioral Health Continuum Infrastructure Program round two, unmet needs program pursuant to the Behavioral Health Infrastructure Bond Act of 2024 for grants with terms not to exceed ten years with anticipated revenue to the city in excess of 25,000,000. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And we have Department of Public Health here.

[Kelly Kirkpatrick (Director of New Beds and Facilities, DPH)]: Morning, supervisors. Kelly Kirkpatrick, director of new beds and facilities at SFTPH. We have a brief presentation for you. Wonderful. We are here, seeking your authorization to apply for what we call bond B CHIP grants. Under proposition one passed by voters, the state had $6,400,000,000 of infrastructure bonds available, 4,400,000,000.0 dedicated to behavioral health projects in particular. We applied for projects under round one, which was 3,300,000,000 And now round two is available, and that is for $800,000,000 I will note, it's about a quarter of the size of available funding, and it's really focused on unmet needs. So with that, I'll move on to a reminder of kind of the eligibility for these one time state grants. Next slide, please. It is very limited and has specific eligibility requirements for, again, one time state capital funds. We need to expand or create new behavioral health infrastructure. We can't just improve existing facilities. We have to increase the capacity number of people served, with any capital infrastructure project. In general, they must provide Medi Cal billable services as well. So, for example, our board and cares, or residential care facilities are not eligible. And then you must demonstrate project readiness, which has a whole host of site control, ongoing funding identified, and of course, a board authorizing resolution, which is why we're here before you today. Again, this is no new operating funding. It is one time capital funds. Next slide, please. Just wanna share that we were successful in round one. We received nearly $28,000,000 for two projects. And, of note, is $21,000,000 for the behavioral health center locked bed expansion, which would be about 60 additional beds to our continuum there. And then, dollars 6,000,000 for 7th Street enhanced dual diagnosis project. I wanna appreciate the board's support of that prior grant application, and we look forward, to our round two applications. So next slide, please. Under round two, we do plan to request $26,000,000 in capital funds for two projects. The first is $14,000,000 for adult residential substance use disorder treatment beds on Treasure Island. We did apply in round one for this project as well. It would be adding additional beds at our planned, residential step down project out on the island. We would maintain the same residential step down capacity, but also be able to expand treatment to make it more of a continuum in the building. We are seeking $12,000,000 for a twenty four seven center available for law enforcement, for the upcoming health recovery and connection center, which, great appreciation to supervisor Dorsey and the board for approving the purchase of 1660 Mission yesterday. And so this would be seeking additional funding to build out this center on the 1st Floor. In addition, we plan to reapply. We did in the previous round for, with UCSF Health. I want to thank our UCSF partners for being here. Thank you, Dan. We are planning to reapply for our joint project, which would include 56 additional walks of acute treatment beds and six acute psych beds. We know that there is high need in the city. This is an expensive project, but we need the state to know that we have, you know, significant needs. And this is also kind of our, shared, statement of that priority as well. Next steps, Bond Beach at round two applications are due October 28. The awards are expected to be announced by the state in 2026. And funding is not guaranteed. Should we be awarded any funds, we will return, for appropriation authority and the grant agreements to you all, which we will be doing in the fall or winter for our Bonn Beach of Round one applications, which we were awarded. So with that, I'm done with my presentation, and happy to answer any questions that you might have.

[Supervisor Connie Chan (Chair)]: Vice chair vice chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, chair Chen. You'd mentioned that, the Prop one eligibility is premised on, new capacity, and I wanted to ask about 333 7th Street because that's that used to be a facility that it's gonna be again. Is it new capacity because it's ours? Or is

[Kelly Kirkpatrick (Director of New Beds and Facilities, DPH)]: it not It's new capacity because it closed in Okay. 2021. So it is not currently online. And so when we do open it, it will be new capacity to our system.

[Supervisor Matt Dorsey (Vice Chair)]: Okay. The I'm we we have talked about this. I'm excited about this investment. I know I traded calls with father George from Saint Michael's next door to see if he's okay with it. He I know that there's there was a little bit of neighborhood pushback about this and Saint Michael's church next door knows Joe Ruffin well. They used to host 12 step meetings for the folks there and I know they're happy with it. So I appreciate your efforts to, to reach out, and I appreciate everything you're doing on Prop one funding. So I'm hap I'm I'm happy to support this. So happy. I'd like to be added as a cosponsor, actually.

[Kelly Kirkpatrick (Director of New Beds and Facilities, DPH)]: Fantastic. Thank you, supervisor.

[Supervisor Connie Chan (Chair)]: Thank you. Help me understand a little bit about, and and maybe I'm I'm inaccurate, so please, help me, if I either you recall correctly or understood it correctly. The first round, when it came out, we applied roughly almost, like, a 100 or a little bit, 140,000,000. You got it. Right? And then we received 26,000,000, which is great. Great news. And then so now we're applying again, but this time around, we're applying for 26,000,000. Kinda help me understand, like, is it because less money that's actually available to us for the round two? Or or what is that we we have now reevaluate, like, our needs and we're we know very specific, so we're going for very specific, ask?

[Kelly Kirkpatrick (Director of New Beds and Facilities, DPH)]: It's a great question and great memory. Yes. We did apply for about a 140,000,000. I think it's a multitude of things. There's a quarter of the money available at the state level, so there's just less money, on the table. Additionally, it's a pretty high bar to meet all of those requirements. Expand treatment, site control, medical eligible programs. So we just have fewer projects that kind of meet that kind of bar. And I will note, with a joint application with UCSF, we will be applying, potentially, depending on who's the lead applicant, to up to a $100,000,000 with that 74 plus the 26. So we are making our needs known to the state, although we recognize that there's a lot less funding available this this round. And one thing I I also wanna note is that community partners are also eligible to apply for bond B CHIP. And and prior rounds, Friendship House won a significant, allocation, for their, project in the mission. And so we do entertain kind of requests from community partners for their applications, and we're we're receiving those now. So it's not just the city who could apply, but other entities. We do need to sponsor their letter of support and have awareness, but they would be the lead applicants.

[Supervisor Connie Chan (Chair)]: That's good to know. I mean, I think that's totally fine. I'm just trying to understand and learn more about the strategy. That makes a lot of sense. I think that, you know, it was very ambitious of of what we wanted to do, but I also think that that's okay. Like, I think that we've reevaluate our system, what is necessary, and getting the 26 out of what we aim for, still very impressive. And then to consistently just go back to the different rounds, and I do agree with you that I do appreciate UCSF partnership because it is important that we can't do it all as an entire system. We do need those partnership, and it's really also good to hear that Friendship House, have received a mound that to do their work. Because together, we're all serving San Franciscans, and in San Francisco. So that that's really good news. Thank you so much for walking me through. That's really helpful. And I don't see any, we don't have any other questions. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. If you have any members of the public who wish to address this committee regarding item number three, and that was your opportunity. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comments, public comment is now closed. I would like to move the item to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on the motion to forward to the full board with a positive recommendation, vice chair Dorsey. Aye. Dorsey, aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes with member of Gardo excused.

[Supervisor Connie Chan (Chair)]: The motion passes. That, mister Clark, please call item number four.

[Brent Jalipa (Committee Clerk)]: Yes. Item number four is a resolution retroactively authorizing the office of the district attorney to accept an expanded grant in the amount of approximately 233,000 from the California Department of Industrial Relations for the workers' rights enforcement grant program to implement a wage theft enforcement program for the period of 08/01/2025 through 07/31/2026. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And we have the district attorney's office here.

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: Yes. Good morning, madam chair. Good morning, supervisor Dorsey. Ernst Halperin from the San Francisco district attorney's office. I'm the worker rights prosecutor in the office. This is a grant, that is the second grant of two one year grants, pursuant to legislation that granted the Department of Industrial Relations, I think, $19,000,000, to support state, local level, and county level efforts to combat wage theft. It's we applied last year, got two thirds of a full time equivalent investigator support from the department. This year, it's enough for one full time equivalent investigator plus the mandatory audit costs. If you have any questions, I'm more than happy to answer them.

[Supervisor Connie Chan (Chair)]: So is this, for this, specifically just for wage theft?

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: To combat wage theft. So that that occurs, among low income populations. We're looking specifically we've done traditionally in the office a lot of civil enforcement, against new economy companies, Handy, DoorDash. The emphasis that I have now is to do more criminal enforcement. We are the only office of that is in the city and county that is empowered to actually have criminal enforcement of the wage and hour laws for the most egregious violators, and specifically, looking for cases and having cases that reach the most vulnerable members of the population, people who are earning subminimum wage. Department of Labor Standards and Office of Labor Standards Enforcement does a wonderful job. They have they've recovered a lot of money. But even with that situation, only 6% of the restitution recipients in those cases were in the population that I'm looking to target. To conduct a criminal investigation, you have to have an investigator.

[Supervisor Connie Chan (Chair)]: Yeah.

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: I can't put myself on the stand in in a court. So that's this is specifically to combat wage theft, also in support of human labor trafficking cases, which by definition involve wage theft.

[Supervisor Connie Chan (Chair)]: Vice chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Thanks so much, chair Chen. This is, close to my heart. When I worked in the city attorney's office, I always felt the wage theft, cases were some of the most important work we can do. Not just to bring wrongdoers to justice, but also to send a message that this is not a city that's going to tolerate that kind of exploitation. So, I'm happy to support this. I'm curious about, does the does the district attorney's office do wage theft cases with its seventeen two hundred authority as well?

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: Yes. We do. We had a case against Handy, which is, like, you know, Handyperson, app, based services. That resulted in a significant restitution in the millions of dollars, to the victims of the wage theft there and agreement of a plethora of conditions that would ensure that, in fact, the people have the the workers actually have the independence and independent decision making ability to be properly classified as independent contractors. We just got a that's a stipulated judgment. We got a stipulated judgment against DoorDash in a case that was brought in 2020, before the passage of Prop 22. That resulted in, they stipulated to 1,800,000.0 in civil penalties, 320,000 in restitution to a group of about 700, victims. There had been early on, the court decided that, very early on in the case, that if, you had been a class member in a $100,000,000 private settlement, you were not eligible for restitution. So very small group. Right. So we do. The office does bring $17.02 hundreds in wage theft cases, and we are open to considering them as well, and continue to, investigate them. This, but we also would like to focus on criminal enforcement because sometimes civil penalties can just be a cost of business.

[Supervisor Matt Dorsey (Vice Chair)]: The on the civil penalties, it's my understanding with seventeen two hundred that that there there are under the statute, there's restrictions that it has to be applied to more seventeen two hundred cases and Correct. More seventeen two hundred enforcement.

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: Correct.

[Supervisor Matt Dorsey (Vice Chair)]: Do do you ballpark know what how much the DA's office has in that account?

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: I do not.

[Supervisor Matt Dorsey (Vice Chair)]: Okay. That's fine. I can I can find out? Okay. This is I'm happy to support this. Thanks.

[Supervisor Connie Chan (Chair)]: In addition, though, just kinda out of curiosity, I my assumption is the grant itself, it's is is it the grant itself specifically about wage theft enforcement? But your units do a wide range of things. Why more than just wage theft, and and as you indicated. And what about anything that is related to a Cal OSHA violation? Will how how do we deal with that on a local level?

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: Sure. The dealing with Cal OSHA is violations. That also comes through the white collar crime unit of the district attorney's office, and is handled, traditionally, statewide, and it's handled by, the, a dedicated lawyer in the case that handles those types of cases, and there is an it's usually the same investigator that does the environmental investigations as well. So there there's a mechanism there. This grant from the Department of Industrial Relations, though, is only to be used to support wage theft investigations. And so

[Supervisor Connie Chan (Chair)]: Thank you so much for your work. It's very important work. We appreciate you.

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: Thank you.

[Supervisor Connie Chan (Chair)]: And with that, let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. If we have any members of the public who wish to address this committee regarding this item number four, now is your opportunity. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Thank you. And seeing no public comments, public comment is now closed. I would like to move this item to a full board with a recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on the motion to forward to the full board with a positive recommendation, vice chair Dorsey. Aye. Dorsey, aye. Chair Chan. Aye. Chan, aye. We have two ayes with member Engadio excused.

[Supervisor Connie Chan (Chair)]: The motion passes. Mister Colette, please call item number five.

[Brent Jalipa (Committee Clerk)]: Yes. Item number five is a resolution retroactively approving the agreement between the city acting by and through the Department of Children, Youth, and their Families and the San Francisco Unified School District for the Student Success Fund for a term of one year from 07/01/2025 through 06/30/2026 and for a total not to exceed amount of approximately 29,000,000, and to authorize DCYF to make any modifications to the agreement that do not materially increase the obligations nor liabilities to the city, and are necessary or advisable to effectuate the purposes of the agreement for this resolution. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And director Dorsey Smith, it's good to see you again.

[Sharice Dorsey Smith (Executive Director, DCYF)]: Great to see you too. Thank you, and good morning, chair Chan and vice chair Dorsey. Sharice Dorsey Smith, executive director for the Department of Children, Youth, and Families. And I'm here today to present the student success fund in San Francisco Unified School District agreement for your approval. As you are aware, in November 2022, voters passed proposition g. This legislation amends the city charter to provide additional set aside money for the school district from existing city funds, to be placed in a new student success fund fund. Just to remind you of the benefits of this wonderful, fund is that it provides long term funding for innovative and effective strategies that are necessary for all students to achieve academic success and social emotional wellness at their school sites. The educational goals that are accomplished is in deep collaboration with the students, parents, educator educators, and staff of community based organizations that use strategies like the community schools model. This contract with SFUSD for the student success fund is over 10,000,000 and requires board approval, and it's from July 07/01/2025 through 06/30/2026 with the not to exceed amount of 28,996,871. Next slide. So there are three sections of funding that I just wanna bring to your attention. So we have grants to schools, district innovation, and administration. Under grants to schools, there's three subcategories. You have rapid response, readiness grants, and implementation grants. For rapid response, that's short term funds for emergency needs and emergent strategies that come, from the school sites. For the readiness grants, these are grants that were, allocated to school sites to support the development of a cohesive community, school plan, and then you have the implementation grants, which are the funds to actually manage the community schools plan that those school sites have already, established. Under district innovations, there's two categories. You have the district innovation grants, and I know it's double to say district innovation and district innovation grants. But these grants will support cutting edge ideas and programming that results in higher academic achievement, social emotional learning at all the eligible school sites. This is these grant this particular grant is with the central office and school staff, so it requires a partnership between the two, school sites. Like, it has to be two or more school sites that actually participate in this district innovation grants. And then it's the technical assistance and this is the technical assistance and capacity building that's provided to all the school sites, both readiness school sites and district innovation school sites, to help support the movement of the program, the development to provide the professional development, needed to teachers, to staff, and to ensure that the school is able to meet the goals that they identified. And then the last bucket is administration and that's just support to both, SFUSD and DCYF to administer, these grants. Next slide. So, I'm not gonna go through these two slides. I'm gonna leave this for you to peruse at your leisure. This is just a small, small recap of what happened last year. There'll be a more comprehensive report that's gonna come out in October that'll cover what was done, for the grants to schools and district innovation, as well as our technical assistance and capacity building. It'll talk about the goals of the schools and where they are in meeting those midterm goals that should be met by 2026 and then their long term goals, in 2029. So we will go through this slide and the next. That just gives you, under district innovation, a little snapshot of some success for the whole school lesson study pilot which focuses on math and literacy for four schools, where they started, and where they ended, at the end of last school year. So, finally, the student success fund provides additional resources to SFUSD to accomplish the grade level success in core academic subjects and then to improve the social emotional wellness. In fiscal year 2526, 35,000,000 is allocated for a student success fund with 28,900,000, to be contracted with SFUSD for the grants to schools, the district innovation grants, as well as a small portion for administration. What's new is that we did a 10%, is allocated for as needed projects that come up. It could be an expansion into the grants for schools, into district innovation, or what have you, but approximately 3,200,000.0 will be contracted out directly to DCYF for technical assistance and evaluation, with 1,225,000.000 going towards administrative support. And with that, I'm complete. And thank you.

[Nick Menard (Budget and Legislative Analyst)]: Good morning. Nick Menard from the Budget Legislative Analyst's Office. Item five is a resolution that retroactively approves a grant agreement between DCYF and the school district. The agreement runs from July 2025 through June 2026 and has a value of $28,900,000 We summarized the different grant types on page five of our report and also the programs On page 11 of our report, there are about 58 programs to individual schools, and then three district innovation programs funded by this grant now. We also show the budget for this grant and the overall student success fund on page seven of the report. Dollars 35,000,000 is budgeted for the student success fund in this year's budget. This grant is $28,900,000 and DCYF is retaining about $6,000,000 for administration and technical assistance, which is funded under separate contracts. So I think relative to last year, the programs have come into focus. The performance measures of the programs that were supposed to be developed by December 2024 were developed. And we reviewed those. We don't know what the actual outcomes against those measures are yet, because that report won't be read until October. So we can review those next year, when we look at the grant next year. We recommend approval of item five.

[Supervisor Connie Chan (Chair)]: Thank you. Director Dorsey Smith, I think my question is that, you know, according to the budget and legislative analyst report, you will be recruiting and selecting a third party evaluator, to help you evaluate some of these, performance, and setting up metrics of these or according to the metrics and baseline. Can you help us understand, one, your timeline for that to select that evaluators? And then second, it's also the funding for that, as well as the funding source for that, hiring that firm for evaluation.

[Sharice Dorsey Smith (Executive Director, DCYF)]: Yeah. So we're in the process of selecting the evaluator, identifying who it will be, With a a a provider that we worked with last year and going into this year, they're they're helping us create the report that will be coming out in October. But for the evaluator, we wanna look at two years of data, two years of the program being implemented. Is this the right approach? Are these the right categories? Is this the right way we need to, be supporting the schools? So they will be able to produce a report in June 2026. I'll say I'll say July 2026 to that encapsulates those things. The funding source is student success fund dollars. So it's part of that 3.2 that we're retaining. Those dollars will support the evaluate and evaluators who we select.

[Supervisor Connie Chan (Chair)]: Got it. And so it's a $3.3400000.0 dollars within the administrative cost. Is that

[Sharice Dorsey Smith (Executive Director, DCYF)]: what it is? It's the, no. It's the, it's the $3.23200000.0 dollars. That we have towards TA and evaluation, but not all of that goes to evaluation.

[Supervisor Connie Chan (Chair)]: Of course.

[Sharice Dorsey Smith (Executive Director, DCYF)]: So around close to 2,000,000 is embedded into TA and capacity building with the multiple providers for all the school sites. And then, currently, there's around I think it's 400,000 that we're looking at for the evaluation.

[Supervisor Connie Chan (Chair)]: Understood. For the from the technical support Yes. Category.

[Ernst Halperin (Worker Rights Prosecutor, District Attorney's Office)]: Yes.

[Supervisor Connie Chan (Chair)]: Great. Thank you. I don't have any additional questions. Thank you so much for your work. I'm really excited. And this is gonna be right? Like Yes. This has come in a very critical time, I think, for SFUSD. I appreciate their partnership. I really do appreciate your work to really making sure that they they're successful. Now we just need to make you, like, a permanent director for us.

[Sharice Dorsey Smith (Executive Director, DCYF)]: That may be coming soon.

[Supervisor Connie Chan (Chair)]: I appreciate that. Thank you. And and I support her a bit. I just wanna say out loud on the record, that I really appreciate your work. I think you and Superintendent Sue make a great partner, you know, and try to turn this around. And you really have been. And I think that serves San Francisco families well. So we appreciate your work.

[Sharice Dorsey Smith (Executive Director, DCYF)]: Thank you.

[Supervisor Connie Chan (Chair)]: Thank you. And with that, let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. We are opening public comment for this item number five. If we have any members of the public who wish to address this committee. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comments, public comment is now closed. And I would like to move this item to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on the motion to forward to the full board with positive recommendation, vice chair Dorsey. Dorsey, aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes with member and guardian excused.

[Supervisor Connie Chan (Chair)]: The motion passes. And mister Clerk, please call item number six.

[Brent Jalipa (Committee Clerk)]: Yes. Item number six is a resolution approving amendment number one to the terminal two retail market in and Harvey Milk terminal one specialty retail stores concessions lease between MRG, San Francisco terminal two LLC, as tenant, and the city and county act by and through its airport commission

[Supervisor Matt Dorsey (Vice Chair)]: as landlord,

[Brent Jalipa (Committee Clerk)]: for the addition of three locations to the for the addition of three locations to the premises of the terminal two retail market for a term of twelve years to commence on 10/01/2025 through 10/01/2037 with no adjustment to the minimum annual guarantee of 2,300,000.0. Madam chair.

[Supervisor Connie Chan (Chair)]: And we have SFO, San Francisco Airport here.

[Daniel Singh (San Francisco International Airport)]: Good morning, chair Chan. Good morning, vice chair Dorsey. Daniel Singh with, SFO. The airport is seeking your approval of amendment number one to an existing lease with MRG San Francisco terminal two, LLC. This amendment proposes a permanent addition of a four zero nine square foot news wall and a temporary addition of two specialty retail stores measuring five sixty three square feet and six zero nine square feet respectively. There will be no changes to, the current twelve year lease term or the minimum annual guarantee rent of 2,300,000.0, while MRG occupies the news wall and the temporary specialty retail spaces. The annual promotional charge will increase from 6,915 to 8,496. And, once the temporary retail spaces are vacated, the charge will adjust to 7,324. This amendment is intended to partially mitigate the more than three year delay MRG has experienced in accessing its permanent location in Terminal 2. The delays are due to a temporary relocation of the AmEx Centurion Lounge from Terminal 3, which is undergoing the redevelopment as part of the Terminal 3 West development project. The airport anticipates that AmEx will vacate the space sometime between October 2027 and March 2028, depending on the progress of the development project. The BLA has recommended approval. I'm happy to answer any questions after the report.

[Nick Menard (Budget and Legislative Analyst)]: Item six is a resolution that approves an amendment to a lease agreement between the airport and MRG San Francisco terminal two, LLC. We summarize this to change to the space that's leased on page 20 of our report. What is essentially happening here is that one of the spaces that is part of the original lease is not available to the tenants. So the airport's providing two temporary spaces and one permanent space, to, attempt to make them partially whole for not being able to use that space. These three additional spaces are still, less than the space that they're not able to use. And in part, for that reason, there's no change to the minimum guaranteed rent under the lease. The airport will generate additional revenue, because even though there's no mag change and no mag for these spaces, there is percentage rent that will be generated from new business at these spaces. So we recommend approval of item six.

[Supervisor Connie Chan (Chair)]: Thank you. I don't have additional questions today. Thank you for your work on this, and so we'll go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. If you have any members of the public who wish to address this committee regarding this item number six, now is your opportunity. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comments, public comment is now closed. I would like to move this item to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion to forward to the full board with a positive recommendation to vice chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Dorsey, aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes. Member Magardio excused.

[Supervisor Connie Chan (Chair)]: The motion passes. Chuck Clark, please call item number seven.

[Brent Jalipa (Committee Clerk)]: Yes. Item number seven is a resolution authorizing the Department of Technology to approve the second amendment with AT and T doing business as AT and T Mobility to purchase public safety grade wireless communication services for first responders, extending the term by eighteen months from 10/01/2025 for a total term of 06/23/2020 through 04/21/2027 and increasing the agreement amount by approximately 7,300,000.0 for a total contract amount not to exceed 29,600,000.0 pursuant to the charter. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And we have department of technology here.

[Hao Xie (Strategic Sourcing Manager, Department of Technology)]: Hi. Good morning. Chair Chang, vice chair Dorsey, and colleagues. My name is Hao Xie, strategic sourcing manager with the Department of Technology. I'm here to seek your approval of the second amendment to the FirstNet agreement with AT and T. The proposed amendment makes two simple changes to the existing agreement. It extends the contract term by eighteen months, and increases the NOCTIX amount by 7,300,000.0. FirstNet is a public safety grade wireless network that prioritizes first responders and supporting departments during emergencies. Today, 17 departments are using the network. The top five users are, please, MTA, DPW, Sherriff, and Rekon Park. The estimated annual spend is about 4,800,000.0 in 2025. And the average monthly cost is $44.22 per line. This amendment is necessary for three reasons. First, it aligns with the state's CalNet contract timeline. Second, it ensure we continue receiving the CalNet contract benefits, such as no minimum commitment, months to months flexibility with no termination fee, and guaranteed best pricing. Third, it support the city's top priority on public safety and clean streets. I also want to highlight the work DTE has done to control cost. For example, in 2023, we implemented the city wide mobile device use policy, and developed the dormant cell phone tool. Over the past two years, we removed 1,161 inactive lines, and slow spending growth from nearly 30% in FY '22 to 10 to 11% in FY 2425. Going forward, we will continue to provide data and support city oversight to strengthen departmental accountability. Before closing, I'd like to thank my colleagues, Fen Wah Wang and Jeremy Pollock for their outstanding analytical support. They're also here to help answer questions if you have any. Thank

[Supervisor Connie Chan (Chair)]: you. Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Item seven is a resolution that approves an amendment to the Department of Technology's agreement, with AT and T. The amendment extends the agreement 18 and then adds $7,300,000 to the not to exceed amount for a total value of $29,600,000 The purpose of the extension is so it could be coterminous with the state's agreement with AT and T for these services. And the city basically piggybacks off that agreement, for this contract. We note that there's been a lot of growth in cellular devices in San Francisco over the past several years. In 2020, the city administrator issued a policy around device management that DT is partially responsible for. They provided a lot of data to us, as part of our review of this contract. And it shows that they have been deactivating, providing reports to departments, so that departments can deactivate lines when they're inactive. Under that policy, departments are supposed to also provide the Department of Technology with a justification for the business use of each cell line. That doesn't always happen. And so based on the data that we got from DT, so the city has about 20,000 cell devices. About 15% of them, the 3,600, do not have are inactive, meaning that there's been no activity in sixty days. And then of those, just over half of them have no documented business justification. And so under the policy, it really is up to the departments, like the financial managers at each city department, to terminate those devices. DT's role is really to be a kind of clearinghouse for the data and alert provide reports to departments so that they can manage their cell phone use. And so just crunching the numbers, we think that there's about $984,000 in potential savings if the inactive cellular lines with no business justification are deactivated. So that's one. The other one, the other potential area of savings is that this this particular cell plan is for first responders. It's higher cost for that reason. There's also three other cell contracts that the city has, with AT and T, Verizon, and T Mobile for more typical use. There's a there's a range in monthly costs from those providers, and there could be some savings by concentrating among the lowest cost provider, rather than letting people choose. So those are the policy considerations for this item, but I think this particular amendment, we recommend approval of item seven.

[Supervisor Connie Chan (Chair)]: Thank you. So I think this is more for the mayor's budget office. If you could be so kind to send, you know, this, note to director Kittler and letting her know that in this coming budget, we are looking forward to see, that for all the city departments to implement the policy, by the time that they come back for their budget proposal is that any inactive line for sixty days, they should just end it or provide a business justification knowing that we could save up to almost a million dollars per year. And that, you know, I think that we need to evaluate with city departments, for those that are not first responder, non emergency cell phone holders or cell phone accounts, need to be reevaluated and be aligned with the city's policy, under both the Department of Technology and the city administrator. Yes? Thank you. So thank you for your presentation today. We appreciate you bringing this to us. And I also really appreciate the Department of Technology, for the last couple years, your efforts, both to consolidate the contract, and to make sure that we get the best, you know, more bang for our buck, but also, the fact that you kind you really push forward with the policy. But I think that this is the moment where we're we're going to look to the administration to provide us, some little bit of the oomph to to really make it work. So thank you.

[Hao Xie (Strategic Sourcing Manager, Department of Technology)]: Yeah. Thank you, chair Chen.

[Supervisor Connie Chan (Chair)]: Thank you. And with that, let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. So if we have any members of the public who wish to address this committee regarding this item number seven, Now is your opportunity. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comment, public comment is now closed.

[Jennifer Serwer (Friends of Potrero Hill Rec Center)]: I

[Supervisor Connie Chan (Chair)]: would like to move this item to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: On the motion to forward to the full board with a positive recommendation, vice chair Dorsey.

[Hao Xie (Strategic Sourcing Manager, Department of Technology)]: Aye.

[Brent Jalipa (Committee Clerk)]: Dorsey, aye. Chair Chan. Aye. Chan, aye. We have two ayes with member Encarno excused.

[Supervisor Connie Chan (Chair)]: The motion passes. And, mister Clerk, please call items eight and nine together.

[Brent Jalipa (Committee Clerk)]: Yes. Item numbers eight and nine. Our resolutions approving contracts between the city and county acting by and through the office of contract administration, with the following, with an initial term of five years, commencing on 11/01/2025 through 10/31/2030, with the option to extend for up to three additional years and to authorize OCA to enter into amendments or modifications that do not materially increase the obligations nor liabilities to the city and are necessary to affect the perp, the purposes of their respective contracts. Item number eight is with Golden Gate Petroleum for the supply of diesel fuel for a total not to exceed amount of 195,000,000. And item number nine is with Pacific Coast Petroleum for the supply of gasoline fuel, for a total not to exceed amount of 93,000,000. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you, mister Clutch. And today, we have the office of contract as administration here.

[Sophie Hayward (Office of Contract Administration)]: Good morning, chair Chan. Good morning, supervisor Dorsey. I'm Sophie Hayward here on behalf of the office of contract administration from the office of the city administrator. We are here with a request for approval of two fuel contracts for the city, one for diesel and one for gasoline. And I have a short presentation here. The proposed contract with Golden Gate Petroleum for the supply of diesel fuel has a total not to exceed amount of $195,000,000 And the proposed contract with Pacific Coast Petroleum for gasoline has a total not to exceed amount of $93,000,000 And both have an initial five year term that would begin on November 1, and an option to extend for three additional years. So first up, we have the diesel contract. The contract itself provides diesel fuel for all city departments. But by far, the heaviest user is MTA, which accounts for about 80% of the encumbrances on the contract. The total not to exceed amount is based on average annual spending over the last four years, which was about $17,600,000 And that includes a 20% contingency to account for market volatility and fluctuation. Fuel delivery prices in both cases for gas and diesel is based on what is published by the Oil Price Information Service, which is an independent industry research firm. Golden Gate Petroleum was selected as part of a competitive process, a competitive solicitation conducted this summer. And this was the lowest of the four responsive bidders. And then the second contract is the gasoline contract. This is with Pacific Coast Petroleum. The contract provides gas for all city departments. And in this case, the primary user is the fleet management division, which accounts for over 60% of the encumbrances. The $93,000,000 NTE included in this contract is also based on the average annual spending, which is about $8,300,000 over the last four years and includes a 20% contingency to account for market fluctuations. Pacific Coast Petroleum was also selected this summer after a competitive process that yielded four responsive bidders. And it was the lowest bidder. That concludes my presentation. We're hopeful, and we recommend that this committee authorize OCA to enter into the two contracts for fuel, one with Golden Gate Petroleum and one with Pacific Coast Petroleum for gasoline. I do have a very small amendment that I believe the deputy city attorney has determined is non substantive, and that is if this is okay to note this at this moment. I believe on your copy, it's on line 12, of the Pacific Coast Petroleum contract. The contract number is 1368201. We had originally submitted a contract number that ended in 23.

[Supervisor Connie Chan (Chair)]: Thank you. Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Items eight and nine are two resolutions that approve new contracts with fuel providers. 250884 is, a resolution approving a contract with Golden Gate Petroleum for diesel fuel for up to $195,000,000 And 250885 is a resolution approving a contract with Pacific Coast Petroleum for gasoline for $93,000,000 Each contract has a five year initial term with three optional extensions for one year. So the total term would be eight years. As we detail on page 33 of the report, the basis for these contract values is essentially historical spending on these fuels projected forward based on historical changes in fuel prices, which we got from OCA and then validated independently. Based on historical spending, approximately 70% of gasoline purchases are funded by the general fund, but only 17% of diesel purchases are funded by the general fund, because most of the diesel is actually used by MTA. The contracts also include performance measures to protect the city, including delivery time frames, product availability, and other kinds of reporting to OCA. And we recommend approval of items eight and nine.

[Supervisor Connie Chan (Chair)]: Thank you. I don't have additional questions. Thank you so much for bringing this forward. But I'll ask I have some, like, just technical questions, but not important. I'll ask offline. And so with that, let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: If we have any members of the public who wish to address this committee regarding both these items eight and nine, now is your opportunity. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comment, public comment is now closed. I would like to move these two items to full board with recommendation, and a roll call, please.

[Brent Jalipa (Committee Clerk)]: Madam chair, before we take that vote, there was amendment.

[Supervisor Connie Chan (Chair)]: I would like to first amend, is that the item number nine? Sorry. Item number nine. Thank you. Item number nine, as, proposed by the Office of Contract Administration, to correct the number for the proposed contract and to move the amended item number nine and item eight to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion to accept the amendments to item number nine to correct the contract number and to forward both resolutions to the full board to the positive recommendation, item nine as amended. Vice chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Dorsey, aye. Chair Chan?

[Supervisor Connie Chan (Chair)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chan, aye. We have two ayes with member and guardian excused.

[Supervisor Connie Chan (Chair)]: The motion passes. Mister Clerk, do we have any other business before us today?

[Brent Jalipa (Committee Clerk)]: Amend. Chair, that concludes our business.

[Supervisor Connie Chan (Chair)]: Thank you. And the meeting is adjourned.