San Francisco Government SmartTranscripts:

[Supervisor Connie Chan, Chair]: Good morning. Good morning. The meeting will come to order. Welcome to the 11/05/2025 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, shortly by supervisor Danny Sowder. Our clerk is Brent Haliba, and I would like to thank Suess Enoz from SFgovTV 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, it 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 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 and by the doors, 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 Goodlet Place, Room 244, San Francisco, California 94102. And finally, due to our observance of Veterans Day, items acted upon today are expected to appear on the board of supervisors agenda of November 18, unless otherwise stated. Madam chair?

[Supervisor Connie Chan, Chair]: Thank you, mister Clerk. And, again, reminding, everyone, the general public, and welcome, supervisor Sauter. And that, for all the items that have budget and legislative analyst reports, we typically will go to the department for presentation, and then we will go to the budget and legislative analyst for their, reporting back. And then we can go to comments and questions from this body, and then we'll go to the public comment. And so with that, mister Clerk, please call item number one.

[Brent Jalipa, Committee Clerk]: Yes. Item number one is an ordinance amending the administrative code to create the small business rezoning construction relief program to provide financial support, including grants and loans to businesses impacted by construction relating to the city residential rezoning program, adopted in 2025 to 2026, establishing the small business rezoning construction relief fund to receive monies for the program, designating the office of small business and office of economic and workforce development to administer the fund and the program and promulgate rules and regulations in furtherance of the program and amending the business and tax regulations code to follow to allow taxpayers to designate a portion of their gross receipt taxes for deposit in the fund. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you. And, we wanna welcome, supervisor Mirna Malgour to the chamber, and this is an item that actually, was heard and continue from last week. And, due to substantive amendments that it had to be continued. And, the floor is yours, supervisor Malgar.

[Supervisor Myrna Melgar]: Thank you, chair Chan. I don't have, much to add. Just to, point out, since we did substantive amendments, I hope that you had a chance to review them. The amendments were meant to, reflect the reality that for some small businesses, their profit margins are shorter because of the nature of their business. Their overhead is higher. And those businesses are restaurants, of which there are so many in our hospitality based economy in San Francisco. So that's it. And I hope that you can support it, and I look forward to the partnership on all these issues.

[Supervisor Connie Chan, Chair]: Thank you. I don't see any name on the roster. I do not have additional question. Let's go to public comment on this item.

[Brent Jalipa, Committee Clerk]: Yes. We are now opening public comment for this item. Number one, 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. Colleagues, I would like to with the support and urging of supervisor Malgar, I would like to move this item as now amended to full board with recommendation and a roll call, please.

[Brent Jalipa, Committee Clerk]: And on that motion to forward the ordinance to the full board with a positive recommendation, vice chair Dorsey. Aye. Dorsey, aye. Member Sauter? Aye.

[Supervisor Danny Sauter]: Sauter, aye. Chair Chan?

[Supervisor Connie Chan, Chair]: Aye.

[Brent Jalipa, Committee Clerk]: Chan, aye. We have three ayes.

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

[Brent Jalipa, Committee Clerk]: Yes. Item number two is a resolution authorizing the mayor's office of housing and community development to execute a standard agreement with California Department of Housing and Community Development under the infill infrastructure grant program, catalytic qualifying infill area for a total award of 45,000,000 disbursed by CalHCD as a grant to the city, for infrastructure improvements for the housing development related to the revitalization and master development of replacement public housing, affordable housing, and market rate housing, commonly known as the Sunnydale Hope SF development, the housing development related to the revitalization and master development of affordable and market rate housing, commonly known as Treasure Island project, and the housing development related to the mixed use urban village, including affordable and market rate housing pardon, commonly known as the India Basement sorry. India Basin Development. For the period starting on the execution date of the standard agreement through 06/30/2031, and any and all other documents required or deemed necessary or appropriate. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you, mister Clark. And today, we have the mayor's office of housing and community development here.

[Robert Baca (MOHCD Joint Development Director)]: Good morning, members of budget and finance committee. My name is Robert Baca. I'm the joint development director, of mayor's office of housing and community development. I do have a slide. Okay. So today I'm here to present file two five one zero five four. It's an accept and expand resolution for infill infrastructure grant, also known as IAG funds for $45,000,000 In 2023, the city of San Francisco responded to a state issued RFP and was awarded $45,000,000 to support infrastructure improvements. The city plans to apply these, these funds to India Basin, Sunnydale, Hope SF, and Treasure Island. The first project is India Basin. It's led by build SF and the B and B company. Who's the lead for the affordable housing component. It's a total it's planned for a total of fifteen seventy five new homes, of which 25% will be affordable units. 209,000 square feet of commercial space and 14 acres of public space, including transit improvements. The part, that we're referring to for IAG application purposes is India based in phase one. And so part of the application included three ninety two total units of which 181 are affordable units, 45,000 square feet of commercial retail, and five acres of public parks, and new streets, utilities, and transportation improvements. Right now, tied, with this phase, which we which we included in this award, is, Treasure Island E 1.2 senior, which is a 100 units of senior housing, funded with Hut 202. And, currently there's a tight MOCD pre development loan, and we also plan to provide a gap loan, pad and utilities, through stage two infrastructure. And then there'll be shared site access and a fire road with behavior health. The second project is E one point two behavioral health, which is six stories, 68,000 square foot facility, totaling two fifty six beds. Currently, there's funding from DPH, Prop A Bond, TIDA Development Subsidy, and CDSS CCEE. So right now, the plan is to start that in 2027. But, obviously, the critical path is pad delivery. There's a lot of infrastructure we're going on right now. And this, this grant would actually pay for, I'll just pull it up really quick. And this grant would actually pay for shadow conduit installation, the Yoruba Buena Island multi use path, and then East Side Commons infrastructure improvements, which is tied to IC 4.3, which is a third project. And that consists of 150 family units in a childcare center. They applied for AISC this spring and we're waiting to hear back if that project was awarded HCDA ASEC funding, hopefully in December. There's currently a tied MOCD pre development loan and we also plan to fund a gap. Thank you for your time. I'm happy to answer any questions. And, we also accept all the, clerk changes on the resolution.

[Supervisor Connie Chan, Chair]: Thank you. And, Vice Chair Dorsey.

[Supervisor Matt Dorsey, Vice Chair]: Thank you, Chair Chan. I do wanna express my gratitude to everyone who has worked on this, including the state. Representing Treasure Island, one of the things that I'm aware of is that we have a lot of people there who are experiencing the issues that play out because they don't have the infrastructure. I know Treasure Island has had, I think, more than 500 power outages since 1997. It's four times higher than the citywide average. There's, I think often when we talk about, when we talk about infrastructure, you know, there's not there aren't people there but I think I know for for my district, and for the neighborhood that I represent there, There's a lot of great things happening. Obviously, there's a lot of people have been waiting a long time for this, so I appreciate the, the the work on this. I'd like to be added as a cosponsor.

[Unidentified participant (brief interjections)]: Thank you.

[Supervisor Connie Chan, Chair]: Thank you. I don't see any other name on the roster. I do not have additional question. Thank you so much for your work, and

[Budget and Legislative Analyst (staff presenter)]: Thank you.

[Supervisor Connie Chan, Chair]: Thank you. And we'll go to public comments 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 two, now is your opportunity to, approach the lectern. Madam chair, we have no speakers.

[Supervisor Connie Chan, Chair]: Seeing no public comments, public comment is now closed. What is your will, vice chair?

[Unidentified participant (brief interjections)]: Thank you, chair Chan.

[Supervisor Matt Dorsey, Vice Chair]: I would like to make a motion to send this resolution out to the full board of supervisors with our positive recommendation.

[Supervisor Connie Chan, Chair]: Wonderful. Roll call, please.

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

[Supervisor Matt Dorsey, Vice Chair]: Aye.

[Brent Jalipa, Committee Clerk]: Dorsey, aye. Member Sauter? Aye. Sauter, aye. Chair Chan?

[Supervisor Connie Chan, Chair]: Aye.

[Brent Jalipa, Committee Clerk]: Chan, aye. We have three ayes.

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

[Brent Jalipa, Committee Clerk]: Yes. Item number three is a resolution approving for purposes of internal revenue code of 1986 as amended the issuance and sale of revenue obligations by the California Enterprise Development Authority in an aggregate principal amount not to exceed 5,000,000 to refinance the cost of acquisition, rehabilitation, improvement, installation, and equipping of a portion of administrative facilities owned and operated by Mission Economic Development Agency. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you. And today, we have, our controllers here.

[Keith Savini (Controller’s Office of Public Finance)]: Good morning, chair Chan and supervisors. Keith Savini from the controller's office of public finance. Also present is Elaine Yee from the Mission Economic Development Agency if there are any questions on the project. Just a reminder for the committee and members of the public, the Tax Equity and Fiscal Responsibility Act or Tefra, allows the tax exemption of interest on certain types of debt issued through joint powers authorities. In this case, the proposed financing is to be issued through the California Enterprise Development Authority or CETA, which is a joint powers authority to which the city and county of San Francisco is a participating member. The authority is authorized to issue bonds, notes, COPs, or other forms of debt, including refinancing previously issued debt. Federal tax law requires that the governing body of the jurisdiction in which the project is located approve the financing and the project after providing the opportunity for a duly notice public hearing. The public hearing notice was published on the controller's office of public finance website on October 7, and the hearing was held by telephone on October 14. There were no comments from the public through the public hearing process or received by email. The purpose of this project, the proceeds from the sale of the obligations in an amount not to exceed 5,000,000 will be loaned to Mission Resource Center LLC whose sole member is the Mission Economic Development Agency or META. The proceeds will be used to refinance the balance of a 2015 loan that funded the cost of improvements of a 21,000 square foot multistory commercial building at 2301 Mission Street, which is owned by Mission Resource Center and leased to and operated by Meta. The loan will be repaid entirely from payments by Mission Resource Center under the loan agreement, and the city and county has no obligation to repay the loan. I'd also note that the, 2015 financing went through a similar TEFRA process. Founded in 1973, the Mission Economic Development Agency is a community economic development corporation located in the Mission District. They help families open and improve small businesses, purchase homes, and prevent foreclosures, build credit and savings while reducing debt, access technology, and find sustaining jobs. META works to improve economic and social conditions for San Francisco's low and moderate income residents with primarily Latino families as META's constituents. They're located in District 9, and supervisor Fielder is the sponsor of the resolution. And that concludes my presentation. Thank you.

[Supervisor Connie Chan, Chair]: Thank you. I do not have additional questions. Thank you so much for your work on this. We will go to public comment on this item.

[Brent Jalipa, Committee Clerk]: Yes. We're now opening public comment for this item number three, 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. Colleagues, 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 a positive recommendation, vice chair Dorsey. And Dorsey, aye. Member Sauter. Sauter, aye. Chair Chan?

[Supervisor Connie Chan, Chair]: Aye. Chan, aye. We have three ayes.

[Supervisor Connie Chan, Chair]: The motion passes. Mister Clerk, please call item number four.

[Brent Jalipa, Committee Clerk]: Item number four is a resolution approving amendment number three to the airport advertising lease between Clear Channel Outdoor LLC doing business as Clear Channel Airports as tenants in the city and county acting by and through its airport commission as landlord for the addition of premises solely for the promotion of large sporting events and establishing a new rent structure for those locations. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you. And today, we have SFO here.

[Diana Volek (San Francisco International Airport)]: Good morning. Diana Volek from SFO. The airport is seeking your approval for amendment number three to an existing lease with Clear Channel Outdoor LLC operating as Clear Channel Airports. This modification would add premises solely for the promotion of large sporting events and establishes a new rent structure equal to 65% of gross revenue generated for those locations. Clear Channel Outdoor Inc currently operates the advertising concession at SFO under the airport advertising program lease. The lease has a 148 individual advertising locations for static and digital units within the terminals and the rental car center. And rent is a minimum annual guarantee currently equal to $14,205,786 Due to several large sporting events occurring next year, such as the twenty twenty six Super Bowl and twenty twenty six FIFA World Cup, the airport would like to add new locations that would be desirable for welcome messaging and advertising along with a revenue share rent structure. As with all advertising installations, prior airport approval is required to ensure design and messaging standards. Clear Channel will install, manage, operate, and design and display commercial advertising using various media types. The BLA has recommended approval, and I am joined by our revenue development and management team for any questions.

[Budget and Legislative Analyst (staff presenter)]: Item four is a resolution that approves an amendment to an airport lease with Clear Channel. Under the lease, the airport leases property to Clear Channel, which they use to display advertising. We summarize the lease terms on page three of the report. There's no change to the lease term, which ends October 2027. And under the existing lease, Claire Channel pays a minimum guaranteed rent to the airport of over $10,000,000 But there's no percentage rent structure, which is unusual for airport leases. This amendment adds a percentage rent structure to spaces specifically for advertising for large sporting events. The airport would get 65% of the revenue, from those advertising spaces. The airport estimates that it will generate $1,300,000 in revenue over the next two years. 15% of that would go to the general fund. So that's about $200,000 for the general fund over that time. And we know it as a policy consideration that we actually recommended the board reject this lease in 2013, because it did not contain a percentage rent structure. We went back and tested what the revenues to the airport would have been over the past ten years had it maintained the prior rent percentage rent structure. And we determined that the airport would have received 20,600,000 more revenue over the ten year period, than they than they received under this lease, which had no percentage rent structure. And 3,000,000 of that would have gone to the general fund. So we're recommending approval of this item, but also recommending to the airport that they include a percentage rent structure in the when they reprocure the advertising service going forward.

[Supervisor Connie Chan, Chair]: Thank you. Help me understand when are we gonna if we are and if you are, and when, if so, that you will reprocure this, contract and whether then you will that SFO will reconsider.

[Diana Volek (San Francisco International Airport)]: Yes. The it was supposed to go up for RFP, but because of COVID, it's been extended with the other leases. This current lease, ex expires October 2027, and we are fully prepared to go to a full RFP process. In terms of the thinking of future, with the previous original lease in 2013, the airport director at the time did not want a superfluous amount of advertising and thought because of percentage rent, that would encourage them put advertising everywhere. But I'm going to defer to my colleague from RDM to talk about our future plans.

[Supervisor Connie Chan, Chair]: Thank you.

[Cheryl Brennan (SFO Director, Revenue Development & Management)]: Good morning. I'm Cheryl Brennan, director for revenue development and management. So the Clear Channel contract does expire in October 2027, but we're gonna get a running start for a variety of reasons, and we plan to issue an RFP first quarter of next year. And we will absolutely have the financial structure be the greater of a mag or percentage rent. It's a it's a different time period at the airport, and we're very interested in maximizing revenue off of this contract. There's a lot of upside to be had, a lot of new locations to add that wasn't the our desire, our aesthetic desire twelve or thirteen years ago.

[Supervisor Connie Chan, Chair]: Yeah. I mean, I wish that we also had this conversation, like like, right now, or I should say earlier when we know that the city is gonna take on Super Bowl and FIFA, like, hosting, events, in both Santa Clara area and then in basically, in the Bay Area, which is really creating, SFOs such a hub for travel, in 2026. Well, for me, I think also not to mention, there's also gonna be the Pokemon world champion in August. So so that's what my family really is, like, focusing on besides, like well, also Super Bowl, of course. But, you know, just kinda just some of the thoughts of, like, wishing we have more opportunity, in terms of generating more revenues. I I look forward to seeing perhaps there are other opportunities, in the very same period, and that that the airport, I'm sure, will figure out ways, and I I do look forward to that, on top of, you know, existing contract with Claret Channel. And, look forward to seeing that and hearing more of that, what you're gonna do for 2027. Help me understand when and then, you intend the RFP is gonna go out, if it expires in October 2027.

[Cheryl Brennan (SFO Director, Revenue Development & Management)]: So we'll issue the RFP between January and March 2026. So it will be awarded next year, which, you know, puts it award a year before expiration. But that gives us time to plan the new installations. It also gives us some comfort because we're opening Terminal 3 West, our latest renovation, in '27. It it just gives us some comfort if the incumbent wins. They're probably comfortable installing all their new, locations in Terminal 3 West. If they don't, then we'll cross that bridge, you know, early so that we can get, if there's a new company that comes in, we could have them install the advertising in Terminal 3 West earlier before the actual expiration of Clear Channel. We we just don't wanna open Terminal 3 West with empty advertising locations.

[Supervisor Connie Chan, Chair]: Thank you. We appreciate it. I don't see, well, I don't have any additional question. I don't see any name on roster. Let's go to public comments 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, That was your opportunity. Madam chair, we have no speakers.

[Supervisor Connie Chan, Chair]: Seeing no public comments, public comment is now closed. Colleagues, I would like to send this item to a 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. Dorsey, aye. Member Sauter? Aye. Sauter, aye. Chair Chan?

[Supervisor Connie Chan, Chair]: Aye.

[Brent Jalipa, Committee Clerk]: Chan, aye. We have three ayes.

[Supervisor Connie Chan, Chair]: The motion passes.

[Diana Volek (San Francisco International Airport)]: Thank you so much. And we are all so excited about Pokemon too.

[Supervisor Connie Chan, Chair]: I'm glad. Thank you. And, mister Clark, please call item number five.

[Brent Jalipa, Committee Clerk]: Item number five is a resolution approving a commercial lease agreement between the city and county and San Francisco CNC doing business as Mel's Drive In for the retail space located at 801 Mission Street and the 5th And Mission Garage for an initial five year term that will result in an estimated 1,900,000.0 in revenue and one five year option to extend the lease effective upon approval of this resolution. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you. And, we have SFMTA here.

[Unidentified SFMTA representative]: Good morning, chair Chan, supervisor Dorsey, supervisor Sauter. Mister Clerk, Thank you so much for making time for us this morning and fitting us into your busy, current workloads. We deeply appreciate the opportunity to be before you today to discuss this lease agreement. I am going to hand it over to our, fully capable real estate manager, Kazaya Tang, who will be walking you through this presentation.

[Kazaya Tang (SFMTA Real Estate Manager)]: Good morning. Good morning, madam Chan, supervisor Sauter, vice chair, sitting in. Thank you. And supervisor Dorsey. Let me begin by saying that, this is a historic lease, for an anchor tenant at 5th And Mission. And while we are discussing a new lease agreement, we discovered some information from the previous real estate administration of incomplete work. And so I'd like to address that before I get into the details of the Mills lease proposal. Back in 2020, while the city was undergoing the pandemic and shelter in place was ordered, the mayor then, mayor Breed issued an ordinance saying that the city should be forgiving rent, providing an abatement since the shelter in place had drastically reduced the traffic and business potential, for many of the businesses downtown and throughout the city, as well as the country. In 2021, we verbally effectuated about 25 of these agreements. And at that time, the perspective was that we would address them as they came up for renewal. I don't know exactly what happened between that time and now, but we only discovered this last week. And so having discovered this, we have formulated a plan to address it, and we would like to discuss that with you now. In addition to this MELS lease, there is one more lease with TADS Incorporated that is very similar in structure and will also need the board of supervisors approval. In addition, we have 15 other leases that do not require the board approval because it does not, hit the threshold of section 9.1108. However, we will work diligently with the city attorney's office to formally have those amendments memorialized. However, our timeline with the holidays would be to come before the board in January 2026, ideally, to bring TADs before you. And then work internally with the city attorney's office to bring the remaining 15, leases to, current amended status. And that would hopefully occur at the end of the first quarter by April 2026. So that is our proposed timeline. Along with that, we will be developing more internal, and written policies and procedures that seem to be lacking at this time. I am fairly new to this post. Not that it is an excuse for the agency. But now that I'm aware of some of these issues, I'm beginning to formulate a plan to address. And we are committed to bringing these to legal amendment status. So with that, I'd like to bring up the real issue we are brought here today, which is to discuss, Mel's lease. And this would be, next slide, please, for an initial term of five years. It would bring us just under 2,000,000 in revenue, and there would be a potential extension option for another five years. If you recall, maybe some of us don't, Mills first opened in 1947. There are four locations throughout the city. They are known for late night hours, weekends, family meals, and has been an anchor tenant for us at 5th And Mission Garage. The existing the original lease, sorry, was signed in 2000 by a downtown parking corporation. It was then transferred to the SFMTA in 2013. If you look at the three year average, it's just under 400,000 for revenue. Based on the current structure of 8% gross rents, we would be bringing in approximately that same amount. It is very close to what we were looking at over the past few years and closer to also the pre pandemic, gross receipts levels. So we are seeing improvement, in the economy slowly but surely. If there is any sublet or assignment, we have negotiated to add additional terms for that. And so long as Mel's business is good and the city's business is good, the MTA should also benefit as well as the city. We are bringing this before the board because it is revenue generating over 1,000,000 and does invoke charter section 9.118. Therefore, we request that the board approve of this lease amendment as it benefits the city, and be assured that the SFMTA remains committed to bringing the other leases into compliance. Thank you. That's the end of my presentation.

[Supervisor Connie Chan, Chair]: Thank you.

[Budget and Legislative Analyst (staff presenter)]: Item five is a resolution that would retroactively approve a new lease agreement, that MTA will have, with San Francisco CNC, which does business as Mel's Diner. Mel's would occupy or continue to occupy a space at the 5th And Mission Garage. And the lease has an initial five year term with one five year option to extend. We summarized the lease terms on page 10 of our report. The MTA would get 8% of gross revenues each month as rent for this lease. The 8% does seem reasonable when we compare that to other city leases with restaurants. Fixed component to the rent did feel unusual relative to other city leases. We also note that based on historical revenues, because they've been on this 8% structure for a couple years now, MTA is projecting that at least over the initial five year term, if MEL is able to sustain their revenues at their current levels, that the lease would generate $1,900,000 for MTA over five years, which would be used to fund transportation operations. We also, in conversations with the department, we identified several internal control weaknesses in the historical management of MTA's real estate division, which include not documenting lease transactions, not having any policies and procedures governing the division. So for example, what the standard lease terms should be for commercial leases, when the lease would trigger an RFP or a process to work with a broker. And for that reason, we do have several recommendations in this report to establish policies and procedures that address those items that I just mentioned, to document all property transactions, you know, and do so as soon as possible. I think, you know, for any organization, this would be an urgent set of recommendations. But I think they take on a special significance given MTA's structural budget deficit and the fact that they're undertaking very high risk and complex property development in the next several years, for example, like, portray our yard. So I do consider these very urgent recommendations. And I also know in the report that there is new management at MTA's real estate division, both at the deputy director and at the manager level. So that's an opportunity, given the recent reorganization, to modernize the division's operating procedures.

[Supervisor Connie Chan, Chair]: Thank you. I mean, certainly, it's alarming, you know, according to the budget and legislative analyst report. And you can correct me if I'm wrong, because I'm trying to understand the discrepancy between that in in the report. It mentioned approximately fifty, five zero. Others leases that require that you actually that have received, like, rent forgiveness, but does does not actually they do not have any, written lease amendments. And, but then I think you mentioned fifteen one five. That is what you're focusing on, hopefully, by April 2026. That's a problem for me, that time line. And and so I I wanna understand how and how long is it gonna take for your division to fix all 50. I think today, I wanna be be supportive of this lease because we gotta do we gotta start working on this. Right? And and so this is, like, a first step to fix the mouse drive in, and I can understand that Ted is coming. And I can understand that, you know, your priority is another 15 by April 2026, but you actually have 50 in total.

[Kazaya Tang (SFMTA Real Estate Manager)]: Actually, I'd like to correct the record. It's not five zero. It's one five in addition to the TETs and the mouse lease. We have many properties, but only 25 businesses accepted and some businesses left before. So we only have 17 in total, one seven.

[Supervisor Connie Chan, Chair]: So, yeah, 17 leases that have no written lease amendment?

[Kazaya Tang (SFMTA Real Estate Manager)]: Not formalized. Correct.

[Supervisor Connie Chan, Chair]: And how many lease with business or commercial property that you have right now total?

[Kazaya Tang (SFMTA Real Estate Manager)]: We have approximately 40.

[Supervisor Connie Chan, Chair]: You have approximate 40. And that out of which, only 17 that has no written lease amendment.

[Kazaya Tang (SFMTA Real Estate Manager)]: Correct.

[Supervisor Connie Chan, Chair]: Got it. And and what about the remaining of those that you may were they did they actually have any lease amendments at all? Or the reason why they do not have written lease they are not required to go through the process because they did not receive

[Cheryl Brennan (SFO Director, Revenue Development & Management)]: rent relief.

[Kazaya Tang (SFMTA Real Estate Manager)]: Are you referring to the 15 additional leases that we need?

[Supervisor Connie Chan, Chair]: No. I'm I'm referring the remaining well, I guess, like

[Kazaya Tang (SFMTA Real Estate Manager)]: Those were not offered or did not accept any rent relief.

[Supervisor Connie Chan, Chair]: 23. Yes. It was not. So the remaining of the 23 or 25 did not or 23 did not accept

[Kazaya Tang (SFMTA Real Estate Manager)]: Not subject to this.

[Supervisor Connie Chan, Chair]: Yeah. Not subject to lease amendments because they do did not accept loan for or

[Kazaya Tang (SFMTA Real Estate Manager)]: rent forgiveness. Was not abated. Correct.

[Supervisor Connie Chan, Chair]: Could you walk us through I I I don't think I'm gonna go back to what happened. I think instead, I'm gonna look forward to see, what is how are you gonna tackle that 15?

[Kazaya Tang (SFMTA Real Estate Manager)]: So it's approximately 3 or 4 per month Yep. If we can get it done by the end of the quarter. And that seems like it's still gonna be a challenge for the city attorney's workload. That is probably our largest challenge for this particular task because it requires city attorney input and work on each of these agreements. That is really the only major time obstacle. Of course, we need to also reach out and make sure that these tenants are agreeable to the terms.

[Supervisor Connie Chan, Chair]: What happen if they don't?

[Kazaya Tang (SFMTA Real Estate Manager)]: It's just like any other negotiation. We have to make concessions on both sides to come to an agreement.

[Supervisor Connie Chan, Chair]: Because technically, it's retroactive, isn't it?

[Kazaya Tang (SFMTA Real Estate Manager)]: Well, we'd want it we'd want to bring these leases current up to date. And so we may make reference to what occurred, but it would be looking forward. Just as this is a new lease with MELS, we're looking forward and we're not referring back to the original lease or terms necessarily.

[Supervisor Connie Chan, Chair]: Interesting. Great. Vice chair Dorsey.

[Supervisor Matt Dorsey, Vice Chair]: Thank you, chair Chan. I wanna express my appreciation to the BLA for its its work on this and highlighting things that we need to make sure that we get right, and I appreciate MTA's commitment to to getting this right. I think the good news for SFMTA is that your financial needs are going to be priority number one for many of us in next year's election, at a time when the viability of our transit system, which includes MTA but isn't limited to MTA, is regarded as essential to our economic recovery. The bad news for us at MTA is that your financial needs are gonna be priority number one, and there's gonna be a lot of scrutiny that is put upon you. And I just urge everybody to to this is we can't have unforced errors. This is gonna be really important. I represent a downtown district. We have to get things right. Where when if if and when we go to voters to ask them to dig down deep, they need to have confidence that their money is gonna be well spent and carefully scrutinized. So we just, you know, this is this is really important. Beyond that, there's, you know, as a District six supervisor, this is, an area that is under some distress. So I appreciate I'm gonna I'm supportive of this and I really appreciate that Mel's is is there. I appreciate that, you know, there have been some some vacancies. I did wanna ask, what what is the current situation at the 5th And Mission Garage in terms of

[Kazaya Tang (SFMTA Real Estate Manager)]: We're currently in the process of terminating the occupation for two of those spaces.

[Supervisor Matt Dorsey, Vice Chair]: Okay.

[Kazaya Tang (SFMTA Real Estate Manager)]: And then, hopefully, we will be able to release those.

[Supervisor Matt Dorsey, Vice Chair]: Okay. Yeah. I'm I'm hoping that I know that, you know, with Bloomingdale's and some issues at the San Francisco Center, it's a difficult time right now. I have some optimism about the Metreon and some other things that hopefully will contribute to a resurgence in this in this area. I'm cautiously optimistic. I'm grateful to Mel's, and just appreciative of everybody's commitment to making sure that we, we get things right. I'm happy to support this.

[Supervisor Connie Chan, Chair]: Thank you. Supervisor Zarder.

[Unidentified participant (brief interjections)]: Thank you, chair. This is clearly, you know, something that you're having to clean up, and I recognize that you're coming into this. So, thank you for getting us back on track here. And, clearly, a lot of mistakes were made, to to folks that were in your seat prior, so thank you for cleaning it up. Of the sounds like 15 more leases to kinda sort through that had this verbal agreement. This lease with Mel's you're proposing to have at a percentage of gross sales, but I think you're indicating that for those other 15, how do you anticipate that going? Will it be a discussion? Are you trying to get them to adopt one model or the other? How do you anticipate that happening?

[Kazaya Tang (SFMTA Real Estate Manager)]: We may continue with the current model of percentage receipts because the economy has not yet rebounded enough to have the full faith of the businesses that they can provide a base rent. So we may be negotiating that point, but it may follow similarly to Mills.

[Unidentified participant (brief interjections)]: How does this compare to practices with other real estate in the city, and then also maybe zooming out, you know, others in your industry and other cities?

[Kazaya Tang (SFMTA Real Estate Manager)]: You know, I believe it's probably quite different from the airport or the port, and it's also very different because of the location. MTA has various parking garages throughout the city and in downtown, which is unfortunately, the mall is 93% vacant right now. So it's very hard hit. With the airport, they have a closed environment that's very safe and secure. People are in transit going through the airport, and so they have, what I would say is steadier source of business and traffic. The port is also a tourist destination, and their properties are also quite different from what MTA has. And so while I understand that RFP is probably preferred and it sounds very good, it is not always applicable to the MTA's real estate portfolio because of our various locations and, truthfully, the limitations of some of our spaces. So I don't know that it's an apples to apples comparison. It might be more of an apples and oranges and bananas comparison. But I understand the concern that we are getting market rate and trying to maximize the revenue for the city, and that is also our shared goal. And in this way, we're trying to keep the spaces occupied, where it's very difficult in some of these areas to do that, and also allow the businesses sustain themselves and grow if possible.

[Unidentified participant (brief interjections)]: K. Okay. Thank you. And I think we all wanna be partners in helping you get this back on track. It's important. Thanks.

[Sophie Hayward (Office of the City Administrator)]: Thank

[Supervisor Connie Chan, Chair]: you. I think, actually, I I would I I don't know if I really completely agree that that is what the port is doing. I definitely think SFO has different strategy in terms of, build out their portfolio with concierge and different kind of like, with and with air airline or with, retail spaces. I think they have different strategy with it. I definitely think, though, port has a different strategy in not utilizing an RFP. In fact, it was a it was a discussion that we had with, as a port. They actually use a broker, and a specific a broker partnership to identify spaces appropriate for port spaces. They I mean, they have cruise terminal. They have restaurant spaces. They have retail spaces. I think there are really different needs and storage and in industrial spaces. I would strongly encourage you to consider just different approach. But most importantly, if I may, a backup plan. A backup plan in the next six months while you undergo these negotiation to try to bring to date these leases. I would strongly encourage to also, have alternatives. Should these space become vacant, then what is your next step to fill them? Because your negotiation, try to bring them to market rate rent, is not successful. So for some of these spaces, due to, like you said, you know, they are not the typical retail space or whatever commercial space that because of, again, the situation of of your use addition to on or on top of or adjacent to your commercial space. So I look forward to hearing more of that when you return in January with the TET lease to kind of give us a little bit initial update.

[Kazaya Tang (SFMTA Real Estate Manager)]: Just just to speak further on that point, I am working with the TJPA, and they have an RFP for brokerage services. And we're trying to piggyback off of that for the spaces that we have in that area

[Supervisor Connie Chan, Chair]: Right.

[Kazaya Tang (SFMTA Real Estate Manager)]: Because, you know, it is based on that location for their brokerage. But, yes, we are obviously looking at alternatives. Thank you.

[Supervisor Connie Chan, Chair]: Of course. And so we'd love to see that report back along with your TET lease, agreements when you'd return in January.

[Supervisor Myrna Melgar]: Thank

[Supervisor Connie Chan, Chair]: you. Thank you. Seeing no more, questions, and, let's go to public comment on this item.

[Brent Jalipa, Committee Clerk]: We are now opening public comment for this item number five. If you have any members of the public who wish to address this committee.

[Matt Worth (Counsel for Mel’s Drive-In/SFCNC)]: Yeah. I'm Matt Worth. I'm I am, counsel for Mel's Drive In. I don't have a presentation for you, but I wanted to introduce Gabriel Mendez, who's one of the owners of SFCNC. He's here. If you have questions, I think just listening to the to, the discussion, you know, I would just really encourage the city, not only for Mel's, but for all of downtown, you know, that an 8% gross, rent agreement puts you guys in partnership with business, and it's the direction the city needs to go in. Unless you have questions about the lease, I would just, thank the city attorney's office for their, professionalism in negotiating all this and, hope hope you'll approve the lease. So thank you.

[Brent Jalipa, Committee Clerk]: Thank you much for addressing this committee. And Manila, there are speakers. Madam chair, that completes our queue.

[Supervisor Connie Chan, Chair]: Thank you. And seeing no more pop no more public comment, public comment is now closed. Vice chair Dorsey.

[Supervisor Matt Dorsey, Vice Chair]: It occurs to me that I also forgot to thank the city attorney for their work in this. And I know, especially when it comes to leases, there's a lot of unsung heroes that are doing this work. So my expression of appreciation to, our deputy city attorney and everybody at the city attorney's office who's doing that work.

[Supervisor Connie Chan, Chair]: Thank you. Colleagues, I think today, it it I we are all in supportive of the bounce drive in lease itself. And what I think thank you so much, SFMTA, especially for the news staff that is at the real estate, division for your work on this. I think, though, due to the nature of how it came about, meaning the lag time between what it was during COVID to now what it is, with a a a overwhelming long period without documentation and without approval from the city attorney in terms of the lease amendments and the recommendation of the budget legislative analyst. I think that and I think it should be allowing, send a signal to our colleagues at the food board, letting them know this is a problem, but I think that, SFMTA is working to fix. Again, this is I do not think that this is our leaseease, but truly is really on the city. So it's not a reflection on Maus Drive In, but SFMTA. And I would like to make the motion to move this forward, but without recommendation at this time. Again, not a reflection on Maus Drive In, our partnership with them, but much more on SFMTA gotta get it together. And hopefully, by the time you come back with TEDS, we will have more progress made. So with that, a motion to move this to full board without recommendation and a roll call, please.

[Brent Jalipa, Committee Clerk]: And on that motion, that this resolution be referred to the full board without recommendation, vice chair Dorsey. Aye. Dorsey, aye. Member Sautner? Aye.

[Supervisor Danny Sauter]: Sautner, aye. Chair Chan? Aye. Chan, aye. We have three ayes.

[Supervisor Connie Chan, Chair]: The motion passes. I also do wanna indicate that I will be voting in support of this lease at a full board. Thank you. With that, mister Clark, please call item number six.

[Brent Jalipa, Committee Clerk]: Yes. Item number six is a resolution approving the Fourth Amendment between the city and county acting by and through the Office of Contract Administration, Handlistec International Limited for class a biosolids, management services for the increased amount of approximately, 20,700,000.0 and a total not to exceed amount of approximately 36,700,000.0 to extend the term by two years from 06/30/2027 for a total term of 07/01/2022 through 06/30/2029 and to authorize the Office of Contract Administration to make necessary nonmaterial changes to the amendment prior to its final execution by all parties that do not materially increase the obligations nor liabilities 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, the city administrator's office.

[Sophie Hayward (Office of the City Administrator)]: Good morning, Chair Chan, Supervisors Dorsey and Sauter. I'm Sophie Hayward. And I'm here, from the office of the city administrator on behalf of the office of contract administration. And we are seeking a recommendation of approval to amend the existing contract with LizTech International Limited for biosolids waste management. The amendment we seek would increase the not to exceed amount to $36,670,000 and to extend the term by two years to 06/20/2029. Just by way of background, the city's wastewater is treated at two facilities. The Southeast Treatment Plant and the oceanside water pollution control plant. Those treatment plants convert our waste into what is known as class B biosolids. And then at that point, Listech International is responsible for converting that class B product into what is known as class A biosolids. Things like liquid fertilizer and compost. That conversion of our biosolids into class A products allows us to actually send less waste to landfills, because we produce compost and fertilizer. And that complies with state law SB thirteen eighty three. This contract is used exclusively by the PUC's wastewater enterprise, and the contract was executed based on a low bid solicitation by OCA, conducted in March 2022. The contract was awarded to Listech, which was the only contractor to submit a qualified bid by the deadline. Our request to extend the term, as well as the not to exceed amount, is based on the average monthly spend and the estimated annual usage. We request that the committee recommend approval of this contract amendment to allow the SFPUC to continue to procure this critical waste management service in compliance with the requirements of state bill thirteen eighty three. That concludes my presentation, but I'm joined today by representatives of OCA and the PUC if you have additional questions. Thank

[Supervisor Connie Chan, Chair]: you. Thank

[Kazaya Tang (SFMTA Real Estate Manager)]: you.

[Budget and Legislative Analyst (staff presenter)]: Item six is a resolution that approves an amendment to a contract that the Office of Contract Administration procured with LaiStek International. The amendment increases the contract value from 15.9 to $36,700,000 and then exercises an existing option to extend the agreement from June 2027 to June 2029. The contract basically allows PUC's wastewater enterprise to divert biosolids from landfill to agricultural uses. Lytec, takes those products and processes them so that they can be safely used in agriculture. PUC is doing this to comply with a state law that, as of 2024, required 70 utilities to divert 75% of biosolids away from landfill. The PUC reports that it's actually diverting a 100% of its biosolids. And this contract is about 70% of the total biosolids that the wastewater division produces every year. In terms of fiscal impact, this contract's about a $5,100,000 a year cost, which then drives the increase in the not to exceed amount by about $20,000,000 We summarize the basis for the contract budget on page 20 of our report, and note that the contract is funded by wastewater ratepayers. We recommend approval of item six.

[Supervisor Connie Chan, Chair]: Thank you. I don't have any additional questions. Vice chair Dorsey.

[Supervisor Matt Dorsey, Vice Chair]: Thank you, chair Chan. I guess I this is just a larger issue. I'm always concerned when there's when we do a bid solicitation and there's one bidder. And I'm not sure if this would be a BLA question or are there other is there anything we're doing in our bid solicitations that or could do in our bid solicitations to improve the competitiveness of our competitive bidding?

[Kazaya Tang (SFMTA Real Estate Manager)]: Good morning. My name is Lynn Rapola. I'm with the Office of Contract Administration. The reason why there was only one bidder in 2022 is because there's a very limited field of suppliers that work in this market. In fact, there was another supplier at one point, Denali, who chose to exit the business. So there are really not that many suppliers that can do, what wastewater needs to be done. That's the primary reason. But our office makes a very strong effort in reaching out to all suppliers.

[Supervisor Matt Dorsey, Vice Chair]: Are there other wastewater enterprises that use other providers, or is this one that provides to other jurisdictions?

[Kazaya Tang (SFMTA Real Estate Manager)]: Joanne? I have with us, Joanne Yee, who's with wastewater, who's probably more equipped to answer that question.

[Joanne Yee (SFPUC Wastewater Enterprise)]: Good morning, supervisors. That's a great question. So this contract is specifically for LISTAK to convert class B biosolids to class a biosolids. We do have a separate contract with Synagrel for land application, so that's directly applying the class b biosolids onto the fields. So in that sense, we do try to diversify, But land application is a short season. Once it starts raining, once the fields get wet, it depends on the farmers too. So it's it's limited. In terms of this specific contract, Liz Tech, it's open year round, so it provides our ability to send it on weekends, in the winter, whenever it rains.

[Supervisor Matt Dorsey, Vice Chair]: Okay. All right. Thanks.

[Supervisor Connie Chan, Chair]: Thank you. And with that, we will go to public comment on this item.

[Brent Jalipa, Committee Clerk]: Yes. We're opening public comment on this item number six. 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. Colleagues, 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 positive recommendation, vice chair Dorsey. Dorsey, aye. Member Sauter? Aye. Chair Chan?

[Supervisor Connie Chan, Chair]: Aye. Chan, aye. We have three ayes.

[Supervisor Connie Chan, Chair]: The motion passes. Mister Clerk, please call item number seven.

[Brent Jalipa, Committee Clerk]: Yes. Item number seven is a resolution authorizing the sheriff's office to enter into a contract with Aramark Correctional Services Inc for jail food services for a total contract amount not to exceed 22,000,000 in a term of five years to commence on 11/01/2025 with two two year options to renew. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you. And we have our sheriff's office here.

[Patrick Leung (Sheriff’s Office CFO)]: Good morning, chair Chan, vice chair Dorsey, supervisor Sauter. My name is Patrick Leung. I'm the chief financial officer for the sheriff's office. This morning, we're asking for the committee's recommendation positive recommendation, for our Aramark jail food service contract. Just as an overview, Aramark has provided food services for the San Francisco County Jail since 2012. The new contract that's being proposed is for $22,000,000 There was a competitive bid solicitation, per admin code chapter 21 requirements. We did receive two bids for which Aramark was, the highest scored proposal, and, the awarded, vendor. The term of the contract is from 11/01/2025 until 10/31/2030. The contract also incorporates good food purchasing practices, and it adheres to, the board and state of community corrections Title 15 requirements. Within the contract, there is a provision that the pricing will be held firm for the first twenty four months of the agreement. Some of the included services, the air mark is to provide three meals daily for inmates and also staff at all the county jails. The service also includes coffee service and garbage service. And included within the contract is their Into Work program, which is a training certificate program that trains, incarcerated individuals of, safety food handling. And there's a credentialing program that's, based off of ServSafe, which is a credentialing program administered by the US National Restaurant Association. This last slide kind of shows the jail count patterns for the last eight years or so. And what you see within this graph is that the jail population for the last several years have increased. And right now, we're, we've the jail population is basically equivalent to what it was pre pandemic. I do wanna make one note that the BLA had made a recommendation for us to amend the contract terms so that the option years within the contract is consistent with what is stated in the RFP. And, we did make that change. If any members of the committee has any questions, I'd be more than happy to answer them.

[Supervisor Connie Chan, Chair]: Thank you.

[Budget and Legislative Analyst (staff presenter)]: Item seven is a resolution that approves a new contract between the Sheriff and Aramark Correctional Services. This contract has a five year term that begins November 1, and a not to exceed amount, and the resolution of $22,000,000 Under the contract, the Aramark provides food for the jail system, both for inmates and for staff who work there. We summarize the contract budget on page 25 of the report. You'll see the $22,000,000 is sufficient to pay for the contract costs over that five years, assuming no escalation. So the contract locks in food prices for two years. But if there's any escalation in food prices beyond that, which is allowed under the contract based on CPI, the sheriff may have to come back to this board to request an increase in the not to exceed amount, even before the option to to extend is exercised. We're also noting that there's no cost increase between the current food service and the new food service going forward. So this is about a $4,800,000 a year contract. This cost is funded by the general fund. And that cost will basically remain the same for the next two years, so long as the jail population remains the same. And we do have a recommendation just to align the contract's total term with the total term that was advertised in the RFP. And And it sounds like the sheriff agrees with that.

[Supervisor Connie Chan, Chair]: Thank you. I have two questions specifically about this. I think one is the most recent we passed a good food policy. How has and and if if I understand correctly, I think Aramark has been consistent since 2012. But could you just elaborate a little bit about, as we consider extending this contract, how will, or will, IRMARK be able to comply to the good food policy that recently passed?

[Patrick Leung (Sheriff’s Office CFO)]: Sure. Thank you for that question. The good food purchasing provision that was included in the prior contract, and it's carried over to this contract, we did have a, email from apologize, I don't remember the person's name. But the point of contact for the Good Food Purchasing Program, we have been touching base with them. We're going to work with Good Food Purchasing Program and also with a vendor on the next steps, on any changes that's needed for this contract. At least for what what Aramark has been able to achieve, some of the highlights, from the existing program, they've reduced, processed meats by 5% within, the proteins that they've provided. They've increased, the number of, or they've reduced the number of added sugars by 10% of the daily value. Some of the options that they've also provided, they've increased the number of healthy beverage options. They're providing 1% milk during different meal times. And we do expect to continue working with the vendor and also with Good Food Purchasing. I think one important highlight is within the old contract, the Good Food Purchasing Program, the standards has changed from what the, original contract was, the the one that just expired, to what the current standards are. And so, the the for the sheriff's office, we do intend to work, with the Good Food Purchasing staff and with the vendor on, making sure that any necessary changes are needed to better align what services are being provided with some of the practices and recommendations of, the Good Food Purchasing Program standards.

[Supervisor Connie Chan, Chair]: Thank you. Anne, as you mentioned about ServSafe as a training program, that, looks like the requirement is to have 40 a minimum 42 incarcerated individuals to be trained and certified. Is that an annual number, or the entirety of the contract?

[Patrick Leung (Sheriff’s Office CFO)]: That I'd have I would have to check back. I I know that the 45 or the 45 was a minimum number, but I I'd have to check on the details on that.

[Supervisor Connie Chan, Chair]: Would love to I I'm supportive of the the contract, today, And, in the events that it does get approved by this body today and out of to full board, would love to do to get a little bit of information from this today till we vote on it, which is not next week, but the week after Yeah. To have both, just previously just the the the let us know, like, how many individuals actually were trained and certified Yeah. From the previous contract and the projection of what we expect to see with the upcoming contract term.

[Robert Baca (MOHCD Joint Development Director)]: Sure.

[Supervisor Connie Chan, Chair]: Thank you. With that, I don't have any additional question. Let's go to public comment on this item.

[Brent Jalipa, Committee Clerk]: Yes. We're opening public comment for this item number nine oh, sorry. Item number seven. 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. Colleagues, I would like to first amend the, legislation as proposed by the budget and legislative analyst amending a two year options to renew to two one year options to renew, and then to send the amended legislation to full board with recommendation and a roll call, please, on that motion.

[Brent Jalipa, Committee Clerk]: And on that motion, to amend the resolution to correct the, extension options from two two year options to two one year options and to forward this resolution to the full board with a positive recommendation as amended. Vice chair Dorsey? Aye. Dorsey, aye. Member Sauter? Aye. Aye. Chair Chan? Aye. Chan, aye. We have three ayes.

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

[Brent Jalipa, Committee Clerk]: Yes. Item number eight is a resolution retroactively authorizing the police department to accept an expended grant in the amount of approximately $60,454,000 from the Board of State and Community Corrections for the Edward Byrne Memorial Justice Assistance Grant Equipment and Training Program to procure equipment and services for the criminology laboratory with the project period beginning on 10/01/2025 through 09/30/2026. Madam chair.

[Supervisor Connie Chan, Chair]: Thank you. And today, we have, our police department here.

[Mark Powell (SFPD Forensic Services Director)]: Good morning, chair Chan, vice chair Dorsey, and, supervisor. My name is Mark Powell. I'm here from the San Francisco Police Department. I'm the forensic services director, and we're just hoping for, approval to accept and expend the Edward Byrne Memorial Justice, assistance grant. So I'll just take you through that a little bit. The funding purposes for equipment and training for $654,000 $609 What we're going to use it for is to purchase equipment for our drug chemistry section of the crime lab and the latent print section. So for drug chemistry, we're looking to buy an instrument that's called a DART, or Direct Analysis in Real Time Mass Spectrometry. This will be a significant improvement for our screening. So right now, they use color tests to kind of see what route to test the drugs. This will give them more specific information on what the drug is and allow them to have quicker analysis and more accurate. So this will be really helpful for us as we just got accredited for testing. We're going to begin testing. So we have a limited number of staff, so this will kind of help us do more with less. And then on our latent print section, we're looking to increase our capacity to process guns for latent prints. What we do is we have chambers that we fume them. That allows us to develop latent prints. We process a lot of guns. So this will be an increase in capacity at the lab. We'll We'll also have a portable chamber that we can bring out to the field if necessary. And then we're also going to upgrade our image capture. So when we develop the print, we take a picture of it and put it into the APHIS database for searching. So this will allow us to upgrade that, which is about 20 old. So those are kind of the the purposes of the grant and how we're going to use the funding and if you have any questions.

[Supervisor Connie Chan, Chair]: Vice Chair Dorsey.

[Supervisor Matt Dorsey, Vice Chair]: Thank you, Chair Chan. I am, happy to support this. Obviously, it's a, you know, as a grant, we're not gonna say no. The reason the one thing I wanted to ask about was mass spectrometry. I know that in in other policy realms, I've been working with president Mandelmann on the possibility of doing wastewater drug testing. I think I've also had this come up in the context of drugs that we're checking for in the drug supply with the Office of the Chief Medical Examiner. I'm aware that we do we have, HSA now, I think, does some evaluation for as a condition of benefits. I don't know if that includes drug testing, but I know we have contingency management programs that do that do, drug screening. It's from what I understand, spectrometry I've got to learn to pronounce this is the gold standard. One other thing that I have hopes for in mass spectrometry there, I said it right is expanding this to drug checking. And, for example, people who there is a harm reduction approach that I think we should probably be doing for people who go to nightclubs or the raves and if they wanna check, no questions asked to make sure that what they think is ecstasy is not fentanyl, for example. There's a lot of applications as a city where we might want to make investments in this technology. Is this something that you or do the toxicologists talk to one another across city agencies on this? On what technologies we have?

[Mark Powell (SFPD Forensic Services Director)]: I know Luke Rota. He's the director of the ME's office, TalksLab. So we're pretty friendly, and we're both part of professional organizations together. So he's really testing from body fluids. And our lab will be kind of testing from seized drugs, so kind of different realms of the same thing. But you're right. Mass spectrometry is the gold standard.

[Supervisor Matt Dorsey, Vice Chair]: And it is something, as I understand it, where your results are near real time. I mean, these these are this is something where we're not getting it doesn't take we don't have to send it out for to a lab and then have it come back in a week.

[Mark Powell (SFPD Forensic Services Director)]: So this instrument would be in real time, but it would be one step of the process. So it would kind of guide our further testing route to get results out as fast as possible. So, for the best practice is to have a few different kinds of tests to confirm a drug

[Supervisor Connie Chan, Chair]: Okay.

[Mark Powell (SFPD Forensic Services Director)]: At least for the solid phase. This instrument is a lab based instrument. But there are portable devices available. But the limitations of those is that if it's a mixture of of, compounds, then it it cannot sometimes it's not as good at seeing those low level compounds, which is what you'd probably be worried about as far as, like, a contaminated drug.

[Supervisor Matt Dorsey, Vice Chair]: Right. Okay. Yeah. As a budget matter, I don't I don't wanna take up a lot of time with this. It was just a it it's something that I every time this comes up, I think this there is a lot of applications and a lot of city departments in the era that we're in. So I just wanted to ask about that, but, I'm happy to support this.

[Mark Powell (SFPD Forensic Services Director)]: Thanks.

[Supervisor Connie Chan, Chair]: Thank you. Well, finally, CSI turning into twenty first century. We appreciate that. Let's go to public comment on this item.

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

[Supervisor Connie Chan, Chair]: Seeing no public comments, public comments is now closed. What is your will, supervisor Dorsey?

[Supervisor Matt Dorsey, Vice Chair]: I would like to make a motion to approve this grant and send it to our full board with positive recommendation.

[Supervisor Connie Chan, Chair]: Roll call, please.

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

[Supervisor Connie Chan, Chair]: Aye.

[Brent Jalipa, Committee Clerk]: Chan, aye. We have three ayes.

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

[Brent Jalipa, Committee Clerk]: Madam Chair, that completes our business.

[Supervisor Connie Chan, Chair]: The meeting is adjourned.