San Francisco Government SmartTranscripts:

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Good morning. This meeting will come to order. Welcome to the 12/10/2025 meeting of the budget and finance committee. Also, last one for this year, 2025. I am supervisor Connie Chan, chair of the committee, and I'm joined by our vice chair, Matt Dorsey. Supervisor Dorsey, good to have you.

[Supervisor Matt Dorsey (Vice Chair)]: Good to be here.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: And, and also we're joined by supervisor Cheyenne Chin. Our clerk is Brent Halepa. I would like to thank, Sue Ethnos 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 it sounds all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included in the 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 and 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 wish for your name 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 or our office in City Hall at 1 Doctor Carlton B Goodlatte Place, Room 244, San Francisco, California 94102. And finally, items acted upon today are expected to appear on the board of supervisors agenda of December 16, unless otherwise stated. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you, mister Clerk. And before we call the item number one, I'd just like to remind the public that we for the items that we have budget and legislative analyst report, we usually go to the department presentation, budget and legislative analyst report, and then we will have questions and comment from the body, then we will go to public comment. And with that, mister Clerk, please call item one number one.

[Brent Jalipa (Committee Clerk)]: Yes. Item number one is a resolution retroactively authorizing the fire department to accept an expended grant in the amount of approximately 2,700,000.0 from the Federal Emergency Management Agency to purchase self contained breathing apparatus units for the performance period of 09/26/2024 through 09/25/2026, hand waving indirect costs. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And today, we have the fire department here.

[Mark Corso (Deputy Director of Finance & Planning, SFFD)]: Good morning, madam chair, members of the committee. Mark Corso, deputy director of finance and planning at the fire department. I'm joined with, by assistant deputy chief, Mike Mullen of our support services division to present on our next item. It's a fiscal year twenty twenty three FEMA assistance to firefighters grant in the amount of, about $2,600,000 this is for the purchase of self contained breathing apparatus, which is the breathing packs and, bottles that our firefighters use, to actively fight an incident. Obviously, this is a very crucial piece of safety equipment for our frontline members, and this would be a complete replacement for all units that we have in the department. We lasted a a full replacement about ten years ago, through another FEMA grant. Obviously, given the cost of these items, these are very difficult for us to replace, given, budget constraints. So we are very thankful for FEMA, for approval of this award. This is for all frontline members in the department. So since that time, ten years ago, there's been, numerous safety upgrades to these equipment, so we're very happy to be procuring, these new models, across the board for all members, given the safety enhancements that are included. There's a grant match of about $275,000 which is, incorporated into our safety equipment funds, so there's no issues there. Current, period of performance ends in September 26. We have no doubt we'll be able to meet that. And just lastly, there is a retroactive language in this resolution, and that's mainly because of retroactive for the, grant performance period start date. For these grants, the performance period start date is generally the same day we are notified of an award, so pretty much all of our grants would be retroactive. But rest assured, we have not, moved forward with any purchases or anything like that to date, but, intend to do so upon approval of this award. So without, with that, I'm happy to answer any questions as well as chief Mullen.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. The retroactive date is last year's September, though. Right?

[Mark Corso (Deputy Director of Finance & Planning, SFFD)]: Correct. That was the date of award and of, notification that we were actually awarded the the grant and the performance period began.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Was it not inclusive of the of your budget?

[Mark Corso (Deputy Director of Finance & Planning, SFFD)]: It was not include incorporated into the budget, so this is why we're coming separately.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. But and and so it was not but you got the you got the you got the grant in '24, but it was not inclusive of your 2526 budget, and and yet and you also haven't spent it.

[Mark Corso (Deputy Director of Finance & Planning, SFFD)]: Correct. So this is a reimbursement grant. We don't we didn't receive any funds upfront, and so there was a administrative oversight that it was not incorporated into our budget. So we're going through that process now, but we have not spent, and nor do we see any issue spending it if we're approved for this.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Understood. Thank you. I don't have any additional question. Let's go to public comment on I I don't see any other name on the roster. 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've joined us today who wish to address this committee. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: 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 Chen Chen, aye. Chair Chan? Aye. Chan, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. Thank you.

[Mark Corso (Deputy Director of Finance & Planning, SFFD)]: Thank you.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: And, mister Clerk, please call item number two.

[Brent Jalipa (Committee Clerk)]: Item number two is a resolution approving and authorizing the general manager of the San Francisco Public Utilities Commission to execute amendment number one to a contract for engineering services for dams and reservoirs with GEI Consultants Inc increasing the contract amount by 7,000,000 for a new not exceeding contract of 18,000,000 with no change to the contract duration with a work starting in April 2020 and an estimated completion date of April 2031 to add design services for the Moccasin Dam and reservoir long term improvement project and planning and design services to the O'Shaughnessy Dam outlet works phase two project under the Heche Heche Water Capital Improvement Program pursuant to the charter. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And today, we have SFPUC here.

[Carmen Ng (Civil Engineer, SFPUC)]: Good morning, chair Chan and supervisors. My name is Carmen Ng, and I am a civil engineer with the SFPUC's engineering management bureau. I'm here this morning to present the request to approve amendment one to contract pro one thirty eight B engineering services for dams and reservoirs. This amendment would increase the contract by 7,000,000 for a total not to exceed amount of $18,000,000 with no change to the duration to continue providing planning design and engineering support of the improvements to various dam and reservoir facilities. After the Oroville Dam spillway failure in February 2017, that's shown on this slide, the California Division of Safety of Dams, DSOD, sent orders to all dam owners in the state of California to conduct condition assessments on their spillways that are under DSOD DSRD jurisdiction. In response to that, we advertised contracts per 138a, b, and c in late twenty nineteen to complete the work for all dams and reservoirs from Hechechee down to the city. Per138b includes three dams in the Hetch Hetchy region, which are shown in blue on slide. Cherry Dam, Eleanor Dam, and Early Intake Dam. The other two dams in the Hetch Hetchy region, Moccasin Dam and O'Shaughnessy Dam that are shown in red are covered under 138a. Earlier this year, contract two five water capital program management contract was awarded to HDR Stantec joint venture. HDR is currently the prime one thirty eight a design consultant. So in anticipation of a potential conflict of interest for them to continue providing design services, we're recommending that the Moccasin Dam and O'Shaughnessy Dam phase two scopes be completed by the pro one hundred and thirty eight B consultant, which is GEI consultants. Since the work falls within the same geographic area, and is the same scope. At the time 01/1938 was advertised in 2019, the capital plan for the projects shown on the left had a budget of $213,100,000 primarily for assessments. As DSOD analyzed and repaired Oroville Dam, they imposed additional requirements and analyses on the dam owners in the years that followed. We've since completed needs assessments for some of these facilities, and these assessments have helped us to define project scopes. In the latest capital plan, we have significantly increased the budget to $626,700,000 to reflect those updated needs. Next slide. So this slide, it's got a lot to digest. It's, our projects are on the left. There is a column for our current phase of each project, the current budget, and then in the middle there is our proposed amendment one modifications. The original contract is a, an $18,000,000.08 or sorry, dollars 11,000,000 eleven year pool contract, where we list a selection of predetermined projects that the contract will support. These types of contracts will allow for flexibility in obtaining professional service support through project planning, design, and construction. Amendment one, which is in the middle column, asks for an additional $7,000,000 with no additional time to continue engineering design for Moccasin Dam project. And we are also planning to fund the planning and design of O'Shaughnessy Dam Phase two through the per 138 B unassigned balance. And so now I'll quickly share a little bit about the two projects that we'll be moving over. In 2018, there was a storm event that nearly overtopped Moccasin Lower Dam, and it caused significant damage. In this photo, you can see the flood water in the main spillway, which is in the center, and also in the auxiliary spillway, which is at the top of the photo. This the flood waters came to within a foot of overtopping the dam. As part of the planning work for this project, we determined that the best solution would be to build a new side channel auxiliary spillway, line the spillway chute, and build a new ceiling basin for energy dissipation, which you can see in this photo. Which is a physical model that was built by Northwest Hydraulic Consultants in Vancouver, British Columbia. And was used to verify the hydraulic analysis, or hydraulic modeling results. The project is currently at the 35% design phase, and that was completed by the one per one thirty eight a consultant HDR. Next slide. The second project scope is the O'Shaughnessy Dam And outlet works phase two. That's currently in the planning phase. The drum gates, which are shown in this photo, and the slide gates are going to be assessed so we can define what project we may need. And also as part of this project, there are valves that will be assessed, which include isolation valve and needle valves that are shown in this 1922 drawing of the general arrangement of the O'Shaughnessy Dam outlet system, where the needle valves regulate the flow being released from the dam. This work has not yet started. To recap, this is the same budget slide from earlier in the presentation. Beyond this amendment, as these projects continue to develop, we do anticipate that we will need to find other means for contracting capacity to do the work. And that might come in the form of either existing as needed engineering, contracts for smaller efforts, or for larger efforts, we'll be drafting new RFPs. Or we could come back for a future amendment to this one thirty eight B contract. From a funding perspective, as the projects move through condition assessment and planning, and we learn more updated scopes and budgets will be taken into consideration in the ten year capital planning, planning and budget process. Thank you for your time and consideration. And I'm happy to answer any questions you might have.

[Nick Menard (Budget and Legislative Analyst)]: Good morning. Nick Menard from the Budget Legislative Analyst Office. Item two is a resolution that approves an amendment to a PUC contract with the GEI consultants increasing the contract value from $11,000,000 to $18,000,000 The amendment does not change the term, which ends June 2031. And under the amendment, the $7,000,000 will be used to fund design work for two dam design projects that were currently designed by HDR, which is now the water enterprise program capital improvement program manager. And so they can no longer do design work on individual projects in that role. So those projects are being shifted to this contract. The PUC has rated this contractor as excellent in their most recent performance monitoring review. And the $7,000,000 there's a small amount, about $150,000 that will be billed by GEI to validate the design work by HDR because they will then be the engineer of record for these projects. We show the budget on page eight of our report. You can see the spending by program within the budget as, provided to us by PUC. The contract costs are funded by water and power rate payers as the projects benefit both systems. We recommend approval of item two.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I don't have any, additional questions specifically about this, contract. And I think that, again, just trying to go back to my previous this is just for the entire asset you see. And I'm looking at Jeremy, only because just kind of going back to start setting us up for the expectation of, budget. As we know, the enterprise agencies are coming through, in May, and that just not the most recent, but the year before, that there was roughly about a billion dollars increase in our budget. That it's really majority of it, really is because of SFPUC's capital, project. And I think that during that time, we had a conversation again about just contracting and values management. I do appreciate that, you know, for a decade now that SAPUC has been broken down its project management into the design phase and the construction phase. But but I think that we wanna see consistency all across, all your projects. But also when you do, amendments and added value, I I think so far it has been great, like, in terms of your presentation and and and explaining why we're doing some of these. And we we do understand, you know, inflation, tariffs, and added costs, like, all sort of adds to some of it. And and not to even mention that it takes a while for you to really finalize the scope of work for a giant project as such. But I think that we're gonna have you report back two years later about what has it been. But you're welcome to say a few words on the on the record overall.

[Max Roachan (Director of Systems of Care, Behavioral Health Services, DPH)]: Thank you, chair Chan. Nothing really to add, but, we definitely look forward to having these conversations with you in more detail as the budget process progresses.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Yeah. Thank you. And and so I just wanted to flag that it may or may not be in May, that we may have a separate and work with you. But, really, all the enterprise agency to just separate and apart about contracting in general, leading to May, before you come back to us, and maybe really have you report back specifically for us at PUC based on the recommendation from the BLA during two years ago during the fiscal year about, contract management. Thank you. And so, colleagues, with that, let's go to public comment on this item.

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

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Seeing no public comments, public comment is now closed. Colleagues 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 recommendation, vice chair Dorsey. Dorsey, aye. Member Chen. Chen, aye. Chair Chan. Aye. Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. Mister Clark, please call item number three.

[Brent Jalipa (Committee Clerk)]: Yes. Item number three is a resolution retroactively authorizing and approving the office of the treasurer and Tax Collector to execute amendment number four for a service and support agreement with Collection Solutions Software, Inc, to enable the city and county to collect delinquent taxes and other debts to extend the contract term for five years from 11/30/2025, for a total term of 12/01/2016 through 11/30/2030, with one option to renew for an additional five years and increasing the contract by approximately 2,400,000.0 for a total amount not to exceed 6,900,000.0 to commence upon board of supervisors and mayoral approval. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And today, we have the office of the treasurer and tax collector here.

[Amanda Fried (Office of the Treasurer & Tax Collector)]: Good morning, chair Chan, supervisors. Amanda Fried from the office of the treasurer and tax collector. Today, I'm here to request approval of our amendment to our agreement with Collection Solutions Software or CSS, which is our core platform for managing the city's delinquent debt collections. Before I review the contract, I wanna provide a brief explanation of our debt collection work, which is done through our Bureau of Delinquent Revenue or BDR. And I'm joined today by my colleague, Jeff Schmeichel, the director of the Bureau of Delinquent Revenue, in case we have any questions. So BDR serves as the official collection agency for the city and county, and we work on behalf of 20 over 20 city departments. We believe that delinquent collections are best handled by our city staff who bring a commitment to ethics, fairness, and accountability that can't always be guaranteed by private sector debt collectors. To do that work, our staff relies on a system called collection solution software or CSS, which has been in place in our office since 2016. It currently manages over 670,000 accounts, totaling more than $960,000,000 in outstanding debts. The software supports collection of 40 municipal debt debts for multiple city departments, including the public hospital, MTA, public works, and the PUC. A key feature of CSS is that it's highly customizable, which, allows us to integrate it with over 20 city systems that support so many different types of debts. And in fiscal year 2425, the platform supported the collection of a $146,000,000 This amendment would extend the contract through November 2030 and would increase the contract by 2,460,000.00, bringing the total to 6,920,000.00. The amendment also funds expanded digital engagement tools like text messaging and ensures continued integration with multiple city systems. And that's all. Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Item three is a resolution that approves an amendment to the treasurer tax collector contract with Collection Solution Software. The amendment extends the agreement for up to ten years through November 2035 and increases the contract value to $6,900,000 This software is used by the treasurer tax collector's office and other departments to manage the city's debt collection. The original agreement was procured in 2016 following a competitive solicitation. And the basis of the extension is that they're now the only vendor that can maintain the system. And so the Office of Contract Administration approved a waiver from the city's procurement rules that would typically apply in this case to allow an extension of this agreement, which would now be a nineteen year agreement. The contract requires, certain levels of performance in terms of system availability and responsiveness to city inquiries. The vendor collection solution solution software is meeting those requirements according to the treasurer tax collector staff. We show the budget of this contract on page 14 of the report. You'll see it's roughly $500,000 a year. About 64% of that is funded by the general fund based on the composition of the debt that this software manages. And then the next biggest user is MTA with about 26% of spending. These are mostly licensing costs. We do recommend approval of item three.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I mean, I I do understand, you know, it it went to I mean, this contract, if with the five years extension, would be a total nineteen years. I I am sometimes also in the, area of, like, if it doesn't if it's not broken, like, it doesn't need to be fixed. And and it seems like that is where you're going with this. Just kinda curious, though, what other information you rely on to sort of make this decision to say, hey, this is a good vendor. Let's keep with it. Is it comparing with other counties or comparing with your existing vendors? Or could you just elaborate a little bit on the record about how you came to that decision to say the right thing to do?

[Amanda Fried (Office of the Treasurer & Tax Collector)]: Sure. Yeah. I mean, I think where we started from with that, and it's an excellent question, is really looking at the customization that we had to do and we would have to do with any software. Because we collect debt from on behalf of so many different departments who, as you know, each have their own technology systems, we estimated that it would cost several million dollars in customization if we were to to put this out to bid and and bring on a new vendor. And in this, you know, current time, that just didn't seem particularly worthwhile. We've had, you know, really no complaints about the software. It's met all of our our needs as a department and allowed us to change and grow over time. We are quite active in the space with other counties to sort of understand what other counties are using. And in fact, Jeff is frequently asked to speak to to others around the nation because they really see our move to CSS as as kind of a a benchmark that now other folks are are doing as well.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Great. I I I mean, look, I, for one, have a lot of hesitation, should and we are having those conversation with our IT to talk about potential, like, AI and artificial intelligence and, like, uses of other technology and what would that look like. I'm fine if you deem this is, like, suitable. And I'm just kinda curious of, like, what is your benchmark. But that's good to know. We are the benchmark, or, you know, in partnership with the software company that we are forming the benchmark for the nation. So I appreciate that work. Thank you so much. I don't see any other name on the roster. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. We are 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, Budget & Finance Committee)]: 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 that motion to forward to the full board with a recommendation, vice chair Dorsey. Dorsey, aye. Member Chen? Chen, aye. Chair Chan?

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Aye. Chen,

[Brent Jalipa (Committee Clerk)]: aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. Thank you. And mister Clerk, please call item number four.

[Brent Jalipa (Committee Clerk)]: Item number four is a resolution approving the third amendment to the grant agreement between the city, acting by and through the Department of Homelessness and Supportive Housing and Catholic Charities for Family Eviction Prevention Collaborative or FEPCO, homelessness prevention, extending the term by thirty months from 12/31/2025 for a total term of 07/01/2021 through 06/30/2028, increasing the agreement amount by approximately 9,500,000.0 for a total amount not to exceed approximately 19,300,000.0 and authorizing HSH to enter into any amendments or other modifications to the amendment that do not materially increase the obligations nor liabilities or 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, Budget & Finance Committee)]: Thank you. And we have our Department of Homelessness and Supportive Housing here.

[Emily Cohen (Department of Homelessness and Supportive Housing)]: Good morning, Chair Chan. Good morning, supervisors. Emily Cohen with the Department of Homelessness and Supportive Housing. And I'm before you today with a resolution that would authorize our department to enter into a third amendment to our grant agreement with Catholic Charities for family homelessness prevention services. This agreement was heard and approved by the homelessness oversight committee commission, excuse me, in November. The resolution would extend the term by two years and six months for a total term, through 06/30/2028, which aligns with our calendar for re procurement of our prevention portfolio and would increase the not to exceed amount by approximately $8,700,000 for new total not to exceed amount of approximately $18,400,000 This contract would continue funding Catholic charities to provide homelessness prevention support to families at risk, in San Francisco. Particularly, the financial assistance component of this funds back rent. It can fund future rent and move in assistance for households that are vulnerable to homelessness. Through providing this type of rental assistance, homelessness prevention programs can stabilize people in their homes and really stem the inflow into homelessness as an incredibly cost efficient use of resources in terms of preventing the long term, both traumatizing as well as expensive experience of homelessness. Catholic charities, in addition to providing the financial assistance, would make referrals to other types of programming, including legal services and support for other households as needed as part of the program model. This Catholic Charities program is part of our larger eviction, or excuse me, emergency rental assistance program, or ERAP. And in the last fiscal year, Catholic charities served nearly 600 households with move in assistance, back rent, and future rent. Those clients are at high risk of becoming homeless. It's it's hard to necessarily, with prevention, predict exactly which households would fall into homelessness. But as part of our work, we've really tried to hone in on the households most likely to fall into homelessness for this type of assistance. And, we can see through the demographics that the population being served by Catholic charities really reflects the population that we see fall into homelessness, including 38% are African American, nearly 90% are extremely low income, 83% are previously homeless, and 24% are families with children. So this program does not exclusively serve families with children, but does include serve them as well. And by focusing on the households most likely to become homeless, we're getting the most, solution for our resource and ensuring that, we're keeping our most vulnerable households housed. And as you can see here, most of the assistance ranges from between just over $2,000 per household to just under $4,000 per household, depending on the type. So, again, a far more efficient use and, better, obviously, for the households to avoid a situation of homelessness. And after the BLA report, I'm happy, to take any questions. I do have a non substantive amendment that I almost forgot. And supervisor Chan, if you'd like me to read into the record, at least. So the non substantive amendment, which is on file already with the clerk and the chair, on in the short title on page one, line two, we need to update it to read $18,459,066 The long title, page one, line eight, Update to read 8,000,672 million $2,460 for a total not to exceed amount of 18,459,066. And in the body of the resolution on page two, lines twenty four and twenty five, update to read, increasing the maximum expenditure by $8,672,460 for a total not to exceed amount of $18,459,066 Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Item four is a resolution that approves an amendment to an HSH contract with Catholic Charities. The amendment extends the agreement through June 2028 and increases the contract value to $18,500,000 This contract funds Catholic Charities to provide one time emergency rental assistance. We summarize the performance on page 19 of the report. You'll see that Catholic Charities, is actually serving about 600 clients per year. That's well above the 200 that are required in the contract. And they're also dispersing funds within five days in 92% of cases, which is very close to the contract's objective of 100% of the time. So the performance is quite good, especially compared to other rental subsidy contracts or rental assistance contracts. We show on page 20 of our report, this contract is about $2,900,000 a year. It's funded by a mix of the general fund and proposition C funds, and we recommend approval of item four.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I don't see any name on the roster. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. If you have any members of the public who have joined us today who wish to address this committee regarding this item number four, and that was your opportunity.

[Jose Guadalupe (Catholic Charities)]: Good morning. My name is Jose Guadalupe. I am the deputy associate deputy director for subsidies and housing assistance with Catholic Charities. So this morning, I would like to speak today in strong support of the continuing fully funded FEBCO, Allocations Funding for Catholic Charities. Catholic Charities plays a critical role preventing homelessness for some of the San Francisco most vulnerable residents to our homelessness prevention program, housing services, and partnerships. We work directly with families, seniors, and individuals who are on the brink of losing their housing. This funding is essential to ensuring these services remain stable, accessible, and effective. With this support, Catholic Charities has been able to prevent displacement, provide rapid, equitable, interventions, strengthened a network of community partnerships, support long term subsidies, housing stability, and every dollar invested, in this, funding, supports effective, cost efficient homeless intervention, keeping people housed, and avoiding the far greater personal and financial impacts of entering the homelessness response system. Without this funding, many of the households we serve would, face immediate risk of eviction or displacement. I respectfully, urge this committee to protect and sustain this funding, for us, an amazing partnership with h HSH. And I wanna say hi to my family that are watching

[Dara Pappo (Director, Whole Person Integrated Care, DPH)]: me. I'm

[Jose Guadalupe (Catholic Charities)]: nervous. Thank you.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you.

[Brent Jalipa (Committee Clerk)]: And thank you much for addressing this, committee, Jose Guadalupe. And madam chair, that completes our queue.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Seeing no more public comments, public comment is now closed. I I think that, with this spending, it does remind me one thing that, as we know that the five year projection and the revenue letter well, actually, no. The revenue letter comes later, but, I think we're gonna have our projection for revenue soon. Wanted to make sure that HSA is aware that because of the the legislation that we, approved last year, anything that's above the projection of $370,000,000 cap but capping at 19,000,000. You said 19,000,000? You're right. 19,000,000. You know, it's does not require this is the proxy money. Does not require the super majority of eight votes. And so I think that in advance to the budget proposal, it's very likely either during May or April that we would have a hearing to once we have a better understanding of the revenue projection about that $19,000,000 should there be, what is the spending strategy looks like. Thank you. And so with that, colleagues, I would like to move this item to first, amend this item as proposed by Department of Homelessness and Supportive Housing, right out loud, and move the amended version to full board with recommendation. And a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion, to amend this resolution, we accept the amendments as so offered by the department, and to forward this resolution with recommendation as amended. Vice Chair Dorsey. Aye. Dorsey, aye. Member Chen. Chen, aye. Chair Chan? Aye. Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. And, mister Clark, please call item number let's see. My apologies. I know it's item number five. Yes. Item number five.

[Brent Jalipa (Committee Clerk)]: Yes. Item number five. Pardon. Is a resolution authorizing the director of property to execute a second amendment to a lease between the city and La Cocina Inc, related to the lease of city owned property located at 101 Hyde to extend the lease for an additional five years from January 2027 for a total term of 07/09/2019 through 12/31/2031 with no change to the annual base rent of 12,000, make certain modifications to the second amendment to the lease, and take certain actions in furtherance of this resolution, and to authorize the director of property to enter into amendments or modifications to the lease that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the lease or this resolution. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And today, we have mayor's office of housing and commute development here.

[Robert Baca (Joint Development Director, MOHCD)]: Good morning, chair and supervisors. My name is Robert Baca. I'm the Joint Development Director at the Mayor's Office of Housing and Community Development. I'm here today to request approval of a second amendment to the lease with La Cocina at 101 Hyde Street. This action would extend La Cocina's lease through 2031. This is an interim use strategy that protects a valuable city asset until we can responsibly move forward with housing. La Cocina is one of San Francisco's most recognized nonprofit supporting women, immigrants, and entrepreneurs of color who are building small food businesses. They provide affordable commercial kitchen spaces, training, technical assistance, and access to markets. Their participate the participants are overwhelmingly low income residents, many of whom face structural barriers that keep them out of the formal economy. La Cocina's presence in the Tenderloin has real measurable impacts. At 101 Hyde, they support 25 small businesses and additional commercial kitchen users. They've transformed what was once an open air drug market into a safe and activated corner through daily cleaning, power washings, graffiti abatement, and their overall presence in the community. They offer free meeting spaces, discounted community event spaces, and work with the Tenderloin residents, students, and CBOs. Why this extension is important to the city from a financial standpoint, keeping La Cocina in place is, is significantly more cost effective than vacancy. When city owned sites slated for affordable housing development sit empty, MOCD routinely absorbs up to half $1,000,000 per year in holding costs, which includes security, utilities maintenance, graffiti abatement, washing sidewalks, and blight mitigation. Extending this lease avoids the Extending this lease avoids the site sitting vacant and the city absorbing significantly significant holding costs while allowing a proven community serving organization, La Cocina, to continue to operate at 101 Hyde. Importantly, La Cocina brings in philanthropic and private dollars that support community programming, events, and small business development. Resources that the city might otherwise have to fund itself. As plans for future housing at the site. Most city remains committed to building affordable housing on the site, but today and in the immediate future, 101 Height is not competitive for limited state funding programs that are essential for new construction in San Francisco To affirm this commitment to develop the site in the future, MOCD is proposing to amend the resolution before you today to add the following. MOCD remains committed to developing affordable housing on the property and attempts to issue a request for qualifications or equivalent procurement to select a developer or development team within two years of this resolution. As you'll see in the recitals, and in order to keep our focus on the site for affordable housing, MOCD will issue an RFQ for a developer within the next two years. We are also proposing to amend the resolution before you today to add language that allows MOCD to give a one year notice of termination to La Cocina after two years, should a housing program prove to be feasible in the near term. Why it's important to prove this extension now. La Cocina needs stability to plan programming, operate efficiently, and continue activating this critical tenderloin corner. Approving the amendment now strengthens our fundraising prospects and ensures continuity of programming while we prepare for future housing development. La Cocina will continue to work at the mayor's office and the office of economic and workforce development to develop new ideas for programming and activating the space. Having the lease in place will support that effort. This extension is a practical solution to protect the city's investment, avoids unnecessary holding costs, and keeps strong community partner in place while we prepare for future housing. We accept the committee and clerks amendments. Thank you. And I'm happy to answer any questions.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Item five is a resolution that approves an amendment to a lease that NYCD has with La Cocina for city owned property at 101 Hyde Street. The amendment extends the lease, which ends December 2026, a year from now, through December 2031. There's no other changes to the lease terms. So under this lease, La Cocina would continue to pay $12,000 a year in rent, including and also pay 5% of any net income they generate in the prior year on an annual basis. This site was acquired in 2016 by the city at no cost and dedicated to affordable housing. And the continuation of this lease does allow the site to remain activated. But because the process for selecting a developer is ongoing and there's no certain timeline associated with it, we did recommend that the mayor's office consider adding this early termination provision to the lease, similar to the old mint lease that came through committee a couple months ago, that would allow the city to retake control of the site if, resources can be devoted to housing at this site. We do consider approval of this item to be a policy matter, because it's been ten years, and there's still no plan for this site. We have other stronger recommendations for the board to consider in the report that would be more work, including selling the site that would require additional legislation, and then repurposing those funds for affordable housing elsewhere.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I am supportive of La Cocina just as an organization and its core mission. I do hope that not not from, MOCD when it comes to the aspects of developing the site itself, but much more from either OEWD, and maybe even, Human Rights Commission to really work with La Cocina as a program, as an organization for the work that they do. Suburban apart from that, I think that, I do appreciate, MOCD for, your work, providing the amendments before us today, in in in focusing on the actual housing development. I think those are two different things. One is for the site management and and housing development of the site. And then and I'm glad that at some point that La Cocina and the sites come together, but it's it's just seemed to be in in the latest lease amendments that brings to the questions of both the future of the actual site, effort to build that into housing, as well as the city's support for La Cocina as well. I don't expect you I I don't expect us to solve all those problem. I think it's actually what the lease amendment speaks in volume. It's that, like, we need to buy ourselves and La Cocina and Ancestor City a little bit more time to try to figure out, like, what to do with the sites, but also how can we continue to support La Cocina as an organization. So I'm in support of that, and and also in support of, again, also the amendment. I think two years is is a realistic time to help La Cocina, and I also hope that it's realistic enough for the sites to be developed into housing. As the BLA has indicated, it's been a decade long for the sites, not La Cocina, but for the sites. It's it's hard. I I think that there should be an active efforts for, like, state and federal tax credit, however way we can identify it. But I know it's been hard, be at 1234 Great Highway, and some other sites that we really are, like, interested in making into, affordable housing has been difficult to, getting state tax credit and bond dollars to do so. It's coming ahead. I think, at some point, we have to start talking about a regional housing bond and other funding mechanisms. So thank you so much for your work.

[Nick Menard (Budget and Legislative Analyst)]: Thank you.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: I don't see any other name on the roster. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes. Right now, opening public comment on this item number five. If we have any members of the public who wish to address this committee.

[Casey Rios (Tenderloin People's Congress)]: Good morning, supervisors. I'm, Casey Rios, here representing the Tintralloy and People's Congress. And we are, asking you, respectfully, to pause on this extension. We are very well acquainted with work, because they've been in the, the site at 101 Hyde for a number of years, since 2019. And we, in the neighborhood surrounding La Cocina, experienced the promise, and we're, unsure if this is, in fact, the best interim use, especially for the next five years. And so what we'd like to advocate for today is, perhaps a month to month extension for just a, a quarter, or even two months would help. So that we could, as a community, actually weigh in on what is the best interim use for the site. Five more years at $12,000 a year is a great boon to a nonprofit. Many of our locally based nonprofits could benefit from that. We we don't have, for example, a a community center in our neighborhood like so many other neighborhoods do. So thank you for your, attention to this.

[Brent Jalipa (Committee Clerk)]: And thank you, Casey Rios, for addressing this committee. Madam chair, that completes our queue.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Seeing no more public comments, public comment is now closed. I don't know if MOCD wants to respond to the public comment. Just kinda a little bit in the general plan. Like, you have already an amendment Yeah. Put forward about within two years, you're gonna select a developer. Do you wanna kinda elaborate a little bit?

[Robert Baca (Joint Development Director, MOHCD)]: The only the only comment I would have is, I've been in MOCD for about five years. I manage all the interim uses. We've had probably about nine or 10 interim uses. Thankfully, a lot of them are are moving forward and they're in construction. But it's just it's it's super expensive for us to manage a vacant site. We've also been very active trying to find Activate sites with different interim uses, with different non profits, and the start up cost is just too expensive for a lot of these uses. And one of the one of the great things about working with La Cocina is they they invested $6,000,000 of their own money at different times for these build outs, which are super expensive. You gotta bring buildings up to code. The city, San Francisco Foundation funded about $1,000,000 of that. MOCD funded about a 106,000 just in sidewalk, code improvements. So it's very expensive to activate these interim use sites, let alone operate them. And, you know, most city always has a trade off. Do we leave the site vacant, which, as I've said, it can cost us up to a half $1,000,000 a year, Or do we work with a proven nonprofit that has had a successful model out there?

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Yeah. And and I think that's a question that's also back to La Cocina, right? Like, it was a food hall, and it was quite successful, and I know it's no longer operating opening am I correct? Like, in in

[Robert Baca (Joint Development Director, MOHCD)]: It's not an open marketplace anymore. No.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: It's it's no longer right?

[Robert Baca (Joint Development Director, MOHCD)]: No. It's it's an incubator kitchen space. I don't know if anybody from La Cocina wants to just

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Yeah. Yeah. Like right. Because it was, like, opening as a food hall, like, folks Yeah.

[Robert Baca (Joint Development Director, MOHCD)]: And and there, they just the it was during COVID, the foot traffic. There wasn't enough foot traffic. It wasn't sustainable. So they had to make a pivot. But

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: And so maybe La Cocina can actually explain a little bit about what is your strategy and vision for the next couple years?

[La Cocina representative]: Yeah. I'm happy to answer questions. And we are so committed to being able to really focus on our core mission of business incubation, and supporting small businesses and entrepreneurs. And so, when we, you know, had to kind of look at our numbers and make the hard financial decision to close to the public, We did that in the spirit of really wanting to ensure that we would still be able to serve small businesses. So we do continue to use that space every day. There are 25 businesses that use it as their production facility, and then we are able to host events, and, you know, we want to bring more programming to the space. We've done night markets. We've done film nights. And, you know, if we can continue to get money to do those kinds of events, we want to continue to do them and to, you know, continue to engage with the community. But primarily, it is really business serving, and serving to, you know, the core community of small businesses that we're working with.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: And is it functioning as, like, a incubator kitchen now? A commercial kitchen?

[La Cocina representative]: Exactly. Yes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. Yep. With that, colleagues, I would like to first amend awaiting the motion to amend, the legislation as proposed by MOCD and read out loud, and then to move the amended, legislation to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: Pardon. And on that motion, to accept the language or to amend this resolution to accept the language as surrendered to the record by the department and to forward the resolution to the full board with the recommendation as amended. Vice chair Dorsey? Aye. Dorsey, aye. Member Chen? Chen, aye. Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. Thank you. And, mister Clerk, please call item number six.

[Brent Jalipa (Committee Clerk)]: Yes. Item number six is an ordinance amending the municipal elections code to increase the filing fee and per word fee for paid ballot arguments. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you, and colleagues. The department of election has requested, for this item to continue to the call chair, given the fact that, it's a significant increase for the ballot argument fees and that we should have further discussion likely, besides in addition to a public hearing here. I think that Department of Elections is, realizing and recognizing more work needs to be done, or more public conversation needs to be had before we decide on the fee increase. So with that, let's go to public comment on the continuance of this item to the call chair.

[Brent Jalipa (Committee Clerk)]: Yes. We are opening public comment for this item number six, if we have any members of the public who wish to speak on the continuance of this item. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Seeing no public comments, public comment is now closed. Colleagues, I would like to make the motion to continue this item to the call of chair at a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion to continue this ordinance to the call of the chair, vice chair Dorsey. Dorsey, I. Member Chen. Chen, I. Chair Chan.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chen, I. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. And, mister Clark, please call item number seven.

[Brent Jalipa (Committee Clerk)]: Yes. Item number seven is a resolution approving amendment number one to the agreement between the city and county acting by and through the Department of Public Health and Community Forward SF to provide medical respite and sobering center services, to extend the term by three years and six months from Jan from 12/31/2025 for a total term of 07/01/2024 through 06/30/2029, and to increase the amount by approximately 22,200,000.0 for a total not to exceed amount of 32,200,000.0, and to authorize DPH to enter into amendments or modifications to the agreement, and to not materially increase the obligations nor liabilities to the city, and are necessary to effectuate the purposes of the agreement or this resolution. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And today, we have Department of Public Health here.

[Dara Pappo (Director, Whole Person Integrated Care, DPH)]: Good morning. I'm Dara Pappo. I'm the director of Whole Person Integrated Care with the Department of Public Health. Thank you for having us this morning. Down. We are here to talk about the Community Forward Medical Respite and Sobering Center. The contract amount of $22,000,000 not to exceed $32,262,830 I think we talked about the timeline, 07/01/2024 to 06/30/2029. The contractor is Community Forward San Francisco. Community Forward partners with the DPH to provide non clinical services for our medical respite program, which has 75 beds serving medically frail clients who need assistance with chronic health management, medication adherence, and social services. This allows individuals that are experiencing homelessness but are not sick enough to need to remain in the hospital to be able to get ongoing, stabilizing care in the community. It also now currently includes 10 beds for our managed alcohol program, within the 75 beds and medical respite. The sobering center provides a safe and stable place for people intoxicated on alcohol or opioids to safely sober and receive services outside of the emergency department, jail, or on the streets. The sobering center has 14 beds. We respectfully request approval of this item and are here if you have any follow-up questions.

[Nick Menard (Budget and Legislative Analyst)]: Item seven is a resolution that approves an amendment to a contract that Item seven is a resolution that approves an amendment to a contract that DPH has with Community Forward. The amendment extends the agreement through June 2029 and increases the contract value to $32,200,000 In this agreement, DPH funds Community Forward to provide non clinical staffing for three programs, a medical respite, and sobering center program, and managed alcohol program. And then also a small part of the budget, about $120,000 is for, transportation to and and from Sunrise for patients to go to medical appointments and other necessary appointments. As we discussed in our report, the managed alcohol program, which was 20 beds and in a different building, That building closed and is now being rolled into the 75 bed program within the medical respite and sobering center program. And we show the budget for this contract on page 33 of our report. This is about a $6,000,000 a year contract, primarily funded by the general fund, and we recommend approval of item seven.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I know, I have yet two requests of DPH, before, and only for the Department of, Homelessness and Supportive Housing. When we talk about, permanent support of housing sites or shelters, during their presentation, we have requested that when it comes to site, specific, agreement, we would like to see photos, of the facility. It's it just helps us understand what does the facility look like, and and what without arranging for tour and and help us just learn more of the work that you do. I didn't even know there's a whole person integrated care. That's amazing. Thank you so much for your work. So if there is a possibility to include some of some photos of the sites, I would really appreciate it. Just help us understand, what the facility looks like, And if it's possible, you will have time because once this goes out I I'm supportive of it. I I I I should this committee decide that this should go out to full board. You will have some time till January to provide some of those photos if if you could create that, I would really appreciate. And, vice chair Dorsey.

[Nick Menard (Budget and Legislative Analyst)]: Thank you, chair Chan.

[Robert Baca (Joint Development Director, MOHCD)]: I just wanted to ask, is the provision of services for folks with stimulant use disorder new?

[Dara Pappo (Director, Whole Person Integrated Care, DPH)]: So, we have always for so, medical respite has a number of people that have stimulant use disorders. For alcohol sobering, people come in primarily for alcohol use disorder or recovering from an opioid overdose, we do know that there is co occurring use with stimulants. Individuals that are sort of only coming seeking services for stimulants are usually first directed to summarize.

[Jose Guadalupe (Catholic Charities)]: Okay. Okay.

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

[Brent Jalipa (Committee Clerk)]: Yes, Ray. And now opening public comment for this 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, Budget & Finance Committee)]: 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 recommendation, vice chair Dorsey. Dorsey, aye. Member Chen Chen, aye. Chair Chan?

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. And, mister Clark, please call item number eight.

[Brent Jalipa (Committee Clerk)]: Yes. Item number eight is a resolution approving amendment number five to the agreement between the city and county acting by and through the Department of Public Health and Bayview Hunters Point Foundation to provide mental health and substance abuse services to extend the term by eighteen months from 12/31/2026 for a total term of 07/01/2018 through 06/30/2028, and to increase the amount by approximately 7,500,000.0 for a total not to exceed amount of approximately 25,600,000.0, and to authorize DPH to enter into amendments or modifications to the agreement that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the agreement or this resolution. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And with this one, we have Department of Public Health here.

[Max Roachan (Director of Systems of Care, Behavioral Health Services, DPH)]: Good morning, Chad Chen, Vice Chair Dorsey, and Supervisor Chen. My name is Max Roachan, Director of Systems of Care at Behavioral Health Services. Joining me today is, our CFO, Director Drew Morell. Also want to acknowledge the presence of Bayview Hunters Point Foundation's executive leadership, mister James Bokin, and, CEO, and also mister Darryl Smith, their COO. The overview of this contract is amendment number six, to extend the contract terms eighteen months from 12/31/2026 through 06/30/2028. In the amount of, the current trend amendment amendment amount is $7,500,000 and not to exceed $25,600,000 A brief program overview, this contract provides crucial outpatient mental health services in the Bayview area, anchoring services around adult behavioral health services through case management, individual group therapy, and crisis interventions, aiming to serve two twenty five clients a year. In addition to that is the children's outpatient services, providing similar services, and also, education related mental health services called IRMs, where they provide therapists on-site across various schools across San Francisco Unified School Districts, school district aiming to serve 80 clients per year. Why we're here today is, for this amendment, six months ago, we presented this contract, and given the agency has been on controller's office tier three status, we're here to provide an update on the actions and monitoring we have provided so far since then. So our department is deeply, deeply invested in the success of the agency, and has continued working closely with them, and as a result, we have, through our program monitoring and program manager support, we have successfully worked with the agency to increase the units of services, and serve, and meeting the contract's deliverables, serving the unduplicated clients, who aim to be served for this contract. In addition to that, we have established sustainable documentation and productivity monitoring. Why this is important, the agency needs to be able to submit their claims, and at the same time, the documentation has to be accurate and tight enough so then they can keep the units of services and billings earned. We have provided very close monitoring and also technical assistance. So technical assistance including training on documentation practices, how to use the electronic health monitoring, electronic health record system, the reporting tools, and also productivity tracking tools. We have been maintaining regular monitoring meetings with them to ensure they're meeting these progress, like, towards achieving these deliverables. In addition, is to make sure that referrals are in place, So we've been working closely with them on that, as well as strategically placing them across various school sites in the city. And as a result, they are now reaching 26 schools, schools across school district. We are affirming that they are meeting and exceeding the contract deliverables for units of services and unduplicated client counts. For the financial updates, the agency has been on controller's office, tier three, and the funding departments have provided technical assistance and conducted monthly check ins with the agency, as part of the corrective action plan process. We are proud to announce that as of November 2025, they have reached and satisfied two key items on the corrective action plan. One is cash flow, cash flow stabilization, followed by invoicing improvements. For the cash flow stabilization, the agency has been providing monthly cash flow projections to the city. FY fiscal year twenty four-twenty five, they're showing a near breakeven results, and twenty five-twenty six quarter one, showing a surplus. For the invoicing accuracy, they have been providing the documentations and submittals on a timely basis, and they're also accurate when the documents are submitted to us. The citywide fiscal monitoring in August 2025 also found all invoice standards were met. The agency is still contending with audits delay, so for fiscal year twenty two, twenty three, and fiscal year twenty three, twenty four. These delays are as a result of fiscal year twenty one, twenty two audit, staff turnover, and as a result of these delaying subsequent years' audits. We are working closely with the agency to obtain this information, and the agency also on themselves have conducted pre audit processes to streamline these two years, documentation submitted to the auditors. We do stand behind Bayview Hunters Point Performance. They are a vital agency serving the continuum of behavior health services in San Francisco, in Southeast, and Southeast sector of town, and also across San Francisco Unified School Districts. They have brought on new leadership, and have demonstrated dedicating themselves to improve and address the corrective action items. They are showing financial improvements year over year, resulting in partially positive cash flow. They are meeting and exceeding the contract's deliverables, and also in the timely and accuracy of documentation submittal. So we do stand behind the performance, they have improved over time. Happy to answer any questions you have, and Chair Chang, we do have an amendment to, to this, and if I may read into this.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Please.

[Max Roachan (Director of Systems of Care, Behavioral Health Services, DPH)]: Yeah. So this is amendment number six to the resolution, not amending number five. So on page one, line three, we would like to delete number five and replace it with number six. Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Item eight is a resolution that approves an amendment to a contract that the Department of Public Health has with Bayview Hunters Point Foundation. The amendment extends the agreement from December 2026 through June 2028 and increases the contract value to $25,600,000 the contract extension would allow DPH to continue to fund two outpatient programs, operated by this provider in the Bayview, one for adults and one for children. We discussed the program performance on page 39 of the report. The most recent data from the Department of Public Health for 2425 shows that both programs are meeting their, client count and level of service delivery. But DPH is working with the nonprofit to improve documentation of their activities, that's, necessary for DPH performance monitoring of this program. As we discussed on page 40, the Bayview Hunters Point has also made significant progress in resolving findings from the city's financial monitoring of non profits, which, I think, as you all know, the city has a set of standards for financial condition and governance of non profits. When we looked at this contract in May, there was no documentation provided to the city monitors as part of the most recent process at that time. And so the city then initiated a corrective action plan, due to significant findings as part of that review, as well as, inaccurate and late invoices submitted to DPH and other funding departments. There has been, according to DPH, progress, both in terms of the fiscal monitoring. They've been able to complete a fiscal monitoring cycle now. And they've resolved some of the cash flow and invoicing issues that were a problem back in May. And so, as the DPH representative stated, the only outstanding issue pertaining to the tier three status, which is just the controller standards, not, you know, other issues that the the departments may monitor, are the are the outstanding audits. So they're historical financial reporting issues. In terms of going forward, there's probably less a risk now that they will go belly up the way Baker places did. Right? Because they've resolved their invoicing and cash flow projection issues. So I think based on all that, we're recommending approval of the entire proposed extension through June 2028. By then, DPH will have gone through a procurement process to reprocure all the outpatient programs in their portfolio. And we do have a recommendation as well to correct the reference in the resolution to the sixth amendment, not the fifth amendment.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I mean, I think here's thank you. Like, whenever Drew show up, I'm like, okay. We we got some issues, but we're problem solving it, and we're gonna we're gonna we're gonna we're gonna move it along. And if it wasn't because our previous experience, I think that in the previous years, I would always say, let's I hate to say that, but it's to say, let's only extend these, like, every six months, which we have done in the past, like, bigger place. And to just really make sure that we understand the progress that's being made. But because of learned lessons and the fact I see Drew here, then we say, okay, eighteen months is usually, like, where we can say, if you were in tier three, it typically will take about a year or a year and a half for any organizations to have their new leadership if they already retain new leadership and to turn it over and just be have some structural reform within within the organization, and therefore, we can make sure they're stable and provide them those services. So I, am I so I'm I'm glad that there's agreement now to just extend this by eighteen months. With that said, I think this is what really for the controllers and for the BLA. And and another reason why I say eighteen months is fine, but I think we are gonna turn back again for the budget process. I think we need to start asking the city departments that, you know, or the contract side. And and that, I would say, that is definitely for our city departments who receive general fund, and and public dollars versus the enterprise, which is we can separate the two about contracting. But contracting dollars or I should say, how many organizations currently under contract with that particular city department are in a category of two and three? And out of which, those categories, the dollar amount for those categories and potential expiration date for those contract, that could we start sinking them into a two year fiscal year, and within that is the every six months, progress report. Similar almost similar, or or quarterly, like, very similar to the aspects that we currently have in overtime, like, track that the controller had controller has, which is really what you would typically do. But I I think I'm adding a layer to, as we track over time for city departments, can we track on a quarterly basis of progress of the contracted dollars that with the partners and organizations are actually in tier two and tier three to make sure that the progress is being made and that we flag if they're not doing well, like, what is the backup plan, like, for those services. So that just, I I think that we're gonna start trying to tighten the screw on that, in the coming fiscal year. Suburban part, we're going to probably start talking about reimbursement, for some of these services around CalAIM, and and start thinking about that's the third bucket for all contracts. And what is the reimbursement rate actually looks like for these services. Thank you. I really appreciate the work. It's not easy. And frankly, you know, I wanna say this about specifically the bay which usually I don't do, but specifically about Bayview Hunters Point Foundation and the long history that it has serving the community. I think this is probably the one of very few organization that I would say that, the city should commit to support, and figuring out ways that, because just the way it started for the community. And what can we do to continue to make sure that it's remained fiscally sound, and also, providing the deliverables that not just the city, but really the community that it primarily serves, they deserve that. So thank you for your work on that. And so with that, let's just go to I don't see any other name on the roster. Let's go to public comment on this item.

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

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: I see no public comments. Public comment is now closed. Colleagues, I would like to amend first amend the make the motion to amend as proposed by Department of Public Health, correcting this to be the sixth amendment, and move the amended I wanna say, regrettably, I wanna move this forward without recommendation, just given the fact that it still remains as tier three. But I do think that we will be urging our colleagues in support of this, passage of this, amendment. So with that is to make the motion to amend and send this to full board without recommendation. And a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion, to accept the clerical amendment as offered by the department and to forward the resolution to the full board without recommendation as amended. Vice chair Dorsey. Dorsey, aye. Member Chen. Chen, aye. Chair Chan.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. Thank you. And, mister Clark, could you please call items nine through 12 together?

[Brent Jalipa (Committee Clerk)]: Nine and twelve.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Yeah. Yeah. Because it's all Department of Public Health.

[Brent Jalipa (Committee Clerk)]: Okay.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: So And accept and expend grants. So

[Brent Jalipa (Committee Clerk)]: Yes. Item numbers nine and ten are resolutions retroactively authorizing the Department of Public Health to accept and expend grants from the California Department of Health Care Services. Item number nine is through Blue Cross of California Partnership Plan Inc, or Anthem, for participation in the program entitled Housing and Homelessness Incentive Program in an amount of 626,000 for the period of 07/01/2024 through 06/30/2026. And item 10 is through San Francisco Health Plan for participation in the program entitled Housing and Homelessness Incentive Program in the amount of approximately $2,500,000 for the period of 01/01/2025 through 11/01/2026, for a total amount of approximately $7,600,000 for the total period of 07/01/2023 through 11/01/2026 and approving the notice of award agreement pursuant to the charter. Item number 11 is a resolution retroactively authorizing the Department of Public Health to accept and expend a grant increase of approximately 2,000,000 from the Centers for Disease Control and Prevention for participation in the program entitled High Impact HIV Prevention and Surveillance Programs for Health Departments in an amount of approximately 7,000,000 for the period of July of 06/01/2025 through 05/31/2026, and a total grant amount of approximately 12,700,000.0 for the period of 08/01/2024 through 05/31/2026, approving the grant agreement pursuant to the charter and to authorize the director of health to enter into amendments or modifications to the grant agreement that do not materially increase the obligations nor liabilities to the city and are necessary to perpetuate the purposes of the grant agreement or this resolution. And item number 12, is a resolution also retroactively authorizing DPH to accept the grant accept and expend the grant from the National Institutes of Health through Florida State University for participation in the program entitled Adolescent Medicine Trials Network for HIV AIDS Interventions, r a t n, Scientific Leadership Center for an increased amount of approximately 62,000 for a total amount of approximately 235,000 effective on 05/21/2025 for a total period of 01/25/2023 through 11/30/2025. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And, we I know we have three different, presentations for nine and ten together, one presentation, and then we have 11 and then 12, and all from the Department of Public Health. If you can say your name and your title and specific division within the Department of Public Health, I would really appreciate it. Thank you. Thank you, Chair Chan.

[Alex Boyter (Administrative Analyst, SF Health Network, DPH)]: Thank you, Chair Chan, Vice Chair Joycie, and Supervisor Chen. My name is Alex Boyter. I'm an administrative analyst with the San Francisco Health Network. I'm before you today to present two, retroactive grant acceptance spends, nine and ten on the agenda, and they're very closely linked. They are for a housing and homelessness incentive program grant, also known as HHP. The grant program is jointly funded and administered by the San Francisco health plan known as SFHP and Blue Cross of California Partnership, known as Anthem. The first item is a retroactive grant, Accept and Expend, that will support the Bridge and Neighborhood Services Team Program, now called Street Health Team, by funding Richmond Area Multi Services, or RAMS, peers. The peers, through street health teams, will offer focused and phased interventions to support clients transitioning to ongoing care and services. The grant total is $626,000 The project period for this grant began 07/01/2024, and goes through 06/30/2026. DPH received notice of the grant on 12/10/2024, after the predetermined project start date. There were some delays due to finalizing the grant agreement. And we brought this item to the board of supervisors after going through the fiscal approvals process, including, controller's office review and approval. The second item is a retroactive grant accepting spend that will support the bridge and neighborhood services team, best neighborhood program, now called the street health team, by funding Richmond Area Multi Services, or RAMS peers. Additionally, this will help DPH integrate the find help closed loop referral platform into our electronic health record system for enhanced care management and community supports. The grant increase is $2,518,000 And the project period for this grant began 07/01/2023, and goes through 11/01/2026. DPH has received several grant increases for this grant. And the first was on 02/26/2025, for a project start date of 01/01/2025. Second grant increase was 08/25/2025, for a project start date of 11/01/2025. DPH brought these two most recent granting pieces together as one acceptance spend to the Board of Supervisors after going through the fiscal approval process, including controller's office review and approval. We respectfully request approval of these items, and I'm happy to answer any questions.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Kinda curious what is the delay for discussion with the granter for the first sorry, for item number nine, for the Blue Cross of California partnership.

[Alex Boyter (Administrative Analyst, SF Health Network, DPH)]: It was, for both nine and ten. It was the grants, again, is, joint between SFHP and Anthem. So there were, once we got the grant award, we had to finish, the actual grant agreement, and that was legal review with the city attorney as well as both, health plans. Once that was completed, there were, internal discussions about whether the grant, was a grant increase or a separate grant, and that took a a lengthy period of time. We consulted with the city attorney controller's office as well as the granter and are here before you now.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Understood. And the conclusion that it's a grant increase?

[Jose Guadalupe (Catholic Charities)]: Correct.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Interesting. Okay. Good to know. Just just trying to understand what what was the issue. Great. And so with that, we can go to the next one

[Nick Menard (Budget and Legislative Analyst)]: Thank you.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Presentation. Thank you.

[Nicole Treanor (Budgets, Contracts & Program Operations Manager, CHEP, DPH)]: Alright. Good morning, Chair Chan and supervisors. Thank you all for having me today. My name is Nicole Treanor. I'm the budgets, contracts, and program operations manager in DPH for our community health equity and promotion branch, also known as CHEP. What you have before you today is a request to accept and expand the Centers of Disease Control grant funding for HIV prevention. The grant is also referred to as integrated HIV surveillance and prevention programs for health departments, also known as PS twenty four thousand and forty seven. This is a continuation of a grant that the board recently approved in 2020 and also approved in November 2024, and we're always grateful and thank thankful for your continuous support. The grant proposal expands our commitment to fully integrating surveillance and prevention programs. It supports, strategies that really have contributed to the dramatic decrease in HIV incidence over the recent years. And it implements, shifts needed to align with the current epidemiology and, includes a much stronger equity focus. The total funding, among for our five year grant, it was 5,700,000.0 for the first grant year, and then it's 7,000,000 annually for all subsequent grant terms. The funding that we receive from CDC is broken down into three core sections that really support our internal cross branch staffing and program operations infrastructure. That includes our HIV core prevention efforts. They received 3,900,000.0 of the grant annual funds. Our surveillance ARCHES branch received 742,000 annually, and our ending the HIV epidemic efforts, which is 2,300,000.0 of the grant. Overall, this grant is remains steady to ensure that we can really continue to address the current HIV, as well as the STI syndemics here in San Francisco. CHEP utilizes this fund in partnership with our cross internal branches. The funding supports our critical infrastructure, our DPH staffing and coordinating program planning and program implementation, community engagement efforts, as well as technical assistance support. We also fund jail health services at 850 Bryant and also San Francisco City Clinic to implement, integrated HIV, STI, and hep C testing along with other innovative HIV prevention programs. These direct services also, they really dovetail nicely with the grant and is supported through the generosity of, San Francisco General Fund dollars that support other HIV prevention programs, as well as our, seven health access points and community based testing partners. We are here seeking retroactive authorization to approve this grant, accept, and expend. DPH budgeted, the initial award amount of 5,000,000 through the annual appropriations ordinance, file number 240,595 for this grant. DPH also received a grant increase of $648,000 for the period of 08/01/2024 through 05/31/2025. This was also approved by the board, file number 240987. DPH received, the notice of the grant increase in September on 09/25/2025 for the project period of 06/01/2025 to 05/31/2026. DPH, we brought this item to the board after going through our fiscal approval process and also including the controller's office review and approval. And so to conclude, we would like to respect respectfully ask for retroactive approval for the grant, accept, and expand. And we really thank you for your ongoing support with these continued efforts for HIV prevention. Thank you.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. We're ready to have the next one.

[Nicole Treanor (Budgets, Contracts & Program Operations Manager, CHEP, DPH)]: Okay. Great.

[Dr. Susan Buchbinder (Director, Bridge HIV, DPH)]: Good morning, Chair Chan, and supervisors. My name is Susan Buckbinder. I'm director of BRIDGE HIV, which is an HIV and STI prevention research unit housed in the public, in the Population Health Division of the San Francisco Department of Public Health. I, am going to be, overviewing the grant from the Adolescent Medicine Trials Network for HIVAIDS Intervention scientific leadership center. It's a grant increase of about approximately $62,000 for a total amount of $235,000 The timeline is 01/25/2023 to 11/30/2025. The funder is the National Institutes of Health through Florida State University. And basically, what it's doing is funding BRIDGE HIV to run a, an HIV and STI prevention clinical trials, through the adolescent trials network, housed at the San Francisco Department of Public Health. Oops, sorry. And so we're seeking retroactive authorization to approve this grant, accept, and expend. The project period for the grant increase is 05/21/2025 through 11/30/2025. The start date was predetermined by the granter. San Francisco Department of Public Health received notice of this grant increase on 09/06/2025 after the project start date. And we brought this through the fiscal approvals process, including the controller's office for review and approval before bringing it here. We respectfully request retroactive approval of this item, and thank you so much for your support.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. I don't see any name on the roster, and I do not have additional questions. Thank you so much for your work. And, with that, let's go to public comments on all these items.

[Brent Jalipa (Committee Clerk)]: Yes. Right now, opening public comment for these item numbers nine through 12. If we have any members of the public who wish to address this committee. Madam chair, we have no speakers.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Seeing no public comments, public comment is now closed. Colleagues, I would like to, move items nine through 12 to full board with recommendation and a roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion to forward the resolutions in item numbers nine through 12 to the full board with a recommendation, vice chair Dorsey. Aye. Dorsey, aye. Member, Chen Chen, aye. Chair Chan? Aye. Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. Mister Clerk, please call items thirteen and fourteen together.

[Brent Jalipa (Committee Clerk)]: Yes. Item number 13 is an ordinance amending the planning code and the administrative code by superseding certain provisions of ordinance number one forty nine dash 16 to increase the surcharges on certain planning department fees to compensate the city for appeals of planning department actions to the board of supervisors, affirming the planning department's determination under the California Environmental Quality Act and making findings of consistency with the general plan and the eight priority policies of the planning code. And item number 14 is a hearing to consider the review and approval of the budget guidelines for the board of supervisors and clerk of the board's annual budget for fiscal year twenty twenty six to twenty twenty seven and twenty twenty seven to twenty twenty eight. Madam chair.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. Madam Clerk, it's so good to see you, and the floor is yours.

[Angela Calvillo (Clerk of the Board of Supervisors)]: Thank you, madam chair, members of the committee. Angela Calvillo, clerk of the board, and I'm here today with Edward de Assis. Doctor, Assis manages our department's budget meticulously and shares every line item and invoice with me. I appreciate that, Edward. Thank you. We are here today with, the, the board's budget for fiscal year, '26, '27, and fiscal year 2728. I'd just like to start with the board's rules of order. Rule 6.8 starts sixty days prior to submission of the department's proposed fiscal year budget for the mayor's phase. The board schedules this public hearing for discussion of the board's balancing guidelines for the clerk to implement in preparation of the fiscal year, budget for the board of supervisors and the office of the clerk of the board, and the, divisions underneath the board of supervisors. Further, board rule 6.9 requires the clerk to propose a timeline for additional public hearings. We will return to the committee in January with the proposed budget based on today's guideline instruction. Again, we will appear before you in February for submittal to, to the mayor's phase. And then finally, the department's budget conversation will continue in June during the board's two month budget phase when the greater AAO and ASO is before this committee. For clarity, the board has placed stringent budget practices around the responsibility of the formation of its own budget. In comparison, the board takes four months to review its own budget to ensure that even during the high flying boom cycles in the city, that the board members are precisely placing funds in their department. And you will happy to point out those areas that are tied to charter, mandates, state law, or administrative code. For today's hearing, we have six slides. We're gonna briefly highlight the department's current projects. We're going to provide the department's requests, and I put those, quotes around the requests because they're not true requests. But we will learn if there are additional committee initiatives not already captured, and the guidelines, certainly. And will continue to be available for all offices if there are questions. Just moving on to slide two. I stated that our work is mandated, from the various, requirements. The overwhelming majority of our budget does tie directly to public service. A quick glance, let's turn your attention to the pivot table. You you'll see that approximately half of the city's budget half of the department's budget is tied to the salary and benefits for the employees in the department. Those are MOU, negotiated and approved. And then you will see Assessment Appeals Board has a, budget of 1,500,000.0, and we'll talk about that in just a moment. This committee gave us three positions last year. Our friend, Assessor Torres, has indicated that the, the onslaught of the economic downturn and the appeals that are forthcoming will last until 2030. So we have requested the committee to provide us those three positions at least until 2030. And we'll talk about that as one of our requests. I'll draw your attention to the full time employees, of which we have 97. We also have positions in this department, which are 67 appointed commissioners for the AAB, the SOT, the Sunshine Ordinance Task Force, the Youth Commission, the LAFCO, and the newly created Downtown Revitalization District Board. So just to point out that pivot table, 20,000,000 of the department's budget, again, belongs to MOU salary and benefits. Additionally to our memberships in the California State Association of Counties, the National Association of Counties, NACO, and the National League of Cities, which totals 205,000. You can see on the table, there are there is 31% of the department's budget, which belongs to the Office of the Clerk of the Board. I appreciate my staff always efficiently. No matter what the, requirement is, whether it's a state law or a local law, they are doing more with less, providing administrative and operational support and IT support to the district offices, and training and supporting free of charge, I might add, to all of the city departments, moving their legislative items through the legislative process, and the training that we provide to all of the liaisons, no matter what they are, whether they're comms or legislator government affairs. The you'll see the budget and legislative analyst services contract represents 13% of the department's budget. The remaining 11% of the budget mainly pays for salary infringe benefits for for the employees at the AAB, the youth commission, Sunshine, LAFCO, and maintenance of the assessment appeals system. The pivot table shows the largest cost share at 73% of the total budget. That is the DHR MOUs. The largest next category is 23% or 6,200,000.0 for, budget and legislative analyst services contract at 3.4. Materials and supplies, it's remained the same year to year. And services requested from other city departments are approximately 561,000. So I'll turn to page three, a snapshot of just a couple of projects that we're working on. There are many, but I will just highlight that we are working to refresh the board of supervisors, network. We are working really well with Michael Maxman, the city's chief information security officer. He's assisting us greatly in refreshing our IT network. I also appreciate city administrator Carmen Chu and Katie Petruccione for their assistance. The new legislative management system, we are expecting to go live with phase one come the spring, maybe February, if not sooner, and, processing the continuing onslaught of the assessment appeals applications, and saving for the new assessment appeals filing system, and maintenance of this beautiful legislative chamber. We have the great assistance of, city administrator Carmen Chu and the real estate director to help us refurbish refurbish the chairs that you are sitting on, and sooner rather than later, these curtains that are, in danger of one falling back there. So we've cordoned it off so that the public don't get too close to it. I will move on to slide four. Earlier, I put our budget requests in quotes, but what's before you on slide four, items one through six, these are the same requests from last June. There are there is no change. Last year, this committee approved our budget for one year, to be prudent, so you could have this conversation again, whether are you are interested in, paying for 10,000 for the new legislative expense accounts, for the three senior clerks in the assessment appeals board to assist us with that onslaught, To determine if the funding to increase the stipends of our amazing assessment appeals board members who are doing that work, churning out work, even on weekends. The permanent reversal of the cuts to salary and fringe benefits that, was removed from our budget. To defend our request there, We have, as you know, long time city employees in this department who are not at the beginning steps, and they are, some of them, terming out at the beginning of, 2027, and we will have to pay the vacation payout. So the cut in attrition savings will not allow us to do that. We don't wanna blow our salary line. The update to number five, that's the COLA increase for the budget and legislative analyst services contract, and the placeholder for the LAFCO minimum statutory requirement, funds. The item seven, this this is not a general fund request, but it is a fund that when city departments, including ours, are creating, official advertising, 10% goes to an outreach fund. There is a little bit more money in that fund because departments are really working hard to target the, the, outreach fund with that 10%. It's not getting absorbed into the general, general fund. And so because of that savings, we wanted to just bring this 27,000 to the the the committee so that we can appropriate that fund into an appropriate fund where it is supposed to go. And I will, just briefly mention item 13, a companion item, which is the ordinance to increase the Board of Supervisors' appeal surcharge. This has been called with our department's budget. This ordinance will double the surcharge for appeals to the Board of Supervisors from 120 to two forty. It was last updated in 2016. This surcharge is being increased to reflect the higher value of development projects in San Francisco and to account for CPI since 2016. This fee increase was approved by the planning commission, excuse me, on 07/17/2025. And I believe our, deputy city attorney has a finding that he would like to add to the ordinance, which we are absolutely fine with adding that finding. I think it's on page two. I don't have the document in front of me. It might be line 12 or something like that, which just adds the finding. So then with your approval of the amendment to item 13, and then your instructions on how to handle items one through six, What we can do is we can propose the budget, bring that to all the offices, and then return to you in January with having had conversations with all of the offices, and we can further the conversation on these items at that time. Madam chair?

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you, madam clerk. I think that, this is a note for the mayor's office. Every year, it feels like we did. Maybe maybe that's not an accurate recollection, but I feel like we always end up having some back and forth a little about the but the the COLA cost of living adjustments. And I just wanna stand firm that we will be consist or I will be in supportive and be consistent about the cost of living adjustment as a line item and not for negotiation to be eliminated as a reduction. We understand the mayor is going to have their budget instruction in the coming weeks or in a you know, maybe this week or next. So we look forward to it. And so we will have those discussion. We need to have those discussion, what that actually looks like, as well from the mayor's office. And we look forward to incorporate that instruction into your conversation with members, throughout, including with board president. But while we have you here, we should go to item 13, and maybe should I read out loud the amendments, and or maybe should we have our deputy city attorney, Brad Rusey, help us?

[Brad Rusey (Deputy City Attorney)]: Good morning, supervisors. Deputy city attorney, Brad Rusey. Just a minor oversight with this ordinance. It needed to make the planning code section three zero two findings for public necessity, convenience, and welfare. And that has been added to the long title, as well as on page two, subsection c, affirming the those findings that the planning commission made.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Great. Thank you. Thank you for your work. We always appreciate it. We understand, you know, I I also not not as of now until but maybe now. Help us understand, you know, last year, we have authorized you to start collecting potentially license fee, for our LifeStar system. How is that going?

[Angela Calvillo (Clerk of the Board of Supervisors)]: Madam Chair, thank you for asking that question. We have had overwhelming phone calls from various, well, offices in the city and county, but also many throughout the state of California and other agencies who are excited about a basic agenda management system, file management system, and, minutes production. So, we've we are obviously wanting to make sure that we're tending to the city departments first, but there are counties that are lining up to, you know, they're beginning to have those conversations with their local governments.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: And so my assumption then when you return, we will have some somewhat of a projection of revenue?

[Angela Calvillo (Clerk of the Board of Supervisors)]: Yes. And I'm happy to come to this committee to present, what our estimations would be, and what then the actuals are once we capture them. But that probably won't be for another year or so because we wanna work directly with our city departments first.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Understood. And so in our formal budget proposal in June, we will not be we will not be seeing the projection or we will?

[Angela Calvillo (Clerk of the Board of Supervisors)]: We don't have the, projection at this point.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Yeah. No problem. Thank you. I just wanted to understand. Thank you. I don't see any other name on the roster. Let's go to public comment on those two items.

[Brent Jalipa (Committee Clerk)]: Yes. We're now opening public comment for both the ordinance in item number 13 and the hearing in item number 14. If we have any members who wish to address this committee.

[Member of the public (budget technology advocate)]: Ready? Yes. Hey. Good afternoon. Hope you're all doing well or good morning. Hey. So as you as professional, elected representatives and your staff, you really deserve the opportunity and the ability to understand different scenarios that you'll be faced with. When you ask questions of professional staff regarding the budget, they're going to someone in a cubicle who's got a spreadsheet who may take them a week to find the answer, and then they give it to you. And then the next week, they go, the number was wrong, which is difficult. Right? Because that impacts real residents. It impacts personnel. And the city of San Francisco does not have technology that's readily available called modeling what if scenarios. The staff is using spreadsheets, which is from the nineteen nineties. I would ask you and your staff to investigate with the controller's office to look at what other government entities are doing from the federal level to the state level, as well as corporations that are utilizing this. Because then this would allow you and or your staff to go, If the assessment appeals don't turn out for the city, what's that impact? How's that impact my police department, my FTEs, and any other given entity? If the federal government has created an uncertainty from a policy change or a funding change, what's that impact? And you should know six months or a year ahead of time rather than last minute. Because unfortunately in government, sometimes you're handed something that's really extremely politically painful. Whereas if you had input earlier in the process, you could make it a much more viable option. But as it is today, you don't have that capability within a city that should be pretty sophisticated in the center of technology, but you're still using nineteen ninety spreadsheets. I'm happy to work with any of your staff. My telephone number is (408) 905-6384. And I worked in what you did for ten years overseeing government and finance at a city of a million people.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you.

[Brent Jalipa (Committee Clerk)]: Thank you much for your comments. If we have any other members of the public who wish to address this committee regarding the surcharge ordinance or this department's budget, that was your opportunity. Madam chair, that completes our queue.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. Seeing no more public comments, public comment is now closed. Thank you. And, and, let's see. My apologies. If I understand this correctly, we are going to move these two items to full board, which recommend and, like, I mean, like, I'm trying to understand what are we doing with item number four.

[Brent Jalipa (Committee Clerk)]: Madam chair, we can, we could refer the ordinance to the full board if if we so choose.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Sorry?

[Brent Jalipa (Committee Clerk)]: Yes. To amend the ordinance in item number 13, and, there was, an amendment offered If the committee wishes to accept that, then we could refer that to the full board.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Understood. So, let me do this one by one. Colleagues, I would like to amend item 13 as recommended by the city attorney, and move the amended item to full board with recommendation and a roll call on item 13.

[Brent Jalipa (Committee Clerk)]: And on that motion to amend the ordinance as so offered by the or as written to the record by, the city attorney and to forward that ordinance to the full board with recommendation as amended. Vice Chair Dorsey? Aye. Dorsey, aye. Member Chen? Chen, aye. Chair Chan?

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. And for item 14, colleagues, I would like to make a motion to authorize the clerk to submit this proposed budget and that this hearing be heard and filed. A roll call, please.

[Brent Jalipa (Committee Clerk)]: And on that motion, that we authorize the clerk of the board to submit the department's proposed budget as presented, to the mayor's budget office and the office of the controller, and that this hearing be heard and filed. Vice chair Dorsey. Aye. Dorsey, aye. Member Chen. Chen, aye. Chair Chan?

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Aye.

[Brent Jalipa (Committee Clerk)]: Chen, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: The motion passes. And, mister Clark, do we have any other business before us today?

[Brent Jalipa (Committee Clerk)]: Madam chair, that completes our regular business for the year.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: That indeed does. And when is our next budget committee hearing? Have we scheduled?

[Brent Jalipa (Committee Clerk)]: I believe we are scheduled for January 7 under regular schedule.

[Supervisor Connie Chan (Chair, Budget & Finance Committee)]: Thank you. And with that, the meeting's adjourned.