San Francisco Government SmartTranscripts:

[Supervisor Connie Chan (Chair)]: Good morning. The meeting will come to order. Welcome to the 02/11/2026 meeting of the Budget and Finance Committee. I am supervisor Connie Chan, chair of the committee. I'm joined by vice chair supervisor Matt Dorsey and supervisor Denny Soudder. Our clerk is Brent Taliba. I would like to thank Kalina Mendoza from ESSA gov TV for broadcasting this meeting. Mr. Clerk, do you have any announcements?

[Brent Jalipa (Committee Clerk)]: Thank you madam chair just a friendly reminder to those in attendance to please silence all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file that should be submitted to myself the clerk? Public comment will be taken on each item on this agenda. When your item of interest comes up and public comment is called, please line up to speak on the West side of the chamber to your right my left along those curtains and while not required to provide public comment, we do invite you to fill out a comment card and leave them on the tray by the television to your left by the doors if you 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. You could email them to myself, the budget and finance committee clerk at brent.jalipa@sfgov.org. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via US Postal Service to our office in City Hall at 1 Doctor Carlton B Goodlett Place Room 244 San Francisco, California 94102. And finally due to our observance of Presidents Day items acted upon today are expected to appear on the board of supervisors agenda of February 24 unless otherwise stated. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you mr. Clerk and so with that let's go to item number one.

[Brent Jalipa (Committee Clerk)]: Yes item number one is an ordinance amending the health and business and tax regulations codes to revise the definition of a mobile food facility permit had definitions for compact mobile food operations mobile support unit and permitted auxiliary conveyance permits to reflect recent amendments to the California retail food code revising existing definitions of various other items to reflect state law definitions in that code and expand the definition of stadium concession to include food facilities and stadiums with a seating capacity of 5,000 or more. Establish annual permit and plan check fees for auxiliary conveyance compact mobile food operation and mobile support unit permits and waive license and permit fees for compact mobile food operations amending the public works code to include a definition for compact mobile food operations and to expand the department of public works street vending authority to include regulation of compact mobile food operations and require that the department to consult with the department of public health and the fire department when issuing rules and regulations that regulate street vendors. Madam Chair.

[Supervisor Connie Chan (Chair)]: Thank you Mr. Clerk. This item was continued from last week due to the substantive amendments and our colleague supervisor filter has been working on this issue for quite some time and would like a continuing conversations with the department and and the mayor's office to support the existing vendors, particularly those that may be utilizing micro kitchen and home kitchen. So with that, it is with her request that we continue this item with dates certain February our next budget and finance committee meeting on February 25 so let' go to public comment on this item.

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

[Supervisor Connie Chan (Chair)]: Seeing no public comments, public comment is now closed. Colleagues, I would like to move this item to continue to our next meeting on February 25. Roll call please.

[Brent Jalipa (Committee Clerk)]: And on that motion that we continue this ordinance to the February 25 meeting of this committee. Vice chair Dorsey. Aye. Dorsey. Aye. Member Soder. Aye. Soder. Aye. Chair Chan. Aye. Chan. We have three ayes.

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

[Brent Jalipa (Committee Clerk)]: Yes. Item number two is a resolution approving and authorizing the director of property on behalf of the San Francisco employees retirement system to execute a lease agreement with Doublewood Investment Inc. As landlord for use of a portion of 111 Pine Street consisting of approximately 47,000 rentable square feet for an initial term of ten years with two five year extension options to renew and twelve months of rent credit with an annual base rent of approximately 2000003% annual increases as efforts to contribute up to approximately 4,700,000.0 in tenant improvement effective upon approval of the resolution and execution of the lease by the director of property and authorizing the director of property to execute any amendments make certain modifications and take certain actions that do not materially increase the obligations nor liabilities to the city do not materially decrease the benefits to the city and are necessary or advisable to effectuate the purposes of the lease agreement for this resolution. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you mister clerk. Vice chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you chair Chan. So as the district six supervisor I've worked to prioritize the city's strategic investments on the Market Street corridor, which includes but isn't limited to the Mid Market neighborhood. And to date, much of this advocacy has been behind the scenes, but we will be announcing a hearing in the next couple of weeks on this very topic. I mention that because when there is a public sector tenant that is leaving Market Street, I want to get informed on if we did everything we could as a city to make sure that we are reflecting both our commitment to a neighborhood that has, I think, especially in recent years, been disproportionately harmed by some of the responses that the city had during the COVID era with shelter in place hotels. I think it's important that we make a commitment to the residents of this neighborhood, and especially in an area where most city employees and city workers are, that we're doing something that's convenient. I have had the opportunity yesterday to meet with the real estate department and the retirement system. And we had a good conversation, but I would actually like to be a little bit better informed. I do think it's important that we be making real estate decisions like this in a way that is thoughtful and strategic from a big picture and rather than having one offs. That's not saying this necessarily that. I just want to get better informed. So I would like to make a motion to continue this to the February 28 meeting.

[Supervisor Connie Chan (Chair)]: So with that, let's go to public comment on this continuance, and then we'll come back to roll call for the motion.

[Brent Jalipa (Committee Clerk)]: Yes if we have any members of the public who wish to address this committee regarding the continuance of this item that was your opportunity. Madam Chair we have no speakers.

[Supervisor Connie Chan (Chair)]: Seeing no public comments on this item now public comment is now closed and so with that a roll call on vice chair Dorsey's motion.

[Brent Jalipa (Committee Clerk)]: And on that motion by vice chair Dorsey that we continue this resolution to the February 25 meeting of this committee vice chair Dorsey. Aye. Dorsey aye member sotter. To execute a first amendment to the office lease for the continued use of office space located at 258 A Lagoon Haunted Boulevard With 2 Lagoon Lc as landlord effective upon approval of the resolution and execution of the amendment by the director of property with an estimated commencement date of 03/01/2026 and terminating on 02/28/2029 at the monthly base rent of approximately 5,000 for a total annual base rent of approximately 58,000 increased by approximately 145 and $148 per month in the second and third years respectively with one three year option to extend and authorizing the director of property to take other actions in respect or with respect to the amendment that the director of property deems to be in the best interest of the city and not materially increase the obligations nor liabilities to the city and not materially decrease the benefits to the city and are necessary or advisable to effectuate the purposes of the amendment or this resolution, and are in compliance with all applicable laws, including the city's charter. Madam Chair.

[Supervisor Connie Chan (Chair)]: Thank you. And we have real estate division here. Oh.

[Lucinda LaCoste (Chief of Staff, SF Public Defender’s Office)]: You also have Lissa McCost, Chief of Staff of the Public Defender's Office, along with Jeff Suze from the Real Estate Division speaking to this item. Thank you. Good morning, Supervisor. Supervisor from Real Estate. Yeah. Surprise. It's me again. Again, Lucinda Lacoste of the Public Defender's Office. So this is speaking to a lease amendment to a property which the public defender has been housed in for over twenty years. Hold on. Let just get make sure this slide okay. And originally our youth defender division, formerly our juvenile division, was in within the site. However, as that division downsized in terms of support, our mental health unit moved into the property about, I believe, in 02/2022. Currently, it houses seven of our mental health employ mental health unit employees. That includes three attorneys, one clerk, a medical social worker, and two investigators as well. The mental health unit, as many of you are familiar with, it provides services for clients who both criminal and civil proceedings, including all stages of involuntary treatment commitment, as well as advocates for clients' best interests in court ordered treatment programs such as assisted outpatient treatment, housing conservatorship, and community based programs. So with that, I'm going to let Jeff speak to the actual terms of the agreement.

[Jeff Su (Real Estate Division, City and County of San Francisco)]: Thank you, Ms. McCuff. Good morning, Chair Chan, Supervisor Dorsey, Supervisor Sauter. So, Real Estate Division, working with the Public Defender's Office, negotiated a three year extension and another option to extend it for an additional three years. We took advantage of the market. Know, current rent is $35 and change per square foot. Market showed it was around $33 $32 We have $29 We've negotiated $29.49 We also have them refreshing the space with paint, carpeting, and they also abated the first month of rent. So, it brings our effective rate down to almost $29 even. It's pretty straightforward but we're happy to answer any questions you have for either myself or miss lacoste.

[Supervisor Connie Chan (Chair)]: 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, right now, 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)]: Thank you. And seeing no public comments, and public comment is now closed. We appreciate all the work that is being done, and we understand that we must allow this continue to so that you have the space. So with that, I would like to make the motion to forward this item to full board with recommendation and a roll call please.

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

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

[Brent Jalipa (Committee Clerk)]: Dorsey aye. Member sauter.

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

[Brent Jalipa (Committee Clerk)]: Sauter aye chair Chan. Aye. Aye. Have three ayes.

[Supervisor Connie Chan (Chair)]: The motion passes.

[Supervisor Denny Sauter]: Thank you.

[Supervisor Connie Chan (Chair)]: Thank you and Mr. Clerk please call item number three.

[Brent Jalipa (Committee Clerk)]: Four madam chair.

[Supervisor Connie Chan (Chair)]: Item number four.

[Brent Jalipa (Committee Clerk)]: Yes item number four is a resolution adopting a fixed two year budgetary cycle for the following city departments airport port and public utilities commission for fiscal years 2026 to 2027 and 2027 to 2028 in defining terms and setting deadlines. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you and then we have the our mayor's budget director sophia kitler here but I'm going to turn this over to vice chair for short while as well.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you. Welcome, Director Kittler. The floor is yours.

[Sophia Kittler (Mayor’s Budget Director)]: Thank you. Good morning. Thank you, Chair Chan, Vice Chair Dorsey, Member Soder. This is a straightforward resolution that we bring forward every two years. As you know, we have a number of enterprise departments that are on fixed two year budgets and then come in with kind of an update on odd years. This year we are proposing, as we usually do, that the Public Utilities Commission, the Airport Commission, and the Port Commission be submitting their two year budgets for introduction on May 1. We may bring forward other regular annual budgets in that May 1 timeline. Historically, we've brought forth, for example, DBI and the MTA with these. But these are the three that we are defining the terms and setting the deadlines for in this annual thing. I am here to answer any questions.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you director kittler I don't have any questions and I don't see anyone on the roster. Why don't we open this up to public comment?

[Supervisor Connie Chan (Chair)]: Delightful.

[Brent Jalipa (Committee Clerk)]: Yes we're now opening public comment for this item number four if we have any members of the public who wish to address this committee. Mr. Vice Chair we have no speakers.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Clark the public comment is now closed and I would like to make a motion to send this item to the full board with our positive recommendation.

[Brent Jalipa (Committee Clerk)]: And on that motion to refer this resolution to the full board with recommendation vice chair Dorsey aye Dorsey aye member sotter aye sotter aye chair Chan Chan absent we have two eyes with chair Chan absent.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you mister clerk the motion passes. Thank you mister clerk would you please call item number five.

[Brent Jalipa (Committee Clerk)]: Yes item number five is an ordinance appropriating approximately 311,000 from the general reserve to the municipal transportation agency to support free one hour parking in the Port Smith Square parking garage from February 7 through 03/07/2026 and transit fares for the lunar new year parade on 03/07/2026 of fiscal year 2025 to 2026. Mr. Thank Vice

[Supervisor Matt Dorsey (Vice Chair)]: you, Mr. Clerk. Supervisor Slaughter.

[Supervisor Denny Sauter]: Thank you, Supervisor Dorsey. Before our presentation, just want to appreciate my excitement for this. We had a great community kickoff the other week to celebrate this at Portsmouth Square Garage. You'll note that this year we're looking at one hour free parking rather than two, kind of reflecting the moment we are with our budget. But also very excited about the one day of free muni. The hope here is to just make it very clear that we want everyone to celebrate Lunar New Year, Chinese New Year. And of course, as the District three supervisor, we want a lot of those celebrations to happen in Chinatown, and I know they will. And I think this will make it much more accessible. So look forward to supporting this. Thank you.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, Supervisor Sauter. We're going to hear from Robert Icardi, the off street manager from the parking and curb management from the San Francisco's municipal transportation agency, and then we'll hear from the BLA. Mr. ICarthy, the floor is yours.

[Robert Icardi (Off-Street Parking Manager, SFMTA)]: Good morning, committee members. Robert iCarthy, off street parking. So, as we alluded to earlier, in the past we did two hours, but this year we're proposing a one hour free parking, and in the heart of Chinatown for Portsmouth Square Garage specifically. And the dates are actually February 8 to March 8. I think there was a little bit of mistake there. But weekends, it's open till midnight, and during the week it's open till twelve starting at five a. M. And, it's really beneficial for the community. And, we've seen uptake in the last four or five years when we implemented this program in just volume of the garage and spills out into the local community. And, it's very simple to use. It's no issue for the end user. We made our system very robust and user friendly. Essentially, anyone can pull a ticket, and the system will not charge you until the sixty first minute, allowing patrons of the garage to go out and venture out to other restaurants or merchants within Chinatown or nearby. And then, they proceed to come back to the garage, continue to any pay station to pay via cash or credit card or simply scan their phone with ticket as you see in the slide here where they can just use our mobile pay option and scan using Apple Pay or Google Pay and then proceed right to the exit. And that's pretty much, that's it for the garage. Very straightforward for you. Any questions?

[Supervisor Matt Dorsey (Vice Chair)]: No. Thank you, Mr. Cardi. Why don't we hear from the BLA?

[Nick Menard (Budget and Legislative Analyst)]: Morning. Nick Menard from the Budget Legislative Analyst Office. Item five is an appropriation ordinance that would appropriate about $311,000 from the General Reserve to MTA to fund one month of one hour of free parking through March 15 at the Portman Square garage excuse me, it's through March 8 at the Portman Square Garage, and then one day of free transit on March 7 around the Lunar New Year celebration. This money will basically fund the cost of that lost revenue to MTA. And any money you take from the general reserve has to be replenished next year. So it's basically another cut you have to make to the general fund budget next year. The general reserve right now has about $160,000,000 in it. So, this is $300,000 out of that reserve. So, approval of this is a policy matter for the board.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, Mr. Menard. It's my understanding we have just minor amendments to change the effective dates in the long title. Page one, line five, changing February 7 to February 8, and March 7 to March 8. I'll read those into the record, when I make a motion, I will reference that. Seeing no one on the roster with further questions I think I appreciate your presentation why don' we open this up for public comment.

[Brent Jalipa (Committee Clerk)]: Yes we' opening public comment for this item number five if we have any members of the public who wish to address this committee. Mr. Vice Chair we have no speakers.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Clerk the public comment is now closed and I would like to make a motion to amend the the appropriation to the amendment that I just stated read into the record and then we can do this with one motion I believe send this out to the board with our positive recommendation.

[Brent Jalipa (Committee Clerk)]: And on that motion that we amend this ordinance to change the effective dates from February 7 through March 7 to February 8 through March 8 and that we refer this ordinance to the full board with recommendation as amended vice chair Dorsey aye member sotter chair Chan Chan absent we have two eyes with one absent with chair Chan absent.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Clerk the motion passes. Mr. Clerk please call item six.

[Brent Jalipa (Committee Clerk)]: Item six is a resolution approving the tenth amendment to a contract with sfmta twenty sixteen-seventeen dash seventeen paratransit broker and operating agreement between the city and county acting by and through the municipal transportation agency and trans dev services inc to provide paratransit services to extend the term by two years from 06/30/2026 for a total term from 07/01/2016 through 06/30/2028 and to increase the amount by approximately 31,000,000 for a total not to exceed amount of approximately $339,000,000 and to authorize the mta to enter into any amendments or modifications to the agreement had to not materially increase the obligations nor liabilities to the city that are necessary to effectuate the purposes of the agreement or this resolution. Vice Chair.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Clerk. We have Jonathan Chang paratransit manager from the San Francisco municipal transportation agency as well Mr. Ramos and Ms. McAuliffe are available for questions. Mr. Chang, floor is yours.

[Jonathan Chang (Paratransit Manager, SFMTA)]: Thank you. So, yeah, we're here today to request a two year contract extension to the Paratransit agreement, as well as increasing the contract authority by about $31,000,000 So, for some background, ESET Paratransit is the city's 88 paratransit service, which provides, van and taxi service to seniors and people with disabilities who are unable to use the mini fixed route service. Since its inception, it's been contracted out to a third party vendor. Currently, SFMPA contracts with TransDev, who has operated the broker administrative function since 2000, and has served as the primary service operator since 2014. The current agreement is set to expire in June 2026, and this proposed extension will extend these terms through June 2028. So over the past year, the program has performed exceptionally well, with a 90% overall satisfaction, as well as 95% on time performance. This is a result of ongoing dedication to streamlining our operations, as well as enhancing the customer experience. So with this extension, we will also be incorporating new measures that were identified as part of an agency wide directive to find cost savings with contractors. Funding for paratransit comes from a variety of federal, state, and local sources, with the primary source being the Prop L sales tax. SFMTA operating funds account for about 13% of paratransit expenditures. And then, with this extension, in addition to stabilizing program costs, this will allow us to complete several key pilots and technology upgrades, identify new revenue opportunities, as well as operational efficiencies that we hope to incorporate in the next request for proposal for paratransit services. This RFP is planned to be issued around winter or 2027. And with that, I yield the floor. And I'm here for any questions. Thank you.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, Mr. Chang. Supervisor Sauter.

[Supervisor Denny Sauter]: Thank you. Just want to if you're able to answer this, I know it might be a bigger topic, but just some of the reduction in use in the last few years, particularly I think around the group trips, and your thoughts on why that might be happening, and then what we can do to turn that around, or just make the service more accessible.

[Jonathan Chang (Paratransit Manager, SFMTA)]: Yeah. So the reduction in the group van trips, I think, has been largely attributed to kind of recovery from the COVID pandemic. When the COVID pandemic hit, these are group sites where seniors congregate, get that received day programs. So they were the first locations to actually close, and they were actually the last locations to reopen fully. So we are seeing kind of higher growth compared to other services, but that growth has started more recently. So we believe that as more seniors and people with disabilities feel more comfortable attending services in a group environment, that that service will continue to increase. We actually are predicting 10% increases for the next two years terms of that service. And in terms of making sure that seniors have information and knowledge about the services we provide, we do outreaches to the community. We also have a mobility management team, which seniors and people with disabilities can call if they're unable to, if they don't know information about transportation in the city, and be connected to services, not only that SFMT provides, but as well as other private entities that serve seniors and people with disabilities.

[Supervisor Denny Sauter]: Okay, thanks for that information. I'm glad to see it

[Supervisor Matt Dorsey (Vice Chair)]: starting to pick back up. Thank you. You, Supervisor Sauter. And let's hear from the budget and legislative analyst.

[Nick Menard (Budget and Legislative Analyst)]: Item six is a resolution that approves an amendment to MTA's contract with TransDev. TransDev provides operates the power transit program for MTA. They provide some transportation directly and then also manage subcontractors who provide some of the transportation for some of the programs within the paratransit program. We show the ridership on page 15. You can see it has not recovered to its pre COVID level, but has been growing about 6% a year for the past three fiscal years. We also looked at the performance of the contract. There are various measures in terms of how long people wait on the phone, if they are picked up on time, how safe the rides are. And the firm is meeting the performance objectives of the agreement. We also show the budget on page 17 of the report. You can see this is about a $30,000,000 a year contract. About twothree of that is funded by local funds, including the MTA Operating Fund. I know one of the purposes of this short term extension is to identify cost saving measures to make the program more affordable, and then also to look at billing Medi Cal, because that is an available revenue source for at least some of the trips. That has not been done in the past, but could be done in the future. And that would make the program more affordable from a local level. So we do recommend approval of item six.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, Mr. Menard. Quick just question about the two year extension. Was there a cost associated with extending it? Two years? It was a ten year bid, but that we extended it for an extra two years?

[Nick Menard (Budget and Legislative Analyst)]: Yeah. So it's about a $30,000,000 a year program that's funded by MTA. So the extension of the agreement is basically cost that much. The extension does lower some of the management fees that TransDev would get as part of the contract. And also, were able to, I believe, consolidate some office space and create some savings within the contract as well. I think there's probably additional opportunity to reduce the cost of the program, given the ridership trends. And I know MTA has identified a number of areas that they want to look at over the next two years that would then inform a procurement for a longer term contract.

[Supervisor Matt Dorsey (Vice Chair)]: Okay. And this is maybe for either or both of you to just help me understand a little bit about whether and to what extent we're adequately leveraging Medi Cal reimbursements.

[Jonathan Chang (Paratransit Manager, SFMTA)]: Yeah. This is a we've always been interested in this. We had been awaiting there was possible there were the last two years, there was statewide legislation that would help streamline the process and to reduce administrative burden. However, those bills didn't pass on the state level. So with this extension, there are local agencies that have been able to successfully get Medi Cal reimbursement for medical based trips. So, with this two year extension, it allows us to do a little bit more research to kind of establish a full scope of work, as well as to identify software that we may need to acquire in order to facilitate the eligibility, trip management, and billing in order to receive Medi Cal reimbursement.

[Supervisor Matt Dorsey (Vice Chair)]: Okay. Seeing no one else on the roster with questions, thank you, Mr. Chang. Thank you, Mr. Bernard. We invite up a public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes for opening public comment for this item six if we have any members of the public who wish to address this committee.

[Mark Leeson (Teamsters Joint Council 7)]: Good morning supervisors mark leeson with teamsters joint council seven our affiliate local teamsters eight fifty three the members of that local are the paratransit drivers and we' here to support the continuation of the contract and amendment as presented today we look forward to continuing to be able to provide a very vital service to the community thank you.

[Brent Jalipa (Committee Clerk)]: Thank you much mark lisa. With that that completes our queue.

[Supervisor Connie Chan (Chair)]: Seeing no more public comments public comment is now closed thank you so much vice Chair Dorsey, for your work on this and for helping me continue to this committee. And with that, colleagues, would and also, I appreciate the paratransit, really, work. And I think that this is more critical than ever at the moment. I do think that let's kind of check out how we can bring back the ridership before pandemic level and continue to consistently improve the operation. It has been sort of an issue about some time from time to time, I believe, when we hear from senior centers about scheduling for that and including language access for scheduling effort for the paratransit rights. But with that let' I will move this item to full board with recommendation and a roll call please.

[Brent Jalipa (Committee Clerk)]: And on that motion that we refer this resolution to the full board with recommendation vice chair dorsey aye member sotter sotter aye chair Chan aye we have three ayes.

[Supervisor Connie Chan (Chair)]: The motion passes and my apologies colleagues I believe you have voted on item five and if I may resend the vote for item five to allow me to cast the votes in support. Do we need to call the item, Mr. Clark? Or can I resend the votes for item five?

[Brent Jalipa (Committee Clerk)]: Actually, let me go ahead and just to be safe, me read the title again madam chair. Item number five is the ordinance appropriating approximately 311,000 from the general reserve to the mta in support for the free one hour parking at Portsmouth Square Parking Garage. And, yes, Madam Chair.

[Supervisor Connie Chan (Chair)]: Thank you, and my apologies, and thank you, colleagues. And I would like to resend the vote on item five, and roll call, please.

[Brent Jalipa (Committee Clerk)]: And on the motion to rescind the last vote on this item five, Vice Chair Dorsey. Aye. Dorsey, aye. Member Soder? Aye. Soder, aye. Chair Chan? Aye. Chan, aye. We have three ayes.

[Supervisor Connie Chan (Chair)]: Thank you. And the motion passes. And colleagues, I believe it was probably vice chair Dorsey's motion to move it with recommendation to move forward and I'm going to say that that's the motion by vice chair Dorsey and the roll call please.

[Brent Jalipa (Committee Clerk)]: And on that motion that we refer this ordinance to the full board with recommendation as amended. Vice chair Dorsey and Dorsey, aye. Member Soder. Aye. Chan. Aye. Chan aye. We have three ayes.

[Supervisor Connie Chan (Chair)]: The motion passes. Thank you colleagues for that and let's go to item number seven.

[Brent Jalipa (Committee Clerk)]: Yes item number seven is an ordinance appropriating 18,500,000.0 of fund balance from the port harbor fund to the port for stabilization and disposal of dry docks and other shipyard improvements and safety measures in fiscal year 2025 to 2026. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you. And we have our Port of San Francisco here.

[Megan Wallace (Interim Deputy Director of Finance & Administration, Port of San Francisco)]: Thank you so much, supervisors. Good morning. I'm Megan Wallace, the Port's Interim Deputy Director of Finance and Administration. This item today is requesting your approval of an ordinance of a supplemental appropriation of $18,500,000 for stabilization, removal, and disposal of the ports dry docks. I was actually here just recently on January 28 with regard to an emergency declaration and seeking approval to move forward with an emergency contract for stabilization of Dry Dock Number 2. You might recall, we do have these two dry docks at Pier 68. And the one on your right, easternmost in the waterfront, is Dry Dock Number 2. It's currently unstable, taking on water. However, this supplemental, in addition to supporting initial stabilization of the dry dock, will also allow us to begin our work in pursuing removal and disposal of both Dry Dock Number 2 and the Eureka. Just again, for illustrative purposes, you can see that in November, Dry Dock Number 2 was taking on water. It really pushed us to move forward with an emergency declaration. The Port Commission had previously authorized staff to move forward with a supplemental appropriation, so we quickly moved to move that legislation forward. And is what is before you today. I think just since the time that this committee and now the board of supervisors has approved our emergency declaration, we've also been to the capital planning committee. Just this last Monday they approved moving forward with this ordinance. And, again, this will appropriate $18,500,000 that on top of pre existing 1,500,000.0 of settlement funds will give us $20,000,000 in the current fiscal year to begin our work. However, when the port brings our budget forward for fiscal year twenty twenty six-twenty seven, we'll be supplementing that budget with an additional 41,200,000.0. So we will have $61,200,000 to really complete the full scope of stabilization, removal, and disposal. With that, I'm happy to take your questions, and I appreciate your support through this process.

[Supervisor Connie Chan (Chair)]: Thank you. This is along with the emergency repair that was that came to this body, I think, believe, two weeks ago?

[Megan Wallace (Interim Deputy Director of Finance & Administration, Port of San Francisco)]: That's correct.

[Supervisor Connie Chan (Chair)]: And then now you're coming for the funding that was going to be that was actually allocated for it and to now for appropriation. So we appreciate the work. We do hope that the work commence soon, if not already. And let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes, we're opening public comment for this item. Sorry.

[Supervisor Connie Chan (Chair)]: Do we need a BLA report for this item?

[Nick Menard (Budget and Legislative Analyst)]: I'll just say that there's $190,000,000 in the Harper fund. This appropriation of $18,500,000 would reduce that to about $170,000,000 and is part of a larger project to dispose of the dry docks that will also be paid for by the Harbor Fund. We recommend approval of item seven.

[Supervisor Connie Chan (Chair)]: Thank you and my apologies for interrupting you Mr. Clark while you were calling for public comments sorry and please go ahead.

[Brent Jalipa (Committee Clerk)]: Yes we are 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)]: 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 a motion that we refer this ordinance to the full board with the recommendation vice chair Dorsey. Aye. Dorsey. Aye. Member Soder. Aye. Sauter. Aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

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

[Supervisor Connie Chan (Chair)]: The motion passes. Thank you. Mister clerk please call item number eight.

[Brent Jalipa (Committee Clerk)]: Item number eight is a resolution retroactively approving amendment number 50 to the treasure island land and structures master lease between the treasure island development authority and the united states navy to extend the term for one year to commence 12/01/2025 for a total term of 11/19/1998 through 11/30/2026 and to authorize the treasure island director to execute and enter into amendments to the lease that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes and intent of this resolution. Madam chair.

[Supervisor Connie Chan (Chair)]: Thank you and today we have treasure island development authority.

[Peter Somerville (Treasure Island Development Authority)]: Good morning. Thank you, Chair Chan, Vice Chair Dorsey, Supervisor Salter. Peter Somerville with the Treasure Island Development Authority. In front of you today is an amendment to the Land and Structures Master Lease between Titan and the Navy to extend the term for one year through 11/30/2026, with no other changes to the lease terms and conditions. A question that's asked of this committee every year is, why do we have to mend this lease annually? The one year lease is a condition of the Navy's overall real estate program. We do ask them every year if we could have a longer lease or just one extension until the lease sunsets. However, we do need to come back every year based on their processes. The lease premises consists of two buildings under Titus commercial portfolio, the Department of Public Works on Island Corporation Yard, and the multiuse recreational path along the northern edge of the island. I know that Supervisor Dorsey and his dog are familiar with that path. We do acknowledge that this is a retroactive request for approval this year. That is solely the fault of staff. We lost track of the timing on our approvals. That is certainly the exception, not the rule, with our administration of this lease. So we seek the committee's understanding on that element of the item this year. Again, the authority requests approval of the item. That completes my presentation. I'm available for any questions.

[Supervisor Connie Chan (Chair)]: Of course. Thank you. Vice Chair Dorsey.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, Chair Chan. I would say that just having worked in the city attorney's office and seen for many years, there's a level of complexity that goes into working with the military branches. I think that played out in the Presidio, too. So I understand that I'm fine with the retroactivity of it. And I just want to express my appreciation to Tyta for all the work that you're doing. There's really a lot of excitement around Treasure Island, and I'm really proud of the work you're doing.

[Brent Jalipa (Committee Clerk)]: Thank you.

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

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

[Supervisor Connie Chan (Chair)]: Seeing no public comments public comment is now closed. Vice Chair Dorsey what is your will?

[Supervisor Matt Dorsey (Vice Chair)]: I would like to make a motion to send this item out to the full board with our positive recommendation.

[Supervisor Connie Chan (Chair)]: Roll call please.

[Brent Jalipa (Committee Clerk)]: And on that motion by Vice Chair Dorsey that we refer this resolution to the full board with recommendation vice chair Dorsey. Aye. Dorsey. Aye. Member Sauter. Aye. Sauter. Aye. Chair Chan. Aye. Chan. Aye. We have three ayes.

[Supervisor Connie Chan (Chair)]: The motion passes. Thank you. And mister clerk, please call item number nine.

[Brent Jalipa (Committee Clerk)]: Item number nine is a resolution approving amendment number two between the city acting by and through the office of contract administration and violent for blood and blood products for the department of public health extending the contract by five years for a total term of ten years from 10/01/2021 through 09/30/2031 and increasing the contract amount by approximately 18,500,000.0 for a total not to exceed amount of approximately 28,200,000.0 effective upon approval of this resolution and to authorize the office of contract administration to enter into amendments or modifications to the contract that did not materially increase the obligations nor liability to the city and are necessary to effectuate the purposes of the contract over this resolution. Madam chair.

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

[Sophie Hayward (Office of the City Administrator/OCA)]: Good morning, Chair Chan, Supervisors Dorsey and Sotter. My name is Sophie Hayward, and I'm here from the Office of the City Administrator on behalf of the Office of Contract Administration. And I am here to seek a recommendation of approval to amend the existing contract with Vitalant for blood and blood products. The amendment we seek would increase the not to exceed amount to 28,200,000 that's an increase of $18,300,000 and to extend the term by five years to September 2031. This contract provides critical blood and blood products to allow Zuckerberg SF General to provide lifesaving care to patients. But you may wonder, as I did, what are blood products? Blood products are the individual components of blood that are separated to target specific conditions. So some examples of those are red blood cells to treat anemia and blood loss, platelets to help with clotting disorders, and plasma, which helps patients with liver disease, burns, and various kinds of trauma. As you know very well, SF General is the city's only level one trauma center, and therefore it's critical to have access to blood products to meet emergency needs. Blood products have a limited shelf life, so the geographic proximity of the supplier is actually critical to ensure shipments within one hour when they're needed. OCA originally entered into this contract with Vitalant executed in October 2024 and extended the contract through September. OCA anticipates that based on the average monthly spend, the proposed amendment is necessary to ensure continued access to the critical supplies. That concludes my presentation. I'm joined today by Xuan Lu from OCA and Sabrina Robinson from DPH for any questions. Thank you.

[Nick Menard (Budget and Legislative Analyst)]: Item nine is a resolution that approves an amendment to the city's contract with Vitalant. The new value of the contract is $28,200,000 This was procured on a sole source basis because they are the only blood product provider that can get to General Hospital within an hour. They're based in Brisbane. So this is an extension through September 2031. We evaluated the performance of the contractor. The contract requires that they meet certain delivery times. They are meeting those requirements. And we summarize that on page 27 of our report. DPH spends about $2,500,000 a year on these products. And so that's the basis for the $28,200,000 not to exceed amount of the contract. The prices are similar to what Santa Clara County pays for buying blood from the Red Cross, though they are a bigger hospital system than San Francisco and are able to get lower unit prices. But we do recommend approval of item nine.

[Supervisor Connie Chan (Chair)]: Thank you. 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 we have any members of the public who wish to address this committee regarding this item number nine. Now is your opportunity. Madam Chair, have no speakers.

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

[Brent Jalipa (Committee Clerk)]: And on that motion that we refer this resolution to the full board with recommendation Vice Chair Dorsey. Dorsey, aye. Member Sauter? Sauter aye. Chair Chan.

[Supervisor Connie Chan (Chair)]: Aye.

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

[Supervisor Connie Chan (Chair)]: The motion passes. Mr. Clerk please call item number 10.

[Brent Jalipa (Committee Clerk)]: Yes item number 10 is a resolution retroactively authorizing the environment department to accept and expend a grant award from tech clean California in the amount of approximately 299,000 for the period beginning on or about January 2026 through 03/31/2027 to provide heat pump water heaters as part of renovation and repair projects through low income investment funds child care facilities fund and to expand the reach of electrification training to organizations and contractors working in housing rehabilitation programs and authorizing director of the environment department to execute the grant agreement and enter into amendments or modifications to the grant agreement that are necessary to effectuate the purpose of the grant agreement and or this resolution.

[Supervisor Connie Chan (Chair)]: Thank you and we have San Francisco's environment department of environment here.

[Alice Her (Senior Policy Coordinator, SF Department of the Environment)]: Good morning supervisors my name is Alice her senior policy coordinator from the environment department and before I begin I want to recognize Nancy Chan who is from the Low Income Investment Fund, who is the partner for this grant. So, as I stated at the last meeting, San Francisco environment focuses on equitable building electrification for health, sustainability, and a resilient San Francisco. Buildings also comprise a significant portion of the city's emissions at almost 44%. And, the department does not receive significant general fund funds to conduct this work. So, we are always trying to get external funding to expand the city's climate capacity. So, a little bit about the Tech Clean California Quick Start Scaling Grant. This is a state program funded by the California Public Utilities Commission through rate dollars and administered by SoCal Edison. Energy Solutions is the implementer or pass through agency. And what this grant aims to do is test innovative approaches to overcoming market barriers to heat pump space and water heating in underserved communities, again speaking to the department's equity priorities. And the benefits of these pilots are to refine intervention that can potentially be scaled statewide. So, the environment department's project, Clean Air and Repair for Family Child Care, helps establish a model for layering electrification projects on existing rehabilitation programs that are typically like for like replacements, and using a fuel replacement or electrification model instead. So, over '26, the department will partner with the Low Income Investment Fund to provide heat pump water heater installations in up to 30 family child care provider facilities. And just to note, this is a child care model in which the provider offers child care out of their home as part of renovation and repair projects through Lyft's existing child care facilities fund. And the department will incorporate a standard heat pump substitution measure into Lyft's family child care renovation repair and expansion grant program, as well as provide training and risk free installation opportunities to contractors who currently complete like for like appliance replacements. In terms of why this is important, the city has a high priority on families and children. We have all heard of the health impacts of gas appliances in homes, and especially on health conditions such as childhood asthma. So this helps address those childhood health conditions linked to poor air quality caused by gas appliances. It also prepares contractors within the city for regulations that require heat pump water heaters, expanding San Francisco's green workforce, especially in light of local regulations such as the air district rules. And then it ensures underserved communities are not locked out of the benefits of electrification, including improved occupant health and comfort. And finally, as I said before, it piles an electrification layering model that could be applied to other existing rehabilitation programs in alignments with the goal of testing models that can be scaled statewide. So this is just a quick summary slide. The grant amount is for $299,091 The grant term is from January 2026 through 03/31/2027, although I will note that all installations must be completed by 12/31/2026, and all associated fieldwork. And then the term after that, from January to March, will be reporting that must be completed. And that is it. Happy to answer any questions.

[Supervisor Connie Chan (Chair)]: Roughly how many sites would this cover?

[Alice Her (Senior Policy Coordinator, SF Department of the Environment)]: So it's up to 30 child care facilities.

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

[Supervisor Denny Sauter]: Thank you, Chair Chan. Excited about this program. What is the plan to get the word out, making sure you get those applications or I think the installations by the end of the year?

[Alice Her (Senior Policy Coordinator, SF Department of the Environment)]: So you

[Supervisor Denny Sauter]: can move quickly on that, yeah.

[Alice Her (Senior Policy Coordinator, SF Department of the Environment)]: I'll let our implementing program team member, Benny, answer that question.

[Grant Carson (Debt & Capital Markets Specialist, Controller’s Office of Public Finance)]: Yeah. Thanks for the question, supervisor. My name is Benny BENNIE Zink, billing decarbonization coordinator with the department. We had an initial overview and orientation for providers last week, where we had 90 attendees. So we're expecting very high participation and sign up.

[Bennie Zink (Building Decarbonization Coordinator, SF Department of the Environment)]: And we have a follow-up detailed orientation on the twenty third of this month.

[Supervisor Denny Sauter]: Good. Sounds promising. Thank Thank

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

[Brent Jalipa (Committee Clerk)]: Yes we' opening public comment for item number 10 if we have any members of the public who wish to address this committee. Madam chair we have no speakers.

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

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

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

[Brent Jalipa (Committee Clerk)]: Dorsey aye member sotter. Aye. Chair Chan. Aye. Chair aye. Have three ayes.

[Supervisor Connie Chan (Chair)]: The motion passes. Thank you. Mr. Clark could you please call items 11 through 13 together.

[Brent Jalipa (Committee Clerk)]: Yes items 11 through 13 are resolutions approving and authorizing the terms and conditions and authorizing the general manager of the public utilities commission and or director of property to execute purchase and sale agreements and easement deeds with the following for the acquisition of easements for a subservice sewer tunnel under and across portions of certain assessors parcels in San Francisco all three effective on the date of the respective purchase and sale agreements are executed by both parties pursuant to the charter adopting findings that are conveyance is consistent with the general plan and the eight priority policies of the planning code and adopting findings at the purchase and sale agreements furthers a proper public purpose sufficient to meet the administrative codes market value requirements. Item 11 is with Katie o cheng for the acquisition of a 9.2 square foot easement at 491 Gavin Street for a total amount not to exceed 2,500.0. Item number 12 is with Robert tsui and tsui as trustees of the tsui family trust for the acquisition of a 298.2 square foot easement at 495 Gavin Street for a total amount not to exceed 25,000 and item number 13 is with hall et al for the acquisition of a six ninety three foot square easement at 499 Gavin Street for a total amount that exceed 32,000. Madam Chair.

[Sophia Kittler (Mayor’s Budget Director)]: Thank you. And today we have SPUC here.

[Dina Brazil (Right of Way Manager, SFPUC Infrastructure Division)]: Hi. My name is Dina Brazil. I'm the right of way manager for the infrastructure division at the SPUC. I'm here today to seek your approval of three purchase and sale agreements for the acquisition of easements for a subsurface sewer tunnel for the Lower Alameni area stormwater improvements project. First, a bit about the project itself. The Lower Alameni area lies within the Isleas Creek Basin, which is historically flooded during large storms. Development in the area has exacerbated the flooding problem, as you can see in this photo here. Our existing stormwater system doesn't have adequate collection capacity to meet the needs of the area, so we developed the project to address our SSIP level of service goals of managing storm water during a five year, three hour storm. The project complies with a 2021 California Regional Water Quality Control Board cleanup and abatement order requiring remedial action on the part of the city to abate threats of sewer overflows in certain low lying areas of San Francisco, including the Lower Alameni Area. The project proposes to construct the Alameni auxiliary sewer depicted here in red. The sewer would consist of approximately 6,350 linear feet of a 10 foot diameter tunnel running along Alameni Boulevard and Gavin Street, and turning north at Bay Shore to Boutwell. At Boutwell, it turns into a box sewer for the remaining 1,000 linear feet, where it ultimately connects to the industrial sewer at Barn Belt. The primary benefited area is shown here in green. The project would also provide ancillary benefits to the Cayuga area, shown in blue. For the most part, the Alimini auxiliary sewer manages to avoid private property, staying mostly within public city streets and Caltrans right of way. The tunnel does, however, cross private property at one location at the western end of Gavin Street. As you see here, the tunnel would cross beneath the driveways of three residential properties. It's important to note that the tunnel will be installed by horizontal directional drilling, which is a trenchless method with minimal impact. The tunnel would be over 50 feet deep at this location, and there would be no change to how the property owners would use their property. While the SFPUC wouldn't require the use of the surface of the property, we do need a property right in order to install the pipeline on the properties. Our engineers determined that we require a 25 foot wide right of way to operate, maintain, and protect the tunnel. We made offers to each of the property owners and successfully negotiated purchase and sales agreements with each, which have all been signed by the sellers. The first easement to be acquired, shown here on 499 Gavin Street, is the largest of the three. The total square footage of the easement would be 693 square feet, and the negotiated purchase price is $32,000. The next, at $4.09 5 Gavin Street, would be approximately 298 square feet. We negotiated a price of $25,000 for this easement. And finally, the smallest of the three is at 491 Gavin Street, and it would be about nine square feet. The purchase price would be $2,500 for this easement. On 03/25/2025, the San Francisco Planning Department determined the project is categorically exempt from CEQA. And on 09/10/2025, the Planning Department filed a notice of exemption at the county clerk's office, which was subsequently posted at the State Clearinghouse on September 11. And now I'm happy to answer any questions you might have about the easements or the project.

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

[Supervisor Matt Dorsey (Vice Chair)]: Thank you, Chair Chan. Just for my edification, a five year three hour storm is a storm that we could expect we could reasonably expect every five years that lasts for three hours.

[Dina Brazil (Right of Way Manager, SFPUC Infrastructure Division)]: Our project manager, Suzanne Huang, is the one that's well versed in that topic. Good

[Supervisor Connie Chan (Chair)]: morning, Suzanne Huang, project manager. Five year, three hour storm translate to about 1.3 inches of rainfall. And that is the level of service storm that SFPUC used for our design storm.

[Supervisor Matt Dorsey (Vice Chair)]: Okay. The framing of it as a year event, is that my understanding of this, just because I recall these back in my city attorney days when we had litigation and claims around flooding events, sometimes there's a reference to what the years mean. Is it a five a five year storm is something that we expect every five years?

[Supervisor Connie Chan (Chair)]: On average. Okay.

[Brent Jalipa (Committee Clerk)]: Yeah. Okay. Thanks.

[Supervisor Connie Chan (Chair)]: Thank you. Seeing no names on the roster, let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes, we're opening public comment for these items 11 through 13. If we have any members of the public who wish to address this committee. Madam chair we have no speakers.

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

[Brent Jalipa (Committee Clerk)]: And on that motion that we refer all three resolutions to the full board with recommendation vice chair Dorsey. Aye. Dorsey aye member sotter. Aye chair Chan. Aye. Aye we have three ayes.

[Supervisor Connie Chan (Chair)]: A motion passes. I' going to move this caval to vice chair Dorsey and if I may be excused

[Sophia Kittler (Mayor’s Budget Director)]: for the

[Supervisor Connie Chan (Chair)]: remaining of the meeting I will have you call the remaining of the other items.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you chair Chan I would like to make a motion to excuse chair Chan.

[Brent Jalipa (Committee Clerk)]: And on a motion we excuse chair Chan for the balance of this meeting vice chair Dorsey aye and Dorsey aye member Sauter aye mister vice chair we have two ayes

[Supervisor Matt Dorsey (Vice Chair)]: thank you mister clerk the motion passes mister clerk could you please call item number 141415,

[Brent Jalipa (Committee Clerk)]: Mr.

[Supervisor Matt Dorsey (Vice Chair)]: Vice Chair? 1415, I apologize.

[Brent Jalipa (Committee Clerk)]: Item numbers fourteen and fifteen are resolutions reauthorizing the execution and delivery of tax exempt lease revenue commercial paper certificates of participation and taxable lease revenue commercial paper certificates of participation to finance the cost of the acquisition construction and rehabilitation of capital improvements and capital equipment approved by the board of supervisors and the mayor on offering memorandum dealer agreements and certain other related financing documents and authorizing other related actions. Item 14 reauthorizes the execution and delivery of tax exempt lease revenue commercial paper certificates of participation series one and two, and taxable lease revenue commercial paper certificates of participation series one t and two t, in an aggregate principal amount not to exceed 150,000,000, authorizing the delivery of an alternate credit facility in the total stated amount of $163,500,000 and approving and authorizing the execution of a third supplement to trust agreement, a third amendment to site lease, a third amendment to sublease, a letter of credit and reimbursement agreement, and a fee agreement. Item number 15 reauthorizes the execution and delivery of tax exempt lease revenue commercial paper certificates of participation series three and four and taxable lease revenue commercial paper certificates participation series three t and four t, and an aggregate principal amount not to exceed 100,000,000, authorizing the maintenance of a liquidity facility in the total stated amount of 109,000,000, and approving and authorizing the execution of a second supplement to trust agreement, a third amendment to site lease, a third amendment to sublease, an amended and restated revolving credit agreement, a revolving bank certificate, and an amended and restated fee agreement. Vice Chair.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Clerk we have Mr. Grant Carson from the debt capital market specialist of the controller's office of public finance. Mr. Carson the floor is yours.

[Grant Carson (Debt & Capital Markets Specialist, Controller’s Office of Public Finance)]: Good morning supervisors pleasure to be speaking with you here today. As mentioned the presentation covers item fourteen and fifteen on the agenda two resolutions which if approved would reauthorize the city's existing general fund commercial paper program not to exceed principal amount $250,000,000 the resolutions would also approve two new bank credit facilities supporting the program. The city' general fund commercial paper program was in 2009 and has since been expanded and reauthorized several times. For a brief background commercial paper notes are short term debt instruments and the city primarily uses this program to provide bridge financing for projects authorized for long term certificates of participation, or COP, financing. Duration for commercial paper notes ranges from one to two seventy days. Interest begins accruing on the issuance date, and then then through the maturity date whereupon the principal and accrued interest can be rolled or refinanced into new notes essentially allowing for balances to be rolled forward until they can be refunded by a long term COP issuance or paid down directly by the city. Like most other municipal and corporate commercial paper programs, the city's program is supported by bank credit facilities which provide backstop liquidity to ensure that notes can be repaid in the case of severe market disturbance when new notes can't be remarketed. Although, I'll note, to date, the city has never had to draw on its credit facilities. And then, on this page, we have the current existing bank facility supporting the program. Series one and two is supported by a $150,000,000 revolving credit agreement, or RCA with Wells Fargo which expires in March. Series three and four is supported by a 100,000,000 RCA with BMO bank which expires in April. Given that both these facilities are expiring in the 2025 the office of public finance conduct a competitive rfp process to replace the two facilities. On the left we have results for series one and two five responses were received and TD securities was selected as the top scoring firm based on a number of factors including the bank's credit ratings experience and its proposed fee. The proposed agreement for Series I and II is $150,000,000 letter of credit, or LOC, facility with a term of three years. For Series III and IV, also five responses were received, and BMO Bank was selected as a top scoring firm for similar factors, as I already described, for Series I and II. This would be a 100,000,000 RCA facility also with a term of three years. And then just closing on the timeline before you today at budget and finance on February 11 assuming a positive recommendation the full board could consider these resolutions its February 24 meeting if approved we could then achieve financial close on the new facility agreements in early March. Thank you for your time happy to answer any questions you may have.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Carson we''ll hear from the budget legislative analyst.

[Nick Menard (Budget and Legislative Analyst)]: Items fourteen and fifteen are two resolutions that reauthorize the city''s commercial paper program One resolution authorizes an agreement with BMO and one with TD, two banks that scored the highest on an RFP process that was administered by OPF. In total, they'll provide the city with about $250,000,000 of short term credit. Each agreement would have a duration of three years. And the city's going to incur costs of about $750,000 to get the agreements in place, and then annual costs of about $1,600,000 to maintain access to that borrowing capacity. We show the projects that are currently accessing the commercial paper on page 37 of our report and we recommend approval of item fourteen and fifteen.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Menard and thank you Mr. Carson I don' have any questions and I don' see anyone on the roster. Mr. Clerk we invite a public comment.

[Brent Jalipa (Committee Clerk)]: Yes we' now opening public comment for these items fourteen and fifteen if we have any members of the public who wish to address this committee. Mr. Vice Chair we have no speakers.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you Mr. Clerk public comment on these items is now closed and I would like to make a motion to send items fourteen and fifteen to the full board with our positive recommendation.

[Brent Jalipa (Committee Clerk)]: And on that motion that we refer both resolutions of the full board with recommendation vice chair dorsey aye. And dorsey aye member sotter aye. Mr. Vice chair we have two ayes with chair Chan excused.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you mister clerk the motions passed. Mister clerk do we have any further items before us today.

[Brent Jalipa (Committee Clerk)]: Mister vice chair that concludes our business.

[Supervisor Matt Dorsey (Vice Chair)]: Thank you everyone we are adjourned.