San Francisco Government SmartTranscripts:

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Morning. The meeting will come to order. Welcome to the 03/25/2026 meeting of the Budget and Finance Committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Supervisor Matt Dorsey and Member Supervisor Danny Souter. Our clerk is Brent Haliba. I would like to thank Jamie Everturey from SFGOTV for broadcasting this meeting. Mr. Clerk, do you have any announcement?

[Brent Jalipa (Committee Clerk)]: Thank you, Madam Chair. Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. Should you have any documents to be included as part of the file they should be submitted to myself the clerk public comment will be taken on each item on this agenda when your item of interest comes up in 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 email them to myself, the budget finance committee clerk, @brent.jalipaatsfgov.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 U. S. Postal Service to our office in City Hall at 1 Doctor Carlton B Good Place Room 244 San Francisco California 94102 and finally due to our spring legislative recess items acted upon today are expected to appear on the board of supervisors agenda of April 7 unless otherwise stated. Madam Chair.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you Mr. Clerk and before we call item number one I would like to remind everyone that we have budget and legislative analyst report from items one through seven on today' agenda and for those items we will have the department presentation first followed by the budget legislative analyst report then we will take questions and then go to public comment so with that Mr. Clerk please call item number one.

[Brent Jalipa (Committee Clerk)]: Yes item number one is a resolution approving modification number three to a contract with hallmark aviation services l p for airport information and guest assistance services to extend the term for one year from 06/30/2026 for a total term of 07/01/2024 through 06/30/2027 to increase the contract amount by approximately $10,400,000 for a new contract amount not to exceed approximately $30,400,000 pursuant to the charter. Madam Chair.

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

[Deanna Volak (San Francisco International Airport)]: Good morning. Deanna Volak with SFO. The proposed resolution would approve the third modification to an existing contract between the airport and Hallmark to exercise the second of three one year options to extend the contract from 07/01/2024 through 06/30/2027, and increase the contract not to exceed amount by 10,400,000.0 for airport information and guest services. The original contract was the result of a competitive request for proposals process. This modification will allow Hallmark and its LBE subcontractor Polaris to continue to perform essential guest service work at SFO, such as line management in the international arrivals area, way finding, and information desk operations. In addition, this modification expands staffing to support guest navigation during our major construction projects, including Terminal 3 West modernization, and accommodate anticipated increases in passenger traffic. In 2025, staff assisted 2,700,000 guests at 16 information desks. The contract employs individuals with diverse backgrounds, nearly all being bilingual at a minimum, and a reflection of San Francisco's welcoming spirit. The BLA has recommended approval, and I am here with my colleague from guest services to answer any questions.

[Christina Malamut (Budget and Legislative Analyst)]: Good morning, supervisors. Christina Malamut from the Budget and Legislative Analyst Office. The proposed resolution would approve an amendment to an existing contract between the airport and Hallmark Aviation Services to extend the term by one year through June 2027 and increase the not to exceed amount by approximately $10,400,000 for a new total of approximately 30,400,000.0. There's two components of services contract. Hallmark assists international arrivals passengers through federal inspection services. They provide line management, language interpretation services. And then Polaris, an LBE subcontractor, staffs the airport information desks. As the airport noted, the airport is expanding staffing under this contract to assist with wayfinding during construction and also to accommodate increases in passenger traffic. Exhibit one on page five of our report shows the basis of the not to exceed amount. The annual budget in the extension year is 10,400,000.0. That reflects the increases in staffing. It also reflects increases in the hourly rates and benefits for staff. It's funded by airport operating revenues, and we recommend approval of item one.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. And I'm just out of curiosity and trying to understand the calculation of contingency budget for the 22.6%. And I'm just kind of curious how does the 22.6% come about?

[Deanna Volak (San Francisco International Airport)]: Sure. I'd like to call my colleague Christopher Birch, can explain as the Director of Guest Services.

[Christopher Birch (Director of Guest Services, SFO)]: Thank you. Good morning, Supervisors. Chris director of guest experience and I oversee the contract could you repeat the question sorry.

[Supervisor Danny Sauter (Member)]: Just it seems if I understand it correctly maybe I' inaccurate in my understanding and please correct me it seems like there' a for this dollar amount that you' coming for a new contract for this amendment that includes a 22.6% of contingency while it' funded by the airport I'm curious how does the calculation of 22.6% of contingency come about?

[Christopher Birch (Director of Guest Services, SFO)]: So that's our projection for a number of scope elements that we think could be activated during the contract year. We have a brand new airport integrated operations center that's just launched, and we are anticipating that they will begin to rely on an increased agent presence in the terminal to address things that we just are now finding out about our operation because we're in this integrated situation. We continue to have additional construction activity this morning. We have a new routing in between Terminal 3 and the International Terminal that requires additional staffing to address elevator issues. And construction support, frankly, in the AIOC are the two main drivers of that. And they're just a little bit unknown, so we wanted to make sure that we had a projection of costs that we felt good about, and that when these increases occur, if they do occur during the contract year, that we'd be able to accommodate them.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: So if I I'm paraphrasing of I'm trying to understand what you just explained meaning that the 22.6% of contingency is actually a calculation of potential additional staffing that is necessary during the duration of this contract Right. Which is about one year term.

[Supervisor Danny Sauter (Member)]: Thank

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

[Christopher Birch (Director of Guest Services, SFO)]: I

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: don' see any additional questions I don' have additional questions I don' name on the roster and let' go to public comment on this item thank you.

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

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: 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 the recommendation. Vice Chair Dorsey.

[Supervisor Danny Sauter (Member)]: Aye.

[Brent Jalipa (Committee Clerk)]: Dorsey, aye. Member Soder?

[Supervisor Danny Sauter (Member)]: Aye.

[Brent Jalipa (Committee Clerk)]: Soder, aye. Chair Chan? Aye. Chan, aye. We have three ayes.

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

[Deanna Volak (San Francisco International Airport)]: Thank you very much.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. Mister clerk please call item number two.

[Brent Jalipa (Committee Clerk)]: Item number two is a resolution authorizing the office of the assessor recorder to execute amendment number two to a contract with a sapient corporation for the implementation and maintenance of a property assessment system replacement project increasing the contract by approximately 6,700,000.0 for a new total not to exceed amount of approximately 33,900,000.0 and extending the contract duration from nine years and two months to thirteen years and eight months for a total term of 11/01/2018 through 06/30/2032. Madam Chair.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you and today we have the assessor recorder's office here.

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: Good morning chair 10 members of the committee my name is Simone Jacques on the deputy assessor of finance and administration. The resolution before you authorizes our office to amend our contract with Publicis Sapient to continue operations and maintenance of the system for five years, and that's from 'twenty seven-'twenty eight through 'thirty one-'thirty two. Next slide, please. Our project has been before the Board of Supervisors and this committee many times over the past ten years. And our project was part of a larger system replacement effort and a partnership with the treasurer and tax collector and controller in our office to replace systems that had been in place for decades. These aging systems managed the assessment, the billing, collection, and apportionment of around $4,000,000,000 at the time in property tax revenue and were significantly past their useful lives. Through the property assessment and tax system project, the treasurer and controller replaced their tax property tax system in 2020. Our property assessment system, which we call smart, went live through a phased approach. Phase I was completed in 2021. Phase II finally went live last fall after some significant delays, which we came to you about three years ago with our first contract amendment on. Next slide, please, Emily. The system is in production. Our staff are using it, and it's open to the public. The system was designed to talk directly with other departments so that we could efficient efficiently assess and enroll property value, secure property tax revenue, and better serve taxpayers. With the launch of phase two, we also opened our opened and expanded, rather, our community portal where owners of real property can use the portal to interact with us without ever having to leave their home or office. They can search for information, request mailing address or property characteristics changes, and they can complete forms that they previously had to print and mail or bring into our office directly. In terms of the budget, we've secured our final apportionment of one time funds from the Committee on Information Technology in the 'twenty five-'twenty six budget. And the ongoing maintenance costs are contemplated in our baseline budget for the next two fiscal years, which will be back before you, as you know. Next slide, please, Emily. In terms of the amendment, I I touched on this, but it increases the contract not to exceed amount by 6,700,000.0 solely to pay for the ongoing maintenance of the system with the existing vendor. We're exercising our only extension option and will not have additional extensions beyond this amendment. Therefore, we're okay to accept what you'll find in the budget legislative analyst's recommendation, which is to make the extension language clear in this amendment. We're happy to do that. Concurrent with the amendment, we are also going to be developing a plan to upscale our own staff so that we can properly maintain the system in house. That may require additional resources, but we do hope to ramp down support from the vendor over that time while we're ramping up our own internal capacity. So just want to conclude by thanking the Board of Supervisors and the mayor for supporting this project and helping to bring us into the modern technology age. I know that the assessor wishes he could be here to thank you in person, but we are we are very happy to have a system in production. So thank you for considering the item. I'm happy to take your questions at this time.

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

[Christina Malamut (Budget and Legislative Analyst)]: The proposed resolution would approve an amendment to an existing contract between the Office of the Assessor Recorder and Sapient Corporation for ongoing support and maintenance of the assessor's property assessment system, called SMART, to extend the term by about four and onetwo years through June 2032 and increase the not to exceed amount by about $6,800,000 for a new total of $33,900,000 Sapient is replacing the assessor's property assessment system. The system went live in September 2025 and is transitioning to ongoing maintenance and support. As the Office of the Assessor mentioned, the project has been delayed by approximately four years since the original timeline. Since the Board of Supervisors last approved Amendment one, implementation costs have increased by 16,600,000.0 largely due to vendor cost delays. In recognition of that failure, the vendor is contributing or absorbing $15,300,000 of those costs, and the city is funding $1,300,000 of those costs. The assessor intends to transition system support in house in the future, but currently doesn't have staff capacity to support the system. Exhibit one on page 10 of our report shows the basis of the not to exceed amount. The $6,800,000 increase includes an additional $1,300,000 for implementation, as well as annual maintenance costs of about $1,200,000 The contract is funded by the general fund, we recommend approval of item two.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. As you may recall I don't know if you would recall this was 2023 when you had its first amendment sponsored by then board president or supervisor Aaron Peskin, came before us at that time. It was for a policy matter for the board. And clearly, the board agreed to continue, even though it was clearly a fairly significant delay because it was supposed to schedule to go live on May 2021. And then it didn't happen until February 2020 then it was delayed till 2024. But it sounds like there was actually further delay even from February 2024 when it was first approved in 2023. So what we have agreed or approved in 2023 turns out to be still delayed from the time that it was approved in 2023. And now the contractor, you know, through through the assessor, return to us and say, well, let's have additional dollars. But meanwhile, because of these years of delay, 2021, so five years delay, that we now will say we we are contributing $15,000,000 roughly right of staffing time help me understand though having a better records of that dollars that is show from the contractor, like that dollar amount, how did it come about? Help me better understand what that actually means for the city.

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: Sure. That negotiation happened between sort of when we found significant failure in the design of the system, which was around August 2023. So it was shortly after we came to you with the amendment. We stopped the project at that time. We were very close to not continuing with the vendor. We negotiated between sort of that time frame and January on what it would cost to get the project to completion. The vendor provided their negotiating proposal which was to split the cost half and half and that was their $16,000,000 proposal. We reviewed, you know, that against the amendment that what we negotiated in Amendment one, and the costs seemed similar. And instead of splitting the cost with the vendor half and half, we took about 8% of that responsibility. They took the remaining 92. And that's where sort of that split came from. Did that answer your question, Chair Chan?

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Sure. And, well overall like you did help me better understand again that so what happened here is if I understand correctly this is mainly this $15,000,000 that in discussion here is really a discussion about staffing time?

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: It's yeah, it's the vendor's time to continue the project beyond sort of when the system failed to September, essentially, 2025 when we just went live. So it's around two years of cost on both sides. We're we had to continue our staff, and they did as well. So they also augmented their project team. We had a I'll just say a B team on the project before. They brought in a new project management team as well as augmented their testing on the system. So there were some significant investments on their side that that $15,000,000 paid for. I mean, it's they were spending, you know, about $750 to $1,000,000 per month on the project. So a two year time frame, you know, is is a long time when the project was supposed to originally go live in three years. So

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: And are any of these records of staffing included of what we're seeing on the legislative file today? I I'm trying to my apologies. I I I will I I didn't get a chance to really comb through your agreement that I'm looking at right now and but my assumption is is which is like nine eighty nine pages long but I am trying to understand are there actually staffing that is through the what you just described for two years? Are there staffing sort of invoices that are included with this

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: today? The invoices don't detail that level of information. We do have sort of cost estimates from their team, which show sort of the cost of their 85 member team from Sapient, as well as a cost breakdown of the team that's proposed under this amendment. It's about 10 people, and that's what the 1.1 to sort of 1.3 in the out years cost is is paying for.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Under Schip. In that case, we would love to have those information on the legislative file. Great. Just I I think, again, today I'm in support of this. Let's move forward with this. Let's get this done. You know because we're here now. We've been in Tangled Force since 2019 and it is time for us to wrap it up. But I do think that I would like to have some concrete information to be included in this agreement and in this approval of this amendment so that we can actually see the accounting for the staffing for the very least and try to help us understand the staffing I level am glad that you did push back on this conversation with them that showing I don't know how you come up with the 8% on the city's time and 92% of their time that they should bear the cause for. If you want to walk us through, I'm happy to hear, like, how do you negotiate with that? But it's been a while, so I appreciate that. I see that. Supervisor Sauter.

[Supervisor Danny Sauter (Member)]: Thank you. I was going to ask about the with this delay, sort of accountability Sapient is taking. But it sounds like from the BLA, they're going to bear the brunt of most of this cost, which should be the case. A few questions. How is this delay impacting the end user, be it a resident right now? Like, what are we losing out on because of this delay in their experience?

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: Great question. Thank you. We the end user was not did not lose out on anything because the system really provided new functionality that did not exist previously. We did have a dark time between around June and go live where we weren't able to process items. This was last year before our go live. And so there was some impact to, you know, being able to do our normal business at that time. We've gotten over that, and and work has begun in the system. And so there there really was no impact to taxpayers of the delay itself in terms of their access to the system. The new functionality that they're able to use is, you know, 100 times better than what what existed previously. So it's really an enhancement to to taxpayers.

[Supervisor Danny Sauter (Member)]: And then, again, a long delay, a long period. I guess the question is, how do you still have confidence in this consultant? And along the journey, along this long journey, have you I mean, did you start an effort to look at alternative providers at some point during the process?

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: Well, our confidence has improved. As I mentioned, you know, when we noticed this failure, our confidence was zero. We were ready to issue a notice of default. We were able to negotiate that 8% because a system had not been built and they, you know, didn't follow through on their commitment on our contract. And we believe we had a very strong negotiating position to say, we're not going to pay for half of this cost. This is on you, In terms of sort of why we want to move forward, there is a lot you know, this is a very large, complex system. Prop 13 is not easy to implement systematically in terms of assessment and valuation and sort of understanding the rules and in which scenarios they apply. We simply do not have the capacity or the skill set in house to be able to main the maintain the system. And we aren't certain that another vendor would be able to do it, either. This was really custom built, which was not anticipated at the beginning. It was sort of supposed to use inherent functionality, and it was found that that really could not be done and allow us to manage our systems efficiently. And so we have not done that search to see if other vendors you know, there is a very limited vendor market for these types of systems. And, you know, even ten years ago when we conducted the RFP, there were very few off the shelf systems. And so, you know, we have not done a new market scan. It is, you know, a decade later, and it's possible. But our priority is really trying to find staff and upscale our own staff so that we can maintain the system. We know our process. And as long as we have the technical capability in house, we believe we can I believe we can do that without relying heavily on a vendor? And that is really sort of where I think we need to be headed.

[Supervisor Danny Sauter (Member)]: Okay. Thank you.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. So I do expect that we can have that information between now, and the item will be appearing actually a week after next week, we will be on legislative recess. And I'm looking to Mr. Clerk to help remind me again, if we pass this, when will the item appear at full board?

[Brent Jalipa (Committee Clerk)]: That would be April 7, Madam Chair.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: April thank you so much. And April 2, so between now until April 2 when it does come back to full board, do hope that we can see a breakdown or whatever information that you can provide in terms of staffing for the over two periods of two years of period of time that or somewhat of a breakdown of that 15 millions and whether it's staffing or is it equipment I'm just making assumption but to help us understand the contribution of from Sapiens, I think, ultimately, is that I do not hope to see this contract before us again. And because I think if we were to, I think it will be a very different conversation.

[Simone Jacques (Deputy Assessor-Recorder, Finance & Administration)]: Thank you, Chair Chan. We're happy to provide that information. And I do not want to bring this contract back to this Board.

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

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

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Seeing no public comment, 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 a recommendation. Vice Chair Dorsey.

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

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

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

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

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: The motion passes. Thank you supervisor. Thank you. Mr. Clerk please call item number three.

[Brent Jalipa (Committee Clerk)]: Item number three is a resolution retroactively authorizing a contract between the city and county hacking buy and through the human services agency and the san francisco moraine food bank for the provision of the cal fresh stop gap emergency gift card initiative for a term of two months from 10/30/2025 through 12/31/2025 for a total not to exceed amount of 9,100,000.0 and retroactively approving amendment number one adding repayment instructions as well as revised repayment and reporting effective 01/30/2026. Madam chair.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you, mister clerk. I do wanna first really thank the Human Services Agency for the work that you have done and in partnership with Marine Food Bank during the time, like, last year when we facing cuts from the Trump administration with SNAPs, you step up to the plate. You immediately making sure that it works for the recipients of SNAP for San Francisco throughout the entire city. I just want to thank you. Thank you so much for the work, thank you so much for bringing this before us today. And I hope that we don't have to do this again. But I'm afraid that we may, and I am in anticipation of it. We will be ready, this budget process, and to really have a more earnest conversation about what that actually will look like. But at least I think you have drilled in my head now that is 112,000 recipients of SNAP in San Francisco, and out of which, I think, 48,000 are seniors, 18,000 are children. And so we we appreciate the work that you're doing and and with the with the number also drawing my head is $20,000,000 per month is what is required to support this 112,000 individuals that are the SNAP recipients. So thank you for your work, and the floor is yours.

[Susie Smith (Deputy Director, Policy Planning & Public Affairs, HSA)]: SUZIE Thank you, Supervisor Chan. Susie Smith, Deputy Director for Policy Planning and Public Affairs at HSA. And I also want to thank the mayor and your the board's foresight in putting aside $400,000,000 in emergency funding for events just like this that we worried about and were able to draw on so quickly. I do think I mean, this is an opportunity just to pause and reflect on the moment that we're in. And I will say that it was one of my proudest moments and our collective proudest moments as a city to be able to act as quickly as we did to support San Franciscans when our federal government failed us. And I'll say my decade at HSA, it's one of my proudest accomplishments. And I know Trent as well in twenty five years at the agency. So as you referenced, we have 112,000 San Franciscans. One out of seven residents are supported by CalFresh. These are seniors. These are people with disabilities, people experiencing homelessness, low wage workers who rely on SNAP every month to put food on the table. We got notified by the state around October 20 that the USDA would not be using releasing federal emergency funds that are set aside for this very purpose. And so in three days, my team designed an $18,000,000 equity based alternative federal food program using our CalFresh administrative data to tier different levels of support, depending on the family size and depending on, frankly, how much we could raise from philanthropy. And a week later, October 27, the Crank Start Foundation, which we are so grateful to, they put the challenge grant before us. And they said, if you contribute, Citi, dollars 9,000,000, we will contribute $9,000,000 And this board and this mayor acted within twenty four hours in approving the funding so that we could issue these grocery cards for CalFresh families. And we partnered across the city, we partnered with the treasurer's office to identify a vendor quickly, company that had experience specifically in gift cards in emergency activations. They supported the wildfires down in LA and the Houston floods, and provided both a digital and physical card. So we had six days from the time the funding was approved to prepare a recipient list for 82,000 households translated into five different threshold languages and ready hundreds of frontline HSA workers and community partners to support people who needed help in activating the cards. We established a call center and trained staff over the weekend, developed a training program, a CBO toolkit. And our service center staff ended up assisting 11,000 households to activate their cards by phone or in person. And despite a massive spike in our call volume we had 10,000 calls some weeks 80% of our callers waited less than five minutes, and only 4% dropped the calls. So our operations remained strong despite the spike in work. And one week after the board and Crankstart's board approved the funding, 18,000 San Franciscans on day one were the first to claim the benefit, which is a testament to how much low income San Franciscans rely on this benefit to put food on their table. Two weeks later, we had 53,000 people claim their gift cards. And by the activation deadline eight weeks later, we had over 65,000 CalFresh recipients claim their cards in $14,400,000 worth of support. We also did a massive outreach campaign because this was a new program, and there was so much confusion at the federal level. We did texting, social media, letters, posters, flyers, FAQs all translated. We held daily strike teams where we used the activation data to look at specific populations and neighborhoods that were underutilizing the support, and then deploying specific strategies with our partners to help increase those activation rates. And we learned a lot, honestly, about emergency operations and how to move forward in this way should this or when this happens again. We also activated a wide network of other departments. We partnered closely with HSH to reach unhoused community members, DECC with FRCs, DAS with the Aging and Disability Resource Network. OED did merchant walks to let merchants know about these cards. And we presented their CBO toolkit to over 400 community based organizations. So really widespread, hitting every corner of the city API Council, Latino Task Force, African American Faith Based Coalition. We did ethnic media, traditional media. We did in person support efforts, where we partnered with Chinese newcomers and Glide and other leaders in the community that stepped up without extra payment to say, like, we want to help the community. Come to our offices. Help people enroll. I mean, in one day, Chinese newcomers had a couple 100 people. I think it was 500 people on one day. So it was really an amazing effort. About 92%, maybe even higher, of the Chinese community members on CalFresh activated their cards. And then finally, we did extra support for people experiencing homelessness or those with general delivery addresses or PO boxes. We were really worried from day one that these folks are not checking their mail, wouldn't get the letter. And so we decided for that population to allow them to come in person and pick up physical cards. And again, it was a matter of days that we set that up. So I'm really grateful for our service center, all of our service center partners and eligibility workers. So in the end, about 80% of the eligible households redeemed their cards. And I think that's a remarkable number, given the vulnerability of the population we serve, the fact that we designed and launched this in less than a week, and where the activation period was only two months. So we were pretty proud of that. And as of March 22, 92% of the funds have been spent. So $13,200,000 of the 13,400,000.0 that were activated. And the contract here, the retroactive emergency contract with the food bank, The food bank served as the fiscal intermediary. As a foundation, crank start couldn't fund our for profit partner. And so we needed an intermediary that could hold the funds. And we selected them because of in the community, obviously a leader in the food space. They were able to say yes within forty eight hours. And crankstart already funds them, so they had that trust, which was critically important. So again, we were able to partner across government, across philanthropy, our CBOs, to really make a meaningful difference in the lives of our most vulnerable San Franciscans and ensured that when the federal government let them down, we did not. Happy to answer any questions. Partnered with Crank Start in an article that was submitted to the Stanford Social Science Innovation Review, SSIR, and around some of our lessons learned and how, like, what philanthropy learned too. Others came to us. Other counties came to us asking for help. Other foundations contacted crank start saying, you know, how did you do this? So, are hopefully that will get published. And we are documenting some of those lessons learned for future activation, and doing an evaluation. And we'll be happy to share those learnings as they come forward. Sorry, I had to have a brag moment.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: You're You're

[Christina Malamut (Budget and Legislative Analyst)]: The proposed resolution would approve a contract between HSA and the San Francisco Marin Food Bank for the CalFresh Stopgap Emergency Gift Card Initiative with a two month term through December 2025 and an amount not to exceed $9,100,000 It also retroactively approves an amendment to that agreement to add repayment instructions and revise reporting requirements. Following the lapse in federal funding for CalFresh, HSA entered into an emergency contract with San Francisco Marine Food Bank to distribute $18,000,000 to CalFresh recipients and gift cards. That includes 9,000,000 donation provided by Crankstart and $9,000,000 that was in city funds that was appropriated from the state and federal revenue risk reserve, plus an additional $100,000 to cover the cost of the physical gift cards. Clients had until December 31 to activate the gift cards and have until the March to spend down those gift cards with any unspent funds returned to the city. As the department reported, 80% of eligible households activated their gift cards for a total of $14,400,000 in benefits. And based on more up to date information provided by the department, dollars 13,200,000.0 of that has been spent, or 92%. HSA has already received $1,800,000 back from the Marin Food Bank for the gift cards that were not activated, and will receive another payment back for any unspent funds on the activated gift cards, which could be up to $500,000 We recommend approval of item three.

[Susie Smith (Deputy Director, Policy Planning & Public Affairs, HSA)]: And Christina, just one point of clarification. For the unspent funds, we made an agreement with Crankstart that we would be splitting those funds. And so we're getting half, and Crankstart's getting half back. So I just wanted to make sure that was clear for the record.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. Thank you. You should brag about this moment. Think that what maybe some do not recall and I certainly do is that this not only happened around holiday times for us, especially throughout the city. It coincides the regrettable blackout citywide moment as well, the time where people could then end up getting their gift card to really have those spoiled goods that they end up have to, you know, replace during those moment, being able to have this card actually activated. We visited Chinatown and have conversation with those recipients of the gift cards, or I did during those times. And it was both not only for the recipients, but also for small business and who are mainly the grocers and others that finding because it was actually a quite a loss should the recipients not be able to use their ebt cards or benefits to purchase their daily groceries. So, this was really helpful as well to be able to come in that time. Thank you so much for your work. Supervisor Sauter.

[Supervisor Danny Sauter (Member)]: Thank you. And I'll just echo that. Think this is remarkable. And I think that what you've done here deserves more recognition and deserves to be studied. For you to be able to pull this together so quickly, I think it's a good reminder of what we can do when there's urgent needs. And I think it's just quite a contrast to our last item where we had a private for profit company that is doing a four year delay. And here we are as government. Here you are doing this in a matter of days. So thank you. And, you know, unfortunately, it's a reminder, too, when I'm seeing SNAP of the, you know, of the challenges ahead, not only with federal cuts, but even with state cuts, with market match being proposed to be cut. And I think it's something we have to keep our eye on. But thank you.

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

[Susie Smith (Deputy Director, Policy Planning & Public Affairs, HSA)]: On the recognition front, I will say I nominated my team and the others that were leading this effort for a Spur Good Government Award, and they got it. You can come to the reward ceremony cheer them on.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: You. Congrats. Let's go to public comment on this item.

[Brent Jalipa (Committee Clerk)]: Yes, we're now opening public comment for this item number three. We If have any members of the public who wish to address this committee.

[Griffin Lee (Public Commenter)]: Good afternoon, Budget and Finance Committee. Griffin Lee speaking here as a resident. Wasn't coming for this item, but I do thank I do wanna thank and appreciate the mayor and the board and everyone working together, to get this done so quickly in response to, the federal, stoppage of of funds. I think this is what it means to really show up and step up in a really crucial time for a very important matter. Thank you, Marin Food Bank, Frank Start, the mayor, and the board. Appreciate it.

[Brent Jalipa (Committee Clerk)]: Thank you much, Griffin Lee, for addressing this committee. And, with no further speakers, Madam Chair, completes our queue.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Seeing no public comments, public comment is now closed. And, with that, we, colleagues, I would like to move this item forward with positive 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 positive recommendation, Vice Chair Dorsey.

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

[Brent Jalipa (Committee Clerk)]: Dorsey. Aye. Member Soder. Aye. Chair Chan. Aye. Chan, aye. We have three ayes.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: The motion passes. And, mister Clark, please call items four through six together.

[Brent Jalipa (Committee Clerk)]: Yes. Item numbers four through six, our resolutions approving amendment number two to the following agreements between the city and county acting by and through the department of public health to operate health access points for new total terms of 01/01/2023 through 06/30/2030 and to authorize dph to enter into amendments or modifications to the agreements that do not materially increase the obligations nor liabilities to the city and are necessary to effectuate the purposes of the agreements or their respective resolutions item number four is with the san francisco aids foundation to also provide capacity building services to extend the term by four years from 06/30/2026 and to increase the amount by approximately 11,900,000.0 for a new total not to exceed amount of 23,800,000.0 item number five is with rafiki coalition for health and wellness to extend the term by three years from 06/30/2027 to increase the amount by approximately 10,600,000.0 for a new total not to exceed amount of approximately 20,000,000. And item number six is with institute of familiarity de la raza inc to extend the term by three years from 06/30/2027 and to increase the amount by approximately $9,200,000 for a new total amount not to exceed approximately $17,000,000 Madam Chair.

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

[Nicole Trainer (Community Health Equity & Promotion Branch, DPH)]: I, good morning, Supervisors, Chair Chan. My name is Nicole Trainer. It's all good to see you again. I've been here several times. I'm with the Community Health Equity and Promotion Branch, and I'm the System of Care Budget Contract and Programs Operation Manager. And again, thank you for this opportunity to present three contract amendments for equity based health access points. Next slide. And before I go into the three slides, I do want to clarify that our health access points, this model is designed as wraparound services and they provide approximately 13 standard of care services, which include integrated HIV, HCV, STI testing, primary care, mental health services, overdose prevention, health and recovery, also linkage to basic needs and social services as well, which includes folks to walk into the doors and receive food security, housing support linkage, and also employment as well. So, for the first contract amendment request, again, it's for the San Francisco AIDS Foundation in the amount $11,900,000 again, with a total do not exceed amount of 23,000,000 SFAF provides integrated, again, HAPS services along with capacity building support within the Health Access Network to ensure that this model is successful and sustained over time. The foundation specifically provides services that are tailored to gay MSM community members in San Francisco, centrally located in the Castro and SoMa neighborhoods. Next slide, please. The second contract amendment request is for Rafiki Coalition, again, in the amount of $10,600,000 with a total not to exceed amount of $20,000,000 Rafiki provides integrated HAP services as well that are specifically tailored to black African American San Franciscans and unique historical communities, which include Bayview Hunters Point, Betrayal Hill, Sunnydale, and Fillmore neighborhoods as well. And the third and final contract amendment request is for Instituto de la Raza, again, in the amount of $9,200,000 with a total do not exceed amount of 17,000,000 IFR also provides integrated health access point services specifically tailored to the Latino SF Community and Historical SF Mission District. Next slide. The next few slides you will see I provided some photos of each of the health access points, so you can get a visual of where these services occur within the four walls. However, I do want to point out to you that the health access points model was not just designed to provide services in the four walls. It's really designed to expand that services within the community, meeting folks where they are. So, even though each of these health access points, they focus on a specific population and they're embedded in a neighborhood, I do want to point out that this model requires really strong coordination and collaboration. And so, it was intentionally designed this way with the community input and community voice. We ensure that there's coordinated partners across all of the community based organizations. So, we do have lead health access points, and we also have subcontractors. And so, within this entire health network, there's about 17 CBOs who contributed to these services so that we can reach the four walls of San Franciscan communities. We want to also ensure that these services are not delivered in isolation, which sometimes we're accustomed to. We want to ensure that when a client walks through their door, they it's a seamless transition. They don't know that they're at one organization from the next. They're operating in one health access point. And we really do this by integrating our workflows across all of the health access points. We have communication pathways. We have a really strong referral process where we're not just giving anyone a card. We're making sure that they've reached their destination and they're receiving care as well. Again, this creates a seamless service environment in which individuals can enter any health access point regardless of how they identify or regardless of how they walk through this world. So, I really wanted to point that out that these health access points work very, very closely together. And this first slide you see here is the SFAF MSM HAP. And so, you'll see here, this is their Strut Clinic. They have several other clinics where services are provided. But you also can see they use this as a community engagement space, and they're a well trusted organization within San Francisco. You can go to the next slide, please. And here is a pictures of Rafiki Coalition. I'm really proud to say that Rafiki has come in such a long way. As you know, they're in Bayview Hunters Point. It's been a health desert over there. And we've been working with Southeast Health Center, some of the HOPE SF centers to really connect to Rafiki as well to create, again, another system of care in that neighborhood. With the capacity building support of the foundation, Rafiki was able to purchase this building that you see here. It's a beautiful building. It's at 5003rd Street. This is where their primary health access point services will occur. So, are folks who walk up and down 3rd Street who can literally just walk into this building and receive services. I also would like to point out that while this building is under construction, Rafiki has really positioned themselves and partnerships with organizations like Glide and AHP, who provide mobile testing, that they can go into Sunnydale Housing and provide testing on-site. They can go into Fillmore and provide testing on-site. So, it's just not testing here in Baby Hunters Point, but we want to reach black folks all across San Francisco, right? So, I'm really proud of the this what they've overcome, the found that agency has been through a lot. And the last slide. And here you see us IFR, Instituto de la Raza. They are historically located in the Mission District. They have really, really strong ties to the Latino community in San Francisco. Here, again, is their beautiful space. They have a hold a lot of cultural events here. They also provide services. But through their partnerships, they're just not providing services in the Mission District, so I want to make that very clear. They also partner with the other subcontractors who are located and specialize in outreach to other Latino folks who live outside the Mission District. And that is why we need this strong, coordinated collaboration across all of these health access points. And it's really designed so integrated that you cannot tease this apart. Go to the next slide. So, in closing, DPH agrees with the BLA recommendations, and we respectfully request approval of these three contract amendments. And before we open up for questions, we are also requesting several amendments to the legislation. And, Clerk, would you like me to read those amendments into records?

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

[Nicole Trainer (Community Health Equity & Promotion Branch, DPH)]: Great. On page one, line two, we would like to delete the number 20 three-eight 30 two-nine 33 and add 20 one-eight 80 nine-six 43. On page one, line eight, we would like to delete the number 20 three-eight 30 two-nine 33 and add 20 one-eight 80 nine-six 43. On page two, line six, we would like to delete the number 20 three-eight 30 two-nine 33 and add 20 one-eight 80 nine-six 43. Thank you, supervisors, for your continued support. And I'm available for questions you have about the health access points.

[Christina Malamut (Budget and Legislative Analyst)]: The proposed resolutions would approve amendments to existing DPH contracts for health access point programs to extend the terms through June 2030 and fund the increase the not to exceed amounts to fund the extended terms. The contracts are with Instituto Familiar de la Raza for the Latinx population, San Francisco AIDS Foundation for the Men Who Have Sex with Men Health Access Point Program, the Rafiki Coalition for Health and Wellness for the black African American Health Access Point Programs. These programs primarily provide STD testing and treatment. They also provide linkages to care and some mental health services. Two of the programs exceeded standards in the most recent program, Monitoring, by DPH. However, the Rafiki program was rated as below standards due to not meeting their contracted units of service, as well as some invoicing issues. Since that time, DPH has provided updated information that shows that they are on track to meet units of service targets. They have also hired some senior finance staff and are working with DPH on the invoicing. And they appear on track to meet the standards of the program. Exhibit three on page 20 of our report shows the basis of the not to exceed amounts. The annual budgets are between 2,300,000.0 and $2,600,000 for each program. For the most part, these budgets are remaining flat in the extended term. The one exception is there is a 400,000 reduction to the annual budget for the San Francisco AIDS Foundation because DPH has cut their capacity building support to Rafiki as part of a broader effort to reduce capacity building in DPH's nonprofit portfolio. The agreements are funded by the general fund, and we recommend approval of items four, five, and six.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. Correct me if I'm wrong, but I think the $400,000 capacity building is the $17,000,000 of cuts from the DPH, which the board already held the Beelinson hearing for two fiscal years ago. And thank you so much for the work that you're doing. I am pleased to hear some of these Rafiki work to continue to grow and make sure that they're fiscally sound. And I do appreciate the presentation today, like with the photos of the meetings and events. Those are actually really helpful. So I appreciate that. Vice Chair Dorsey.

[Supervisor Danny Sauter (Member)]: Thank you, Chair Chan. I really appreciate that a lot of the services include treatment for substance use. And I know that was one of the, I think, seven populations for which the RFP sought to provide health access point services. I just want to clarify, because I think I know the answer, but just because I have gotten this question. To the extent harm reduction services are included, will this be in sort of will it comport with Mayor Lurie's directive to make sure that we're doing it in a way that includes proactive outreach on drug treatment and access to programs, sort of consistent with the Recovery First ordinance that I authored and some of the work that we're doing together?

[Nicole Trainer (Community Health Equity & Promotion Branch, DPH)]: Yes, absolutely. You're spot on. And so, we initially rolled out this RFP, there were 13 standards of care specifically, and that was from the community and what they wanted to see when they walked through the door. But you're right, there has been a new directive by the mayor. And so, we're shifting those descriptions of the standards of care, where essentially we had three buckets of harm reduction, overdose prevention, and syringe access and disposal. And so, what we've restructured or are in the process of restructuring, those three are really combined. And it's really about overdose health and recovery with an emphasis on recovery and ensuring that people have access to recovery services and ensure that we are saving lives and preventing overdose prevention. So you're absolutely right on. We are restructuring those components of the model.

[Supervisor Danny Sauter (Member)]: Great. Thanks so much. I would just add, just for clarification, because I think sometimes in the public debate, there can be sort of a either harm reduction or treatment. And that's not the way the continuum works. Harm reduction is something that really needs to be an essential part of this. But if we're all rowing in the same direction to support and incentivize long term recovery. That's really what the aim is. So, really appreciate this. I'm happy to support it.

[Nicole Trainer (Community Health Equity & Promotion Branch, DPH)]: Thank you.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. And with that, let's go to public comments on all these three items.

[Nicole Trainer (Community Health Equity & Promotion Branch, DPH)]: Thank you for your continued support. Really appreciate it.

[Brent Jalipa (Committee Clerk)]: Yes, if we have any members of the public who wish to address this committee regarding these items four through six. Now is your opportunity.

[Griffin Lee (Public Commenter)]: I'm back. Griffin Lee, District 2 resident and representing Connected Staff and members. Supervisor Dorsey, Sauter, and Chan, I really think we really think we need to go back to the drawing board here. In this presentation, there's no talk about outcomes nor accountability. If you go through the second draft amendments in each one of these files, harm reduction is all over it, 40 times in one document as part of required services and training. While I know mayor Larry's directive allowed, we and we know that the mayor's directive last year allowed for access to syringes indoors, we're still seeing the SFH Foundation distribute enablement, like syringes, outdoors. I've never we've never seen city hall be this proactive over something over something like the like this. Two of these contracts, the current expiration date isn't till 06/30/2027. Whether or not these two or three contracts are already allotted into the budget, I think the recovery community, those that I spoke to over the last forty eight hours, along with our staff and members, would really appreciate an audit and really more clarity on what we're tracking here to to define success. Because over and over again, these contracts get rubber stamped, and we're still seeing six hundred plus people die on our streets today. Thank you very much.

[Brent Jalipa (Committee Clerk)]: Thank you much, Griffin Lee. Next speaker, please. Oh, actually, with no further speakers, Madam Chair, that completes our queue.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Seeing no more public comments, public comment is now closed. Just want to clarify, this is a health access point, that it's inclusive of treatment for sexually transmitted disease, for the vulnerable populations. And so with that, colleagues, I would like to first amend item number four as offer and indicated by department and read through by department of public health, and with that is to send amended item four and then and with item five and six 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 item oh sorry take that back with that motion to amend number four to lower the not to exceed the math as a stated by the department and that we refer all three resolutions to the full board with recommendation number four as amended. Vice chair Dorsey

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

[Brent Jalipa (Committee Clerk)]: Aye. Member sotter sotter aye chair Chan.

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

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

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: The motion passes. Mr. Clerk please call items seven and eight together.

[Brent Jalipa (Committee Clerk)]: Items seven and eight our resolutions approving and authorizing the following as it relates to real property owned by the city located at 105 Wisteria Lane formerly known as 11 Friticallo Way and known as Balboa Reservoir Building 8 approving the director of property in the mayor' s office of housing and community development. Yes to enter apologies resolutions approving and authorizing the following as it relates to real property owned by the city located at 1 Of 5 Acelia Lane formerly known as 11 Frita Callow known as Balboa Reservoir Building A. Item number seven approves and authorizes director of property in the mayor's office of housing and community development to enter into a ground lease for a real property with Balboa Lee Avenue Lp for a lease term of seventy five years and one twenty four year option to extend an annual base rent of 15,000 authorizing an amended and restated loan agreement in an amount not to exceed approximately 29,900,000.0 for a minimum loan term of fifty seven years to finance the development and construction of a 158 unit multifamily rental housing development affordable to very low and low income households plus one manager' unit adopting findings that the project and proposed transactions are consistent with the general plan and the eight priority policies of the planning code and authorizing the director of property and or director of mo c d to execute the ground lease loan agreement and make certain modifications to such agreements and take certain actions in furtherance of this resolution as defined and item number eight approves for purposes of the internal revenue code of 1986 as amended and authorizes the execution and delivery of a multi family housing revenue note in one or more series in an aggregate principal amount not to exceed approximately 112,700,000.0 approving the forms of and authorizing the execution of a funding loan agreement providing the terms and conditions of the loan from the funding lender to the city and the execution and delivery of the note approving the form of a project loan agreement providing the terms and conditions of the loan from the city to balboa gateway lp and a regulatory agreement and declaration of restrictive covenants authorizing the collection of fees approving modifications changes and additions to the documents ratifying and approving any action here to for taking in connection with the back to back loans and that the note and the project granting general authority to city officials to take actions necessary to implement the resolution and related matters as defined Madam Chair.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you, and I want to acknowledge Supervisor Sauter.

[Supervisor Danny Sauter (Member)]: Thank you, Chair. Before we begin this item, I just want to welcome some students from my district. We've got sixth graders from Notre Dame. Thank you for coming, everyone. This is, you're at our Budget and Finance Committee meeting. Hi. So this meeting is every Wednesday, and we have committee meetings throughout the week. And then on Tuesday, we have our big board meeting. So if you would have been here yesterday, the room would have been packed. But thanks for, for coming. It's an honor to have you here. I hope you have a great visit today. We've had six or seven agenda items before this, and this is our last item. We're going to be talking now about a really big housing project that's one of the bigger housing projects that San Francisco has. So, you're welcome to stay and follow along for a little bit. And once you get a little bored, you can go out and continue your tour. But thanks for being here. And thank you to the teachers and chaperones, as well.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Well, welcome. And with that, we have mayor's Office of Housing and Community Development here.

[Andrew Strong (Project Manager, MOHCD)]: Thank you. And good morning, Chair Chan and committee members Dorsey and Sauter. My name is Andrew Strong, and I'm project manager at the mayor's Office of Housing and Community Development. I'm here to present on items seven and eight for affordable housing development Building A at the Balboa Reservoir site. The purpose of the two resolutions before you are to authorize bonds, a gap loan, and ground lease for Building A. Item seven approves the MOCD loan agreement of up to $29,280,757 and execution of the ground lease for Building A. And then item eight authorizes the execution and delivery of tax exempt and taxable bonds of up to $112,711,100 for Building A. Balboa Reservoir is a development agreement project that was approved by the Board of Supervisors in August 2020. The project is a 17 acre site located across from City College and will include multiple buildings of new market rate units and units affordable to low income residents. The first phase of infrastructure developed by Bridge Housing is currently underway and will provide utilities, public right of ways including streets and sidewalks, sewer systems, and other transportation improvements. The roughly 5.7 acres of infrastructure work in this phase will also include grading and site preparation for two new 100% affordable buildings totaling these new units. The first of these two buildings, Building E, is already under construction. The second building, Building A, for which these resolutions apply, will have its pad ready for construction by late April for a May 2026 construction start. As mentioned, Building A is the second 100% affordable development at Balboa Reservoir and will be developed by Bridge Housing. The project will serve families between 40 to 80% area median income through 158 affordable units with one non restricted managers unit. The project will consist of 13 studios, sixty five one bedrooms, 42 bedrooms, 43 bedrooms, and one additional three bedroom managers unit. Financing for Building A will include funds from from MOCD, MOCD sorry, the Infill Infrastructure Grant, IAG funds, and Affordable Housing and Sustainable Communities, AISC awards from the state's Housing and Community Development Department, as well as housing tax credit equity and construction and permanent loans. Dollars 33,000,000 in AISC funds will contribute to the housing budget through an HCD loan, while an additional $12,700,000 will contribute to transportation related improvements through an HCD grant. Financing is targeted to close by the April 2026 for Building A, with construction to commence May 2026. And we're anticipating project completion by March 2028. Lease up is anticipated to be completed by September 2028. Lastly, we would like to make a clerical amendment to the long title of the resolution to change the name of the developer from Balboa Lee Avenue LP to Balboa Gateway LP. Balboa Reservoir Building A is an excellent opportunity to improve geographic equity by expanding affordable housing in San Francisco's West Side neighborhoods. I'm joined here today by John Moyman from Bridge Housing. And we are happy to answer any questions that you all may have. Thank you.

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

[Christina Malamut (Budget and Legislative Analyst)]: Item seven is a proposed resolution that would approve an amended and restated loan agreement to provide gap financing for Building A to a bridge housing affiliate in an amount not to exceed approximately 29,300,000.0, and it also approves a long term ground lease. Under a development agreement, the Bavaro Reservoir project is gonna provide 550 affordable housing units and 550 market rate units. The development agreement also requires the city provide gap financing for about a third of those units and that the developer provide gap financing for the remaining two thirds of the affordable units. It also requires that the developer fund the infrastructure for the project. However, as we previously reported to the board, the market rate development is currently on pause. And so the developer and the city worked together to reprioritize infrastructure to advance the first two affordable housing projects, including Building A, the subject of the proposed resolution. The city also agreed to provide an infrastructure loan for that first phase of development because the affordable housing projects were at risk of losing state funding if the infrastructure didn't proceed. Building A will provide 158 affordable units. Exhibit five on page 33 of our report shows the total development cost, which is the basis of the loan amount. The total development cost per unit, as well as a city subsidy per unit, are greater than typical most city projects. And that's due to the cost of infrastructure. And that infrastructure loan was previously approved by the Board of Supervisors. As we reported in September, the city's total contribution so far to the affordable housing for Robalo Reservoir project is approximately $87,000,000 including this proposed loan. And that's about $36,000,000 more than what's required in the development agreement. But this proposed resolution is consistent with that information previously provided to the board. Recommend approval of item seven.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Thank you. Please help me understand thank you so much for bringing this project forward. Please help me understand, like, in the just the different sources of funding, and that's inclusive of, here indicated about $108,000,000 which is 53.3% of the funds is actually coming from private funds but also benefit from tax credit What tax credit? And is it state tax credit or federal tax credit or both?

[Andrew Strong (Project Manager, MOHCD)]: The state tax credit. So the project was awarded tax credits funding in the 2025 which has allowed us to move forward with this project.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: And then on top of that in addition to it is $33,000,000 which is 17.5% of the state fund. And is that $100

[Supervisor Danny Sauter (Member)]: or

[Andrew Strong (Project Manager, MOHCD)]: Yeah, the $33,000,000 ASIC. Yeah, so that is the Affordable Housing and Sustainable Communities award, which the project also received from the state's HCD department.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: But it's not a loan?

[Andrew Strong (Project Manager, MOHCD)]: So yeah, this is where AISC is a little confusing. So when you get an AISC award, there is both a loan component and a grant component. So the $33,000,000 is a loan from the state of California. And then on top of that, there's an additional $12,700,000 that is granted to the project. But the grant is specifically restricted to transportation improvements affiliated with the project. So that includes things like upgraded bikeways, sidewalks, two new BART cars, and then funding to MTA to improve The area. Transportation in the area.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Sure. I mean, it's a transit oriented space, absolutely. With that loan, though, if you can help me understand a bit more about that $33,000,000 loan, the state loan. What does the repayment actually looks like? Is it coming from the city? Or is it how does that work? Or is the developer going to actually repay that loan over

[Andrew Strong (Project Manager, MOHCD)]: the Yeah. I would need to get back to you with the specifics of that, which I can do. But I believe that it comes out of the projects waterfall as part of the project budget.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Because we do the same. I mean, like, we actually provide city loan, but then when the project is completed, when they turn keys, then it's no longer really a loan because now they actually have completed the project. So my assumption is what you're trying to say is it's very similar

[Christina Malamut (Budget and Legislative Analyst)]: approach.

[Andrew Strong (Project Manager, MOHCD)]: Yeah, it functions in the same way as the city. Wonderful.

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: Great. Thank you so much for answering the question. And with that, don't see any other name on the roster. We're ready to go to public comment on this item.

[Andrew Strong (Project Manager, MOHCD)]: Thank you.

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

[Brent Jalipa (Committee Clerk)]: Yes, we're now opening public comment for this both Items seven and eight. 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 and Finance Committee)]: Seeing no public comments, public comment is now closed. Colleagues, I also wanted to let you know that supervisor Mirna Malgar once wanted to join us today to express her support for this project in her district. She very much cares about it. Regrettably, she is or actually, not so much for us. We are we appreciate her representation and her leadership at m at MTC currently, and so she can't join us today. But, that is the sentiment that she would like to relate on these two items. So, therefore, with that, I would like to first amend the item as requested by the mayor's office of housing and community development for item seven. And with the amended version of item seven and eight, we will send these two items to full board with recommendation and a roll call please.

[Brent Jalipa (Committee Clerk)]: And on that motion that we accept the clerical amendment as so offered by the department and that we refer both resolutions to the full board with recommendation with item seven as amended. Vice chair Dorsey. Dorsey aye. Member Sauter. Aye. Sauter aye. Chair Chan.

[Deanna Volak (San Francisco International Airport)]: Aye.

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

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

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

[Supervisor Connie Chan (Chair, Budget and Finance Committee)]: The meeting's adjourned.