Transcripts For SFGTV BOS Budget And Finance Committee 20240

Chair fewer this is the june 3, 2020, meeting of the budget and finance committee. I am supervisor sandra lee fewer. My Committee Members are Shamann Walton and rafael mandelman. Madam clerk, do you have any announcements . Clerk yes. [agenda item read]. Chair fewer thank you very much, madam clerk. Can you please call item number 1. Clerk yes. Item 1, resolution authorizing the officer of the treasurer and Tax Collector to amend a software as a Service Agreement and support contract with citybase, incorporated, to extend to a fiveyear options period of two years each, for a new term of april 17, 2018 through april 16, 2023 and increasing the contract amount by 27,400,000 for a total amount not to exceed 37 millio million. Chair fewer if you very much, madam clerk. We have a representative from the treasurer and Tax Collectors office. Thank you so much, supervisor, for letting me speak about this contract. Im going to share my screen, and while i do that a little bit, im going to try to babble and give you some time. It is a contract with citybase. It allows us to do all of our online Payment Processing credit cards, debit cards, as well as echeck. This is a contract where the city is not actually allocating this contract awarded amount to citybase. The amount is really an effort to be incredibly transparent with you as well as to make sure we have really competitive processes. The fees that we pay citybase as a contract actually come from the revenue itself or are added by our constituents. Ill talk specifically about that and how it comports specifically in your daytoday life when you make purchases. Citybase is an online Data Platform thats used by the majority of our departments any time you do any kind of credit card payments, including taxes, fees, as well as in our Community Clinics or d. P. H. As well as our parking meters. It is serving as a gateway, which ill present later, as well as Payment Options right now. It is a very simple, clean method for people to pay to get their information quickly into the Payment Gateway and then allow them to pay obligations that are owed to the city for services or taxes. It allowed for visa, debit, and a. C. H. , as well. Were trying out an investment for our ability to do online payment. Its to, really, improve services for our constituents so they can pay for things, which is particularly helpful for shelter in place so they dont have to come into our place of business. As i tried to explain on the payment page, there are three ways we pay citybase. One is for taxes and fees, and in that case, we are adding a service fee on top of the tax and fee. Government entities are the only ones allowed to add a fee outside of the industry because its the only way that we can make sure that our services are reduced. Were not taking the service fee out of the principle owed to the city and sheet. Other things that are services such as electricity and dog license fees, there is no service fee. The department is paying that fee to citybase. Its akin to when you and i pay for something at a grocery store, we dont see what portion of that is going to the gateway provider, we just pay the amount. And then, we option have a free option for online payments, and that is echeck. A small portion of the payment, but a very large volume comes through echeck. Youre essentially putting on the digits from the bottom of your check where you would be putting in the back of your credit card information. To illuminate that a little bit better, there are two different ways that we experience a payment to a Credit Card Company just created to pay a tax sale. Lets say the bill is 110. The option to allow you to pay by credit card, theyre agreeing to add to that the 2. 4 or 2. 5, depending on the type of tax, theyre actively agreeing to add that 16 15. 28. That 15. 28 goes to citybase to pay for all of those mastercard and visa fees and the rest goes into our general fund. On the flip side, you have a fee, and because its a service, im paying 45. The 2 that i would be paying to citybase, or part of that 45, and then essentially, animal care and control is paying citybase the 2. The net effect for the city is 43, with 2 going to citybase to pay for visa and mastercard and all those other charges and 43 coming into the city. This will enable us to collect about 17 billion for the city and county. We estimate that the majority of the costs will be coming around 18 million of the 37 million will be coming from the constituents, so thatll be me paying my tax and adding and agreeing to that amendment. The other is when its baked into cost, like dog license, copayments, you know, parking meters, and such. So again, i want to reiterate that we are regulated by what we can add a service fee to and what we cannot add a service fee to. It is important, i guess, for the credit card industry that this option is possible. And then, obviously, we have the echeck that i spoke about. This is a completely free option for all online users to pay that dont have to you know, they dont have a credit they dont want to use their credit card because they dont want to pay the additional charge, they have a free option to pay it. That echeck option is a great option and probably highly utilized for tax fees for obvious reasons. This gives you a sense of transactions by department. I did not include t. T. X. Because obviously the average is so varied between business and property, so it wasnt as meaningful. And the purple, which you can barely see, is what the department or the taxpayer is charged. Chair fewer excuse me. Do you want to share a screen shot of that . Its not sharing it . Chair fewer no, were only seeing your face. Oh, my gosh im so ugly. Im really sorry. Excuse me. It is not is it sharing now . Supervisor fewer no. Clerk madam chair, we have a copy of the slide. Would you like me to try sharing the screen . Chair fewer miss shaw, would you care to have madam clerk share her copy on the screen . Yeah. Im really, really sorry, supervisor fewer. It just worked. We did it. Chair fewer here we go. Clerk do you know which slide . Can you advance it advance it its the graph with the bar chart. One more. Chair fewer can we pause on that one . Sure. Go back. Chair fewer yeah, yeah, let me look at this. So these are examples what were looking at here is People Animal Care and control, were using a dog license as an example, is that correct . What youre saying is someone would pay 45 for a dog license, and then the city gets 43 for it, and 2 goes to this company that allows them to use a credit card or debt credit card, is that correct . Yes. Chair fewer and then, on the business tax bill, the fee is a little higher, 2. 5 of the base fee or do so is the citybase fee 2 on all transactions . No. I can explain it a little bit. The industry determines the fee on the normal credit cards that are utilized to pay those items. So for property tax, for example, the fee is a little bit less if it tends to be Consumer Credit cards that are less expensive through the entirety of the banking and rural merchant. These are Mastercard Networks. If you think about our uses, we have cards that have rewards and mileage and then cards that have nothing. All of those benefits that we are afforded as consumers are paid for at this level. We gave them the power of utilization and transaction by card type as well as monetary value so we can get the most competitive rates out there. Unfortunately, you know, whif youre getting safeway not safeway, but a cup of coffee, the generate is 3. 5 to 4 , so the city is able to negotiate a favorable rate for ourselves and our constituents. Chair fewer so youre saying if youre using a card through a visa or Mastercard Network, its one fee, and its another fee if theyre using a card outside of the Mastercard Network . The rates fluctuate, so we have the normal rates for business tax and property tax, for services, so, you know, its not fluctuating type by type, so these are averages that we have. Its a 2. 5 at the average. That is the rate for business tax, and its dependent on the history of the types of cards that have been utilized for business tax. Chair fewer so would you then assume if youre using a different kind of card to pay that, then that fee may be higher . Yes. I know a lot of people have different kinds of cards. People use cards that often have miles frequent flyer miles, when we were able to travel. Those rates are normally higher than somebody using, say, their bank card, but this is the rate just for that type of so for business tax, its 2. 5 , for property tax, its 2. 25, which we were able to negotiate a better rate. Chair fewer so its not per card, its for individuals, all individuals in use. Correct. Chair fewer when you get into things like parking meters, for example, does that make a difference what card you use . That we were you know, we did a very competitive process with marking meters because obviously, you know, 40 cents for a tie, 2. 25 is really expensive for the city and m. T. A. So we put together what we call an m. T. A. Ticket, so theyre allowed a different pricing structure. Its a really small decimal percentage on the 1. 2525 or 1. 30 or 1. 40, depending on whatever were paying on our parking meters. So if you have phone apps on upay, you sometimes see pricing over the day,. 99,. 99, and that makes it cheaper for m. T. A. To process the day. If i use parking meters three times a day,. 25,. 35,. 35, im charged once, and that makes it easier for the city to be able to pay the industry. We were the first city to be able to do that. Chair fewer and what about people putting money on their surface cards . Surface cards are n clipp cards . Clipper® cards are not part of the larger municipal m. T. C. Contract, so its not part of this contract and not part of these pieces. I cant speak to that. Sorry. Chair fewer okay. Very interesting. Please continue. No, i apologize if we advanced. I think i know what happened. I had to request control, but i still havent been given control, which is a challenge, so i apologize. Can we advance one more . Chair fewer yes, lets go to the next page. I think i will need assistance. Chair fewer madam clerk. Great. Thank you. So this is just the average transaction costs by department except for the office of the treasurer and Tax Collector since the costs there are so varied. The purple shows you the cost in relation to what theyre paying for. So you can see that the fee is quite quite low. When i say that, again, some of these are fees that the constituent pays, and some of these are things that the department pays as part of the fee itself. Chair fewer miss shaw, so when people use their credit cards to pay their property taxes and things, are they advised that theyre being charged to do that . Yes. They actively have to affirm that theyre being charged the service fee. Only a few things have the added fee, which is only taxes and fees. Were only allowed to add fees to things that are taxes and fees so that the citys general fund or principle is not diluted because we have to take some of that money and pay for all of the inner change banking, visa, mastercard components of a credit card transaction, and we always have a free option, which is echeck, which is akin to putting in your credit card number, but its putting the digits on the bottom of your check in, and those are free on all the platforms, and its 29 cents by the city, and thats to make sure we have an online payment platform. And that is a very popular pay that people pay for taxes and fees around the city. If we didnt, credit card business would be very different. People use it because its free. A Credit Card Fee would be much more significant on a credit card charge. Chair fewer okay. And then, i think my next question is we werent able so i see how this is actually a service that makes it easier for people, but i also think that the company has an incredible client in the city and county of San Francisco. This is the best rate we can get . I think gouging people at this time and also, people feel more safer using a credit card also now on a lot of these transactions is that i actually feel im wondering why we werent actually able to negotiate a better rate on this than 2. 5 . 2. 5 might sound like a lot on property, but its actually a really competitive rate. Coffee shops and things that you buy are usually 3. 5 . Thats why some places that you go to say they wont accept a credit card payment unless you owe an amount over 10 because it costs so much for that service. Its one of the its fully funded the next day, and its as incredible tool that we use. It essentially means that the business is floating up the city and county because they havent cleared all the money thats been transacted upon. Chair fewer well, you know, and Credit Card Companies are charging 30 interest on balances that are unpaid, and so, i mean, theyre getting in bed with a huge thats corporation. Were just feeding that debt for them and that theyre collecting upwards sometimes of 33 interest on unpaid balances. But having said that, lets hear from any comments or questions from my colleagues . Are you through with your presentation, miss shaw . I think there is just one more slide to go forward with, which is really that this also affords a p. C. I. Compliance. What this means is if theres a breach, we are not we are protected around liability. As you can imagine, there are many attempts to break in allaround. The product is really easy to use and many departments quickly on boarding. Chair fewer okay. Thats it . Okay. Can we hear from the b. L. A. , please. Yes. Good morning, chair fewer, members of the committee. Severin campbell from the Budget Analysts Office. The proposed resolution thats before you approves the Second Amendment to the existing agreement between the treasurer and tact Collector Office and citybase for online services. It extends the agreement to 2023 and increases the amount from 27. 4 milli 27. 4 million b million to 37 million. There are some new transactions that are being added to the agreement. So we summarize these sources and uses of funds in table one of pages 4 and 5 of our report. That is consistent with city policy and city processes, so we do recommend approval, and im available for any questions that you may have. Chair fewer thank you very much. Any comments or questions from my colleagues at all . I have one more question, miss shaw. What are these new transactions that are going to be included in this . What are the new transactions . We are adding more d. B. I. Onto this. The recorder system has gone live. I think the county clerk is going to be going live. There are new Mayors Office of disability and board of appeals that are going live that will happen right now, within the next three months, and then, im sure there will be others as more of the planning and online centers go forward, and im sure theyll be added onto this platform. Chair fewer thank you. Seeing no queue, and no comments or questions from my colleagues, madam clerk, can you open this up for Public Comment. Clerk yes. Madam operator, can you please queue the callers on the line. Would the clerk let us know if there are any callers who wish to comment on this item . Operator madam chair, there are no callers who wish to speak. Chair fewer thank you, madam clerk. Public comment on item 1 is now closed. So colleagues, any questions or comments at all . I just want to say for the record that i understand that this is a service thats very important to the city and county of San Francisco. I also want to say that Credit Card Companies are gouging people, and theyre gouging the American People for multiple reasons. People who dont have other means of credit, people who dont have savings, so even though i know this is a service that were going to depend more and more on, i just have to say this on the record. This is immoral to charge people these high interest rates, and by doing this, we are also perpetuating that cycle of indebtedness and poverty, and i just want to say that i you know, i feel very reluctant on this today to vote on this and pass this out of committee because i think that people who are trying to recover will have an even harder time, and we know these Credit Card Companies tend to not give credit to many people in our community, that it is difficult for many people to get credit cards, and i think that there is an abuse of credit card use in our society. I know this is an important vehicle for the city and county of San Francisco to collect fees. It worries me, i think, that we are not able to get a better deal than this, and so my next question to you, miss shaw, is what are the other city and counties neighboring what type of transactions these are actually getting from the Credit Card Companies and are they using the same company . Yeah, thank you for the question. I do want to reiterate that we do have the free option, the echeck, for those very reasons, some of those that you mentioned. Chair fewer and what are their rates . We are finding that santa clara is piggybacking on this contract, as well as denver and austin. They are benefiting for themselves. Denver, austin, santa clara just agreed to the piggyback, not as a request by their own choice. They did a request for a contract, as well as seattle and another one, and im trying to think of any others that we know of. So our neighboring communities are looking at these contracts and finding the rates to be acceptable. We will continue to look at these and continue to be as transparent as possible with our rates. Chair fewer some of these cities are looking at these contracts and putting them in a Community Benefits package ask asking them or including it in optional, of course, for the people who get into these contracts to have a Community Benefit contract. So i would advise the city and county of Committee Members<\/a> are Shamann Walton<\/a> and rafael mandelman. Madam clerk, do you have any announcements . Clerk yes. [agenda item read]. Chair fewer thank you very much, madam clerk. Can you please call item number 1. Clerk yes. Item 1, resolution authorizing the officer of the treasurer and Tax Collector<\/a> to amend a software as a Service Agreement<\/a> and support contract with citybase, incorporated, to extend to a fiveyear options period of two years each, for a new term of april 17, 2018 through april 16, 2023 and increasing the contract amount by 27,400,000 for a total amount not to exceed 37 millio million. Chair fewer if you very much, madam clerk. We have a representative from the treasurer and Tax Collector<\/a>s office. Thank you so much, supervisor, for letting me speak about this contract. Im going to share my screen, and while i do that a little bit, im going to try to babble and give you some time. It is a contract with citybase. It allows us to do all of our online Payment Processing<\/a> credit cards, debit cards, as well as echeck. This is a contract where the city is not actually allocating this contract awarded amount to citybase. The amount is really an effort to be incredibly transparent with you as well as to make sure we have really competitive processes. The fees that we pay citybase as a contract actually come from the revenue itself or are added by our constituents. Ill talk specifically about that and how it comports specifically in your daytoday life when you make purchases. Citybase is an online Data Platform<\/a> thats used by the majority of our departments any time you do any kind of credit card payments, including taxes, fees, as well as in our Community Clinics<\/a> or d. P. H. As well as our parking meters. It is serving as a gateway, which ill present later, as well as Payment Options<\/a> right now. It is a very simple, clean method for people to pay to get their information quickly into the Payment Gateway<\/a> and then allow them to pay obligations that are owed to the city for services or taxes. It allowed for visa, debit, and a. C. H. , as well. Were trying out an investment for our ability to do online payment. Its to, really, improve services for our constituents so they can pay for things, which is particularly helpful for shelter in place so they dont have to come into our place of business. As i tried to explain on the payment page, there are three ways we pay citybase. One is for taxes and fees, and in that case, we are adding a service fee on top of the tax and fee. Government entities are the only ones allowed to add a fee outside of the industry because its the only way that we can make sure that our services are reduced. Were not taking the service fee out of the principle owed to the city and sheet. Other things that are services such as electricity and dog license fees, there is no service fee. The department is paying that fee to citybase. Its akin to when you and i pay for something at a grocery store, we dont see what portion of that is going to the gateway provider, we just pay the amount. And then, we option have a free option for online payments, and that is echeck. A small portion of the payment, but a very large volume comes through echeck. Youre essentially putting on the digits from the bottom of your check where you would be putting in the back of your credit card information. To illuminate that a little bit better, there are two different ways that we experience a payment to a Credit Card Company<\/a> just created to pay a tax sale. Lets say the bill is 110. The option to allow you to pay by credit card, theyre agreeing to add to that the 2. 4 or 2. 5, depending on the type of tax, theyre actively agreeing to add that 16 15. 28. That 15. 28 goes to citybase to pay for all of those mastercard and visa fees and the rest goes into our general fund. On the flip side, you have a fee, and because its a service, im paying 45. The 2 that i would be paying to citybase, or part of that 45, and then essentially, animal care and control is paying citybase the 2. The net effect for the city is 43, with 2 going to citybase to pay for visa and mastercard and all those other charges and 43 coming into the city. This will enable us to collect about 17 billion for the city and county. We estimate that the majority of the costs will be coming around 18 million of the 37 million will be coming from the constituents, so thatll be me paying my tax and adding and agreeing to that amendment. The other is when its baked into cost, like dog license, copayments, you know, parking meters, and such. So again, i want to reiterate that we are regulated by what we can add a service fee to and what we cannot add a service fee to. It is important, i guess, for the credit card industry that this option is possible. And then, obviously, we have the echeck that i spoke about. This is a completely free option for all online users to pay that dont have to you know, they dont have a credit they dont want to use their credit card because they dont want to pay the additional charge, they have a free option to pay it. That echeck option is a great option and probably highly utilized for tax fees for obvious reasons. This gives you a sense of transactions by department. I did not include t. T. X. Because obviously the average is so varied between business and property, so it wasnt as meaningful. And the purple, which you can barely see, is what the department or the taxpayer is charged. Chair fewer excuse me. Do you want to share a screen shot of that . Its not sharing it . Chair fewer no, were only seeing your face. Oh, my gosh im so ugly. Im really sorry. Excuse me. It is not is it sharing now . Supervisor fewer no. Clerk madam chair, we have a copy of the slide. Would you like me to try sharing the screen . Chair fewer miss shaw, would you care to have madam clerk share her copy on the screen . Yeah. Im really, really sorry, supervisor fewer. It just worked. We did it. Chair fewer here we go. Clerk do you know which slide . Can you advance it advance it its the graph with the bar chart. One more. Chair fewer can we pause on that one . Sure. Go back. Chair fewer yeah, yeah, let me look at this. So these are examples what were looking at here is People Animal Care<\/a> and control, were using a dog license as an example, is that correct . What youre saying is someone would pay 45 for a dog license, and then the city gets 43 for it, and 2 goes to this company that allows them to use a credit card or debt credit card, is that correct . Yes. Chair fewer and then, on the business tax bill, the fee is a little higher, 2. 5 of the base fee or do so is the citybase fee 2 on all transactions . No. I can explain it a little bit. The industry determines the fee on the normal credit cards that are utilized to pay those items. So for property tax, for example, the fee is a little bit less if it tends to be Consumer Credit<\/a> cards that are less expensive through the entirety of the banking and rural merchant. These are Mastercard Network<\/a>s. If you think about our uses, we have cards that have rewards and mileage and then cards that have nothing. All of those benefits that we are afforded as consumers are paid for at this level. We gave them the power of utilization and transaction by card type as well as monetary value so we can get the most competitive rates out there. Unfortunately, you know, whif youre getting safeway not safeway, but a cup of coffee, the generate is 3. 5 to 4 , so the city is able to negotiate a favorable rate for ourselves and our constituents. Chair fewer so youre saying if youre using a card through a visa or Mastercard Network<\/a>, its one fee, and its another fee if theyre using a card outside of the Mastercard Network<\/a> . The rates fluctuate, so we have the normal rates for business tax and property tax, for services, so, you know, its not fluctuating type by type, so these are averages that we have. Its a 2. 5 at the average. That is the rate for business tax, and its dependent on the history of the types of cards that have been utilized for business tax. Chair fewer so would you then assume if youre using a different kind of card to pay that, then that fee may be higher . Yes. I know a lot of people have different kinds of cards. People use cards that often have miles frequent flyer miles, when we were able to travel. Those rates are normally higher than somebody using, say, their bank card, but this is the rate just for that type of so for business tax, its 2. 5 , for property tax, its 2. 25, which we were able to negotiate a better rate. Chair fewer so its not per card, its for individuals, all individuals in use. Correct. Chair fewer when you get into things like parking meters, for example, does that make a difference what card you use . That we were you know, we did a very competitive process with marking meters because obviously, you know, 40 cents for a tie, 2. 25 is really expensive for the city and m. T. A. So we put together what we call an m. T. A. Ticket, so theyre allowed a different pricing structure. Its a really small decimal percentage on the 1. 2525 or 1. 30 or 1. 40, depending on whatever were paying on our parking meters. So if you have phone apps on upay, you sometimes see pricing over the day,. 99,. 99, and that makes it cheaper for m. T. A. To process the day. If i use parking meters three times a day,. 25,. 35,. 35, im charged once, and that makes it easier for the city to be able to pay the industry. We were the first city to be able to do that. Chair fewer and what about people putting money on their surface cards . Surface cards are n clipp cards . Clipper\u00ae cards are not part of the larger municipal m. T. C. Contract, so its not part of this contract and not part of these pieces. I cant speak to that. Sorry. Chair fewer okay. Very interesting. Please continue. No, i apologize if we advanced. I think i know what happened. I had to request control, but i still havent been given control, which is a challenge, so i apologize. Can we advance one more . Chair fewer yes, lets go to the next page. I think i will need assistance. Chair fewer madam clerk. Great. Thank you. So this is just the average transaction costs by department except for the office of the treasurer and Tax Collector<\/a> since the costs there are so varied. The purple shows you the cost in relation to what theyre paying for. So you can see that the fee is quite quite low. When i say that, again, some of these are fees that the constituent pays, and some of these are things that the department pays as part of the fee itself. Chair fewer miss shaw, so when people use their credit cards to pay their property taxes and things, are they advised that theyre being charged to do that . Yes. They actively have to affirm that theyre being charged the service fee. Only a few things have the added fee, which is only taxes and fees. Were only allowed to add fees to things that are taxes and fees so that the citys general fund or principle is not diluted because we have to take some of that money and pay for all of the inner change banking, visa, mastercard components of a credit card transaction, and we always have a free option, which is echeck, which is akin to putting in your credit card number, but its putting the digits on the bottom of your check in, and those are free on all the platforms, and its 29 cents by the city, and thats to make sure we have an online payment platform. And that is a very popular pay that people pay for taxes and fees around the city. If we didnt, credit card business would be very different. People use it because its free. A Credit Card Fee<\/a> would be much more significant on a credit card charge. Chair fewer okay. And then, i think my next question is we werent able so i see how this is actually a service that makes it easier for people, but i also think that the company has an incredible client in the city and county of San Francisco<\/a>. This is the best rate we can get . I think gouging people at this time and also, people feel more safer using a credit card also now on a lot of these transactions is that i actually feel im wondering why we werent actually able to negotiate a better rate on this than 2. 5 . 2. 5 might sound like a lot on property, but its actually a really competitive rate. Coffee shops and things that you buy are usually 3. 5 . Thats why some places that you go to say they wont accept a credit card payment unless you owe an amount over 10 because it costs so much for that service. Its one of the its fully funded the next day, and its as incredible tool that we use. It essentially means that the business is floating up the city and county because they havent cleared all the money thats been transacted upon. Chair fewer well, you know, and Credit Card Companies<\/a> are charging 30 interest on balances that are unpaid, and so, i mean, theyre getting in bed with a huge thats corporation. Were just feeding that debt for them and that theyre collecting upwards sometimes of 33 interest on unpaid balances. But having said that, lets hear from any comments or questions from my colleagues . Are you through with your presentation, miss shaw . I think there is just one more slide to go forward with, which is really that this also affords a p. C. I. Compliance. What this means is if theres a breach, we are not we are protected around liability. As you can imagine, there are many attempts to break in allaround. The product is really easy to use and many departments quickly on boarding. Chair fewer okay. Thats it . Okay. Can we hear from the b. L. A. , please. Yes. Good morning, chair fewer, members of the committee. Severin campbell from the Budget Analysts Office<\/a>. The proposed resolution thats before you approves the Second Amendment<\/a> to the existing agreement between the treasurer and tact Collector Office<\/a> and citybase for online services. It extends the agreement to 2023 and increases the amount from 27. 4 milli 27. 4 million b million to 37 million. There are some new transactions that are being added to the agreement. So we summarize these sources and uses of funds in table one of pages 4 and 5 of our report. That is consistent with city policy and city processes, so we do recommend approval, and im available for any questions that you may have. Chair fewer thank you very much. Any comments or questions from my colleagues at all . I have one more question, miss shaw. What are these new transactions that are going to be included in this . What are the new transactions . We are adding more d. B. I. Onto this. The recorder system has gone live. I think the county clerk is going to be going live. There are new Mayors Office<\/a> of disability and board of appeals that are going live that will happen right now, within the next three months, and then, im sure there will be others as more of the planning and online centers go forward, and im sure theyll be added onto this platform. Chair fewer thank you. Seeing no queue, and no comments or questions from my colleagues, madam clerk, can you open this up for Public Comment<\/a>. Clerk yes. Madam operator, can you please queue the callers on the line. Would the clerk let us know if there are any callers who wish to comment on this item . Operator madam chair, there are no callers who wish to speak. Chair fewer thank you, madam clerk. Public comment on item 1 is now closed. So colleagues, any questions or comments at all . I just want to say for the record that i understand that this is a service thats very important to the city and county of San Francisco<\/a>. I also want to say that Credit Card Companies<\/a> are gouging people, and theyre gouging the American People<\/a> for multiple reasons. People who dont have other means of credit, people who dont have savings, so even though i know this is a service that were going to depend more and more on, i just have to say this on the record. This is immoral to charge people these high interest rates, and by doing this, we are also perpetuating that cycle of indebtedness and poverty, and i just want to say that i you know, i feel very reluctant on this today to vote on this and pass this out of committee because i think that people who are trying to recover will have an even harder time, and we know these Credit Card Companies<\/a> tend to not give credit to many people in our community, that it is difficult for many people to get credit cards, and i think that there is an abuse of credit card use in our society. I know this is an important vehicle for the city and county of San Francisco<\/a> to collect fees. It worries me, i think, that we are not able to get a better deal than this, and so my next question to you, miss shaw, is what are the other city and counties neighboring what type of transactions these are actually getting from the Credit Card Companies<\/a> and are they using the same company . Yeah, thank you for the question. I do want to reiterate that we do have the free option, the echeck, for those very reasons, some of those that you mentioned. Chair fewer and what are their rates . We are finding that santa clara is piggybacking on this contract, as well as denver and austin. They are benefiting for themselves. Denver, austin, santa clara just agreed to the piggyback, not as a request by their own choice. They did a request for a contract, as well as seattle and another one, and im trying to think of any others that we know of. So our neighboring communities are looking at these contracts and finding the rates to be acceptable. We will continue to look at these and continue to be as transparent as possible with our rates. Chair fewer some of these cities are looking at these contracts and putting them in a Community Benefits<\/a> package ask asking them or including it in optional, of course, for the people who get into these contracts to have a Community Benefit<\/a> contract. So i would advise the city and county of San Francisco<\/a> treasurer and Tax Collector<\/a>s office to look into that. So i dont see this Credit Card Company<\/a> citybase, i think is its name. You say were getting a great deal. I think theyre getting a great deal. We are bringing customers to them. They dont need to advertise or anything, that every transaction, every service that we use in San Francisco<\/a>, the infrastructure that we pay for, all the parking meters that actually, theyre benefiting off of all of that. Theyre benefiting multiple times by the taxpayers of San Francisco<\/a>. They are benefiting also by these user fees for convenience, and theyre also benefiting when theyre charging upwards of 30 interest on people who cant afford this in their lives. Is there a time constraint on this contract, miss shaw . Yes. Supervisor fewe chair fewer and what is that . Its a contract with two extension options for two years. Chair fewer no, what is the time for the next r. F. P. . Its a tenyear limit, and we wont go back for r. F. P. Until we reach the tenyear limit. Chair fewer so this is an item that can be continued, is that what im hearing . Yes. It would mean that we would i would have to look at when we would hit the existing threshold to see if we can continue to do the collections that we have live right now. Chair fewer colleagues, what id like to have miss shaw do is investigate the transactions that are ongoing. Is that clear, miss shaw . Yes. I want to know if im answering your question correctly. If im chair fewer what im going to do is continue this to the call of the chair. Would that be a problem in renewing this contract . I would have to see when were going to reach the limit of fees on this contract, and then, if we reach the limit, when, and then, after that, the impact of that time to figure out when we could then continue the contract, right . Chair fewer would moving along here to item number 2 give you number time to check with people at the office to see if this is something that can be continued for further discussion next week . I will try, yes. Chair fewer okay. Madam clerk, can you please call item number 2. Clerk yes. Before that, madam chair, i see supervisor mandelman in the queue . Chair fewer okay. Supervisor manned wi mandelm . Supervisor mandelman yeah. I just want to be clear that this committee is uncertain about this contract. What im hearing and what im sympathetic, too, is concerns around encouraging people to use credit cards and the rates getting charged and whether this is a beneficial enough contract to the city, and im also hearing a desire not to take action on this today and to allow some of these concerns to get addressed or give us some time to think about it. So i think what were asking is, does that create a problem for you in the next week . Chair fewer yeah, and to be clear, supervisor mandelman, i think the questions i did ask miss shaw is within the weeks times are what are the rates that oakland is getting . What are rates that some nearersized cities are getting charged . What are our neighborhood counties getting . I understand that other cities want to piggyback onto us, but i would love to hear what kind of rates theyre getting from other people, like, for example, in the city of oakland, alameda county, for example, what kind of credit card rates are they getting . So i believe, supervisor mandelman, does that answer your question . Is that more clarification, and also, he has that clarified, and also, miss shaw, well come back to you after item number 2, so madam clerk, can you please call item number 2 now . Clerk yes. Item 2, emergency ordinance to delegate board of supervisors Approval Authority<\/a> under charter to city departments to amend certain existing agreements to comply with recommendations and requirements for potential reimbursement of funds from the federal Emergency Management<\/a> agency or the california Governors Office<\/a> of Emergency Services<\/a> for expenditures in response to the Public Health<\/a> emergency related to covid19. Members of the public who wish to speak, please call 14156550001. Then dial the access code, 926891085, press pound, and then pound again. If you wish to be placed in the queue to comment, press star, and then one. Chair fewer okay. Do we have mr. Bill barnes . Yes. Sorry. I dont have a presentation. The ordinance would allow departments to amend contract agreements that generate more than 1 million in revenue specifically for the purpose of adding fema requirements to those contracts. In order for them to get fema reimbursement, they have to meet certain requirements that the city and controller have produced. So in your committee packet, theres a memo issued april 22 by the city administrator that outlines those requirements. They include things like making sure you have an independent estimate, making sure youre using the right contracting procedures, and that type of work, and so all that information is in the committee packet. This ordinance would allow Department Head<\/a>s, with the agreement of the City Attorney<\/a>, only to add to these fema requirements to these contracts. So rather than coming back to the board of supervisors to amend each revenue agreements just to add the fema requirements, this would be authorized during the emergency. The Department Head<\/a> would have to certify that the expenditures are being made as part of the emergency, and then, the controller and City Attorney<\/a> would be able to seek reimbursement from cal fema and o. E. S. This is already the case for many contracts that dont come before the board, but relative to revenue agreements, the advice was we would have to come back on each revenue agreement, rather than the emergency addition that allows us to add fema resources citywide and make sure were in the best positions to have state and federal departments reimburse us. Im happy to answer any questions you have on this. Chair fewer thank you. Theres no b. L. A. Report on this. Colleagues, do you have any questions . Seeing none, mr. Barnes, i would wonder if we can have a report that lists all the changes made to contracts . We would be happy to report on a realtime basis. Not at the end of the emergency, but we can do that on a realtime basis, say, every week. Chair fewer okay. That is something you can do. No comments or questions from any of my colleagues, so can i please call for Public Comment<\/a> on item number 2 . Clerk yes. Madam chair, operations is checking to see if there are any callers in the queue. Operations, please check to see if there are any. If you have not already called in, please call in and enter the access code. If you have already called in, please press starone to be added to the queue. Operator madam chair, there are no callers wishing to speak. Chair fewer thank you very much. Public comment is now closed on item number 2. I would say that this id like to make a motion no comments or questions from my colleagues . Seeing none, id like to make a motion to move item number 2 to the board with a positive recommendation with the agreement that they will supply the board of supervisors with reports on changes made to contracts on a as sort of an ontime basis and also at the end of the emergency ordinance. Thats correct. Clerk for clarification, madam clerk, would you like to formally amend the emergency ordinance to include those amendments . Chair fewer i think we would have to, is that correct . Is the City Attorney<\/a> with us today . Good morning, chair fewer, members of the committee. If youd like to amendment the resolution to add those reporting requirements, that can be done. My recommendation would be that we do that as a full board so that we have time to prepare them. If you move the item and send it to the full board, we can do them there and so there wont be any subsequent delays. Chair fewer that would be great. So i would like to make a motion to move this to the full board. Madam clerk, can i have a roll call vote, please. Clerk yes, on the motion to move the item forward to the board [roll call] clerk there are three ayes. Chair fewer thank you, mr. Barnes. Lets go back to item number 1. Miss shaw, are you back with you with the answer . The contract as stated is a cap of 9 million. We will be at the cap, we were estimating, by the end of june, so we would be unable to continue Services Effective<\/a> july if we are not able to move forward with the contract. Chair fewer so if we were to continue this a week, we would be able to continue the timeline of getting this to the full board and out the door by july 1, is that correct . I believe so. Chair fewer so miss shaw, id like to continue this item for one week, and if you could bring back to this committee the rates that other neighboring committees jurisdictions are using, that would be great. And i understand that this is a need that makes actually a lot of peoples lives easier but in reality actually makes peoples lives a lot harder. So id like to make a motion to continue this item to the next meeting of the budget and finance committee. I made a motion. Could i have a roll call vote, please. Clerk on that motion [roll call] chair fewer thank you very much, miss shaw. Thank you. Chair fewer madam clerk thank you very much. Can you please call items number 3 and 4 together. Clerk yes. Item 3, resolution approval amendment number 3 to the agreement between the San Francisco<\/a> aids foundation and the department of Public Health<\/a> to provide hiv Prevention Services<\/a> through citywide syringe access and did i see Posal Services<\/a> to increase the contract amount by 6. 5 milliontor a total amount not to exceed 42 million with no change to the contract term. And item 4, resolution proofing an amendment to an zbreemt between the department of Public Health<\/a> and the San Francisco<\/a> Public Health<\/a> foundation for Program Administration<\/a> and support services for the San Francisco<\/a> sugary drinks distributor project. Members of the public who want to provide Public Comment<\/a> should call 14156550001, and then enter access code 926892085. Press pound, and then pound again, and pretty starniss st be entered into the queue. Chair fewer on this item, id like to continue this item to the request of d. P. H. , so i h had so id like to continue this to the call of the chair. Clerk madam clerk, would you like to have Public Comment<\/a> . Chair fewer yes. Clerk operator, could you please let us know if there are callers in the queue. Operator yes, i have one caller. I will go ahead and unmute. Hello. Chair fewer welcome, caller. Hi. I want to, first of all, say thank you to sandra lee fewer for ther proposal to make jail calls free, and your continuance of the first item. And i also am here to express my opinion about policing. We need budget reform right now in San Francisco<\/a>. I believe that ignoring the calls of the people right now is ignorant, inflammatory, and discriminates against more san franciscans. Supervisor fewer excuse me, caller. We are dealing with items 3 and 4, which deals with the San Francisco<\/a> aids foundation and the San Francisco<\/a> sugary drinks distributor process. I think youre yes. I just wanted to make sure that thats included, and to make sure that the people of the San Francisco<\/a> know, so this seems like an opportunity to be having my voice heard. Chair fewer oh, at 1 00, well be convening a hearing of the budget and Appropriations Committee<\/a>, and thats where well be hearing about the next rebalancing plan. And maybe item number 1, which is nonprofit sustainability in the age of covid19, you might want to give those comments in the age of nonprofit organizations over police funding. Okay. Great. Thank you. Would i find this on this same link . Chair fewer yes, i believe. Madam clerk . Madam clerk is nodding yes. Thank you for joining us today. Thank you. Chair fewer thank you very much. Any other speakers in the queue . Operator no, madam chair. That completes the queue. Chair fewer thank you very much. Public comment is closed for item 3 and 4. Id like to make a motion to continue items 3 and 4 to the call of the chair. Madam clerk, roll call vote, please. Clerk on the motion [roll call] clerk there are three ayes. Chair fewer thank you very much. Madam clerk, can you please call item number 5 . Clerk yes. Item 5, resolution declaring the intent of the city and county of San Francisco<\/a> to reimburse certain expenditures from proceeds of the future bonded indebtedness, authorizing the director of the Mayors Office<\/a> of housing and Community Development<\/a> to submit an application and related documents to the California Debt Limit Allocation Committee<\/a> to permit the issuance of mortgage Revenue Bonds<\/a> in an for 55 mason street and 216 eddy street. Chair fewer thank you very much. I believe today we have Carolyn Mccormick<\/a> with us from mohcd. Yes. Good morning, chair fewer and supervisors walton and mandelman. Im Carolyn Mccormick<\/a> from the Mayors Office<\/a> of housing and Community Development<\/a>, and i will be presenting on actually items 5 and 6, the proposed issuance for the item for ambassador risk and the yosemite folsom door, and i wont be using a powerpoint for this presentation. The purpose of the resolutions are to approve the hearings the city conducted on may 11, 2020 in order to comply with the federal tax equity and financial responsibility act, or tefra, including the submittal of applications to the California Debt Limit Allocation Committee<\/a> to secure an allocation of bonds to make the projects happen. The proposed bond issuance will be conduit financing and not require the city to pay any of its funds for the repayment of the bonds. There are two different projects up for your consideration. The first is the ambassador writs. The ambassador writs will involve the rehabilitation of two buildings located at 55 mason street and 216 eddy street. All of those are single room occupancy units. We are pursuing a unique financing structure where a portion of the units will be utilizing a 4 rehabilitation and acquisition credits and another portion of the project will be pursuing a 9 allocation for the city and county of San Francisco<\/a> geographic set aside. And this particular request is related to the bond allocation, so the 4 component. The project team anticipates that approximately 187 units will be allocated to the 4 portion. This bond allocation will cover the project rehabilitation, projects in need of some pretty significant life safety upgrades, including seismic upgrades, upgrades to needed kitchen and baths and other life safety related improvements. 100 of the units will be affordable to households earning no more than 100 of sfami. 89 of those units will be set at 80 of sfami. Temporary offsite relocation will be required in order to rehabilitate inside of the units, so that is ambassador writs. Yosemite folsom door, its located at 480 eddy street and 75 dore street chair fewer excuse me. Madam clerk, you only called item number 5, correct . Clerk yes. Chair fewer can you call item number 6 because we are getting a presentation on item number 6 hold on. Are we able to call item number 6 at this time . Clerk yes, we are. Chair fewer okay. Go ahead. Clerk item number 1 is a resolution declaring the intent of the city and county of San Francisco<\/a> to reimburse certain expenditures from proceeds of future bonded indebtedness, authorizing the director of the Mayors Office<\/a> of housing and Community Development<\/a> to submit an application and related documents to the California Debt Limit Allocation Committee<\/a> to permit the issuance of Residential Mortgage<\/a> Revenue Bonds<\/a> for 480 eddy street and 75 dore street. Chair fewer thank you, madam clerk, and for our listening public, we will be calling Public Comment<\/a>, then, for items 5 and 6 together. Miss mccormick, please continue. I believe you were now addressing item number 6. Yes, thank you, and i apologize for not clarifying that earlier. So yosemite folsom door is also a rehabilitation of two existing buildings, and those buildings are located at 480 eddy street and 75 dore street in the tenderloin. That is compromised of 64 studios, 40 one bedrooms, and 80 two bedrooms. It will cover a major upgrade, so seismic updates, accessible kitchens and bathrooms, so making the building safer and just kind of doing a major rehab. It will be affordable to households making no more than 10 100 sfami. Similarly, no residents will be displaced as a result of the rehab, but there will be temporary offsite relocation needed in order to rehab inside of the units. In terms of the schedule for the projects, mohcd will return for bond approvals in late 2020. Ambassador writs is anticipated to close in april 2021 and for yosemite folsom door, its expected to close in 2024. Thank you. Chair fewer i think oh, colleagues, any comments or questions . There is no b. L. A. Report on this, so for these projects, 55 mason street, 215 eddy, 480 eddy, and 75 dore, what is the average a. M. I. For these tenants . Sure. Let me pull up these project descriptions. Yeah. So the average a. M. I. For yosemite folsom door is about 65 . And then, for ambassador writs the ambassador writs, it looks like its about 65, as well, but i can also doublecheck and get back to you on that, but those are the averages. Chair fewer its about 65 of the a. M. I. Averaging out, even though theyre all 100 theyre all under 100 a. M. I. , is that correct . Yes. Chair fewer any comments or questions from my colleagues . Seeing none, lets open up Public Comment<\/a> for item number 5 and item number 6. Madam clerk, youre on mute. I think youre muted. Clerk my apologies. Madam chair, operation is checking to see if there are any callers in the queue. Operation, please let us know if there are callers that are ready. If you have not already done so, please press star nine to be added to the queue. For those already on hold, please continue to wait until the system indicates you have been admitted. Mr. Chu, please let us know if there are any callers who wish to comment on items 5 or 6. Clerk madam chair, there are no callers wishing to speak. Chair fewer thank you very much s. Public comment is now closed on items number 5 and 6. Id just like to make a comment so i want to speak on this in my district. Lets move these two items 5 and 6 to the full board with a positive recommendation. Could i have a roll call vote, please. Clerk yes. On that motion [roll call] clerk there are three ayes. Clerk thank you very much. Madam clerk, can you please call item number 7. Clerk yes. Id number 7 resolution approving the as amended, the issuance and sale of Residential Mortgage<\/a> bonds by the city in an aggregate principle amount not to exceed 80 million for 2340 san jose avenue. Chair fewer thank you very much. So i think im going to be introducing lydia enright, but it looks like are you lydia . Yes. Can you hear me . Chair fewer yes, lydia eagleeyes from mohcd. Is supervisor safai in attendance . I wanted to recognize him if hes here. Supervisor safai . Okay. Maybe not. Miss eagleeyes, please standard. [inaudible] my name is lydia ealey. Im the acting director at mohcd, and im presenting on 2340 san jose avenue, which is also known as balboa park upper yard. As similar to the presentation made by my colleague, Carolyn Mccormick<\/a>, were presenting this resolution for you today for the approval of the hearings that the city conducted may 12 in compliance with the tax Equity Financial<\/a> report act or tefra and some bond applications later. That includes debt limit allocation committee, and a number of other allocations, and other activities that take place at mohcd. Thisll be an 80 million bond issuance, and this is conduit financing. Theres no obligation by the city for payment. The obligation goes to the developer. This is an exciting project. Its 141 units at the southwestern side of geneva and san jose. Were going to have a Family Education<\/a> center, a Family Wellness<\/a> center, and some Community Serving<\/a> retail. Two thirds of the units are going to serve households earning up to 50 of the San Francisco<\/a> a. M. I. The remaining onethird of units will also be affordable for households up to 80 of the a. M. I. Out of the affordable units, were going to have 39 units subsidized with a housing voucher that will be set aside for residents at sunnydale. This is an option for households who opt to move into the new units at the upper yard site. As folks might know, the site is currently being used by our department of homelessness and Supportive Housing<\/a> as a vehicular triage center. Thats going to be in place until the end of this year, and the land and jurisdiction will transfer back to mohcd for development. So well be back before the board later this year for our bond issuance and approvals. So on behalf of our office and the project sponsor, which is related california, with mission housing, i would like to thank you for your consideration. Im happy to take any questions. I do think we have representatives from related available via the Public Comment<\/a> line, not via the team connection. Chair fewer thank you very much. I see that supervisor safai has joined us today. Do you have any comments that you would like to add to this . Supervisor safai yes, thank you chair. Its hot out here today. Sometimes im a little formal, but ive got a tshirt on today, so thats good. I just wanted to say thank you for the opportunity to say a few words. This is a project that we have spent a considerable amount of time focusing on from the minute that i came into office as was presented by mohcd. We were the first site in the city to do safe parking. I was just at the site a few minutes ago. Its working exceptionally well. Weve been able to transition people into transitional housing, so thats been working really well, and this particular this particular site is extremely important in that this will be the first affordable Family Housing<\/a> development ever built in district 11. We have this one and the valenci funeral home. Ive been on the phone for the last month with the state office of finance as well as related, one of the main project sponsors, to ensure that we are given strong consideration for this bond financing allocation and then made available in the next round of tax credit allocations. When we came into office, this project was anticipated to be built maybe another year or two out, but i want to thank and acknowledge the mayor for working with our office to do a local match significantly, and i know that were going to talk about that later in the budget agenda later today, but this project and the valencia funeral home represent over 260 units of Affordable Housing<\/a> for families that have never had that opportunity in our district. So i want to thank mohcd. I know that this is an application for bond financing. We support that, and weve been doing that. And i want to also state for the record very clearly that this project has never lost any money. The one at the valenci funeral home has never had any money taken away from it, but in fact has had the support of this budget chair, has had the support of the mayor, and has had the support of the community to move this forward in an accelerated fashion, particularly with the funding we got with the support of the mayor and this budget chair last year. Thank you very much, and i appreciate the presentation. I know this is a formality, but i also wanted to set the record straight because theres some confusion out there in the public in terms of the support for this project and funding for this project out there, so thank you, madam chair. Chair fewer yes. Thank you very much for joining us. Colleagues, any comments or questions . Seeing none, madam clerk, can we please take Public Comment<\/a> on item number 7 . Clerk yes, madam chair. Operations is letting us know if there are any callers in the queue. If you have not already done so, please press starnine to be added to the queue. For those already in the hold, please continue to wait until the system indicates you have been admitted. With the current set up, any callers who wish to comment on item number 7 . Operator yes, i have one caller. One second, please. Chair fewer welcome, caller. Hi. My name is can you hear me okay. Chair fewer yes, we can. My name is gina, and ive lived in San Francisco<\/a> my entire life. I currently live in the excelsior district, and i grew up in ingleside by balboa park. I am a disabled welfare recipient and just knowing that more affordable options are going to be happening in my neighborhood means a lot. And then, i also had a question to pose. Im sorry. I am forgetting names, but the woman who was speaking at the Housing Project<\/a> at balboa mentioned sunnydale and specifically mentioned the setting aside of 39 units, and my understanding was that the sunnydale projects house a lot more than 39 units, and i just am wondering what is going to be done to address the conditions at sunnydale because its been terrible there for many decades, and yeah, i feel like many more than 39 families are going to be needing new digs. So i just wanted to see whats happening with that. Chair fewer thank you very much, caller. We will address your comments at the public yeah. Operator that completes the queue. Chair fewer yeah. No one else in the queue . Operator that is correct. Chair fewer okay. Public comment is item number 7 is now closed. Miss ealey, maybe youll answer the callers question about the 39 units set aside for sunnydale. Certainly. Happy to do so. Thank you for the question, its an excellent question. The sunny the revitalization of the sunnydale housing is part of the hope s. F. Program that will replace all of the Public Housing<\/a> and add Additional Units<\/a> and affordable units over the next 10 to 15 years. The replacement of units is already underway at sunnydale. We have already completed 55 units and have 139 under construction. The 39 units that i have pointed out today is a very small number of units that need to be replaced. What were doing is offering folks, as i said, at their option, the opportunity to move offsite if they so desire. It its going to take us so many years to repair and replace all the sunnydale units. This is a small number of Units Available<\/a> foor a large number of households, but the good news is the sunnydale revitalization project is well underway and showing great progress. Chair fewer thank you, miss ealey. Supervisor safai, i have a question, if you dont mind. Supervisor safai yeah. Chair fewer so this project at 2340 san jose avenue is not going to be jeopardized by the mayors balancing plan . That is exactly right. Initially, when we found there was going to be a need to balance our sources, we found other sources within the pipeline budget and had dedicated those for this project, so theres no need for anyone to be concerned that we dont have the funds for this project. As supervisor safai pointed out, its a huge priority for the city and for our office, so rest assured, the project is unharmed by that recent rebalancing. Chair fewer thank you very much. Supervisor safai . Supervisor safai yes, yeah, i just wanted to say a couple of things. So one, i started my career in this city working for the Housing Authority<\/a>. Im very authoriproud to have former Housing Authority<\/a> commissioner. When we were working with the Mayors Office<\/a> of housing, the mayor mayor, and the stakeholders, we wanted to do our share to help and allow families in Public Housing<\/a>. This wont be the only site in our district the valenci funeral home will have some Housing Residents<\/a> from potrero hill and sunnydale have some units set aside for them. I think when youre thinking, sunnydale has almost 800 units 770 almost 770 units. Its the largest Public Housing<\/a> site in the citys portfolio. Potrero hill, if you add the annex and main site together, its also one of the largest. So the idea of relocating hundreds of families all at the same time is not really an option, but theyre doing it in phases. So when Affordable Housing<\/a> comes online, i think Mayors Office<\/a> is giving the option of relocating. We fully embrace that and think thats a very nice way to transition families rather than have them be relocated into different places, but they have the option of moving into brandnew mixed income Affordable Housing<\/a>. The other thing i wanted to say, and im glad that you asked that question, this isnt the first time that these projects and this project in the city have had to switch out some funding. Its a normal part of the process. As projects come online, sometimes, the Mayors Office<\/a> of housing has to shift funding around. Back in 2018, they did that because their 88 broadway in district 3 was ready to come online and our project was still going through the planning and entitlement phases, and so but we were able to gain that and accelerate the project by one sb 30 which allows for the acceleration of entitlement and review. Thats one, and then two, as i said in my at the sastatements when you and the Mayors Office<\/a> and i got together, we ensured that this 2340 would get one of the gap fundings as needed. That helped us applying for different state financing to kind of close the funding out for both of these projects. So id like to set the record straight in that regard because switching money doesnt mean youre losing money, and in fact, this project has been accelerated in a good fashion. So thank you for the opportunity to stay a few words, chair. Chair fewer and the budget director is joining us. Kelly, did you want to add anything to the presentation . Did you want to add yeah, no, i just wanted to affirm what the supervisor said and share that were all on the same page, that the rebalancing does not jeopardize the project at all and make sure that we were all on the same page. Chair fewer thats great. So hearing that assurance, i would say lets make a positive recommendation to the full board, and could i have a roll call vote, please. Clerk yes, on the motion that supervisor fewer to send this item to the full board [roll call] clerk there are three ayes. Chair fewer yes, supervisor . Supervisor safai thank you, committee. Thank you, chair fewer. Appreciate it. Chair fewer madam clerk, can you please call items 8 and 9 together. Clerk yes. Item 8, resolution retroactively authorizing the Airport Commission<\/a> to accept and expend a grant in an amendment not to exceed 7 million and any additional amounts up to 15 of the oeshlg grant that may be offered from the federal Aviation Administration<\/a> for the continuation and expansion of the noise insulation program, contingent on receipt by the Airport Commission<\/a> of a grant offer from the federal Aviation Administration<\/a> for the period of october 1, 2019 through september 30, 2024. Item 9 is a resolution retroactively authorizing the Airport Commission<\/a> to accept and expend a grant in the amount of 254 million plus additional amounted up to 15 of the original grant amount that may be offered, from the federal Aviation Administration<\/a> for any purpose for the period of january 20, 2020 through january 19, 2024, contingent on receipt by the Airport Commission<\/a> of one or more grant offers from the federal aviation commission. Chair fewer thank you very much. We have miss widener. Good to see you, kathy. Thank you, chair fewer, members of the committee. Kathy widener with the San Francisco<\/a> international airport. The two items before you for consideration are both part of the federal coronavirus aid and security act. Item number 8 is the airports noise insulation program, which is the expansion of the federal share of the existing airport improvement grants, and item number 9 is an accept and expend of s. F. O. s allocation of the airport c. A. R. E. S. Grant in the amount of 254. 7 million, which is s. F. O. S portion of the grants money that takes into account airport debt service. Item number 8 is an accept and expend for the airports noise insulation program, with a total budget of 12. 7 million. Prior to the award of the additional c. A. R. E. S. Money, the Airport Commission<\/a> could award up to 7 million. With the expansion of the funds, the federal Aviation Administration<\/a> will fund 5. 2 million, and the c. A. R. E. S. Will fund an additional 2. 8 million. Additionally, the airport required matching fund was reduced by 500,000. Due to the increased funding by the c. A. R. E. S. Grant, after the original item was introduced, the airport is requesting that the resolution be amended to reflect the updated amount as well as to include c. A. R. E. S. Grant language and conditions. A copy of the amended resolution has been provided to the clerk, and the budget analysts report has a recommendation to approve and reflect the higher grant totals. The airports excuse me. A copy of the amended resolution has been provided to the clerk, but i would be happy to send that to the committee, as well. The second item is item number 9, its a grant accept and expend s. F. O. S portion of the c. A. R. E. S. Act. As stated in the airports Financial Recovery<\/a> plan which was shared with the Committee Last<\/a> month. S. F. O. Will use the grant funds to pay for debt service on general airport Revenue Bonds<\/a>. A budget analysts report is not required since there is no matching requirement with these moneys. The airports finance team is currently projecting a 364 million shortfall through fiscal year 21, request a conservative estimated recovery by fiscal year 2223. The 254 million in c. A. R. E. S. Grant funding will apply to this shortfall. The rest will be covered through identified contract reductions from projects that have been deferred and potentially through p. S. C. Revenues. The Budget Analysts Office<\/a> does recommend approval on the a. I. P. Grant, and i would be happy to answer any questions you have on either of the grant items at the airport. Chair fewer i see there is an amendment mentioned that will be presented. [inaudible] yes. The budget and legislative Analysts Office<\/a> report does include the higher grant amount. Basically, we have substituted the higher amount in the funding that has become available through the expanded a. I. P. , so we took the original not to exceed amount of 7 million and increased it to 7,077,0 7,077,039, which is available. Chair fewer so im seeing that this amount is not substantive. Ill let the City Attorney<\/a> answer, but its the amount thats being increased. Correct. Chair fewer and may we hear from b. L. A. , please. Residence. Severin campbell, b. L. A. It commits the airport to 5 million in matching funds, so this project would be 12. 8 million. We summarized the sources and uses in our table on page 22 of our report. As you see here, of this amount, 5. 2 million is from an f. A. A. Grant. Another additional nearly 2. 6 million is from the c. A. R. E. S. Act, and 5 million is from airport Revenue Bonds<\/a>. And as i understand, i just want to make sher, the 2. 6 million in c. A. R. E. S. Act funds is separate from whats being requested in the subsequent legislation. Miss widener is correct, we commented on the resolution being introduced to this committee, and we recommend approval. Chair fewer thank you very much. Any comments or questions from my colleagues on items number 8 or 9 . Seeing none, lets open this up for Public Comment<\/a>. Clerk yes, madam chair, operations is checking to see if there are callers in the queue. If you have not already done so, press starnine to be added to the queue. For those already on hold, please wait until the system indicates you have been unmuted. Mr. Chu, let us know if there are any callers who wish to comment on items 8 or 9 . Operator madam chair, there are no callers wishing to speak. Chair fewer thank you very much. Public comment on items 8 and 9 is now closed. So we need to approve an amendment, is that correct, madam clerk . Clerk yes, on item number 8. Chair fewer so i make a motion to approve the amendment presen presented on item number 8. Could i have a roll call vote, please. Clerk on the amendment [roll call] clerk there are three ayes. Chair fewer now, id like to make a motion to move number 8 and number 9 to the full board, and could i have a vote on that, please. Clerk yes. On the motion [roll call] clerk there are three ayes. Chair fewer thank you, madam clerk. Madam clerk, is there any further business before us today . Clerk theres no further business. Chair fewer okay. This meeting of the budget and finance committee is now adjourned, and i will see everybody in the budget and finance Appropriations Committee<\/a> meeting at 1 00, and thank you, madam clerk. The meeting will come to order, the june 3, 2020 budget and appropriations. Im sandra lee fewer and the chair and the Appropriations Committee<\/a>. And im joined by supervisors walt on and haley ronen and soon to be joined by su","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia803205.us.archive.org\/3\/items\/SFGTV_20200605_133000_BOS_Budget_and_Finance_Committee\/SFGTV_20200605_133000_BOS_Budget_and_Finance_Committee.thumbs\/SFGTV_20200605_133000_BOS_Budget_and_Finance_Committee_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}