Mandelman and yee. I would like to thank sfgovtv for broadcasting this meeting. Madam chair, any announcements. Clerk due to the covid19 Health Emergency and to protect board members, the City Employees and the public and the and Public Comment is available on each item on this agenda and both channel 26 and fof fof. Org and our streams the number across the screen. You can call 1 415 6550001 and 926891085 code. Again, 1 415 6550001, and then press pound and pound again. And you will hear the discussions that you will hear music and be in listening mode only. And when the item of interest comes up star star, 9 to be added to the speaker line. And you can email comment to myself at linda. Wong sfgov. Org. And if you submit Public Comment via email it will be forwarded to the board of supervisors and it will be included as part of this file. Madam chair this concludes my announcement. Supervisor fewer thank you very much, madam clerk. Call item number 1. Clerk the status of nonprofit sustainability in the impact of covid19 on nonprofit staffing and funding and programs and services and the role of the city in supporting the Nonprofit Sector and requesting the office of the controller and mayors Budget Office to report. Members of the public can provide Public Comment and should call the 1 415 6550001 and access code 926891085. And then press pound and pound again. If you have not already done so, please dial star, 9 to line up to speak. A system indicates that you have raised your hand and wait until the system indicates that you have been unmuted and you may begin your comments. Supervisor fewer so today we have mr. Ben rosen field, our city controller and the mayors Budget Office, and wes light list hiet . Is that how we announce your name . Im sorry, youre on mute. Did you say i think youre on mute. Lifeheight, like life how you live and height, how tall you are. Supervisor fewer from the indiscernible and the office of economic and Workforce Development. I believe that you have a Powerpoint Presentation for us, each of you . Or not . Yes, madam chair. Supervisor fewer thank you very much, mr. Controller. indiscernible . Supervisor fewer yes. Madam chair and members of the committee, thank you for having us here today. Im the city controller. We have a short presentation to walk through related to some of the citys work with supporting nonprofit organizations and ill start off and hand it over to my colleague and the Mayors Office and the office of economic and Workforce Development for pieces of the presentation. To start off, as you know, the nonprofit organizations provide over a billion dollars of Critical Service that is kind of at the backbone of a lot of the citys provisions across a wide array of Different Service types. To do that work your credits with over a dozen City Departments and so part of my offices role is to help with some coordination of that process of doing business with the city. And so part of the work that we do from the Controllers Office is to help to standardize how the departments work with nonprofit organizations. Some examples in recent years, in recent months we have been working to standardize the policies that are specific to covid19. We have issued several directives out to the departments related to that which ill talk through. As you know, madam chair, last year we worked through a process to help to implement the minimum compensation change that the board adopted and funded. And then we also do work weektoweek and monthtomonth, on kind of smaller issues involved with the administration of that relationship between nonprofits and the city. Things like cost categorization in their contracts and how the rates get calculated across the city and those sorts of things. We do have a nonprofit Monitoring Program that our office administers working with the contracts departments. Our hope there is to make that process more efficient for both the city and the nonprofit organizations to have clear standards and processes by which monitoring happens. And then, secondly, to provide the services to nonprofit organizations that need them. So to talk through a couple of the policies that we have put in place during this current emergency period, within a few days of shelterinplace commencing we had a policies, and our hope was to support the sustainability of nonprofits during this highly unusual circumstance. And through direction to the departments to continue to provide full or partial payment in the event that nonprofit organizations Service Delivery was interrupted as a result of the emergency. So as you know, Many Service Providers have remained open with new demands on them during this emergency. And while others have been required to close their programs and the purpose here with this policy was to ensure that we did not cut city payments to providers that are unable to provide services during this period of time. And then to jeopardize their sustainability. And we have also worked on more administrative issues and anticipating how challenging this moment is on administrative finance and other staff and nonprofit organizations and the city. One example of that, the beginning of a fiscal year is typically a challenging time of nonprofit organizations and the city. Because we have a lot of work to do on both sides of that relationship to put new contracts in place is timely so that we dont see service or payment around the cutover when you cut from one contract to another. So recently we issued guidance to departments to allow them to modify their contracts around the fiscal year cut over and to help to ensure that we dont have interruptions of payment or services for a period. So this is a new allowance that is provided during this emergency period to nonprofit organizations and City Departments to help to ensure that fiscal year cutover goes as swiftly as it can. We do provide indiscernible services to the nonprofit organizations. We continue to do that during this period of time, even remotely. We do have upcoming workshops that are available to nonprofit organizations on various portions of Financial Management practices coming up in over the next two weeks. We do provide oneonone coaching and assistance to nonprofit organizations and will sometimes arrange for nonprofit organizations having issues to receive contracted help in an area of weakness or where they need focus. And i will briefly touch on the m. C. O. , i know that this committee is very familiar with it. A bit over a year ago the city did adopt changes to the minimum compensation ordinance that increased the wages for nonprofit organizations. Minimum wages to 16. 50 an hour in july 2019. And then that applied to most nonprofit organizations that we do business with. So those with five or more employees or more than 50,000 in funding. The board and the mayor appropriated 5. 8 million to implement the cost of that program in the first year and our office allocated that in a rational way across all of these departments to provide the contracted nonprofit providers services. We completed that distribution of funds and that those funds will now be moved into the Department Budgets and indiscernible that went into effect last year. I know that you will have the interim budget before you next week at this committee. The Mayors Office has proposed a pause on the n. C. O. Increase that otherwise would have gone into effect on july 1st of this year so that decision can be made with the full budget picture in august and september by the mayor and the board. Supervisor fewer thank than. Thank you, ben. I wanted to touch on another investment in nonprofits. Over the last five years the city has been able to allocate over 190 million in costofbusiness increases to nonprofit providers. And similar to the n. C. O. That ben mentioned previously, the ability to fund the increase for the upcoming fiscal year would be considered as part of the larger budget context in those conversations that well have over august through october. And with that ill turn it over to the next indiscernible to discuss programs that her department runs. Sure. Good afternoon, madam chair and members of the committee. Im the Senior BusinessDevelopment Manager in the office of economic and Workforce Development. Last year, as you know, you have heard from the controller that the city invests sizeable amounts close to 900 million in transactional funding for nonprofits for services and resources to advance its ongoing strategies. And the controller just addressed the efforts to understand, monitor and to more fully support the true cost of our nonprofit partners work. The office of economic and Workforce Developments Nonprofit Sustainability Initiative is focused on transformative funding for change in capital that extends the reach and deepens the impact of these investments. And in addition to support for the high cost of real estate, which remains at its second highest expense for most organizations after labor, the n. S. I. Has assisted nonprofits to assess their overall capacity needs and assign skilled volunteers and strengthen grant proposals and implement mergers and other forms of strategic restructuring. Annual funding of 3 million is administered by oewd in partnership with the Arts Commission and the Mayors Office of housing and Community Development. And this partnership has been very effective for referrals and providing a continuum of support for organizations that wear many hats and address many needs in our city. Because the impetus for the Technical Assistance within the n. S. I. Comes from the nonprofits themselves and their vision for the states growth and partnership, were aiming to have durable change that is collectively desired by the board of staff and community and can withstand turnover which is a reality in the Nonprofit Sector. This years Sustainability Initiative funded included onetime increases for permanent Space Acquisition as well as funding to mitigate the high cost of construction of Community Facilities within 100 Affordable Housing sites. With the expanded support our nonprofit and intermediary vision has provided in response to the Global Pandemic as well as the ongoing needs the lease negotiation and site identification and Financial Planning as well as grants, including onetime expenses necessitated by a new lease. And eligible expenses, include up to six months of the differential between the existing rent and the new higher rent. So since launching our first grant three years ago we have stabilized 178,000squarefeet of nonprofit space with leases averaging seven years. And had the acquisition of more than 128,000squarefeet of newly nonprofit owned space. And it is governed by communities of color and lowincome communities and we have limited the access to capital. We have stable stabilization i talked about that, with the differential between the existing rents and the grants up to 75,000 for nonprofits to secure a lease for five years or more. And, again, the acquisition awards support that newly nonprofit owned space. Thank you. Supervisor fewer thank you very much. Any comments or questions from my colleagues at all on the presentation . None . Okay. Supervisor supervisor fewer excuse me, im sorry. I have a question but i was going to wait until after all of the presentations. Supervisor fewer okay. So we have we have guest speaker next. So we have people from sherry adams and steve gills from the Network First and then joe wilson and jenny freedenboch from the indiscernible commission. Supervisors, would you like to wait for your questions now or after we hear from our nonprofit providers . I would rather that we hear from our nonprofit providers in case they might touch on it. Supervisor fewer thank you very much. Okay. So lets get started. So id like to invite chairman adams and steve fields from the Human Services network. So can you hear me . This is steve fields. Supervisor fewer yes, steve, we can hear you. Good. Im never sure where i am in these pictures. Thank you, chairperson fewer, for holding this hearing. And im we in the Nonprofit Community hope that it is the beginning of a dialogue between the sectors and the government to take an unprecedented look at the status of the critical Nonprofit Service community in San Francisco. And we were reaching a point as a sector over the last several years of becoming increasingly concerned about the issue of sustainability. And it was reaching a point in the Nonprofit Service sector where it wasnt the large agencies were secure and the small ones were not, it was across the board based on all kinds of factors, whether or not we were going to have a kind of ad hoc loss of Critical Services or we were going to be able to get in front of the growing crises in our various systems of services to make sure that essential services were continued. And wiper planning around the issue of sustainability. And, obviously, circumstances have completely shifted the concerns and the resources and the energies of the entire city, let alone the nonprofit and the City Department sectors. So i want to say then a couple of things in the context of this. Those of us who remain optimistic, well come out of this covid19 crisis and were going to get a place where we Start Building back up again. And our major concern is the weaknesses and the vulnerabilities of the Nonprofit Sector that were growing and becoming more acute in january of 2020, are going to be there in whenever we come out of this crisis and start getting our sea legs again and able to get back into Building Systems of care with the budget and everything else. And so those the only differences that those vulnerabilities have been exacerbated and theyve been accelerated by the covid19 crisis. And charlene will address those specific issues. But the enduring ones, the ones that we all have to understand in the context of whatever were trying to do to respond to the economic crisis, the budget crisis, and the Health Care Crisis were facing now, is that the Nonprofit Sector as referred to in the earlier reports is the frontline response system in this city and county to not only enduring longterm health and social service and Behavioral Health issues, but also the goto sector to respond quickly with we need to stand something up in the face of an enduring as well as an insipient crisis. And i would have to say that probably the Biggest Issue facing our sector before the covid19 crisis, and the one that were going to be facing coming out of it is how do we recruit, retain and inspire our staff so that we can continue to do the work that we are doing . The ability to recruit the kind of staff that we always have and then retain them has been severely affected in a negative way by the economics prior to the covid19 crisis. And those are going to be things when we come out of this if were going to build this sector and maintain its strength to respond to the most vulnerable citizens in our city, were going to have to address. And that isnt just about salaries. That isnt just about benefits. But it is about providing people who are a core part of our citys capacity to do the things that were famous for, which is responding to emerging and new issues, finding ways to get something open and on the street quickly, hiring, recruiting and hiring different kind of worker, not just the traditional credentialed workers, but also the people that actually across many of our services have been our most effective. Which those are people who come out of the experience that theyre now recommitting as workers and as people coming to work in nonprofits to help to build up the capacity of the neighborhoods and the individuals that we serve. So we need to have a different discussion for the Nonprofit Sector around a salary structure, around a job structure and around a retention structure. That is different than just the early steps that we were able to achieve through the cost of living increase and then the cost of doing business increase. Those are essential underpinnings of the structure of our nonprofits. But i think that we move now where we need to take a look at how we fold the Nonprofit Workforce into a fundamental understanding that they are the workforce of the county, they are the city and county employees, the essential parts of our ability to respond. In some cases, in some kinds of crises, they can respond faster and more relevantly to the needs of the clients that we serve. So thats the first thing that we need to address. We cant just keep doing a cost of doing business increase that may