Board of Supervisors passes budget package, Stonestown zoning and dozens of measures; charter amendments among voter referrals

The San Francisco Board of Supervisors on July 23 adopted a large package of ordinances, resolutions and charter referrals, approving the city's budget and vaccine of dozens of other items while forwarding several charter amendments to the November ballot.

The board approved the two-year budget and related salary and fee ordinances and a slate of contract amendments and leases, adopted zoning and development approvals for the Stonestown project in the southwest of the city, and approved a number of grants and contracts for city departments. Several charter amendments were placed on the November ballot, including measures to create an inspector general in the controller's office and a task force to recommend commission streamlining. Supervisors also opened a public hearing on a proposed general obligation bond for facilities and shelters.

Why it matters: The votes put the city's fiscal plan and development approvals into effect and send several proposed charter changes to voters on Nov. 5, 2024. The actions include multi-million-dollar contract authorizations, land-use approvals that affect a large redevelopment site and funding that city leaders say will pay for shelters, housing and other capital projects.

Key votes and outcomes (summary)

- Item 13'26 (budget package): The board passed the budget and related ordinances and appropriations for FY2024'2025 and FY2025'2026 and related salary and fee ordinances. Vote: 10 ayes, 1 no (Supervisor Preston voted no). Outcome: Ordinances finally passed where required; budget package adopted. Note: Item 24 (Our City Our Home earned interest revenue reallocation) passed first reading.

- Item 8 (Kova Hotel booking agreement amendment): Ordinance authorizing the Department of Homelessness and Supportive Housing to amend the booking agreement with Shin International, Inc. to increase the not-to-exceed amount by $1,700,000 to a new total of $16,000,000 and extend term seven months through 03/31/2025. Vote: 10 ayes, 1 no (Supervisor Mandelmann voted no). Outcome: Ordinance finally passed.

- Items 9'12 (Stonestown development package): Four ordinances approving the development agreement, infrastructure financing governance, General Plan amendments and planning-code/zoning changes to establish Stonestown Mixed Use and Special Use districts for an approximately 30-acre site, including approximately 6 acres of open space. Supervisor Engadio was recused for the motion to recuse. Vote on 9'12: 10 ayes, 0 no (one recusal). Outcome: Ordinances finally passed; zoning and development approvals adopted.

- Items 27'31 (charter amendments and voter referrals): The board submitted multiple charter amendments for placement on the Nov. 5, 2024 ballot: item 27 creating an Our Children, Our Families initiative (submitted unanimously), item 28 establishing a commission streamlining task force (passed 7'4), item 29 to establish an inspector general in the controller's office (submitted unanimously), item 30 creating an Affordable Housing Opportunity Fund requiring annual appropriations of $8,250,000 beginning in a future fiscal year (submitted unanimously), and item 31 (retirement service-credit and retirement plan adjustments for certain nurses and public-safety communications personnel) (submitted unanimously). Outcome: Charter measures submitted to the ballot as recorded.

- Item 33 (Health Service System plan and contribution rates): The ordinance to approve HSS plans and contribution rates for calendar year 2025 was advanced on first reading after extended discussion about the health-plan procurement and the switch from UnitedHealthcare to Blue Shield of California. Vote to pass on first reading: unanimous where recorded for first reading. (A 3/4 vote is required for final adoption at a subsequent hearing.) Outcome: Passed on first reading; additional outreach to retirees and implementation planning were discussed by staff.

- Items 35'48 and other contracts and leases: The board approved multiple real-property leases, amendments, renewable energy purchase agreements, airport leases and other contracts. Highlights include: lease amendments for village community facility tenants at 1099 Sunnydale Avenue (items 35 and 36); CleanPowerSF contract and renewable procurement amendments (items 37 and 38); airport lease and customs agreements (items 39'41); and a citywide electrical supplies contract with Rexel USA Inc. (item 42). Votes on these resolutions were recorded as adopted where noted in the roll calls.

- Item 45 (Casa Adelante ground lease): Resolution authorizing the mayor's Office of Housing and Community Development to enter into a ground lease with Casa Adelante SVN Housing LP to develop a 168-unit affordable rental project, with a 75-year term and a $15,000 annual base rent; resolution adopted.

- Item 49/50 (general obligation bond public hearing and ordinance amendments): A committee-of-the-whole public hearing considered proposed amendments to a general obligation bond measure (file no. 240497) to authorize up to approximately $390 million in bonds to finance acquisition or improvement of real property, including dedicated funding for shelters and interim housing; the board received public comment and amendments to conform the measure to a possible state constitutional change (ACA 10). No final bond adoption occurred at today's meeting; the item moved forward consistent with the ordinance schedule and committee process.

- Item 51 (police staffing charter amendment): A charter amendment concerning the definition of 'full duty sworn officer,' staffing-report frequency and a voluntary deferred-retirement option was ordered submitted to the ballot. Vote: 8 ayes, 3 no (Preston, Ronan, Walton voted no). Outcome: Charter amendment submitted.

- Item 52 (MOU amendment for nurses): Ordinance implementing an amendment to the city's MOU with SEIU Local 1021 for registered and public-health nurse staffing and hiring was passed on first reading. Outcome: Passed on first reading; implementation steps to follow.

- Items 53'54 (building code amendments): Ordinances to extend deadlines for disability access improvements and to exempt storefronts vacant due to public infrastructure construction from vacant storefront registration requirements passed on first reading.

- Items 60'62 (adoption without committee reference): The board adopted three resolutions on first reading without committee reference by unanimous consent. Item 60 declared August 2024 Afghan American Heritage Month; item 61 urged continued negotiation to secure the Free City program at City College of San Francisco; item 62 supported a resolution concerning workers at multiple Subway franchises alleging wage theft and asked city enforcement and franchise owners to address outstanding wage claims. Outcome: Resolutions adopted on first reading by unanimous consent where noted.

What board members said and next steps

Supervisors made several statements during debate and in introductions. President Peskin and colleagues repeatedly framed the charter measures and inspector general proposal as responses to public scandals and a need to rebuild public trust. Director Elena Yant of the Health Service System joined the chamber to answer retiree questions about the health plan procurement and the difference between Blue Shield and UnitedHealthcare; Deputy City Attorney Anne Pearson confirmed for the record that 'tiny homes/cabins' fixed to the ground with a useful life of one year or more are an allowable use under the proposed bond's shelter allocation.

Most ordinances that required only a simple majority were adopted immediately; a small number of matters (for example, health-plan contribution rates and any charter- amendment final adoptions) require additional hearings or are now on the Nov. 5 ballot.

Votes at a glance (selected items with roll-call results)

- Item 8 (Shin International/Kova Hotel): 10 ayes, 1 no (Mandelmann). Ordinance finally passed. - Items 9'12 (Stonestown development package): 10 ayes; 1 recused (Supervisor Engadio excused). Ordinances finally passed. - Items 13'26 (budget package): 10 ayes, 1 no (Preston). Ordinances finally passed; item 24 passed on first reading. - Item 28 (commission streamlining task force charter amendment): 7 ayes, 4 no. Item submitted to ballot. - Item 29 (inspector general charter amendment): 11 ayes. Charter amendment submitted to ballot. - Item 30 (Affordable Housing Opportunity Fund for seniors and extremely low-income households): unanimous recorded support; charter amendment submitted to ballot. - Item 33 (HSS plans and contribution rates): advanced on first reading after discussion; further action required for final adoption (3/4 vote required at a later hearing). - Item 34 (lease amendment, 2 Golf Street/Human Services): 11 ayes. Resolution adopted. - Items 35'48: Resolutions approving leases, contracts and licenses (roll calls recorded; items adopted as shown in the record). - Item 51 (police staffing charter amendment): 8 ayes, 3 no. Order submitted. - Item 52 (nurses MOU amendment): 11 ayes. Passed on first reading. - Items 53 and 54 (building code amendments): Passed on first reading. - Items 60'62 (adoption without committee reference): Adopted by unanimous consent; item 61 supports continued negotiation for Free City College funding; item 62 expresses support for Subway workers' wage claims and asks appropriate enforcement/action.

Source evidence: Transcript excerpts of the July 23, 2024 Board of Supervisors meeting, including roll-call votes and clerk readouts, were used to compile the above list.

Ending: Several items advanced today require follow-up hearings or administrative implementation steps. Charter questions will appear on the November ballot where noted; staff and departments will carry out contract changes, procurements and implementation activities described in the adopted measures.