Budget and Finance Committee actions: leases, reserve releases and appropriations forwarded to full board (3-0)

The Budget and Finance Committee on March 12 forwarded by unanimous voice or roll-call votes several administrative items to the full Board of Supervisors. The items included two lease amendments at San Francisco International Airport, and the release of Board-reserved funds for two HSA grants.

Item 1: FBI lease modification (SFO). Kathy Weidner of San Francisco International Airport presented modification number 3 to the city’s lease with the U.S. Federal Bureau of Investigation for office space in the International Terminal. The amendment would extend the lease term three years through Jan. 3, 2028, and increase annual rent from about $665,489 to $962,018; total rent over the extension term was described as approximately $2,900,000. The airport said the extension was chosen because the airport is constructing a new connector building courtyard anticipated to be complete in 2028 that may offer more permanent space for the FBI. The BLA recommended approval. The committee forwarded the resolution to the full board with a positive recommendation (Dorsey, Gardio, Chan — all aye). No public comment was recorded.

Item 2: Reprographics off-site lease amendment. Kathy Weidner described a third amendment to an off-airport lease with landlord Michael C. Mitchell for 6,000 square feet at 837 Malcolm Road in Burlingame used by the airport’s reprographics unit. The amendment would extend the lease through April 30, 2028, with two one-year options to extend further, and set annual rent at $159,000 for the first year with 3% annual increases thereafter. The airport said no suitable on-airport space is currently available for the large-format equipment. The committee forwarded the resolution to the full board with a positive recommendation (3-0). No public comment was recorded.

Items 4 and 5: Release of reserved funds to HSA. The committee held hearings and voted to release two amounts reserved by prior Board resolutions: approximately $224,000 for a CalAIM Justice-Involved grant awarded by the California Department of Healthcare Services (item 4), covering July 1, 2024, through Oct. 1, 2024, and roughly $833,000 for Refugee Support Services (RSS) awarded by the federal Office of Refugee Resettlement (item 5). HSA said the CalAIM funds support system improvements to smooth medical enrollment for justice-involved individuals and that the reserve release would allow the agency to claim earlier temp-salary costs. HSA said the refugee award was larger than typical and releasing the reserve would let the city fully utilize those federal funds. The committee voted to release both reserves and to file the hearings (Dorsey, Gardio, Chan — all aye). No public comment was recorded.

All four matters will be considered by the Board of Supervisors on March 18 unless otherwise noted in the board packet.