Budget and Finance Committee forwards tax, airport, utilities, contracts and leases to full Board; all measures pass committee

At its March 5 meeting the Budget and Finance Committee unanimously forwarded a package of ordinances, contract amendments, emergency declarations and real property leases to the full Board of Supervisors. Committee votes were 3–0 (Vice Chair Matt Dorsey, Supervisor Joel Engadio and Chair Connie Chan voting aye) on each motion recorded in the hearing.

Below are short summaries of each item the committee advanced and the committee action recorded in the hearing.

• Item 2 — Voluntary Disclosure Agreement and advanced written determination fees (ordinance amending the Business and Tax Regulations Code) The Treasurer and Tax Collector presented an ordinance to authorize a voluntary disclosure agreement (VDA) program that would allow unregistered taxpayers who come forward to pay unpaid back taxes to receive waivers of penalties and interest for up to six prior years, and to authorize an advanced written determination fee program required under Proposition M. Staff said an informal VDA program has already generated $2.9 million in collected prior-year taxes and $1.6 million ongoing; the department projects approximately $1.5 million in prior-year revenue and $1.0 million ongoing if the ordinance is authorized. The committee voted to forward the ordinance to the full Board with a positive recommendation (3–0).

• Item 3 — Suspension of the empty homes tax pending litigation (ordinance) The ordinance would suspend the empty homes tax while litigation in San Francisco Superior Court (Eric Daban et al. v. City and County of San Francisco et al.) is pending and make the tax effective in the tax year following a final decision in the case. Treasurers staff and the Budget and Legislative Analyst (BLA) explained the Superior Court has barred the city from administering or collecting the tax and that retroactive collection would present significant administrative obstacles. The BLA summarized controller revenue estimates that projected about $9 million in revenue in 2024 rising toward $15.4 million in later years but emphasized uncertainty. The committee voted 3–0 to forward the ordinance to the full Board with a positive recommendation.

• Items 4 & 5 — Airport contract modifications for cargo projects (resolutions) Two resolutions would approve contract modification No. 2 to extend and increase existing project management support services contracts for cargo buildings at San Francisco International Airport: CONSOR PMCM, Inc. (Cargo Building 626.1) and Westfield Consultants, JV (Cargo Building 720.1 and GSE Building 742). Each modification adds approximately $10 million and extends the contract term through May 1, 2029; both are funded by the airport capital program (Ascent). The BLA reported the contractors met or exceeded performance measures and recommended approval. The committee voted 3–0 to forward both resolutions to the full Board with positive recommendations.

• Item 6 — SFPUC radio communications site lease amendment (resolution) The Public Utilities Commission requested approval to amend a long-standing radio communications lease for the Mount Allison site (in unincorporated Alameda County), expand the leased premises to allow additional equipment and increase the monthly base rent from $5,700 to approximately $9,000. Staff said the expansion supports SCADA and voice radio coverage important for watershed operations and emergencies. The committee voted 3–0 to forward the resolution to the full Board with a positive recommendation.

• Item 7 — SFPUC emergency declaration for Tesla treatment facility standby power repairs (resolution) The PUC declared an emergency after the uninterruptible standby power control system at the Tesla treatment facility failed on Dec. 11, 2024. The PUC described a planned emergency contract with Holt of California (authorized Caterpillar dealer) to replace controllers, switches and communications hardware with an estimated cost of $700,000 and an expected completion date of April 30, 2025. The committee voted 3–0 to forward the emergency declaration to the full Board with a positive recommendation.

• Items 8 & 9 — HSS contract amendments: Hyland software (Docu/records) and P&A administrative services (COBRA/FSA) (resolutions) The Health Service System requested a third amendment to extend and increase a sole-source agreement with Hyland Software for document management (new term through March 31, 2030; additional $192,000 for a total not to exceed $574,000) and a tenth amendment to extend and increase an administration agreement with P&A Administrative Services for COBRA, AB 5 28 and flexible spending account administration (extend 18 months through Dec. 31, 2026; add $555,000 for a $4.667M total). The BLA recommended approval and asked HSS to audit other long-running contracts for board-approval thresholds; HSS reported it had checked other agreements and confirmed thresholds were met. The committee voted 3–0 to forward both resolutions to the full Board with positive recommendations.

• Items 10 & 11 — Real property leases at 1099 Sunnydale Avenue (The Villages) with FACES SF and Felton Institute (resolutions) The Real Estate Division presented two five-year leases (each with two five-year options) at the Villages community facility in Visitation Valley: a ~3,000 sq. ft. lease with Family and Child Empowerment Services (FACES SF) at roughly $48,000/year (includes an ~822 sq. ft. portion tied to a year-to-year grant-funded collaboration that would reduce rent to approximately $35,000/year if the grant is not available) and a ~1,500 sq. ft. lease with the Felton Institute at roughly $24,000/year. Both noncommercial tenants provide workforce, family and senior services in the neighborhood; the committee voted 3–0 to forward both leases to the full Board with positive recommendations.

Ending: All items discussed at the March 5 committee were forwarded to the full Board of Supervisors with positive recommendations; recorded committee votes were unanimous in favor (3–0).