Budget committee backs $85 million first sale of $628.5 million earthquake safety bond

The San Francisco Budget & Finance Committee on Jan. 13 recommended that the full Board approve the first sale, not to exceed $85 million, of a $628.5 million Earthquake Safety & Emergency Response (EASR) bond program approved by voters in March 2020.

Committee presenters said the first issuance is expected to generate roughly $81.43 million in par proceeds, of which about 79.6% would fund capital projects and the remainder would cover issuance costs. Financial staff estimated an interest rate of about 3.11% that would produce approximately $26.1 million in interest over 20–25 years and roughly $107.5 million in total debt service; staff said the measure would add about $1.84 per $100,000 of assessed value annually (about $10.90 a year on a $600,000 home).

Public Works officials described the sequence of projects planned for the first issuance: interior alterations and expansion of the 911 call center at 1011 Turk (targeted for the fastest delivery and expected to be completed next year), seismic repairs or replacement of neighborhood fire stations (Ingleside to be replaced; Taraval to be repaired), replacement of a deteriorating firearm training facility at Lake Merced, and renovation and expansion of disaster response facilities such as the Keyes Pavilion in Golden Gate Park. The department said larger components of the bond program — notably broader work on the auxiliary/auxiliary water supply system (EFWS) to improve West- and East-side coverage — are expected in a subsequent bond sale.

Committee members pressed staff on timing and scope. Public Works said Ingleside’s preconstruction and approvals are expected to take about three years, with construction beginning in 2023 and completion targeted for late 2025 or early 2026; the initial $11 million listed for Ingleside is intended for planning, design and predevelopment, with the remainder for construction. Public Utilities Commission staff said the $20 million included in the first issuance would cover discrete EFWS elements such as replacement fireboat manifolds at Pier 33½ and Fort Mason and the first 36-inch pipeline segments on Nineteenth Avenue and Vicente; PUC staff said those pipeline contracts could go out in 2023 and construction continue over the following three years, with additional pump-station upgrades planned afterward.

Sevin Campbell of the Budget Analyst’s Office told the committee the sale and appropriation are consistent with city debt and tax-rate policy and recommended approval. Brief public comment on the bond items included concerns from community groups urging prioritization of dedicated high-pressure firefighting mains over potable-water options in some locations.

Chair Matt Haney moved the items to the full Board with a positive recommendation. The committee recorded unanimous support in the 3–0 roll call (Vice Chair Asha Safaie, Supervisor Mar and Chair Haney). The Board will consider the items at a later hearing.