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Committee forwards plan for 30‑bed Valencia Street behavioral respite funded by Tipping Point grant

Budget and Finance Committee, City and County of San Francisco · March 11, 2020
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Summary

The Budget and Finance Committee recommended forwarding two resolutions that would accept a $3 million Tipping Point grant and authorize a three‑year lease at 1156 Valencia Street to create a 30‑bed community Hummingbird behavioral respite, with operating costs projected near $3.8–$3.9 million per year.

The Budget and Finance Committee on March 11 recommended that the full Board of Supervisors approve two resolutions to open a 30‑bed behavioral respite center at 1156 Valencia Street in District 8.

Supervisor Rafael Mandelmann said the proposals — acceptance of a $3,000,000 grant from Tipping Point Community and a three‑year lease with the Salvation Army — would expand the city’s Hummingbird model, a 24/7, low‑barrier behavioral respite that offers overnight stays, counseling, meals, laundry and connections to medical and social services. Mandelmann cited an estimated 4,000 unhoused San Franciscans who meet the project’s target criteria for co‑occurring mental illness and substance use disorder and urged a positive recommendation to the Board.

Kelly Hiramoto, special projects manager at the Department of Public Health, said the proposed site would provide 30 overnight beds plus up to 25 day‑use slots, allow clients to bring partners and pets, and partner with PRC Baker Place to deliver residential and wraparound services. Hiramoto said tenant improvements would be minor (adding two showers and ADA upgrades) and that Tipping Point designated up to $300,000 to fund those tenant improvements; the city would reimburse the Salvation Army for the agreed‑upon renovations.

The Budget Analyst reported estimated lease rent at roughly $40 per square foot (the building is about 10,833 sq ft), $300,000 in tenant improvements paid by Tipping Point, and projected annual operating costs of about $3,900,000. The analyst recommended amending the lease language to cap rent increases during any exercised option terms at 3% per year.

Supervisor Shamone Walton asked for clarification on how the Tipping Point grant would flow to the Salvation Army for renovations; DPH confirmed the grant was allocated for renovations and that the city would reimburse the Salvation Army. The committee accepted the Budget Analyst’s recommended amendments and, on a motion by Supervisor Mandelmann, voted to forward Items 1 and 2 with a positive recommendation to the Board of Supervisors.

The resolutions forwarded to the Board would (1) authorize the Department of Public Health to accept and expend the $3,000,000 grant from Tipping Point Community for creation of the respite center and (2) authorize the Director of Property to lease 1156 Valencia Street from the Salvation Army for a three‑year base term with two one‑year options and an initial annual base rent of $404,000. The motion record in the transcript shows the committee advancing the items; no roll‑call vote tally was recorded in the committee transcript. The items will appear on the Board of Supervisors agenda unless otherwise stated.