Committee advances Article 27 (surface-mounted facilities) with reporting amendments and more review of in-lieu fee

The committee considered an ordinance amending the Public Works Code to modify exceptions to the surface-mounted facilities site-permit requirements (Article 27). Supervisor Malia Cohen said the item—s aim is to streamline permitting for multiple providers so the city can expand high-speed internet access while creating a pool for beautification projects in neighborhoods that have lagged in connectivity.

Supervisor Feuer proposed and the committee adopted amendments requiring the Department of Public Works to submit annual reports to the Board and Mayor starting Sept. 1, 2019, that would cover applications for SMF permits and "maintenance of existing surface-mounted facilities," including graffiti-abatement activities and the outcome of appeals. DPW representative Deborah Lutzky said the department used a $40-per-square-foot figure provided by the San Francisco Arts Commission as a baseline for mural costs and added a 20 percent overhead for administration. Lutzky said averaging mural costs against typical box sizes produced a range and that, depending on the approach, DPW—s ceiling calculation could reach roughly $5,500 to $6,600 per box when administration is included; she emphasized that the fee must not exceed the city's calculated cost.

Deputy City Attorney John Gibner said DPW calculated a ceiling and that the Board can choose a lower fee; the committee had at an earlier meeting moved the in-lieu mural fee from $500 to $2,000, a policy choice that several supervisors said they would continue to review. Supervisor Ronan asked for an "articulable justification" for the $2,000 figure; Supervisor Cohen said the fee is intended to fund broader beautification and local connectivity goals, not to require private providers to manage art selection.

AT&T representatives told the committee they had been negotiating with the City Attorney's Office; Teddy Verhais (AT&T assistant VP) and AT&T outside counsel John Devaney said a letter reflecting their agreement had been completed the prior day. Public commenters addressed both the need for connectivity and concerns about tree-planting and greening versus in-lieu fees; Tom Borden (San Francisco Forest Alliance) asked that street trees be guaranteed rather than turned into a general in-lieu fee, while other community members noted neighborhood benefits from improved internet access.

After the debate and adoption of the reporting/maintenance amendment, Supervisor Sheehy moved to advance the item to the full Board without recommendation so supervisors could continue to review the fee level and other details; the motion passed.