Finance Committee advances contracts, bond financings and a property purchase option to full Board

San Francisco — The Board of Supervisors Finance Committee on July 18 recommended that the full Board approve a slate of contracts, reserve releases, bond financings and a property purchase option after brief presentations from city staff.

A representative of the municipal transit agency told the committee the city seeks a sole-source contract with Orion Bus Industries for up to $17,132,780 to buy thirty 30-foot low-floor hybrid diesel-electric coaches, with an option for 30 more. "This procurement meets two FTA criteria," the agency representative said, and staff said, after solicitations, competition was deemed inadequate because only one respondent met the MTA specifications. The committee moved the contract to the full Board with a recommendation.

In transportation funding, the committee approved the release of $2,139,875 in TEA-21 demonstration funds for environmental studies on a proposed roadway connecting Hunters Point Shipyard to U.S. Highway 101. Anna LaForte of the Department of Public Works said the funds will complete environmental work that is intended to redirect truck traffic off Third Street and residential streets; the budget office recommended release of the reserves.

On preservation, the Port's planning division requested $190,730 in reserve funds to hire a historic-preservation consultant for the Pier 70 master plan. Diane Oshima said the consultant will build on the earlier Central Waterfront Historic Survey; the committee approved the release.

The committee also advanced an ordinance to amend Planning Code sections 3.50 and 3.52 to set fees for Planning Department services tied to appeals and to permit annual fee adjustments. The sponsor said the item had been subject to public comment and moved it to the full Board with recommendation.

City finance and personnel matters included an ordinance that would require any grant creating a new city position to be accompanied by an amendment to the annual salary ordinance. Monique Smuta of the Controller's Office said the change would improve position control and monitoring while cautioning it could cause delays if amendments are not coordinated.

The Department of the Environment sought authority to enter a contract with Pacific Gas and Electric Company for up to $10,709,302 to run an energy-efficiency and demand-reduction program that provides audits, direct-install lighting and refrigeration retrofits for small businesses and multifamily buildings. The department said the program aims to reduce electricity use by 43,000,000 kilowatt-hours and natural gas use in multifamily buildings by 335,000 therms per year, producing an estimated $6.5 million in annual energy savings. The budget analyst offered a wording amendment to clarify goals and accountability; the committee declined to adopt the amendment and forwarded the item as introduced.

Housing finance items included resolutions to issue multifamily housing revenue bonds — up to $25,828,221 for family apartments and up to $5,000,000 for senior apartments — to support the Alabama Street project. Teresa from the Mayor's Office of Housing said the financing is conduit debt, to be repaid from project revenues.

Ben Rosenfield of the City Administrator's Office urged the committee to approve exercising a purchase option for the city-owned consolidation of MTA offices at 1 South Van Ness Avenue, which carries a $71,500,000 purchase price. Rosenfield said the city currently occupies about 300,000 square feet in the building and estimated roughly $200 million in savings over 30 years compared with continued leasing; the committee moved the authorization to the full Board with recommendation.

Finally, the committee recommended that the full Board approve the airport's acceptance and expenditure of up to $10,000,000 in Department of Homeland Security grant funds, administered through Lawrence Livermore National Laboratory, for a pilot air-cargo explosive-detection system. Airport staff said no new city positions would be created by the grant.

Votes at a glance: each item was forwarded to the full Board with recommendation (no roll-call tallies were recorded in committee minutes). Several items required subsequent Board action and/or ordinance adoption to become effective.

The Finance Committee concluded without extended public comment and adjourned.