Transcripts For SFGTV BOS Budget And Finance Appropriations Committees 20240713

In San Francisco, jfk drive, shelley and mclaren park, great highway and twin peaks, have been very popular among san franciscans. Have you considered extending those closures beyond the shelterinplace order and making them permanent . Mayor london breed i think it does depend on what happens in the future. Because we are in a situation where i mean, covid19 is going to be with us for a while. And so as businesses start to reopen, as people start to get back to work, things are going to be a lot different than they were before. So it wont be that we reopen the city and then all of a sudden things go back to what they used to be. And i think that we will evaluate every street closure and every decision that was made and make a determination as to whether or not we should continue or whether or not that street is needed for any other purpose. So its hard to make a definitive its hard to make a decision at this time about whether or not that will continue, but we will evaluate those locations on a regular basis, and i also want to just remind everyone also that sunday streets, which was a program before this pandemic, was a very Popular Program and choosing various neighborhoods to close streets. So we want to continue to provide those as opportunities, and so that will be taken into consideration. The next question is from holly mcneed, kqed radio. Given the major budget deficit, which agencies are you most concerned could face the most significant cuts . Mayor london breed i think everything is up for discussion, and when we think about how far weve come and how we have expanded services and what we have done as a city and now were facing a deficit that is something that we have not experienced before, we all have to be prepared. We all have to brace ourselves. Everything is being considered, and it could mean challenges to services with muni, with our Police Department, with our fire department, with homeless services, everything will be up for a discussion. And the goal, of course, is we want to maintain excellent service. We want to maintain our street cleaning and all of the things that are important to the people of this city, but everything will have to be considered. The final question is from San Francisco chronicle. Before the pandemic, you and the bo board of supervisors were working on a massive and costly plan to revamp the citys Behavioural Health program. Where does this plan fall on the citys priority list right now . Is the plan still realistic as currently written . Mayor london breed i think many of the things that we have been working on before, there might be a need to shift our focus, not to necessarily not continue to move forward and push for the things that we know are necessary. We, in fact, in the bond that i just talked about, the recovery bond, there are proposed support for our Mental Health facilities. The goal is to expand our Mental Health facilities and to make them available for many of our vulnerable residents. And i want to have really, you know, the ability to do this and to move faster, but everything has to be taken into consideration when youre talking about, again, a huge budget deficit. Its going to be important that we are able to at least hold on and maintain many of the services that we have, and i hope that we will be able to enhance some of those services, because the problems that existed in San Francisco before this pandemic were challenging around Mental Health in particular. Its why we care so much about that investment and why its important that we are gonna keep that at the forefront of our thoughts as we move forward in this budget cycle to try and figure out the most financially responsible way to implement as much as we can. Thank you, madam mayor. This concludes our press conference. Hello, good morning, everyone, the meeting will come to order. This is the may 13th, rescheduled budget and finance committee meeting. Im sandra fewer, im the chair. And im joined by committee walton and supervisor mandelman. Id like to thank sfgovtv for broadcasting this meeting. Madam clerk, any announcements. Clerk due to the covid19 Health Emergency and to protect the board members, the City Employees and the public, the board of supervisors with the city chamber and the Committee Room are closed. However, members may be participating remotely at the indiscernible and Public Comments are available for each item on this agenda. Channel 26 and sfgtv. Org are streaming the numbers across the screen. And each speaker is allowed to two minutes to speak. And the opportunity to speak during the Public Comment period are via phone call 8882045984. And access code 3501008. And then press pound and press pound again. And then youre connected to 1, and then 0, to be added to the queue to speak. You will wait and the system will be silent. And the system will notify when youre in line and waiting. All callers remain on mute until their line is open. And the indiscernible and to speak clearly and slowly and turn down your television or radio. Or alternatively you may submit Public Comment in the following ways and email me at linda. Wong sfgov. Org. And via email its included in this legislative file and as part of the matter. And written comments may be sent via post office sense to city hall 1 doctor carleton b. , room 244, San Francisco, california, 94102. And finally items today will be forwarded to the full board for consideration on may 19th unless otherwise stated. President fewer thank you very much, mad 578 clerk. Call item number 1. Clerk the Airport Professional Services agreement, 11, for the San Francisco International Airport, an and te partners to increase the services for to not exceed 38 million for services and to extend the term to july 7th, 2023, to commence following board approval. Members of the public who wish to provide Public Comment on this item should call the 8882045984 and access code 3501008. And press 1, and then 0 to line up to speak. President fewer thank you very much. Last week we continued this item for more information from the San Francisco International Airport. And i am pleased to say that we received such correspondence clarifying the budget situation. And do you have any comments to add . Chair fewer and members of the committee, thank you for the opportunity to share some of the airport Recovery Plans with you. I just wanted to clarify that i stated last week that there was an 18month Recovery Plan and as supervisor fewer stated, that is probably prettyop optimistic. I received clarification that was part of the correspondence with you this week that our capital plan that has been revised for 18 months, the airport finance staff does indeed have a threeyear economic Recovery Plan that will be part of our budget process, the revised process that will go through our Airport Commission and the board of supervisors in a couple of months. So i just wanted to clarify that. Thank you. President fewer thank you very much. Colleague, any comments or questions . We heard the report last week so lets open this up for Public Comment. Any members of the public to comment on item number 1 . Clerk operation is checking to see if theres any callers in the queue. And please let us know if there are callers that are ready. If you have not already done so, press 1, and then 0, to be added to the queue. For those already on hold, wait until you are prompted to begin to speak. Madam chair, there are no callers wishing to speak. President fewer thank you very much. And id like to make a motion to move this to the board with a positive recommendation, can i have a roll call vote. Clerk on that motion, supervisor walton . Aye. Walton, aye. And supervisor mandelman . Aye. Mandelman aye. Chair fewer . Aye. Three ayes. President fewer can you call item 2,. Resolution authorizing the San Francisco Airport Commission to accept and expend a grant in the amount of 2. 9 million and any additional amounts up to 15 of the original grant that may be offered from the California Air Resources Board for the carl moyer memorial air quality standards Attainment Program grant, to purchase and install Electrical Ground Service Equipment charging stations and supporting infrastructure for the proposed project period of june 2020 through june 2021. Members of the public who wish to provide Public Comment on this item should call 8882045984 and access code 3503501008 and then press 1 and then 0 to line up to speak. President fewer miss widener, youre on again. Thank you, chair fewer and members of the committee. The airport are seeking approval to accept and expend a California Air Resources Board grant to purchase and install Electrical Ground Service Equipment, charging stations, from june 2020, through june 2021. And the airport submitted this package to the board of supervisors early in the process to prevent the need for retroactivity. At the time of the agreed grant amount up to a possible 2. 9 million. And at its meeting last week, the bay air quality awarded the grant in the amount of 2,345,297. However, the airport staff continues to be in discussions with the district on this specific line item. This amount may go up, which is why we are requesting to amend the resolution to include the up to 2,746,298 amount. And this is recommended also as part of the budget analyst report. This Grant Program is implemented as a partnership between the air district and california 35 local air districts, including the bay air quality air management district. The airports proposed project is the first phase of an airportwide ground equipment and electrification strategy to equip all gates with electrical infrastructure necessary to operate the Service Equipment to reduce the fuel use and diesel emissions. Again, the airport agrees with the budget analyst recommendation to amend the proposed resolution to collectly state that the grant amount is up to 2,746,298. A revised resolution has been provided to the Clerks Office for the file. And i would be happy to answer any questions that you might have. President fewer thank you very much. Colleagues, any comments or questions. Seeing none, can we have a daily report. Good morning, chair fewer, dan gontra. Item 2 is a proposed resolution to authorize the San Francisco Airport Commission to, one, to accept and expend a grant in the amount of 2,746,298. And any additional amounts up to 15 of the original grant that may be offered from the California Air Resources Board for the carl moyer memorial air quality standards Attainment Program grant. To purchase and to install Electrical Ground Service Equipment, charging stations and supporting infrastructure for proposed project period of june 2020, through june 2021. To commit to providing an estimated 3,650,397 in matching funds and affirm the planning departments determination under the California Environmental quality act. The airports proposed project is the first phase of an airportwide Ground Service equipment, electrification strategy to have the infrastructure necessary to operate reduce the fuel and diesel emissions. Total budget is approximately 6,396,695. And the Carl Moyer Program grant will fund up to 2,746, 298 and the airport will fund 3,650,397 of the total project cost. Per the Carl Moyer Program. , the grant share is up to the total cost, and the total cost, which is is shown in table one on page 11 of our report includes items that are needed to complete the project but are considered ineligible for grant participation, including software and Police Staffing and construction contingencies. They are fully funded by the airport which is matching funds equaling more than 50 of the total project cost. According to the airport staff, the California Air Resources Board and the bay area air Quality Management district have indicated that the covid19 Health Crisis has not impacted their Carl Moyer Program grant funding. Grant timelines or the milestones. The airport does not anticipate covid19 to have an impact on the scope of work, however, a significant delay in when contractors can return to work due to the current covid19 shelterinplace order may impact the completion timeline under the Carl Moyer Program grant guidelines. All recommendations are to amend the proposed resolution to the amount of 2,746,298, and to approve the proposed resolution as amended. I can answer any questions that the committee may have. President fewer any comments or comments . Seeing none, lets open this up for Public Comment. Any members of the public that would like to comment on item number 2 . Clerk madam chair, operation is checking to see if there are any callers in the queue. Let us know if the callers are ready. If you have not done so, press 1, and then 0 to be added to the queue. For those already on the line please continue to wait until youre prompted to begin at the beep. Madam chair, there are no callers wishing to speak. President fewer thank you. The Public Comment on item number 2 is closed and id like to make a motion to accept the amendment that is presented. Clerk on that motion, supervisor walton . Supervisor walton aye. Clerk walton, aye. Supervisor mandelman . Supervisor mandelman aye. Clerk mandelman aye. Chair fewer . President fewer aye. I would like to move this to the full board with a positive recommendation as amended. The roll call vote, please. Clerk on the motion, supervisor walton. Supervisor walton aye. Clerk walton, aye. And supervisor mandelman. Supervisor mandelman aye. Clerk and chair fewer . Three ayes. President fewer thank you very much. Call item 3. Clerk to approve modification number 6 to airport contract number 9254, Airport Shuttle bus services with s. F. O. Hotel shuttle inc, to increase the contract amount by 27. 9 million for a new not to exceed the amount of 123 million and to exercise the final twoyear option to extend the term from july 1, 2020, for a total term of december 1, 2012, through june 30, 202 it. And the members of the public who wish to provide Public Comment should call 8882045984, and access code 3501008 and press 1, and then 0 to line up to speak. President fewer thank you very much. Miss widener, this is Kathy Widener again from the San Francisco International Airport. Thank you, chair fewer, Kathy Widener with the airport. The item before you seeking your approval to modify an existing contract with s. F. O. Hotel shuttle to exercise the final twoyear option to extend the contract through june of 2022. And increase the amount to 27,900,000 and the contract is the result of the 2012 competitive request for proposals process which was approved by the board of supervisors with the initial term of three years and seven months. From december 2012, through june 2016, with three twoyear options to extend. The first two options have been exercised and this proposed modification will be the last extension of the contract. The airport contracts with s. F. O. Hotel shuttles to maintain the airport and to provide the drivers needed to support various busing operations for passengers and employees around the airport. And this includes all bus services to the longterm parking garage and various employee garages and lots. And aircraft parked remotely on the airfield and all services that are needed during an air train outage. This modification accounts for increases to driver salaries as permitted in the contract terms and the Additional Service to the oyster point Ferry Terminal which was added last year. This also includes the busing related to Construction Projects such as the airfield busing to remote aircraft parking terminals and the construction related to closures and the continued busing to the longterm parking garage until the air train station can be fully activated. This is one of the contracts that has been scaled back due to the significant decrease in passengers at the airport and the need for shuttles. Although it remains an Important Service for the employees who go to work every day and the passengers who are traveling through the airport, during normal operations s. F. O. Is a parking constrained airport, making the shuttles a critical way to access our airport terminals. Once the air train extension to the longterming parkinterm pas completed, costs can be reduced by 500,000 per month and there may be other opportunities for reducing costs. Because of these potential contract savings in the current decline in the passenger traffic, the airport agrees with the budget and legislative analyst recommendation to amend the contract, not to exceed amount by 7 million. If the air train project is significantly delayed and or passenger traffic returns to normal levels faster than projected, we may return to the committee for additional funding through the end of the contract. A copy of the revised resolution has been provided to the Committee Clerk and i would would be happy to answer any questions that you may have. President fewer thank you very much. Any comments or questions from my colleagues . Seeing none, can we please have a report. Thank you, chair fewer. Item number 3 is a proposed resolution to approve the modification number 6 between the San Francisco International Airport and s. F. O. Hotel shuttle. The airport provides Free Shuttle Service to various locations including the longterm and employee parking garages and lots, remote airfield locations, and as needed emergency buses during air train outages and oyster point Ferry Terminal. In june 2012, the airport conducted a request for proposals to select a new provider. And the existing shuttle provider was deemed the highest scoring responsive and responsible proposer and was awarded a new contract. In november 2012, the board of supervisors approved a contract with s. F. O. Shuttle bus company, now known as s. F. O. Hotel shuttle, for a term of three years and seven months from december 2012, through june 2016 for an amount not to exceed 39 million. With three twoyear options to extend through june 2022 for a total not to exceed of 105 million. And the contract has since been modified five times as shown in table one on page 14 of our report. Changes in contract scope to accommodate the airport construction have resulted in cost acceleration beyond what was anticipated in the initial contract, including additional the addition of airfield buses service and the addition of air train Replacement Bus Service due to construction, and the discontinuation of the lot b shuttle service. In february 2020, they approved modification number 6 to the contract, the subject of the proposed resolution. Because the original 2012 resolution provided for the airport to exercise contract modifications up to 105 million, the prior five mod iskses were not subject to the board of supervisors approval. The proposed mod iks number 6 increases not to exceed amount of the contract by 27,900,000, over the twoyear extension period as shown in table 2 on page 16 of our report. And according to mr. Seth morgan, the Airport Service the airport Senior Transportation planner, sufficient funding is available in the airport proposed fiscal year 20202022, twoyear budget, pending the board of supervisor approval. And due to covid19, the expenditures on the contract are likely to be lower than the 27,900,000 over the twoyear extension term. According to airport expenditure data, expected expenditures are 88,270,614. And, therefore, the budget and legislative analyst recommends to amend the proposed resolution for a contract not to exceed 116,1 on 09,116, rather than the amount in the resolution 123,181,617. The controller has estimated revenue shortfalls in the fiscal year 201920, of 190 million to 220 million due to the reduced air travel. As a result of the covid19 crisis. As noted in prior and budget legislative reports, theres funds to offset the lost operating revenues due to reduced air travel with 530 million in Passenger Facility Fund balance, and 254. 8 million in the cares pact funds. Our recommendations are to amend the proposed resolution to provide for the nottoexceed amount of 111 million, and rather than the amount in the resolution, of 123,181,167 and we recommend to approve the resolution as amended. Im available for any questions. President fewer thank you very much. I see no colleagues on the queue. So lets open this up for Public Comment to any members of the public that would like to comment on item number 3, please join the queue. Clerk madam chair, operation is checking to see if there are any callers in the queue. Mr. Coop, let us know if there are callers ready. If you have not already done so, please press 1 and then 0 to be added to the queue. For those already on hold, please continue to wait until youre prompted to begin to speak. Madam chair, there are no callers wishing to speak. President fewer thank you. Colleagues, any comments or questions . Seeing none, id like to make a motion to approve amendments offered by the b. L. A. A roll call vote. Clerk supervisor walton. Walton, aye. And supervisor mandelman, mandelman, aye. Chair fewer . Your ayes are three ayes. President fewer thank you. And to move this to the board with a positive recommendation as amended. Roll call vote please. Clerk and on that motion, supervisor walton . Walton, aye. Supervisor mandelman. Mandelman, aye. And chair fewer. Fewer, aye. There are three ayes. President fewer thank you. Can you call item number 4. Clerk yes. Item number 4, resolution retroactively authorizing the department of elections to accept and expend funds allocated by the california secretary of state in an amount not to exceed 1. 9 million to fund Voting System and election Management System replacement, for the period of february 1, 2019, through june 30, 2022. Members of the public who wish to provide Public Comment on this item should call 888204 8882045984 and the access code 35 on 01008, and then press 1 and 0 to line up to speak. President fewer we have the director of the department of elections with us. Good morning, supervisors. The purpose of this proposed resolution is to amend an existing agreement with the state to allow the city to use grant funds 1. 9 million total. 1. 5 million is allocated to replace the voting related equipment and approximately 400,000 to replace or upgrade the Management Systems. The agreement, which is administered by the secretary of the state office, provides a 75 reimbursement for purchases that the city makes through june 30, 2022. The city entered a contract last year with the state to use these grant funds totaling 3 million for similar purposes. They are to reimbur reimburse t. 4. 5 million of the total cost of 8. 5 million which is more than half of the cost from the lease. Potentially the funds could also be applied for purchases of ondemand systems, votebymail drop boxes and the telecommunication technologies such as Voter Registration and by mail sorting and processing equipment. Last year the board approved a similar resolution which allowed the department to execute an agreement with the secretary of States Office to utilize the initial grant fund of 3 million. Upon the boards approval the secretary of state will amend the agreement to include the additional 1. 9 million. The amended agreement will modify the reimbursement ratio to 3 1 or 75 that i referenced earlier. And now i can take any questions that the supervisors have. President fewer thank you. Any questions or comments from colleagues . Seeing none, can we have the report. Yes, thank you, chair fewer. The proposed resolutions with amend to the existing grant and to authorize the department of elections to accept and expend funds a allocated by the secretary of state to not exceed 1,949,85859. 50 to fund the votg system and election Management System replacement for the period of february 1, 2019, through june 30, 202. It allocates funding for the secretary of state to reimburse the counties for the cost of Voting System replacement activities. Counties are required to certify by resolution the approval of applications for funding before submission to the secretary of state. Under the terms of the grant, a county can only be reimbursed for the cost of developing a new system if the system is then certified by the california secretary of state by july 1, 2023. On march 12, 2019, the board of supervisors retroactively approved a Voting System contract between the department of elections and the dominion Voting Systems incorporated for a term of four years and three months from january 2019, through march 2023. And the amount not to exceed 8,460,000 with two oneyear options to extend through march 2025, for a total to not exceed 12,660,000. Under the contract, dominion provides the lease of a new Voting System, a license to use the Voting System software, maintenance and support services. Dominion is one of three firms that offer complete Voting Systems that meet the california secretary of states Voting System requirements. In april 2019, the board of supervisors approved a resolution to retroactively to authorize the department of elections to apply for, accept, and to expend grant fund allocated by the secretary of state in an amount not to exceed 3,110,50 for the period from july 20218 through june 2021. And the grant authorized by proposed resolution provides 1. 5 million for activities to partially fund the contract between the city and dominion to lease the Voting System through march 2023. And the grant requires a 3 1 or 75 to 25 match of funds by the city. Which the city meets through its allocation of general fund money of 3 million to fully fund the contract with dominion. And the grant would reimburse a total of 53. 4 , or 4,517,260 of the 8,460,000 cost of the initial fouryear and three month term of the dominion contract. The remaining cost of 3,949,2a 0 is funded by the fund on table 1 on page 12 of our report. Including to the department director, the grant fund can only be used for the purposes specified in the grant and cannot be used to extend the mailin ballots to all San Francisco voters as required by ordinance 200400. Pending before the board of supervisors. However, according to the department director, because the total grant funds of 4. 5 million offset the citys existing costs for the dominion Voting Systems, the general fund moneys can be made available for ordinance that requires that all San Francisco registered voters to be provided with a mailin ballot. We recommend to approve the resolution and im available for any questions. President fewer thank you very much. Colleagues, any comments or questions . And lets open this up for Public Comment. Any members of the public that would like to comment on item number 4 . Clerk madam chair, operation is checking to see if there are any callers in the queue. Please let us know if there are any callers that are ready. If you have not already done so, please press 1, and then 0, to be added to the queue. For those already on hold, please continue to wait until youre prompted to speak at the beep. Madam chair, there are no callers wishing to speak. President fewer thank you very much. I have a question. Public comment is now closed on item number 4. I have a question about the mailin ballots. You mentioned the general funds could be used for this. And is there sufficient funds in your current budget to do the mailin ballots . Right now we still have to move forward for the next fiscal years budget so, no, right now we dont. But for the budget that we put forward to the Mayors Office in february, we did not contemplate sending everyone a ballot, so that number of ballots have to be included into our budget for the next fiscal year. President fewer okay. Okay. Any comments or questions from our colleagues . Seeing none, i would like to move this to the board with a positive recommendation. Could i please have a roll call vote, madam chair. Clerk yes on the motion, supervisor walton. Walton, aye. Supervisor mandelman. Mandelman, aye. And chair fewer . Fewer, aye. There are three ayes. President fewer thank you very much. Madam clerk, call item number 5. Clerk yes, item 5, resolution authorizing the city and county officials to execute and to file on behalf of the city and county of San Francisco any actions necessary for the purpose of obtaining state and federal Financial Assistance under various Grant Programs. Members of the public who wish to provide Public Comment on this item should call the 8882045984, access code 3501008 and then press 1 and then 0, to line up to speak. President fewer thank you very much. And we have with us mary langan from the department. Chair fewer and members of the committee, marylanders from the department of Emergency Management. The less that you have before you is the annual governing body resolution for Emergency Preparedness grantses that are applied for by our department. This year there are five grants in the list. The urban Area Security initiative and the state Homeland Security program. And the Emergency Management performance grant, and the local Government Oil spill contingency plan grant, and a Hazard Mitigation grant. The California Office of Emergency Services requires that the date of the grant year and naming applicant agents appears annually and so this is our annual request for board approval. And funds are ongoing and usually submitted through the budget process and im happy to try to answer any questions that you may have. President fewer thank you very much. Any questions or comments from colleagues . Madam clerk, lets open this up to Public Comment. Clerk yes, madam chair. Operation is checking to see if there are callers in the queue. Please let us know if there are callers that are ready. If you have not already done so, please press 1 and then 0 to be added to the queue. For those on hold, please continue to wait until youre prompted to begin at the beep. Madam chair, there are no callers wishing to speak. President fewer thank you very much. Any comments or questions from our colleagues . Seeing no one in the queue and id like to make a motion to move this to the board with a positive recommendation. Could i have a roll call vote please. Clerk yes, supervisor walton. Walton, aye. Supervisor mandelman . Mandelman, aye. Chair fewer. Fewer, aye. There arely ayes. President fewer thank you very much. And clerk, is there any more business before us today . Clerk theres no further business. President fewer thank you very much. Were adjourned. This is may 13th 2020 regular budget and appropriatations committee meeting. Im sandra lee fewer, chair of the budget and appropriatations committee. Im joined by Committee Members [inaudible]. Our clerk is linda wong. Id like to thank sfgovtv for broadcasting this meeting. Any announcements . Yes, madame chair. Due to the covid19 Health Emergency and protect board members, city xwraoeps and the public, the board of supervisors, legislative chamber and Committee Room are closed. However, members will be participating in the meetings remotely in the same extend that they were physically present. Public comments will be available for each item on this agenda. Each speaker will be allowed two minutes to speak. Comments are opportunities to speak during the Public Comment period available via phone call by calling 8882045984. Access code 3501008 and then press pound and then press pound again. When youre connected, dial 1 and then 0 to be added to the queue to speak. Youll be lined up in the system in the order you dialed 1 and 0. While youre waiting the system will be silent. The system will notify you when youre in line and waiting. All callers will remain on commute until their line is open. Everyone must account for the time today and speaking discrepancies between live coverage and streaming. Best practices are to call from a quiet location, speak clearly and slowly and turn down your television or radio, or you may submit Public Comments in either of the following way. Email me at linda. Wong sfgov. Org. If you submit Public Comment via email, it will be included in the legislative file as part of the matter. Written comments may be sent via u. S. Postal service to city hall. To room 244, San Francisco, california, 94102. And madame chair, this concludes my announcements. Madame clerk, please call item number. Yes, related updates for fiscal years 20202021 and 20212022 and requesting the Mayors Office of Public Policy and finance and the budget and legislative analysts to report. Members of public who wish to provide Public Comment on this item should call the 8882045984 and press pound and then 0 to line up to speak. Thank you very much. You may remember that this is the longawaited megareport on the state of our budget. And so today we have kelly from the Budget Office and ben rosenfield. Thank you, madame chair. And members of the committee. Im ben rosenfield, city controller. I can start the presentation, ms. Kirkpatrick, as portions of it as well and where available for the committee, either during the presentation or afterwards. As you psychiatric, madame chair, it was about a month ago, a very long month ago that the three Financial Officers authorized [inaudible] and presented our march projections early in the days of this emergency regarding our expectations for financial impacts on the city. Earlier today, it is now available on the web and each member of the committee has a copy of it. Woe produced updates of those projections. So, our may outline, our may projections. So were here today to summarize some of that information for you. And take questions from you. Very briefly, well walk through the current year shortfall projections and then those for the next four fiscal years. Ms. Kirkpatrick can then talk through projections of covid spending in revenues both for the current year and some preliminary thinking regarding next year and beyond and then ill conclude with some discussion of risks and uncertainty that can continue to be incredibly present at the moment to close the presentation. So with that, to get to the bottom line of it, in march we had project add range of revenue losses that we expect to occur during the current and upcoming two years. That is the period for which youre now plan ago twoyear budget. In march, we had developed both a more limited impact scenario and more extended one. In our update, though, weve set it out by a single number of 1. 7 billion and well walk you through those details. In a nutshell, the 1. 1 billion estimate before and the more limited duration scenario really corresponded to a vshape recovery followed by a quick rebound and given the world as we know it today, in our greater understanding of both the health and Financial Risks ahead of us, that no longer feels like a credible scenario to our offices. So, we have a single projection which we will walk through and a unfortunately its at the lower edge of what we previously expected. Starring with the current year, heres an update on our tax revenue projections for the fiscal year ending in just a couple of months now. You can see here that property tax good news that we anticipated earlier in the fiscal year and continues to be driven by enrollment of prior year bills, supplementals and escapes by the Assessors Office and continues to be strong. Thats been somewhat off set recently given our interpretation that well lose penalties and interests and some other revenues in the current year that will affect property tax. Property tax remains [inaudible]. The other numbers on this page are much worse. Business tax is down approximately 200 million by the close of the fiscal year. That is being driven by both our expectations that businesses will begin to pay their quarterly payment at lower level, give than economic slosz occurring in the private sector as well as deferrals of certain fees and taxes. So, we see the loss here and the business tax numbers that well talk about later assume that we receive those funds in the current per. The single most impacted industry in the city, and that corresponds to our tax revenue loss as welt is hospitality and that translated into a sharp loss of hotel taxes. 150 million on weakness versus the adopted budget. Almost all of that in one quarter. So hotel taxes went from being worth 100 to 140 million a quarter in the assumed budget, we will be lucky to receive 20 million in hotel tax in the current quarter. And most of that will be attributable to the period before shelter in place took place in mid march. Parking taxes and sales taxes are very weak. And then all the other local taxes, some are up and some are down, about 1. 4 million. So, that leaves us with a current year tax revenue loss of 335. 8 million. Our latest projection. Obviously that is only one piece. That is the revenue tax revenue piece of the outlook. And theres obviously much more details in the report itself regarding whats going on with different departments and tax Revenue Streams and baselines and other things and to summarize it here, this is kind of where we expect to end the current year in the general fund overall. We started the year with 294 million in fund balance after the adopted budget, taking our local tax revenues and other tax other revenue losses worth viewing in the current year. We lose about 436 million versus budget baselines with shared in good news and also shared in bad news and that means that general Fund Contributions to baselines that have been adopted dekleined by approximately 308 million. We do see Department Spending savings, which is in the report of 123. 7 million. The majority of that was captured in the sixmonth report. Prior to the pandemic. But there is Additional Savings detailed in the report related, broadly speaking, to slowing spending in the current fiscal year given the obvious challenges and hiring and those sorts of things in the current environment. That means we would expect to end the year with about 85. 5 million in fund balance. Which is about 246. 2 million worse than what we had assumed in january. And so i know the Mayors Office has indicated they intend to submit a rebalancing plan for the incoming weeks. At this point, that is a number theyre solving around and ms. Kirkpatrick can speak to that. So, i will turn it over to ms. Kirkpatrick as we move beyond the current year and then talk about the outlook for the next several. Thank you. As the controller outlined, the our office intends to submit a rebalancing plan for the approximately 250 million of current year shortfall. By the end of next week to the board of supervisors. And just want to highlight and walk through the remaining shortfalls that will have to confront in the upcoming budget process due to, in large part, the revenue losses that the controller outlined. But there are some expenditure changes as well that ill walk you through. But all that to say that, for the upcoming twoyear budget, we now have a 1. 5 billion projected shortfall compared to about a 400 million deficit that we had published in january. The significant cliffs in the final two years of projection grow as a result of a loss of onetime fund balance, that one time money we applied to two budget years are helping to bring those costs down. But those sources arent available and our projections are in the final two years and that is why it grows in the outer years of the projection. Heres a bit of detail. Underlieing that highlevel rollup that i just showed you. Youll see the budget shortfall. The numbers match the previous slides. 215 the current year. About 700 million in each of the two budget years, resulting in 1. 7 billion of which the upcoming budget will have to close at 1. 5 a billion. The general fund sources revenue is the biggest loss cost it feels like and the upcoming projections. Some changes since march include additional revenue losses at the department of Public Health. Which noticeably are driven by slowed revenue from medical patients as well as lexive medical referral due to the pandemic. We assume that loss is one time in the first year of the budget and then resumption of the departments ongoing revenues by various state and federal waivers compared to prior years why those look like losses in the outer years and there is also other small revenue losses projected, notably the a. S. P. To the general fund as well as loss sb1. That is our state gas tax that helps with road repaving so we project revenues by lower revenue down below and theres other departmental revenues. And we assumed some losses there as well. Contributing to the steeper decline than prior projections. Baseline savings. That is to the fund it feels like. Contributions were driven by the slowing revenues, but i do recognize that that means less money for those Service Areas so notably the citys three biggest Service Areas that receive baseline funding include the m. P. A. And childrens services, noticeably decyf and oecd as well as library and rec park. Changes in salary and benefits include both the wage delay that was triggered as of our march 31 report. A savings of almost 43 million. In the first year of the budget. But because its a wage delay and not a wage freeze or cancellation, it just pushes that cost out into the fiscal year 20212022. That savings in the first year is off set by increased cost for projected active and Retiree Health care thats providing Health Insurance will be more expensive in the years Going Forward. And finally, there is increased pension cost over the projection period. We assume current year losses due to the poorly performing stock markets and this is compared to for projection purposes in all years. We assume 7. 4 return. If i could project the stock market, i wouldnt have this job. So, that is our best projection purposes and well feel that loss again in actually the second year of the budget and that is fiscal year 20212022 and salary and benefits feel so steep. Changes in citywide operating costs are related to increases in lease and operating costs for cityowned facilities. Theres holdover issues related to 30 van ness that will droiblt the costs to working with real estate in light of the current economic landscape to see if we can bring down costs by the time budget rolls around. And then we feel the offsetting expenditure savings and that will go road repaving. The departmentstal operating costs, the biggest increase in costs are notably due to changes and this is from march, im noting. Changes in our entitlement programs, including cow works and cap due to increased enrollment as well as the termination of im going to get the terminology wrong, but due to changes at the state level to be responsive and supportive of these lowincome residents, theres no termination period on benefits. People will continue to receive them, which is helpful to residents, but feels like a cost to continue to support that. Theres other assumed minor changes from mosconi, due to reduced Convention Center activity as well as some adjustments to the buffin projections that we made earlier in the year. Next slide. Thank you. The next kind of piece of financial puzle that we spent some time working with departments and the Controllers Office on, just doing our best attempt at projecting. I think uncertainty is definitely a key issue that were confronting but trying our best to provide estimates and bookends just to help give a sense of order of magnitude. So, based on current spending to date, as well as projected spending by departments through the end of this fiscal year, we are estimating about 375 million in direct covid spending by departments. Now i know ive been coming to you weekly with this slide that is that has been highlighting the budget actual, which is checks cut and out the door. This is a projection of that forwardlooking spending. The departments are forecasting based on commitments theyve made, leases theyve signed, contracts theyre pursuing. So that is why this number is over 300 million. The two biggest areas that ill walk through on the next slide for covid spending should come as no surprise but it is Health Care Spending to be responsive to the medical needs and Prevention Needs from the community in the health care lens and alternative house hoing makes them a significant portion of that. We do assume fema reimbursement, which is currently 75 as well as cares act funding. On the next slide,ly walk you through a kind of much more detailed break out of the spending areas and those sources that are known at this time. Based on these estimates, we will largely spend down our cares act allocations by the end of this fiscal year and we really wanted to that a lens, too, as were thinking about the up coming twoyear budget. What are some potential costs for covid spending with various variables around state and federal aid that we should be thinking and planning for. Even if potential additional state or federal resources come to fruition as, you know, there are discussions in washington to that effect. But there is Downside Risks in terms of fema reimbursement, depenting on actions taken by the federal government in terms of the duration of the emergency declaration. I think yep. Go ahead. I think i covered what i intended to. So weve highlighted four main areas of response. As i noted earlier, the Health System costs are projected to be about 1807 million. If we assume fema reimbursement, that would leave about 45 million in local costs remaining. The main spending areas within this category the biggest is personal protective equipment, p. P. E. Ablable disinfect tanl, other cleaning and prevention supplies. These are both purchases to protect our hospital staff as well as frontline workers across the city. Union workers and were working essentially with the City Administrators Office and d. P. H. To procure and distribute p. P. E. Across the city. But this is a significant cost both now and projected to ensure that we can mitigate the spread of the virus in our health care settings. And in our essential work that must continue. There is also significant spending projected and incurd due to medical staffing both planning for an ability to surge our nursing capacity as needed as well as overtime for medical staff. We assume the medical staff costs will be ongoing. But, of course, all of this is really will be shaped by the shape and evolution of the virus over the next year and the shape of the curve. We have Medical Transport testing in these costs. Not included in these costs are a Contact Tracing unit which is definitely under way. We have the department of Public Health leading existing efforts and plans for the next year. The reason theyre not included is they are working through a kind of projection for the next year. But i do want to note that that could be additional cost here as well. Simply, for shelter and housing, the vast majority of those costs, i would say 75 of them, are for all of our alternative housing. This is for 7,000 rooms, but i have in the report we provide the cost of 8250 rooms that would cost as well. And we assume reimbursement levels in alignment with the vulnerable population that fema will reimburse for. And this includes the cost of meals, supplies and staffing at the hotels. Since the last discussion with hotels at the board, h. S. A. Has endeavored to estimate the cost of adding nonprofit staffing in addition to workers that might have changed the nightly room rate from the last reporting. The number is included here. For Emergency Operations and staffing we have included newly incurred staffing cost and overtime expenses for Public Safety employees. Staff at the e. O. C. , our clinics and testing sites as well as the cost of overtime for the department of public works to maintain clean streets. This includes Technology Services as well as Emergency Child Care Centers and providing meals for children of first responders. The reason why this cost is higher is that when there are certain expenses in here that are not fema eligible, our understanding is that the Child Care Centers are not currently female reimable, but well have other sources to help support the programs that are not fema reimbursable. And i wanted to highlight the number of programs that the city has undertaken. Half is related to Food Security and Meal Delivery programs. One thing that i didnt nik wallenda my presentation, but detailed in the report is that the call for fema and others include philanthropistic or dedicated funding to date to committed state reimbursement. So, for the meal programs, the state has agreed to match and part for the great plaits delivered program so there is a small local match on that one. We also include the variety of programs for seniors serving community organizations, home delivered meals, grocery supported through give 2sf and other grocery purchases. We also wanted to outline the various Small Business programs and trying to support undocumented and extremely lowincome familieses is outlined in the report as well and finally in terms of sources of funding that will help us offset some of these net local, potential local costs. Most notably is 150 from the cares act a. State and local government am allocation that can offset incurred costs and cannot offset lost revenue and has to be sent by december 2020. Other allocations in here include 16 million of hud funding or cbdg and a e. S. G. As well as hopwa and other developmenttalspecific allocation include aging and disability services. The state has commited to 7. 4 million to San Francisco, through project room key, of which 6 million is formula driven to offset costs related to helping individuals who are homeless and pay for other housing programs. All this to say, given these assumptions of projected costs, assumed fema reimbursement, state and local aid and philanthropistic funding, that leaves a 40 million balance of sources to help pay for costs beyond july. What are some projections for the next fiscal year . Again, these are all our, you know, wanting to give, sense of order, of magnitude, the arc of covid in the community and the next fiscal year will really shame our costs, the scale and design of city programs will also determine the ultimate costs we will incur. But we need to flex up or flex down. If were able to flex down from our current response levels, as i noted earlier, we assumed fema reimbursement at 75 . But that is dependent on the foed ral state of emergency being in place and there is potential tlifk should the president decide to end the emergency or due to political pressures that might jeopardize fema fundingful on the other side of that, though, too, our report does not assume cal o. E. S. Matching fund which is in the past have been 18. 75 . So should those funds to feds match that, that would help offset some of that local match as well. And then, of course, there is the uncertainty of potentially additional federal aid to local governments. I was just listening to the governor at his lunchtime press conference talking about even at the state level, the importance of federal support and that conversation is just kicked off with the House Democrats introducing a bill yesterday and provided significant relief. But obviously it has to work its way through the house and then the nondemocratically controlled house but rest assured we recognize the importance of these efforts to secure federal funding and well try to do our best and encourage you all to recognize that importance. What we are trying to demonstrate here is if costs that are considered ongoing hotels, p. P. E. , health testing, health care staffing, some level of e. O. C. Staffing were to continue, the exact same right for the next year, and we apply the cares act balance and use 75 fema, that could be up to 500 million of additional cost and perhaps we can ramper down our response efforts and say we spent at 50 of what we are projected to spend through the end of this fiscal year. The same kind of methodologies, about 200 million. If we spend at 25 of our current spending rate projections, up to 90 million. As anoted, there is upside and Downside Risks to all of this. These costs will obviously flex and change as information changes. But all this to say that these expenditures are not included in the current year shortfalls. Wherever they land, should they be over and not offset by state and federal sources, these would be added to the deficit on whatever level they end up as being. With that, ill pass it over to the controller. Thank you. To briefly end our presentation, the two most striking things to me regarding the situation, is number one the speed and rapidity in which the citys revenue base has eroded and then, secondly and perhaps more pronounced, is the incredible level of risk and uncertainty that faces us financially and otherwise looking forward. These are really fundamentally things that could alter this projection predominantly to the worse but well talk about places where it could be to the good. As we continue to update you about this and keep informed about the citys financial health. The first, of course, and that drives all of this is duration of the Public Health risk that continues to exist in San Francisco and throughout the country past july 1. There is a risk here that well have a slower or later recovery than assumed in our projections. We talked a little bit about here about the level of the City Response that will be required to be sustained in coming years. Those numbers that she talked about earlier are preliminary rages. Ranges. They are not in the projected shortfall. Im not the right speak tore speak to the duration and intensity of the Public Health risks in the time period after july 1. But heres a simple depiction that many of you may have seen from the . R of Infectious Disease that speaks to the longer trajectory of covid as they understand it and see it in the longer term. So here were talking about a twoyear period, essentially and theyre building these off past experience with other Infectious Diseases like the flu. That first scenario on the left, in all these cases i should say were on the far left at this point of these charts but it is really what is the art of the disease going to look like Going Forward in San Francisco in the state, the country and in the world. And there is great uncertainty about that. We know that covid19 will continue to be present in our community until there is a vaccine or herd immunity is developed if that is even feasible and that will be some time. So we have different scenarios of peaks and valleys, the scenario, too, is one where we have a we have improvement this summer and you see an actually worse outbreak later in the fall. And then our goal really to get to scenario number three, which is a slow burn managing the disease in our community from intervention while doing what we can to return to the economy and our social state, a new normal. But that will be with us for some time. So which of these scenarios we find ourselves on is we go obviously has a profound effect, not just on City Services and Broader Society in San Francisco but on our finances as well. That is the first and most pronounced risk and well dont live with this uncertainty, i think, for the next through the coming fiscal year. Related to, related to that, as i said earlier, were no longer expecting to see a rapid recovery, but we expect and project in these numbers that a recovery does begin late in 2020 and continues through the forecast period. The risk dove tailing off the previous slide is that additional Public Health interventions or rollbacks were broader economic dislocation that results from kind of the our current state. It means that we have a slower recovery than were expecting here. We have about 3. 8 million and makes up our local tax revenue base. And these are in our general fund to that dynamic. On the right are just two simple number are what would it look like if the world is 5 worse than what were projecting here and what would it look like if were 10 . Those are credible scenarios if we find ourselves having to retrench the next fiscal year or we see things worsen rather than improve. That is a tlaifk we should all be planning around. And aware of. Kelly talked earlier. The key question is what level of City Response will be required in future years. We now project to spend approximately 375 million in the current year and that will be largely covered by other Nongeneral Fund Revenue Sources. We also know that n doing that, were largely depleting the cares act allocation that has been approved by congress thus far, which will mean spending next year will be more exposed. But departments are working as we speak and i think these will be the key choice made by the mayor and bore in the coming year budget. What will spending levels look like in 2021 and beyond for the hospital system, for testing and Contact Tracing, temporary housing and shelter, and other strategies a. Key unknown to us at this point. And then the last major risk relates to losses of federal or state revenue. So weve made no assumption here regarding loss of either federal or state revenue. On the federal side, the Downside Risk here is, as kelly talked about earlier, is the National Emergency will be declared over at some point. At that point, fema turns off as a Revenue Source to reimburse the very significant cost of you will likely dont incur 678 it is unknown when that will be. But it is a risk there. We remain hopeful that well see additional federal aid packages. The democrats in congress have are sbro deuced the heroes act. The next proposed stimulus bill that would provide significant relief to local governments. But we just dont have any certainly at this point. And well dont keep this committee updated as we continue to look at what is going on with washington. On the state side, kelly mentioned cal o. E. S. , and they match fema and provide additional revenue for us. Were hopeful that will occur. When it does, we will include those revenues in our forecast Going Forward. Additionally, a bill has been introduced in congress. Ill would push the stays reimbursement to 100 if its approved and im assuming thats the reason the state hasnt enacted it because theyre pressuring the feds to get to 100 reimbursement on the costs so that the state doesnt have to bear it. The last three major hurricanes in the u. S. , ultimately Congress Approved 100 reimbursement so we remain hopeful for good news on that front. However, the kind of other big looming problem for local governments is the state budget itself. So tomorrow the governor is scheduled to release his may revised propose told the legislature which will then have to adopt a budget by june 15. The state now faces a very large budget shortfall of their own. 54 billion is their estimate. Of revenue losses they expect to incur in the current fiscal year and upcoming year. So we face significant risk of reductions in revenue coming from the state. All tolled, federal and state revenue makes up 20 of our general fund. So, these are significant risks and well dont keep the committee updated as we know more. With that, we will stop talking and take any questions that you might have. Ok. Colleagues. So, can i yes. Absolutely. How do we figure out how to budget balance our budget what you just said. [laughter] seems like the simplest thing is to look at this years first. Can you go back to just for clarification, in terms of rooms, the rooms for 2019 and 2020, and you talked about the 7,000, 8,000, whatever it was unit interest and how you projected. Did you did you make your projection according to the maximum number of rooms times foush months or Something Like that, three months . How did you do that . Yeah. That is a great question. We worked very closely with h. S. A. Staff and we they proud us with the projections of their spending to date. And their ramp up for the last, i want to roughly say two months. And then for the remainder of this fiscal year, assumed reaching that 7,000 is the number here. In the report, we also provide additional cost of should we reach the 8200, what that additional cost would be as well. And then as we showed for the next fiscal year, we just assumed 100 , 50 and 25 based on that modeling, we didnt do an exact room breakdown, but for the current year it was the ramp up weve done so far in assuming the 7,000 and provide 8,000 in the report as well. So youre saving for the rest of may and june that we would have 7,000 . No. Ok. No. The model is basically a week by week model looking forward as we continue to climb up the [inaudible] so by the end of the fiscal year we get the room targets that ms. Kirkpatrick mentioned. Ok. Thats good. That is a maybe. From today that well have 7,000 rooms. The other question i had, you talked about child care a little bit, that cost. And were paying for some of it. Isnt the state reimbursing most of the child care costs . It was my understanding that there is a program perhaps to be determined, and let me follow up with you on that. For a certain set of workers, but recall off the top of my head but we can get that detail to you. What was the assumption then . That they wouldnt reimburse anything . That the majority was not reimbursable was our assumption. I dont know if ben recalls better than i do. My memory, and we can report back to you is that the 0 to 5 child care being offered is largely being either reimburred by the state or absorbed within existing budgets. It significantly relates to the Child Care Services being provided by the rec and park department, which is not reimbursable turn state program. But we can get you the breakdown of both of those programs. Yeah. Its not that i have a lot of information. But i know for 0 to 5, it seems like that was going to be covered. That is my understanding as well. If there is other people who have questions, [inaudible]. All right. Supervisor . Thank you, chair fewer and thank you so much for the presentation. Just i guess my first question is do we have any indication of when cal o. E. S. Resource will be available . Is there an estimate and timeframe so local municipalitis can do some form of projection . Caller we have talked to the governors office, supervisor walton. Their focus at the moment is on pressuring the federal government to cover that chair. So i remain hopeful that either federal government will pick it up and if they dont, at that point, the state will active activate but i expect them to pressure the fed dos do it. Let me ask a different question. If some reason the feds do not provide the level of support that the state is asking for, do we know the support that we get from the state without the federal 100 reimbursement . If past history gives us a guide, if fema only reimburses to 75 , the state would match the 18. 5 , leaving us with about 6 . The risk that i am concerned about would be that the federal government doesnt meet the states request to go to 100 and the state faced with its own overwhelming budget problems would not activate the local match and leave that for local governments. So i just we dont have clarity on it at this point. My last question, from a historical standpoint, have we seen a crisis where the state has come through with some level of reimbursement . Im not aware of a Natural Disaster in the past that the state didnt ultimately active vaits their local match. Its also true, though, that the state has never had a disaster that was simultaneously active at every local government. No. I think they have always matched in past emergencies. Thank you. Any other questions, colleagues . Yeah. Sorry. I should im too slow at typing my name. On slide seven, when you started talking i kind of got lost with what these numbers mean. For instance, like the salaries and benefits. On the users side. Are you saying for 2021 the number looks like it would be 125 million. That an increase . Decrease . I wasnt understanding that. Yeah. Sorry. I live in this table and i apologize. I recognize that its not intuitive to folks who dont live and breathe budget every day. This table is a complaining the prior year. The three biggest components of that are wage increases, pension costs and theyre all three increasing compared to the prior year. This number is slightly lower because our larger projections triggered something that was agreed to with our labor unions so were pushing cost out of fiscal year 2021 and the reason why fiscal year 2021202 feels so large is that were pushing that wage delay. Ok. I think i got it. And additional pension costs weighs briefly on the current year and well feel twoyears from now in the second year of the budget. So basically its in terms of a negative here. The 125. Its really an a increase that causes a bigger deficit. Yep. You got it. At first i didnt quite understand that. Parentheses in the financial world mean negative or costs. Any other questions . Colleagues . If not, i have a few questions as well. I want to thank you for the presentation. I note that we just received this presentation so im expecting that next week well have more questions about it. But on page 8, i see that there are significant deficits in some key departments, namely public works, h. S. A. And rec and park. And significant surpluss in other departmentses, namely police, sheriff, war memorial and [inaudible] a. There are details on the following page. But can you share more with the committee about the origin of this deficit . Sure. Let me pull up the report if i could. And chair fewer, can you remind us on which department you highlighted . Sure. Theres significant deficits in some departments, juvenile probations, and significant surpluss in other departments through h. S. H. , war memorial and human resources. So, just a little bit more detailed about it. Absolutely. Go ahead, ben. You were on page eight of the report. Yes. At a high level, this shortfall, a juvenile probation is almost entirely driven by delays in claiming federal and state revenue. Grants that they have available. We reported this at the sixmonth mark as well. That number is coming down and i have a team of accountants that are assisting with that effort at juvenile probation as we speak. It is a function of their Financial Capacity there. They went through the summer with very little capacity in their finance shop. Im hopeful, as we say in the text below, that they will be able to [inaudible] and 0 in the current year. In juvenile probation, that is partially off set by salary savings. They had a number of vacancis that have gone unfilled and they have some good news on the expense side leaving a 3. 2 million debt. [inaudible]. So you are expecting that to zero out. Were working hard to get that to zero. As of now, this is the projection for the end of fiscal year. Ok. Public works is predominantly driven by revenue loss related to the current revenues for other programming. Its basically stopped in the current fiscal year. Given shelter in place so thats dr if and majority of their revenue loss. Wi expect them to be on the expenditure side. Got it. And remind me the next department you were interested in . Sure. H. S. A. Sure. So, for h. S. A. , its on page 10 of the report. There is a i believe that summarizes some of revenue and expenditure differences for their various program. Most of the revenue loss here is related to changing levels of state reimbursements that are formuladriven for various programs they offer. So, lower matching for foster care and some of the general operating expenses that you see in that left column. They are coming in under budget on the expense side. But the participation of the feding and state with their programs is coming in lower than that. Leaving that netnet problem. For rec and park, the majority of the revenue shortfall you see is really driven by, again, by our current public Health Emergency. We project approximately 11 million in revenue losses for the departments. Thats almost entirely amid cancellation fees and loss of facility rental fees, a lack of golf programming. Some of the other Department Services that generate revenue. So all of those activities those Revenue Generating activities have stopped and thats led to a very significant shortfall in this most recent quarter and we do have some staffing and salary savings given the issues they have thats partially off setting that leaving them with a 9 million problem. You never see surpluses and i see [inaudible] explained, for example, the Police Departments, sheriff, that we are seeing significant surpluss in other departments that [inaudible]. Yes. Were counting on savings in places you see it on those tables. For general pressure you see across the city at the moment that is resulting in salary savings is hiring slowdowns and that is driven by the fact that it would be technically hard to hire anyone in this circumstance, remotedly. And not filling positions quickly or filling them at all so you see surpluses in a lot of places in the error. Ok. And then i realize that the Mayors Office is working on a new rebalancing plan for the fiscal year. But can you share whether services will be [inaudible] are par of the immediate actions that you are looking at. For the current year rebalancing plan, we are some of the savings you noted in this report has brought it down to the 250 million to all of those departmenttal revenue and savings have us at 250 million. Our goal in the current year is to identify savings that will mitigate any service layoff redunstings and looking for capital savings, freezing. Freezing of capital thats funded by cash. If there is any debt savings in the current year and also looking to programs that havent started. But we can pause and sweep those savings right now. Those are really on the priority list for the current year. And the Mayors Office [inaudible] directed nonessential hiring, is that right . Do you know how many vacant positions this applies to and how many salary savings in the current year is [inaudible]. Any vacancy projections for the rest of the current year are captured in the ninemonth report. So, the controller was noting were assuming that they will be captured in the end of year departmental savings. I dont know how many vacant positions they currently have at the moment. But we could follow up if that would be helpful to you. Yeah, it would be. I have some revenue questions. It looks like we dont expect a Significant Impact on property tax and the biggest impact we expect is sales tax and transfer tax. Can you share a bit more about the tax and revenue picture in the coming twoyears . I would be happy to and there is Additional Information in the report let ne get to the right page that i can point people to. And especially in moments of this, we want to be careful in outlining our assumptions. They begin on page 25. There is a table that shares shows tax revenue detailed by revenue stream in the current year. And then the next page has it carried forward into the budget years. And then there is the text beyond that that speaks to the specific assumptions. Generally speaking, kind of the economic picture that stood under all of these is one as i described. Its no longer a vshaped recession. It is a current year assumption that the losses we feel continue into the early parts of next year and then we begin to see some recovery across our different Revenue Streams next year. Our property tax is holding up well in the current year. We expect to see fines next year. And there are values involving the longer term. Business tax, theres a lot of inputs to what drives our business. But probably the single largest is represented to next year as kind of whats the underlying dimunition in payroll. Across the board here, if memory serves, this assumes about an 8 decline in gross receipts and payroll across our entire business tax space. Versus the current year. That is our current estimate, looking to cross industries. Well know more as we get additional Employment Information and see what is happening in months ahead by the time were back to you in august a. We should have a fuller picture. But that is our current assumption thats under this and then some recovery beginning in years after. Hotel, you can see on page 26 that we are assuming 163 million in Hotel Tax Revenue next year which is less than half of the hotel tax that we have assumed in the current year budgets. So we took a steep loss. We know that the Hospitality Industry will be one of the slowest to recover. But we do expect here or project here some recovery in hospitality beginning next year. Of all of the Revenue Streams, this is the one that were keeping our closest eye on and i see the most Downside Risk in. But the future of air travel, convention and business that drives hospitality may need to further losses above and beyond those that we have assumed here. And then if thats deliverable information you were looking for . Yeah. That helps. And we ref received this and there is a lot to it and theres a lot of charts and reading and i expect next week that well have so many questions. But i do have one more question. Obviously we know that our local businesses are struggling. You know, right now. Retail, restaurants. But it has been categories of businesses and do you have an analysis with regards to business taxes . So, within those categories of businesses . Were definitely making specific assumptions about different rates of loss in Different Industries and we can share some of that with you. Theyre based upon pretty early information. But i can say we know that losses in hospitality, for example, hotel, catering, restaurants, have been immediate and very steep. So losses in those industris are getting much sharper than, for example, office work. Or technology. Or professional services. Those parts of our jobs that have continued to operate with losses, but not at the same level. Largely remotely. So, we can certainly provide some more information about our thinking, about which parts of local economy are comparatively healthy and less healthy at the moment. Yeah. That would be helpful. Thank you. Why dont i call for Public Comment and see if any members of the public would like to comment on this. Again, commission i mean supervisors a little bit more time to digest the report. So lets call for Public Comment on this item. Are there any members of public that would like to comment on item number one . Madame chair, operations is checking to see if there are any callers in the queue. Please let us know if there are callers that are ready. If you have not already done so, please press 1 and then 0 to be added to the queue. For those already on hold, please dont wait until you are prompted to begin at the beep. Madame chair, there is no one wishing to speak. Oh, really . Ok. Well, Public Comment is now closed then. Colleagues, anymore comments or questions at all . Seeing none, id like to make a motion to move continue this item to the call of the chair. Do i have a second . Second. Thank you very much. Roll call vote, please, madame chair. Yes. On the motion [roll call] thank you very much. So id like to thank the Controllers Office and the mayors Budget Office for all of their work that they put into this. There is so many unknowns and i think there will be time to read through the report. It is very comprehensive. I think that a lot of work and effort went into this and i know that were on sort of a short timeline for this. But this is a really good first snapshot of what were dealing with. So i want to thank you very much. For all your work on this and im assuming that every single supervisor received a copy of this. All right. Madame clerk, is there anymore business before us today . There is no further business. Ok. Were adjourned. Thank you very much. Hi. My name is carmen chiu, San Franciscos elected assessor. Buying your first home is a big deal. For many of us, its the single largest asset that well own. Thats why its really important to plan ahead for property taxes so that there are no surprises. A typical question new homeowners ask is what is a supplemental tax. So understand supplemental tax, we need to start with proposition 13. Under californias prop 13 law, the value we use to calculate your property tax is limited to a 2 growth peryear, but when ownership changes, prop 13 requires that we set a properties assessed value to market value. The difference in value between the previous owners value and the new value is the supplemental assessment. How does the supplemental assessment translate to the tax you need to pay . Supplemental tax is calculated by applying the tax rate to the value and then prorating it for the amount of time that you owned it in that tax year. In generale, the tax rate is roughly 1 . Lets walkthrough an example together. Here dan is the original owner of a home with a prop 13 protected value of 400,000. With a tax rate of 1 , he pays 4,000. Dan sells his home to jennie at a market rate of 700,000. In this case, jennies home will be reassessed to 700,000, and jennie is responsible for paying property taxes at that level from the time she first owns it. Many times, people might have already paid their property taxes in full by the time they sell their home. In that case, dan has paid 4,000 in taxes already for the full year. Jennie would likely payback dan through escrow for her share of the 4,000, depending on the proportion of the tax year she owns the home. However, shes also responsible for paying taxes at the higher market value from when she begins to own the home. How does that work . Lets say jennie owns the property for nine months of the first tax year, which is approximately 75 of the year. During the escrow process, shed pay dan back 75 of the 4,000 he already paid, which is 3,000. On top of that, she would owe taxes at the higher rate for the proportion of the year she owned the house. In this case, she owes the amount not already billed through dan or 700,000 minus 400,000, multiplied by a tax rate of 1 , and multiplied again by 75 to reflect the time she owned the home in that tax year. Here, jennies supplemental tax is roughly 2,250. Going forward, jennie will be billed at her new reset prop 13 value. Are you still with us . If this isnt complicated enough, some new owners might receive two supplemental tax bills, and this has to do with the date that you transfer property. But before we get to that, you first need to understand two concepts. First, what is a fiscal year . In california, local government runs on a fiscal year. Unlike the calendar year, where the year begins on january 1, a fiscal year begins in the middle of the year, on july 1. Property tax follows the fiscal year cycle. Second, state law requires property be valued as of january 1 every year, in other words, new years day. The value as of january 1 is used to calculate property taxes for the upcoming fiscal year. This means Property Value as of january 1, 2018 will be usedtor fiscal year 18 used for fiscal year 1819 covering july 2018 through june 2019. Similarly, the value of january 1, 2019 will be used for the fiscal year covering july 2019 through june 2020. Now back to whether you should expect to receive one or two supplemental tax bills. The rule of thumb is that if the property transfers happens in the first half of the fiscal year, in other words between july and december, then you should expect only one supplemental tax fill. If the transfer happens in the second half of the fiscal year or between january and june, you should expect two supplemental tax bills. Heres the reason why. Using dan and jennies example again, dans 400,000 value as of january 1 is used to set the tax bill for the following fiscal year beginning july through june of the next year. Jennie buys the property from dan in october. The taxable value is reset to 700,000 as of october, but the bill issued still reflects dans lower value. In this case, jennie would expect to receive one supplemental or catchup bill to capture the difference between her assessed value and begans fr begans dans from october through june. Because of january 1 we already know of the sale, we would have used the following year to set jennies property taxes and no other supplemental bill should be received. However, if dan sells the property to jennie in march, instead, jennie should expect two supplemental bills. Like before, jennie would receive one supplemental bill to cover the time in which she owned the home in the current tax year from march to june. But because as of the next january used to set the tax base for the following tax year, dan still owned the home, the following years entire bill still reflects the values not updated for jennie. In this instance, jennie receives a second supplemental for the following year covering july through june. After the supplemental tax bills, new owners should receive only one regular tax bill peryear Going Forward. Remember our office values the properties, but billing and collections are handled by another Organization Called the treasurer and tax collectors office. If youd like to learn more, please visit our website at sfassessor. Org. Thank you for watching. What were trying to approach is bringing more diversity to our food. Its not just the old european style food. We are seeing a lot of influences, and all of this is because of our students. All we ask is make it flavorful. [ ] we are the first twoyear Culinary Hospitality School in the united states. The first year was 1936, and it was started by two graduates from cornell. Im a graduate of this program, and very proud of that. So students can expect to learn under the three degrees. Culinary Arts Management degree, Food Service Management degree, and Hotel Management degree. Were not a cooking school. Even though were not teaching you how to cook, were teaching you how to manage, how to supervise employees, how to manage a hotel, and plus youre getting an associate of science degree. My name is vince, and im a faculty member of the hospitality arts and Culinary School here in San Francisco. This is my 11th year. The policemrogram is very, ver in what this industry demands. Cooking, health, safety, and sanitation issues are included in it. Its quite a complete program to prepare them for whats happening out in the real world. The first time i heard about this program, i was working in a restaurant, and the sous chef had graduated from this program. He was very young to be a sous chef, and i want to be like him, basically, in the future. This program, its awesome. Its another world when youre here. Its another world. You get to be who you are, a person get to be who they are. You get to explore different things, and then, you get to explore and they encourage you to bring your background to the kitchen, too. Ive been in the program for about a year. Twoyear program, and im about halfway through. Before, i was studying behavioral genetics and dance. I had few injuries, and i couldnt pursue the things that i needed to to dance, so i pursued my other passion, cooking. When i stopped dance, i was deprived of my creative outlet, and cooking has been that for me, specifically pastry. The good thing is we have students everywhere from places like the ritz to we have kids from every area. Facebook and google. Kids from everywhere. They are all over the bay area, and theyre thriving. My name is jeff, and im a coowner of nopa restaurant, nopalito restaurant in San Francisco. I attended city college of San Francisco, the culinary arts program, where it was called hotel and restaurant back then in the early 90s. Nopalito on broderick street, its based on no specific region in mexico. All our masa is hand made. We cook our own corn in house. Everything is pretty much hand made on a daily basis, so day and night, were making hand made tortillas, carnitas, salsas. A lot of love put into this. [ ] used to be very easy to define casual dining, fine dining, quick service. Now, its shades of gray, and were trying to define that experience through that spectrum of service. Fine dining calls into white table cloths. The cafeteria is Large Production kitchen, understanding vast production kitchens, the googles and the facebooks of the world that have those kitypes of kitchens. And the ideas that change every year, again, its the notion and the venue. One of the things i love about vince is one of our outlets is a concept restaurant, and he changes the concept every year to show students how to do a startup restaurant. Its been a pizzeria, a taco bar. Its been a mediterranean bar, its been a noodle bar. People choose ccsf over other hospitality programs because the industry recognizes that we instill the work ethic. We, again, serve breakfast, lunch, and dinner. Other culinary hospitality programs may open two days a week for breakfast service. Were open for breakfast, lunch, and dinner five days a week. The menus always interesting. They change it every semester, maybe more. Theres always a good variety of foods. The preparation is always beautiful. The students are really sincere, and they work so hard here, and theyre so proud of their work. Ive had people coming in to town, and i, like, bring them here for a special treat, so its more, like, not so much every day, but as often as i can for a special treat. When i have my interns in their final semester of the program go out in the industry, 80 to 90 of the students get hired in the industry, well above the industry average in the culinary program. We do have internals continually coming into our restaurants from city college of San Francisco, and most of the time that people doing internships with us realize this is what they want to do for a living. We hired many interns into employees from our restaurants. My partner is also a graduate of city college. So my goal is actually to travel and try to do some pastry in maybe italy or france, along those lines. I actually have developed a few connections through this program in italy, which i am excited to support. Im thinking about going to go work on a cruise ship for about two, three year so i can save some money and then hopefully venture out on my own. Yeah, i want to go back to china. I want to bring something that i learned here, the french cooking, the western system, back to china. So we want them to have a full toolkit. Were trying to make them ready were trying to make them ready for the world out there. el es reginald. Nunca ha estado en internet. Hoy el quiere cambiar eso. Su instructora. Su plan comprar boletos de avion y sorprender a su esposa the director of the department of Human Services, trent roer, the director of homelessness and housing, Abigail Stuart khan. Our police chief bill scott. Thank you so much for joining us here today. Were here to provide an update and answer questions during our Virtual Press conference. As of today, we have 1,954 reported covid19 cases diagnosed in San Francisco. And sadly with 35 people who have lost their lives. 71 people are currently hospitalized, and dr. Colfax will continue to provide an update of where we are and why the need to continue the work weve done around sheltering in place is so important to continuing to maintain the curve. As a reminder, data sf. Org covid19 is our website so that you can access data or information that you may need regarding the numbers that we know exist around those who have been diagnosed, but also information by zip code as well as the number of tests and other valuable information that weve done. Now last week we announced the next steps for gradually reopening San Francisco, and i know that people are anxious to see our city reopen. Im anxious to see our city reopen. And this has been a very tough and challenging time for all of us. When you think about what weve all sacrificed, kids who are graduating from high school and will not be able to have a traditional graduation or attend prom, those parents who cannot go back to work because they have no child care access for their children, the people who are elderly who actually really need comfort through family and friends, who are not able to visit with those folks that they love and care about the most, especially during this past mothers day. It continues to be a challenge, but especially with regards to our economy. Our economy is suffering not just in San Francisco but throughout the united states, and what weve tried to do here in San Francisco is redirect resources and raise private dollars in order to get support in the hands of those who need it the most, and oftentimes people who may not qualify for any assistance whatsoever. The people who have been impacted the most include our Small Businesses, our Small Businesses that are really the backbone of our city, employing hundreds of thousands of people who, sadly, were laid off as the result of this crisis. When these businesses are not open, they are not generating any money. They were already having a tough enough time as it was before the coronavirus pandemic with the high cost of commercial rents, with the laundry list of fees that are charged by the city that need to change, with a number of other taxes and other expenses, it oftentimes made it difficult for many of these Small Businesses to not only stay open in their existing storefront locations but also to maintain their staff. And its gotten even worse as a result of this pandemic. And this is why i was so excited to announce just a step forward in reopening our economy, and that includes specific Small Businesses that in some cases, for example, our florist. They were allowed to deliver this mothers day, but when you think about their capacity even to do just that, to prepare the arrangements, to take in the payments, to also arrange for delivery so that everyone is getting what they want when they want it, many florists were reached out to had to decline because they had so many orders and so they had a limited number of people who were able to assist them in delivering those orders. And this is why im also very excited that florists and bookstores, folks will be able to do both delivery and Pickup Services. Music and record stores, hobby, toy and game stores, Home Furnishing and home goods, cosmetic and beauty supplies. Lord knows i need a new fresh supply of cosmetics. Art supplies and Musical Instruments and supply stores, sewing, needlework and goods stores, pieced good stores okay, i dont know what that is, but nevertheless, we are opening a number of businesses for pickup and delivery, and were doing so gradually, and i want to explain, because many have asked, well, whats the difference between what the governor, our Governor Newsom is proposing, which was that businesses would be opened this past friday, versus what San Francisco is doing. And again, everything has and ive said this from the very beginning. We follow the advice of the Public Health officials here in our city and in our region as it relates to the data that were seeing. As it relates to the number of cases, the number of hospitalizations, the number of deaths, and because of all of you who have followed these orders, San Francisco is in a better place than most cities. But were still not in a place where we are seeing a decline, and i think thats important to remember. The more access we provide people with where there is a contact with another human being, the more the possibility that infections can spread. So the fact that we are offering a delivery and a Pickup Service is a big step, and it is definitely a big risk, and we hope that the types of systems that we put into place in order to protect you as youre able to support and use these places as a resource that we will continue to see the curve not only flatten, but decline, and again its up to the people in this city to continue to follow these orders, and i want to say again how much i appreciate what folks have continued to do, whether its standing in line at Grocery Stores or pharmacies, at a safe distance. I noticed people are wearing their mask in those lines. I noticed that folks were just following the social distancing order, for the most part, in most parts of our city. And this is gonna be the reason why we are able to lower the curve, but we also know that a number of challenges still exist. So as we allow Small Businesses to begin work around pickup and delivery, we have to keep in mind that we know that the more people are in contact with the public, theres a higher probability that they could contract the virus. Weve seen that in a more recent study done by ucsf, with the department of Public Health and a Latino Task Force when they conducted in one of the seconddensist census blocks in the mission community. They conducted an ongoing testing where they allowed anyone to test and discovered that although of the few thousand people that they tested, less than 2 were diagnosed with covid19, and many of those folks were in the workforce. They were still working at various locations. So we know that the probability that the more youre out there, the more youre in contact with other people, thats how the virus could spread, and this is why its necessary for us to continue down this path. Whats great about our city, again, is weve come a long way, and testing is so critical to our ability to allow more places to open. The more access people have to testing and also Contact Tracing, the better our ability to identify someone as quickly as possible, make sure that they are quarantined, but also track the other folks as they have been in contact with in order to just really stop things in their tracks. I want to say that here in the city whats great is, number one, we will provide testing for anyone who is an essential worker, whether you have a symptom or not. I think its important that we continue to get the word out regarding testing, and we will provide a test to any san franciscan who exhibits one of the symptoms, and if you have the need to be tested, please call 311. Insurance is not a barrier to testing. We will test anyone, and secondly, your immigration status is not a should not be a barrier to testing. So you should not feel afraid to get tested, especially if you feel like youre exhibiting symptoms. Our testing statistics over the past month have steadily grown. We have seen an increase in the number of tests, and as of today, over 36,000 covid19 tests have been reported to dph, department of Public Health. And in the last week weve averaged over 1,000 tests per day. And i just want to remind everyone that we were not always able to get that information from some of the private hospitals that are testing, and so this is a big, big thing. People wanted to know how many tests were being conducted, and this is really, really going to be helpful to helping us understand whats actually happening in San Francisco based on the percentage of those who test positive and the number of tests weve been able to administer. And i really want to thank Elaine Forbes from the port. I also want to thank my policy director, andres powers, as well as the department of Public Health, for the work that you all are continuing to do in coordinating with the community to make sure that we have this very, very important information. The Real Progress is when we get to at least the ability to conduct 200 covid19 tests per 100,000 residents. And again, this will help us get to a place where we can begin to understand whats happening in our city, a way to address it and a way to gradually move San Francisco in a direction of reopening. Testing capacity is critical, and as a reminder, just because you are tested and you are negative does not mean that you are immune from contracting covid19 after you discover that you are negative. Or even in any other event. So i want to just reiterate how important it is to continue to wear your mask when appropriate and maintain social distancing. We also know that, you know, equity is important. Making sure that communities that may not watch the news, that may not read the paper every day, that may not be in touch with whats happening with city government, that we do a better job of making sure that we outreach to those communities with a number of trusted communitybased organizations, as well as an Incredible Group of community volunteers, and i really want to thank the equity team and the team under cheryl davis. They have been incredible. These are people we have the office of racial equity, shackra smiley is the director there. We have had her and cheryl davis working hand in hand developing strategies from day one to make sure that as we have information were communicating to folks in these communities, to the seniors in the bayview to many of our sadly homeless residents in the tenderloin to folks in various parts of the city that may not have access to what is actually going on. They have been able to distribute the work from chinatown and other communities, they have outreached to these communities on a regular basis, not just distributing almost a million flyers with information and answering a number of questions from so many of these folks, again, who are not necessarily connected to the internet or connected to resources, but you know, providing masks, providing access to support for food or connecting them to other resources. The work that they have done around education on the coronavirus and education on around resources to help people weather this storm has been incredible, and i am grateful that they are also continuing to outreach as Testing Capacity continues the work continues. Because we showed up in one Community One day does not mean that we should not be going back to that community the next day and the next day and the next day. It includes not only individuals, but we have businesses where we have people who have limited english and may not be completely familiar with the policies of the city. So its the responsibility of this equity team to really reach out to many folks who are not always connected and who may not always have the resources to make sure they have the resources and that we provide them with clear direction around testing. Because as we saw in the study in the mission, many of the people who are part of our workforce are the ones who are testing positive. So we want to make sure that many of those essential businesses that are open, as well as the delivery thats gonna start on may 18 for those other businesses, the delivery and the pickup, that they know that their workers can get tested. So i want to appreciate the equity team and the work that theyre doing, as well as appreciate the Human Rights Commission here in San Francisco. Thank you for the work that youve done on outreach, and i also just want to finally wrap it up with talking a little bit about the hotel rooms because were preparing for a significant surge. We were also preparing for the opportunity to make sure that people who are our essential Health Care Workers and our Public Safety officials who were concerned about the impacts on their families, that they had places to go where they were able to isolate themselves. Because of how well the city has been doing in terms of maintaining the curve, we have not used as many of those hotel rooms as we anticipated, and the good news is we are able to repurpose those hotels. Weve negotiated. Trent roer and the department of Human Services and his team were able to renegotiate those contracts. So now those extra few hundred rooms that were supposed to be used for our frontline workers, and to be clear, we still have access to rooms for our frontline Health Care Workers and Public Safety officials. Those rooms will be used for people who need to isolate if they are covid positive. And were talking about people who live in our singleroom occupancy hotels who, if they contract the virus, they cant necessarily social distance themself in an sro if they are living there with their family, or someone whos homeless, or someone who lives in a congregate living setting, or anyone who lives with family where theres not the ability for them to selfquarantine. We have the opportunity to extend our Hotel Capacity to provide this as a resource to the people of San Francisco. So this is really great, and i think weve come a long way. The challenges around covid19 still remain as real today as they have been since we announced the first case, and i just want to, again, thank the public for doing everything you can to follow the social distancing orders as well as the masks. Your commitment to this has been tremendous, and im sure continues to be very challenging. Its challenging for me. Its challenging for the team thats working every single day to keep all of us safe. Those who are putting themselves on the line to make sure that the city continues to run in some capacity, they are the reasons why were able to provide essential services, and so i just want to really continue to appreciate the team here at the Emergency Operations center, the people who are showing up every single day. The folks who are driving muni, the people, the Police Officers who are working their shifts, the paramedics and others who are out there doing their jobs every single day, and they dont have always the luxury to socially distance themselves when they are trying to save someones life. So so many people the Grocery Store clerks, the nurses, the doctors, the folks who are on the front lines. So many people who want to continue to make sure that they are there to support this city, to support you and to keep everyone safe, i want to, again, express my appreciation to each and every one of you and thank you to the people of San Francisco for continuing to lead us down a path of safety and getting to a better point. One day im going to stand up here and hopefully make a great announcement about the fact that because of all of you weve been able to lower the curve. That day is not today, but just keep that in mind. That day is coming and we will be so grateful when it does. And with that, id like to truce the director of the department of Public Health, dr. Greg colfax. Dr. Grant colfax good afternoon, im dr. Grant colfax, director of the department of Public Health for the city and county of San Francisco, and thank you, mayor breed, for your leadership during these very difficult and challenging times. Its been a week since the new health order took effect across San Francisco and the bay area region. As of today, there are 1954 San Francisco residents with confirmed cases of covid19, and, as the mayor mentioned, sadly a total of 35 san franciscans have died. I send my condolences to their loved ones, their friends and their community. Of the people with confirmed covid19 in San Francisco, 156 are experienced homelessness, and one of those persons has unfortunately died. This is why we continue to prioritize vulnerable populations in our ongoing response, including people over 60 and those with Underlying Health conditions. These groups include people experiencing homelessness and those who live in congregate settings, such as shelters and Skilled Nursing facilities and incarcerated settings. I point this out because even as we continue to move forward with plans to reopen, we must keep in mind that we are still that we are still in the midst of a pandemic. These are not normal times, and normal times will not return for some time. Our recovery as a community will depend on our ability to protect the most vulnerable and to maintain a Health System that can respond to continues outbreaks. And recovery is foremost on all our minds. So lets talk about the gradual path to the new normal. In the past week, we have begun to enjoy some loosening of restrictions with the reopening of construction and increased Outdoor Activities and jobs. We have also announced, as the mayor announced, that if all goes well, some additional businesses can begin to offer Curbside Pickup and Takeout Services as soon as a week from today. May 18. This includes bookstores, florists, art supply stores, toy stores and sewing stores. The last is particularly important for all those home mask makers out there. We will also be easing restrictions on medical care, such as nonessential surgeries and nonurgent ambulatory care visits. In all of these hopeful steps, we continue to put Community Health first. That means that we will keep a close eye, as we have throughout this pandemic, a close eye on the data so that we can move forward or pause or even increase restrictions depending on the spread of the virus in the community. It also means that we must support businesses and other entities with clear guidelines so that they can operate as safely as possible for their workers and customers and our community as a whole. In that effort, the department of Public Health has issued new directives to businesses that are allowed to operate now, such as restaurants, Delivery Services and Grocery Stores. These directives will also apply to the expanding group of businesses that we anticipate will be able to reopen to a limited capacity next week. And just to be very clear, the restaurants are operating under very limited capacity now. We are working with the Mayors Office of economic and Workforce Development and Economic Recovery Task force to reach out to businesses and make sure that they are informed about the guidelines and can prepare. Here are five highlights of what businesses need to do to be safe in the current coronavirus environment. One, create a health and safety plan. Two, ensure social distancing and Face Covering at work. Three, provide the proper equipment and cleaning materials, including hand sanitizing and handwashing. Four, protect customers by marking off sixfeet areas and cleaning hightouch surfaces and, five, ending selfservice of food items and the handling of produce without purchasing it. Some of these rules will change the way we currently shop and interact at work, or at least the way we used to shop and interact at work. This will take some adjustment, but believe me, they are worth it to keep everyone safe and allow for the economy to start to reopen. All of the new Health Directives are posted on the department of Public Health website, on our coronavirus page. And as we look forward to next monday, may 18, and the potential for some businesses to reopen safely for curbedside pickup, we will also be keeping a close eye on the data. Specifically we will be looking at hospitalizations of covidpositive patients as our metric of whether to move forward with expanded Curbside Pickup and takeout next week. This is a key metric. Since april 6, our hospitalization numbers have ranged from 70 to 94 patients. The curve is indeed flat. And as the mayor mentioned, it is not decreasing substantially. We have not yet seen a substantial downward trend. Today there are 71 people hospitalized in San Francisco with covid19. If we can keep within the range for the next week, we anticipate allowing the next group of businesses to reopen. If we have a sustained increase in hospitalizations, we will evaluate where the new cases are coming from and shift our focus there. The reason is an increase in hospitalizati hospitalizations will tell us that the virus started gaining strength in our community about two weeks ago and that more people are starting to get very sick and require hospital care. And there are data to show when our behavior allows the virus to spread, we see spikes in infections. We are seeing spikes in infections in Southern California commensurate with when the beaches became crowded. We have seen spikes of infections when people have gone to large gatherings at churches or birthday parties. We must be vigilant and we must continue our social distancing, our wearing mask and our emphasis on testing. If indeed our rate of hospitalizations start to climb substantially, it may not be safe to continue to reopen. Of course i hope i very much hope that that does not happen. And i am looking forward to picking up some books and gifts for myself. But we must proceed cautiously and maintain our gains. We will be giving more information this week about what the path to recovery will look like for San Francisco. The community, our community, your community, has been so vigilant and so effective in slowing down the spread of the virus. But you may well be asking where is this all headed . What will the new normal be like . This is a complex question, and we are in uncharted territory. We are in discussions with other counties and municipalities, as well as the state, about that very topic. We are working hard at all levels of San Francisco government and with community and Business Partners to develop our local road map. Again, following the science, the data and the facts. For now i can emphasize that we will all have an Important Role to play. You can think of these roles in groups of three. As community members, there are three key things you, your family, your friends can do. Physical distancing, Face Covering and testing. Testing if you are working outside your home. You should get tested, even if you do not have symptoms. As city and Public Health leaders, there are three critical things that we pledge to do. Testing. We will continue to expand testing toward our goal of universal access. Number two, outbreak detection. We will continue to build our Public Health reporting and Monitoring Systems to improve our ability to predict and respond to the virus more quickly. And three, Contact Tracing, which includes case detection and contact investigation and support for isolation and quarantine to reduce exposure and spread of the virus. If we all do these things, the three things you can do, the three things that government and the Health Department will do, we can accomplish the following three things. Decreased transmission. We have the power to reduce disease and death. We have that power. Number two, increased safety and confidence. We will see more opening up of society and people knowing how to act in the safest ways possible. And number three, that will lead to economic recovery, a goal we all share. Together we can do this, and we must do this together for it to be successful. San francisco, i cant thank you enough for your perseverance, dedication and ongoing commitment to each other, your neighbors and the community. This city has always been a very special place, and it is even more so now. This pandemic, as difficult as it is, has truly brought out the best of us, and i thank you for that and the ongoing commitment to that as we move forward together. Thank you. Scott will make some remarks, and i want to thank him for his incredible work and his teams efforts on the front lines in helping us manage this pandemic. Chief scott . Good afternoon. Everyone, im chief bill scott of the San Francisco Police Department, and as always, i want to first start off by expressing my immense gratitude to our mayor, london breed, and our director of Public Health, dr. Grant colfax for their outstanding leadership during this public Health Crisis. Im gonna start my remarks by piggybacking on what dr. Colfax just stated with my thanks to the residents of our city in San Francisco. I want to expand on the fact that without the cooperation and voluntary compliance of the people of our city, we probably wouldnt be doing as well as we are, so thank you again for our support and your voluntary compliance. And thats not to say we dont have challenges, because we do, and ill go into that in a minute, but i want to begin my remarks, again, with thanking those people that are, number one, following the Public Health orders. And number two, abiding by the law. And oftentimes its my job as your chief of police to get up and in front of you and report statistics on people who are breaking the law, but its also very important to say thank you to the people who abide by the law, because without that, our society would be in chaos, and we do understand that and thank you for abiding by the law. On that note, you know, this weekend we anticipated that it would be a busy weekend as far as more people out, and we had a team of officers, along with our cadets and volunteers, and we werent the only City Department out, but i want to speak of what we did this weekend in that regard. We worked and focused on 25 parks, one of which was dolores park, and i know the mayor has made comments about dolores park, and weve had some challenges there with the number of people wanting to enjoy that beautiful park and enjoy the beautiful weather. And i want to again thank the people who enjoyed our parks across the city over the weekend. What we are seeing is people are getting out to get fresh air, to get exercise, to enact or interact with another human being, and thats a good thing, but i want to go back and remind everybody of just the basics. We still need to have people keep that six feet of social distance if you are not with people who live in your household. We still need you to wear Face Coverings when youre out and youre doing your business. If youre not exercising or in the act of exercising, walking, jogging, bicycling, wear your Face Coverings. And we still need you all when you get home to wash your hands frequently to prevent the spread of this virus. Now our team of volunteers and officers and cadets were out this weekend in the parks. We issued we gave out 68 or 58, im sorry, 58 Face Coverings or masks. There were over 100 informal admonishments or warnings to people who were enjoying the park, and i will say almost by and large everybody who was warned informally came into compliance. So we want to thank you for that, and i want to thank you personally for that, because that is what makes this work. Well continue to focus on those efforts. We know as this goes along and the further that we get into this were now at nine weeks and going into our tenth week, people are anxious. People have anxiety. People want to get out and interact with other people. People want to do their business. Businesses have sacrificed immensely, and we want to thank all those Business Owners that have sacrificed to make this work. I know as the Health Orders evolve and as we continue to go into different phases of this pandemic and attempt to reopen to get things back as much as we can to normal, there are a lot of questions. And with some, there is a lot of confusion, and thats why we follow the compliance model that we follow of starting with education, and we will continue to do that. There were a lot of questions about how many cites we write or how many people were arrested. Fortunately we have not had to arrested anybody, but we have issued some citations, but we start with education first, and thats really important now as we begin to go into additional phases and attempts to reopen. Things change almost weekly, and its really important that we do our part, your Police Department and your Police Officers, to educate the community for those, as the mayor mentioned and as dr. Colfax mentioned, who may not be watching the news, who may not have access to internet or who may just not have heard that things have evolved. So thats why we start with education, and i must say by and large we have been very successful with this model, and we will continue to use this model of education, then warnings or admonishment, and for those folks that still refuse to abide by the Health Orders, we do have the citation as a last resort. So thats been successful, and ill get to kind of where we are on those numbers in a second. But again, thank you all for the cooperation and for making our city a model, as the mayor said. We are far better off than many other cities, and thats a good thing, and thats because of you all. So now ill get to the statistics of those who have not followed the Public Health directives, and then ill get into a little bit of our Crime Statistics for the week and for the year. As far as citations, we have issued a total of 23 citations since the initial Public Health order went into effect, and the breakdown is 13 businesses and 10 individuals. That 23 is an increase of one. The last time i reported we had 22, so thats an increase of one, and that additional citation was for a business. We have had a total of 105 formal admonishments, and the formal admonishment, what i mean by that, the formal warnings are those warnings thats your last warning before we have to come back and issue a citation. And that breakdown is 58 businesses and 47 individuals. Thats two higher than my last report of 103 in my last report. And i would like to say in addition to that, just like this weekend when our volunteers and our officers and our cadets were out in the park, they issued or had engagement with over 100 i think the number was about 138 individuals where those were informal warnings, where people were asked to either wear Face Covering or create some social distance, and they complied on the spot. So thats what were seeing by and large, and for those individuals where we do have to go back after youve been warned, particularly formally warned, we have issued citations, and we will continue to do that if we have to, but we hope we dont have to. As far as our Crime Statistics, i want to go into our weektoweek, which i have reported on consistently, and also our yearoveryear Crime Statistics. Overall the news is good, a 22. 5 decrease in part one Violent Crimes over this past week, that means 16 fewer Violent Crimes. In terms of property crime, we had a 33. 6 decrease in property crimes which equates to 186 fewer crimes for a total, part one, or serious crimes, that decrease was 32 . This is the week over the prior week. And that equates to 202 fewer crimes than the prior week. As far as our yeartodate Crime Statistics, we are at an 8. 6 crime decrease in part one Violent Crime which is 166 crimes fewer than this time last year. Property crime were at a 13 decrease in property crime which equates to 2,125 fewer property crimes over this time last year. And our total part one crime decrease is at 12. 4 , which equates to 2,291 fewer crimes than this time 2019. I will say, though, although we are pleased to have a decrease in crime, we do understand that part of the reason is that there are just fewer people out on the streets, fewer victims, fewer opportunities. And we want to remain vigilant when we do reopen to make sure that we can reopen without people being victimized. So we will have a presence, as we always have during this pandemic. We will continue that, and well make adjustments as we have to. I want to encourage everyone to continue to report crime, because thats part of this analysis, is you have to report it for us to know about it and to respond to it. So call 911 for Violent Crimes. If its a crime in progress, also call 911. If its a nonviolent property crime thats already occurred, you can call our nonemergency number at 4155530123. Thats 4155530123. Also you can call 311 or use our San Francisco Police Department website at sanfranciscopolice. Org to either request crime reports or report crimes that qualify for online reporting. We still have a report callin center that we stood up during this pandemic thats been very effective, so makes us more efficient in allowing our public to report crimes, and that will be ongoing. Lastly, i want to close with just the basics. As dr. Colfax has said, as our mayor has said, we need everybody if you must go out to conduct essential business or to just get exercise, please wear your Face Covering. Maintain a distance of six feet between you and anybody who is not living in your household, and when you return home, or even if you dont return home, whenever you can, wash your hands frequently. These prevention efforts, although basic, will help prevent the spread of covid19 and get us back to normal quicker. So please continue to cooperate and well continue to ask for your voluntary compliance, and we need to flatten the curve and beat this covid19 virus. So i will thank you and, again, we appreciate everybodys support. And with that, i think i have a few questions and then we will open it up to the questions for everybody else. We will begin questions for questions for chief scott. Chief scott, this question is from dan kerman. Have any businesses defied the current order and reopened on friday and over the weekend . If so, will this be allowed to continue . Over the weekend we did not have any we had one additional citation, as i stated. We didnt look, by and large, we are seeing really good compliance with our business community. We have thousands of businesses in this city, so its not to say that every single business has been checked, but we said from day one, on march 17, when we started this, that we would be proactive in going out to ensure that businesses were doing what was asked of them, and by and large that has happened. On those occasions where we had to go back and we had 13 examples of such, we have cited. After the warning has been given, and some of those 13 were cited on the first attempt after an inordinate amount of education was out in the public realm. So the answer to the question, though, is by and large we are seeing compliance, and we hope to continue that, and thats why i get up here and ask for voluntary compliance, and thats why we give warnings. Thats why we educate, and thats why we have this progressive pathway, to make sure we do this in a fair and just manner, but we need to get it done, and we need to make sure that people are compliant. The next question is from kathy novak. During the shelterinplace order, are any exceptions being made to the law requiring stores in San Francisco to accept cash . The ordnance about accepting cash is still active. It has not been suspended. I want to remind everybody what the spirit of this is. Its about equity. Not everybody has a credit card or an atm card, and people need essential services, and this is about equity, making sure that everybody in our city has access to what they need. So that is the spirit of this. So if there are people who are not abiding by that, the proper venue is to call our nonemergency line if you need a Police Officer to help you resolve that. Thats 4155530123. Okay, the next questions are for dr. Grant colfax, San Francisco department of Public Health. Dr. Colfax, the first question is from abc 7 news. Should san franciscans be concerned about people traveling to the city or the bay area from other counties and states that are less restrictive . Dr. Grant colfax so i think right now travel, its best for people to limit their travel to essential travel. This is not the time to go on a trip for recreation, a vacation, even to visit family and friends. I think its very important per my prior comments that we focus on focusing on the stayathome order, wearing Face Coverings, and social distancing. I think that with regard to people coming in to San Francisco from other areas, its also very important that we as a community create norms where the facial covering, the social distancing is encouraged and enforced. So i would really ensure that we do this, whether people are in San Francisco as part of their residency, whether theyre coming in to work in San Francisco, or if people are coming to travel here, that again, the social distancing, the facial mask are very important. And again, to limit travel to all but the most essential travel. Is the department of Public Health monitoring people from coming outside the area . So what we are monitoring is looking at the overall activity of the area, how Much Movement there is in terms of cellphone activity, cars and so forth. And whats really quite important about this is that it clearly shows that before we put more of these restrictions in place, the more people moved around, the more the virus was transmitted, and we see basically a clear correlation between activity in the public realms with transmission of the virus, which is why its so important as we gradually consider and put in guidelines around reopening that we are doing it in a very safe way, again with social distancing, with facial coverings, and really following the data and monitoring the activity in the city, as well as, of course, the very important metrics around the number of cases and the number of cases hospitalized in the city. The next question is from ctvu. The Trump Administration is calling for testing of people residing and working in Nursing Homes. How are San Franciscos efforts progressing . Well, were way ahead of the Trump Administration. We require are now requiring that Nursing Homes test staff and residents in Nursing Homes on a routine basis. That health order was issued last week, and we last week started testing staff and residents at laguna honda hospital, and this will be extended to Nursing Homes across the city. Very important, this is routine testing, testing people regardless of symptoms on a regular basis. Testing in the case of people having symptoms, whether staff or residents will also of course continue. Will the department of Public Health test private facilities to monitor covid19 for infection . The nursing home facilities . Yes. So the nursing home facilities in the city, with the exception of laguna honda, which is under direct auspices of the Health Department, the Nursing Homes are regulated and overseen by the state. Right now our focus is on doing conducting good Public Health interventions, and we are supporting those facilities Going Forward in scaling up their Testing Capacity. So the Health Department will be working very closely with those private homes and with the state to ensure that there are testing protocols made available, that in certain instances that materials and Technical Assistance is provided. And the intent is that over time these facilities will be able to conduct testing either on their own or through a third party or with ongoing assistance by the Health Department in a way that is sustainable and reinforceable. Last question is from mission local. Julie and mark. How much has homeless cases risen since last week . How many are severe or requiring hospitalization . So on the number of people diagnosed with covid19, of the 1,954 positive cases in the city, and this is with the thousands of tests that have been done, 8 or 156 people report experience homelessness. This was defined as this is defined as selfreporting homelessness, being included in a shelter outbreak or indicating homelessness or a shelter location as matched by Health Department records. And as i said, unfortunately one person who experienced homelessness has died of covid19related causes. Thank you. This concludes our questions for todays press conference. Roughly five years, i was working as a high school teacher, and i decided to take my students on a surfing field trip. The light bulb went off in my head, and i realized i could do much more for my students taking them surfing than i could as their classroom teacher, and that is when the idea for the city surf project was born. Working with kids in the ocean that arent familiar with this space is really special because youre dealing with a lot of fear and apprehension but at the same time, a lot of excitement. When i first did it, i was, like, really scared, but then, i did it again, and i liked it. Well get a group of kids who have just never been to the beach, are terrified of the idea, who dont like the beach. Its too cold out, and its those kid that are impossible to get back out of the water at the end of the day. Over the last few years, i think weve had at least 40 of our students participate in the city surf project. Surfing helped me with, like, how to swim. Weve start off with about two to four sessions in the pool before actually going out and surfing. Swimming at the pool just helps us with, like, being, like, comfortable in the water and being calm and not being all not being anxious. So when we started the city surf project, one of the things we did was to say hey, this is the way to earn your p. E. Credits. Just getting kids to go try it was one of our initial challenges for the first year or two. But now that weve been doing it three or four years, we have a group of kids thats consistent, and the word has spread, that its super fun, that you learn about the ocean. Starting in the morning, you know, i get the vehicles ready, and then, i get all the gear together, and then, i drive and go get the kids, and we take them to a local beach. We usually go to linda mar, and then occasionally ocean beach. We once did a special trip. We were in capitola last year, and it was really fun. We get in a circle and group stretch, and we talk about specific safety for the day, and then, we go down to the water. Once we go to the beach, i dont want to go home. I cant change my circumstances at home, but i can change the way i approach them. Our program has definitely been a way for our students to find community and build friends. I dont really talk to friends, so i guess when i started doing city surf, i started to, like, get to know people more than i did before, and people that i didnt think id like, like, ended up being my best friends. Its a group sport the way we do it, and with, like, close camaraderie, but everybodys doing it for themselves. Its great, surfing around, finding new people and making new friendships with people throughout surfing. It can be highly developmental for students to have this time where they can learn a lot about themselves while negotiating the waves. I feel significantly, like, calmer. It definitely helps if im, like, feeling really stressed or, like, feeling really anxious about surfing, and i go surfing, and then, i just feel, like, im going to be okay. It gives them resiliency skills and helps them build selfconfidence. And with that, they can use that in other parts of their lives. I went to bring amy family o the beach and tell them what i did. I saw kids open up in the ocean, and i got to see them connect with other students, and i got to see them fail, you know, and get up and get back on the board and experience success, and really enjoy themselves and make a connection to nature at the same time. For some kids that are, like, resistant to, like, being in a Mentorship Program like this, its they want to surf, and then later, theyll find out that theyve, like, made this community connection. I think they provided level playing fields for kids to be themselves in an open environment. For kids to feel like i can go for it and take a chance that i might not have been willing to do on my own is really special. We go on 150 surf outings a year. Thats yearround programming. Weve seen a tremendous amount of youth face their fears through surfing, and that has translated to growth in other facets of their lives. I just think the biggest thing is, like, that they feel like that they have something that is really cool, that theyre engaged in, and that we, like, care about them and how theyre doing, like, in general. What i like best is they really care about me, like, im not alone, and i have a group of people that i can go to, and, also, surfing is fun. Were creating surfers, and were changing the face of surfing. The feeling is definitely akin to being on a roller coaster. Its definitely faster than i think you expect it to be, but its definitely fun. It leaves you feeling really, really positive about what that kids going to go out and do. I think its really magical almost. At least it was for me. It was really exciting when i caught my first wave. I felt like i was, like it was, like, magical, really. When they catch that first wave, and their first lights up, you know their face lights up, you know you have them hooked. I was on top of the world. Its amazing. I felt like i was on top of the world even though i was probably going two miles an hour. It was, like, the scariest thing id ever done, and i think it was when i got hooked on surfing after mayor london breed we are on day way too many of this covid19 shutdown. I want to just start by thanking sf gov tv and those who are participating in this Virtual Press conference today. I am joined by the department of Public Health, dr. Grant colfax, as well as the police chief, bill scott. The director of the Human Services agency, trent rohrer, the director of housing and homelessness, Abigail Stewart khan, and im San Francisco mayor, london breed, here to provide you with an update on what is happening with covid19 in our city. As of today we have