Vice chair Rafael Mandelman and today joined by Hillary Ronen. I would like to thank sfgtv for blasting this meeting. Do you have any announcements . Thank you madam chair. The board of supervisors and meetings are doing hybrid for attendance and providing access by telephone. Public comment will be taken on each item on the agenda. Those in person will be allowed to speak first and then those on the telephone line. For watching go to the our website and to the number on the screen and you will hear the discussion and in listening mode only. When Public Comment is called those should line up to speak and those on the telephone pressing star three to be added to the speaker line. Theres turn down the tv and devises youre using and each speaker is allowed two minutes to speak and you may submit Public Comments to the clerk of budget and finance committee at our website as cited on the agenda. If you submit Public Comment by email it will be forwarded to the supervisors and part of the following file. You may send written comments to by u. S. Postal service to 1 dr. B goodlett place room 244, San Francisco california. I do usually issue a reminder for those in attendance to silence all phones and all Electronic Devices so not to interrupt the proceedings in the champ wish. As you may order fema and was a release issuing a nation wide alert test today. I do ask everyone in attendance please ready to quietly alert if all the cell phones chime simultaneously and due to the observance of italian herrant today and indigenous day items will be on the agenda of october 17 on the board of supervisors unless otherwise stated. Madam chair. Thank you mr. Clerk. I want to remind item for the budget to have the budget and an left report and Department Presentations followed by the budget and legislative analyst and take questions and then Public Comments. With that mr. Clerk please call item number one. Yes item one is an ordinance amending the administrative code to require the controller to prepare an initial base budget to guide each agency in the preparation have had two year budget. To provide that these base budgets must include anticipated cost and agreements with Nonprofit Organizations to reflect inflation and to adopt the city policy that departments will enter into multiyear grants for a Grant Program exceeds beyond this year and members of the public that wish to comment pressing star three and the system indicates you of unmuted thats the cue to begin your comments . Thank you mr. Clerk. Today we have the legislation sponsor here, supervisor Hillary Ronen and the floor is yours thank you so much chair chan. Today i ask for your support on legislation designed to fix the grab we have every every year during the budget that complicates our budget process and causes stress and inning certainty for the nonprofit contractors. Our nonprofit contractors are the backbone of Many City Services and we rely to address homelessness, addiction and provisions of Mental Health services. Yet we know that many of these organizations struggle to recruit and retain staff to do this very difficult work due to inadequate funding and certainty to cover the year over year cost of doing business. A major contributing factor to the strag wills that are departments issue grants for one year for services and the likelihood the need is ongoing. This leads Service Providers uncertain funding for next year and doesnt allow to engage in adequate Financial Planning and more over causes stress for the critical staff not knowing if they will have a job and when there are multiyear grantses covered there is no increases to coninflation and costs and represents et cetera. This leads the board seemingly every year fighting with the mayor to add the cost of doing business in the citys budget process before the budget is committed to the board and usually during the add back process after the fact. The legislation before you today will address both of these issues. First it will require that when the department knows the service is beyond one year then the Department Issues a multiyear grants to allow organizations to better plan. Additionally this ordinance will require the development to include a cost of doing business increase for each subsequent year of the contract so each provider will know exactly how much they will be paid each year moving forward. We hope this legislation will bring some security and confidence for our nonprofit Service Providers and allow them to better plan finances on a year to year basis and therefore have a better chance of guaranteeing consistent and qualified staffing and services. Additionally i hope this will legislation will make the budget process a lot smoother for everyone. I want to thank the nonprofit and Community Groups advocating for a permanent fis for years and do such work providing service to the most vulnerable. And i want to thank my office who have been working for some time on the legislation and our Controllers Office the entire staff and in particular Ben Rosenfield who ran a working group for quite some time with nonprofits and how to fix a multitude of problems and this was one of the main sort of recommendations to come out that group. I hope to have your support colleagues and i think before if its okay with you chair chan Laura Marshal is here from the Controllers Office to give a slightly more in the weeds detailed presentation how to we will operationalize this legislation. Thank you. Thank you. Good morning supervisors. Thanks for having me. I am from the Controllers Office. I have a few slides to share just to provide a little bit of background and context to the issue. The supervisor gave a great overview. We do have a lot of business with nonprofits every year, and there are some of those grants and contracts that are one year in nature and one year project but a sizable portion of our nonprofit funding is going for services that we intend and expect to continue year over year, and quite a few years ago i dont know how many, 1520 years ago there was a decision by the mayor and the board to centralize Decision Making how to address inflationary costs across the portfolios nonprofit contracts. There was some variability across departments and how they might treat that so the decision was centralized into this what weigh know as the cost of doing business allocation which is typically a percent of general Fund Contract costs determined through the annual budget process. Over the last few years the Controllers Office is doing work this on issues and addressing sustainability and accountability are issue and did analysis how the growth and inflation out of covid was impacting salaries amongst the nonprofits that we fund and how its impacting further services that the clients are receiving. We muched a memo in may between the 22 and targeted the plan and the city would transition away from the annualized process and implement a process where departments would include planned numberses in the budgets for multiyear grants contracts with nonprofits. Some of the reasons why this change is needed most nonprofits are plannings their annual operating budgets during the year and have it done before we ready to tell them how much theyre might be receiving in this this plan to address the inflation that theyre already experiencing. Because there is it typically variance in the amount of the funding year to year its difficult to do contracts and departments have resulted in creating budgeted contracts a million, a million even when there they know there are increases in future years like the union negotiated raises for some of the providers but the variability keeps them the uncertainty of the funding created that need to create flat contracts and that creates the need to have to reopen contracts every year to account for this funding and it could take months and delay the nonprofits to invoice against those costs. The legislation instructs city departments to create multiYear Agreement when is we expect services to continue. This is mostly the case but theres cases where annual agreements are still used so this would change that. It instructs city departments to account for expected changes in costs in subsequent years including inflation. I think were thinking of this holistically and not just inflation but how do departments extent the programs and the costs of those programs to change over the life cycle of that contract . It further instructs the off to establish a practice of accounting for inflation within the citys basis budget so it changes our budgeting citys budgeting practices as well. One of the key benefits of this change is by moving the base budgeting process of accounting for inflation up forward and moving the having departments know the anticipated cost in future years of their contracts the departments, mayor and board can all make informed choices dur your budget process other during the entirety of the budget process about the cost of the services were buying in the community and the impacts of changes you may want to make in the budget. It also pushes departments and nonprofits to plan ahead more for known changes in their program. They may know that programs are growing or shrinking over time or different offerings and may have impacts on costs so it will encourage more negotiation around those cost and services included in those agreements. It will certainly create contracting efficiencies by not requiring contractings be open every year to apply the funding and mayors some of the other basis practices pulling up our thinking how our salary costs are expected to change in future years for example, so these are all the potential benefit this was change. Im happy to answer any questions from the Controllers Office. Thank you so much thank you so much. I wonder if you could just describe how this will be operationalized . So the controller if you can describe the controllers role in each in the budget process in terms of giving the departments the base budget with the cog we included . I may include on our budget expert to help. But each year the division creates a baked budget in the fall. We and the Controllers Office they mostly look at all of the expected changes in costs that we know about and sort of load up departments budgets based on that so if we know our mous are increasing that is incorporated, and then it sort of discussion with the mayor, Budget Analyst Division to identify sort of what the major changes are. They issue budget instructions to departments based on that. We assume through this letsive change that we would include in those budgets instructions details about how we have incorporated inflation into those base budgets for departments so theyre aware of sort of what has been adjusted in their own sort of grant and contracts lines in their budgets, and then its opens to the departments to make choices about their own coming budget year in conversation with the Mayors Office et cetera and sort of what their priorities are with the full cost of the contracts known to them in advance, but the goal of moving this conversation towards the front end. All right. Thank you so much. Thanks for all the work on this. I really appreciate it. Thank you. Thank you supervisor ronen and thank you so much to Laura Marshal. Ms. Rationales presentation today i would like to be added as a cosponser to the legislation. Thank you so much for the work and leadership on this. What i have definitely learned in past year is especially when it comes to security contract that recognizes that they are while some of are new contracts is that we did not really calculate into the cost of inflation particularly for full costs, and that resulted in adjustments to the existing contract, but that is still again a process that if we only have this in place we could actually adjust accordingly, and without having come back to the board or you know and that we can actually have really a honest conversation around the true costs of how do we serve people and how many people we can actually serve, and of course i think look forward to the next step and frankly its not about the true cover of the contract but also the results in the contract as well is what i am hoping once we take care of this the true cost of the contract we can [speakers talking over one another] built effectiveness of those contracts and with that vice chair mandelman. Thank you madam chair. I would like to be added as a cosponser on this. I have done no work on this but appreciate the work of others and would like to associate myself with this. Thank you. And supervisor safai. [off mic]. Thank you. Seeing that with a lot of support of this legislation thank you supervisor ronen. Were going to go to Public Comments on this item. Thank you madam chair, members of the public who wish to speak and join in person should line up along the curtains to my right, your left and for those already in the queue please wait until the system indicates you have been unmuted im sorry, pressing star three and continue to wait until the system indicates youre unmuted and the signal to begin your comments. If the first speaker account step up to the lectern and i could start your time. If the first speaker can step up to the lectern. Thank you. Good morning supervisors. Debbie herman from the San Francisco network. I am excited today. This is the most important piece of legislation for the city Nonprofit Partnership in many, many years, and first of all its a historic step in addressing the issue of under funding nonprofit contract and moving towards a more sustainable and reliable system that takes inflationary increases into account at the beginning of the budget process. Secondly, 20 years ago board legislation created the city Nonprofit Contracting Task force to streamline the contracting process, and during that endless process nonprofits asked the city to adopt multiyear contracts as the single most efficient way we could address all kinds of problems and make it easier to do business with the city, address late certifications, predict more predictability and security for staff and we have been told over the years no we cant do that. We cant do that. Well, here we are. We should. We can with your support today we will. I want to thank supervisor ronen for introducing this. We have worked on this for many, many months and thanks the staff and Controllers Office and Laura Marshal. Thank you to the other supervisors on this panel for your cosponsorship and looking forward to getting this passed. Thank you debbie for your comments. Next speaker please. Good morning supervisors. Carl kramer San Francisco living Wage Coalition. We did a study showing that a number of city departments do not track the disbursement of funds budgeted for wage increases to Nonprofit Organizations with which they contract for services to residents. These nonprofits organizations employ thousands of workers including desk clerks and janitorial staff and homeless shelters and summer programs for youth, senior program, homeless support, violence prevention and Mental Health services among many others. Living Wage Coalition researchers sent information requests to city departments for figures on the disbursement of funding for raising the minimum wage rate required by the minimum compensation ordinance and other inflationary costs such as rent, insurance, over head and wage increases for those that higher realities that are covered by the cost of doing business increases. For the fiscal years 201920 through 2122. While departments such as children youth and family, Public Health, first 5 commission and the Human Services agency provided clear records of allocated increases six departments reported they didnt keep records of m co or cod b allocations to nonprofits. These include the office of city administrator, Mayors Office of homelessness and Supportive Housing, the art commission, the human rights commission, the adult probation development and the department of public works. The Public UtilitiesCommission Says it uses its own funding for Consumer Price indexes for nonprofits but doesnt keep records of the amounts. Without receiving figures we dont have confidence urevidence to confirm these wages reached Nonprofit Organizations. The coalition, the Budget Justice Coalition and [speaking spanish] and women organized to maccabeus not existent [off mic]. Are supporting this legislation. Thank you and i have the study if anyone wants it. Next speaker please. Hello board members. Good morning. David moore San Francisco pretrial diversion project. Thank you supervisor ronen and the supervisors