SFGov Watch

1. Discussion Topics
   1. San Francisco Unified School District (SFUSD) Budget Crisis
   2. Clean Water Act Litigation
   3. Rent Control and Costa-Hawkins
   4. Fentanyl Crisis and Public Health Response
   5. Public Comment and Labor Issues
2. Select Legislative Items
   1. Planning Code Amendment – 555 9th Street Special Sign District
   2. Rent Control Expansion – Administrative Code Amendment
   3. Public Safety – Vehicle Sideshows
   4. Gas Infrastructure for EPCA Appliances – Building Code Amendment
   5. Social Impact Partnership Program Expansion – SFPUC Contracts
   6. New Construction Exemption from Rent Control
   7. Public Health – Grant Agreement for Planned Parenthood
   8. State of the Hotel Industry Hearing

Discussion Topics

San Francisco Unified School District (SFUSD) Budget Crisis

A significant portion of the meeting was dedicated to discussing the budget crisis at SFUSD and the threat of a potential state takeover. Mayor London Breed emphasized the urgency of addressing the financial challenges faced by the district to prevent such a takeover. She outlined the city’s efforts to collaborate with the school district, including a newly formed team of experts to help balance the budget and prevent detrimental school closures. The mayor stressed that a state takeover would have long-term negative consequences, including draining school resources, reducing programming, and removing local control. There were also discussions on the district’s payroll system and recruitment challenges, particularly around hiring paraeducators and addressing teacher shortages.

Clean Water Act Litigation

Another major topic of debate was San Francisco’s involvement in a U.S. Supreme Court case concerning the Clean Water Act. Several supervisors, including Supervisor Peskin, expressed concerns about how the litigation might impact the city’s environmental responsibilities and financial liabilities. The discussion focused on the risks posed by the case, particularly the possibility of the city facing a $10 billion liability if the court ruled against San Francisco. Supervisors also debated a resolution that urged the city attorney to seek mediation with the Environmental Protection Agency (EPA) to resolve the case before it reached the Supreme Court. There were divided opinions on the likelihood of success in such mediation.

Rent Control and Costa-Hawkins

A significant legislative issue discussed was the amendment to rent control laws in relation to Costa-Hawkins. The supervisors debated the implications of the state law, which limits rent control to buildings constructed before 1979. Amendments proposed by several supervisors aimed to extend rent control to buildings constructed before 1995, a measure that would align San Francisco with more recent state laws. There was debate over whether to duplicate files for further discussion or proceed with the current legislation. Supervisors expressed concerns about the balance between protecting tenants and respecting the legal framework established by Costa-Hawkins.

Fentanyl Crisis and Public Health Response

The meeting also touched on the city’s response to the fentanyl epidemic. Discussions highlighted state-level changes and the city’s anticipation of further resources through Proposition 1. A proposal was made to restructure the working group addressing mental health and drug treatment services, reducing the group’s size to make it more agile and focused. There was also talk about expanding court-mandated drug treatment programs as a condition for resolving drug-related charges, with the aim of improving public health outcomes while maintaining human dignity.

Public Comment and Labor Issues

The public comment section saw a strong turnout from hotel workers and union members advocating for better wages and working conditions. Many workers emphasized the importance of securing healthcare benefits and fair wages, especially in the wake of the COVID-19 pandemic. This segment of the meeting included personal testimonies from workers, many of whom spoke about the struggles they face, including the cost of living in San Francisco and the pressures of maintaining their livelihoods under current labor conditions. Several supervisors expressed support for the workers and their demands for fair treatment.

Select Legislative Items

Planning Code Amendment – 555 9th Street Special Sign District

• Issue: The ordinance sought to establish a Special Sign District for the shopping center at 555 9th Street, allowing more flexible sign controls.
• Discussion: The debate focused on the potential economic benefits and the visual impact of modifying the sign regulations. Some were concerned about setting a precedent for other areas seeking similar allowances.
• Outcome: The ordinance was passed on its final reading, allowing for the establishment of the Special Sign District.

Rent Control Expansion – Administrative Code Amendment

• Issue: This ordinance aimed to extend rent control to buildings constructed between June 14, 1979, and November 5, 2024, contingent on changes to the Costa-Hawkins Rental Housing Act.
• Discussion: Proponents argued that the expansion would provide much-needed tenant protections, while opponents feared it could stifle new housing development. Supervisor Melgar dissented, reflecting concerns over economic implications for developers.
• Outcome: The ordinance passed on its first reading, setting up for further discussions and potential final passage.

Public Safety – Vehicle Sideshows

• Issue: The ordinance aimed to curb illegal vehicle sideshows by prohibiting the promotion, attendance, and organization of these events, along with allowing the impoundment of participating vehicles.
• Discussion: The supervisors debated the impact on public safety and the need to crack down on these dangerous gatherings. There was also a focus on ensuring that penalties would be fair and effective.
• Outcome: The ordinance was amended and passed on its first reading, moving toward final passage.

Gas Infrastructure for EPCA Appliances – Building Code Amendment

• Issue: This ordinance allowed for gas infrastructure installation in new buildings for certain appliances, despite the city’s push for full electrification.
• Discussion: The conversation centered around balancing environmental goals with practical energy needs. Some argued that the legislation allowed for flexibility until electric alternatives become viable for all appliances.
• Outcome: The ordinance passed its first reading, indicating broad support for a balanced approach to energy policy.

Social Impact Partnership Program Expansion – SFPUC Contracts

• Issue: This ordinance sought to expand the SFPUC’s Social Impact Partnership Program by requiring increases in social impact commitments when contracts are amended or modified.
• Discussion: The Board discussed how expanding this requirement would ensure greater social benefits from large public contracts, such as job creation and community investments, without imposing too much burden on contractors.
• Outcome: The ordinance passed on its first reading, with the expanded requirements set to take effect on applicable contracts.

New Construction Exemption from Rent Control

• Issue: This legislation aimed to remove rent control exemptions for newly constructed units if the Costa-Hawkins Act is amended or repealed.
• Discussion: The discussion focused on preparing for potential changes to state law and ensuring that the city’s rent control protections would cover as many units as possible. Concerns were raised about how this could affect housing supply.
• Outcome: The ordinance passed on its first reading, setting the stage for future actions depending on changes to state law.

Public Health – Grant Agreement for Planned Parenthood

• Issue: The ordinance proposed increasing funding for Planned Parenthood Northern California’s security services by $171,000.
• Discussion: Supervisors discussed the need for increased security at clinics, particularly in light of recent national threats to reproductive rights. The funding increase was framed as essential for maintaining safe access to healthcare.
• Outcome: The ordinance passed on its final reading, increasing the grant for security services at Planned Parenthood.

State of the Hotel Industry Hearing

• Issue: This special hearing addressed the state of the hotel industry in San Francisco, focusing on the conditions faced by workers and guests.
• Discussion: The Board, alongside the City Controller, discussed the economic recovery of the hotel industry post-pandemic, labor rights, and working conditions. Many workers shared personal experiences highlighting the need for improved conditions.
• Outcome: The hearing was held, and the information gathered is expected to influence future policies related to labor rights and industry support.