A. This Board of Supervisors ("Board") recognizes the need to safeguard and enhance the City's earthquake safety and emergency response and recovery by rehabilitating and improving critical facilities that support the City's first responders and providing reliable public transportation after a major seismic event.

B. The Earthquake Safety and Emergency Response Bond ("Bond") will provide funding to construct, improve, rehabilitate, replace, or expand earthquake safety and emergency responsiveness facilities and infrastructure, and critical transportation facilities and infrastructure (as described below in Section 3).

C. This Board now wishes to describe the terms of a ballot measure seeking approval for the issuance of general obligation bonds to finance all or a portion of the City's earthquake safety and response needs as described below.

Section 2. Special Election.

"SAN FRANCISCO EARTHQUAKE SAFETY AND EMERGENCY RESPONSE BOND, 2026. $535,000,000 of bonded indebtedness be adopted to improve fire, earthquake, and emergency response by retrofitting, improving, expanding, constructing, and/or replacing: deteriorating pipes, tunnels, and related facilities to ensure firefighters can access enough water to fight fires from a major disaster or emergency; unsafe or deteriorating emergency response facilities, including neighborhood fire stations, critical transportation facilities, and public safety facilities; and to pay related costs, with a duration up to 30 years from the time of issuance, an estimated tax rate of $7.45/$100,000 of assessed property value, and estimated average annual revenues of $35,900,000, subject to independent citizen oversight and regular audits; and authorizing landlords to pass-through to residential tenants in units subject to Chapter 37 of the Administrative Code ("Residential Stabilization and Arbitration Ordinance") 50% of the increase, if any, in the real property taxes attributable to the cost of the repayment of the bonds."

The special election called and ordered shall be referred to in this ordinance as the "Bond Special Election."

Section 3. Proposed Program.

All contracts that are funded with the proceeds of bonds authorized hereby shall be subject to the provisions of Chapter 83 of the Administrative Code ("First Source Hiring Program"), which fosters construction and permanent employment opportunities for qualified economically disadvantaged individuals. In addition, all contracts that are funded with the proceeds of bonds authorized hereby also shall be subject to the provisions of Chapter 14B of the Administrative Code ("Local Business Enterprise and Non-Discrimination in Contracting Ordinance"), which assists small and micro local businesses to increase their ability to compete effectively for the award of City contracts. The proposed program can be summarized as follows:

A. EMERGENCY FIREFIGHTING WATER SYSTEM.

(collectively, the "EFWS Project").

B. FIREFIGHTING FACILITIES AND INFRASTRUCTURE.

(collectively, the "Firefighting Facilities and Infrastructure").

C. POLICE FACILITIES AND INFRASTRUCTURE.

Up to $72,000,000 of the Bond shall be allocated to the construction, acquisition, improvement, renovation, retrofitting, or replacement of police facilities and infrastructure for earthquake safety and emergency response, including without limitation, neighborhood police stations and supporting facilities (collectively, the "Police Facilities and Infrastructure").

D. MUNICIPAL RAILWAY BUS STORAGE AND MAINTENANCE FACILITY AT POTRERO YARD.

(collectively, the "Muni Bus Storage and Maintenance Facility at Potrero Yard").

E. PUBLIC SAFETY FACILITIES AND INFRASTRUCTURE.

Subject to a process developed by the Office of Resilience of Capital Planning, and approval by the Capital Planning Committee, up to $33,000,000 of the Bond shall be allocated to the repair, improvement, renovation or retrofitting of public safety facilities and infrastructure (collectively, the "Public Safety Facilities and Infrastructure").

F. CITIZEN'S OVERSIGHT COMMITTEE.

A portion of the Bond shall be used to perform audits of the Bond, as further described in Section 17.

Section 4. Bond Accountability Measures.

The Bond shall include the following administrative rules and principles:

A. OVERSIGHT.

The proposed bond funds shall be subjected to approval processes and rules described in the Charter and Administrative Code. Pursuant to Administrative Code Section 5.31, the Citizen's General Obligation Bond Oversight Committee shall conduct an annual review of bond spending and shall provide an annual report of the bond program to the Mayor and the Board of Supervisors.

B. TRANSPARENCY.

The City shall create and maintain a Web page outlining and describing the bond program, progress, and activity updates. The City shall hold an annual public hearing and review on the bond program and its implementation before the Capital Planning Committee. The City shall also hold periodic public hearings and reviews on the bond program and its implementation before the Police and Fire Commissions and the Citizen's General Obligation Bond Oversight Committee.

Section 5. Estimated Cost.

Such resolution was passed by two-thirds or more of the Board and approved by the Mayor. In such resolution it was recited and found by the Board that the sum of money specified is too great to be paid out of the ordinary annual income and revenue of the City in addition to the other annual expenses or other funds derived from taxes levied for those purposes and will require expenditures greater than the amount allowed by the annual tax levy.

The method and manner of payment of the estimated costs described in this ordinance are by the issuance of bonds of the City not exceeding the principal amount specified.

Such estimate of costs as set forth in such resolution is adopted and determined to be the estimated cost of such bond-financed improvements and financing, as designed to date.

Section 6. Election Conduct.

The Bond Special Election shall be held and conducted and the votes received and canvassed, and the returns made and the results ascertained, determined and declared as provided in this ordinance and in all particulars not recited in this ordinance such election shall be held according to the laws of the State of California ("State") and the Charter of the City ("Charter") and any regulations adopted under State law or the Charter, providing for and governing elections in the City, and the polls for such election shall be and remain open during the time required by such laws and regulations.

Section 7. Consolidation.

The Bond Special Election is consolidated with the General Election scheduled to be held in the City on Tuesday, June 2, 2026. The voting precincts, polling places and officers of election for the June 2, 2026 General Election are hereby adopted, established, designated and named, respectively, as the voting precincts, polling places and officers of election for the Bond Special Election called, and reference is made to the notice of election setting forth the voting precincts, polling places and officers of election for the June 2, 2026 General Election by the Director of Elections to be published in the official newspaper of the City on the date required under the laws of the State of California.

Section 8. Ballot Text.

The ballots to be used at the Bond Special Election shall be the ballots to be used at the June 2, 2026, General Election. The word limit for ballot propositions imposed by Municipal Elections Code Section 510 is waived. On the ballots to be used at the Bond Special Election, in addition to any other matter required by law to be printed thereon, shall appear the following as a separate proposition:

The City's current debt management policy is to keep the property tax rate for City general obligation bonds below the 2006 tax rate by issuing new bonds as older ones are retired and the tax base grows, though this property tax rate may vary based on other factors."

Each voter to vote in favor of the issuance of the foregoing bond proposition shall mark the ballot in the location corresponding to a "YES" vote for the proposition, and to vote against the proposition shall mark the ballot in the location corresponding to a "NO" vote for the proposition.

Section 9. Two-Thirds Vote Requirement.

Such bonds shall bear interest at a rate not exceeding applicable legal limits.

The votes cast for and against the proposition shall be counted separately and when two-thirds of the qualified electors, voting on the proposition, vote in favor, the proposition shall be deemed adopted.

Section 10. Net of Financing Costs.

Section 11. Tax Levy.

Section 12. Publication.

This ordinance shall be published in accordance with any State law requirements, and such publication shall constitute notice of the Bond Special Election, and no other notice of the Bond Special Election hereby called need be given.

Section 13. Tenant Passthrough.

Section 14. CEQA Findings.

The Board, having reviewed the proposed legislation, makes the following findings in compliance with the California Environmental Quality Act ("CEQA"), California Public Resources Code Sections 21000 et seq., the CEQA Guidelines, 14 California Code of Regulations Sections 15000 et seq., ("CEQA Guidelines"), and Administrative Code Chapter 31 ("Chapter 31"):

(ii) Firefighting Facilities and Infrastructure. For the reasons set forth in the letter from the Environmental Review Officer of the Planning Department, dated December 18, 2025, a copy of which is on file with the Clerk of the Board in File No. 251216 and incorporated by reference, the Board finds that the bond proposal as it relates to funds for Firefighting Facilities and Infrastructure is not subject to CEQA, because the establishment of a government financing mechanism that does not involve any commitment to specific projects to be constructed with the funds is not a project as defined by CEQA and the CEQA Guidelines. The use of bond proceeds to finance any project or portion of any project with funds for the Firefighting Facilities and Infrastructure portion of the Bond will be subject to approval of the Board upon completion of planning and any further required environmental review under CEQA for the individual Firefighting Facilities and Infrastructure projects.

(iii) Police Facilities and Infrastructure. For the reasons set forth in the letter from the Environmental Review Officer of the Planning Department, dated December 18, 2025, a copy of which is on file with the Clerk of the Board in File No. 251216 and incorporated by reference, the Board finds that the bond proposal as it relates to funds for Police Facilities and Infrastructure is not subject to CEQA, because the establishment of a government financing mechanism that does not involve any commitment to specific projects to be constructed with the funds is not a project as defined by CEQA and the CEQA Guidelines. The use of bond proceeds to finance any project or portion of any project with funds for the Police Facilities and Infrastructure portion of the Bond will be subject to approval of the Board upon completion of planning and any further required environmental review under CEQA for the individual Police Facilities and Infrastructure projects.

(iv) Muni Bus Storage and Maintenance Facility at Potrero Yard. The Muni Bus Storage and Maintenance Facility at Potrero Yard refers to the "modified project" described in the Memorandum to File for the Potrero Yard Modernization Project (2500 Mariposa Street), Case No. 2019-021884ENV, dated October 25, 2024 (the "Memorandum to File"), a copy of which is on file with the Clerk of the Board of Supervisors in File No. 251216, and hereby incorporated by reference. The Muni Bus Storage and Maintenance Facility at Potrero Yard project is a portion of the Potrero Yard Modernization Project that was described and analyzed in the Final Environmental Impact Report for the Potrero Yard Modernization Project ("FEIR") that the San Francisco Planning Commission certified as adequate, accurate, and complete on January 11, 2024, by Motion No. 21482, a copy of which is on file with the Clerk of the Board of Supervisors in File No. 231256 and incorporated by reference, pursuant to CEQA, the CEQA Guidelines, and Chapter 31 of the San Francisco Administrative Code. On January 11, 2024, by Motion No. 21483, a copy of which is on file with the Clerk of the Board of Supervisors in File No. 240047 and incorporated by reference, the Planning Commission, based on substantial evidence in the entire recording of proceedings, made certain findings regarding the environmental impacts of the Potrero Yard Modernization Project that was analyzed in the FEIR, rejected alternatives as infeasible, adopted the proposed mitigation monitoring and reporting program ("MMRP"), on file with the Board in File No. 240047 and incorporated by reference, and set forth a "Statement of Overriding Considerations" explaining why the benefits of the Project outweigh the unavoidable adverse environmental effects identified in the FEIR and that those adverse environmental effects are therefore acceptable.

On March 12, 2024, by Ordinance No. 57-24 passed by the Board of Supervisors on March 12, 2024, and signed by the Mayor on March 22, 2024, a copy of which is on file with the Clerk of the Board of Supervisors in File No. 240047 and incorporated by reference, the Board of Supervisors, having reviewed the FEIR, concurred with the Planning Commission's conclusions regarding the FEIR and affirmed the Planning Commission's certification of the FEIR. In addition, in Ordinance No. 57-24, the Board of Supervisors adopted and incorporated by reference the CEQA findings that the Planning Commission adopted in Motion No. 21483 including the Statement of Overriding Considerations and the MMRP. On March 22, 2024, the Mayor approved Ordinance No. 57-24.

In the Memorandum to File, the Planning Department determined that no additional environmental review is necessary for the reasons set forth in the Memorandum to File and that the Memorandum to File provides sufficient documentation that the modified project does not warrant additional environmental review. The "CEQA Findings" shall refer to the CEQA findings included in the Motion No. 21482, Motion No. 21483, Statement of Overriding Considerations, Ordinance No. 57-24, and the Memorandum to File, all as described in this Section 3(iv).

(a) The Board has reviewed and considered the FEIR, the MMRP, the Memorandum to File, and the record as a whole and incorporates the CEQA Findings by this reference.

(b) The Board finds that the FEIR is adequate for its use as the decision-making body for approval of this ordinance.

(c) The Board hereby adopts as its own the preceding CEQA Findings including the Statement of Overriding Considerations.

(d) The Board further finds that since the FEIR was finalized, there have been no substantial project changes and no substantial changes in project circumstances that would require major revisions to the FEIR due to the involvement of new significant environmental effects or an increase in the severity of previously significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in the FEIR.

(e) In accordance with CEQA, the Board has considered the mitigation measures described in the FEIR and hereby requires that the MMRP be imposed as conditions on the implementation of the Muni Bus Storage and Maintenance Facility at Potrero Yard project approved by the ordinance submitting this bond to the voters.

(f) With the implementation of the mitigation measures contained in the MMRP, any potential environmental impacts resulting from the Muni Bus Storage and Maintenance Facility at Potrero Yard project will be less than significant as described in the FEIR.

(g) Based on the FEIR, the Memorandum to File, and the record as a whole including all written materials and any oral testimony received by the Board for the Potrero Yard Modernization Project, the Board hereby finds that the FEIR reflects the independent judgment and analysis of the Planning Department and the Board, is adequate and complete, and there is no substantial evidence that the proposed Muni Bus Storage and Maintenance Facility at Potrero Yard project, given the implementation of the mitigation measures as stated in the FEIR and the adoption of the MMRP, could have a significant effect on the environment as shown in the analysis of the FEIR. The Board hereby adopts the FEIR and the MMRP.

(v) Public Safety Facilities and Infrastructure. For the reasons set forth in the letter from the Environmental Review Officer of the Planning Department, dated December 18, 2025, a copy of which is on file with the Clerk of the Board in File No. 251216 and incorporated by reference, the Board finds that the bond proposal as it relates to funds for Public Safety Facilities and Infrastructure is not subject to CEQA, because the establishment of a government financing mechanism that does not involve any commitment to specific projects to be constructed with the funds is not a project as defined by CEQA and the CEQA Guidelines. The use of bond proceeds to finance any project or portion of any project with funds for the Public Safety Facilities and Infrastructure portion of the Bond will be subject to approval of the Board upon completion of planning and any further required environmental review under CEQA for the individual Public Safety Facilities and Infrastructure projects.

Section 15. General Plan Conformity.

The Board finds and declares that the proposed Bond is (i) in conformity with the priority policies of Section 101.1(b) of the Planning Code, (ii) in accordance with Section 4.105 of the Charter and Section 2A.53(f) of the Administrative Code, and (iii) consistent with the City's General Plan, and adopts the findings of the Planning Department, as set forth in the General Plan Referral Report dated December 9, 2025, a copy of which is on file with the Clerk of the Board in File No. 251216 and incorporates such findings by reference.

Section 16. Use of Bond Proceeds.

Section 17. Citizens' Oversight Committee.

Section 18. Time Requirements.

The time requirements specified in Section 2.34 of the Administrative Code are waived.

Section 19. Reimbursement of Prior Expenditures.

The City reasonably expects on the date hereof that it will reimburse the Expenditures with the proceeds of the Bonds.

Each Expenditure was and will be either (a) a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure), (b) a cost of issuance with respect to the Bonds, (c) a nonrecurring item that is not customarily payable from current revenues, or (d) a grant to a party that is not related to or an agent of the City so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the City. The maximum aggregate principal amount of the Bonds expected to be issued for the Project is $535,000,000. The City shall make a reimbursement allocation, which is a written allocation by the City that evidences the City's use of proceeds of the applicable series of Bonds to reimburse an Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or the related portion of the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid. The City recognizes that exceptions are available for certain "preliminary expenditures," costs of issuance, certain de minimis amounts, expenditures by "small issuers" (based on the year of issuance and not the year of expenditure) and Expenditures for construction projects of at least 5 years.

Section 20. Authorization.

The appropriate officers, employees, representatives and agents of the City are hereby authorized and directed to do everything necessary or desirable to accomplish the calling and holding of the Bond Special Election, and to otherwise carry out the provisions of this ordinance.

Section 21. Documents on File.

Documents referenced in this ordinance are on file with the Clerk of the Board of Supervisors in File No. 251216, which is hereby declared to be a part of this ordinance as if set forth fully herein.

Section 22. Effective Date.