Budget and Finance Committee forwards health plan rates, airport lounge relocation, Port crane barge and other contracts; continues shelter-equity ordinance

San Francisco — The Budget and Finance Committee met July 16 and moved a package of budgetary and procurement items to the full Board of Supervisors with positive recommendations while continuing Levi’s proposed shelter-equity ordinance for further amendment and public notice.

At the top of the agenda the committee voted to forward the San Francisco Health Service System’s 2026 plan and contribution rates, which the board’s Health Service Board recommended after actuarial review. Vice Chair Supervisor Matt Dorsey, the board’s appointee to the Health Service Board, said the package ‘‘reflects the city’s continued commitment to providing high quality, affordable healthcare for our active employees and retirees and their families.’’ Health Service System staff and the budget office told the committee the blended premium increase across plans is 8.2% and that the system covers roughly 138,000 lives and manages about $1.1 billion in annual premiums.

The committee also advanced a lease amendment allowing American Express to temporarily relocate its Centurion Lounge from SFO Terminal 3 to Terminal 2 during Terminal 3 West construction (about two years), which lowers the lounge’s minimum annual guarantee from about $3.4 million to $2,030,000 for the relocation period. Airport staff said the move preserves passenger service and employee jobs while construction proceeds; the BLA estimated about $490,000 in concession revenue will be lost to the general fund over the relocation term but that canceling the lease outright would have cost the city far more.

Other items the committee forwarded included a four‑year extension and increase to the citywide ServiceNow enterprise agreement (Carahsoft) to a not‑to‑exceed value of $28.3 million; a $626,000 Caltrans sustainable‑transportation planning grant to study a concept design for a SOMA Under‑Freeway Park (Public Works); a $16.75 million contract for a custom crane barge for the Port of San Francisco (Dutra Group), funded primarily by a State Lands Commission grant; and acceptance of a $5,047,167 California Energy Commission grant to install 403 electric‑vehicle charging ports on city fleet sites (with $2.8 million in matching funds). The committee also approved a $866,500 donation from the San Francisco Police Community Foundation to support district‑level officer wellness and community engagement programs.

On homelessness and behavioral health items, the committee approved the Department of Public Health’s acquisition of 601–617 Laguna Street for use as an adult residential facility (purchase price $11 million; total project not to exceed $20 million funded from Proposition C) and a contract amendment expanding Abode Services’ role as the city’s problem‑solving fiscal agent (increase to about $17.1 million through June 30, 2027). The committee also approved a retroactive sublease close‑out for the Bayview Vehicle Triage Center so the city can finalize payment to the state.

Two items were continued for further review and public notice. The City Administrator’s proposed updates to the administrative code expanding emergency‑procurement authority (chapter 21) were presented in detail and drew multiple questions from supervisors about price‑control guidance and reporting. The committee agreed to…