Budget & Finance Committee forwards SFPUC contract increases, Homebridge IHSS actions and major health and housing grants to full Board

The San Francisco Budget and Finance Committee on April 30 voted to forward 17 agenda items to the full Board of Supervisors, including contract amendments for two San Francisco Public Utilities Commission projects, a multi‑year extension and increase for HealthRight 360 behavioral health contracts, modifications to Homebridge in‑home supportive services funding, and several housing and infrastructure grant applications.

The committee, chaired by Supervisor Connie Chan, voted unanimously on each item (Vice Chair Matt Dorsey and Member Joanne Gardio joined Chan in recorded ayes for items where roll call was recorded). Several items drew extended staff presentations and member questions but no public speakers during the committee hearing, with the exception of public comment on the Homebridge items and HealthRight 360 where labor and clients spoke in support.

Why it matters: The items advance multi‑million dollar contracts and grant applications that affect coastal engineering and water infrastructure, the city’s capacity for substance‑use treatment and homelessness services, and housing and transportation infrastructure funding for major developments.

Top actions and discussion

HealthRight 360 contract extension and increase (Item 10) The committee approved forwarding a three‑year extension and an increase to HealthRight 360’s agreement with the Department of Public Health (DPH), moving the contract term to June 30, 2028 and raising the not‑to‑exceed amount to about $305 million. DPH Director Dan Simon explained the department’s priority on strengthening oversight and performance metrics after recent safety incidents at some residential treatment sites. He described site improvements HealthRight 360 has implemented, including hourly bed checks and changes to reduce opportunities to bring contraband into residential settings. The Budget and Legislative Analyst recommended approval; Supervisor Dorsey moved the item and the committee forwarded it by roll call (Dorsey, Engadio/Gardio, Chan recorded as ‘aye’).

Ocean Beach Climate Change Adaptation contract amendment (Item 3) The committee forwarded a resolution authorizing SFPUC to execute Amendment No. 3 to its engineering services contract for the Ocean Beach Climate Change Adaptation project, increasing the contract by $7,000,000 to a new not‑to‑exceed of $12,750,000 and extending the contract term by six years through September 25, 2033. SFPUC project manager Anna Roche said the extra design work responds to California Coastal Commission permit conditions (including additional habitat mitigation and public amenities) and to increased coordination across city agencies and federal partners. The Budget Office’s analyst noted the amendment is funded by wastewater capital revenues, wastewater bonds and any available grants.

Transmission pipeline engineering contract amendment (Item 4) The committee forwarded an amendment (Pro168A) to a contract with AECOM to increase engineering services for several transmission pipeline projects by $7,000,000, bringing the contract NTE to $14,000,000 with no change in contract duration. SFPUC staff described aging infrastructure across the regional system and new information from condition assessments that has changed scope and cost estimates for work on the San Joaquin pipeline, Moccasin bypass and penstock rehabilitation. The Budget Analyst summarized the funding as water enterprise capital revenues.

Homebridge IHSS contract actions (Items 5 and 6) The committee considered two related items from the Human Services Agency (HSA) and Department of Disability and Aging Services affecting Homebridge, the city’s contract‑mode provider for in‑home supportive services (IHSS). HSA requested a new four‑year grant agreement for contract‑mode IHSS services and a separate amendment to the current grant that would add approximately $2,419,719 for the period May 1–June 30, 2025. HSA reported that Homebridge serves a relatively small share of IHSS recipients (about 5%) but specializes in medically and psychosocially complex clients and has expanded its work at permanent supportive housing sites.

During the hearing Chair Chan moved to amend the new four‑year agreement so that the committee approves the contract term and overall not‑to‑exceed but releases only the first‑year funds now: the amendment revised the not‑to‑exceed dollar figure shown in the resolution to $39,600,000 (first‑year amount) while preserving the four‑year contract term. The committee then forwarded the amended item and the FY2025 amendment (the $2.4M increase) to the full Board with a positive recommendation by roll call.

IT networking contract amendment for SFO and city agencies (Item 7) The Office of Contract Administration requested an increase to the city’s Juniper networking equipment contract with Intervision Systems to cover major equipment purchases, primarily SFO’s NextGen network upgrade. The amendment raises the not‑to‑exceed from $40,000,000 to roughly $74,400,000 to account for a roughly $44,000,000 SFO equipment purchase and other projected spending. The committee voted to forward the item.

Other notable items • Ordinance amending Administrative Code Chapter 10 (cash revolving funds) (Item 2): The committee forwarded an ordinance to clean up and adjust authorized cash revolving funds across several departments, including removals, limit reductions and authorizations for new funds; controller’s office staff explained limits are based on average balances.

• Ocean Beach contract (Item 3) and SFPUC pipeline work (Item 4) were emphasized for their multi‑agency coordination and regulatory drivers (Coastal Commission, state coastal law); SFPUC said the Ocean Beach work was envisioned in the 2012 Ocean Beach Master Plan.

• Department of Public Health items: a retroactive accept‑and‑expend for an in‑kind gift of roughly $283,700 for clinic food pharmacy programs (Item 8) and a three‑year amendment to Community Forward’s contracts that funds drop‑in, transitional housing and outpatient mental health services (Item 9). Both were recommended by the Budget Analyst and forwarded.

• Homekey Plus applications (Items 13 and 14): MOHCD and HSH will apply for Homekey Plus funds for two projects—835 Turk Street (about $18 million request) and 1035 Van Ness (application amended in committee to request $37.5 million)—to convert or operate permanent supportive housing targeted to veterans and people with behavioral health needs. Applications are due May 30.

• Balboa Reservoir infrastructure and affordable housing grants (Items 15–17): MOHCD presented three awards from the state (Affordable Housing and Sustainable Communities and Infill Infrastructure Grant funding) that together support Buildings E and A (two affordable buildings at Balboa Reservoir). The awards fund housing loans plus transportation and infrastructure grants; MOHCD expects construction starts in late 2025 and 2026.

Public comment and labor input Public commenters included a representative of SEIU Local 2015 urging livable wages for Homebridge caregivers and several speakers who described personal recovery experiences and support for HealthRight 360’s programs. DPH and supervisors noted ongoing labor negotiations with Homebridge and asked HSA to return with annual budget reporting to monitor provider performance.

What the committee did not do No item was adopted at the committee level; each was forwarded to the full Board of Supervisors for final action (most with a positive recommendation). Several items were amended on the floor (notably the Homebridge four‑year agreement funding release to $39.6 million for Year 1).

Ending note All forwarded items will be scheduled for full Board consideration; staff said items acted on by the committee are expected to appear on the Board of Supervisors agenda on May 6 unless otherwise noted. The Budget and Finance Committee adjourned to allow members to attend a Budget and Appropriation Committee meeting later the same day.