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Committee forwards SFO clinic funding increase and DEA lease extension to full Board
Summary
The committee recommended forwarding two airport items: a $1.7 million modification to the SFO medical clinic contract (Dignity Health / Saint Mary's) to raise the not-to-exceed to $12.7 million through June 30, 2024, and a two-year extension to the DEA lease in Terminal 3 that raises annual rent to about $620,611; BLA recommended approval and staff said UCSF would assume contract obligations if an acquisition closes.
The Budget and Finance Committee on Oct. 11 voted to forward to the full Board two airport-related items presented by Kathy Weidner on behalf of the San Francisco Airport.
Weidner said Modification No. 4 to the airport’s agreement with Dignity Health (doing business as Saint Mary's SFO Medical Clinic) would add $1,700,000 to the clinic’s agreement to fund operating costs through June 30, 2024, increasing the contract's not-to-exceed amount to $12.7 million. The airport reimburses Dignity Health for net operating costs (operating costs minus patient revenues). The Budget and Legislative Analyst reviewed the modification and recommended approval.
Weidner also described a two-year extension to the lease with the United States of America for space used by the Drug Enforcement Administration in Terminal 3, increasing annual rent from about $569,635 to roughly $620,611; the airport expects to receive roughly $1.24 million in rent during the extension term. David Pilpel offered public comment thanking clinic founders and suggesting the DEA lease amendment include a retroactivity note; Weidner said that if UCSF completes its acquisition of Dignity Health sites, UCSF would assume obligations under the clinic agreement.
Both items were forwarded to the full Board with a positive recommendation (2 ayes).
