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Committee OKs grants and contracts including $84.3M COVID testing amendment and $62.5M refuse contract
Summary
The Budget & Finance Committee on Nov. 18, 2020 voted to forward a package of grant acceptances and contract amendments — including a $74.4M increase to Color Genomics testing services (total $84.3M), a $62.5M six-year refuse contract with Recology, and revised Homekey funding for the Granada Hotel — all with positive recommendations.
SAN FRANCISCO — The Budget & Finance Committee moved a group of funding and contract items to the full Board on Nov. 18 with unanimous committee recommendations.
Key items at a glance:
- COVID-19 testing amendment (Item 2): The committee advanced Amendment No. 3 to the emergency agreement with Color Genomics Inc., increasing the amendment by $74,400,000 for a total not to exceed $84,300,000 and setting the term through April 5, 2021. The Controller’s Office said its RFP evaluation concluded with a notice of intent to award to Color Genomics; DPH will handle contract negotiation and return the final contract to the Board for approval.
- Recology refuse contract (Item 6): OCA presented a sole-source citywide refuse collection agreement for six years with Recology, not to exceed $62,500,000. The new rate structure removes a monthly service fee cap and adds a composting credit to incentivize diversion; BLA estimated roughly $6 million in savings over the term if departments increase recycling/diversion.
- Homekey / Granada Hotel (Item 10): HSH sought approval to revise the city’s Homekey grant authorization for the Granada Hotel acquisition, increasing the Homekey grant request to $49,000,000 to cover higher-than-anticipated rehab costs. HSH reported estimated total project costs have risen to about $89,000,000; the city’s share remains projected around $47,000,000 pending final vetting and a Citywide Loan Committee review.
- Great Plates Delivered (Item 11): HSA requested a contract amendment with Off the Grid Services to extend the term for the Great Plates Delivered meal program and to increase the not-to-exceed amount by $26,700,000 (new total $36,100,000) to continue meals through May 2021; BLA recommended a reduced not-to-exceed figure in its analysis and the sponsor concurred.
- AT&T amendment (Item 8): The Department of Technology sought the fifth amendment to the AT&T master agreement to extend the term through Dec. 31, 2021 and increase the amount by $18,300,000 to align with state contracting and cover average departmental use plus contingency.
Other items passed or recommended included modest museum and grant acceptances (SFO Museum gift, Coronavirus Hospital Preparedness supplemental funds), outreach advertising contracts, and a retroactive acceptance of consulting services to support city departments valued at $427,000.
Votes and next steps: Each item was referred to the full Board with a positive recommendation (roll-call votes recorded: Supervisors Walton, Mandelmann and Chair Feuer voting aye). Several items will return to the Board with finalized contract documents or supplemental approvals (for example, Color Genomics contract negotiations and the Granada Hotel loan commitment). BLA reviews accompanied many items; where BLA recommended modifications, sponsors either incorporated them or noted follow-up actions.
Quote: Joyce Kimotsuki of the Controller’s contracts team said of the COVID testing RFP, “The Comptroller’s Office has concluded the RFP process” and noted DPH will manage contract negotiations going forward.
What reporters should watch: The Color Genomics negotiation outcome when the contract returns to the Board; revised, detailed Homekey cost estimates and final loan commitments for the Granada Hotel; and departmental implementation plans for the Recology contract’s composting incentives and invoice impacts.
