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Committee pauses vote on $6 million T1 Partners contract increase for SFO Terminal 1, requests more revenue analysis

San Francisco Board of Supervisors Budget and Finance Committee · May 6, 2020
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Summary

The committee heard a presentation on a proposed $6 million increase to a program‑management contract for SFO’s Harvey Milk Terminal 1 but voted to continue the item so staff can provide additional information on airport revenue shortfalls and longer-term capital plan impacts.

Kathy Weidner of the San Francisco International Airport summarized a proposed modification that would add $6,000,000 to the T1 Partners contract, increasing the not‑to‑exceed amount from $32,000,000 to $38,000,000 and extending the term through July 7, 2023 to cover final one‑year extension options for program management of the Harvey Milk Terminal 1 redevelopment.

The Budget Legislative Analyst noted the amendment is within the scope of the ongoing program, that funding would come from revenue bonds, CARES Act funds and passenger facility fees, and recommended approval given the contractor’s continued performance. Supervisors expressed concern about declining airport revenue; Chair Sandra Lee Fewer said the airport slump could extend beyond 18 months and asked for more information on how the airport will meet projected shortfalls.

With no public callers, the committee voted to continue the item to the next Budget & Finance Committee meeting so staff can provide updated capital‑plan and revenue‑shortfall analyses before a final recommendation. The continuation passed on roll call with affirmative votes from Supervisors Walton, Mandelmann and Chair Fewer.