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Health Department seeks temporary contract ratification and a sole-source rule change
Summary
The committee reviewed a short-term resolution to ratify and extend health-department contracts and an ordinance to permit sole-source designation for nonprofit providers; members discussed a differing city-attorney interpretation of City Charter §9.118 and urged the short-term fix so nonprofits can invoice.
The San Francisco Department of Public Health asked the Budget and Finance Committee to approve two related items: a short-term resolution ratifying a set of existing professional services contracts so renewals can proceed this year, and an amendment to the Administrative Code to permit sole-source designation for nonprofit contractors.
Greg Sass, chief financial officer for the Health Department, said the department has about 300 contracted providers and roughly $300 million a year in contracting for behavioral-health services. The department’s long-standing practice was to rely on Health Commission review and city-attorney and contract-administration signoffs rather than bringing every renewal exceeding $10,000,000 or 10 years to the full Board. The city attorney has a differing opinion on that practice. To avoid a disruption in nonprofit services, the department asked for a one-time resolution approving a listed set of contracts for renewal and a plain-language code amendment to clarify sole-source renewals for nonprofit partners.
Debbie Lerman of the San Francisco Human Services Network urged the Board to pass the short-term resolution immediately, warning that 25 nonprofit contractors risk delayed certification and inability to invoice for services.
The committee moved the ordinance amending the Administrative Code (item 8) forward as a committee report. The short-term resolution (item 7) was not forwarded at that moment for separate reasons noted in the committee exchange and was left in committee for further clarification before full-board action.
Next steps: the committee recommended the Administrative Code amendment proceed to the full Board as a committee report; the short-term contract ratification was held pending further clarification of the affected contract list and legal interpretations.
