Commission approves consent calendar; public and commissioners raise concerns about low cost-of-doing-business adjustments to contracts

The Homelessness Oversight Commission approved items on its consent calendar Wednesday in a single roll-call vote while members of the public and commissioners pressed the department for more financial transparency.

Former Commissioner Kristin Evans and commissioners noted that 'cost of doing business' increases applied to some contracts were only 1 percent, a level they said does not keep pace with inflation, wage growth and operating costs for frontline providers. Evans urged the commission and department to provide effective cost-increase rates and frontline wage projections for shelters and drop-in centers.

Gigi Whitley, HSH's chief of administration and finance, said the department follows controller guidance on cost recovery but is moving toward multi-year procurements that build full-cost recovery into new contract rates. Whitley acknowledged the department has struggled historically to reallocate underspent funds within the fiscal year due to invoicing delays and staffing limitations; the department is increasing procurement and budget staff capacity to address underspending and plans to reallocate in the next budget cycle where feasible.

Commissioners asked for clearer contract documentation that shows salary lines and the basis for cost-of-doing-business adjustments. They also discussed subcontracting as a tool to let larger providers partner with smaller community organizations and suggested capacity-building supports for smaller agencies that want to prime for city contracts.

The consent calendar was approved by unanimous roll call without items removed for separate discussion.