Committee advances $4 million amendment for Mid‑Market/Tenderloin community safety program; members cite reporting and governance concerns

The Budget & Finance Committee voted to send to the full Board a resolution approving Amendment No. 6 to the grant between the Office of Economic and Workforce Development (OEWD) and the Mid‑Market Foundation, adding $4,000,000 to the grant (bringing total grant authority to about $68,851,756) to maintain ambassador staffing levels in the Mid‑Market and Tenderloin through June 30, 2025. The committee forwarded the item to the full Board without recommendation because of concerns about contract monitoring and nonprofit governance.

What the amendment covers OEWD Deputy Director Chris Gorges and Sam Dodge of the Department of Emergency Management (DEM) described the amendment as necessary to maintain current ambassador staffing and operations for public‑facing street response work in the Tenderloin and Mid‑Market. OEWD said the funding largely comes from the general fund and other identified sources (the presentation identified an opioid settlement portion). The amendment is meant to sustain operations for the remainder of the grant term (through 06/30/2025).

Operations and performance data Sam Dodge presented interim operational data showing decreases in 911 calls in several pilot locations after ambassador deployments: a 35% reduction on the 600 block of Ellis (between Larkin and Hyde), a 49% reduction on Willow, and similar reductions on the 500 block of Stevenson, according to DEM’s briefing to the committee. Dodge said the program has shown reductions in overdose reversals and overdose deaths in the areas served, though he cautioned work is ongoing and indicators such as discarded needles and trash remain high.

Oversight, reporting and governance concerns The Budget and Legislative Analyst (BLA) and several supervisors raised concerns about the Mid‑Market Foundation’s financial management, reporting delays and governance. The BLA told the committee that the grantee has not met a number of the city's nonprofit financial and governance standards, has been late in delivering monthly activity reports required for payment, and that the City has advanced funds to Urban Alchemy (a subcontractor) to maintain payroll because Mid‑Market Foundation had not submitted required reports.

Supervisor comments and motion to forward without recommendation Supervisor Connie Chan questioned the foundation’s governance and the structural risk of having service providers serve on a board that manages subgrantees, calling it an unresolved conflict of interest. Chan said the city must weigh competing priorities given constrained budgets and suggested the full Board and the incoming administration consider restructuring how these services are contracted and measured. Vice Chair Matt Dorsey, a co‑sponsor of the amendment, said he supported the funding to avoid program interruption and emphasized the need for better outcome metrics.

Committee action and next steps Given the operational data showing reductions in 911 calls and the reporting/governance concerns flagged by the BLA, the committee voted to forward the amendment to the full Board without recommendation to allow the full Board and incoming administration further discussion. The committee recorded a roll call with Dorsey, Engadio and Chair Chan voting aye.

What to watch Full Board debate is expected to focus on (1) whether to fund the program through June 2025, (2) short‑term remedies to strengthen contract monitoring and financial transparency for Mid‑Market Foundation and its subcontractors, and (3) whether the city should restructure service delivery (direct contracting with providers vs. using an intermediary). The mayor’s office and incoming administration will also be involved in longer‑term decisions about program structure, metrics and funding.