Budget committee refers retroactive $1.5 million OEWD amendment for community recovery hubs to full Board without recommendation

The Budget and Finance Committee on June 3 referred to the full Board, without recommendation, a resolution that would retroactively increase a grant agreement between the Office of Economic and Workforce Development (OEWD) and Bay Area Community Resources (BACR) by $1,500,000, bringing the contract to about $16.8 million and covering services through June 30, 2026. The motion passed on a 3–0 roll call: Dorsey, aye; Sauter, aye; Chan, aye.

The measure funds management of three Community Economic Recovery Hubs in the Excelsior, Mission and Visitation Valley neighborhoods that provide intake, job placement assistance, training, benefits navigation and basic needs supports. “This grant agreement will increase the contract amount by $1,500,000 for the period of 07/01/2022 through 06/30/2026,” OEWD workforce staffer Ren Floyd Rodriguez said during the department’s presentation.

The Budget and Legislative Analyst (BLA) raised oversight concerns. “I will say I had grave concerns about OEWD’s management and control over the money in this agreement,” BLA analyst Nick Menard told the committee, noting that a roughly $3,000 supportive-services line for gift cards exists in the budget and that participant counts for FY 24–25 matched the contract goal of 7,150—“a number that almost never happens,” Menard said—because the nonprofit reportedly stopped entering participants after reaching the goal. Menard recommended a sample review of participant data, stronger invoice validation and commitment from OEWD to establish line-item budgets before money is distributed.

OEWD and the provider responded that monitoring and financial controls are being strengthened. OEWD staff said the department has provided intake-tracking sheets, year-end demographics and year-to-date actuals, and that the contract will be included in program monitoring this fiscal year. OEWD’s Krissy Atana asked the committee to retain a modest supportive-services allocation, saying about $3,200 is budgeted for gift cards used for interview attire or transportation and that the department has a draft invoice-review policy to validate those expenditures.

A representative from Mission Language and Vocational School, Ruth Barajas, described a transition in oversight from BACR to new contractors and said the hubs remain trusted entry points for immigrants and other vulnerable residents. “We have witnessed some significant impact,” Barajas said, describing food, housing and employment assistance offered through the sites.

Supervisors pressed OEWD on when the services would continue and how post‑June 30 arrangements will work. OEWD said the services would be reprocured through new job-center contracts beginning July 1, with many of the same community providers, and that contracts could be executed within three to five business days after mayoral signature following a full-Board approval.

OEWD clarified the retroactive nature of the amendment: invoices for an existing encumbered $500,000 have been received and processed, but invoices tied to the additional $1.5 million could not be submitted until the contract amendment is executed. OEWD said the department has shared provider expense information for the additional amount but the formal contract change is required before invoices for that sum can be processed.

Supervisor Dennis Sauter moved to send the measure to the full Board without recommendation, saying the item warranted signaling concerns to colleagues. Vice Chair Supervisor Matt Dorsey supported the motion and noted the committee’s practice of briefing the Board when sending items out without a recommendation. Chair Supervisor Connie Chan joined the aye vote; the motion passed.

Next steps: the resolution will go to the full Board for consideration on June 9. OEWD and BLA staff said they will continue program monitoring and data validation work and that the department will adopt stronger line-item budgeting and invoice review practices for grants going forward.