Budget and Finance Committee - 2026-03-25
Meeting Intelligence Preview
Meeting Summary
The Budget and Finance Committee approved all items on the agenda, including contract modifications for SFO airport services ($10.4M increase), a property assessment system maintenance contract ($6.7M increase), and retroactive approval of the $18M CalFresh emergency gift card initiative that served 65,000 recipients during the federal SNAP funding lapse. The committee also approved health access point contracts totaling approximately $31.7M and authorized $29.3M in gap financing plus $112.7M in housing revenue bonds for Building A at Balboa Reservoir, a 158-unit affordable housing development.
Key Decisions (8)
SFO Airport Information Services Contract Modification
Approved modification #3 to contract with Hallmark Aviation Services LP for airport information and guest assistance services, extending term one year through 06/30/2027 and increasing amount by $10.4M for new total not to exceed $30.4M. Contract includes LBE subcontractor Polaris for information desk operations.
Assessor Property Assessment System Maintenance Contract
Approved amendment #2 to contract with Sapient Corporation for SMART property assessment system maintenance, extending term approximately 4.5 years through 06/30/2032 and increasing amount by $6.7M for new total of $33.9M. Project experienced 4-year delay with vendor absorbing $15.3M of $16.6M in cost overruns.
CalFresh Stopgap Emergency Gift Card Initiative Contract
Retroactively approved contract with San Francisco Marin Food Bank for CalFresh emergency gift card program, term 10/30/2025-12/31/2025, not to exceed $9.1M. Program distributed $18M total ($9M city funds, $9M Crankstart Foundation) to 65,000+ CalFresh recipients during federal SNAP funding lapse. 80% of eligible households activated cards; 92% of funds spent.
San Francisco AIDS Foundation Health Access Point Contract
Approved amendment #2 to DPH contract with San Francisco AIDS Foundation for MSM health access point services and capacity building, extending term through 06/30/2030 and increasing amount by $11.9M for new total of $21,889,643 (amended from original $23.8M). Services include HIV/HCV/STI testing, primary care, mental health, and overdose prevention at STRUT clinic in Castro/SoMa.
Rafiki Coalition Health Access Point Contract
Approved amendment #2 to DPH contract with Rafiki Coalition for Health and Wellness for Black/African American health access point services, extending term through 06/30/2030 and increasing amount by $10.6M for new total of approximately $20M. Services at 500 3rd Street in Bayview Hunters Point plus mobile testing in Sunnydale, Fillmore, and Potrero Hill.
Instituto Familiar de la Raza Health Access Point Contract
Approved amendment #2 to DPH contract with Instituto Familiar de la Raza for Latinx health access point services, extending term through 06/30/2030 and increasing amount by $9.2M for new total of approximately $17M. Services in Mission District with subcontractor partnerships for outreach to Latino residents citywide.
Balboa Reservoir Building A Ground Lease and Gap Loan
Approved ground lease (75-year term plus 24-year option, $15,000 annual base rent) and amended loan agreement up to $29,280,757 for Building A at 105 Wisteria Lane (Balboa Reservoir) with Balboa Gateway LP (Bridge Housing affiliate). Project provides 158 affordable units for households at 40-80% AMI.
Balboa Reservoir Building A Housing Revenue Bonds
Authorized execution of multifamily housing revenue note up to $112,700,000 for Balboa Gateway LP for Building A at Balboa Reservoir, including funding loan agreement and project loan agreement with regulatory agreement and declaration of restrictive covenants.
Development Activity (4)
Balboa Reservoir Building A
158 affordable units plus 1 manager's unit: 13 studios, 65 one-bedrooms, 42 two-bedrooms, 4 three-bedrooms. Serves households at 40-80% AMI. Total development cost includes $29.3M city gap loan, $33M state ASIC loan, $12.7M state transportation grant, and $108M+ in tax credit equity and private financing.
Balboa Reservoir Phase 1 Infrastructure
5.7 acres of infrastructure work including utilities, public right of ways, streets, sidewalks, sewer systems, and transportation improvements. Grading and site preparation for Buildings A and E.
Balboa Reservoir Building E
100% affordable building, first of two affordable buildings at Balboa Reservoir
Rafiki Coalition Health Access Point Facility
Building purchased with capacity building support from San Francisco AIDS Foundation; currently under construction for primary health access point services
Market Signals (4)
Housing Demand
Balboa Reservoir project demonstrates continued city investment in affordable housing on West Side despite market rate development being on pause, with city contributing $36M more than required under development agreement.
Infrastructure
SFO Terminal 3 West modernization project driving increased staffing needs for guest navigation and wayfinding services.
Sentiment
City demonstrated rapid emergency response capability by designing and launching $18M CalFresh gift card program in less than one week, with 80% household activation rate.
Commercial Demand
SFO anticipating increases in passenger traffic, with staff assisting 2.7 million guests at 16 information desks in 2025.