Commission questions Candlestick safe‑parking model and Mission‑cabin costs as contracts are renewed

The Homelessness Oversight Commission approved short, time-limited renewals for two Candlestick safe‑parking contracts but raised concerns about costs and outcomes on May 2. Commissioners pressed staff to evaluate whether the sites are functioning as short-term emergency shelters or de-facto longer-term housing.

Commissioner Kristen Evans reviewed data from the Candlestick vehicle‑dwelling pilot and noted 122 clients served to date with 86 exits; HSH staff confirmed roughly 36 people remained on the site at the time of the meeting. Evans calculated that, given an annualized total program cost (including lease, showers and operations) of about $4.5 million, the per-person annualized cost for the remaining population could be on the order of $125,000 — a figure she flagged as materially higher than other temporary and permanent options the commission is evaluating.

HSH staff said the Mission cabins’ capital cost was about $6.79 million and annual operating costs roughly $2.7 million for 60 cabins (68 beds), which HSH framed as consistent with other adult shelter operations once one includes utilities, site prep, sewer/water, design and permitting. City finance staff explained DPW conducted the procurement for construction and that funding came from a mix of Board‑approved sources, not one specific ballot measure.

Commissioners asked for clarification about the expected useful life of the cabins and whether components could be repurposed to reduce life-cycle costs; the department estimated a two‑to‑three year useful site life for the current lease footprint but noted reuse is possible on the margin and that additional costs (storage, safety upgrades) can make relocation expensive.

Members also questioned high line items in Candlestick operating budgets — including a roughly $130,000 line for Wi‑Fi and camera infrastructure used primarily by staff — and whether surveillance-heavy models were appropriate for residents who may prefer lower-threshold parking-only options. HSH said it plans to return to the commission in early fall with a short-term extension for the Urban Alchemy operations aligned to the lease term through January 2026 and with additional documentation on costs and outcomes.

The commission approved the contract renewals on a short-term basis to preserve services while directing HSH to provide more complete outcome measures and cost breakdowns ahead of future extension decisions.