Budget committee amends Mid‑Market and downtown ambassador contracts and continues item to March 15

On March 8 the San Francisco Board of Supervisors’ Budget and Appropriations Committee voted to amend two Office of Economic and Workforce Development (OEWD) grant agreements that fund community ambassador programs, and continued the substantive amendments to the committee’s March 15 meeting for final action.

The committee approved motions to add contract authority of $10,000,000 to the Mid Market Foundation grant and $3,000,000 to the San Francisco Tourism Improvement District (downtown welcome ambassador) grant and to extend both contracts through Dec. 31, 2023. The actions were adopted on a 5–0 roll call (Vice Chair Rafael Mandelmann, Supervisor Asar Safaie, Supervisor Hillary Ronan, Supervisor Shamon Walton and Chair Connie Chan voting aye). Deputy City Attorney Anne Pearson advised the panel that the proposed additions are substantive; as a result the items will be continued to March 15 for further consideration.

Why the committee acted

OEWD said the immediate increases originally before the committee were $3.1 million for the Mid Market/Tenderloin program and $3.3 million for the downtown Welcome Ambassadors for the current fiscal year (to cover deliverables through June 30, 2023). OEWD also requested added contract authority — the $10 million and $3 million amounts voted on — so that, once the mayor’s FY23–24 budget is confirmed, the department can amend contracts and continue programming without interruption. OEWD staff and the Department of Emergency Management emphasized the risk of service gaps and potential layoffs without prompt contract authority; OEWD cited an estimate that about 87 positions would be affected if coverage was cut back in April.

Program details and funding

OEWD said the Mid Market/Tenderloin program covers roughly 80 block faces and about 100 ambassador posts, with ambassadors operating seven days a week, roughly 7 a.m.–7 p.m. Mid Market Foundation is the lead grantee coordinating a coalition, with Urban Alchemy providing most direct services on the ground. OEWD told the committee the proposed $3.1 million increase would be funded primarily from OEWD budget savings (about $2.6 million) and a $500,000 work order from the Department of Public Health. The BLA’s report, summarized for the committee, places the Mid Market grant’s not‑to‑exceed at approximately $23,590,570 after the $3.1 million increase. For the downtown Welcome Ambassadors, the BLA reported the grant would increase from $9,927,000 to about $13,227,000 to cover deliverables through June 2023; OEWD said that increase uses current‑year grant funding and carryforwards.

Debate and concerns

Supervisors voiced broad support for the programs’ effects on safety, business referrals and job creation, while several members pressed the mayor’s office and OEWD for clearer timing, documentation and long‑term planning. Supervisor Asar Safaie described the proposals as “convoluted” and criticized repeated short‑term extensions, saying repeated returns to the committee make planning difficult for nonprofits. Vice Chair Rafael Mandelmann and Supervisor Hillary Ronan expressed willingness to grant short‑term authority to avoid service interruptions but asked OEWD, DEM and the mayor’s budget office to coordinate a single, longer‑term plan so the committee won’t have to act in short bursts.

City officials’ explanations

Catherine Daniel, OEWD’s director of economic recovery initiatives, said the funding requested for the current fiscal year was already approved in OEWD’s two‑year budget and that the additional contract authority is intended to bridge timing differences between contract expiration dates and the city’s budget calendar. Sam Dodge of the Department of Emergency Management said DEM will convene agency partners and produce an operational and deployment plan for ambassador programs citywide. Anna Dunning, the mayor’s budget director, reiterated that the budget timeline (the mayor’s proposal on June 1 and the board’s later deliberations) does not align neatly with current contract end dates, and that contract authority is a procedural measure to prevent gaps while the FY23–24 budget is adopted.

Public comment

A majority of public commentators — including small business groups, neighborhood representatives, the Golden Gate Restaurant Association, the Civic Center Community Benefit District and Union Square Alliance — supported continuing the ambassador programs, citing safer streets, increased foot traffic and economic benefits. Several individual ambassadors and residents also offered positive testimony. A smaller number of callers raised transparency and accountability concerns about Urban Alchemy (including allegations of street harassment and requests for clearer complaint processes); those complaints were received and noted by the committee.

Next steps

Because the committee amended the items in a substantive way, the deputy city attorney confirmed the matters must be continued; the committee continued the amended resolutions to its March 15 meeting. Final appropriation and any contract amendments still require budget approval and any further committee or Board of Supervisors action as appropriate.

Quoted in the meeting

Dr. Elena Miller, Urban Alchemy CEO and cofounder, on staffing and mission: “We prioritize hiring former long‑term offenders… We are putting San Franciscans to work and giving them hope and dignity and purpose.”

Supervisor Asar Safaie, on procedure: “This is probably one of the most convoluted proposals that I’ve seen brought to this committee.”

Dan Goncher, Budget and Legislative Analyst, on the Mid Market amendment: “Item 1 would increase the not to exceed amount from $20,490,000 to $23,590,570 — an increase of about $3,100,000.”

Ending

The committee’s March 15 session will revisit the substantive amendments and any additional materials OEWD, DEM and DPH provide, including documentation requested by the BLA and a more coordinated deployment plan for ambassador programs. The committee’s March 8 action gives OEWD contract authority to avoid immediate disruptions pending that follow‑up.