Government Audit and Oversight Committee Meeting - February 18, 2021
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Government Audit and Oversight Committee Meeting - February 18, 2021
The Government Audit and Oversight Committee met on Thursday, February 18, 2021, at approximately 10:00 AM via video conference due to the COVID-19 health emergency. The committee, chaired by Supervisor Dean Preston and including Vice Chair Connie Chan and Member Supervisor Rafael Mandelman, considered three agenda items: an ordinance codifying protections for residential hotel (SRO) occupants during the pandemic, an ordinance extending worker protections for grocery, drug, restaurant, and on-demand delivery employees, and a resolution urging the acquisition or long-term lease of shelter-in-place hotels for permanent supportive housing. The committee also convened in closed session to discuss six litigation settlement items.
Public Comments & Testimony
- Item 1 (SRO Protections): Raymond Mormino, Policy Director at Chinatown Community Development Center, expressed strong support for the legislation and thanked Supervisor Peskin’s staff and the Department of Public Health (DPH) for collaboration.
- Item 2 (Worker Protections): Over a dozen callers provided testimony, including Sean Smith (SF State student/Jobs with Justice SF), Daniel Menzies (Uber Eats driver), John Lee (former Lyft/Uber driver), Claudia Rabella Lee (former Lyft driver), Tyler (DoorDash driver), Martin Schweichert (Lyft/Uber driver), Sally Okawa (DoorDash/Postmates/Instacart worker), Eddie Hernandez (former Uber software engineer), Kirkas Yanos (Uber/Lyft driver), Barry (DoorDash driver), Lucas Chamberlain (Uber/Doordash/Instacart worker), Sofia Lima (McDonald’s/Carl’s Jr. worker), and Anita (McDonald’s worker, interpreted from Spanish). All urged the committee to pass the ordinance, citing lack of PPE, unpaid cleaning time, and fear of retaliation.
- Item 3 (Hotel Acquisition): Rebecca Kang (Tenderloin Housing Clinic) expressed strong support for the resolution, urging the city to expedite the vetting process for hotel purchases.
Discussion Items
Item 1: Ordinance Amending Administrative Code – Protections for Occupants of Residential Hotels During COVID-19
- Supervisor Peskin presented the ordinance, which would make permanent protections from prior emergency orders. He noted that as of February 18, there had been just over 1,000 COVID-19 cases among SRO residents, 246 hospitalizations, and 11 deaths—remarkably low given the density of SROs. He thanked DPH, SRO collaboratives, and the Department of Building Inspection for their efforts. Supervisor Peskin introduced non-substantive amendments (e.g., striking Section 2, adding a requirement to provide a list of city-approved cleaning services, changing zip code to census tract, adding “to the extent consistent with state and federal laws governing confidentiality of medical information” for outbreak notifications).
- Budget and Legislative Analyst (BLA) estimated that if the ordinance had been in effect June–November 2020, costs to the city would range from $3 million to $3.8 million, with 50% FEMA reimbursement; now that FEMA is reimbursing at 100%, costs would be reduced.
- Deb Bourne from DPH affirmed collaboration and noted that amendments clarified notification protocols while respecting HIPAA. She confirmed DPH can comply with the amended legislation, with the exception of ongoing tension around HIPAA and notification.
- Supervisor Mandelman expressed concern that past DPH non-compliance had been flagged in the BLA report but accepted that the amended version reflected a meeting of the minds. The committee voted unanimously to adopt the amendments and recommend the item to the full Board of Supervisors on March 2, 2021.
Item 2: Ordinance Amending Police Code – Grocery Store, Drug Store, Restaurant, and On-Demand Delivery Service Employee Protections
- Supervisor Haney presented the ordinance to replace the expiring emergency ordinance (due around March 10–12, 2021). It requires covered entities to provide PPE (face coverings, gloves, hand sanitizer, disinfectant), implement social distancing protocols, disinfect high-touch surfaces (with pay), allow schedule changes under paid sick leave, and prohibit retaliation. Substantive amendments were introduced: changing “employee” to “worker” and “employers” to “covered entity” (to include app-based workers post-Prop 22), adding a notice-to-workers section, and adjusting maximum penalties per the Office of Small Business.
- Greg from the Office of Labor Standards reported that initial outreach led to policy adjustments by on-demand delivery services, with two corrective actions (restitution) and no recent complaints.
- Deputy City Attorney Pearson confirmed the amendments were substantive, meaning the item could not be voted out that day. The committee voted unanimously to adopt the amendments and continued the item to the next GAO meeting on March 4, 2021.
Item 3: Resolution Urging Acquisition or Long-Term Lease of Shelter-in-Place Hotels
- Supervisor Safai introduced the resolution, emphasizing the historic opportunity to purchase hotels (using state/federal funds, Prop C, and FEMA reimbursement savings) for permanent supportive housing. He noted that the city already purchased two hotels (Granada and Diva, 344 units) via Project HomeKey. The resolution was amended to clarify that it covers any suitable hotel, not just SIP hotels, and to add “federal” to funding sources.
- Presentations:
- Jenny Friedenbach (Coalition on Homelessness, Our City Our Home Oversight Committee member) highlighted the confluence of opportunities: 100% FEMA reimbursement (~$83 million), 70 hotel owners willing to sell, and Proposition C funds now available after legal ruling. She estimated hotel acquisition costs at ~$300,000 per room (including rehab), compared to ~$650,000 for new construction. Over 50 organizations signed a letter supporting acquisition.
- Emily Cohen (HSH) reviewed the mayor’s Homeless Recovery Plan goal of 1,500 new PSH units, noting that the Diva and Granada count toward that total. She outlined the Request for Information (RFI) process that yielded 65 responses, currently being vetted. Key acquisition criteria include building size, vacancy, amenities, accessibility, and building code compliance. She noted that the next round of state HomeKey funds ($700 million statewide) may be imminent, with $250 million potentially available in the current fiscal year.
- Andriko Penick (Real Estate Division) reported that the real estate market is in flux; some hotel owners are more willing to sell due to the downturn, but the city must be strategic. He stressed the need for confidentiality in negotiations to avoid speculation.
- Eric Shaw (MOHCD) explained MOHCD’s role in underwriting, construction oversight, and ensuring nonprofit ownership with 55-year affordability restrictions. He noted capacity challenges but highlighted nonprofit partnership.
- Controller Ben Rosenfield stated that FEMA reimbursement could yield ~$80 million in general fund savings and ~$20 million in other revenues, but not all are fungible for acquisition. He noted that ~$189 million in Prop C funds are unallocated in the current year, with ~$170 million anticipated next year—available for acquisition if prioritized.
- Supervisor Mandelman raised concerns about capacity and whether the city is on track for the 1,500-unit goal. Director Penick said the real estate division is taxed but delivering on current assignments. Supervisor Preston inquired about the exemption from transfer taxes (up to 6% for properties over $25 million) for sales to the city or nonprofits, which could incentivize sellers.
- Supervisor Safai emphasized that additional resources may be needed for the “strike team” to move quickly. The committee voted unanimously to adopt amendments and recommend the resolution to the full Board of Supervisors.
Key Outcomes
- Item 1 (SRO Protections): Unanimously (3-0) voted to adopt amendments and recommend the amended ordinance to the Board of Supervisors (March 2, 2021).
- Item 2 (Worker Protections): Unanimously (3-0) voted to adopt substantive amendments and continued the item to the March 4, 2021 GAO meeting.
- Item 3 (Hotel Acquisition): Unanimously (3-0) voted to adopt non-substantive amendments and recommend the amended resolution to the Board of Supervisors.
- Closed Session (Litigation Items): The committee convened in closed session to discuss six settlements (totaling $2,500,000 for Maurice Caldwell, $240,000 for A2Z Development, $85,000 for Benito Taylor, $65,000 for Gayle L. Brownlee, $54,167.32 for SEIU grievance, and up to $190,000,000 for PG&E). After closed session, the committee voted unanimously not to disclose the discussions.
All actions taken will appear on the Board of Supervisors’ agenda of March 2, 2021 (unless otherwise noted).
Meeting Transcript
Good morning. This meeting will come to order. Welcome to the Thursday, February 18th meeting of the Government Audit and Oversight Committee. I am Supervisor Dean Preston, the chair of this committee, and I am joined by Vice Chair Connie Chan and Committee Member Supervisor Raphael Mandelman. Thank you to our clerk, John Carroll, and also would like to thank SFGov TV for staffing this meeting. Mr. Clark, any do we have any announcements? Yes, we have. Thank you, Mr. Chair. In order to protect the public, board members and city employees during the COVID-19 health emergency, the Board of Supervisors, Legislative Chamber and Committee Room are closed. This precaution is taken pursuant to all various local, state, and federal orders, declarations, and directives. Committee members will attend the meeting through video conference and participate in this meeting to the same extent as if they're physically present in their committee room. Public comment will be available for each item on this agenda. Both San Francisco Cable Channel 26 and SFgovTV.org are streaming a public comment call-in number across the screen. Your opportunity to speak and provide comments during the public comment periods on today's agenda are available to you via phone by calling 415-65501. Once connected and prompted, enter the meeting ID of 1871 five nine four six seven four. Following that, press pound twice to be connected to the meeting. When you're connected, you will hear the meeting discussions, but your line will be muted and in listening mode only. When your item of interest comes up, dial star followed by three to be added to the speaker line. The system prompt will then indicate that you have raised your hand. Please wait until the system indicates that you have been unmuted, and that is your opportunity then to begin your comments. Best practices are to call from a quiet location, to speak clearly and slowly, and to turn down your television, your radio, or your streaming device. Everyone must account for potential time delays and speaking discrepancies we may encounter between the live coverage and streaming. Alternatively, you may submit your public comment in either of the following ways. You may email me. My name is John Carroll, and I'm the clerk of the government audit oversight committee. My email address is J-O-H-N, period C A R R O L L at SFGO V dot O R G. If you submit your public comment via email, I will include it as part of the legislative file on which you are commenting. Your written comments may also be sent to our office by U.S. Postal Service. And our office is the clerk's office, which is in room 244. City Hall's address is one Dr. Carlton B. Goodlit Place, San Francisco, California, 94102. And finally, Mr. Chair, items acted upon today will appear on the Board of Supervisors' agenda of March 2nd, 2021, unless otherwise stated. Thank you, Mr. Clark. Please call the first item. Agenda number one is an ordinance amending the administrative code to establish protections for occupants of residential hotels during the COVID-19 pandemic by, among other things, making it city policy to place in solitary hotel rooms. And requiring the Department of Public Health to post a notice in the common area and notify the operator of a residential hotel when an SRO resident has tested positive for COVID-19 to facilitate contact tracing, testing for COVID-19 and cleaning. Establish a telephone hotline for SRO residents to respond to questions about accessing COVID-19 health screenings, testing in solitary hotel rooms, provide vase coverings to SRO residents and workers in residential hotels, and provide daily aggregate data concerning the incidence of COVID-19 among SRO residents, access to quarantine rooms by such residents and the number of such residents who have died due to complications from COVID-19. Members of the public who wish to provide public comment on this ordinance should call the public comment number, which I'll repeat now. 415-655-0001. Enter today's meeting ID of 187-159-4674. Press the pound symbol twice to connect to the meeting, and then press star followed by three to be entered into the queue to speak. Mr. Chair. Thank you, Mr.
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