Government Audit and Oversight Committee Meeting - June 3, 2021
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Government Audit and Oversight Committee Meeting
The Government Audit and Oversight Committee of the San Francisco Board of Supervisors met on June 3, 2021, to consider 19 agenda items, including ordinances to establish a public bank working group, leases for a drug sobering center and shelter-in-place hotels, contracts for security, airport maintenance, affordable housing financing, pretrial services, and central subway artwork extensions. The committee voted on all items, forwarding most to the full Board with positive recommendation.
Public Comments & Testimony
- Item 1 (Public Bank): Multiple callers expressed support, including representatives from community organizations, labor unions, and residents, emphasizing the need for a public bank to finance affordable housing, small businesses, and community needs in the wake of the pandemic.
- Items 5-6 (SIP Hotels): No public comments.
- Items 9-12 (Balboa Park Housing): Callers included BART (support), a resident (support, urging trust in experts), and a community organizer (criticism of lack of transparency in AMI changes and process).
- Item 13 (Pretrial Services): Callers included a labor union opposing the contract (urging to wait for validation study), a member of Taxpayers for Public Safety (supporting continued investment), the Bar Association (supporting renewal), and a provider (highlighting program success).
Discussion Items
Item 1 – Admin Code: San Francisco Reinvestment Working Group (Ordinance)
Chair Preston introduced the ordinance to create a working group to develop business and governance plans for a municipal finance corporation (MFC) and a public bank. BLA analyst Fred Burseau presented models using the city’s investment pool (10% or ~$1 billion) and general fund appropriations to capitalize an MFC, projecting a $2 billion asset base by year 10. Sushil Jacob (Lawyers Committee for Civil Rights) noted the two-step approach (non-depository MFC then depository bank) and highlighted North Dakota’s public bank success in PPP loan distribution. The Treasurer’s Office representative expressed concerns about the legality of using the investment pool. The committee adopted three amendments (shifting nomination to Board President, moving administrative support from LAFCO to clerk, and shifting consultant retention to clerk).
Item 2 – Lease at 1076 Howard Street for Drug Sobering Center
DPH and Real Estate presented a lease for the Soma Rise Center, a trauma-informed sobering site for individuals under the influence of drugs. The lease is for 8.5 years with one 5-year option; base rent $854,235/year with 3% annual increases; city contribution of up to $1,888,990 in tenant improvements. The building is completely renovated. The committee approved and referred to full Board as a committee report.
Items 3 – MediCal County Inmate Program (Resolution)
DPH retroactively authorized two agreements with the state for reimbursement of inmate medical services (participation and administrative services agreements, the latter not to exceed $21,504.33). The program allows billing for eligible services, with annual revenues estimated at $2 million. The committee recommended approval.
Item 4 – HSA Security Services Contract Amendment
HSA requested a two-year extension of the contract with Allied Universal for unarmed security at 15 HSA sites, increasing the amount to $23,393,091. The BLA recommended reducing the amount to $21,985,735 due to calculation adjustments. Chair Preston noted the training requirements (cultural diversity and unconscious bias). The committee approved the amendment and recommended the resolution.
Items 5-6 – Shelter-in-Place Hotel Services and Lease (Two Resolutions)
HSH and HSA presented amendments to extend services (Five Keys) and the hotel lease (1231 Market/Hotel Whitcomb) through March 2022, with total amounts of $20,209,909 and $54,800,664 respectively. The program has served over 3,600 guests, with 2,200 currently in 1,973 rooms. Average cost per night is $261, with 94% FEMA reimbursement expected through September. Supervisor Chan asked about staffing and services; HSH noted persistent engagement and coordination with housing placement. The committee approved BLA-recommended amendments and forwarded both items.
Items 7-8 – Airport Maintenance Contracts (Two Resolutions)
The airport presented modifications for escalator/electric walk maintenance (KONE Inc.) and elevator maintenance (TK Elevator Corporation), extending terms by three years and increasing amounts to $34,465,600 and $22,282,912 respectively. Both contracts showed savings from reduced per-unit maintenance prices ($776,000 and $773,000 annually). The committee recommended approval.
Items 9-12 – Balboa Park Upper Yard Affordable Housing Project (Four Resolutions)
MOHCD presented financing and land documents for a 131-unit 100% affordable project at 2340 San Jose Avenue. Total development cost $119 million ($911,000/unit). MOHCD gap loan $24.4 million; state grants via IIG ($3.5M) and AHSC ($25.3M). Affordability ranges from 30% to 109% of AMI (income averaging). Supervisor Safai’s office supported the project. Community groups (CCHO, PODER, etc.) expressed concerns about lack of communication and AMI levels not serving the lowest-income households. Supervisor Chan and Chair Preston discussed the need for better community engagement and transparency. MOHCD committed to meeting with community groups before the full Board vote. The committee voted 3-0 to forward the four items without recommendation as committee reports for consideration on June 8.
Item 13 – Pretrial Services Contract (Resolution)
The Sheriff’s Office requested a new three-year contract (with two one-year options) with SF Pretrial Diversion Project for pretrial services, total not to exceed $18,764,430. The contract uses the PSA (Public Safety Assessment) tool, with a validation study due July 1, 2021. Supervisor Stefani asked about safety metrics (focus on life-of-pretrial vs. quarterly), assertive case management, and tracking court overrides. The committee discussed the importance of data and continuous improvement. Public comment included opposition from the union (citing pending civil service determination and desire to wait for validation study) and support from multiple organizations. The committee recommended approval.
Items 14-18 – Central Subway Artwork Contract Extensions (Five Resolutions)
The Arts Commission presented retroactive extensions of five artists’ contracts (Catherine Wagner, Paramedia, Tomie Arai, White Light/Werner Klotz, Yumei Hou) to December 31, 2021, with a $15,906 increase for one contract due to refabrication costs. The artwork installations have been delayed due to overall construction delays. The committee recommended approval.
Key Outcomes
- Item 1: Passed 3-0, amended and recommended.
- Item 2: Passed 3-0, recommended as committee report.
- Item 3: Passed 3-0, recommended.
- Item 4: Passed 3-0, amended and recommended.
- Items 5-6: Passed 3-0 each, amended and recommended.
- Items 7-8: Passed 3-0 each, recommended.
- Items 9-12: Passed 3-0 to forward without recommendation as committee reports.
- Item 13: Passed 3-0, recommended.
- Items 14-18: Passed 3-0, recommended.
- Closed Session (Item 19): Committee voted unanimously to recommend settlement of lawsuit for $60,000.
Meeting Transcript
Good morning. This meeting will come to order. Welcome to the June 3rd, 2021 regular meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors. I am Supervisor Dean Preston, Chair of the Committee, joined by Vice Chair Supervisor Connie Chan and Committee Member Supervisor Raphael Mandelman. The committee clerk is John Carroll, and our thanks to SFGov TV for staffing this meeting. Mr. Clark, do you have any announcements? Yes, 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 currently in effect. Committee members will attend the meeting through video conference and participate in this meeting to the same extent as if they are 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 your comments during any of today's public comment periods is available to you via phone by dialing 415-655-0001. Once you're connected to that phone number imprompted, enter the meeting ID for today's meeting. The meeting ID is 187-317-4941. Following that, press pound twice to be connected to the meeting. When you are connected, you will hear the meeting discussions, but you 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. Alternatively, you may submit your public comment in writing in either of the following ways. You may email me. I'm the clerk of the government audit and oversight committee, and my email address is J-O-H-N period C A R R O L L at SFGOV.org. If you submit your public comment via email, I will include it as part of the file upon which you are commenting. Or you can send your written comments to our office in City Hall. The clerk's office is room 244, and City Hall's address is one. Dr. Carlton B. Goodlit Place, San Francisco, California 94102. And finally, Mr. Chair, items acted upon today by the committee will appear on the Board of Supervisors Agenda of June 15th, 2021, unless otherwise stated. Thank you, Mr. Clerk. Please call item one. Agenda item number one is an ordinance amending the administrative code to establish the San Francisco Reinvestment Working Group to submit business and governance plans for a non-depository municipal finance corporation and for a public bank to the Board of Supervisors and to the LAFCO to the LAFCO to local agency formation commission. Members of the public who wish provide public comment on this ordinance should call the public comment number, which is 415-6550001. Enter the meeting ID of 187-317-4941. Press the pound symbol twice to connect to the meeting and then press the star key followed by the number three to be entered into the queue to speak. Assistant prompts will indicate that you have raised your hand. Please wait until the system indicates you've been unmuted and you may then begin your comments. And one more thing, Mr. Chair, we are joined today by uh Arturo Cosenza from the Office of Civic Engagement and Immigrant Affairs, who can interpret into Spanish the services that he would provide to any callers who may have who would be calling to speak Spanish to the committee. Mr. Casenza, are you there? Um yes, I am. Commentario publico in the reunion del Comité de Auditoria y Supervisión Gubernamental. S invita a los members del publicario publico in la reunión del comité. But marque 1415-655-0001. Seguido por el código de la reunión 187-317-40941, Marquea Serisco 3 para ingresar a la línea de espera. Gracias.
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