San Francisco Government Audit and Oversight Committee Meeting - November 18, 2021
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
San Francisco Government Audit and Oversight Committee Meeting - November 18, 2021
The Government Audit and Oversight Committee of the San Francisco Board of Supervisors met on November 18, 2021, chaired by Supervisor Dean Preston with Vice Chair Connie Chan and Supervisor Gordon Mar (substituting for Supervisor Raphael Mandelman). The committee heard three major items: an update on the Emergency Firefighting Water System (EFWS) expansion, the abrupt cancellation of a planned drop-in center for homeless youth at 730 Stanyan Street, and a review of the San Francisco Parks Alliance’s relationships with city departments. The committee also approved several lawsuit settlements in closed session.
Civil Grand Jury Report on Emergency Firefighting Water System (Item 1)
- Presentation by John Scarpula (PUC): The PUC presented findings from two studies: the neighborhood firefighting demand study and the seawater supply study. The demand study estimated that 240,000 gallons per minute would be needed citywide for 25 hours after a 7.9 San Andreas earthquake, based on building inventory, vegetation, and future development projections. The seawater supply study concluded that a seawater pump station on the west side is not immediately advised due to permitting challenges, erosion, and cost (estimated $68 million for a small 3,000 gpm station, $180 million for a full 37,000 gpm station). The preferred plan is to connect Lake Merced (1.7 billion gallons, providing three weeks of supply) and other sources, with pipelines and water source modifications totaling $1.6 billion (2021 dollars). A 15- to 25-year construction timeline was suggested.
- Presentation by Severin Campbell (BLA): The BLA analyzed financing options, concluding that general obligation bonds are the most viable source. The city has capacity within its debt limit (currently at 1.8% of assessed valuation vs. 3% limit). Recommendations included resizing a planned transportation bond, using development agreements, and creating a long-term financial plan.
- Public Comment: Multiple callers (including Dick Morton, Ted Lowenberg, Pat Skein, Catherine Howard, Jeff Rigo, Erica Zweig) expressed urgency, criticized PUC’s pace, opposed using potable water, and called for immediate acquisition of portable hose tenders. Some urged inclusion of a seawater pump station on the west side.
- Key Outcome: The committee voted unanimously to continue the hearing to the call of the chair. Supervisor Mar requested that the comprehensive action plan due December 31, 2021, include a scenario with a west side seawater pump station and a financing plan. The fire department was asked to develop a plan for acquiring hose tenders.
Interim Use Plan for 730 Stanyan Street – Drop-in Center for Homeless Youth (Item 2)
- Background: Supervisor Preston stated that the city had promised to open a day drop-in center for transitional age youth (TAY) at 730 Stanyan by end of October 2021, after the successful safe sleeping site (CAMP) closed in June. On October 21, HSH informed his office the project would not proceed, citing a funding gap. The mayor later gave conflicting reasons.
- Presentation by Director McSpadden (HSH): She said the project was cancelled because the $90,000 in first-year funding (from an ad-back) was insufficient; the estimated annual cost was $372,000. She also cited a need to prioritize housing placement and staff bandwidth. She stated that even if additional funds were found, HSH would not proceed.
- Presentation by Director Shaw (MOCD): MOCD’s interim use policy prioritizes city-serving uses; current focus is on security. The site is slated for 100% affordable housing, with construction expected to begin in September 2023.
- Public Comment: Dozens of callers spoke. Supporters (including Homeless Youth Alliance staff, Coalition on Homelessness, and residents) urged the city to honor its promise, highlighting the need for bathrooms, showers, and referrals. Opponents (including neighborhood associations) cited safety concerns and argued the site should remain vacant until housing is built. Several callers accused the mayor of bowing to a vocal anti-homeless group.
- Key Outcome: The committee voted unanimously to continue the hearing to the call of the chair. Supervisor Preston criticized the mayor’s intervention and requested a breakdown of the project budget from HSH.
Review of San Francisco Parks Alliance Relationships (Items 3-6)
- Controller’s Office Presentation (Tiffany Wong, Amanda Sebrapenia): The controller’s public integrity review (September 2020) found that the Parks Alliance had subaccounts for Public Works that operated outside city financial systems, creating pay-to-play risks. Recommendations included formal MOUs, prohibiting anonymous donations, and restricting department head solicitation. The controller had not reviewed similar subaccounts for Rec and Park.
- BLA Presentation (Fred Brusseau): The BLA assessed five agreements between Rec and Park and Parks Alliance (including the Golden Gate Park 150th anniversary, SkyStar wheel, and Conservatory of Flowers). Key findings: the 2003 Conservatory of Flowers agreement expired in 2012 and contains no minimum guarantee; the SkyStar use permit caps city revenue at $900,000 to avoid triggering charter Section 9.118; anonymous donations totaled $1.5–$3 million from 72 donors; and there are no competitive bidding requirements for in-kind services. The BLA recommended strengthening conflict-of-interest and prevailing wage provisions.
- Port of San Francisco (Item 6): Assistant Director Mike Martin presented an MOU for Parks Alliance to fundraise up to $7 million for Crane Cove Park improvements, with an 11% fee. The port incorporated all controller recommendations.
- Public Comment: Several callers supported increased oversight and transparency. No callers opposed.
- Key Outcomes:
- The committee voted to issue a subpoena to the Parks Alliance for records of Rec and Park subaccounts and transactions over the past five fiscal years.
- Items 4 and 5 (annual support grants and Tea Garden restoration) were continued to the call of the chair.
- Item 6 (Crane Cove Park MOU) was also continued to the call of the chair, pending resolution of outstanding issues.
Litigation (Closed Session, Items 7-13)
- The committee convened in closed session and unanimously recommended approving five lawsuit settlements and two unlitigated claim settlements, to be considered by the full Board on November 30, 2021. The committee voted not to disclose the closed session discussions.
Key Outcomes
- Continued all three major hearings to the call of the chair.
- Issued a subpoena to the San Francisco Parks Alliance for subaccount records with Rec and Park.
- Directed the PUC and other departments to include a west side seawater pump station scenario in the comprehensive EFWS action plan due December 31, 2021.
- Requested a financing plan for the EFWS and a fire department hose tender acquisition plan.
- Approved litigation settlements in closed session for recommendation to the full Board.
Meeting Transcript
Good morning, everyone. This meeting will come to order. Welcome to the November 18th, 2021 regular meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors. I am Supervisor Dean Preston, Chair of this committee. I'm joined by Vice Chair Supervisor Connie Chan, as well as Supervisor Gordon Marr, who is substituting in today for Supervisor Raphael Mandelman. The committee clerk is Victor Young, and we will be joined later by the other our other clerk, uh John Carroll. And I wanted to extend our thanks to Kalina Mendoza and Michael Baltazar from SFGov TV for staffing this meeting. Mr. Clerk, do you have any announcements? Yes. The minutes will reflect the committee members participated in this remote meeting through video conference to the same extent as though physically present. The board recognizes that public access to city services is essential and invites public participation in the following way. First, public comment will be available on each item on this agenda, either channel 26, 78, or 99, and sfgovtv.org are streaming the public call-in number across the screen. Each speaker will be allowed two minutes to speak. Comments opportunities to speak during public comment period are available via phone by calling 415 65501. Again, that's 415, 65501. The meeting ID is 2496, then press pound and pound again. When connected, you will be in listening. You will hear the meeting discussions, but you will be muted and listening mode only. When your item of interest comes up, please dial star three to be added to the speaker line. Best practices are to call from a quiet location, speak clearly and slowly, and turn down your television or radio. Alternatively, you may submit public comment in writing in either of the following ways. Email them to the government audits and oversight committee clerk at John Carroll at SFgov.org. That's J O H N dot C A R R O L L at SFgov.org. If you submit public comment via email, it will be forwarded to the supervisors and included as part of the file. You may also send written public comment by US Postal Service to our City Hall office at City Hall, one Dr. Carl Otto and B. Goodlit Place. Room 244, San Francisco, California, 94102. Finally, items acted upon today are expected to be on the Board of Supervisors agenda of November 30th, 2021, unless otherwise stated. Thank you. Mr. Clerk, uh and um at the outset here, I'd like to make a motion to excuse Supervisor Mandelman from today's um GAO meeting and uh allow uh supervisor Maher to take his place. Uh Mr. Clerk, can you call the roll in the motion to excuse? Yes, on that motion. Vice Chair Chan. Aye. Chan I Chair Preston. Aye. Preston I supervisor Marr. Aye. Mar I. The motion passes without objection. Thank you, Mr. Clerk. Um, please call item one on our agenda. Yes, item number one is a hearing on the 2018-2019 Civil Grand Jury report entitled Act Now Before It's Too Late. Aggressively expand and enhance our high pressure emergency firefighter firefighting water system. Thank you.
openpublica.com