San Francisco Government Audit and Oversight Committee Meeting - February 17, 2022
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San Francisco Government Audit and Oversight Committee Meeting - February 17, 2022
The Government Audit and Oversight Committee of the San Francisco Board of Supervisors met on February 17, 2022, starting at 6:15 PM UTC (10:15 AM PST). The meeting, chaired by Supervisor Dean Preston, included Vice Chair Connie Chan and Supervisor Raphael Mandelman. The committee considered three agenda items: a resolution confirming annexation of property to the Transbay Community Facilities District, a hearing on municipal bikeshare featuring a Budget and Legislative Analyst (BLA) report, and a hearing on the 706 Mission Street Purchase and Sale Agreement community benefits update. All items were acted upon unanimously.
Consent Calendar
- The committee unanimously recommended to the full Board of Supervisors a resolution (File No. 211309) confirming the annexation of 75 Howard Street into the Transbay Community Facilities District No. 2014-1 and affirming the annexation process. The resolution was presented by Bridget Katz from the Controller's Office of Public Finance, with no public comment and no opposition.
Public Comments & Testimony
- Item 2 (Bikeshare Hearing): Over 20 callers provided public comment. Key positions included:
- Zach Lipton (District 6 resident) expressed support for public ownership but cautioned against destabilizing the regional system, noting that San Francisco's bike share system is now the most expensive in the world.
- David Alexander (Richmond Family Transportation Network) supported municipal bike share, stressing the need for better infrastructure.
- Christopher White (San Francisco Bicycle Coalition) stated that the current system fails to prioritize affordability, access, and equity.
- Parker Day (District 3 resident) noted that e-bike trips are often as expensive as Lyft rides, undermining the goal of reducing car dependency.
- Roland Aldonado (Oakland resident) supported a regional municipal system to ensure equity across the Bay Area.
- Jay Bain (Richmond District resident) called for cargo bike share and adaptive bike share programs, noting Lyft's lack of interest.
- Cliff Barger (Potrero Hill resident) emphasized the need for regional coordination, especially with Caltrain.
- Clara Mobley (San Francisco Bicycle Coalition) stressed that the current system is inaccessible to underserved communities, particularly in the Tenderloin.
- Jesse Fernandez (Bicis del Pueblo) supported public ownership, citing lack of community engagement from private operators.
- Oscar Grande (Excelsior Bike Club) advocated for community ownership to ensure accountability and equity.
- Stan Jones (TWU Local 320) supported full municipalization or a public-private hybrid, noting that Bay Wheels expanded only 4 stations in the past year compared to 355 in New York.
- Emily Houston (journalist) urged a return to public control, referencing historical precedent.
- Several callers (e.g., David Alexander, Curtis Wu) emphasized the need for safer bike infrastructure to support increased ridership.
- Item 3 (706 Mission PSA): Three callers provided comment:
- Alan Lowe called for governance and accountability in the administration of community benefit funds, citing the PSA's provision for a community review process.
- Misha Olivas (United Players) expressed frustration that the $1.8 million open space fee was allocated to capital costs without community consultation, and urged an ordinance for oversight of development agreements.
- Heather Phillips (Friends of Gene Friend and Victoria Manalo Draves Park) advocated for a community process to ensure funds are used as additional enhancements, not substitutions for city maintenance.
Discussion Items
Item 2: Bikeshare Hearing - Budget and Legislative Analyst Report on Public Bike Share
- Chair Preston opened the hearing, stating that the purpose was to explore public alternatives to the current privatized model, emphasizing the need to align bike share with climate goals, equity, and public control. He noted that the current for-profit system raises concerns about conflicts of interest, pricing, data transparency, and affordability.
- Severin Campbell and Carl Bytel from the BLA presented their report, released that day. Key findings:
- San Francisco accounts for 87% of the Bay Area Bike Share system, with 3,600 bikes (2,000 classic, 1,600 e-bikes) and 255 docking stations.
- Between August and November 2021, San Francisco had about 700,000 rides out of 800,000 regionally.
- Ridership shifted from members to casual riders during the pandemic; e-bikes account for a growing share.
- The current model (private ownership and operation) is used by San Francisco and New York. Other models: public ownership with private operation (Boston, Washington DC, Chicago, Boston) and fully public ownership and operation (Montreal).
- Montreal has lower fees ($99 annual vs. $159 in SF; $0.05/min vs. $0.20/min) and higher ridership (5.5 daily rides per 1,000 residents vs. 1.0 in SF).
- Estimated costs for a municipal system in SF: $33.2 million to purchase assets (for a larger system of 4,500 bikes, 325 stations), $13.3 million annual operating cost (nonprofit model) or $18.2 million (civil service), with a public subsidy of $3-4 million per year.
- Lyft does not share data; other cities expressed frustration with lack of transparency.
- The BLA identified three options: fully public (Montreal model), public ownership with private operation, or continuation of the current model.
- Adrian Long, SFMTA Bike Share Program Manager, presented the agency's perspective. He noted that the current regional agreement runs through 2027, with an e-bike agreement through 2024. He highlighted successes (7 million trips, 9 million vehicle miles reduced, low-cost annual membership, no taxpayer cost) and challenges (slow expansion, misaligned incentives with Lyft, theft and vandalism). He recommended maintaining existing contracts and beginning deeper analysis for the next phase, including supplemental programming like library memberships and youth bike share.
- Jamie Parks, SFMTA Livable Streets Director, clarified that the e-bike pricing was not determined in the original contract, and Lyft has a right of first offer for e-bikes, limiting negotiation options until 2024.
- In discussion, Supervisor Preston asked about Lyft's profitability and data sharing. The BLA responded that Lyft has not shared data, and other cities reported similar frustrations. Supervisor Mandelman questioned theft and vandalism costs; Lyft claims San Francisco's costs are twice New York's total, but this could not be verified. Supervisor Chan expressed support for a comprehensive approach integrating bike share with transit and land use planning.
Item 3: Hearing on 706 Mission Street PSA - Community Benefits Update
- Supervisor Peskin, who requested the hearing, provided background: the 2013 Purchase and Sale Agreement (PSA) with Millennium Partners included community benefits for open space, the Mexican Museum, and affordable housing, intended to mitigate impacts on the SOMA neighborhood. He noted that funds have been slow to be spent and community consultation has been lacking.
- Deputy City Attorney Heidi Gerwitz outlined the PSA's fee structures: affordable housing fee ($4.3 million to OCI), GMOS SOMA open space payment (annual, with 50% for Yerba Buena Gardens and 50% for SOMA open space), a cultural component endowment ($5 million, one-third paid), transfer payments (percentage of condo sales for public benefits in SOMA), and a one-time open space fee ($1.8 million). She noted that the $1.8 million payment was initially subject to interpretation about whether it could be used for Yerba Buena Gardens, but was ultimately determined to be for SOMA open spaces only.
- Ken Bukowski (Deputy City Administrator) reported that the city's Real Estate Department has received:
- $440,782 in GMOS SOMA open space payments (for FY21 and FY22), to be transferred to Rec and Park.
- $404,000 in transfer payments from condo sales (lower than expected due to slow sales), which will be transferred to the Mayor's Office of Housing and Community Development (MOHCD) for the SOMA Stabilization Fund.
- The $1.8 million one-time open space fee was transferred to Rec and Park in the past week and allocated to the Gene Friend Recreation Center capital project.
- Aaron Foxworthy (OCII) reported that the $4.3 million affordable housing fee for OCII has received only $899,000 to date. The second installment (40%) was due November 2021, but the developer has requested an extension citing force majeure due to COVID-19. OCII is evaluating the request; interest is not specified in the agreement.
- Antonio Guerra and Stacy Bradley (Rec and Park) confirmed that the $1.8 million open space fee was allocated to the Gene Friend Recreation Center capital project, which is also funded by developer impact fees and a bond. They stated that the decision was made in consultation with city agencies, but not with the broader community.
- Supervisor Peskin expressed concern that the community was not consulted, and that the funds should be used for programming and enhancements, not as a substitute for city maintenance. He indicated intent to bring forward legislation to establish a community review process for such funds.
Key Outcomes
- Item 1 (Annexation Resolution): Recommended to the full Board of Supervisors by a unanimous vote (3-0).
- Item 2 (Bikeshare Hearing): Continued to the call of the chair by a unanimous vote (3-0). Chair Preston indicated that the conversation will continue with stakeholders, including labor, SFMTA, the public, and regional partners, to inform future decisions before the 2027 contract renewal.
- Item 3 (706 Mission PSA Hearing): Filed by a unanimous vote (3-0). Supervisor Peskin announced plans to draft legislation requiring a community review process for the expenditure of these funds, and warned Rec and Park not to spend the $1.8 million until the community and board have input.
Meeting Transcript
Uh, I'm Supervisor Dean Preston, Chair of this committee, joined by Vice Chair Connie Chan and Supervisor Raphael Mandelman will soon be joining us. Uh, the committee clerk uh is John Carroll, and our thanks to SFGov TV for staffing this meeting. Mr. Clerk, uh, do you have some announcements? Yes, thank you, Mr. Chair. The minutes will reflect that committee members are participating in this remote meeting through video conference to the same extent as though they were physically present in a meeting room somewhere in City Hall. The board recognizes that public access to city services is essential and invites your public participation in the following ways. First, public comment is available on each item on today's agenda. Uhgov TV Cable Channel 26 is streaming the public comment call-in number across the screen at this time. Each speaker will be allowed up to two minutes to speak. Your opportunity to speak during any of today's public comment periods will be available to you via phone by dialing 41565501. After you've entered that, you'll be prompted to enter a meeting ID. The meeting ID for today's meeting is two four nine one zero three eight two three zero five. After you've entered the meeting ID, press the pound symbol twice to connect to the meeting discussions. You will hear the meeting discussions, but your line will be muted and in listening mode. When your item of interest comes up on our agenda, dial star, followed by three to be added to the queue to speak for that item. Best practices are to call from a quiet location to speak clearly and slowly and to turn down your television, your radio, your streaming device, whatever you may be using to access today's proceedings. Alternatively, you may submit your public comment in writing. I invite you to send an email to myself. Uh, I'm the government audit and oversight committee clerk. My email address is J-O-H-N period. C-A-R-R-O-L-L at SFGOV.org. Or you can send your comments in uh writing via U.S. Postal Service to the clerk's office. The clerk's office is in room 244 of City Hall. City Hall's address is one Dr. Carlton B. Goodlake Place, San Francisco, California 94102. Whatever we receive that is commenting on an item on our agenda will be communicated to the members of the Board of Supervisors and to the members of this committee specifically. And finally, Mr. Chair, items acted upon today are expected to appear on the Board of Supervisors' agenda of March 1st, 2022, unless otherwise stated. Thank you, Mr. Clerk. And we have been joined by uh Supervisor Mandeman. Welcome. Um, and let's go ahead, Mr. Clerk, and call the first item. Agenda item number one is a resolution confirming that property is annexed to the city and county of San Francisco facilities district number 2014-1 for the Trans Bay Transit Center. And determining and confirming the process for properties to annex into the district. If this is your item of interest, you should call the public comment call a number. It is 415-655-0001. Enter the meeting ID, which is 24910382305. Press the pound symbol twice to connect to the meeting and then press star, followed by the number three to enter the queue to speak. And then await assistant prompt that indicates that you have been unmuted, and that will begin your opportunity for your comments. Mr. Chirley is called. Thank you, Mr. Clerk. And um we are joined by and we'll be hearing from uh the controller's uh office.
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