San Francisco Government Audit and Oversight Committee Regular Meeting - May 19, 2022
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San Francisco Government Audit and Oversight Committee Regular Meeting - May 19, 2022
The San Francisco Board of Supervisors Government Audit and Oversight Committee met on May 19, 2022, at 18:15 UTC, chaired by Supervisor Dean Preston, joined by Vice Chair Connie Chan and Supervisor Mirna Melgar (filling in for Raphael Mandelman). The committee addressed a consent calendar, regular agenda items including grant authorizations, hearings on a child care center at Zuckerberg San Francisco General Hospital and the affordable housing funding gap, and multiple contract amendments for behavioral health services. The meeting concluded with a closed session on litigation settlements.
Public Comments & Testimony
- Item 2 (Japanese Tea Garden): Lucy Fisher, member of Friends of the Japanese Tea Garden and Japantown Task Force, expressed strong support, noting community fundraising via QR codes and donations from visitors. Louise Mazingo, a landscape architecture professor and Friends member, emphasized the project is not just an improvement but a reparation for past racist destruction of a Shinto shrine.
- Item 3 (Child Care Center at SF General): Multiple SEIU 1021 members and retirees testified in support of the hearing, criticizing the decades-long delay. Speakers included Kristen Hardy (Vice President of SEIU SF General Chapter), Maria Gien, Judy Beck, Nicole Christian, and others. They stressed the need for on-site or nearby child care for retention and recruitment, and urged city-level oversight to unstick the project.
- Item 4 (Affordable Housing Funding Gap): Several public commenters called for full funding of Prop I (transfer tax revenue for housing) and Prop K (social housing). Speakers included Charlie Shamas (Poder), Berman Delmar (Council of Community Housing Organizations), Alex Lansburg (Housing Stability Fund Oversight Board), Simone Manganelli, Patrick Lynette Shaw, and Patricia Corin. They emphasized the crisis, the need for innovation (e.g., social housing, land acquisition, modular construction), and criticized the lack of progress on Prop I funds.
- Items 5-8 (Contract Amendments): No public comment was offered on these items.
Discussion Items
- Item 1 (Crane Cove Park MOU – Up to $7,000,000): The committee considered a resolution authorizing the Port to execute an MOU and accept grants from the San Francisco Parks Alliance for Crane Cove Park. Vice Chair Chan expressed concerns about conflicts of interest with the Parks Alliance and referenced a recent mayoral letter pausing philanthropic fundraising. She proposed amendments to cap the authorization at $3,250,000 (the amount already raised) and require future funds to return for board approval. The Port representative, Michael Martin, supported the amendments. The BLA recommended approval. The committee voted unanimously to adopt the amendments and recommend the resolution to the full board.
- Item 2 (Japanese Tea Garden Restoration – Up to $400,000): The resolution authorized Rec and Park to accept grants from the San Francisco Parks Alliance for restoration projects. Vice Chair Chan confirmed the funds were raised by the Japantown Task Force and included in-kind donations. The committee heard supportive public comments and voted unanimously to recommend the resolution.
- Item 3 (Hearing on Status of Child Care Center at SF General Hospital): Supervisor Melgar sponsored the hearing, noting the city's contractual obligation from a 2019 arbitration award. DPH's Terry Saltz presented challenges: the preferred site (CHN building) faces structural issues (seismic separation needed), a funding gap from $5.1M to $13.6M (or $19.9M for demolition and rebuild), inadequate play areas, and unresolved parking conflicts. Alternatives were reviewed but all have drawbacks. SEIU 1021's Ed Kinchley testified that the city has delayed for decades, and the July 1, 2021 deadline was missed. He called for city-level oversight. Graham Dobson from the Office of Early Care and Education noted obstacles: lack of natural light, temporary fencing for infant play areas, and seismic concerns. Recreation and Parks offered to work on a fencing MOU. The committee voted to continue the hearing to the call of the chair.
- Item 4 (Hearing on Funding Shortfall for Affordable Housing Goals): The hearing examined the gap between available funding and the need to meet city and state housing goals. Planning's Maya Small presented that the city produced ~1,000 new affordable units per year over the last five years (48% of RHNA goals) while exceeding market-rate goals (151%). The next RHNA cycle (2023-2030) nearly triples affordable targets. MOHCD's Lydia Ely outlined funding sources (LIHTC, tax-exempt bonds, local funds) but noted volatility: state/federal sources are highly competitive, and local sources (inclusionary fees, bonds) are volatile. The funding gap is projected at $1.3–$2.4 billion per year from 2023 onward, even with state/federal leverage. Deputy Director Ely stated that all currently available local funds are committed to projects; Prop I funds ($74M) are pending budget decisions. Chair Preston criticized the lack of transparency and data on uncommitted balances, and called for fully funding Prop I. Supervisor Chan requested clarity on funding sources and reporting requirements. The committee voted to continue the hearing to the call of the chair.
- Items 5-8 (Contract Amendments for Behavioral Health Services): These items were presented and approved with discussion on contingencies, performance monitoring, and extension terms.
- Item 5 (Health Right 360 – Up to $163,930,879): Amendment extends the contract three years (to June 2025) and adds ~$79M for residential SUD and mental health outpatient services. DPH noted the contingency is 5.4% ($8.8M) and explained their 12% methodology. The BLA reported no red flags. Approved unanimously as a committee report.
- Item 6 (Felton Institute – Up to $77,605,232): Amendment extends five years (to June 2027) and adds ~$41M for behavioral health services for children, youth, families, and older adults. DPH explained the 14.6% contingency aligns with their 12% calculation. Services include intensive case management and Full Service Partnerships. Performance data showed 93.8% target achievement. Approved unanimously as a committee report.
- Item 7 (Mental Health Plan Amendment – $0): Technical amendment to the state agreement to memorialize federal parity regulations. No fiscal impact. Approved unanimously as a committee report.
- Item 8 (BAART – Up to $98,283,105): Amendment extends five years (to June 2027) with one optional year and adds ~$62M for opioid treatment services (methadone/buprenorphine). DPH noted expanded hours funded by Prop C. Performance monitoring showed 90% of objectives met; the FACE pregnancy program had 34% service delivery due to population challenges. Approved unanimously as a committee report.
Key Outcomes
- Items 1 & 2: Resolutions approved with amendments to cap Crane Cove grant at $3.25M and accept Japanese Tea Garden grant as amended. Both recommended to full board (unanimous).
- Items 3 & 4: Hearings continued to the call of the chair (unanimous), allowing further investigation and follow-up.
- Items 5-8: All contract amendments approved as committee reports for the full board (unanimous).
- Closed Session (Items 9-20): The committee convened closed session to discuss 12 settlement/litigation matters (totaling over $9.7M). Upon reconvening, the committee voted unanimously not to disclose the closed session deliberations.
- Other Motions: The committee excused Supervisor Mandelman and allowed Supervisor Melgar to serve. A two-minute recess was taken during the child care hearing due to a technical issue.
Meeting Transcript
San Francisco Board of Supervisors. I am Supervisor Dean Preston, Chair of the Committee, joined by Vice Chair Connie Chan and Supervisor Mirna Melgar, who will be filling in for uh Supervisor Raphael Mandelman today. Our committee clerk is Jessica Perkinson, and I want to thank our team at SFGov TV for staffing this meeting. Madam Clerk, do you have any announcements? Yes, I do. The Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment while still providing remote access and public comment via telephone. The board recognizes that equable equitable public access is essential and will be taking public comment as follows. First, public comment will be taken on each item on this agenda. Those attending in person will be allowed to speak first, and then we will take those who are waiting on the telephone line. For those watching either Channel 26, 78 or 99 and sfgutv.org, the public comment call call-in number is streaming across the screen. The number is 415 65501. Once connected, enter the meeting ID 24957052640, then pound twice. When connected, you will hear the meeting discussions, but you will be muted and in listening mode only. When your item of interest comes up and public comment is called, those joining us in person should line up to speak, and those on the telephone line should dial star three to also be added to the speaker line. If you are on the telephone, please remember to turn down your TV and listening devices you may be using. Alternatively, you may submit public comment in writing in either of the following ways. Email them to the to the G A O clerk at uh Jessica.perkinson at sfgub.org. That's J E S S I C A dot P E R K I N S O N at Sf G O V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and will be included as the part of as part of the official file. You may also send your written comments via U.S. Postal Service to our office at City Hall when Dr. Carlton B. Goodlit Place, Room 244, San Francisco, California 94102. And finally, items acted upon today are expected to appear on the Board of Supervisors agenda of June 7th, 2022, unless otherwise stated. That concludes my announcements. Thank you, Madam Clerk. And before we call the first item, I would like to make a motion to excuse Supervisor Mandelman from today's uh meeting and allow Supervisor Melgar uh to take his place on the committee. Madam Clerk, please call the roll on that. Yes, on that uh motion, um Vice Chair Chan. Aye. Chan aye. Um member Melgar. Aye. Melgar, aye. Chair uh Chair Preston. Aye. You have three ayes. Thank you. So the motion passes, and Madam Clerk, let's call the first item. Item number one on the agenda is the resolution authorizing the Port of San Francisco to execute a mem memo memorandum of understanding and accept and expend grants from the San Francisco Parks Alliance of up to $7 million to fund and fund the completion of certain projects components of Crane Grove Park for the period of November 2021 to October 2029. Members of the public who wish to provide public comment on this resolution may line up to speak, or if you are joining us remotely, please call the public call comment number 415 65501. Enter this meeting ID of 2495 7052640, then press pound twice. Or once connected to the meeting, you will be you will you will need to press star three to enter the speaking line. Assistant prompt will indicate that you have raised your hand. Please wait until the we take public comment on this item and when the system indicates you have been unmuted. That will be your cue to begin your comments. Thank you. Thank you, Madam Clerk and colleagues. This item was continued from one of our uh previous meetings, and I want to thank uh Supervisor Chan for uh for her work in uh in between meetings on this and uh supervisor chan. Do you have some comments?
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