Government Audit and Oversight Committee Meeting – October 6, 2022
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Government Audit and Oversight Committee Meeting – October 6, 2022
The Government Audit and Oversight Committee of the San Francisco Board of Supervisors met on October 6, 2022, chaired by Supervisor Dean Preston, with Vice Chair Connie Chan and Supervisor Raphael Mandelman. The committee considered six agenda items, including a Mills Act contract non-renewal, naming a supportive housing development, extending cannabis sunset dates, a hearing on the city's rent relief program, and a response to a civil grand jury report on Hunters Point Naval Shipyard. All items were approved or continued.
Mills Act Historical Property Contract Non-Renewal – 621 Waller Street
- Item 1: Resolution approving non-renewal of a Mills Act contract for 621 Waller Street due to unauthorized work. Supervisor Aaron Peskin (sponsor) noted the property owners signed the contract in 2014 but failed to comply, leading to enforcement action by the Planning Department. The Historic Preservation Commission unanimously recommended non-renewal rather than immediate termination. Property owner Renee Zelger expressed regret and stated they spent $140,000 on repairs and had worked with the city since 2020 to resolve unpermitted work. Supervisor Peskin countered that the contract requires compliance with city laws. The committee voted unanimously (3-0) to send the resolution to the full board with a positive recommendation.
Naming Supportive Housing for Margot Antonetti – 1321 Mission Street
- Item 2: Ordinance to name the permanent supportive housing development at 1321 Mission Street in memory of public health advocate Margot Antonetti, who passed away on May 26, 2020. Supervisor Mandelman (sponsor) highlighted her three decades of work creating hundreds of supportive housing units and influencing HIV, harm reduction, and homelessness policies. Lauren Hall, Executive Director of DSH, and Sherilyn Adams, Executive Director of Larkin Street Youth Services, gave presentations noting the building has 120 studio units and 39 units for families, with modern amenities. Public comment was not offered. The committee voted unanimously (3-0) to send the ordinance to the full board with a positive recommendation.
Cannabis Sunset Date Extension
- Item 3: Ordinance extending the sunset date for medical cannabis dispensary provisions and temporary cannabis business permits from December 31, 2022, to December 31, 2024. Supervisor Mandelman (sponsor) stated the extension is needed to allow businesses that came forward during the amnesty program to continue operating while their permanent applications are processed. Nikesh Patel, Director of the Office of Cannabis, reported that 33 medical cannabis dispensaries are active, 60 temporary permit holders exist, and the office has cleared a backlog of equity applicant applications, issuing 31 equity permits. The office has hired three additional staff to process remaining applications. The committee voted unanimously (3-0) to send the ordinance to the full board.
Hearing on City’s Rent Relief Program
- Item 4: Hearing to review the city’s rent relief program, prompted by the September 21, 2022 announcement that the program would pause accepting new applications effective September 23. Chair Preston expressed concern about the short notice and the need to protect tenants. Eric Shaw, Director of MOHCD, reported that the program has served nearly 5,000 households with $34 million distributed, and $43 million remains available. There is a backlog of about 4,500 pending applications, with 250–300 new applications per week. The pause aims to clear the backlog and improve processing times; the program expects to resume in a few weeks to months. Public comment included praise for case managers and a request to allow re-applications for those with intermittent income. The committee voted to continue the item to the call of the chair (3-0).
Civil Grand Jury Report – Hunters Point Naval Shipyard
- Items 5 & 6: Hearing (Item 5) and resolution (Item 6) responding to the civil grand jury report “Buried Problems and a Buried Process: The Hunters Point Naval Shipyard in a Time of Climate Change.” President Walton’s chief of staff Natalie G. presented amendments to the resolution, which the committee adopted. The amendments include agreeing with findings F4, F5, and partially F6; implementing recommendation R2 (independent commission and third-party study); not implementing R3 and R7 but creating a short-term task force within 18 months; and urging the mayor to implement accepted findings. Public comment strongly urged the Board to refuse land transfer unless cleaned to unrestricted residential standards, and criticized the EPA for not requiring full cleanup. The committee voted to adopt the amendments, then passed the amended resolution (Item 6) to the full board with a positive recommendation (3-0), and filed Item 5 (3-0) after initially voting to continue.
Key Outcomes
- Item 1 (Mills Act non-renewal): Approved unanimously (3-0) to full board.
- Item 2 (Naming building): Approved unanimously (3-0) to full board.
- Item 3 (Cannabis sunset): Approved unanimously (3-0) to full board.
- Item 4 (Rent relief hearing): Continued to call of the chair (3-0).
- Item 5 (Grand jury hearing): Filed (3-0) after initial motion to continue was rescinded.
- Item 6 (Grand jury response): Amended and approved unanimously (3-0) to full board.
Meeting Transcript
Good morning. This meeting will come to order. Welcome to the October 6th, 2022 regular meeting of the government audit and oversight committee of the San Francisco Board of Supervisors. I'm Supervisor Dean Preston, Chair of the Committee, joined by Vice Chair Connie Chan and Supervisor Raphael Mandelman. The committee clerk today is Stephanie Cabrera, and want to thank our team at SFGov TV for staffing this meeting. Madam Clerk, any announcements? 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 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. Then we will take those who are waiting on the telephone line. For those watching either Channel 26, 28, 78, or 99, and sfgovtv.org, the public comment call in number is streaming across the screen. The number is 415-655-0001. Again, that is 415-655-0001. When prompted, enter the meeting ID 2484 549 8965, then pound, and then pound again. When connected, you will hear the meeting discussions, but you'll be muted and in listening mode only. When your line 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 should dial star three to also be added to the speaker line. If you are on your telephone, please remember to turn down your TV and all listening devices you may be using. As already indicated, we will be taking public comment from the attending in person first, and then we will go to our public comment telephone line. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the government audit and elversight clerk at Stephanie.cs and Charles A, BS and Bay, R E R A at SFgov.org. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service to our office in City Hall. One, Dr. Carlton B. Goodlit Place, Room 244, San Francisco, California 94102. Finally, items acted upon today are expected to appear on the Board of Supervisors agenda for October 18th, unless otherwise stated. Thank you, Chair. Thank you, Madam Clerk. Please call the first item. Item number one is a resolution regarding non-renewal of a Mills Act Historical Property contract with Claude Selweger and Renee Zellwager, the owners of 621 Waller Street, Assessors Parcel Block Number 0864, lot number 023 under Chapter 71 of the San Francisco Administrative Code, notifying the Assessor Recorder's Office of such non-renewal and authorizing the planning director to send notice of the non-renewal of the historical property contract to the owner and record a notice of non-renewal. Members of the public who wish to provide public comment on this item should call the public line at 415-655-0001. Meeting ID 2484-549-8965, then pound and pound again. If you haven't already done so, please dial star three to line up to speak. The system prompt will indicate you have raised your hand. Please wait until the system indicates you have been unmuted and you will begin your comments when we go to public comment. Thank you, Madam Clerk. And uh Supervisor Peskin is joining us today as the sponsor of this item and our resident uh MILS Act expert these days. So uh Supervisor Paskin turn over to you for any remarks. Thank you. Chair Preston. Um the Mills Act uh of the state of California was enacted, I think, in the early 1970s, which was a state law that authorized local governments to uh in exchange for work on historic uh resources uh by property owners, those property owners in exchange could get uh property tax reductions for a minimum period of 10 years uh subsequent to the passage of the Mills Act. The San Francisco Board of Supervisors adopted chapter 71 of the administrative code, which is our local implementing ordinance. Um, and there are any number of structures that receive Mills Act benefits under that law. Each and every one of those Mills Act contracts have to be approved by the Board of Supervisors. In this particular case, 621 Waller, some eight years ago in 2014, received a Mills Act contract that was approved by the Board of Supervisors that was predicated on work being done to that edifice, which was supposed to have been completed legally pursuant to permits. Unauthorized illegal work was conducted on that structure. A notice of enforcement and enforcement action was undertaken by the planning department, which ultimately resulted in a certificate of appropriateness being issued after the fact by the Historic Preservation Commission in July of this year. The Historic Preservation Commission then unanimously recommended to this board of supervisors that we not renew the MILS Act contract, which means that it would run for another 10 years.
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