San Francisco Board of Supervisors Government Audit and Oversight Committee Meeting - November 3, 2022
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San Francisco Board of Supervisors Government Audit and Oversight Committee Meeting - November 3, 2022
The Government Audit and Oversight Committee, chaired by Supervisor Dean Preston, with Vice Chair Connie Chan and Supervisor Raphael Mandelman, met on November 3, 2022, to discuss two regular agenda items: a hearing on the Ethics Department's audit processes and a resolution urging no gap in services following the planned closure of the Tenderloin Center. The committee also convened in closed session to discuss a lawsuit settlement. The meeting resulted in the continuation of the audit hearing to the call of the chair, forwarding of the resolution to the full board (2-1), and continuation of the settlement item to November 17.
Consent Calendar
- No consent calendar items were considered.
Public Comments & Testimony
- Ethics Audit Hearing: No public comments were received on item one.
- Tenderloin Center Resolution: A large number of public comments were received, both in person and via phone. Many speakers (e.g., Marnie Regan from Larkin Street Youth Services, Jennifer Friedenbach from Coalition on Homelessness, Lydia Branston from Gubbio Project, Curtis Bradford from Tenderloin People's Congress, and representatives from Glide, HomeRise, and San Francisco AIDS Foundation) expressed strong support for the resolution, urging the committee to ensure no gap in services. They argued that the center saves lives and that closing it without a replacement would lead to overdoses and deaths. Several speakers criticized the mayor's office for lack of planning and called for an extension. A few speakers opposed the resolution, including a representative from the Mid-Market Community Benefit District who questioned the center's effectiveness and noted increased open-air drug use, and Ellen Grant from Mothers Against Drug Addiction and Death, who argued that the center attracts drug dealing and does not promote wellness. One caller raised concerns about the Honduran cartel and the need to declare a state of emergency for fentanyl.
- Closed Session Settlement: One caller (Ellen Grant) spoke about liability concerns regarding the continuum of care but was redirected to the specific closed session item.
Discussion Items
Item 1: Hearing on Ethics Department Audit Processes (220139)
- Supervisor Aaron Peskin, the hearing sponsor, stated that the Ethics Department had fallen behind on mandatory audits of publicly financed campaigns. He noted that as a candidate in 2020, he has been unable to obtain a schedule for his own audit, which remains unperformed two years later. He expressed disappointment that the department lacked a written audit plan and had not accepted an offer from the Controller's office for assistance.
- Leanne Pelham, Director of the Ethics Department, reported that the department currently has an audit manager and three audit staff. She outlined the backlog: two audits from the 2019 election cycle are expected to be completed by December 2022; 14 mandatory audits from the 2020 cycle remain uninitiated, though two have been started (chosen because those candidates received the most public financing); and five audits from the 2022 cycle will be required. She estimated that with external auditors, the 2020 audits could begin by the third quarter of fiscal year 2023 (by end of March 2023) and take 10–12 months to complete. She attributed delays to the pandemic, staffing vacancies, and time needed to implement recommendations from a 2020 BLA performance audit. She noted that the department had asked for an additional senior auditor position in the budget but the mayor's office did not include it.
- Supervisor Peskin pressed for a written schedule. Director Pelham committed to providing a detailed timeline by close of business the next day (November 4).
- Vice Chair Chan asked whether the department treats repeat violators differently. Director Pelham said they do not fast-track or treat committees differently based on past findings, but she agreed to consider the suggestion.
- Chair Preston raised the issue of campaign accounts remaining open for years because candidates wait for audits to close, effectively creating unregulated officeholder accounts. He suggested that delayed audits incentivize candidates to keep accounts open indefinitely. Director Pelham noted that in Los Angeles, officeholder accounts are highly regulated and suggested that as a possible alternative.
- The committee voted to continue the item to the call of the chair (unanimous).
Item 2: Resolution Urging Continuation of Services After Closure of the Tenderloin Center (221090)
- Chair Preston introduced the resolution, expressing frustration that the mayor's office and Department of Public Health (DPH) had not provided a plan to replace services at the Tenderloin Center (TLC) after its scheduled closure on December 4, 2022. He noted that the center has seen 112,000 visits and reversed 280 overdoses since opening in January 2022, serving about 400 people per day.
- Dr. Hillary Cunnins, Director of Behavioral Health Services for DPH, presented a slideshow of the TLC's impacts (including 1,000 shelter referrals, 8,000 showers, 25,000 health/social service connections) and outlined DPH's overdose prevention plan, which includes opening two "wellness hubs" in the next year. She stated that the first hub is not in the Tenderloin area and is not intended as a replacement. She said DPH is aggressively exploring options for a Tenderloin site but has not identified one.
- Tom Paulino from the mayor's office participated remotely. He stated that the TLC was always temporary and that DPH is working to identify alternative sites. He could not commit to an extension of services beyond December 4.
- Krista Gaeta, DPH's Tenderloin response director, described a transition plan that includes warm handoffs to other providers, on-site Narcan distribution after closure, and wayfinding for services. She acknowledged that not all services (especially overdose prevention) can be easily transferred.
- Supervisor Mandelman expressed reservations about the resolution, noting that he has other priorities for DPH (such as treatment beds and step-down facilities) and does not view the TLC model as successful in stabilizing the neighborhood. He voted against forwarding the resolution.
- Chair Preston and Vice Chair Chan strongly supported the resolution, criticizing the lack of a replacement plan and urging an extension. Chair Preston asked DPH to specify site requirements (ideal 5,000 sq ft indoor/outdoor space in Tenderloin). DPH indicated current budget could cover a scaled-down site through the fiscal year.
- The committee voted to forward the resolution to the full board with a positive recommendation (2-1, with Supervisor Mandelman dissenting).
Item 3: Closed Session – Settlement of Lawsuit (220729)
- The committee convened in closed session to discuss a settlement regarding Phi Associates (Drisco Hotel) and Swords to Plowshares (loan payoff of $2,000,000). After closed session, the committee reported that an amendment was accepted and the item was continued to the November 17, 2022 meeting. A motion not to disclose closed session discussions passed unanimously.
Key Outcomes
- Item 1 (Ethics Audit Hearing): Continued to the call of the chair. Director Pelham committed to providing a written audit schedule by November 4, 2022.
- Item 2 (Tenderloin Center Resolution): Forwarded to the full Board of Supervisors with a positive recommendation (vote: 2-1, with Mandelman opposed). The resolution urges no gap in services and replacement of the Tenderloin Center.
- Item 3 (Closed Session Settlement): Continued to the November 17, 2022 meeting after an amendment was accepted. No details disclosed.
Meeting Transcript
To order. Welcome to the uh November 3rd, 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 uh Vice Chair Connie Chan, and uh soon to be joined by uh committee member Supervisor Raphael Mandelman. Um the committee clerk is uh Stephanie Cabrera, and I want to thank the team at SFGov TV, including Kalina Mendoza and Corwin Cooley for staffing this meeting. Madam Clerk, do you have any announcements? Yes, thank you. 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 we'll 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 channel 26, 28, 78, or 99, and SFgov TV.org. The public comment call in number is streaming across the screen. The number is 415-655-0001. Again, 415-655-0001. Then enter the meeting ID 2493 481 7808, then pound and then pound again. When connected, you will be in listening mode only, and you'll hear a notice in listening mode only. When your item of interest comes up and the public comment is called, those joining us in person should line up to speak, and those on the telephone should dial star three to be added to the speaker line. If you're on your telephone, please remember to turn down your TV and all listening devices you may be using. As indicated, we will be taking public comment from those attending in person first, then we will go to those on the telephone line. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the government audit and oversight committee clerk at Stephanie.cabrera, CSN Charles A. BS and B 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 comments via U.S. Postal Service to our office in City Hall at 1. 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 of November 15th, unless otherwise stated. And that concludes my announcement. Thank you, Madam Clerk. Please call item one. Item number one is a hearing on the ethics department's mandatory audit process for city candidates and committees receiving public financing and the audit process for lobbyist disclosure statements and to review the performance of the ethics department's audit process to date, including any necessary enhancements of the audit process to ensure the timely auditing of campaigns and the public's right to review reports and requesting the ethics department to report. Members of the public who wish to provide public comment on this item should call 415-655-0001. When prompted, enter meeting ID 2493 481 7808, then pound and pound again. If you haven't done so already, please dial star three to line up to speak. The system will prompt and indicate that you have raised your hand. Please wait until the system indicates that you have been unmuted and you may begin your comments when we go to public comment. Thank you, Madam Clerk. This hearing request is sponsored by Supervisor Peskin, who is with us here today. It's also co-sponsored by our uh vice chair, Supervisor Chan. Um, and so I will uh turn it over to Supervisor Peskin. Thank you for your leadership on this. And uh the floor is yours for any remarks and uh to introduce our speakers. Thank you, Chair Preston, and thank you for calendaring this item. Um I first ran for the Board of Supervisors 22 years ago. Uh there was no public financing and there was no mandatory audits. There were random audits of campaigns. Uh, but now with the advent of public financing, which requires audits on each and every campaign that uh seek and obtain public financing, uh, the number of audits that uh fall upon the ethics department to perform has vastly uh increased. Um as a candidate, uh fortunately successful uh for office that has that believes in public financing, um, which has uh I think had very positive results in diminishing uh outside spending in local uh candidate races and has leveled the playing field.
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