Government Audit and Oversight Committee Regular Meeting - May 4, 2023
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Government Audit and Oversight Committee Regular Meeting - May 4, 2023
The Government Audit and Oversight Committee met on May 4, 2023 at 6:15 PM to consider three agenda items: ordinances adopting memoranda of understanding with San Francisco Firefighters Union Local 798 (Units 1 and 2), a resolution selecting independent auditors, and a hearing on a City Services Auditor report regarding United Council of Human Services (UCHS). All items were approved or filed with unanimous votes.
Consent Calendar
- No consent calendar items were on the agenda.
Public Comments & Testimony
- For items 1 and 2, one in-person speaker made comments about firefighters as "intruders" and one remote speaker (union representative Adam Wood) spoke about the difficulties of mandatory overtime and understaffing. Union President Floyd Rollins also spoke in support of the MOU and highlighted mental health needs.
- For item 3, one in-person speaker made personal comments about the audit firm.
- For item 4, one in-person speaker questioned the decision to cease funding UCHS.
Agenda Items 1 & 2: Memoranda of Understanding with San Francisco Firefighters Union Local 798 (Units 1 and 2)
Discussion
- DHR Director Art Graham presented: fire department staff increased by 3.5%, but still understaffed due to pandemic; 73 retirees and 7 resignations; wage pattern same as police contract; 2% retention pay at year 21; 2% additional holiday pay; Mother's Day and Halloween added as holidays with sick-call restrictions; emergency childcare pilot; total three-year cost $103.7 million. Average overtime per firefighter was $47,000/year.
- Supervisor Chin stated his partner is a firefighter but confirmed no recusal.
- Chair Preston questioned the basis for retention pay and requested overtime data; DHR noted the data.
- Vice Chair Stephanie praised the childcare pilot.
- Supervisor Chan supported the MOU and emphasized mental health.
- Union representatives Adam Wood and Floyd Rollins spoke: contract ratified with some frustration due to mandatory overtime; described ongoing understaffing and need for future support.
Key Outcome
- Motion to forward both items to the full Board of Supervisors with positive recommendation passed 3-0 (Stephanie, Chan, Preston).
Agenda Item 3: Selection of Independent Auditors – Macias Gini & O’Connell LLP
Discussion
- Controller's Office Financial Reporting Manager Carmen LaFranc presented: resolution to select MGO as independent auditor for the controller's office and separately audited departments; not-to-exceed amount $6.8 million over four years (first year $1.7 million), rate locked.
- BLA analyst Nick Menard recommended approval.
- No questions from committee.
Key Outcome
- Motion to forward the resolution to the full Board with recommendation passed 3-0.
Agenda Item 4: Hearing on City Services Auditor Report – United Council of Human Services (UCHS)
Discussion
- Vice Chair Stephanie introduced the hearing, citing concerns about nonprofit contract management and noting $1.4 billion in city social services contracts.
- Controller's Office Director of Audits Mark De La Rosa and Project Manager Amanda Sobrepena presented: audit requested by HSH; found 83% of sampled tenants (24 of 29) not properly prioritized; 66% (19 of 29) had incorrect income calculations; three employees improperly enrolled; $108,000 in tenant rent collected without approval; $30,000 not turned over to fiscal sponsor; backlog of unpaid expenditures. 14 recommendations made to HSH.
- HSH Chief Deputy Director Noelle Simmons presented: UCHS has had multiple fiscal sponsors since 2009; current sponsor Felton Institute took over in October 2022; in March 2023, UCHS lost state charitable registry status, leading HSH to remove UCHS as subcontractor and transfer all services to Felton. Of the 14 recommendations, 5 are no longer applicable, 6 implemented, 3 in process.
- Committee members questioned the long pattern of noncompliance, the selection process for Felton Institute, and the impact on services. HSH noted that two programs are ending soon and federal grants will be reprocured competitively.
- Chair Preston asked about whistleblower complaints (not disclosed) and requested quantification of service delivery impact.
Key Outcome
- Motion to file the hearing passed 3-0. Vice Chair Stephanie indicated she will continue work on legislation to improve nonprofit contract oversight.
Key Outcomes
- The firefighters MOU (items 1 and 2) were forwarded to the full Board with a positive recommendation.
- The auditor selection resolution (item 3) was forwarded to the full Board with a recommendation.
- The hearing on UCHS (item 4) was filed. HSH will continue to support Felton Institute in delivering services and will reprocure federal grants competitively. Vice Chair Stephanie plans to introduce legislation for better contract monitoring.
Meeting Transcript
And comment by email to the government audit and oversight committee clerk at Stephanie S-T-E P H A N I E dot Gabrera, CS in California A, B S N Bay, R E R A at SFgov.org. You may also send your written comments via US Postal Service to our office in City Hall at one Dr. Carlton B. Goodlit, place, room 244, San Francisco, California 94102. If you submit public comment in writing, it will be forwarded to the supervisors and included as part of the official file. Finally, items acted upon today are expected to appear on the Board of Supervisors Agenda of May 16th, unless otherwise stated. Thank you. Thank you, Madam Clerk. Please call items one and two together. Item number one is an ordinance adopting and implementing the memorandum of understanding between the city and county of San Francisco and San Francisco Firefighters, Union Local 798, Unit One. And item number two is an ordinance adopting and implementing the memorandum of understanding between the city and county of San Francisco and San Francisco Firefighters, local Union Local 79th, sorry, 798, Unit 2. For those joining us remotely, if you haven't done so already, please dial star three to be added to the speaker queue. The system prompt will indicate that you have raised your hand. When we go to public comment, please wait until the system indicates that you've been unmuted and you may begin your comments. Thank you. Thank you, Madam Clerk. And before we get started with these items, uh Supervisor Chin. Thank you, uh Chair. I just want to be on the record that uh I do we are a proud firefighter family, and uh my partner has been a firefighter since 2011 and now a fire prevention inspector. But I have confirmed and checking with our city attorney and our deputy attorney Ann Pearson has confirmed that uh I do not need to recuse myself on this decision and um and we'll be happy to support. Thank you. Thank you very much, uh Supervisor Chin. And so we have today uh presenting on this item uh artists uh Graham from uh the DHR, employee relations director, and uh and the DHR team, uh including Steve Ponder and uh Mawuli Tugbenyo. Uh and so we will uh turn it over to you, uh Mr. Graham with thanks for uh the advanced briefing on this and all the work to get this uh this far. Floor is yours. The board. Um we do have an extra DHR member today because Oakland Unified's teachers are on strike, so I got a five-year-old member here, so he may have you know something to add later. So just to be advised. Will he be doing the presentation? Well, you know, he may he may need to be our expert witness on some questions that come up. We'll see. Um happy May the fourth, by the way. All right, so uh thanks again for having us. So what you see in front of you now is the charter factors that we utilize when bargaining with any bargaining unit. We've gone over these before when we met with PO with you about the POA contract. Um, but and they're they're the same. Um and so as you can see here, we look at things like inflation, we look at the wages in other markets, um, etc. And the ability of the city's ability to pay as well. One of the things we looked at with the fire department um is their recruitment and retention. And as you may recall, we had a very similar slide up for um the police department. And so in the police department, you saw we saw a decline of staff of that almost 8%. Here you see that their fire department has been able to increase staff by 3.5%. Um and in both cases, we were not able to run academies or or trainings during the pandemic, so but we had retirements and other reasons why people left. So they were they are both understaffed, and so the fire department is working now uh assertively to try to fully staff up, and as you can see, um we you know have been able to add hires. We still have 73 retirees and seven resignations. So as you can see, the resignations aren't as significant as they were with the POA. So we just had a different set of factors that we were looking at in terms of our current staff level. Here you can see where the city of San Francisco compares in the market of the Bay Area around compensating our firefighters. And as you can see, we do compensate our firefighters well within the marketplace.
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