OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco GAO Committee Special Meeting - October 11, 2024

Government Audit and Oversight CommitteeFriday, October 11, 2024
BodySan Francisco, California
SessionGovernment Audit and Oversight Committee
DateFriday, October 11, 2024
StatusFILED
Video Record

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Transcript — Verbatim
0:00

Will come to order.

0:01

Welcome to the October 11, 2024 special meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors.

0:08

I'm Supervisor Dean Preston, Chair of the Committee.

0:11

I am joined by Supervisor Connie Chan.

0:14

The committee clerk is Monique Creighton, and our thanks to SFGov TV for staffing this meeting.

0:20

Madam Clerk, do we have any announcements?

0:22

Yes, public comment will be taken on each item on this agenda.

0:26

When your item of interest comes up in public comment is called, please line up to speak on your right.

0:31

Alternatively, you may submit public public comment in writing in either of the following ways.

0:36

Email them to the government audit and oversight committee clerk at M O N I Q U E dot C R A Y T L N at SFGov.org.

0:45

If you can submit public, if you can submit public comment via email will be forwarded to the supervisors and also include it as part of the official file.

0:53

You may also send your written comments via U.S.

0:55

Postal Service to our office in City Hall.

0:57

Number one, Dr.

0:58

Carlton, Be Good Lit Place, Room 244, San Francisco, California, 94102.

1:04

If you have documents you would like to be included as part of the file, please submit them to myself before the end of the meeting.

1:10

Please make sure to silence all cell phones and electronic devices to prevent any interruptions to today's proceedings.

1:16

Finally, items acted upon today are expected to appear on the Board of Supervisor Agenda of October 22nd, 2024, unless otherwise stated.

1:25

Thank you, Madam Clerk.

1:26

At the outset, I'd like to make a motion to excuse Vice Chair Stephanie from today's uh special GAO meeting.

1:33

Can you call the role on that?

1:34

Yes, on the motion to excuse Vice Chair Stephanie.

1:37

Member Chan.

1:38

Member Chan, I, Chair Preston.

1:40

I Chair Preston I have two ayes with Vice uh Vice Chair Stephanie Excused.

1:46

Thank you.

1:46

That motion passes, and Madam Clerk, please call item number one.

1:49

Yes, item number one is a resolution authorizing the office of the mayor and the Department of Homelessness in Support of Housing to solicit donations from fair from various private entities and organizations to support the expansion of temporary shelter and other homeless services to support people experiencing experiencing homelessness, notwithstanding the beh behested payment ordinance.

2:14

Thank you, Madam Clerk.

2:16

Uh and we have uh director Shereen McSpaden uh of Department of Homelessness and Support of Housing here.

2:24

Welcome, Director McSpadden, and uh you have the floor.

2:29

Great, thank you so much.

2:30

Uh good morning, honorable members of the government audit and oversight committee.

2:34

I am Shereen McSpaden, executive director of HSH.

2:39

I will provide a brief overview of the resolute uh resolution before you today, and I am excited to share some of the progress HSH has made in both building philanthrop uh philanthropic partnerships and exploring new opportunities to support our system of care.

2:55

I'm before you today with the third behested payment waiver for HSH and the mayor's office pertaining to homeless services.

3:03

Before I begin, I want to thank Supervisors Ronan and Mandelman and Engardio for their co-sponsorship of this legislation.

3:12

So the resolution before you today would authorize the Office of the Mayor and the Department of Homelessness and Support of Housing to solicit donations from various private entities and organizations to continue to support the expansion of temporary shelter and other homeless services.

3:29

We currently have a behested payment waiver in place that was approved by the board in March and will expire in Oct on October 17th.

3:37

We're seeking a six-month extension to support continuing critical conversations that have begun since October when the waiver was in place.

3:47

In the past, the department and the office of the mayor have established successful and innovative public-private partnerships to meet the critical needs of people experiencing homelessness.

3:57

The mayor's fund for the homeless is a category eight funds established to receive donations for homeless services with existing reporting to homeless oversight commission and annual reporting to the board of supervisors.

4:11

So I'm not going to spend a lot of time on this slide.

4:16

Um, as I think we all understand the need on our streets.

4:20

However, to provide some context for the public on why this waiver is critical for our department to address the homelessness crisis.

4:28

According to the 2024 point in time count, there were about 8,323 people experiencing homelessness, 52% of whom were unsheltered.

4:38

As of October 2024, HSH had 3,610 temporary shelter or crisis intervention slots with a 92% occupancy rate.

4:48

Um and then our home by the bay strategic plan calls for an investment of resources, including 1,075 new shelter beds to meet the plan's goals, including a 50% reduction in unsheltered homelessness in five years.

5:04

Under the current waiver, we have been in active conversations with philanthropies, including Crankstart Foundation, Tipping Point Foundation, U.S.

5:13

Aging, Schwab Foundation, and Keith Geislin.

5:17

It's important to note that none of these partners are contractors with the department.

5:21

However, the vast majority of philanthropic organizations that fund homelessness also advocate on a local, state, and federal level, and therefore could be considered interested parties under the behested payment legislation.

5:35

We continue to seek philanthropic support and partnerships to support critical initiatives that will meet the needs of unsheltered households across the city that include expanding family shelter, expanding hotel vouchers to address the crisis on the streets, and expending time-limited housing subsidies with education and workforce development.

5:58

And so while I said, you know, we're building what what we've really primarily done is to build relationships with these organizations and to talk to them what about what our critical priorities are.

6:10

Um we have we can say that our relationship with Crankstart has resulted in a grant to Raphael House, which currently HSH has not funded, but which was really in danger of lose of not being able to serve the families they serve because they've really started to get to a point where they've not been able to raise funds on their own.

6:37

So they've always they've never taken city money and they've always raised their own funds, and they came to us early in the year and said, help, we really need some guidance and support.

6:48

And so we were able to work with them, and I think they're gonna be getting some city funding, but we were also able to work with Crankstart and have them come in on an emergency basis to help them get their roof fixed because without that roof being fixed, they you know they were really in danger of not being able to serve as many families.

7:09

So that really helps our system because we are able now, they're gonna be able to increase the number of families that they can bring in, and those families come directly off of our family coordinated entry list.

7:24

So it's it's been really helpful, um, especially given the fact that we have so many families who we know we need to serve.

7:32

We need every single resource that we can use.

Discussion Breakdown — Share of Meeting
Public Safety█████████████████████21%
Audit And Compliance█████████████13%
Homelessness████████████12%
Public Comment████████████12%
Police Oversight███████████11%
Procedural████████8%
Community Engagement████████8%
Pending Litigation██████6%
Procurement██2%
Summary of Proceedings

San Francisco Government Audit and Oversight Committee Special Meeting - October 11, 2024

This special meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors was held on October 11, 2024, at 6:15 PM. Chair Dean Preston and Supervisor Connie Chan were present; Vice Chair Stephanie was excused. The committee considered two agenda items: a resolution to extend the behested payment waiver for homeless services fundraising, and a hearing on the Controller's assessment of invoices for the San Francisco Police Department's contract with SF SAFE.

Public Comments & Testimony

On Item 1 (Behested Payment Waiver):

  • Daniel Jeremiah Hoffman expressed support for public housing but opposed the use of homeless individuals as leverage to coerce private donations, arguing that funds should come from taxation. He also criticized the lack of outcomes in homeless programs.
  • A speaker named Ace (self-identified as a former homeless individual) questioned whether homeless individuals are from other cities and expressed concern about the city's open-door policies.
  • Dennis Williams supported the waiver but called for better conditions in temporary shelters and more involvement of local grassroots organizations and contractors.

On Item 2 (SF SAFE Invoice Assessment):

  • Ace reiterated calls for community reform and criticized corruption within city government.
  • Another speaker urged the committee to direct funding to Black-led community organizations and noted that many nonprofits had misrepresented their work.
  • Daniel Jeremiah Hoffman referenced his recent article on the topic and argued that police-community partnerships can lead to discrimination and concentration of poverty; he offered his expertise to help address corruption.

Discussion Items

Item 1: Temporary Shelter and Homeless Services - Behested Payment Waiver

  • Director Shereen McSpadden of the Department of Homelessness and Supportive Housing (HSH) requested a six-month extension of the waiver (current waiver expires October 17, 2024). She reported that since the previous waiver, the city had engaged with several foundations (Crankstart, Tipping Point, U.S. Aging, Schwab Foundation, Keith Geislin) but only one concrete donation had been secured: $350,000 from Crankstart for Raphael House, a family shelter that had never before received city funds. McSpadden noted that the waiver enables relationship-building and future grants. She also highlighted that the 2024 point-in-time count showed 8,323 homeless individuals, 52% unsheltered, and that HSH has 3,610 shelter/crisis slots at 92% occupancy. The waiver is needed to support the city's strategic goal of adding 1,075 new shelter beds.
  • Supervisor Preston expressed disappointment that only $350,000 had been raised given the wealth of the entities listed, and questioned the lack of an overall fundraising goal. He stressed the importance of transparency and conflict-of-interest oversight. He suggested that future renewals should include clearer goals and metrics.
  • Supervisor Chan asked about efforts to bring in private money for permanent affordable housing, not just shelters; McSpadden replied that conversations with Schwab about transitional housing could flow to permanent housing. Chan indicated her support for the extension but asked for more transparent reporting.
  • The committee adopted an amendment adding a "whereas" clause to reference a memo on philanthropic engagement.

Item 2: Hearing - Assessment of Invoices for San Francisco SAFE

  • President Peskin, the lead sponsor, opened the hearing by noting that the Controller's January 2024 audit had found widespread problems in the SFPD's oversight of its grant with SF SAFE. He criticized the city's culture of tolerating corruption and emphasized the need for robust internal controls and accountability. He stated that subpoenas had been authorized for former SF SAFE board members (Dan Lawson and Tom Yee) and that the hearing would be continued to allow for their testimony.
  • Mark Delarosa (Controller's Office, City Services Auditor) summarized the audit's scope (July 2022 – March 2024) and the single recommendation: that SFPD conduct a forensic look-back at all invoices prior to that period. He confirmed that the six-month follow-up was due October 2, 2024, but that SFPD had not yet submitted a response as of the hearing date.
  • SFPD representatives (Assistant Chief Lazar, Executive Director Catherine McGuire, new CFO Kimmy Wu, and Director of Policy Diana Roche) described the department's internal reorganization after the scandal. They stated that they had requested a full audit from the Controller but only received a limited assessment; that they have since hired a new CFO and are creating a Neighborhood Safety Team to continue the legitimate work SF SAFE had performed. They admitted to staffing shortages in fiscal oversight previously. McGuire claimed that an extension to respond to the audit recommendation had been granted until October 11, 2024, and that the response would be submitted after the hearing. President Peskin challenged this, noting that the Controller's office had not been informed. The department outlined new internal policies: using Controller standards, requiring detailed documentation, and implementing joint monitoring for multi-agency nonprofits.
  • OEWD Executive Director Sarah Dennis Phillips explained that OEWD had two contracts with SF SAFE, that their review found no fraudulent invoices, but that SF SAFE had failed to pay about $78,000 to employees and two sub-consultants. She confirmed that OEWD had withheld $83,000 in payment and is seeking a legal mechanism to compensate workers.
  • Supervisor Chan requested copies of the grant agreements, amendments, RFP scoring sheets, and performance audit reports to understand the history of the contract and how SF SAFE repeatedly won bids.
  • Supervisor Preston asked about the status of the crime prevention services previously provided by SF SAFE; SFPD confirmed they are now handled in-house by a single retired officer and an email (neighborhoodsafety@sfgov.org), and plan to hire more staff if budget allows. Preston requested periodic reports on service delivery.
  • President Peskin made impassioned remarks about the need to change the culture of corruption and called for all departments to proactively address red flags. He noted that the District Attorney's complaint (July 2024) showed that SF SAFE's board had been warned by three different auditors since 2019, yet SFPD and OEWD did not act.

Key Outcomes

  • Item 1: The committee voted 2–0 (with Vice Chair excused) to adopt the amendment and forward the resolution to the full Board of Supervisors with a positive recommendation.
  • Item 2: The committee voted 2–0 to continue the hearing to the November 7, 2024, GAO meeting, at which time subpoenas for former SF SAFE board members Dan Lawson and Tom Yee will be returnable. The Controller's Office and SFPD will provide status updates on the delayed audit recommendations. The City Attorney's office was directed to issue the subpoenas.

Meeting Transcript

Will come to order. Welcome to the October 11, 2024 special meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors. I'm Supervisor Dean Preston, Chair of the Committee. I am joined by Supervisor Connie Chan. The committee clerk is Monique Creighton, and our thanks to SFGov TV for staffing this meeting. Madam Clerk, do we have any announcements? Yes, public comment will be taken on each item on this agenda. When your item of interest comes up in public comment is called, please line up to speak on your right. Alternatively, you may submit public public comment in writing in either of the following ways. Email them to the government audit and oversight committee clerk at M O N I Q U E dot C R A Y T L N at SFGov.org. If you can submit public, if you can submit public comment via email will be forwarded to the supervisors and also include it as part of the official file. You may also send your written comments via U.S. Postal Service to our office in City Hall. Number one, Dr. Carlton, Be Good Lit Place, Room 244, San Francisco, California, 94102. If you have documents you would like to be included as part of the file, please submit them to myself before the end of the meeting. Please make sure to silence all cell phones and electronic devices to prevent any interruptions to today's proceedings. Finally, items acted upon today are expected to appear on the Board of Supervisor Agenda of October 22nd, 2024, unless otherwise stated. Thank you, Madam Clerk. At the outset, I'd like to make a motion to excuse Vice Chair Stephanie from today's uh special GAO meeting. Can you call the role on that? Yes, on the motion to excuse Vice Chair Stephanie. Member Chan. Member Chan, I, Chair Preston. I Chair Preston I have two ayes with Vice uh Vice Chair Stephanie Excused. Thank you. That motion passes, and Madam Clerk, please call item number one. Yes, item number one is a resolution authorizing the office of the mayor and the Department of Homelessness in Support of Housing to solicit donations from fair from various private entities and organizations to support the expansion of temporary shelter and other homeless services to support people experiencing experiencing homelessness, notwithstanding the beh behested payment ordinance. Thank you, Madam Clerk. Uh and we have uh director Shereen McSpaden uh of Department of Homelessness and Support of Housing here. Welcome, Director McSpadden, and uh you have the floor. Great, thank you so much. Uh good morning, honorable members of the government audit and oversight committee. I am Shereen McSpaden, executive director of HSH. I will provide a brief overview of the resolute uh resolution before you today, and I am excited to share some of the progress HSH has made in both building philanthrop uh philanthropic partnerships and exploring new opportunities to support our system of care. I'm before you today with the third behested payment waiver for HSH and the mayor's office pertaining to homeless services. Before I begin, I want to thank Supervisors Ronan and Mandelman and Engardio for their co-sponsorship of this legislation. So the resolution before you today would authorize the Office of the Mayor and the Department of Homelessness and Support of Housing to solicit donations from various private entities and organizations to continue to support the expansion of temporary shelter and other homeless services. We currently have a behested payment waiver in place that was approved by the board in March and will expire in Oct on October 17th. We're seeking a six-month extension to support continuing critical conversations that have begun since October when the waiver was in place. In the past, the department and the office of the mayor have established successful and innovative public-private partnerships to meet the critical needs of people experiencing homelessness. The mayor's fund for the homeless is a category eight funds established to receive donations for homeless services with existing reporting to homeless oversight commission and annual reporting to the board of supervisors. So I'm not going to spend a lot of time on this slide. Um, as I think we all understand the need on our streets. However, to provide some context for the public on why this waiver is critical for our department to address the homelessness crisis. According to the 2024 point in time count, there were about 8,323 people experiencing homelessness, 52% of whom were unsheltered. As of October 2024, HSH had 3,610 temporary shelter or crisis intervention slots with a 92% occupancy rate. Um and then our home by the bay strategic plan calls for an investment of resources, including 1,075 new shelter beds to meet the plan's goals, including a 50% reduction in unsheltered homelessness in five years. Under the current waiver, we have been in active conversations with philanthropies, including Crankstart Foundation, Tipping Point Foundation, U.S. Aging, Schwab Foundation, and Keith Geislin.

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