OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Government Audit and Oversight Committee Meeting - June 5, 2025

Government Audit and Oversight Committee — Thursday, June 5, 2025
BodySan Francisco, California
SessionGovernment Audit and Oversight Committee
DateThursday, June 5, 2025
StatusFILED
Video Record
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0:01

Good morning.

0:01

This meeting will now come to order.

0:03

Welcome to the June 5th, 2025 regular meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors.

0:10

I am Supervisor Jackie Fielder, Chair of the Committee, joined by Vice Chair Denny Sauter and Supervisor Cheryl.

0:17

We also have Supervisor Mahmood joining us today on separate items.

0:22

And I want to thank our clerk Monique Creighton as well as Kalina Suze of SFGov TV for staffing this meeting.

0:32

Madam Clerk, do you have any announcements?

0:34

Yes.

0:34

Public comment will be taken on each item on this agenda when your item of interest comes up and public comment is called.

0:41

Please line up to speak on your right.

0:43

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

0:47

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

0:57

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

1:04

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

1:06

Postal Service to our office in City Hall.

1:08

Number one, Dr.

1:09

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

1:15

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

1:21

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

1:27

Finally, items acted upon today are expected to appear on the Board of Supervisors agenda of June 17th, 2025, unless otherwise stated.

1:36

Thank you so much.

1:37

Madam Claire, please call item number one.

1:40

Yes, item number one is a resolution authorizing the mayor, members of the mayor's office, and the director of the Office of Economic and Workforce Development to solicit donations from nonprofits, private organizations, grant makers, foundations, and other persons and entities for the purpose of supporting the continued economic revitaliz revitalization of San Francisco for six months from the effective date of this resolution, notwithstanding the behest at payment ordinance.

2:06

This item will be referred to the full board as a committee report for consideration on June 10th, 2025.

2:13

Thank you.

2:14

And today we're joined by Executive Director of Office of Economic and Workforce Development, Sarah Dennis Phillip, the sponsor of this item who will be presenting today.

2:23

Ms.

2:23

Dennis Phillips, please go ahead.

2:26

Thank you so much, Chair Fielder.

2:27

Good afternoon, Supervisor Cheryl, Supervisor Sauter and Supervisor Mood.

2:31

Pleased to be for you today.

2:34

So I'm representing the Office of Economic and Workforce Development.

2:38

This ordinance, as you probably note, authorizes not only myself as ED of OEWD, but the mayor, members of the mayor's office, and others to select donations from nonprofits, private organizations, grantmakers, foundations, and other entities for the purpose of supporting the continued economic revitalization of downtown San Francisco for six months.

3:02

There's a pretty long tradition of cities working with private philanthropy to revitalize their downtown areas.

3:10

The ones that are probably most well known is Detroit, who worked closely with the Kresge Foundation, with JP Morgan Chase and other philanthropic efforts to invest heavily in an arts district, in small business incubators, and in affordable housing.

3:35

In New York, a really great example, which hopefully many of us have been to, um, is the Highline, which happened solely through private philanthropy, right?

3:43

A nonprofit supported by the Geraldina R.

3:45

Dodge Foundation and the Rockefeller Brothers Fund, among others.

3:49

Um and then Chicago, another great and very highly visible example is Millennium Park, which was funded by the MacArthur Foundation.

3:56

So I just lay that foundation to say this is not a new idea, although it is a new idea for San Francisco.

4:02

Umtown has been an ongoing focus since this board first understood the impacts of COVID on our office-based downtown environment.

4:11

Since then, and that was about 2022, when I think really an understanding of the transition that we were going through was felt.

4:18

Um we've been working through a transition to change both downtown's activity and perception.

4:24

Um past years to fund some of that work through public funding.

4:30

Last year's base budget, for example, just within OEWD for downtown, um, was larger and it was augmented by a one minimal by a one-time $15 million mayoral enhancement that allowed us to do some significant work like the family-based activations you're seeing at Union Square today, almost every day.

4:50

Um we are not gonna, when I present on my budget to our budget committee on Friday, you'll see that those funds don't exist given the challenges that we have.

5:00

Um given the challenges that we have, um, it's simply not an option to continue that work through public funding.

5:04

We have other priorities.

5:06

Um and so what we're really looking for is can we work with partners to step in and continue the work that we've started and hopefully expand and try new ways of doing it.

5:18

Um the ordinance itself specifically mentions the San Francisco Downtown Development Corporation, which is a 501c3 set up outside the city.

5:26

But to be clear, we are not intending on going to them to ask for money to come to the city.

5:32

Um it is more likely that we'd be going to various corporate philanthropic and other partners to ask for dollars that would go into the downtown development corporation as a place and a home for dollars that could support efforts like public safety, street cleaning, small business support and activations like night markets and festivals, um, among other things, because we also want to continue to be innovative.

5:54

We have some idea of what works, but we certainly don't that's not the scope of where we want to stop.

5:59

Um so the downtown development corp would be more a repository that we'd be soliciting funds to go to where the money could sit and then be expended from.

6:08

There also might be cases where we would ask for dollars to go directly to the project source, um, whether that is an existing nonprofit that we're working with or someone with a new idea.

6:18

Um the what, and I think we, you know, I this is a new idea, it's a pilot.

6:24

Um we definitely are focused on clean and safe efforts like our ambassador programs.

6:29

Um some of the ambassador programs that we're running will run out of money, public money by the end of the year by December 2025.

6:38

Um installation of new trash cans and other methods of public safety, small business support and grants that helps us fill vacancies and continue the success of new small businesses that have started downtown events, cultural activations like those run by Soma Filipinas in the in our Yerba Buena area, um, looking at finding sponsorship and stewardship of key public spaces, like is happening in Union Square Plaza right now and in the crossing, but there may be other public areas.

7:06

Um long term, I think we'd also be interested in placemaking and capital improvements, although the scope of this is about six months, so I think those are probably much longer term efforts.

Discussion Breakdown — Share of Meeting
Public Comment███████████████████████████27%
Parks and Recreation██████████████14%
Community Engagement███████████11%
Economic Development██████████10%
Procedural█████████9%
Public Works█████████9%
Public Finance███████7%
Human Resources████4%
Pending Litigation███3%
Summary of Proceedings

Government Audit and Oversight Committee Regular Meeting – June 5, 2025

The Government Audit and Oversight Committee of the San Francisco Board of Supervisors met on June 5, 2025, at 6:15 PM UTC (local morning) under Chair Jackie Fielder, joined by Vice Chair Denny Sauter, Supervisor Cheryl, and Supervisor Mahmood for certain items. The committee considered ten agenda items, including a behested payment waiver for downtown economic revitalization, a 15-year permit for Golden City Football Club at Kezar Stadium, renewal and expansion of two benefit districts, compensation ordinances for unrepresented employees and SEIU nurses, a retroactive MOU with the U.S. Capitol Police, and a hearing on fiscal mismanagement by the San Francisco Parks Alliance. The committee also approved a performance audit of the Recreation and Park Department and handled several settlement items.

Public Comments & Testimony

  • Item 2 (Kezar Stadium Permit): Multiple speakers expressed support, including representatives from Laborers International Union (Local 261), Connect SF, youth soccer players, parents, coaches, the athletic director of Sacred Heart Cathedral, a business owner (Kezar Pub), and community members. Speakers highlighted the $10 million investment, community benefits, need for a professional soccer team in San Francisco, and positive impacts on youth and local businesses. No opposing public comment was heard.
  • Item 8 (Parks Alliance Hearing): Approximately 20 speakers testified, many representing community-based park stewardship groups (e.g., Stern Grove Festival, Citrous Stewards, Detroit Steps Project, Friends of Alta Plaza Park, Mount Sutro trails, Visitation Valley Greenway, Corbett Heights Neighbors, and others). Speakers expressed anger, disappointment, and urgency, describing lost bequests, halted projects, laid-off staff, and a broken trust. They called for accountability, recovery of funds, and a new fiscal sponsorship mechanism. Several speakers praised the Recreation and Park Department’s professionalism and stressed the need for systemic oversight reforms.
  • Item 9 (RPD Performance Audit): One speaker voiced support for the audit, linking it to the need for trustworthy agencies.

Discussion Items

  • Item 1 – Behested Payment Waiver (Economic Revitalization): Sarah Dennis Phillips (OEWD) presented a six-month pilot to allow the Mayor’s office and OEWD to solicit donations from private entities for downtown revitalization (clean/safe efforts, small business support, cultural activations). The waiver provides transparency via board reporting. Vice Chair Sauter expressed support. Chair Fielder asked about metrics and potential expansion; Phillips noted metrics will be required and expansion could be considered after pilot. Approved unanimously.
  • Item 2 – Kezar Stadium Permit (Golden City FC): Supervisor Mahmood and property manager Hank Heckel presented a 15-year permit (with extension options) for Golden City Football Club to play at Kezar Stadium. The club will invest $10 million in upgrades (new turf, scoreboard, sound system, ADA improvements). Existing community uses (high school football, track, running) are preserved; adult soccer teams limited to one game/year. Chair Fielder raised concerns about impacts on other clubs (SF City, Nighthawks, El Farolito) and Boxer Stadium conditions (drainage, lights, scoreboard, mowing). Mark Rohr (co-founder) emphasized player pathway and collaboration. An amendment was adopted reallocating 38 tickets per game from “underserved communities” to “underserved youth and their families.” Approved unanimously.
  • Item 3 – Unrepresented Employees Compensation Ordinance: Artis Graham (DHR) presented the routine annual ordinance for ~88 unrepresented employees, aligning wages with city pattern. A clerical amendment (adding “close of business”) was adopted. Approved unanimously.
  • Item 4 – SEIU Local 1021 Staff and Per Diem Nurses MOU: Graham explained the second amendment makes it easier for per diem nurses to transition to permanent positions while retaining seniority and shift preferences. Approved unanimously.
  • Item 5 – Capitol Police MOU (Retroactive): Commander Derek Jackson described continuation of 24/7 protection for Speaker Emerita Nancy Pelosi’s residence since January 2024. The retroactive resolution allows reimbursement from U.S. Capitol Police. Approved unanimously.
  • Item 6 – Dogpatch and Northwest Potrero Hill Green Benefit District Renewal/Expansion: Esther Lee (Public Works) presented the resolution authorizing the Mayor to cast affirmative assessment ballots for nine city-owned parcels ($5,983.66 annual assessment, 0.07% weighted vote). A clerical error (0.04% corrected to 4% per MTA parcels) was amended. Approved unanimously.
  • Item 7 – Ocean Avenue Community Benefit District Renewal/Expansion: Jackie Hazelwood (OEWD) presented similar resolution for seven parcels ($19,512.20 annual assessment, ~4% weighted vote). Approved unanimously.
  • Item 8 – Hearing on Fiscal Mismanagement by SF Parks Alliance: Supervisor Walton led the hearing. He detailed allegations that at least $3.8 million in restricted funds intended for community park groups were misappropriated to cover operating costs. The organization has hired a liquidation firm (Jigsaw Advisors) and laid off staff. The Parks Alliance was absent. Walton called for subpoenas for three individuals (most recent CEO Robert Ogilvie, former CEO Drew Betcher, and board treasurer Rick Hutchinson) and production of documents. Chair Fielder and colleagues supported the motion. The committee voted unanimously to issue subpoenas and continue the hearing to the call of the chair.
  • Item 9 – Performance Audit of Recreation and Park Department: Chair Fielder introduced a motion to direct the Budget and Legislative Analyst to conduct a department-wide performance audit in FY2025-2026, noting that RPD has not undergone such an audit in over 10 years. Supervisor Walton co-sponsored. Approved unanimously.
  • Items 10-16 (Settlement of Lawsuits): Items 10-15 (five resolutions approving settlements totaling several million dollars) were forwarded to the full board with positive recommendation. Item 16 (Castagnola’s settlement agreement) was continued to the call of the chair on a motion by Chair Fielder.

Key Outcomes

  • Item 1: Approved and forwarded to full board with positive recommendation (3-0).
  • Item 2: Amended (ticket distribution to underserved youth and families) and forwarded to full board with positive recommendation (3-0).
  • Item 3: Amended (clerical fix) and forwarded to full board (3-0).
  • Item 4: Forwarded to full board (3-0).
  • Item 5: Forwarded to full board (3-0).
  • Item 6: Amended (corrected percentage) and forwarded to full board (3-0).
  • Item 7: Forwarded to full board (3-0).
  • Item 8: Motion passed (3-0) to direct the clerk to issue subpoenas to Robert Ogilvie, Drew Betcher, and Rick Hutchinson for testimony and documents (as per Supervisor Walton’s May 13, 2025 letter), with authority for the chair to set the date. The hearing was continued to the call of the chair.
  • Item 9: Motion to conduct a performance audit of RPD in FY2025-2026 forwarded to full board (3-0).
  • Items 10-15: Forwarded to full board with positive recommendation (3-0).
  • Item 16: Continued to the call of the chair (3-0).

Meeting Transcript

Good morning. This meeting will now come to order. Welcome to the June 5th, 2025 regular meeting of the Government Audit and Oversight Committee of the San Francisco Board of Supervisors. I am Supervisor Jackie Fielder, Chair of the Committee, joined by Vice Chair Denny Sauter and Supervisor Cheryl. We also have Supervisor Mahmood joining us today on separate items. And I want to thank our clerk Monique Creighton as well as Kalina Suze of SFGov TV for staffing this meeting. Madam Clerk, do you have any announcements? Yes. Public comment will be taken on each item on this agenda when your item of interest comes up and public comment is called. Please line up to speak on your right. Alternatively, you may submit 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.C-R-A-Y-T-O-N at SFGL V dot 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. Number one, Dr. Carlton Be Good Lid 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 me before the end of the meeting. Please make sure to silence all cell phones and electronic devices to prevent any interrupt interruptions to today's proceedings. Finally, items acted upon today are expected to appear on the Board of Supervisors agenda of June 17th, 2025, unless otherwise stated. Thank you so much. Madam Claire, please call item number one. Yes, item number one is a resolution authorizing the mayor, members of the mayor's office, and the director of the Office of Economic and Workforce Development to solicit donations from nonprofits, private organizations, grant makers, foundations, and other persons and entities for the purpose of supporting the continued economic revitaliz revitalization of San Francisco for six months from the effective date of this resolution, notwithstanding the behest at payment ordinance. This item will be referred to the full board as a committee report for consideration on June 10th, 2025. Thank you. And today we're joined by Executive Director of Office of Economic and Workforce Development, Sarah Dennis Phillip, the sponsor of this item who will be presenting today. Ms. Dennis Phillips, please go ahead. Thank you so much, Chair Fielder. Good afternoon, Supervisor Cheryl, Supervisor Sauter and Supervisor Mood. Pleased to be for you today. So I'm representing the Office of Economic and Workforce Development. This ordinance, as you probably note, authorizes not only myself as ED of OEWD, but the mayor, members of the mayor's office, and others to select donations from nonprofits, private organizations, grantmakers, foundations, and other entities for the purpose of supporting the continued economic revitalization of downtown San Francisco for six months. There's a pretty long tradition of cities working with private philanthropy to revitalize their downtown areas. The ones that are probably most well known is Detroit, who worked closely with the Kresge Foundation, with JP Morgan Chase and other philanthropic efforts to invest heavily in an arts district, in small business incubators, and in affordable housing. In New York, a really great example, which hopefully many of us have been to, um, is the Highline, which happened solely through private philanthropy, right? A nonprofit supported by the Geraldina R. Dodge Foundation and the Rockefeller Brothers Fund, among others. Um and then Chicago, another great and very highly visible example is Millennium Park, which was funded by the MacArthur Foundation. So I just lay that foundation to say this is not a new idea, although it is a new idea for San Francisco. Umtown has been an ongoing focus since this board first understood the impacts of COVID on our office-based downtown environment. Since then, and that was about 2022, when I think really an understanding of the transition that we were going through was felt. Um we've been working through a transition to change both downtown's activity and perception. Um past years to fund some of that work through public funding. Last year's base budget, for example, just within OEWD for downtown, um, was larger and it was augmented by a one minimal by a one-time $15 million mayoral enhancement that allowed us to do some significant work like the family-based activations you're seeing at Union Square today, almost every day. Um we are not gonna, when I present on my budget to our budget committee on Friday, you'll see that those funds don't exist given the challenges that we have. Um given the challenges that we have, um, it's simply not an option to continue that work through public funding. We have other priorities. Um and so what we're really looking for is can we work with partners to step in and continue the work that we've started and hopefully expand and try new ways of doing it. Um the ordinance itself specifically mentions the San Francisco Downtown Development Corporation, which is a 501c3 set up outside the city.

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