City and County of San Francisco Thursday, October 25, 2018

>> good morning and welcome to the special government audit and oversight committee for thursday

, October 25th. I would like to acknowledge our vice vice chair, supervisor erin peskin and.

Committee member, supervisor valley brown and recognize our clerk. I would like to recognize staff

at san francisco government T.V. Michael and samuel for ensuring our meetings are available to the public on line.

Do you have any announcements? >> and cherry of silence your cell phones and electronic devices. Your completed speaker cards and copies of documents to be included as part of the file

should be submitted to the clerk items acted upon today will

appear on the November 13th, 2018 board of supervisors agenda unless otherwise stated. >> thank you so much. Can we please call items number 1 and 2. >> agenda item number 1 is a hearing of the purpose of conferring with and receiving

advice from the city attorney regarding existing litigation in which the city as a defendant

filed off every 21st, 2018 in supreme court. The case entitled sampson et al.

Versus the city and county of san francisco. It involves an employment dispute. Item number 2 is a hearing for the purpose of conferring with

receiving advice from the city attorney regarding anticipated litigation in which the city

would be a defendant based on a significant exposure to litigation with the central soma special tax district.

>> thank you so much. Before we take a motion to convene into closed session, we will open up for public comment

on items number 1 and 2. Seeing none, public comment is

closed close on these two items. Colleagues, can we take a motion to convene into closed session? >> so moved.

>> we can do that without objection. Members of the public, we ask if

you can exit the room for closed session. We will convene on item number 1

and 2.

[Please Stand by]T of people wear a lot of different hats.

Everyone is really adept not just at their own job assigned

to them, but really understanding how their job relates to the other functions, and then, how they can work together with other functions in the organization to solve

those problems and meet our core mission.

>> we procure, track, and store

materials and supplies for the project here.

Our real goal is to provide the best materials, services and

supplies to the 250 people that work here at hetch hetchy, and turn, that supports everyone here in the city. I have a very small, but very

efficient and effective team. We really focus hard on doing

things right, and then focus on doing the right thing, that benefits everyone. >> the accounting team has several different functions. What happens is because we're so remote out here, we have

small groups of people that

have to do what the equivalent

are of many people in the city.

Out here, our accounting team handles everything. They love it, they know it inside out, they cherish it, they do their best to make the system work at its most efficient. They work for ways to improve it all the time, and that's really an amazing thing.

This is really unique because it's everybody across the board. They're invested it, and they do their best for it.

>> they're a pretty dynamic team, actually. The warehouse team guys, and

the gals over in accounting

work very well together. I'm typically in engineering, so I don't work with them all day on an every day basis. So when I do, they've included

me in their team and treated me as part of the family. It's pretty amazing. >> this team really understanding the mission of the organization and our responsibilities to deliver water and power, and the team also understands that in order

to do that, we have a commitment to each other, so we're all committed to the

success of the organization, and that means providing excellent customer service to

each other so that we can

succeed

>> The Hon. London Breed:   all right. >> we need a bigger room. I want to say thank you so much for being here.

I am london breed, mayor of the

city and county of san francisco.

I amay excited to be home at the

african-american art and culture complex.

Thank you to the co-directors who are

managing this beautiful

facility. You know, this is my dream

because I I wouldn't be standing here if it weren't for an opportunity when I was in high

school.Fo

when I was 14, I signed up for

the mayor's youth, employment, and training program.

It was my first job where I got

my first check, first paycheck,

and I see jeff maury, he signed my first paycheck. He always remember the signature on your first paycheck, and I was really fortunate because I

grew up in this community and of course there were a lot of challenges, and there continue

to be a lot of challenges, and I was fortunate because I was given an opportunity to work at the family school where I learned how to answer the phones. And one of the first days that I

started, I answered the phone, hello? And the person who was in charge of the administration at the family school said no, london, that's not how you answer the phone.

You need to say, hello, this is

london breed, you're calling the family school. How May I help you?

What a big difference, right?

and I thought wow. What a big difference.

The thing is like mignon, and

cal, there were people who were

incredible mentors, and they supported me anden encouraged me,

and I ended up going to college, and I ended up going to college because they told me I could do it. Me provided me with an opportunity.

And I'll be honest. It kept me out of trouble

because at that time, my grandmother was raising me, I lived in plaza east, public housing. We didn't have a lot of money,

and it was basically easy to go

down to the tenderloin and sell drugs.

And you know rudy, from united players, exactly what I'm talking about. The point is, I was given an opportunity and things turned out okay with me.

But too many young people in our city are not given that same opportunity. Some of you all know my story about my family, and I wish some of them were here with me today. My brother, unfortunately, wasn't given an opportunity, and

he's still incarcerated, and I

think what a difference a program like this could have made.

I think about my sister who had an opportunity to participate in this program, but unfortunately, she lost her life.

And so when I think about what I can do better in the city, it's not basically continuing to

allow the experiences that I had growing up in san francisco to be normal. We are here to change what is

normal for young people in san francisco. [Applause]

>> The Hon. London Breed:   so

when I served as the after man

american art and culture complex executive director, yes, I paid our kids. Not because I was trying to bribe them or anything to stay in the program, but it's because I wanted to open the doors of opportunity for them. I wanted them to know what the center was about, I wanted them to be a part of the center, I wanted them to be safe, I wanted

them -- to expose them to incredible opportunities that exist all around san francisco,

and I'm really so proud of so many of them who are now adults and doing their own thing and

working hard. I know some of the kids from

project -- I keep saying kids, but they're adults, from project

level, are here, and you're going to here from a couple of them.

The point is it's about making sure that what is normal and

what we've experienced in the

western addition and places like

the bayview, we want to change that.

Do I want to be the C.E.O. Of this company, or do I want to

start my own business, making my own products? Do I want to go into marketing, do I want to create commercials?

Do I want to be mayor?

Do I want to work for the city? I want this to be normal opportunities that people -- young people in this city look forward, so we have to open the

door. We have to make sure no young kid is left behind. It has to be something that we make mandatory in san francisco,

so that's why one of the -- this

is drk-I'm so excited, I don't know what to do right now.

But we have about 5,000 slots

now for paid opportunities for young people in san francisco, and today, we're announcing that

we're increasing that to 8,000.

We're adding another 3,000 slots. [Applause]

We have still a long way to go because in our high schools in san francisco, we have about 16,000 high school students, and I want to make sure as soon as a high school student hits 9th

grade, that they have an opportunity for a paid

internship from 9th grade all the way to 12th grade.

That's what this program is about. [Applause] >> The Hon. London Breed:

opportunities for all means that we leave no kid behind. And here's the thing.

1,000 of those slots will go to some of our most challenging kids to work with. As sheryl davis and I, who worked in this community with some of those young people, we

know what it is -- oh, we got

some of them here today. You know, sometimes -- and let me just be clear, not everyone

has a mom and a dad at home.

Not everyone has even a support network at home.

I was really, really lucky.

Even though my grandmother was older, she didn't still mess

around, but so many young people when they would come into the african american art and culture complex, they didn't even have lunch at school. They didn't have access to things.

They didn't have that support system, somebody telling them they could be anything they wanted to be.

If I can come out of O.C.

Projects, out of control projects, live there over 20

years of my life in some of the

most challenging of circumstances, and no one came to my neighborhood. If I can come out of that and be mayor of san francisco, these kids in this city can do

anything they want to do. [Applause] [Applause]

>> The Hon. London Breed:   so I am putting companies on notice

because this is not just the city, this is not just going to be just the department of

children, youth, and families and the mayor and umm coming up with funding, these are going to be

making sure that all cities in san francisco provide financial support, provide slots for our kids, they have to open the doors, the doors to opportunity. Everyone has a plan of what they

think should be done, and I'm

putting down -- I'm putting down

the -- the plan that I am pushing forward today that I

know effectively can work if the doors are open.

And so sheryl davis who is the

director of the human rights commission here in san francisco

who I -- again, we worked with young people in this community

for many, many years, and I'm

really proud of the work that we've done. Because now, those young people appreciate us, they appreciate

the work that we did, but it was

really about making sure that

when they became adults that they were living good, productive lives where they can take care of themselves and hopefully eventually give back and support others and lift

others up in the community. That's how we are going to change the normal. That's how we are going to make a difference. That's how we are going to make sure that we are going to more college graduations than funerals. That's how we are really going

to make san francisco a better place. You know, yesterday, I was down in the tenderloin, talking to some folks down there, and I ran

into a lot of people who I've -- I've known for so many years

when I was a kid -- friends,

friends moms, and other people who are struggling, and I don't

want that to happen to the next generations of san franciscans, young people growing up in this city.

So I am committed today to adding these opportunities so

that no child is left behind.

And I am looking forward to the work that I know we all are

going to do together to make

sure that every hol student igh school student in san francisco has a

paid internship. That is the start of this

program today, and I am so

excited in partnering with so many people to make this possible.

Lastly -- I can go on and on, as you know. Politicians. I just remember when I was

fortunate enough at age 14,

which wasn't that long ago, when I was fortunate enough to be given an opportunity to work and to get a paid internship

opportunity, I remember so many

people who I worked with that didn't have that same opportunity. I was lucky, I was glad to get a slot.

So we want to do summer, but the

reason why I felt empowered is because the place that I worked, the family school, they really liked me, and they decided to

keep me year-round, and they

got -- they figured out a way to help get it paid for.

So yes, ultimately, we want summer internship opportunities, and we want to support young people with these opportunities,

but we want to make sure that year-round opportunities exist.

We want to continue to work with

our school district and shamman walton, who's with the school district is here today. I want to make sure there's a

way to work with our school districts so young people get

credit for these opportunities, as well. I want to continue working with

city college to kids get college credit in high school. Again, this is about providing

opportunity, changing what is normal because if we don't start now, if we don't start working and fighting for young people

now, then we only have ourselves to blame when they don't succeed, and that's what today is about. So I have everybody here.

A lot of great people to talk.

The workforce -- economic and workforce development director,

joaquin torres is here. [Applause]

>> The Hon. London Breed:   the department of children, youth,

and families director is here,

maria sue is here, and the guy

that's going to make sure that

everybody in the city, grownups

and kids get jobs, is josh arce. So today is an exciting day in san francisco.

It is really a dream come true,

and I can't wait until we turn

no child away from an opportunity to work, to learn,

to grow, and to be successful in the city and county of san francisco.

With that, I'd like to introduce sheryl davis to talk a little bit about what we plan to do as

it relates to this program. [Applause]

>> first, I'm just going to ask everybody to give another round

of applause for mayor breed. [Applause] >> I will say the work that I do and I've done in community, I blame it all on mayor breed because every time she comes up

with an idea, she's like we've

got to do this, and she means

we, like let's do it together. And when she said she wanted to

do opportunities for all, when she said she want today ed to do all

this life, I asked him if she

remembered that one summer years

ago when channel, anjenette and

four other young people -- she hobled together this group of

young people, and she said, we've really got to make opportunities for them.

Channel went to san jose state. Anjenett has been

anjenette has been toiling and working in the community, and

now she's working in the community.

Mayor breed is scaling that working in community to make sure it's not just that same group of kids, but that everybody has access and an opportunity. Part of what I'm going to do first is the call to action.

There are young people in here right now. We need to have a better understanding of what you need

and where the gaps are and what kind of experience that you've had. We're going to be surveying and asking people to step up and to apply and to form that. Two, the chamber is

represents -- I know laura and

graeg here -- we're trying to ask businesses to actually commit to doing all the different things, whether you take somebody at the entry level who's never had a job, who maybe doesn't have the best attitude,

but you give them space to work in there, but at the same time, we're asking you to put people on your payroll and give them a job.

But that's one thing, if you can't do that, you can give money.

You can pay for someone to work, and then, we really need or service providers to make sure we're getting young people

ready, and if they're not ready

to go to google or to go to a law firm, or google, that we're creating safe places in the

community, a network, where they

can get a job, they can get a check. We need to be able to say san

francisco wants to hire young people. Let's get them ready. So everybody here, there's something for you to do after.

Just to speak to how this really

works, and how beyond just doing

it for a summer, I want to

invite up the best example of

this work. Dethon jones

deanthony jones is going to come

up and talk about this. >> thank you, cheryl. I just want to say really quickly, I just want to thank

you, mayor, for for leadership in this process.

I, too, had my first paycheck

signed by jeff maury, and what

is.

>> we are back in open session. Announcement force the closed session.

>> during the closed session the committee voted unanimously to file item one and to continue

item two to the call of the chair.

>> I would make a motion not to disclose.

>> we have a motion to the to disclose.

We can do that without objection.

Mr. Clerk, can we please call items five and six out of order.

Then we will go back to item

three. >> item five declaring the

intent of the board of

supervisors to tech district

2018-1 for central SoMa.

Item 6 resolution declaring

board of supervisors to incur bonded indebtedness and other

debt for special tax district 2018-1 and determining other related matters.

>> thank you. Is the senior planning

department are here to provide a

very brief presentation on you the item.

We have anna the director of

office of public finance to

answer any questions.

>> thank you.

>> good morning, supervisor, lisa chen, with the planning dent.

If I could get the overhead. Today's presentation will

include a brief overview you

have public benefits package and

detail on the central SoMa special tax district to fund these benefits.

As we mentioned we are joined

from staff from office of public

finance who have been

instrumental in developing this

and are available for questions.

>> the items include two resolutions of intent.

The first is to establish the

special tax district including

general categories of facilities

and services to be funded abincludes a document to outline the specific method of applying

the tax and form agreement that

project sponsors would complete.

The second establishes the city

will incur indebtedness. These are first official actions to establish the special tax district. When approved they will be an additional board hearing which

is to be scheduled.

Since the plan is such a complex

interry lated set of legislation

this is the table of contents.

It includes general amendments

and planning code and admin code

and zoning amendments and program document that describes the action to realize the plan.

I want to highlight that today

that the implementation document

including the public benefits

program which is under review.

I have submitted a list that describes that as part of the

record today for your reference. The plan also including special

tax district which including in addition to the roi before you

today amendments to the city's special tax financing law.

And the inclusion of housing

sustainabilities district to

create a review process under

the california assembly bill 8073.

The benefits program is one of the greatest strengths.

We are creating such a great deal of capacity for development in the area means generating

significant funding for public benefits. There is a three prong strategy

to get there. Changing zoning to accommodate

significant demand for housing

and jobs through taxes and other requirements.

We will build upon and enhance what is great about SoMa.

You May have seen the slides before.

They show the man paged growth we expect to see. This is existing conditions and

this shows the plan at buildout.

Total space for 320050 jobs and

8600 knew housing units

62 million feet of growth.

$2.2 billion in public benefits

over the life of the plan of 25 years.

Existing as well as new funding sources listed here.

It represents the single largest source of funding that would accrue to the city.

This shows the same public benefits package by category

with the second indicating the

catted goes to be funded.

The more detailed list of

projects is in the implementation document. This is shaped by extensive process over the last eight

years at dozens of public events and hearing.

It is a broader range of

community uses and benefits any other plan.

It including environmental

sustainability and neighborhood stabilization which would be

funded by the cfd. The next part of the plan

focuses on mechanics of the presentation.

This is the future annexation map.

It ask an all annexation district.

New projects subject to the tax will annex the district before the buildings are occupied.

This includes a boundary larger

than the plan including the downtown c-3 district as far

north as market street.

This was expanded in response to feedback that we should consider the longer term capital needs at

the gardens in the area that is set to expire. However, the plan itself only considers annexation of property

in the central SoMa plan and

if they choose to levee tax they

would need separate legislation,

da or other agreement.

Further, the central solve macfd

would not apply to every parcel.

As specified in the document or

rma it would apply to large

condos and nonremember projects -- nonusual projects.

Rental housing and community

facilities would be exempt.

Annexation worryquired before --

with be required and it would chins the next fiscal year.

It provides ongoing funding to bond against in contrast with impact fees in waves.

This allows us to accelerate the

public benefits to ensure the infrastructure is in place. The city would have the right to

sell or foreclose on properties that fail to pay the tax to

limit the financial risk.

In terms of bonded capacity,

once the plan is built out we

anticipate $85 million per year.

The anticipated bond issuance would depend on timing.

We expect the earliest 2023 to

2027 pending approval of the

district determining there is

capacities to support the debt

and board approval. We do anticipate the city might choose to bond every five years

as revenues and capital benefit plans dictate.

If the city decides to amend upward it would require a

property vote.

Every parcel is assigned to a

fitier depends on the increase.

These are startingtor 2018 to --

for 2018 to 2019.

This is a facility tax to be

spent on capital as well as

services including maintenance.

After 99 years the tax drops by

75% and becomes services will no longer fund capital projects.

There are two sets of rates displayed here.

Land use and transportation on

monday supervisor kim introducerd amendments.

It means that tier b would no

longer be subject to the tax and residential projects would pay

tax of $2 per square foot.

These were approved by committee would need to be amended in the

ro I's which is in the red

line copy before you.

The rationale is to lower the

ongoing cost to provide housing

to make housing more affordable

in the long-term.

Supervisor kim introduced the

amendment to lower from 40,000

to 25,000 gross square feet.

It is revenue neutral. $2.2 billion over 25 years.

This is a map which corn

korresponds with where we expect it do hospital. It is over time.

One through 99 the base raise

will escalate 2% annually. Once an individual project is in

the district if it is nonusual

it will escalate 4% then 2% after that. Residential projects continue to

escalate 2% per year as capped by state law.

After the transition to services

only the rate drops 75% and will

be escalated by consumer price

index or 5%, whichever is lower.

Here is the cfd expenditure plan.

I will note the public benefits is anticipated for the first 25

years we do know there will

continue to be expenditure needs

beyond that and the cfd has a

term of 99 years for capital.

We know there will be needs such

as sea level rise adaptation and other capital needs. These would be decided through a

future planning process which we will describe shortly.

The city would have the option

to lower tax rates should it

decide the funding is no longer needed.

you May be wondering the difference between the amount we

have been saying the cfd when raise $350 million in funding

versus the roi before you which would authorize the city to bond

essentially up to $5.3 billion in debt.

This is an explanation how those figures are related.

Public benefits is based on 25 years of funding.

It makes this assumption that

75% will be built out built on experience from other neighborhoods.

Some parcels will not build or May not build to full potential.

It assumes we have overlapping bonds every five years to get

the infrastructure sooner.

Not to speed bond -- exceed bond

amount is in the other direction

we want the debt to the maximum so the city can have the full

range of potential revenues.

100% of development is built out

instead of overlapping bonds, it assumes the bonds are sequentially one after the other to generate higher funding over a longer period.

As I mentioned it includes 99

years of funding.

Finally, it accounts for inflation. $5.3 billion would never be adjusted upwards.

This accounts for that.

Here are the administration entities responsible for

programming the tax revenues.

Similar to impact fees cfd is

through capital planning.

The planning committee would oversee the five year plans which are approved by the board.

The office of public finance will develop the revenue projections and

and oversee

administration with board oversight. Implementation committee will

play advising role to develop

the plans and finally the community advisory committee

will provide public oversight. We also want to highlight the

public benefits program

anticipates collaboration with

noncity agencies.

$160 million in cfd to improve

transit service to include things like bart station

capacity improvements and funds

for downtown extension of caltrain.

They will be required to enter into the joint agreement to

spell out how funds are used and

require approval of board. This concludes staff presentation. This is a summary of the actions before you today. Thank you, and staff are

available for questions. >> I don't see any questions

from our fellow colleagues so at

this time I open up for public

comment on items five and six.

>> hello, supervisors.

I am ace on the case.

Case means community assistance, service enterprise.

We going to make money.

You talk about this stuff that I

have seen decade after decade.

Somebody is talking about the fracture future.

You are talking about 99 years lease.

20 years and all of this. Ain't no one in you this

building going to be alive for

to lies you are creating.

I am ace, damn it. I am the founder of case.

I am the scarf out-migration. the current government I was with him.

I made him look like a rock star.

Here we are in the city by the bay.

With all of these plans for people that is not around here. You are making plans with people.

Me as a black man in the community we ain't going to be nowhere around. That don't include us.

I am here advocating to try to communicate.

I am telling you all wait. I know you ain't going to pay no attention to me.

On that tv I will be like trump.

I ain't a church.

I ain't rich and I ain't full of shit. Don't get mad.

You had supervisors youing the "f" word.

The of the used words. Ladies and gentlemen, ace on the

case waiting for the letter from the department of real estate is

banned from the pressroom for life.

You know that makes me feel my life is in jeopardy.

That had to come from somewhere.

That came from simply willy, willy brown.

>> thank you so much.

We have many more items for you to speak at.

Thank you so much, ace.

Any other members of the the public to comment.

I would like to adopt the

amendments as articulated by Ms. Chen during the presentation.

Can we take a motion? I don't believe I made a motion. >> I will move it. >> we have a motion.

Can we do that without objection?

These are substantive.

They require continuance to the

next committee meeting.

>> November 7th. Thank you million

Ms. Chen for be being here today.

We will continue these items.

Can you please call item three.

>> Clerk:   item three hearing to consider the allegations of

sexual harassment and sex discrimination in the fire

department and city's policies

and practices for responding to

such allegations.

>> thank you so much, Mr. Clerk.

This committee has been in conversations about allegations

of sexual harassment and discrimination in the fire department.

It was initiated by a settlement this committee heard

last month, and we have had several subsequent conversations both with our fire department and our fire chief.

We want to acknowledge and thank her for coming to the closed session hearing.

I want to acknowledge that our

director of human resources and equal opportunities are here to

attend this hearing.

Due to the conversation that

have occurred at closed session,

colleagues and I have decided we

will not fully hear this item. I want too make some remarks.

I want to speak on behalf of the

commit de and earl -- committee

and several members how

disappointorred we were this

continues to occur during the san francisco you fire department.

i continue to hear about the culture at the fire department

not as inclusive as it could be.

Not to single out one department

this is an overall issue we as a nation continue to struggle

with, but actions like this are completely unacceptable

regardless of the reasons or motivations why they occur.

I want to say that part of my motivation in wanting this

hearing is not just a single settlement in hearing other

things that deeply disturbing me

as a woman policymaking and

noting a few years back reading that the firefighter's union

kicks off the annual toy drive which is a great charitable

cause that I highly commend and

I am so glad the fire department

undertakes every single year and provides toys to so many

children around families used to be held at strip clubs in san francisco. If you are a member of the fire

department and want to support a

good cause female or male you

had to know to the strip club to attend the events.

They have moved away from the tradition or practice.

I think this is the type of city activity that cannot beacondoned.

I understand it is not the department that hosts these and it it is the union.

I want to be on the record to express my disgust and hope that this practice and tradition changes in the future.

It is not acceptable.

Colleagues if you want to make

any comments, I will allow Ms. Callanan to say a few words if she is still here. i don't see here.

If you want to say a few words

and we will open up four public comment on this item.

>> I think you expressed the

sentiments of this committee and

I associate myself with your you comments.

>> at this time we open for

public comment on item number

three. >> years ago.

I am like trump, I am no chump.

I am banded from the pressroom.

Since you are the audit

committee, uppropping I and you moderate. You better get together and solve it.

What I am talking about is

racism.

Racism in the city.

Particularly, on the black american.

I am not an african-american. Don't lump my with jessie

jackson to fill his pockets.

I am a black american.

Therefore, in the 20th certainty tree I will try to make this change around.

If you took african-americans immigrate you go to the country

and city, our population would

be lower than 6%.

It would be down to 2%. Insignificant.

They don't give a damn about the black folks in the city by the bay.

Listen to what I have to say.

I am tired of it I am victimized.

You think I jumped here from

space because my name is ace.

Community assistance, service, enter enterprise.

We are going to make money. I will give the younger generation the blueprint. I am at city bay by the bay.

I will tell you what I have to say.

I all asking respectfully and I will relay that. I have 18 seconds.

I know how to work this thing

now. I am ace on the case.

Don't look at me like I am Mr. Mcgoo. I know what die.

I am on a mission.

>> thank you.

>> thank you.

So on a -- tangential topic. I am really excited to finally hear our government audit and oversight committee.

The report of the safer school

sexual assault tax -- task force this is a report that our office

had requested.

A little over a year and a half ago. Working in conjunction with the

san francisco district attorney 's office. As well as a san francisco police department.

In terms of what we can do,

walking with -- working with instant -- higher educational institutions here in the city and county of san francisco to

streamline the process by which those that have experienced assaults and sexual assaults can report these crimes in a safe

manner and in one that is

respectful. I do want to state that I think

we really have come a long way

and I am very excited in particular about the university

of san francisco's leadership role in assisting those that want to come forward on their campus.

but we have have a role in making sure that everyone feel safe. In understanding how difficult

it is to move through several parallel processes within a university campus or higher education institution but also

the city and county's process through the district attorney and our police department and figuring out how we can make

this a more friendly system for everyone that utilizes it.

I want to recognize julia weber who is a consultant and staff

member for the sexual assault

task force and the women's policy director for the san francisco department of the

status of women who will be presenting on this item. I want to recognize the director

of the department who is also here today.

Of course, I want to thank all the members of the task force

for spending a year to craft

this report with best practices

and recommendations to the city and county.

I want to thank you for your patience in finding a time for us to schedule this item to be heard. Thank you, so much.

Ms. Miss weber.

>> I will start out. Good morning, supervisors. I'm the women's policies director. I want to thank supervisor kim for sponsoring the legislation

that created the sexual assault

task force. I'm really excited to prevent -- present the findings of our report. We will risk present the first part on the findings and I will present the recommendations that came out of the task force. I want to thank the members of the task force who were able to

be here today.

Along with our favourite dog, pink who is always a delight at

meetings.

I will let julia start. >> good afternoon, supervisors. Thank you for hearing us today

and thank you supervisor kim for sponsoring the legislation. The task force was established

by an ordinance that was passed

in April of 2016. I am julia weber. I'm the consultant who was

brought on board through the department on the status of women to assist with this project. I was very privileged. We are bringing up -- I think we

have a note that the ordinance

to work with the ten members of the task force who were appointed by the board to carry

out the expectations that were articulated in the ordinance. The focus was on higher

education. The colleges and universities in san francisco.

I want to point out how unique

this approach was as far as I found through my research.

This is the only time a city government asked for recommendations about what you

could do to effect change in this area through the

educational institutions that do business and provide education

for our students at that level of college and university in san

francisco. It is the first time that hit this has happened. At the municipalities have worked on the issue, but not

with the same type of leadership that you establish with the ordinance on the task force.

I wanted to note that. I have spoken nationally about this at conferences. And conducted quite a bit of

research on the topic. Kudos to you for doing that. The task force members who are

appointed, there are several here today. They were tremendous

representing a broad cross-section of folks who work

in the field in san francisco.

One of the learnings that we

encountered was that you had the foresight to include a survivor

seat on the task force which was tremendous.

The voices of survivors were really key to our efforts.

One of the things we will point out, however is pointing that position, they had to go through the same process that you

usually have to go through, which includes applying and then presenting publicly.

We did get some feedback that for survivors to have to go through that process where there is a certain amount of competition and sharing their story publicly, there were

challenges around that. So it is helpful to be thinking about how we can be most effective in including survivor

voices in developing our processes or establishing taskforces or commissions or

setting up position so we can ensure that we have survivor

voices included in a way that really reflects concerns about

going public and privileging some voices over others.

but we were lucky enough to have not only these ten

representatives and members of the task force but at each

monthly meeting, we had survivors who attended and other members of the public and experts.

That was terrific. We know that the problem is

significant.

As it is around the country as we are increasingly drawing attention to.

We have 23 colleges and universities in san francisco.

We try to get some numbers. The numbers are one of the challenges in this area. The numbers aren't great.

But if we use the numbers of one

and five or one and 16, one in

five women can expect to experience sexual assault while on campus or in their college

experience. And you use as a monk numbers

about those numbers since we come into san francisco and

attending school at schools that are somewhat residential although, in the urban environment it is quite different than campus is when people are on campus the whole

time.

We are estimating around 10,500

female students and 3,281 male students to expect experience

sexual assault during their time on campus in san francisco and during the time that they are enrolled in school.

We know that this is a situation that also affects transgendered

people, boys and girls who are not in college.

The cap -- the task force made

recommendations with respect to k-12. very limited recommendations since that wasn't within their purview.

But the idea that we need to be doing preventive work before people come onto campus.

We also need to -- a supervisor kim has mentioned, been paying attention to how we are handling

sexual assault outside of the educational context in san francisco to support the most

effective approach to this issue we know that sexual assault and

cap -- on campus is an issue

that is not just a public health concern but criminal justice concern. In the context of sexual

assaults on campus, it has the added layer of adding educational rights and civil

rights issues and having other processes and procedures, administrative procedures and procedures under federal law as

well as under state law on campus.

That makes it even more complex. We need to take a legal and public health approach in our sectional as well as an

intersectional approach that takes into consideration other characteristics.

We know for people who are lgbtq

, issues related to race,

class, gender identity, a little

-- other characteristics. Intersecting those experiences

with experience or the potential for sexual assault or violence. It is significant.

In san francisco, given the diversity and commitment to civil rights and progressive approaches to handling social

issues is an excellent position to be most sensitive in responding to the recommendations and the findings

of the task force.

So the report itself, in addition to the recommendations, we conducted significant research looking at whatever

data we could find. Summarizing existing laws at the

local, state and federal level. We also included student perspectives of the problem. We had a representative

specifically identified as

someone who could speak to student issues and could reach out to students on campus so that in addition to survivors,

we have folks who are on campus who could speak to the

particular cultural norms of their school and their concerns.

We ended up making recommendations in six different

areas that we will go into more detail, looking at a coordinated

city wide and campus effort, prevention, we looked at

advocacy and support issues. Policy development

implementation, surveys,

performance measures, evaluation and transparency. We built on some of the work

that had been done by the obama and biden administration in this area and tried not to reinvent

the wheel but to identify the

best practices that we can bring here to san francisco. We have an entire section that

provides additional suggestions. In terms of documenting the

problem, we look to whatever problem we could find.

San francisco women against rape identified 524 cases during

fiscal year 2016 and 2017. These numbers that you will see

on the slide don't record

represent campus sexual assault

other than the? Reports which are required

federal reports on the issue itself.

And you can see on the bottom

from the 23 institutions during 2014-2016, there were 74

documented cases.

These numbers, perhaps there is overlap and perhaps they are

distinct and individual cases.

It is difficult to know. It is recommendations of the

task force that we would have an ongoing task force and

supportive ongoing efforts in

this area, we could improve on

data collection and do a better

job documenting the problem and reporting on these matters. You can see we included numbers that we have for the police

department and per the D.A. As

well as from the 23 colleges and universities. That is all included in the

report. In terms of student perspectives

, we conducted interviews and outreach.

I generally -- in some public events and on campuses and really took advantage of our

members who represented the

student voice on the committee.

As well as leslie simon and her

connection to prevention efforts at city college and other

members who work directly with students on campuses.

We know that students raise a

lot of concerns about how their concerns were handled when they

brought them to the attention of the administration. Sometimes people believe that the title line office is in an

excellent position and they May well be but they also have

obligations to the institution.

and we need to do some outreach to the larger community through

women against rape or other social service agencies which

requires coordination between the campus processes and procedures for closure campuses

tend to have more resources such

as city college, sit -- san francisco state, ucsf. The smaller campuses rely

heavily on what we are able to provide in the community

generally. Making sure that we include survivor voices and student

voices about prevention as well

as a response, the task force is

really key.

The last point that I will make is a task force felt strongly it

was an opportunity, such a

privilege to have this year plus time to really focus on this

issue. Naturally because we had a task force and we had funding and we

had a staff person or consultant , we were able to draw

attention to the issue and generate more it-ish -- more thinking to its picket brings people together. The group felt strongly that one of the things that we need to do

is support any ongoing efforts that exist to coordinate more effectively and establish a task

force I was dedicated to this issue. We wanted to highlight that there are some groups that have

been working on the issue long before the task force force showed up.

They too felt strongly that having a group that is tasked with focusing on this and having

staff focusing on the issue is important. a sexual assault response team

start which brings together representatives of different

agencies that work on this issue

and help victims, and survivors of directly is the major public community-based organization

that works on the issue, primarily through san francisco

general. With the members of the police

department, the sbu unit to, san francisco women against rape, the district attorney for sex

crimes, victim services as

represented here today. The san francisco women against

rape mentioned trauma recovery centres and mental health clinicians.

Child support advocacy resource centre and that medical examiner

's office. These groups are all part of the discussion and efforts towards coordination. They are really key and yet

there is no one entity that is

really charged with coordination

this is all in addition to their particular work and their agencies. They work on a number of different issues. They have done quite a bit of

work on improving the speed at which evidence is collected and analysed and looking at drug facilitated sexual assault,

which we know is a real concern in san francisco.

And then producing a brochure.

A guide to help victims survivors understand what resources are available where we also include some campus

information so that survivors could make decisions about which different route to choose in

terms of accessing help as

needed.

So I will turn it over now to get into more detail about the recommendations, unless there

are any questions. >> thank you. It was a real honor and privilege to have the chance to serve in my capacity and I appreciate your leadership on this. Thank you. >> thank you so much for all of this incredible work.

Did you want to make -- >> thank you.

I just want to go over, briefly, not all 47 recommendations, but just to highlight them. As julia mentioned, they fell into six categories and then we

have these icons that are associated with the recommendations once you get into the full list so you can

see which sector would be involved in implementing them or if there is any funding that

would be needed to have it go forward.

So again, as julia mentioned, the number 1 overarching recommendation of the task force if they wanted it to continue in expanded form. It was great as an initial effort to have a year focusing on campuses but we recognize that san francisco needed an

ongoing task force to look at sexual assault more broadly and to be funded to be ongoing and not just for a year.

The task force finished meeting before supervisor ronan convened

hearings earlier that reinforced

and exposed the great need that

san francisco has to improve how

it responds to sexual assault and then supervisor ronan introduced the sharp ordinance which created the sharp office

and we are excited to announce that in collaboration with the human rights commission and our

department, through some of the funding from the sharp office we

are going to be having a staff person who can convene some kind of work group or task force to do this ongoing work. We are really excited that we

will be able to implement one of

the primary recommendations for

an ongoing task force. The second overarching recommendation was to be mindful

of changes of the federal

enforcement of title ix. Because previously the white house had been quite a leader in

championing these.

But with the advent of education secretary director, we are already seeing those protections

being rolled back. We have strong laws in california, that can protect us

but we want to be mindful. In terms of highlighting recommendations from the other areas.

One of the areas, important way

is to ensure that cases are handled appropriately is to make

sure there are memorandum -- I

want to thank our g. A. Who has

done a good job in getting these

in place in a number of institutions.

So nine of our largest institutions have M.O.U. But obviously we would like all of them to have it.

We have on going work of task

force that we could monitor. The D.A.'s office has started this with the annual red zone events that has been quite successful and we would love to continue to have that happen.

In terms of prevention, we thought it was really important

to focus resources on prevention historically, interventions on sexual assault have focused on the response, which is important

but there is an incredible need

to start further upstream and

work on prevention. So two of the recommendations in

the prevention area were to

ensure that campuses have a bystander amnesty policies. If someone wants to reports that they have witnessed or been a victim of sexual assault or perhaps they were engaged in taking illegal substance and they are afraid to come forward because they will get in trouble

for that, it would be clear they would not and other jurisdictions have implemented those.

And looking at prevention, as julia mentioned further upstream and looking what is happening in the k-12, by the time you get to college, it is not that it is too late but you need to be

doing some of that work earlier. I want to flag that the state sexual assault allegation came

out with a report this year highlighting the need for prevention by looking at the

cost of sexual assaults in california. So they did a whole cost

analysis and found out that the state of california loses

$140 billion due to sexual

assault of children and adults

in the state and that for every sexual assault or every rape of an adult that can be prevented

we would save $163,000.

For every child, rape or sexual assault that we prevented we

could save $227,000.

Again, it is a good investment to be putting funds into prevention and we hope one of

the things that the ongoing task force can do is come up with

more recommendations around that because, as julia mentioned

there are so many systems that are involved, criminal justice

and educational and civil and community-based organizations,

it is important to do it we can to support the coordination between those different services and agencies. For example, can we figure out ways to minimize the number of times a survivor has to be interviewed so they don't have to keep on repeating the story

over and over again.

Another policy recommendation that was suggested was to try

and address the trends that we are seeing where campuses, when

there is an allegation of sexual assault, automatically issue what are called mutual no contact orders telling both sides of the have to stay away from one another.

That really treats the survivor, the person accusing that there has been an incident of sexual

assault with the same brush as a person who is the accused.

In the civil -- we do not allow

these mutual orders unless both policy -- parties need them.

We looked at reporting support services. We learned that the university

of oregon have figured out a way to provide free attorneys to

anybody. Given the number of law schools we have in san francisco, May be we could have some good coordination and figure out a program where we could do that

here.

>> how does oregon require the free legal services? >> they provide them. They pay for it.

They have funding through the

institution. >> this is specifically on campus so that when a student

makes an allegation and one side

or the other is represented by a good attorney in the process, the university provides a good attorney to try and equalize that.

We thought it was a great model that was worth looking into for

campuses here. As julia mentioned, getting

better data. Campuses are required to report crimes that occur on campuses including sexual assault but not

necessarily drilling down and

providing what are the outcomes of the section must conduct hearings that they have.

Are they doing evaluations of how they are addressing sexual

assault. Are they doing policy reviews?

Getting more data from institutions on that and having transparency around to that.

This goes back to the earlier comment of figuring out ways to collect and earmark funding

sexual assault services. In texas they have a program in

the state where they tax sexually oriented businesses and use that defined sexual assault. I'm not saying we should do that in san francisco but there are innovative out deviant -- ideas

out there and worth exploring.

Again, I want to thank julia for the great job she did in leading the task force into all of our task force members and I'm happy

to answer any questions.

>> colleagues, any questions on this great report?

I do want to think Ms. Miss kendall and the department of women post a status along with

Miss Weber. I do see members of the task

force here today. Thank you for the incredible

work in collecting what has worked in other cities and

states and universities and making a recommendation about

what we can do to strengthen what we do here in san francisco while I am very proud we are the

first city to request something

like this, it also saddens me that more cities are not more

intentionally figuring out, from a policy perspective, what we can do to support survivors of sexual assault. We know that so much of it

happens on college campuses in higher education institutions. Knowing that we have 23 here in the city and county of san francisco, we should be

partnering with them. In terms of streamlining this process, I hear this over and

over again through multiple

service systems, not just for

sexual assault, but even those that have lost housing, are

experiencing homelessness that the experience of having to tell and retell your story and having

to answer questions that question the veracity or the

credibility of that story is something that is incredibly

humiliating and challenging, especially when you are experiencing so much stress and

trauma. So this is incredibly helpful. i think that a lot of work has

happened on this and I really

want to commend the task force for your work.

Supervisor brown?

>> I also want to say thank you, very much for this report and

for the task force.

And as supervisor chair kim had

mentioned, something like this really affects your life forever

I have known people when I was

younger that had these experiences but not only did it

affect their everyday life, they could not go to work and part-time jobs while they were going to school. They also, a lot of them dropped out of school.

This was a huge. A lot of the universities, and

I'm not sure how we handle it, but they don't go to class for a long time and they have to heal.

They just try to go to counselling and do what they

need to do and a lot of the universities that I know of did not know how to handle that and would give them incomplete.

They would drop them and it was

a struggle.

For a lot of them to get back into a good university that was a good university because of

this incident.

I hope that we look at that too

as how to handle the everyday life and getting back into

school and really having that

acceptance of school. >> thank you. >> thank you. >> why don't we open up for a

public comment at this time.

I do see members of the task force here today and so if you

can come and line up. >> I just want to acknowledge

them. >> I wanted to thank supervisor

came for leadership on this project. My name is leslie simon.

As founder as project survivor, the 25 euros sexual prevention

program, I was honoured to serve

on the sexual assault task force I want to acknowledge peer

educators in -- you are here.

We represented trauma support services, law enforcement,

academia and the survivor and peer educator community. Advocates and activists,

old-timers and youth. That kind of multidisciplinary interdict -- intergenerational work must continue if we are to make it out of these troubling times where heightened awareness from the me too movement

demonstrates the need for prevention education.

Currently, community

collaborative deliver sexual violence prevention workshops to all san francisco high schools

with the support of this new

ongoing staff task force we can extend prevention education into

elementary and middle school so

that the bully and first grade does not turn into the sexual harasser in a middle school and the rapist in high school and college.

The task force can promote a sex -positive environment over a

rape culture that ultimately hides, condones and celebrates

power abuse.

The power abuse we all witness and the mock investigation of sexual assault allegations against the city and supreme

court justice. Let san francisco offer an example of a coordinated response to sexual violence that

not only requires dignity and respect to survivors but

prevents it in the future. >> thank you so much. I.

I want to say that the program that you helped to coordinate

and lead with the students is really extraordinary.

I really enjoyed visiting and was able to recruit an intern

through that program. >> next speaker, lease. >> thank you.

Before I go on, I want to give

recognition to peskin.

He has been around for a long time. Supervisor kim, you have been around and I've always admired

you, even your commercial. And currently, Ms. Miss brown. The supervisor of district five.

I have been with you for a long time. We have been accused of having cupcakes together and all that.

I just got a letter here and I will talk about that later. This is the difference of what I am saying. Why a black man, the city and county are trying to infringe on my rights. When we talk about- -dash we'll talk about what the young men told me. Let me tell everybody.

Whatever you say to me, or do to me, think about it because it could be used against you. I am going to the F.B.I. I am not stopping here. My name is ace. I am going to the F.B.I. To

protect me. Here we are. This public testimony, unless you have a way to say it, I support that's. I have three daughters. I have three granddaughters. I have three great granddaughters and I would not

want them to get raped. I support you. Meanwhile, public testimony.

Hold up. Racism. There is a white man who used to come in and saying. You would not say a damn thing to him. I can sing too. I will show that in our next time appear. We are taking time away from me.

Telling me how to walk and talk.

Tell me how I could have been avoided being a black man.

I'm up here for one thing and one thing only.

Representing the black community if you want to stop me and have the sheriff his coming to arrest me like they did here the other

day.

Ok. I am ok. Sometimes I get emotional

because I have had surgery. I am suffering from post trauma from here at city hall.

I call it silly hall. I support all this.

But if you will all have -- tell somebody who hasn't told you this.

Tell them to come tell me to do this. My name is ace and I am on the

case.

[Indiscernible]

>> good afternoon, supervisors.

I am a chief of victim services for the district attorney's office. I wanted to be here to support the recommendations of the task force. It was an honor for us to be part of it.

We will continue our work and working with the schools and the

universities. We have done a red zone events every year for the last four years. And evoke patient -- big push this year was to help government

and nongovernor -- government partners to understand the

trauma impact to survivors.

So we can help create a more effective and engage in communication and improve the

services that we offer. We look forward to working with

the task force as it continues and in the future, particularly in the area of working with middle school -- middle schools and high schools. It is a very underserved population and hard for us to engage with those survivors what

we really want is for very young

women to learn that they have the ability to protect their bodies.

That they deserve respect and they deserve for these issues to be addressed and they deserve treatment to recover from the use they don't set the tone for the rest of their lives.

Thank you very much. >> I'm so sorry I did not acknowledge you. I did not know that a D.A. Representative was here today but I appreciate you being here.

Since you are here and not all members of the public understand the M.O.U., can you describe

what the M.O.U. Is and the nine

campuses that you find this M.O.U. We. >> absolutely. The campus is that we have an

M.O.U. With, there are layers to it. It allows for the police department of san francisco to work collaboratively with campus

police on all of these universities but it also allows us to provide victim services on those campuses so that we can

supplement and enhance the services that they are receiving on campuses. So they can apply for victim and crime compensation. We have emergency funding where we can play just pay for things like students having to go back home to visit their family.

We can pay for books if they were out to semester and need to go back. We can assist with any medical

or health services with their victimization.

>> what is a source of funding for the services we. >> we have two sources. One is a california victim his crime compensation dollars that all californians have available to them.

And we have a secondary pot from the board of supervisors that comes to the victim services division. We can pay for things that pay

for things outside of the scope of victim his conference -- compensation.

>> what does that mean for a campus police and sfpd to work

together on these cases we. >> there will be one agency that takes the lead in an investigation but they will work collaboratively and can share information if the investigation needs to be transferred to the san francisco police department

and the campus safety organizations will give

information to the students about victim services and resources off-campus.

>> does is help to streamline the interview process for the

survivor? >> at this point it does not affect the interview process. Sometimes they will have too interview -- two interviews but we are working hard to improve the quality of those interviews and we are meeting as a group with our law enforcement partners to think about streamlining that and doing more

of a multidisciplinary interview where a survivor would only need to tell her story one time. We are working on the logistics

of that now. >> who are the nine campuses

that you currently have an M.O.U. With?

>> san francisco state, university of san francisco, city college, conservatory of

music, the art institute, --

>> I think she May able to help you. >> we have independence -- in appendix and a report that helps

every university. >> the public can't see the

report.

I think the public would want to know which nine institutions

where you could find this M.O.U.

>> you see hastings, ucsf and I

think there is one more. And alliant international

university.

>> who has not signed? >> golden gate university.

To fry university has not signed , the fashion institute of design and merchandise has not

signed. The arthur a taccone school of dentistry and california college

of the arts have not signed. >> and the academy of?

>> they have signed. >> is at the art institute or

the academy of arts?

>> the art institute has not.

>> I would love to be able to assist in developing that relationship especially the dentist schools and the district that I represent. Please do reach out to supervisors for assistance in leveraging our relationships

because I would like every higher education institution to sign on with the district attorney's office.

>> I appreciate that fact we are meeting tomorrow to talk about the universities we have not signed on yet and how to access them.

I am grateful for the opportunity to reach out about that. >> thank you, so much. Thank you for the incredible

work and of course, this only highlights the work that will continue to happen and I can't

say how I continually am disappointed that congress has

not passed the cost to act that

was introduced by the senator,

which is just a simple act that requires confidential advisors on campus and requires

universities and institutions to provide information on how to

report to their students. Something like this is pending

in congress and cannot get past. I think it speaks to the

enormous hurdles that survivors continue to have to face in

getting their stories listened

to and these crimes reported and addressed and I hope that we can continue to do advocacy on that

work and on affirmative consent on campuses in the state of california. I also am really grateful we

could shine a light on rape kits in 2013 and that san francisco police department has since then

move through in -- I don't know if the what the appropriate word is, by moving through and testing all of the rape kits after we have found 753 kids that had never been tested back in 2013. So there are games that have been made but still a lot of work that continues to need to

happen but I am really happy that san francisco is undertaking this initiative and effort to. Any other comments from colleagues? Seeing none, I will take a motion to file this item. I. I am sure that there will be other colleagues that will continue to take this up.

I look forward to our continuing conversation with the department of women status. Thank you so much to Miss

Kendall and weber for being here and Miss Simon for representing

the task force. >> Madam Chair, public comment is still open at this time. >> thank you. We will close public comment on item number 3. Thank you. I have made a motion to file this item.

Can we do that without objection >> mr clerk can be called the

final item. item number 7. >> item number 7. It is a hearing to receive the

budget and legislative analyst audit the housing authority and mayor's office of housing and community development coordination management and accounting of the section eight

voucher program. >> I want to acknowledge supervisor peskin, our vice chair who is a lead sponsor for this hearing and I want to hand

over the hearing to supervisor

peskin. >> thank you chair kim and thank

you to both yourself and supervisor brown for cosponsoring this hearing, along with President Cohen and

supervisor he and others. I think that massive amount of

cosponsorship speaks to how

troubled the legislative branch of government is over the

revelations that appeared in an

article just ten days ago on

October 15th. When I was first on the board of

supervisors, some 18 years ago, the housing authority was a

troubled agency that was constantly under fire and under scrutiny. When I came back and the program was in full bloom, I felt like

things had turned the corner but

these recent revelations of a

massive reserve being spent that arguably did not exist made me

realize that perhaps things are

still troubled and we need to use our power of inquiry to figure out what happened and how

we can make sure he does not happen again. Particularly in light of a

budget and legislative analyst

report in 2013 that expressed concerns over a lack of

bookkeeping standards and

overall management as well as a 2017 controller report that

expressed similar concerns. Obviously the section eight

program is near and dear to almost every member of this

board and provides opportunities for people to be house in san francisco.

So we all want to make sure that it is going as well as it can

and I think we also want to get

to the bottom of how we want to maintain those vouchers and to that end, we have kate here.

I want to start with barbara smith, our long-time acting director of the housing

authority to help us understand

what is happening and how it

happened and what we know and what we need to do to protect

our most vulnerable citizens. >> good afternoon supervisor

peskin and supervisor brown.

And members of the public. Thank you for providing me with an opportunity to update you on the san francisco housing

authority's distressful shortfall situation. I too am dismayed by this

unacceptable shortfall situation that we are experiencing with

the housing voucher program. This is particularly distressful

after years of dedicated managers and staff digging our way out of trouble status and

working our -- out to fully

utilize the program that funds to better serve our most vulnerable residents and expand our subsidy programs for

thousands of households in need. I want to assure you that everything that we are doing, we are doing everything possible to work carefully with the mayor's office of housing and community development and the U.S. Department of housing and development to guarantee that

the affordable housing that our participant families and individuals rely upon and every community affordable housing

partners are not adversely impacted by the situation.

The mayor and O.C.D. Have been extremely committed to doing whatever is necessary to fix

with -- fix this enormous problem. While we have to measure future expansions, including

prioritizing the hope S.F. Project, we do not expect to

pull back on existing commitments. Please allow me to present an overview of where we are at the

housing authority. The housing authority establish close working relationships with the mayor's office of housing and community development.

The san francisco controller's office, hope S.F., numerous other city departments over the past few years. We eliminated a $7 million

budget deficit through cost-saving measures and

concessions with bargaining units.

We balance budgets through 2019. Although administrative and public housing deficits are

projected to return from 2020,

due to the difference between it revenues we will be receiving

and actual expenditures to maintain our remaining

properties.

We accelerated repairs and eliminated a 3,000 backlog of

work orders for public housing residents and increased rent collections. We recruited and hired key housing choice vouchers, human

resources, legal department department and other management

staff we have converted to a new software system and emphasis to a lead that specializes in public housing and housing choice voucher programs. This was no small task, I might add. I know the city has been going

through conversion as well.

It is an enormous challenge, particularly when you continue to be running an operation.

Provided, all employees with extensive training and regular performance reviews based on goals established through a five-year strategic plan with a primary goal of being a

proactive partner within the san

francisco community. We achieved a standard performance status for housing choice voucher. In 2016.

We converted 3,500 public

housing units to the rental assistance demonstration program

with project-based voucher and rad subsidies combined.

It is a $2.2 billion

public-private investment that

community partners assisted us with.

We increase the housing choice voucher utilization through collaborations with city

partners. And the veterans administration

as well. We became a housing choice

voucher standard performer.

In 2016, and maintained that status in 2017.

After eight years of trouble

designation and underutilized of the voucher funding.

This was due to extraordinary work by our housing choice director and manager his. We are on track to continue that

designation in 2018 based on a

rigourous scoring system. Despite these improvements, the h. C.V. Program now faces an

enormous funding shortfall.

Due to over the utilization of the housing assistance payments for 2018 that will likely carry

over into 2019. Supervisor peskin asked about

the status of the city services

auditor division assessments

that was done was conducted and released in a report in August

2017.

That report concluded that the finance department was not able

to perform critical functions due to staffing and management

deficiencies. The status of ever lamenting the recommendations is 19 of the 26 recommendations have been implemented. Five have been partially implemented and to have not been implemented.

I will not go through the list item by item but I do want to point out with regard to shared services with the city,

September 2017, we explored a

shared services agreement for management of the finance operations.

In November 2017, the city and county of san francisco offer to recruit and hire a chief

financial officer of the housing authority but no viable candidates were identified by

February 2018. Regarding timely filling a vacant fit positions, we have been successful with the

exception of the finance

department. We have filled timely through a

network of recruitment services despite the challenges with the high cost of living, low

unemployment rates and the limited compensation levels for

fsh a. Staff of continue to be a challenge.

In March of 2018, the san francisco housing authority initiated procurement for professional consultant services to take over management of the

finance operations. B.D.O., a national firm was selected for a long-term

contract in August of 2018. In September 2018, with B.D.O.

In place, sfh eight terminated the director of finance and senior budget analyst in charge

of the voucher management system

reporting. >> you said that was in September cleat. >> that was in September 2018. Just this past September. It took following that

procurement policies for us to

get the contractor in place. B.D.O. Now oversees finance operations including management

of the ms reporting.

We are still struggling. Until recently with the general fund thanked reconciliations. I asked the city auditor to help

us with reconciliation of the

full fiscal year 2017 reconciliations. She graciously accepted and this

was completed by June of 2018.

Under B.D.O.'s oversight, the general fund reconciliations are

being completed. They have been completed through february 2018 and will be fully

up-to-date by December.

That is just a few highlights of the controller's office

assessment. And our accomplishments in that area. We dramatically expanded the

housing choice voucher programs by 4,641 households over the past five years. This provides more people with

better housing.

Through mid-2017, we urged the housing authority to increase the overall -- I'm sorry.

Thank you.

You are keeping up with that. To increase the overall housing choice voucher program

utilization.

Get its funds under contract, avoid recapture of its reserves

and serve more people. Reserve estimates at the

beginning of calendar year or voucher program is on a calendar

year. There were some errors in our

report were -- our reporting his

the actual account ended up

being $28.4 million for calendar year 2018 expenses.

That is the reserve amount. 3,500 public housing units were rescued from chronic

underfunding and demonstrated a project-based voucher subsidized and community partner owned

housing with services for residents.

Beginning in calendar year 2015 and 2016.

1141 project-based vouchers and vouchers were committed primarily in 2017 for new

affordable housing, city funded

local operating subsidy programs , which were previously

funded by the city.

they picked up the subsidies to

provide additional funding. They serve the formerly homeless

that housing for veterans. It set us out -- set aside

moving on initiative vouchers out of housing with supportive services.

Freeing up housing for homeless and set aside vouchers for families with minor children

living in S.R.O. These are some of the things

that we have been able to

support with the funding that we thought we were able support with the funding we had

available.

In March and April 2018, --

>> that is all federal funding? >> yes.

All federal funding.

>> in March and April 2018, we began to question the accuracy

of the custom two-year tool.

A product that was developed a

forecast housing choice voucher and housing assistance payment

fund utilization, reserves and potential shortfall or negative

balances. In March, we initiated

procurement again. I mentioned this earlier for professional consultant services to take over management of the

underperforming finance

operations including management of the voucher management system

reporting and the two-year tool. Between March and August, the housing authority began to advise the city and community partners that there might be

some shortfall in late 2018 or early 2019. >> one was that we.

>> we beat -- we began to advise community partners that May be shortfall of funding. >> that was when?

>> that was between March and August. We were still trying to update

our two-year tool forecasting.

We have a complicated voucher

program in san francisco and it

is the two-year tool that helps housing authorities be able to determine whether or not they

May be in shortfall at the end

of the calendar year. The funding comes to housing authorities on a calendar year

basis and then it is renewed for

the following calendar year.

>> I am aware of the fact that

many housing authorities have a consistent shortfall at the end of the year and this is not

uncommon and they basically bridge that until the new funding comes.

That is my understanding.

Not anything of this magnitude.

But when you advise the city in the March timeframe, who did you

advise? >> we talked mostly with O.C.D.

And hsh.

This was just a casual kind of, we might run out of funding by the end of the year and we might have to stop issuing vouchers. We might not be able to add additional project-based

vouchers units.

>> in other words, potrero and sunnydale we. >> not necessarily.

We had to be -- we knew that we were starting to get near the

end of our large reserve problem and we were becoming fully

utilized. >> when you found out or you

were told in March that there May be an issue, did you stop giving out vouchers?

>> well, we were also in regular consultation with hud. We do meet with them monthly.

We did talk with the field office about this. We were all looking at this two-year tool that was giving us

erratic predictions.

H.U.D. Actually said that they thought we could continue

issuing 25 vouchers a month for

the moving on initiative. I was between March and August where we were talking with them about that. Had wanted us to be fully you develop -- for do you devised so

we could -- fully you develop

fully utilized.

We were -- it is very obvious to

us that if we miscalculate by a few percentage points of how

much we will spend, we can end

up with a large shortfall.

H.U.D. Does have funding, a limited amount of funding for shortfall situations.

It is true that nine out of the

11 bay area housing authorities are in shortfall. They are regularly in shortfall

and apply for shortfall funding. The other two housing

authorities are moving on -- the moving initiative are moving to work and they are able to use

their funds flexibly. But you pointed out the

magnitude is enormous with our program. Our program is enormous for the magnitude of the shortfall is

very large. >> I have another question. Between March and April, you

gave out about a hundred 50 vouchers and that had said to

keep giving them out. >> twenty-five per month. >> between March and August.

Ok. since ped said keep giving them

out and you should do that, is a head stepping up and going to

pay for that we?

Because they had asked you or suggested you should keep giving

out vouchers after you have said you thought there was an issue.

>> well, ultimately, it was our

decision and H.U.D. Was making -- giving us their advice or recommendation.

I don't want to -- if they were trying to help the housing authority fully utilize their

funds.

H.U.D. Was basing their assessment on the housing authority's process two-year tool.

Our two-year tool had the finance department -- the finance department was not inputting data accurately.

We have, because of the rad

conversion of the lost projects and rent increases that landlord

his request and are entitled to,

we have an enormous number of retroactive rent payments that

we have to make. If all the paperwork isn't in

for something in the contracts

artfully executed, some of those

projects we are counting on getting rents back several

months and in some cases back

eight or nine or ten months. Those increased costs were not

reflected in the plain-vanilla

two-year tool that we are using in the products that had provides. We find we have to make a lot of manual adjustments to that tool

to be able to be able to get

reliable projections. So that was really the difficulty.

The difficulty was with the housing authority's ability to

tailor that tool to our programs

and relying on projections that

were not accurate. I do have someone from B.D.O.

Here. >> it seems like the problem was you thought you had $34 million

but you only had $28 million. It starts cascading from their

attack doesn't it? >> yes. >> here -- this is not a you got

your conversation. This is pretty depressing all

the way around.

If in 2017 the city said and you have identified that the finance

department is the problem and by February 18, nobody can find -- where is the oversight were

somebody says why kate we have a

higher B.D.O., like two years ago. Everybody knew that there was weakness. This is not a city agency.

This is a weird thing for us. We do this all the time and say

to the controller, what is

happening in this shop or that shop? Is not happening here.

Where is the oversight?

You have a commission, right? Do they ask these questions?

How often do they meet? >> our commission meets

regularly and they get detailed reports. Reports are based on -- our

commission, for the past year,

we have been looking at ways to

have our finance operations,

basically, completely revamped. We have been working on this for one option or another. One was to get another qualified chief financial officer in place and that didn't pan out. we then immediately started a procurement process which made

things quite likely -- lengthy to get in a qualified consulting

firm that has the capacities to

manage these kinds of financial

issues. So it took longer than we

expected to get the right

oversight in place. I think that, given the resources the city has, city

resources and a closer relationship between the housing authority and the city is what

is needed to increase the capacity in that area and to

provide the necessary oversight

for those operations. >> this is going back to the

oversight issue. So the website, because I looked on the website, it does not have

any record of a meeting for the last year and a half.

What you are saying that the website has not been updated?

>> I go to the website regularly it does have, actually it does

have every commission meeting. That has all the reports that are presented to the commission.

The commission gets -- has standing committees for very

detailed reporting and there are

full commission meetings

regularly. They are all on the website.

It might be a little challenging

to move her but it has commission -- it has commission as one of the headings on the

website. There has been strong oversight

by the commission, but again, if the data is incorrect, that can

distort what is going on.

So I maybe want to briefly -- I briefly mentions the fact that there are retroactive payments

and there is also a per unit cost in this two-year tool that

had bases on looking at the

average for all of the payments. That is another area in the

two-year tool that has to be manually updated for the housing authority housing authority. Because we have such a big gap

between the subsidy levels for some programs versus a subsidy

levels for other programs. The fair market rents in san francisco have had to be

increased. We did a special market study to do that in order to keep landlords in the program. That is another situation that H.U.D. Has created. It is a gap between the funding we have available and the amount

that we need to keep people in

the programs.

>> just so that is clear, I am actually looking at the website

that has not been updated since April 11th 2017. I have just been informed that

there is an old housing authority website that has not been updated for a year and a half and there is a new housing authority website. That is a little problem.

[Laughter] >> we are both right but they are on different websites which is not that hopeful. >> I think the old website is

for historic information. You can be referred back. I don't know if you want more detail on that.

>> no, I just want one website that has archival material so people like me who knows how to use the internet doesn't end up on the wrong website and not being able to find a year and a

half or the notices. >> good morning. I am an attorney for the housing

authority and director of policy I was responsible for the old website. The new website is under the I.T. Department.

If you go to our website, under commission, you click on commission and meetings in all of our meetings are there.

We have not had any complaints in the last year and a half since we switched to this new website.

We were asked to the public to keep our old archive. We spent a significant amount of time archiving are documents ten years back to ensure people were aware of our history.

We do believe that it is pretty substantial.

All of our information is there. >> out of curiosity, your

commissioners are appointed at how? >> they are appointed by the

mayor. >> is at the same commission that is up on the website?

There have been no changes? >> there are changes recently.

We had two retirements and those are the two changes.

We also recently, another resident commissioner was sworn

in. >> ok. The reason I am asking is when I went to the website, this is not

a city agency, but it looks like the city.

If you look at the roster of the

commissioners, it is eight who's who of the city. It is amazing to me is amazing

to me that people from -- with finance backgrounds and purchasing backgrounds would not

have alerted everybody. And particularly the board of supervisors.

The reason I say that is we do our budget here in July and to

the extent that we would have known there might have been a

significant cash call, we could have, as a policy matter, had a conversation in the budget

process and instead, we learned about it in the newspaper in the

middle of October that you guys

knew about it in some form or fashion until March. Do we even know how much the

deficit is yet?

>> yes, we do. There has been a lot of work put into that.

It seems to be about

$25.9 million.

That is the deficit. We do have $7 million for the

housing authority and m. O.C.D.

Has committed to provide a loan

to the housing authority and head is working to find shortfall money for the housing

authority. >> so, we will talk to Ms. Miss hartley in a minute to, but as

to real life and real-world impacts, what does that mean for

projects that were stalled. What does it mean we.

>> I will let her talk about

that.

I do want to say that we are

applying for shortfall funds.

We should have had our two-year tool working and able to give us

projections even as late as

September when the head quality assurance division came in to

review everything, it took them a while to identify what the shortfall was. They thought it May be anywhere -- this was in September.

They thought it might be between

$600,024,000,000.

-- 600,000 and $24 million.

>> did you contact the city? >> yes.

We had already contacted the city. >> and you don't contact the

legislative branch of government

mo hcd? >> we do not have a formal relationship with the

legislative branch of the city. On October 16th, the mayor

wrote a letter to H.U.D. And expressed how alarmed she was

with the depth of the housing authority's financial distress

and the program. While all good intentions to expand the program and serve

more people, we served 4,600

more households.

That does not, in any way give

us reason for going over budget.

So the mayor has committed to accelerate actions so we make sure that the residents are

protected. We don't think that this

shortfall is going to impact

existing contracts that we have. But we are going to have to be careful going forward and make

sure that we measure the funding that we have a very carefully with the commitments we are

making.

>> in your experience, has had ever had this kind of shortfall?

>> we don't know.

H.U.D. Has $75 million set aside

for nationally for shortfall.

And our shortfall is more than a

third of that.

We have a big ask for H.U.D. >> do you guys have annual

audited financial statements? >> yes, we do.

>> 2017 looked good. >> 2016 and 2017 did not

identify any problems with the housing choice voucher payment. It did identify problems with the finance department

operations. >> it just seems kind of

mind-boggling that those kind of material weaknesses could be

identified in 2016 and that this problem could existing 2018. I don't know what to say.

I don't want to pick on you.

Colleagues, do you have any questions?

Is the 29.5 million, has somebody independently verified

that that is the right number?

That is the real number?

>> B.D.O., and I have joe here, the financial consultant. They have been working closely with H.U.D. There are a lot of variables that go into identifying the amounts.

The amount has to be -- because we have commitments to projects that are coming online very

slowly, rad properties come on in phases.

They come on not always with the documentation that we need to be able to meet the H.U.D. Requirements.

That delays things further.

The projects that we took on,

which were costing the city about $9 million a year are now in our budget at $12 million a year.

We picked up those properties,

but again, they are serving formerly homeless individuals

and there is a lot of challenges getting documentation together and getting those projects online. So we ended up with an enormous

amount of retroactive payments that aren't reflected in that

two-year tool but are movements

that we had to make. So working with H.U.D., all of

our data had to be carefully

reviewed and corrected.

Going back about three years. And then to determine our

reserve balances and also all of our transactions had to be

analysed to really look at what our expenses would be in

November and December.

Would we still have the same level of retroactive payments?

What projects are coming online? There is a lot of things that go

into getting the final number

pinned down.

>> I have another question. When do you think H.U.D. Will

give you the go if they will --

for the shortfall? Do you have any predictions on how much that will be that they

would give us? Since they only have $75 million

, do you think they

will do four or $5 million? What are they saying? >> well, it has been an evolving number.

I hesitate to say.

We did have a conference call this morning.

It seems as though they are coming up with more money than they originally thought they could. We will not know definitively for another week.

>> is it a loan?

>> know, it is not a loan.

-- no, it is not a loan.

H.U.D. Has increased our budget authority. By addressing this issue now, we end up starting out next year

with a much higher budget authority then we have had previously.

We have actually gone -- over

the past five years, we have increased our funding at a time when it is difficult to get federal funding by about

$89 million. We believe we May be able to increase the funding going into next year by an additional

amount. It will help us maintain all of

the housing that we have and we are also looking at how we can

accommodate additional commitments, although we will have a tight budget for least a year or two, more than likely.

We can't apply for shortfall funding. Although we can next year. We certainly would not want to

have that be a small amount and

it would have to be justifiable based on the market in san

francisco.

We expect our fair market rents -- or additional landlords May be asking for rent increases based on our payment standards. We want to keep them in our

program as much as we can. If the landlords can forgo some of those rent increases, we

would ask them to.

I think next year will be

challenging for sure.

But it should level off over the

following years.

One of the conditions of H.U.D.

Providing funds is going to be a

city assumption of responsibilities for the essential functions. Once the housing authority has

satisfied any required meet and confer obligations with the labour organizations.

>> in other words, the housing authority will become a city agency for all intents and purposes? >> will become part of the city in one form or another. That is one of the H.U.D. Requirements for the shortfall funding.

>> why has that not happened

over our torturous history?

>> well, I go back to hope six

when we were trying to rebuild public housing sites and I would

go to the city and I would say to rebuild the project, we have

a gap and we need some funding. The response was, that is a federal program.

That is not a city program.

And this has evolved over the years. I think, absolutely over the

past five years, having commissioners who have been with the city who are leaders in

their departments, partly just the working relationship we have

had with mohcd hcd, things have

improved dramatically in terms of a working relationship.

It has not gone far enough, but years ago, the housing authority was considered to be a separate

agency and I'm not sure how

willing the city was to embrace the housing authority and all of

its challenges. So this future could be a good

thing all the way around for the housing authority and for the

city. Obviously, we have enormous resources.

We serve over 12,000 households with our voucher program.

And another 1400 at our

remaining public housing sites. It is an enormous resource to

continue to have -- house low-income people in san

francisco and it is an important resource. >> we all agree it is also

important for that financial house to be in order. Thank you.

>> thank you. >> ok. >> I would like to ask kate

hartley to come up. I hope she is still here.

>> she is right behind you. >> I just want to say to you, thank you.

I have worked -- I know supervisor peskin has worked a

lot with the housing authority over the years and I definitely feel there is a huge difference of working in the last five

years with the housing authority and the responsiveness to the

things that our district has

needed and our residents. I definitely want to thank the

housing authority for their responsiveness and for really moving forward. Thank you.

>> thank you, supervisor. We have welcomed the supervisors wanting to work with us and

wanting to have us be part of the challenges and meeting the

challenges that we all face here with a low income residents. >> thank you, barbara.

Ms. Miss hartley. I know my colleagues want to wrap up so I will ask you a few short questions if they don't have -- they May have questions

as well. Every year we go through the budget process and every year we

think we know what financial policies we are setting.

It is always a little disturbing

when -- an agency like yours, which always says they don't have enough money for small site acquisitions in the region the paper one day, wow, they have money to cover this shortfall and you said yourself, how in

the heck, as the appropriators, does that happen?

What trade-offs are being made, and what is being delayed?

Moreover, insofar as we are the appropriators and the mayor

proposes on the board disposes,

we really should know in March

14 September that there could be a large cash call.

We have two different relationships. One between the housing

authority which is technically not a city agency, and the other within the city between the executive branch on the legislative branch. The bottom line is, we are learning about this after the fact. I.

I'm not even sure how I can read

in the newspaper that you've got

20 million bucks to spend. Anyway. Those are my questions.

>> great, thank you, supervisor. I am very happy to be here to be

able to address that question. First of all, as you know very

well, the budget is comprised of

multiple sources of funds that have their own sets of

restrictions on them.

So we are limited in the way in

which we can use funds depending on the type of project and where that money is coming from.

We have been saying, indeed,

that we have limited money for a new small programs and new land acquisitions and new construction. That is largely a function of the fact that our projections for our inclusionary housing

fees and our job housing linkage fees for 18 and 19 have dropped

off quite a bit.

Those are the funds that we use for small sites and we use for land acquisitions and we use for

new construction projects. Because of the drop off in

market rate projects going forward to provide the in lieu

fees, despite there having been entitled, the amount of inclusionary and jobs housing

fees are lower, we now are really working hard to make sure that the pipeline projects that

we have in place that need in

the neighbourhood of 100- $120 million can move forward to. Which is why we are saying no to

some projects now. As you know, our budget is

complicated and it is multi year it is comprised of these

different sources. That doesn't mean that other projects that the board has

previously authorized come to a screeching halt.

In 2016, the board approved the

leveraging of the housing trust fund, $75 million in debt,

$51 million of which would go to public housing revitalization. At that time, we were embarking

upon rad which is a 2 billion-dollar transaction.

It was on unprecedented in scope

and risk.

There were many times during

those years where we thought that R.A.D. Would fall apart. We had to put in our loan

agreements. Really unique language to say that if we did not deliver on

resources, that developers could walk away. We've never done anything like that. But the risks were so high.

Immediately out of the gate in the 51 million-dollar allocation

, we spent about $21 million to get started and

then we held reserve funds for

permanent financing take out. And in case something went wrong because this was such a high

risk proposition. So fortunately, as the R.A.D.

Project of phase one is complete , they have completed. They are very successful. We have all been at the grand openings and we are proud of

that work and grateful to our nonprofit developer partners who did the hard work.

We have avoided any major catastrophe that would have called upon those reserve funds.

At the same time, the needs of people have accelerated. The habitability conditions are

terrible in potrero and we want

to make sure that our hope S.F. Projects move forward so we have been shifting the focus of the

remaining housing trust fund money that was allocated to

public housing to hope S.F. As

the risk in R.A.D. Has diminished. We had $20 million that we were

intending to put into sunnyvale and potrero, emergency rehab needs for the board process

authorization in 2016, and now

we have this situation. So, in answer to your second

question, we did not know -- we

did not know the magnitude of the financial crisis.

In March and April when the original shortfall noticing

happened, H.U.D. Staff were literally sitting side-by-side

with housing authority staff, going through, line by line, the

budget. The budgeting is extremely he so tarik.

A normal accountant or finance person cannot sit down and look at the voucher management system

entries and look at this two-year utilization tool and

say, I see the errors. It takes a very specialized

knowledge base.

So we weren't rat liens on the fact that H.U.D. Was sitting with the housing authority and

saying, you know, we urge you to

continue issuing vouchers. >> I am with you on that -- that

is why there is nine out of 11 agencies in the bay area that have a shortfall. We are used to that. That is not how you miscalculate

your reserves by $6 million.

That is just -- I mean, that is just been caught --

unconscionable.

>> it was terrible incompetence. We know now on the part of the

finance staff. I'm O.C.D. And the city staff

have no way of checking that. We are reliant upon H.U.D. And reliant upon the data we get

from a separate, independent

agency. And so, as H.U.D. Moved forward

and said, you rok, issue vouchers, we move forward too.

So we feel that this is a very

appropriate use of funds to

protect tenants.

That is to cover the housing

assistance payments contracts for December of 2018 on these

existing obligations. Because what we have here is essentially the equivalent of a bankruptcy.

>> kate, I am not disagreeing

with you about the importance. What I am quibbling about is the

fact that if the board of

supervisors appropriated

$51 million for certain uses and you want to spend them on other uses, I think that policy

conversation is supposed to happen.

I am trying to force the policy conversation. I think that -- May be this is a

question for the controller or

the city attorney, you have to come back and say we would like to be appropriate these dollars

to this. Instead of what is happening,

which is, hey, I am sitting on $30 million of contingency money I did not have to spend. I will spend it over here. I don't think it works like that

>> I disagree with you that this use of funds is different than the original appropriation. It was for public housing

revitalization and we are using

these funds to protect the public housing revitalization in

the form of the R.A.D. Housing assistance payments contracts. Because we cannot let those

buildings go into default. That is what we are using those funds for.

The original intent of the appropriation. >> they are not being used for

tenant vouchers?

>> and to protect the tenant

-based vouchers, yes. But without this allocation of

funds to us, the projects cannot cover their December 2018 payments either.

>> yeah,. I will take it off-line with your department and the controller in the city attorney 's office and we will read the language and decide. My larger point is, you have to keep the appropriators in the

loop as a matter of practice and policy and good government.

And that is part of the reason I I'm having this hearing today. I don't know if there are any

other questions from this board. You want to have lunch and get on with your day instead of a three and half our special meeting and there are people here from the public would like to comment. I believe we have one really

important question for the controller.

I want to thank the budget and legislative analyst for being here. I don't know if she is still here but I don't think we need

to rehash your 2013 report at

this point. I do think there May be a role for the B.L.A. And controller's

office relative to some real

oversight, which clearly, I don't think, no offence, I don't think there has been strong oversight or we would not be in

this mess right now. To the extent that conditions

coming from H.U.D. Are that we

take -- the city take over that there is a role for the

controller's office and the

budget and legislative analyst. And this board and making sure that it is taken over

appropriately there May be a role for your department.

Here is my big question in the same vein to the controller's

office you are mark.

>> correct. >> I know one of the recommendations from the report

is there a financial system mesh with ours. Can you speak to that on the status of that as barbara spoke to?

That is a critical step number 1 we cannot rely on their numbers right now because we cannot see their numbers.

>> I speak a little bit more. That was one of the recommendations that we let out back in 2017. We believe that if the san francisco housing authority

leveraged the new system that we have, that it incorporates finance purchasing and human resources, that there will be some deficiencies.

And I can -- it will connect the way they process things.

From the staff is provided by the authority, I believe they have not implemented that.

I know that they have been in dialogue with the city.

>> but you have made that offer clear to them? >> correct. >> they have not yet availed

themselves of it we? >> I will have the authority

speak on that.

>> in the list of recommendations, we did say that we have not implemented -- implemented that. We have worked with the city auditor on a number of special projects.

But we have not tried to incorporate our financing into the city.

I don't know if you want to hear from B.D.O., but the voucher

management system is very

complicated and very unique and

does require special expertise.

>> I hear you. There were 26 recommendations in the report.

Twenty-five in the city service auditor's report. Twenty-five of which you accepted and 19 that you have implemented and five you have partially implemented and to you have not implemented. This her once you agree to implement.

I understand the two-year tool is complicated and that vouchers are complicated but I also understand that the city is only

going to be as good as we can interact with your numbers, particularly if you are going to

be incorporated by the city. Without getting into the details

of it, I would love for that

recommendation to be implemented first as quickly as possible, if

we are going to absorb you. >> thank you.

Yes.

>> thank you. Madam Chair, in the interest of

time, I will truncate this.

We can do this all afternoon,

but why don't we open for public comment. >> at this time, we will open up for public comment.

It is not that any of us need to

eat lunch, but we do lose coram at 2:00 pm. Supervisor brown wanted to make

sure she was available. We will open up for public

comment. >> I will show you why you have

this shortfall.

I talked to hartley k.? One of the department building -- apartment buildings that came available out of her office, the lowest income requirement for

one of those builders was 80% of the A.P.I.

It is like 80 or $90,000 a year.

I made an appointment to talk to

her to demonstrate that she is discriminating against low income bracket people. By you setting the requirement

to move into each and every building that comes out of her

office, it is so high that the

housing authority is giving vouchers to pay that much money

results in a sucking of their funds.

That is why they have a negative cash flow now. Because of hartley and the developers.

They are paying an exception for the klute -- inclusionary rules

of the developer won't have low income tenants in their building

and pay that fee.

The department is making $2 million a month. Is that clear? You better audit on her

department on how much money they have in their reserve. You will find that when a

developer pays that fee, so he won't have to have the most vulnerable people will be attending in their building, they take that money and start

up a new construction project and sets the requirement at a

higher rate with still low income bracket people, the most vulnerable people who can't

afford to live in the building and you displace low income

people out of housing. She is scandalous. I tried talking to her about that.

I said how can you say that is a low income affordable housing when you have the lowest income

to move in that building at 80%

of the A.P.I. And that is about $90,000 a year? Since when is a low income, affordable housing project, and

the lowest income is like 80-90

God damn thousand dollars a year do an audit on her account. That's why there is so much money in that account and you are shortchanging the housing authority.

>> thank you for your comments. Next speaker, please. >> mr wright.

Thank you.

>> oh, my God. Listen. I only have two minutes. First of all, let's clear the

air. We will talk about it later.

It is not her fault. I commend her department because

her department was ran by -- when she came on, she is doing a fantastic job.

We will talk about that later. Right now, peskin you are the

master of legislation in city hall.

Because you are the one, years ago, when they had to reenvision , you are telling them they were wrong then. Here they are again. I commend you.

Valley, district five, I see you here and I hate to say it, you

are protecting room 200. I not say any names.

That is why you were appointed. I call it a disappointment.

Here we go now. You are talking about the housing authority and accountability.

Peskin, did you know who is running oewd?

That is somebody named -- what is his name? He is the director of oewd and

he is also the President Of the housing authority.

Therefore, how can you have mr torres as the President Of the housing authority and now he has

been selected, like you have, bad selection, london, I have to

tell you.

I agree to disapprove. You have two individuals that come from oewd that are

protecting d.

You know who I am talking about. Somebody there.

I am so glad that mr pestis -- mr peskin, the master of

legislation is using the real thing. I am glad I'm here to get all this information.

I am appalled at city hall. I am appalled.

And I want to talk to H.U.D.

They have the money. H.U.D. Controls everything. That is a federal government.

That is why I want F.B.I. To investigate city hall.

That is all. >> are there any other public comments on this item? Saying none, public comment is closed.

>> thank you to the folks in the housing authority and the mayor

's office of housing and the budget and legislative analyst and the controller's office for spending your afternoon with us.

I think where we need to focus is on how the transition process

of S.F. Ha to the city will work I would like to have some

oversight over that and I would like to continue this item to

the call of the chair so that perhaps at our next visit, we can talk about what the plans are and make sure that they are actually going to work and so

this continuing trouble

department will not remain troubled when it becomes a

closer part of the city. I do totally acknowledge and

appreciate the R.A.D. Program has been, despite this great risk and challenges, a remarkable success. An increase in the amount of

vouchers that we all support.

We have to live with inapt -- within our means. When we are having conversations at the board of supervisors about minimum compensation ordinance and all of the analyst

competing priorities, we have to know when we are getting an

unexpected cash call. With that, thank you, colleagues

for your indulgence and support.

>> I want to thank vice chair peskin for calling for the hearing. I think, as you have seen in the

number of cosponsors, it demonstrates the amounts -- immense amount of concern of the

board of supervisors has about what has occurred. I just want to concur with his

comments. If we decide to determine that

this is a priority for the budget, dollars should be allocated. We need to ensure better oversight process for this moving forward. I want to thank supervisor brown who extended her time in order to be able to be at this hearing because she has public housing

in her district as well. I will take that motion.

>> before we do it, to miss

partly, the reason that it is important it is because -- this

has happened in my experience. The board has come just come

back and said, pay, one -- what unallocated money from previous

budget cycles is out there? We vacuumed that all up and redistributed it after having a policy conversation.

Had I known there was $31 million, we might have had a conversation and said that we want to put it in small sites

acquisition. I realized that the colour of

money is a different colour of money, without is actually conversation that we got elected

to have.

So it's important that you, back in with the 11 of us.

This is an opportunity to do it. >> thank you, again vice chair peskin.

At this time, we have a motion to continue this to the call of the chair and we can do that without objection. Are there any other items before this committee?

>> there is no further abyss -- no further business.

>> meeting is adjourned.