go off, how do you address them? how do you make them right? >> i spoke about triggers in a couple of different contexts. supervisor cohen: in the context of this about dust and dust monitors. when they go off, what is the process? >> this is article 31. this is the regulation of sub- surface activities at parcel a. when a bus monitor is indicating an excessive level of dust -- these are ordinary dust monitors. these are real time monitors. the employees, the people working, should be person looking at the monitor. there should be a person adding

water or other things to reduce the dust. it is not a very -- you do trading activities. if you adequately wet it, use management practices, if most days except the worst temperature, you can control the dust. there should be a feedback loop. supervisor cohen: i am trying to understand, when violations occur, what is the punishment. what is the punishment? >> this is largely it -- it is supposed to be a self compliance mechanism. the monitors are not related to our violation. we had on site the work of dust control and the use of the monitors. it is something the developer is supposed to be responsible for. if we observe dust that is

unregulated or crossing the boundary for over a certain amount of time, we will issue a violation. supervisor cohen: and a violation looks like a fine? >> it is a written notice of violation. the violation will ask them to take additional actions to increase, on a regular basis -- our violations ask them to do a greater number of things. our goal is not punitive. our goal is compliance, low dust. we ask them to take additional protective actions. after we have had an on-site monitor their -- we had a few violations in the early regulations, a learning experience. after we had a physical presence there, after experience with the regulations, we did not observe violations. we had people there everyday

work was going on. supervisor cohen: in the world of violations, think of the entire department. when there are violations on any level, in a project coming in a clinic, how do you assess punitive damages? >> we will assess punitive damage. the board allows us to assess communicative damage only if a violation -- if our requests are not implemented. our goal is compliance. whether it is a food violation or a bedbug violation, typically, we will have an inspector go out there in the matter should be corrected immediately. we will issue a violation and say do these actions to correct the situation during this time. if our violation order is ignored, it will go to the

directors hearing. the director can issue a penalty only if the regulated party did not comply with what the violation request was. that is fairly consistent across all of our regulatory work. supervisor cohen: i need you to better educate me. maybe you can talk to me a little bit about the -- courtney if i am wrong. a couple of years ago, the department of public health did a fairly thorough analysis on the topic of health as part of san francisco. >> that is ongoing war. in the help the development -- healthy development tools, we have a profile of a view and what is worse than in other neighborhoods. supervisor cohen: can you tell

me about the social and environmental factors which contribute to the health conditions of my neighbors in the bay view -- in bayview? >> there is substandard, poorly maintained housing, public housing and section 8 housing as well as private housing. indoor allergens, smoking within homes, mold, and poor ventilation are all factors. air pollution, interestingly, is not so bad. we have put a very comprehensive monitoring system right in that bayview hunters point at 8 schoolyard. we monitored for many toxins. we found the levels in debut -- bayview were no different than anywhere else in san francisco. chairperson campos: having

completed the hearing, i was wondering if we could file this item. if we could take that without objection, i want to thank the department of public health for being here. i'm want to thank all the members of the public who have sat through this hearing. i want to thank supervisor cohen. i hope you have a good day. madam clark, can you call items two and three? >> hearing on the budget analyst work plan for 2011. item three, motion directing the budget and legislative analyst to conduct audits in fiscal year 2011 and 2012 to evaluate a city policy to develop affordable housing, oversight of housing development, and governments of city museums and the academy of sciences. -- governments and city oversight of museums and the

academy of sciences. chairperson campos: i introduced this. i would like the budget analyst to come up. i see they are here. i see ms. campbell is here. i know there are a number of folks in the audience who are here for this item. once we hear from the budget and legislative analyst, we will give them the opportunity to speak if they would like to speak. but this item essentially, supervisor, is an item that outlines the work plan for the budget and legislative analyst forepeak areas of focus for the coming fiscal year. the two pieces that are outlined here, we arrive that after discussing the item with the budget and legislative analyst. in respect of the last piece, the governance and city oversight of various museums, we

look at the kind of reviews that have taken place and look at what has not been reviewed in quite some time. having some discussion and having a study on how these bodies are being governed at the government's is being provided, the information given to the city is something that would be helpful. as we know, the city has had to step in to help. that is why we thought it would be important. >> i am from the budget and legislative analyst's office. for context, the charter gives the board of supervisors the power of inquiry. that is why we have an audit program. the board rules require an audit of all city departments every eight years, which is not something that happens, but that

is a goal. when we look at of its and -- at audits, we also look city-wide out what audits have occurred over time. we look at a matrix and work with the coordinator's office to maintain those programs. in terms of the work plan, we function on a calendar year rather than the fiscal year. the board of supervisors did approve of our work plan for 2011. we are coming forward now because we have completed all audits we have previously been working on, to put the remaining program for 2011. this is through december of 2011. it also is not the entirety of what we have available in terms of resources. chairperson campos: i was wondering on whether you could say a little bit about that and

what supervisors can do. supervisor farrell: how much is left in terms of hours locked off? where are we going to be with these main ones? >> if these audits are approved, we have about 300 hours left in the bank for the next six months of the year. if these were approved, we estimated they would take about 2000 hours. that would leave 1600 hours remaining, which should be sufficient to take on another project. the motion that goes with this hearing does set a priority. it has been the practice of the board to reset those parties as time goes by. there has always been a tremendous flexibility in terms of the audit program and revising it as we go. supervisor farrell: and to be clear, this is not full fiscal year. >> we are talking about through december. supervisor farrell: at what point are we going to come forward with the next six months

of the fiscal year? >> a new work plan will be -- it would begin in january. that would be the time. supervisor farrell: we will be hearing that later this year, i would imagine. >> that is correct. as i said, we still have availability in this year as well. supervisor farrell: ok. >> in context, what we are coming forward with would be two audits, issues that we have identified. the way we identified this is through our work through an audit matrix and issues we have identified either through the legislative item process or to the budget process. on the first program, we would be looking at the issue of effectiveness of the city's affordable housing policies and the planning commission's oversight of the city's affordable housing goals.

this would be a project that would take 1000 to 1200 hours. the focus would be the planning department and what the planning code requires. however, we would look also at other public agencies in terms of their role in overseeing affordable housing development. when we talk about affordable housing, we are talking about the development of units as opposed to other programs that might make available housing to moderate and low-income people. we are looking at the development process. we would be looking, in terms of the planning department -- they are responsible under state law for the housing element of the master plan. the housing element is to be re- evaluated every five years. they just completed the most recent evaluation of may of this year. that is about the need for housing development in the city. it identifies with the need is. there are also other provisions we would look at in terms of evaluating the effectiveness in

terms of the 11 -- in lieu fees required of residential development. chairperson campos: the reason why we thought it would be important to move this forward is that as you know there is a larger discussion at the regional level in terms of sustainable -- a sustainable communities effort. that is going to create some pretty robust housing and transportation obligations for the region. we want to make sure that as we are moving in that direction, where you are talking about 90,000 units being added in san francisco in the next 30 years or so, we are doing what we are supposed to do under our own code. that is one of the things this is trying to look at. >> that is correct. the association of bay area governments has been developing a plan on sustainable housing. we could look at how san

francisco fits into that. the other piece of this is there are other agencies in the planning department that could play a role, and the mayor's office of housing and the development agencies also play a role. supervisor farrell: you talk about low and moderate income housing. does that also include analysis over what is being phrased as workforce housing in the city? is that going to be part of the audit plan? >> we can discuss that. it would probably be something we would want to include. supervisor farrell: that is something i would definitely like to see as part of it. >> we could certainly make that. chairperson campos: president chiu? i want to thank the president for doing double duty with the budget committee, and to think supervisor farrell, who is been

in this room since 9:00 a.m. because he was on the rules committee before. i know there are a number of representatives from various museums. before i do that, i have a question. is the [unintelligible] >> they are part of the fine arts. chairperson campos: i know there are representatives from the academy of science, the war memorial, the young. i do not know if any of them would like to come up and say anything. the idea is that the scope of these reviews is something that would have to be worked out in consultation not only with the rest of the members of this committee, but in consultation with their respective agencies that will be impacted. so the scope is something that would be worked out in the near future. >> i would like to speak quickly

to that, because i have had an opportunity to speak to the rep this morning in the budget committee. the evaluation of the governments of the museum, to talk about the scope, would be looking city-wide, from a city perspective, to define the role of a city asset and the action of operation by our foundation. the scope would be specific to looking at the city's role, what is their responsibility, the information they received. we have a point that talks about governance structure. some of that is what does the charter say and some vehow are ? i think a much more new ones part of this, maybe where there is concern, it is where we talk about oversight of the governing board. how would we approach that? clearly, this is high level. we are looking at four museums. would have to approach it in a

specific topic on a high level as we talk to the department's. the third piece of this, there is a lot of concern about the asian art museum. it is going forward with an rfp for a management consultant to look at their operation. this is not an unusual situation. often we have a different scope and look at things from a different perspective. both audit plans as defined by the gao, the government accountability office, as well as the controller's office -- we would do that in consultation. we would not be stepping on each other's toes. chairperson campos: great. if anyone would like to come up, they are free to do so. otherwise, anyone from the public who would like to speak, you have two minutes. >> i am a resident. i applaud these audits. i would encourage you to have more audits. secondly, i am a little

troubled by the fact you are auditing the asian art museum, when in january you gave them a $100 million loan guarantee out of the general fund. it seems to me that you should do your audits before you prorate funding to city departments and city agencies. thank you. chairperson campos: thank you. next speaker. >> good afternoon. my name is douglas yen. i would like to think this committee write -- once again for its aggressive stance in doing audits and holding hearings for future audits. it is pretty obvious that since the city is in such dire financial straits every block of money is important, no matter where it comes from, especially blocks of money that are needed by the poor people in san francisco. it is obvious as the economy worsens there are going to be

more people in san francisco. it is even more important that these hearings come about. i think this committee is doing a service for everyone in san francisco to expose and at least discuss different points of view as to how departments are being run. let's put it this way. if the city was well run, we would not need an audit and oversight committee. in fact, a couple of months ago, when i ran into the founder of audit and oversight, even he admitted that the committee in the past had not lived up to its mission. i told him why don't you run for supervisor again. sit on the committee and do the job it should have been doing in the past few years. his reply was it is in good hands now. i hope so. thank you. chairperson campos: is there another member of the public who would like to speak? seeing none, public comment is

closed. on item 3, it is an action item. supervisor farrell: motion to move it forward with recommendation. chairperson campos: without objection? great. thank you very much. madame clerk, can you call item four? and thank you for those of you who were sitting in on this item. this is not an action item. this is just a hearing. >> hearing on the controller /city service auditors work plan for 2011-2012. >> good afternoon. i am peggy stevenson from the comptroller -- controller's office. we have a very few slides to talk about, to remind folks what the city services auditor function is all about. here are copies for the members and the clerk.

and copies for the public. the it citied services office is a creature of the charter. there are mandates we function under. in brief, there is a broad mandate for evaluating city effectiveness and efficiency, and quality of public services. it mandates the internal audit function. there are specific measures of the standards on streets and sidewalks. there is a requirement for a whistleblower program and other mandates. this is a quick list of them. the more complete picture of why we do what we do is the charter mandates, plus everything else that governs the city's business and operation. the ad man code requirement --

administrative code requirement is anything where there is a compliance and financial effectiveness mandate. we may do work in that area. our budget looks like the city budget. our clients are the big departments -- the department of health, the airport, the utilities commission. there is an allowance for auditing control work of this type. we are growing capacity to audit capital programs now. there is more of that work going on. when you take the 0.2% set aside into account, the charts ordered from largest to smallest, the

general fund is the largest department. you can see the others after that. in the roughest sense, our work will be delivered back to departments in the same proportion. i will just talk for a minute or 2 the well above the major areas of the performance of the technical assistance section i run. kenya will talk about a couple of the other major audit areas. the single biggest client is the department of public health. we have very important projects under way and into next year. two of the largest are the effort to integrate primary care and mental health. we are working with them in a more than 18-month process of evaluating the clinics' ability to do that, helping license the staff appropriately, and doing training materials. in substance abuse, it is a

significant area of the expense. we've not had a formal program evaluation in a long time. we started this a couple of years ago and will come to completion on it during this fiscal year, at least the research park. recording will go on even into next year. the number of activities will look at purchasing and revenue operations of the general hospital, preparing them to move into the new building. we have a new program to help the help answered -- and human services agencies that budgets and spends money with cbo's to help them with monitoring nonprofit organizations the city buys services from, to ensure that is done effectively and efficiently. ongoing work on improving citywide contract thing. the next series of steps on the transit effectiveness project, specifically the environmental review. lastly, work on public safety, which restarted when supervisor

compass was still on the police commission. we are still doing projects that are an outgrowth of that. we will also work with other public safety agencies. i am willing to answer any specific questions about activities we will be undertaken. -- undertaking. we will put our plan on our website and distribute it to all of our lives next week. i will turn it over to tonya. >> controller's office. we have four specific areas we are working on, among others. that is a performance audit for an empty day -- for an mta. it was agreed we would look at the varying divisions on a rolling basis. our next division will be the safety, training, security, and enforcement division. the piece we will specifically look at this year is the

enforcement division, simply because the safety training portion and security are undergoing federal and state audits currently. therefore, in the enforcement area, they are handling parking enforcement, transit compliance, a video surveillance, and other items under their jurisdiction. in addition, we will do other work at mta with regards to some of their other operations, such as the garages, which are ongoing compliance audits in our work plan. we will look at burying trash collection points with in the city. -- at varying cash collection points in the city. we looked at this last year due to a management letter issued by our city auditor's for our report. that is in response to that particular management letter.

we, in conjunction with treasury, did a risk assessment of all of the attributes and looked at the 10 highest risk areas. we completed 10 this year and will complete 10 in the next fiscal year. we instituted a payroll audit program to look at are we paying our payroll appropriately according to law, according to our ammo you -- our memo use 00 o -- our mou's. our goal is to revamp -- is to revamp at least six departments. in our capital improvement area, we would like to look at the four different bonds we have. that includes the clean and safe

neighborhood parks and earthquake emergency response. we anticipating -- we anticipate doing quite a bit of work in this area, internally or externally, to have a general look at how our bond money is being spent, looking at our construction and the relationship with our contractors and dpw and various departments. as supervisor camos k -- campos knows, we had other items look that under the was separate -- under the wsip. we have other normal compliance audits that occur, as well as looking at other areas generally in our department, developing also a contract wide audit to determine how we are handling our contract. the couple of years ago, we looked at office depot.

we want to make sure we are administering our contracts appropriately so we will be developing a program that will help us look at 10 to 12 contracts in a limited scope in the coming fiscal year. chairperson campos: colleagues, i do not know if you have any questions. i have one comment, one thing i have learned in finding out more about the work that is being done by the comptroller -- controller's office, the magnitude of how many audits and reviews you have. a thicket is really impressive. -- i think it is impressive and wide spectrum. it makes me feel good to learn as someone who values the importance of accountability that the office has this level of involvement on so many different things. i