many of the states that have already been taken that led to the significant reduction. this is eric montero from the legal division. he is in a similar boat that i am in that i provided him with the spread sheet and the department's initial response, he did review, and i believe he has been in charge for about a month.

who worked on these because there are a couple of recommendations. i have questions about why we came to that conclusion, what you wanted to move forward with that in a different way and why we thought it was not the best path to follow to fall on that recommendation. supervisor chiu: from my perspective, it is just surprising that you cannot figure at in your department who was working on this before. >> it is just a short time line. i focused on the documentation to be prepared to answer questions about the recommendations today, which was the more significant issue that i was looking at, and whether the failure in the process, who the individual was that prepared the reports, a secondary issue. i was more concerned about being able to answer line item questions, they burn out who worked on this initially, what went wrong, and lastly, how we

are going to follow up with the controller's office to complete it. supervisor campos: if i could just follow up on that. it is really surprising that we do not even know who was overseeing this function within the police department. it is a pretty basic function, right? the city comptroller makes recommendations on how to improve issues that are important. even if there was not the kind of follow up that you wanted, i imagine someone was looking at that. i do not know if it is someone in the administrative bureau -- >> my suspicion is that it was handled by the former chief of staff, who is retired. i do not have that person to ask, who they assigned the staff work to. we are also talking about these

issues from property " -- control division. there are issues with court over time, smaller issues that are in there, so it is likely this was separated out and sent out to a variety of individuals, not unlike what i have done today. so it probably went out to a few different people, and it may have gone through the chief of staff's office, but with the reorganization, retirement, and other things, i met a deficit, time-wise, to get your answers, and i apologize for that. but i was more focused on answering the question for today and moving forward with the comptroller's office. supervisor campos: it may be the answer that it has taken over a year. maybe nobody was actually looking at it. >> it looks like from the

initial response, it was addressed and a plan was put together. the bulk of them seem to be in place, or there are a few being worked on. there were a few were the recommendations were found to be not conducive to making effective change. supervisor campos: thank you. lieutenant, and did you want to add anything? >> good morning. i am the officer in charge of our court and legal liaison unit. i want to share some of the things that we have done since this audit came out last year. one of the biggest improvements we have made is we have gone to a new human resources management system in may 2010. this system provides automated safeguards that directly respond to many of the report recommendations. another big improvement we have made since this audit came out

is the court liaison unit took over in putting all court overtime cards. in the past, district station would in but the cards, but now all are being inputed by and the court liaison unit which provides us " -- additional oversight and accountability, and more efficiency. the third thing we did was part of this audit, one of the recommendations was that we need to create more written policies regarding court over time. this audit had many chapters regarding overtime. i can speak on the court liaison sign regarding court over time, but we have created a seven-page unit order at the court liaison. i have that with me today. we did right 7 department bulletins and 14-page bulletin based on court premium pay, so that our policies are out there, the officers are aware of the

policy, all compliant with the policy. in regards to court over time, 15 recommendations our police department has implemented -- i'm sorry, 12 of these 15. we have gone above and beyond by going to a new human resources management system and centralizing where all of these over time cards are being processed. i am new to legal and i wanted to a knowledge of some of the work that has been done since this audit because we have been working very diligently to comply with all of these recommendations. some of the supervisor pick 4 may have done an outstanding job. i have an officer here who is a subject matter expert in court over time. she has taken over the

responsibility of in putting every over time card for the department. it injures more accountability and making sure we are following all policies of our department. if you have any questions -- supervisor campos: no, thank you. i appreciate that the chief has inherited this. it is unfortunate that we are where we are, but we need to focus on moving forward, making sure we have these systems in place. we are talking about premium pay, overtime pay. those are important issues. i think we need to make sure that we monitor it as closely as we can. thank you very much. i think that concludes the presentations, unless there is a department that i left out? why don't we now open it up to public comment is there anyone

from the public that would like to comment on this item? >> good morning, supervisors. thomas picarello. there appears to be a disconnect with what is happening in the city and what is being presented to you today. let me be specific. at laguna honda hospital, there were two doctors that blew the whistle on the patient gift fund. now, dph is coming before you and telling you that they should only report on a yearly basis, instead of a quarterly basis. two medical doctors lost their positions at laguna honda hospital for identifying fraud and abuse with a patient.

secondly, the presenter from the comptroller's office -- i am sorry, i forgot her name. several days ago, she was referred to the district attorney's office, the ethics commission, and the mayor's office, for willfully violating sunshine orders of the termination regarding lagoon on the hospital and the whistleblower program. i urge you to read the grand jury's report. the whistleblower program out of the controller's office. thank you. supervisor campos: thank you very much. next speaker please. >> good morning. i am walter. this city has the money shining like a silver plane

the goddess of everything i know we want better change city, you have got it yes, city, you have got it. you are ready audit yes, city, you have got it you are the audit you are the city pride and joy the goddess of the city changed and you know i want some better change and i am wanted now i see and you have got it. yes, city, you are the audit you are the city audit you are the god of change and you have got it, keep it green, i mean it

yes, city, you have got it you are the city audit you are the city pride of joy supervisor campos: next speaker please. >> good morning, my name is douglas yepp, and i have lived in san francisco for 59 years. i would like to thank the sponsor for this hearing. it is way overdue, and i would like to offer my own support for having the city services auditor working like a watchdog, rather than -- rather than a lap dog. i was happy to hear the gift fund come up for discussion. the reason why, i would like to recommend to everyone in this room read today's letter to the editor in "the examiner." the title is "sf should keep an

eye on laguna honda gift funds." if there are any further hearings regarding laguna honda hospital, that one person should be invited who would have plenty of information to discuss this mr. patrick shaw. i was disappointed not to see him today. i guess he is tied up or did not realize that it was going to be brought up. for the three members of this committee, i would like to say my standard speech on the three things that everyone should remember about city government. first, and obstruction of justice. second, dereliction of duty. third, abuse of power under the color of authority. if everybody would consider those, i think the city government of san francisco would be in far better shape.

i think you again for having today's hearing. supervisor campos: thank you. next speaker please. >> good morning, supervisors. i am just going to briefly state and i concur with all of the speakers who came before me. section 67.1 in the sunshine ordinance act states of the board of supervisors and the people of the city and county of san francisco find and declare government's duty is to serve the public reaching its decisions in full view of the public. keep the spotlight on everybody. thank you. supervisor campos: thank you. is there any other member of the public that would like to speak? seeing none, public comment is closed. with respect to the items discussed, with respect to the laguna honda gift fund, that

remains an issue that we need to follow up on. i hope there are further discussions between the department and controller's office. i do think the more frequent reporting, the better. so we will bring that item back to make sure that we continue to monitor it. again, this will be an ongoing item that we will bring forward to make sure there is follow-up on responses and compliance with the various audits that have been and will be conducted. colleagues, unless you have any comments, can we continue this to the call of the chair? motion by supervisor farrell. without objection. thank you to the comptroller's office and all the departments and members of the public who have come out. please call items 2 and 3 together.

>> item 2. hearing on the recently published 2010-2011 civil grand jury report entitled "the parkmerced vision: government- by-developer." item 3. resolution responding to the presiding judge of the superior court on the findings and recommendations contained in the 2010-2011 civil grand jury report entitled "the parkmerced vision: government by developer" annual budget. supervisor campos: these are two items that are related. one is the discussion of the report. the second is the resolution that the companies that item -- a company that item. one of the important functions we play as the government and audit oversight committee is to hold hearings and have discussions and respond to the work of a civil grand jury. the civil grand jury plays an important role in the life of the city and county of san francisco i want to begin by thanking the members of the

civil grand jury for their service to the people of the city and county of san francisco. with that, on this item, which involves the parkmerced event project, if i could call on the civil grand jury, who will make a brief presentation on their report. again, thank you for being here. >> good morning, supervisors. my name is linda clarity. i am serving as the foreperson of the 2010-2011 san francisco civil grand jury. despite the supervisor's wonderful remarks about the work of the jury, i think there are a number of people who do not know exactly what we do. i thought i would give you a brief description of that. the california state constitution mandates that every county have a civil grand jury. therefore, there are 58 grand juries in california of varying sizes. the grand jury in san francisco

is comprised of 19 members. i am pleased today that there are several members of the 2010-2011 grandeur with us, and i will ask those members to rise to be briefly recognized. thank you. [applause] i agree. the members of the grand jury report regard for the citizens of san francisco. the purpose of the grand jury is to serve as oversight to the operation of city government. as such, we appoint investigative committees around various topics and then prepare reports each year. this year, we completed seven investigative reports, and in addition, five continuity reports, all of which will be hurt by this body over the next several months. today, we will present our initial report on "the

parkmerced vision: government by developer." i would like to introduce to you now michael, who serves as the chair of that committee, who will present the report for the jury. thank you. supervisor campos: thank you. again, thank you to all of the members of the civil grand jury for their service. >> good morning, supervisors. i hope the committee will indulge me. i could not find a babysitter. i do have some of my fellow jurors who will be helping. hopefully, he cannot be too much of a disruption. supervisor campos: very well behaved. >> michael galnick, chair of the committee that investigated the parkmerced development agreement. i want to start with a couple of

overarching comments. the first would be to say, when you read this report, no where in the report does it say, do not develop. i cannot emphasize that enough. the report was written through the lens of a retired schoolteacher, social worker, two lawyers, a journalist, and a businessman. essentially, a nice cross cut of society. i think when you read this report, you will find the essence of it in one paragraph. at the end of the summary -- and i will read that. the development agreement takes steps to insure continuity of protection for tenants in rent- controlled units, but it is aspirational and inconclusive. only a future court can provide the didn't -- the definitive conclusion.

meanwhile, tenants will live under a cloud of uncertainty, possibly for years. what makes that so important is we could debate all day long about the rights and wrongs of what has been pointed out in this report. the point is, until a court decides, it is all just talk, and that is what we point out. so with that, i will go to the findings of the report, and go buy them one by one. in particular, finding no. 1, no. 4, no. 5, are crucial to the discussion. by not explaining how to override and resolve potentially conflicting provisions of state law, a development agreement does not protect tenants against increases, as it claims.

the second finding is there are no penalties or disincentives from the owner/developer in the agreement, should it choose to abandon the project before completion. it encourages short-term investment and speculation over long-term collaborative development with the city. since the time this report was written, i understand there were some amendments put into the development agreement that creates some disincentives. the jury thinks that that is a step in the right direction. in as much as the city may not be able to legally force the developer to act on its promises, you can make it so that they do not want to renig on those. that is what the disincentives

have done. the third finding, that the owner/developer fails to address the social and financial impact to the parkmerced city tenants, local businesses, and city users, who used the 19th avenue corridor. if, in particular, a developer backs out of the project or sells the project, takes a long time to find another buyer or to resume development, we thought what would end up happening was this already gridlocked corridor would become congested for a longer period of time. we did not find anything in the developer agreement to that specifically mitigates that. the fourth finding is that the development agreement presumes demolition is necessary and does

not offer any alternatives. rather than speak to this as an issue with the eir, we thought it related to the impact of the people living in the area. the fifth and final finding is that the development agreement claims it can provide rent- control protection on newly constructed units under the city tenants stabilization -- rent stabilization ordinance, and that it is uncertain and could be unenforceable. this is the crux of the issue. state laws could override potentially any ordinance that is in place, or would be created. so it may not matter -- is the answer to that. we had one recommendation to the city, and that is to remove

section 2.2 0.2, section h of the development agreement which presents -- prevents the city from making any changes or enacting any other ordnances for the next 30 years of the development agreement. we thought while it solves the business development issue -- the city possible goals for business development, it does not protect the citizens of san francisco very well for the next 30 years. so we think that this would actually be an inhibitor to the city being able to protect its s -- its interests in the next 30 years over the course of development. that is the conclusion of our presentation. if there are questions, i can take them now. supervisor campos: colleagues, do we have any questions for the

civil grand jury? no questions at this point. thank you. i see that our planning director is here, john ram of the plans department. thank you for being here. >> i will say that our response to the civil grand jury report were worked in concert with the other city departments, city attorney's offices, so we have essentially the same response. i do not know if you wanted me to go over that in detail. supervisor campos: in terms of the planning department, director, i know that you have to respond within 90 days. >> actually, my understanding is that the department is required to respond within 60 days. i think we spent -- send our response to a couple of days late.

the commission is defined as a public agency under the code, and is allowed 90 days. so the commission, in fact, has not developed its response yet. a ticket of at the hearing and voted to continue the matter to august 4, which would give them time to respond by august 15. supervisor campos: and the department itself, the same response as other entities? >> that is correct. and if i may, our reading of the report, it largely calls into question some of the legal enforceability provisions of the fa. it does not call into any actions of the department or commission either. that is why we relied on a joint response. it is a series of legal questions about the enforceability of the development agreement itself.

supervisor campos: if we could hear from jennifer mats, head of the mayor's office of economic workforce development. >> thank you. i would also like to thank the members of the civil grand jury for their work on this report. i have a series of comments that i think contextualized our response. i am also happy to read the response. i agree with director ram, the questions and comments raised by the civil grand jury are largely around the legality and enforcement provisions around the d.a. to the extent there are questions about those legal issues, i would refer to the city attorney's office. but i would be happy to provide some context and to also read through our relatively brief responses to the findings.

we believe, as we read the grand jury's report, the stated purpose is to recommend the city and county of san francisco take action to protect the rights and interests of parkmerced tenants before entering into the agreement. we question whether the city can control the red-provision controls of the d.a. the grand jury gives a number of conclusions or opinions about complex legal matters, and we believe respectfully, fails to understand certain aspects of the d.a. the city attorney gave testimony over the rent control provisions of the d.a., and the bears think the city included to bolster enforceability. as you know, this is a complex legal document, negotiated over a long period of time. numerous drafts were placed on the planning department's website. the process started with the

final trinity plaza d.a. and then changes for the protection of tenants. the planning department and my department worked with stakeholders and solicited input of many. everyone involved was most concerned about the tenant relocation provisions and the rent-control provisions and numerous clarifications and revisions were made between the time the draft was reviewed by the grand jury and the date of the report, as well as the grandeur report but before supervisor approval. this is one of the more important point. the grand jury, by the nature of its existence, the work it does, really takes a snapshot. they were provided with a draft of the d.a. which significant change over time, and many of the changes were addressed subsequent to the report being issued.