City officials cannot work behind the scenes with City contractors to benefit their departments and use other entities to cloak those efforts.". "It's time for me to come home, time for me to be more than a weekend wife, mother and friend," said longtime Bay Area Congresswoman Jackie Speier. Your email address will not be published. The Controller's Office found at least one of these organizations, the San Francisco Parks Alliance, took roughly $1 million in donations from a number of city contractors which were under investigation by the City Attorney's Office for funneling money to the Public Works department for lavish parties, at the behest of former Public Works Director Mohammed Nuru, who was arrested by the FBI in January on corruption charges. No budget was presented to the commission providing the details of what would be spent before the agreement got commission approval, Brousseau said. The San Francisco City Controller's Office found, in a September 2020 report, that the San Francisco Parks Alliance took roughly $1 million in donations from a number of city contractors that were under investigation by the City Attorney's Office for funneling money to the Public Works Department for lavish parties. "Instead of going directly to our city's general fund, the revenue generated from SkyStar is going to a non-profit that is still under FBI and public corruption investigations," said Chan, whose supervisorial district includes Golden Gate Park. Supervisor Chan has a point about potential conflicts of interest. In a statement to NBC Bay Area, the Alliance played up how willing they are to accept any new ethics rules, while not acknowledging any potential for wrongdoing. The audit tracked the money going in and out of the Alliance over a five year period. and Park Department, and I have identified that the subaccount practice is not appropriate and problematic, you have not asked for that information from Rec. What is particularly troubling is the fact that there are a number of companies that do direct business with the Recreation and Parks department that are making donations to the Parks Alliance that are flowing directly back to the Recreation and Parks department and their general manager, Peskin said. The lack of transparency may also allow the Parks Alliance to circumvent good government practices developed by the city, the Budget and Legislative Analyst wrote, including compliance with prevailing wage requirements for contractors and competitive bidding to find lower costs. The Parks Alliance is a major philanthropic backer for the parks and other city departments. Under the terms of its contract with Ferris wheel operator. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. A bicyclist passes the Conservatory of Flowers in Golden Gate Park. "We also found that there was no requirement for how the contractor was selected in this case. The report's authors came away with more questions than answers. 20002023 San Francisco Bay Area Independent Media Center. Bride Killed and Groom Injured by Speeding DUI Driver After Wedding in South Carolina, Police Say, 25-Year-Old Makes $200/Hour Without a Bachelor's Degree: I Work Less Than 6 Hours a Day', San Jose Police Arrest 3 Suspects in Robberies Targeting AAPI Community, Malik Monk's Old Comments Motivated Warriors to Game 7 Win Vs. Kings. The 33-page report follows sprawling investigations into corruption across the city. Nuru and others would direct staff to pay for goods and services for staff appreciation, volunteer programs, merchandise, community support and events from specific vendors, "circumventing city purchasing controls," the report found. Drew Becher, CEO of the San Francisco Parks Alliance, expressed shock at the city's findings. "Instead of going directly to our city's general fund, the revenue generated from SkyStar is going to a non-profit that is still under FBI and public corruption investigations," said Chan, whose supervisorial district includes Golden Gate Park. Now supervisors are looking to find out if there any other similar schemes. The San Francisco Parks Alliance was subpoenaed by the City Attorney's Office last year as part of the city's corruption probe. The new ferris wheel at Golden Gate Park. One example investigators have given of the sort of transparent but still somewhat wink-wink emails and letters they're looking for is one from 2015 in which Public Works Deputy Director for Operations Larry Stringer wrote to Recology inviting them to a department picnic in McLaren Park and asking for the company's "support" in making the event a "success." Back in March, Supervisors Aaron Peskin and Connie Chan said they smelled a rat with this arrangement, though they never really found the rat, so the Ferris wheel was extended another four years, with the Parks Alliance still managing the attraction. "Along with many other nonprofit groups, we continue to work with city departments to meet or exceed these good government controls.". SAN FRANCISCO (KRON) - City Attorney Dennis Herrera announced on Wednesday that several subpoenas were issued as part of a joint public corruption investigation. Efforts to keep the wheel up received yet another setback during Tuesday's Board of Supervisors meeting, when both supervisors Aaron Peskin and Connie Chan called on the city controller and Budget Analyst's Office to conduct an investigation into the San Francisco Parks Alliance's contract with the city's Recreation and Parks Department, which allows profits generated by vendors like SkyStar to be directed to the San Francisco Parks Alliance. "It raises the question of whether this is a good government practice and whether such practices contribute to the 'pay-to-play' culture among city agencies. The Parks Alliance is a major philanthropic backer for the parks and other city departments. A total of 10 subpoenas . Without more detailed oversight, the audit found, this benefit of philanthropic support risks being overshadowed by the possibility of corruption.. The audit found the alliance took in $44 million overall, $3.5 million of which was donated anonymously, so about 8% of the money they rake in is donated anonymously. At the time, U.S. Attorney David Anderson commented on the allegations by saying, "corruption is pouring into San Francisco from around the world." . A visibly mentally ill suspect, who just a month earlier had been jailed for a terrifying incident in which he entered the home of a disabled woman, was arrested again in August following another highly disturbing incident outside a school. The SF Parks Alliance is a Friends of-type outside nonprofit that raises money or provides philanthropic services on park-related matters, donating money back to the city's Parks and Public Works departments for various projects. The Historic Preservation Commission is expected to vote on whether to extend the contract through 2025 at its next meeting on March 3. And that is precisely the sort of structure that allowed Mohammed Nuru to bilk a $1 million slush fund out of the Parks Alliance, as the City Controller discovered in September 2020. However, it has since agreed to new restrictions on fundraising activities that require it to disclose all contributions of more than $100. In an aerial view, the SkyStar Wheel in the Music Concourse carries riders at Golden Gate Park on June 14, 2021, in San Francisco. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Call (415) 706-6428 for information about advertising online and in the printed versions of the Richmond Review and the Sunset Beacon newspapers. The report criticized the park department for picking a vendor for the wheel without a competitive process and giving the Parks Alliance a cut of ticket sales to help cover the cost of the celebration, which totaled more than $1 million. In that span, the non-profit took in $44 million, including an estimated $3.5 million in anonymous donations, the audit concludes. and Park since 2003, starting with the Conservatory of Flowers. Related: Parks Alliance Pushes Back On Accusations, Tells Supervisor Chan to Kiss Richmond Playground Goodbye [SFist]. To learn more about how we use your information, please read our privacy policy. "Adequate controls against the possibility of corruption and financial transparency were found lacking in our review of key agreements between the two organizations from recent years," the report reads. The latest subpoenas also reflect the ongoing probe into the city's dealings with two businesses run by city contractor Florence Kong, who was charged by the U.S. Attorney's Office in early June with lying to investigators about gifts she allegedly gave to Nuru. The audit has confirmed a very problematic relationship between the San Francisco Parks Alliance and city departments, Chan told NBC Bay Area, particularly with the San Francisco Recreation and Parks Department.. City officials studied the nonprofit last year after it came to light that former Public Works Director Mohammed Nuru, now charged with fraud, funneled donations from would-be city contractors into an account at the organization that he used to pay for staff perks. But its more of a potentially problematic relationship, as the report found no smoking gun, and the alliance has since agreed to not accept anonymous gifts of $100 or more. But the board says more transparency is necessary to ensure another type of green money isn't changing hands improperly. What are the names of their anonymous donors? In a statement, Recreation and Parks officials denied wrongdoing. The lack of transparency in those finances leaves the possibility of a pay-to-play culture to flourish in the shadows, the supervisors said Thursday. Abrupt closure of S.F. Supervisors Connie Chan and Aaron Peskin Call for Investigation on SF Parks Alliance . Get all the latest & greatest posts delivered straight to your inbox, Ongoing FBI Corruption Probe Hits Three More SF City Departments With Subpoenas, charged by the U.S. Attorney's Office in early June, re-arrested and the complaint against him and Bovis made public, Feds Charge Three More People Linked to Mohammed Nuru and City Hall Corruption Probe, Big-Money SF Tech Groups Hoping To Steer Friendlier Policy Toward Big Money and Tech, Board of Appeals Weighs In on Saga of Vacant, Apparently Unclaimed Mission District Lot, Tells Supes to Act, SF Supes Overturn Their Own Ban On Doing Business With States With Discriminatory Laws. "This is a city of riches," she said during Thursday's committee hearing. A new report from the San Francisco City Controller's Office, in conjunction with the City Attorney's Office, skewers a system where city departments like Public Works form relationships with nonprofit organizations that raise philanthropic dollars for issues related to that department, saying it's rife with opportunity for corruption. and Park Department as well and I also have yet to receive that information.. While philanthropic organizations provide tangible benefits to all of our residents, abuses in these relationships undermine the important role they play," said Controller Ben Rosenfield, in a statement. The organizations employees havent been charged with any crimes, and the recent report found no evidence of wrongdoing, although the report author said the purpose wasnt to investigate corruption but the processes in place to minimize its possibility. The Parks Alliance said in a statement Monday that it appreciates the citys work to strengthen transparency and accountability between nonprofit organizations and the City of San Francisco. Along with many other nonprofit groups, we continue to work with city departments to meet or exceed these good government controls, the Alliance said. And, wouldn't you know it, 88 percent of the money comes from just two sources: $131,948 from Recology and $721,250 from the San Francisco Clean City Coalition, a nonprofit. Those undisclosed donations, the analysis found, raise questions about potential conflicts of interest. The analysis found that the problem of not knowing who contributed is that there is no way to determine if the contracts were being awarded ethically. Our track record is clear. Here are five key structures that need to bounce back to help the city recover. Thank you to Mr. Pendergast for this article. The subpoenas request information related to any donations or payments the companies made to charities affiliated with Bovis, to the San Francisco Parks Alliance or the San Francisco Clean City . The move followed a city report last week that investigated the relationship between the park department and the nonprofit. While no formal accusations have been made, Chan's subpoena comes in the wake of an ever-unfolding corruption scandal that has ensnared four city department heads since early 2020. So I defer to the city attorney who oversees those contracts, Farrell said. and Park Department and Parks Alliance, it seems to me that General Manager, Phil Ginsburg, had decided to double down.. But recent revelations have demonstrated that the opaque nature of several organizations, including the SF Parks Alliance, has aided and abetted corruption within San Francisco government.". A new audit calls for greater controls over the San Francisco Parks Alliance, the major non-profit group named by federal prosecutors last year as helping to foster the city's public. How does the group use city funding it's granted? Musical Helps Lafayette Bounce Back After COVID, Richmond Review Crossword Puzzle #12, May, 2023, (Spiral): Solution, Richmond Review Crossword Puzzle #12, May, 2023 (Spiral), Designer, Builder Creates Comfortable Works of Public Art, https://richmondsf.salsalabs.org/froghop2023/index.html. Last year, a report by the City Controller's Office into ongoing corruption within city departments revealed that departments like Public Works engaged in relationships with nonprofit organizations to encourage large donations by contractors seeking lucrative city contracts. Im relieved to know Supervisor Chan and others are requiring transparency from our City agencies, especially SF Rec and Park. The audit has confirmed a very problematic relationship between the San Francisco Parks Alliance and city departments, said city Supervisor Connie Chan about the findings of the review, particularly with the San Francisco Recreation and Parks Department.. Breed's order also requires more transparency from city officers in accepting gifts. The city's corruption scandal investigation is ongoing. San Francisco City Attorney Dennis Herrera on Wednesday announced that his office issued eight new subpoenas as part of the corruption investigation in the wake of the criminal charges filed . SF supervisor subpoenas parks nonprofit in wake of report that calls for stronger controls, S.F. This corruption is part and parcel of the sell off of Golden Gate Park. It will be interesting to see what information is uncovered. necessarily endorsed by the SF Bay Area IMC. That's the problem we are talking about here.". is a partnership between the San Francisco Recreation & Park Department and SF Parks Alliance to transform 13 of San Francisco's most timeworn playgrounds into dynamic hubs for creativity and family life. The San Francisco Parks Alliance has declined several interview requests from NBC Bay Area but said in a statement it was cooperating with investigators. Downtown S.F. The risk here is that when city contractors or building permit applicants or holders donate to non-city organizations, it can create a pay-to-play relationship, or the appearance of one. The parks department said in a statement that its integrity and transparencyis unimpeachable., We are proud of our conduct as public servants and our adherence to all city laws and ethical guidelines. A memo from the park department sent Thursday to the report author said staff appreciate the need for transparency and already follow the city controllers guidance on accepting grants and gifts. Chan blasted the agreement, saying it perpetuates inequity by creating another paid attraction in a public park. That corrupt slush fund really just a minor piece of the wider public corruption scandal put a dark cloud over the Golden Gate Park's SkyStar Ferris wheel, because the Parks Alliance gets. "We will implement any additional common-sense policies that provide greater transparency and allow us to continue to support and improve San Franciscos parks and public spaces," the organization said in a statement. A memorandum of understanding between the city and the Parks Alliance lays down some requirements for how they operate, and was retooled to strengthen some reporting requirements in 2020 in the wake of the citywide corruption scandal, but the Budget and Legislative Analyst still recommended it be strengthened. San Francisco's Board of Supervisors issued a subpoena Thursday to obtain financial records between a parks-supporting nonprofit, the San Francisco Parks Alliance, and the San Francisco Recreation and Parks Department. People thought that what they're donating to is a scholarship fund, she said, but the money instead allowed Parks Alliance to create a slush-fund account to allow the executive staff of the Recreation and Parks Department to use and tap into those funds for whatever it is, at their leisure.. "These so-called 'friends' groups don't have an entirely friendly history. Golden Gate Park officials and members of the Parks and Recreation commission are getting tickets worth hundreds of thousands of dollars to the Lands End Festival as a payoff for their take-over of large parts of the Park. Separately, Chan has challenged a deal the city struck that guaranteed the alliance not the city -- proceeds from a five year deal to operate the 150th Golden Gate Park anniversary Ferris wheel. They said while the bulk of the money raised went for scholarships, about 20% of the crab feed proceeds went for Recreation and Parks operational costs, including girls baseball leagues, World Cup soccer viewings, training retreats and worker appreciation events. Get all the latest & greatest posts delivered straight to your inbox, Audit Finds $3.5 Million In Anonymous Donations to SF Parks Alliance, Calls Out 'Potential Conflicts of Interest', Ferris wheel was extended another four years, Parks Alliance Pushes Back On Accusations, Tells Supervisor Chan to Kiss Richmond Playground Goodbye [SFist], Big-Money SF Tech Groups Hoping To Steer Friendlier Policy Toward Big Money and Tech, Board of Appeals Weighs In on Saga of Vacant, Apparently Unclaimed Mission District Lot, Tells Supes to Act, SF Supes Overturn Their Own Ban On Doing Business With States With Discriminatory Laws. SAN FRANCISCO - As a discussion by city officials around whether to keep a 150-foot tall Ferris wheel at San Francisco's Golden Gate Park continues to go in circles, two city supervisors on. We are 100% volunteer and depend on your participation to sustain our efforts! Haney called Public Works actions "inappropriate behavior" and said the department "is clearly out of control." SF Rec and Parks is a city department that manages and maintains our parks. The Parks Alliance is also a contractor that runs the Conservatory of Flowers in Golden Gate Park, which left a lot of opportunity for conflict of interests, the report author said Thursday in the hearing. She is already co-sponsoring a measure that would prohibit city officials and employees from soliciting payments from people who could benefit from business. During a hearing Thursday, Supervisor Connie Chan with the support of two other supervisors issued a subpoena to the Parks Alliance to find out how many, if any, similar accounts the Recreation and Park Department has, and to report expenses and transactions dating back five years. but even at the lower levels it can lead to more of a culture of corruption where contractors have cozy . In San Francisco, that goes double for nonprofits that call themselves "friends.". "San Francisco ranks No. The documents show that in 2019, more than $64,000 that had been raised by the Crab Fest fund was transferred into a general fund. Thats great, said Chan. The Parks Alliance, a major non-profit dedicated to bettering the citys parks, became ensnared in the citys ongoing corruption scandal involving Public Works. One of the subpoenas, sent to the citys custodian of records in early May, for instance, is seeking any and all "invitations, posters, fliers, announcements and programs" pertaining to any "holiday party, picnic, breakfast, award or recognition ceremony" for the City Administrators Office or Public Works over the last 10 years. Meet the team of park lovers and advocates who work to ensure that all parks and public spaces in San Francisco are vibrant, welcoming, and accessible to all, from Little Hollywood to Lands End. She ordered a budget analysts office audit into the organization, which NBC Bay Area reports found $3.5 million in anonymous donations to the group, which is not proof of wrongdoing, but raises questions about potential conflicts of interest, according to the audit. I think that is a critical piece of information, dont you think, for us to obtain? said Chan. Last year, a report by the City Controller's Office into ongoing corruption within city departments revealed that departments like Public Works engaged in relationships with nonprofit organizations to encourage large donations by contractors seeking lucrative city contracts. And that wheel, apparently, is still going round and round. A widening S.F. Publish your stories and upcoming events on Indybay. Financial transaction records between the San Francisco Recreation and Park Department and the non-profit San Francisco Parks Alliance are now the focus of a subpoena, after a unanimous vote by the Government Audit and Oversight Committee of the San Francisco Board of Supervisors. Email: mallory.moench@sfchronicle.com Twitter:@mallorymoench. Mallory Moench is a San Francisco Chronicle staff writer. The park departments memo said, For the most part we welcome the recommendations in the report and many of them are generally in place through the (memorandum of understanding) or existing policy.. The organization said Friday that its books are totally open and available, and it would gladly provide park department records, which the city hasnt requested previously. The supervisor and the organization have clashed before. The development of the tennis courts went over $400,000 which the City has to pick up. This raised a lot of questions, said City Supervisor Connie Chan, who has been a vocal critic of the Parks Alliances role in city politics. No problem, Chan said. Stay up to date! Jay C. Barmann is a fiction writer and web editor who's lived in San Francisco for 20+ years. The BLAs Director of Policy Analysis Fred Brousseau told the Committee that the Parks Alliance has had a relationship with Rec. We are zooming in to really look at a very problematic relationship that a non-profit named San Francisco Parks Alliance has with our city departments, but specifically with our Recreation and Park Department, said District 1 Supervisor Connie Chan, who called for the hearing. The closure of a growing number of spaces at the park for private corporate events is pushed by Mayor London Breed and the Park director who say they don't have enough money to fund the park. At a hearing last year, Lisa Bransten, director of partnerships for the parks department, said Parks Alliance backing certainly played a part in boosting job satisfaction to 86% among the staff. Chan then called on the Committee to issue a subpoena to the SF Parks Alliance for more information, including the number of subaccounts they have with Rec. It was a sole-source selection, there's no competitive bidding by the department," Brousseau said. But recent revelations have demonstrated that the opaque nature of several organizations, including the SF Parks Alliance, has aided and abetted corruption within San Francisco government.". The lack of transparency in the deal to bring the Ferris wheel to Golden Gate Park exposed the growing corruption by the Park managers and the Mayor with private contractors. "We have issue with the way the vendor was selected. Those nonprofits have looser transparency requirements, creating a "pay-to-play" environment where city department heads could potentially ask city contractors they oversee to donate to the nonprofit, creating a risk that department head would be influenced by that spending when deciding to award multi-million-dollar city contracts. Peskin worries that the Crab Fest event could allow for an end run around city ethics rules that otherwise restrict direct contributions to city officials by firms doing business with the city. The sell off and privatization of Golden Gate Park is escalating at the same time of a massive corruption scandal of top officials of the City and County of San Francisco. Even so, Supervisor Aaron Peskin has joined Chan in questioning the ethical implications of shifting money from a scholarship fund to a separate pot controlled by parks officials. Haney argued this also showed a clear need for his ballot measure Proposition B in San Francisco, which would create an oversight body for Public Works, and place some of its street maintenance duties with a new Department of Sanitation and Streets. Chan is exploring every legislative tool possible to implement recommendations. The nonprofit could then disburse those funds to be used for city staff appreciation parties in ways that would have otherwise violated city law if done transparently or on pet projects of that department head.
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