We are putting a stop to it, City Attorney Dennis Herrera said, in a statement. 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. 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. That general fund had paid more than $5,000 in costs associated with the parks department staff retreat held in 2018 at Cavallo Point, The Lodge at the Golden Gate. 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. The nonprofit San Francisco Parks Alliance is being scrutinized again in the wake of the city's corruption investigation, and a supervisor who's criticized the group in the past now wants to look more closely at its operations. City department heads will now be required to reveal when they solicit donations to nonprofits like the "friends of" organizations and for city departments to formalize their relationships with these nonprofits, which would legally require those groups to boast greater transparency. A city controller report last year called out the connection between the Parks Alliance and the park department after discovering Nurus $1 million slush fund. Although last week the Recreation and Park Commission approved the contract with SkyStar to continue operating the Ferris wheel at the park for four more years, the Historic Preservation Commission has the final say around whether the wheel will stay up. So I defer to the city attorney who oversees those contracts, Farrell said. "Certainly, some of these groups are operating above board. and Park to see if they actually have subaccounts with Parks Alliance or not, Chan said. Other agreements lack prohibitions against conflicts of interest. Supervisors Connie Chan and Aaron Peskin Call for Investigation on SF Parks Alliance . 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. She said from July 2015 through January 2020, we found that Public Works paid eight contractors a total of $572 million through contract purchase orders or other voucher payments. 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 are 100% volunteer and depend on your participation to sustain our efforts! Related: Parks Alliance Pushes Back On Accusations, Tells Supervisor Chan to Kiss Richmond Playground Goodbye [SFist]. "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. Since then, multiple department heads and other figures have been embroiled in this, including Nuru's girlfriend, Sandra Zuniga, who serves as director of the Mayors Office of Neighborhood Services; and Tom Hui, the former head of the Department of Building Inspection who went on leave in March. The SkyStar Observation Wheel was installed last year as part of the park's 150th anniversary just as the COVID-19 pandemic began. The Parks Alliance, a major non-profit dedicated to bettering the citys parks, became ensnared in the citys ongoing corruption scandal involving Public Works. The BLAs Director of Policy Analysis Fred Brousseau told the Committee that the Parks Alliance has had a relationship with Rec. The net encircling former Public Works director Mohammed Nuru has now ensnared more entities in The City's ever-growing corruption scandal. But that leaves some of their methodologies in the dark, the Budget and Legislative Analyst's report found. The ongoing federal investigation into corruption at San Francisco City Hall has reached into the City Administrator's Office, the Planning Department and the Department of Public Health,. Of the $720,000 that (SF) Parks Alliance paid to vendors, more than half went to just five vendors. Are we now setting ourselves up for a two-tier system for those who can pay to play, literally, and for those who cannot afford access to our public space? Chan asked. Much of that spending from the subaccounts were related to staff appreciation, including department initiatives with volunteers and merchandise, generally at Public Works direction. 20002023 San Francisco Bay Area Independent Media Center. Parks Alliance threatens to pull funding for Richmond District playground, S.F.s deal for the Golden Gate Park Ferris wheel may be investigated amid neighborhood fight, Downtown S.F. 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. The money is used to renovate the city's treasured green spaces large and small for example, erecting a towering Ferris wheel in Golden Gate Park and laying down AstroTurf at Merced Heights Playground. The City Controller's Office and City Attorney's Office report into city ethics is the second to be released this year. but even at the lower levels it can lead to more of a culture of corruption where contractors have cozy . 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. This program looks at the "non-profits" that are being used to facilitate the transfer of public lands at the park to privatizers. But the supervisors were concerned that the public simply doesn't have enough information from the Parks Alliance to verify that fact on their own. 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 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. But Supervisor Chan is not done with the Parks Alliance yet. "We have issue with the way the vendor was selected. And what about the Ferris wheel in Golden Gate Park? 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. Former City Attorney Dennis Herrera first issued subpoenas investigating the Parks Alliance in early 2020, also in connection with the ongoing corruption scandal. Supervisor Chan was bullied by the Parks Alliance for calling for an audit of this corrupt agency which is privatizing Golden Gate Park. Chan asked her if she had any information that Rec. 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. It also isn't the first time the Parks Alliance and Supervisor Chan have clashed in public. 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. The City Attorney's Office's simultaneous investigation has already revealed a relationship between former Public Works director Mohammed Nuru and local entrepreneur Nick Bovis, in which Bovis appears to have taken donations from his charity (Lefty O'Doul's Foundation for Kids), given by city contractors, and funneled them to cover DPW holiday parties. In this arrangement, the non-city organization serves as an intermediary between the City and the contractor or building permit applicant or holder who donates money to the organization in the hopes of influencing the Citys contractor permit approval process. All told, the report found that 33 out of 56 San Francisco city departments benefit from these kinds of nonprofit organizations, which between them have 588 accounts spent on city activities. (Beth LaBerge/KQED) It often pays to have friends in high places. The report further alleged the San Francisco Parks Alliance accepted some $1 million in donations from contractors under investigation by the City Attorney's Office and the money was then funneled back to DPW to pay for lavish parties. Tagged as: Audit Committee, Richmond District, Richmond Review, SF Board of Supervisors, Sunset Beacon, Sunset District. 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. Your Privacy Choices (Opt Out of Sale/Targeted Ads). 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. 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. "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. 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. At the time, U.S. Attorney David Anderson commented on the allegations by saying, "corruption is pouring into San Francisco from around the world." . Money was deposited into the account by Recology executives as part of a bribery scheme and was allegedly used to fund lavish parties. and Park, but we only assessed Public Works subaccounts, Sobrepena responded. So, knowing that it actually does have a close relationship with the Rec. Jay C. Barmann is a fiction writer and web editor who's lived in San Francisco for 20+ years. How does the group use city funding it's granted? 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. A Recreation and Parks Department spokesperson told the supervisors that the agency follows all codes and laws. 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.. When the San Francisco Recreation and Parks Department pitches in its own money, are they getting the most bang for their buck? and Park has a similar practice with subaccounts involving the SF Parks Alliance. That is why I am calling for an investigation focusing on this agreement and SF Parks Alliance practices," she said. is the city's financial engine and it is sputtering. This corruption of these officials is being covered up by the SF City Attorney and other officials. Spokesperson Tamara Aparton pointed out the department was the only one to complete a memorandum of understanding with an outside organization as mandated by the mayor last year. "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. Email: mallory.moench@sfchronicle.com Twitter:@mallorymoench. 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. 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. These subaccounts really operated like a city account, she said, because invoices were directed and approved by Public Works employees and tracked by both Public Works and the Parks Alliance. I've long had questions about the Parks Alliance and their practices Peskin said. While City Administrator Naomi Kelly has not yet been named in any of the subpoenas, her husband, SF Public Utilities Commission General Manager Harlan Kelly, has, per the Chronicle. "When gifts are solicited from those that do business with the City, it creates a risk to fair and transparent public processes. Now it looks like the feds are following up on this pattern and trying to see if there are more examples of city vendors possibly disguising bribes that benefited city employees as charitable gifts. The Parks Alliance wrote a letter to Chan earlier this year threatening to pull $2 million in funding for a Richmond District playground in response to her statements about their alleged wrongdoing. Just last week, two city contractors pleaded guilty to bribing Nuru with the construction of his vacation home and a $36,000 gold Rolex watch in exchange for help in obtaining city contracts. 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. Your email address will not be published. "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. That meant it wasnt clear who donated dollars that ended up in city coffers. 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. . Sign up for NBC Bay Areas Housing Deconstructed newsletter. At the same time, the non-profit reaped $11.9 million in city payments. Chan explained that she thought it worthwhile to get this information in the hope of avoiding the possibility of continuing practices with the potential to encourage corruption. 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. 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. 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. 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Now after nearly a year, the wheel is scheduled to be removed at the end of March, but a proposal seeking to extend the wheel's stay for four more years in order to help SkyStar "offset financial hardship" has yet to be decided by the city's Historic Preservation Commission. . As the Chronicle reports, Bovis's foundation is named along with Recology and the San Francisco Parks Alliance as entities the feds are seeking mentions of in all meeting notes, minutes, and communications from these city departments. During a hearing Thursday, Supervisor Connie Chan issued a subpoena to the Parks Alliance to find out how many, if any, similar accounts the Recreation and Park Department has. But they're also rife with opportunity for abuse, the report found. "San Francisco ranks No. These purchases would then be reimbursed through Public Works accounts held by the Parks Alliance "outside of city purchasing rules."