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. It concluded, 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.. 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. 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. At the same time, the non-profit reaped $11.9 million in city payments. 2023 FOX Television Stations, High Stakes: Sports Betting in California, American children missing in Mexico: State Department 'aware of reports of 2 missing US citizens', TikTok CEO to tell Congress video-sharing app is safe, urge against ban, Man survives shark attack off Hawaiis Big Island, officials say, Woman lucky to be alive after 2 trees fall on her Oakland home, America's first-ever tornado forecast issued 75 years ago at Oklahoma's Tinker Air Force Base. 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 citys public corruption scandal by managing an off-the-books contractor fund that Public Works officials tapped to pay for employee parties and swag for city workers. Parks Alliance spokesperson Juliana Bunim said in a statement Thursday that the group appreciates "all ongoing efforts to strengthen transparency and collaboration between nonprofit. The report's authors came away with more questions than answers. The idea is to avoid arrangements like the one Nuru and other Public Works employees had with the nonprofit San Francisco Parks Alliance and Recology, the trash-hauling giant that holds a monopoly on garbage collection in San Francisco. 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 recent report recommended the park department establish a new conservatory agreement, report the budget for the anniversary celebration, and require the Parks Alliance to competitively select contractors and prohibit picking those who have a personal relationship or who have donated to the department or the organization. The Department of Building Inspection issued 218 building permits to seven of those entities. wine startup leaves customers with thousands of Steph Curry adds to his Warriors legend by lighting up Kings for 50. 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. Thats great, said Chan. Fighting Fentanyl: CHP, Cal Guard Get to Work in San Francisco, Oakland Teachers to Begin Strike on May 4 if Agreement With District Isn't Reached, 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. Those city contractors include the SF Clean City Coalition, Recology, PG&E, Clark Construction, Webcor Construction and Pankow Construction. 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. For a Richmond neighborhood playground, for instance, the $3 million budget was completely opaque, said Fred Brousseau, from the Budget and Legislative Analyst's office. Sign up for our daily newsletter. We are 100% volunteer and depend on your participation to sustain our efforts! 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 Tuesday called for an investigation into the San Francisco Parks Alliance the nonprofit group that oversees the Ferris wheel's contract. The Parks Alliance serves a unique role in this, raising money for some projects and selecting contractors, a role often served by government agencies. Money was deposited into the account by Recology executives as part of a bribery scheme and was allegedly used to fund lavish parties. This corruption of these officials is being covered up by the SF City Attorney and other officials. 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. Publish your stories and upcoming events on Indybay. Supervisor Chan has a point about potential conflicts of interest. 9 of the 13 playgrounds are now completed, and the last 4 will be transformed by the end Also, notably, this is the first-ever use of a new subpoena power the board crafted for itself in 2020, in a law written by Supervisor Aaron Peskin. 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. It will be interesting to see what information is uncovered. needs these 5 sites to thrive so the city can recover. Chan is exploring every legislative tool possible to implement recommendations. But they're also rife with opportunity for abuse, the report found. No problem, Chan said. 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., Copyright 2023 NBCUniversal Media, LLC. 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 Tuesday called for an investigation into the San Francisco Parks Alliance -- the nonprofit group that oversees the Ferris wheel's contract. No Parks Alliance officials have been implicated in the probe. The non-profits running large parts of the park are now directing the development without public participation and their privatization agenda is supported by Mayor London Breed and her Parks and Recreation Director Phil Ginsberg. Here are five key structures that need to bounce back to help the city recover. That's the problem we are talking about here.". During this same period, these entities donated $966,000 to the Public Works subaccounts at the Parks Alliance, she elaborated. A California man is forced to live in a country hes never known, Warriors lean into championship DNA, beat Kings behind sublime Curry, Your Privacy Choices (Opt Out of Sale/Targeted Ads). 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. The sell off of Golden Gate Park by privatizers is a danger to the future of the public park according to those who have been fighting to protect the park. Of the $720,000 that (SF) Parks Alliance paid to vendors, more than half went to just five vendors. 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. Just who has influence in renovating parks, and where, is a chief concern, said Supervisor Connie Chan, the lawmaker who requested the subpoena during a hearing of the board's Government Audit and Oversight Committee. We did not benefit in any way nor had any control over the donations that Nuru and Public Works solicited and directed to the sub-account, as the report states. These payments either went to vendors for the purchase of goods and/or services, or were payments to individuals, primarily city employees, who were reimbursed for costs they had incurred, she said. Get the latest posts delivered right to your inbox. The Parks Alliance, a major non-profit dedicated to bettering the citys parks, became ensnared in the citys ongoing corruption scandal involving Public Works. When they're working as they're supposed to, these "friends of" organizations may help put on an outdoor movie night for the public or help build park trails. but even at the lower levels it can lead to more of a culture of corruption where contractors have cozy . Im relieved to know Supervisor Chan and others are requiring transparency from our City agencies, especially SF Rec and Park. Chan said she was disappointed with the reports about Nurus and the Public Works relationship with SF Parks Alliance, plus she was concerned that instead of pausing that type of agreement between Rec. 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. The Parks Alliance is a major philanthropic backer for the parks and other city departments. and Park Department.. Chan said she was worried the influence of money could determine exactly who gets to have parks built in the city, and where, citing equitable access as a key priority. Supervisor Matt Haney also plans to introduce legislation next week that will go further than the mayor's order, explicitly banning department heads from asking any person or party doing business with their department for donations, among other changes. The new ferris wheel at Golden Gate Park. The audit says those contracts need to adhere to basic city contract standards to prevent conflicts of interest. We are committed to working with the City so that we can continue to improve our parks and public spaces. 20002023 San Francisco Bay Area Independent Media Center. 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. Haney called Public Works actions "inappropriate behavior" and said the department "is clearly out of control." 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. An auditor with the City Controllers Office, Amanda Sobrepena, told the Committee that from 2015 through 2020, the SF Parks Alliance received $11.9 million from multiple city departments and serves in this role for both SF Public Works and Rec. Although the wheel was eventually able to open in the fall at limited capacity, a surge in cases halted operations after just five weeks. And Parks Alliance Board Chair Liz Farrell said, "I want to also just to be clear on the record, and say that the Parks Alliance has not been accused or found to be involved in any wrongdoing as part of the investigation into the government corruption.". Nuru recently pleaded guilty to wire fraud and is awaiting sentencing. Email: mallory.moench@sfchronicle.com Twitter:@mallorymoench. SF supervisor subpoenas parks nonprofit in wake of report that calls for stronger controls, S.F. The Department of Public Health has been dragged into this apparently in connection with a facility that was built at 2401 Ingalls Street, just north of Candlestick Point, by Kong's construction-waste management firm SFR Recovery. The Parks Alliance, a major non-profit dedicated to bettering the city's parks, became ensnared in the city's ongoing corruption scandal involving Public Works. We are putting a stop to it, City Attorney Dennis Herrera said, in a statement. Community gardens in San Francisco For 40 community gardens run by the city, the city's park department has developed detailed guidelines for the size of plots, waste removal and organization structure. The City Attorney and District Attorney have failed to investigate and prosecute the privatizer's funding of Park and Recreation Director Phil Ginsberg and his managers. 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. 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. Chan asked her if she had any information that Rec. Stay in touch. All rights reserved. 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 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. It's the breakdown of the sources of the money siphoned into the funds Nuru controlled at the Parks Alliance. The probe stems from federal. Required fields are marked *. 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. Supervisors delayed voting Thursday on three city agreements to accept and spend more than $7 million from the Parks Alliance until Chans questions are answered. A bulk of the report focused on the Parks Alliance agreement to fund the Golden Gate Park 150th anniversary celebration and get some revenue from the Ferris wheel, which came under fire this spring from Chan. Chan blasted the agreement, saying it perpetuates inequity by creating another paid attraction in a public park. 1 in its park investments in the nation, dollars per capita," Chan said. They report on how this privatization is taking place and the threat this is to public access and the need to stop the transfer of the park into a commercial profit center for developers with non-union workers and a lack of health and safety protection. As approved in 2000 by the public, $150,000 is allocated annually for a period of thirty years toward community gardens. The City controls the contracts and we follow the terms of the contracts, so there is a lot of information that came out that is really a City issue. City officials cannot work behind the scenes with City contractors to benefit their departments and use other entities to cloak those efforts.". . City Attorney Dennis Herrera issued subpoenas investigating those same city contractors in February, in connection with the ongoing corruption scandal that first ensnared Nuru, but has only grown in the following months. When the San Francisco Recreation and Parks Department pitches in its own money, are they getting the most bang for their buck? 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. The BLA (Budget and Legislative Analyst) report that you will see later today will actually validate what we thought all along; that there was a lack of adequate controls against the possibility of corruption and financial transparency between the Parks Alliance and the Rec. Mallory Moench is a San Francisco City Hall reporter. I also wanted to say that, throughout this whole process, we are committed to being transparent. "Certainly, some of these groups are operating above board. San Francisco's Parks Alliance and Recreation and Park Department are both facing scrutiny from District 1 Supervisor Connie Chan about their use of donations, after subpoenaed records were made public in an NBC Bay Area news report. 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. Prosecutors say Nuru used the fund to pay for everything from T-shirts to gift bags, from funeral expenses for a worker to event entry fees for public works teams. SF Parks Alliance is the only city-wide parks nonprofit in San Francisco. But the board says more transparency is necessary to ensure another type of green money isn't changing hands improperly. 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. 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. So I defer to the city attorney who oversees those contracts, Farrell said. 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. The City Controller's Office and City Attorney's Office report into city ethics is the second to be released this year. 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. "We have issue with the way the vendor was selected. Photo: Keith Crook. Now supervisors are looking to find out if there any other similar schemes. A widening S.F. While the city appreciates and wants the donations the public deserves to know where the money is coming from and whether or not someone is buying influence in our city government.. The probe stems from federal criminal charges . The nonprofit San Francisco Parks Alliance directed $66,000 to entities whose figureheads were arrested by the FBI in connection with disgraced former Public Works director Mohammed Nuru's corruption scandal, a new report has found. What are the names of their anonymous donors? Since the FBI arrested and charged Nuru for allegedly attempting to bribe an airport commissioner in January 2020, the investigation has also indicted the former director of the San Francisco Public Utilities Commission, two heads of trash company Recology, a former senior building inspector and a city building commissioner. "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. These funds were largely spent on staff appreciation and events that benefited City employees.. 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 Tuesday called for an investigation into the San Francisco Parks Alliance -- the nonprofit group that oversees the Ferris wheel's contract. The San Francisco city attorney's office issued subpoenas for eight companies and nonprofit organizations Wednesday as part of the ongoing government corruption scandal launched in the wake. Mallory Moench is a San Francisco Chronicle staff writer. Nuru was arrested by the FBI in January and accused of attempting to bribe an airport official. 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. Some of the concerns have already been addressed after the two entities created a memorandum of understanding earlier this year to safeguard against potential corruption, but that agreement needs to be strengthened, the report said. (Beth LaBerge/KQED) It often pays to have friends in high places. She is already co-sponsoring a measure that would prohibit city officials and employees from soliciting payments from people who could benefit from business. in the wake of an ever-unfolding corruption scandal that has ensnared four city department heads since early 2020, a new subpoena power the board crafted for itself in 2020, first issued subpoenas investigating the Parks Alliance in early 2020, threatening to pull $2 million in funding for a Richmond District playground. 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. This arrangement ultimately created the opportunity for unethical steering of purchases to occur.. 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. That is why I am calling for an investigation focusing on this agreement and SF Parks Alliance practices," she said. Every year, millions of dollars flow into the San Francisco Parks Alliance. 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. We have complied with every rule in the book about this and will continue to, and welcome, frankly, any increased efforts at transparency, because that helps all of us, Sarah Madland responded, representing Rec. Do you know when can we expect that information?. "Along with many other nonprofit groups, we continue to work with city departments to meet or exceed these good government controls.". Although the wheel was eventually able to open in the fall at limited capacity, a surge in cases halted operations after just five weeks. It was one of more than 20 firms. At the time, U.S. Attorney David Anderson commented on the allegations by saying, "corruption is pouring into San Francisco from around the world." . Records reviewed by NBC Bay Areas Investigative Unit show that thousands of dollars raised by the San Francisco Parks Alliance scholarship fund, ended up paying for the city's Recreation and Parks staff retreats instead. 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. 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. Or email us at Editor@RichmondSunsetNews.com. 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.". 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. 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. 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." Under the terms of its contract with Ferris wheel operator. 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. The Parks Alliance has not been accused of or found to be involved in any wrongdoing as part of the investigation into the government corruption, said its Board Chair Liz Farrell. The San Francisco Parks Alliance has declined several interview requests from NBC Bay Area but said in a statement it was cooperating with investigators. This report makes it clear that pay-to-play has been happening in our city. 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 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. 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. This corruption is part and parcel of the sell off of Golden Gate Park. 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 lack of transparency in those finances leaves the possibility of a pay-to-play culture to flourish in the shadows, the supervisors said Thursday. The development of the tennis courts went over $400,000 which the City has to pick up. The San Francisco Parks Alliance has threatened to pull just over $2 million in funding for a playground in the city's Richmond District if the district's supervisor, Connie Chan, doesn . The failure of any oversight of this growing waste and misuse of public funds and the privatization of the park is a growing issue. As a result, city leaders have inspected departments relationships with philanthropic organizations. Until the COVID-19 pandemic, the Crab Fest had been a major affair in the city, drawing top city officials, community leaders and contractors, raising more than $100,000 annually for parks scholarships.. We are happy to invest in their learning and morale, which helps them deliver great services every single day, the department said in a statement. Following the release of the report, Mayor London Breed announced an executive order to address the recommendations in the report. Let'sPlaySF! 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.
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