The Department of Building Inspection issued 218 building permits to seven of those entities. 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. "In this case, are we now setting ourselves up for a two-tier parks system for those who can pay to play, literally, and for those who cannot afford access to our public space?". Another issue was anonymous donations, with up to $3 million from unnamed sources going to the Parks Alliance during the same time period the organization gave $1.9 million to the park department. Drew Becher, CEO of the San Francisco Parks Alliance, expressed shock at the city's findings. (Beth LaBerge/KQED) It often pays to have friends in high places. 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. 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 . Joe Kukura is an SFist staff asst. Corrupt SF Official Used Nonprofits to Funnel 'Pay to Play' Cash 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. 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. Mallory Moench is a San Francisco Chronicle staff writer. . 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. and Park since 2003, starting with the Conservatory of Flowers. but even at the lower levels it can lead to more of a culture of corruption where contractors have cozy . "This is a city of riches," she said during Thursday's committee hearing. 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. All rights reserved, Union Lawsuit Alleges Retaliation for Whistleblowing in SF City Hall Corruption Probe, Former San Francisco Public Works Head Pleads Guilty to Fraud Charge. 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.. 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. City Attorney subpoenas business, nonprofits in public corruption 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. But this audit seems like the latest chapter of her ongoing feud with the Parks Alliance, wherein she alleges potential corruption, and the Alliance threatens to pull money out of projects in her district. 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 . That corrupt slush fund really just a minor piece of the wider public corruption scandal put a dark cloud over the Golden Gate Parks SkyStar Ferris wheel, because the Parks Alliance gets and manages the proceeds from all of those $18 ferris wheel rides. 20002023 San Francisco Bay Area Independent Media Center. But that leaves some of their methodologies in the dark, the Budget and Legislative Analyst's report found. The supervisor and the organization have clashed before. and Park.. It also isn't the first time the Parks Alliance and Supervisor Chan have clashed in public. 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 isn't the first time the Parks Alliance has found itself under the microscope. Abrupt closure of S.F. Mallory Moench is a San Francisco City Hall reporter. Looking to get in touch with our The San Francisco Parks Alliance was subpoenaed by the City Attorney's Office last year as part of the city's corruption probe. 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. A bicyclist passes the Conservatory of Flowers in Golden Gate Park. They collectively donated $966,000 to the Parks Alliance into a Public Works-specific account funds Nuru was able to freely direct, and sometimes himself was paid from according to the report. SF Rec and Parks is a city department that manages and maintains our parks. 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. 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. "We have issue with the way the vendor was selected. That is correct, Sobrepena said. It's a large amount of money coming to the city, she 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. 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. 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. Supervisors Connie Chan and Aaron Peskin Call for Investigation on SF Parks Alliance . "These so-called 'friends' groups don't have an entirely friendly history. Before that, she freelanced with a focus on the Yemeni diaspora while studying at the City University of New York Graduate School of Journalism. Im looking forward to the follow up. Staff - San Francisco Parks Alliance I just want you to know that I have asked for that information directly to the Rec. The report's authors came away with more questions than answers. Supervisor Chan has a point about potential conflicts of interest. This arrangement ultimately created the opportunity for unethical steering of purchases to occur.. "We receive so much donations and so much money to renovate and improve our parks, and we can see those results. Sign up for our daily newsletter. SF supervisor subpoenas parks nonprofit in wake of report that calls for stronger controls, S.F. 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. Much of that spending from the subaccounts were related to staff appreciation, including department initiatives with volunteers and merchandise, generally at Public Works direction. We have put forward actionable recommendations to correct loopholes that seemingly normalize unethical practices that undermine faith in public actions.. 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. This material may not be published, broadcast, rewritten, or redistributed. 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 probe stems from federal criminal charges . To learn more about how we use your information, please read our privacy policy. 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. 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. Opinions are those of the contributors and are not Im relieved to know Supervisor Chan and others are requiring transparency from our City agencies, especially SF Rec and Park. So, knowing that it actually does have a close relationship with the Rec. 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.". During this same period, these entities donated $966,000 to the Public Works subaccounts at the Parks Alliance, she elaborated. As a result, city leaders have inspected departments relationships with philanthropic organizations. The city's corruption scandal investigation is ongoing. The recent report delved into inadequate controls in multiple areas, including an agreement to run the Conservatory of Flowers that expired in 2012 and hasnt been renewed. needs these 5 sites to thrive so the city can recover. After Nuru Scandal, SF Anti-Corruption Proposal Seeks to Prevent Bribes 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. 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 audit says those contracts need to adhere to basic city contract standards to prevent conflicts of interest. The net encircling former Public Works director Mohammed Nuru has now ensnared more entities in The City's ever-growing corruption scandal. To learn more about how we use your information, please read our privacy policy. During the Thursday hearing, Farrell from the Parks Alliance said they have already apologized for that spat. 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. This report has validated our suspicion all along that Parks Alliance has a problematic relationship with our city departments, she said. 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.". If you'd like to help with maintaining or developing the website, contact us. 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. 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. 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. 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. 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. It's unclear what, if any, cooperation has been ongoing between Naomi Kelly and the feds but the Chronicle reveals that it was Kelly herself who called and alerted the FBI when Nuru contacted her in January to tip her off about the federal probe. Flower Moon, a lunar eclipse and a meteor shower unfold this week. Explosion of joy in Warriors' world comes with newfound respect for Kings, Political chaos has erupted in this Peninsula city over one issue: Housing, Beneath Michelin-starred restaurants success, landlord dispute is boiling. 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 audit tracked the money going in and out of the Alliance over a five year period. Related: Parks Alliance Pushes Back On Accusations, Tells Supervisor Chan to Kiss Richmond Playground Goodbye [SFist]. This report makes it clear that pay-to-play has been happening in our city. The SkyStar Observation Wheel was installed last year as part of the park's 150th anniversary just as the COVID-19 pandemic began. 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 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.. Every year, millions of dollars flow into the San Francisco Parks Alliance. SF supervisor subpoenas parks nonprofit in wake of report that calls Web of corruption: Explore the cronyism, lies, and - San Francisco, CA S.F. Parks Alliance threatens to pull funding for Richmond District Required fields are marked *. 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. Nuru was arrested by the FBI in January and accused of attempting to bribe an airport official. 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. Photo: Keith Crook. "Certainly, some of these groups are operating above board. The failure of any oversight of this growing waste and misuse of public funds and the privatization of the park is a growing issue. 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. "Along with many other nonprofit groups, we continue to work with city departments to meet or exceed these good government controls.". 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. 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. However, all of this occurred outside of the Citys established financial and procurement systems. Sign up for NBC Bay Areas Housing Deconstructed newsletter. The BLAs Director of Policy Analysis Fred Brousseau told the Committee that the Parks Alliance has had a relationship with Rec. necessarily endorsed by the SF Bay Area IMC. No Parks Alliance officials have been implicated in the probe. 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. 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. 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. 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. This program looks at the "non-profits" that are being used to facilitate the transfer of public lands at the park to privatizers. Thats great, said Chan. The Parks Alliance is a major philanthropic backer for the parks and other city departments. In an aerial view, the SkyStar Wheel in the Music Concourse carries riders at Golden Gate Park on June 14, 2021, in San Francisco. Those scholarships pay the fees or other costs for low-income youth and seniors to enjoy summer programs and other activities at city parks. 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We are a trusted partner to many community groups and city departments and welcome any and all actions that bring more transparency and oversight to ensure the publics trust.. and Park, but we only assessed Public Works subaccounts, Sobrepena responded. 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. 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. Parks Alliance Pushes Back On Accusations, Tells Supervisor - SFist "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. Ongoing FBI Corruption Probe Hits Three More SF City Departments With Subpoenas The Planning Department, Department of Public Health, and the City Administrator's Office have all been hit with. So I defer to the city attorney who oversees those contracts, Farrell said. But the board says more transparency is necessary to ensure another type of green money isn't changing hands improperly. In San Francisco, that goes double for nonprofits that call themselves "friends.". SF Restaurateur Nick Bovis Admits Corruption Charges 1 in its park investments in the nation, dollars per capita," Chan said. No trains were going in or out of BART's SFO Station for about an hour Wednesday morning due to an unspecified "police matter" that has yet to be made public. Our track record is clear. 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. Get the latest posts delivered right to your inbox. Here are five key structures that need to bounce back to help the city recover. San Francisco Building Inspection Chief Placed On Leave In Widening "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. In that span, the non-profit took in $44 million, including an estimated $3.5 million in anonymous donations, the audit concludes. 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. Your email address will not be published. The Alliance has not been accused of wrongdoing in the city corruption scandal and did not get paid for its account management. The Parks Alliance serves a unique role in this, raising money for some projects and selecting contractors, a role often served by government agencies. How long has it been since May started off this cold in Bay Area?