Supervisors call for hearings on Baker Places, nonprofit oversight after reported financial and management problems

Two supervisors on Oct. 27 asked the Board of Supervisors to hold hearings and pursue legislative changes after recent problems surfaced at Baker Places, a nonprofit that provides substance-use treatment and supportive programs.

Supervisor Ahsha Safaie submitted a hearing request focused on the city's supplemental appropriation earlier in the year that provided emergency funds to Baker Places and on potential conflict-of-interest issues in the Department of Public Health9s oversight of nonprofit contractors. Supervisor Shamann Walton presided; Supervisor Dean Preston (chair of GAO) and Budget Chair Hillary Ronan were referenced during discussion of prior appropriations.

Why the board is acting

Supervisor Safaie said the board once advanced funds to prevent Baker Places from shutting down but that subsequent developments suggested the bailout had not secured the organization's solvency. Safaie said she has requested an investigation into whether a Department of Public Health staff member who held secondary employment (and was reportedly on call for both roles) had obtained the required approvals from the Department of Human Resources. "The taxpayers deserve that," Safaie said, and she asked the board to request accountability from Dr. Grant Colfax, director of the Department of Public Health.

Supervisor Shamann Walton and other members accepted Safaie9s submission for a committee hearing; no formal vote on the hearing was recorded in the meeting transcript, which records the submission of the hearing request.

Controller audit, legislative follow-up

Supervisor Connie Chan Stephanie (listed in the transcript as Supervisor Stephanie) submitted a drafting request to the city attorney's office responding to the controller's citywide nonprofit performance audit released Aug. 30. Stephanie said the audit found inconsistent performance measurement and monitoring across departments that contract with community-based organizations (CBOs) and that the board should pursue legislation to standardize performance monitoring, increase transparency of audits and reduce duplicative requirements that could burden nonprofits.

Stephanie said the city spent hundreds of millions through agreements with CBOs and that clarified performance standards would help determine whether services are achieving intended outcomes.

Public comment: Baker Places clients and advocates

Members of the public who identified themselves as current or former Baker Places clients described the program as life-changing and urged the board to preserve services. Carrington, describing themselves as a resident of Baker Places' assisted independent living program, said the program9s structured environment enabled residents to pursue education and stable employment after periods of homelessness and acute treatment. "These are some of the most vulnerable people," Carrington said.

Enrico, who said he had been a Baker Places client for four years, described sustained sobriety and stability achieved through the program. Another caller, who said Baker Street House (a Baker Places program) saved her life while she recovered from suicidal ideation, urged the board to find a solution that would not disrupt clients' care.

What supervisors want next

Supervisor Safaie asked for a focused hearing on the Baker Places appropriation, an accounting of the city's financial oversight of nonprofit contractors, and review of how often DPH staff hold secondary employment and whether appropriate approvals were obtained. Supervisor Stephanie signaled legislation to strengthen contract monitoring and transparency for CBOs and said she would seek a hearing on the controller's audit. No committee dates were announced in the Oct. 27 meeting transcript.

Context and limits

Speakers noted the board previously approved an emergency appropriation for Baker Places earlier in the year; the transcript does not include the appropriation language or the exact amount. The hearing requests recorded on Oct. 27 are procedural: they request committee review and do not by themselves change contracts, budget appropriations or personnel actions.

(Reporting based on public remarks and submissions during the San Francisco Board of Supervisors meeting transcript, Oct. 27, 2022.)