Supervisors press departments over retroactive contracts, emergency declarations after several agency items

Board members pressed city agencies on Feb. 2019 about a series of retroactive contract approvals and emergency declarations, prompting briefings from the San Francisco Public Utilities Commission, the Airport, and the Department of Public Health.

Supervisor Peskin repeatedly pressed agencies for clearer timelines and accountability when departments ask the board to ratify actions after the fact. He asked why some contracts and emergency declarations were being brought to the board retroactively rather than for prior approval.

SFPUC: Items 17 and 18 were two emergency‑declaration resolutions from the San Francisco Public Utilities Commission. Item 17 authorized emergency repairs to the Southeast Treatment Plant final effluent force main, with an estimated cost not to exceed approximately $4.9 million; item 18 authorized repairs to ventilation ducts at the Oceanside treatment plant for an estimated cost not to exceed $3.0 million. John Scarpulla of the SFPUC explained the infrastructure was aging and that an unplanned crack required an emergency repair before a larger planned upgrade could be completed. He said the agency invoked emergency procurement provisions to prevent a full pipe break that could have caused environmental and public‑access impacts. The board adopted the emergency resolutions unanimously.

Clean Power SF / Renewable energy contract (Item 19): The board also adopted a resolution to retroactively approve a one-year contract with Southern California Edison for renewable energy supplies for Clean Power SF, covering the term 01/01/2019 through 12/01/2019 in an amount not to exceed $24 million. Scarpulla told supervisors that the commission had approved moving forward in December and that Edison required an early January commitment to guarantee supply for the citywide enrollment planned in April; he said SFPUC would not seek further retroactive approvals and intended to provide early readings in future cases. The board approved the resolution unanimously.

Airport lease retroactivity (Item 23): Supervisor Peskin also raised retroactivity concerns for a retroactive lease modification at San Francisco International Airport (space occupied by the FBI). Kathy Weidner of SFO said the Airport Commission approved the lease in November but a required signature from the U.S. General Services Administration was delayed; that delay, plus the clerk's office winter schedule, resulted in the board receiving the item after the intended effective date. The board adopted the retroactive modification unanimously after the Airport testified.

Department of Public Health (Item 16): Item 16 sought retroactive authorization for a multi‑year amendment to an intergovernmental agreement with the State Department of Health Care Services for substance‑use disorder services (approximately $145,000,000 for a retroactive term listed in the packet). Supervisor Peskin asked DPH for "a story that has a reasonable beginning, middle, and end" explaining the retroactivity. Laurel Snead, an analyst in DPH substance‑use disorders, said the amendment added funds to an already‑executed multi‑year contract that began in 2017; DPH received the contract from the state on Oct. 22 and had started the legislative process at that time. Cavus Khanabisuri, director of Behavioral Health Services, explained that this is a routine state contracting timeline and the department does not always control when the state finalizes paperwork. Peskin asked for the item to be continued so the board could get clearer answers about why the amendment required retroactive approval; department staff said a one‑week continuance would cause no harm. The board continued item 16 to the next meeting for further briefing.

What changed: The board approved the SFPUC emergency repairs and the renewable‑energy contract after department explanations that immediate action was needed to avoid infrastructure failure or to secure time‑sensitive power supply. The Airport explained a signature delay by the federal General Services Administration caused retroactivity in the FBI lease modification. The Department of Public Health's retroactive amendment was continued so the board could receive a fuller explanation of the timeline and process.

Supervisor Peskin said he was not opposed to genuine emergencies or narrow circumstances that require retroactivity, but said he wanted departments to design approvals so the board could perform its charter oversight and avoid routine after‑the‑fact ratifications. Several departments said they would cooperate on earlier briefings and explore options like early readings to prevent future retroactive votes.

The record shows unanimous adoption for the SFPUC emergency resolutions and the renewable‑energy purchase; DPH's request for retroactive approval was continued for a subsequent meeting.